Legislature(2009 - 2010)BELTZ 211
03/24/2009 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB23 | |
| SB129 | |
| HJR19 | |
| SB126 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 126 | TELECONFERENCED | |
| + | SB 129 | TELECONFERENCED | |
| HJR 19 | |||
| = | SB 23 | ||
SB 126-REEMPLOYMENT OF RETIREES; EXEMPT SERVICE
11:06:09 AM
CHAIR MENARD announced the consideration of SB 126.
GINGER BLAISDELL, Director, Administrative Services, Department
of Revenue (DOR), said SB 126 has three parts: two positions in
DOR; 23 positions in the Department of Natural Resources (DNR);
and an extension of a sunset for the retiree/rehire program. The
positions for DOR include the state comptroller and the chief
economist. The economist is in a classified position in the
supervisory bargaining unit, and after multiple recruitments the
position has been unfilled for a year and a half. The bill will
exempt the position so the state can increase the pay. The state
comptroller has turned over four times in four years because the
employee has left for a higher paying job. The bill will move it
into exempt status instead of partially exempt "so that we could
use a different pay scale." The positions in DNR are
professional level, which are out-marketed. Market-based pay in
the private sector is significantly higher than what the state
can offer. "So we're looking at taking them from temporary-
project service into full-time exempt status for a long-term
project." The retiree/rehire program has had two different
terms. This one will sunset on June 30, so on July 1 the few
employees that are retirees would have to make a choice of
retaining their positions and stop receiving their retirement
benefits, or they would have to retire, making those positions
vacant.
11:09:24 AM
CHAIR MENARD said the first retiree/rehire program started in
2001 and was continued in 2005. What was the original intent?
MS. BLAISDELL said it was to fill positions that were difficult
to fill.
CHAIR MENARD asked if retirees, prior to 2001, were prohibited
from returning to state work in any capacity.
MS. BLAISDELL said once state workers retire, they receive
retirement benefits. If they return to work with the same plan,
they forfeit retirement pay and receive regular position pay.
11:10:24 AM
CHAIR MENARD surmised that there would be 23 employees affected.
MS. BLAISDELL said those are at DNR and are not rehired
retirees. The 23 employees in that program are listed in a
report that the committee has. There are 77 TRS active retirees
and 47 PERS active retires employed by state and local
governments.
CHAIR MENARD asked how this affects young employees who want to
climb up the ladder.
MS. BLAISDELL said there have been questions on upward mobility,
but the retiree/rehire program is only allowed if there are
fewer than five candidates for any given position. It is not a
shoe-in for the retiree to get that job. There are only 36
positions using the program, and the state has 15,000 to 17,000
employees.
CHAIR MENARD said she has always had a problem with retirees
taking the slots of new hires who have potential. It shuts out
opportunities.
SENATOR PASKVAN asked if there are 124 in TRS and PERS, and the
bill is to expand it with 23 positions in DNR.
MS. BLAISDELL said no. There are two separate actions in SB 126.
The DNR and DOR positions are just being changed to exempt
service to use a different pay scale. The retiree/rehire program
is separate.
11:14:14 AM
SENATOR PASKVAN asked the average age of retirement for the 124
people.
MS. BLAISDELL said she doesn't know.
CHAIR MENARD asked about making it two separate bills.
MS. BLAISDELL said the bill has two topics, but both are
personnel related. She is not sure why the governor chose to put
them in one bill.
11:14:58 AM
SENATOR FRENCH asked if this is "must-have legislation."
MS. BLAISDELL said if the portion that allows the positions to
become exempt were deleted, the DNR positions would remain in
temporary status, and the DOR positions would likely remain
vacant or become vacant. Those positions are critical to the
needs of the state. The retiree/rehire program will sunset on
July 1 if the bill doesn't pass. So, 124 people will need to
make the choice of staying in their positions without drawing
retirement benefits or leaving.
SENATOR FRENCH asked if those 124 would stop getting retirement
if they stayed in their jobs.
MS. BLAISDELL said that is correct; they would just be receiving
their regular pay.
11:16:22 AM
SENATOR FRENCH asked if it is a must-have bill for the governor.
MS. BLAISDELL said she doesn't know.
SENATOR FRENCH said he has many questions and would like to
address it later.
CHAIR MENARD agreed. In the interest of time, the committee will
take it up on Thursday.
SB 126 was held over.
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