05/05/2003 09:02 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 177                                                                                                        
     "An  Act  relating  to  cost-of-living   benefits  for  retired                                                            
     members  in the  public employees'  retirement  system and  the                                                            
     teachers'  retirement system who are called to  active military                                                            
     duty; and providing for an effective date."                                                                                
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-chair   Wilken   explained  that   this   legislation   addresses                                                            
situations  wherein a retired public  employee, residing  in Alaska,                                                            
might be  called to active  military duty  outside of the State.  He                                                            
stated  that  this service  could  thereby  jeopardize  the  retired                                                            
employee's  receipt of the  Alaska cost-of-living  allowance  (COLA)                                                            
benefits.                                                                                                                       
                                                                                                                                
Senator B.  Stevens, the  bill's sponsor,  explained that this  bill                                                            
would  address  "the unexpected  call  to  active duty"  of  retired                                                            
military and military  reserve units. He shared the  experience of a                                                            
retired  Vietnam  veteran/retired  teacher  who, as  a  member of  a                                                            
reserve  unit, has been  called to  active military  duty and  would                                                            
serve in this  capacity outside of  the State. As a result  of being                                                            
on active duty  outside of the State,  Senator B. Stevens  explained                                                            
that this individual  would lose his COLA adjustment  as it would be                                                            
cancelled because current  regulations specify that an individual in                                                            
a retirement  system could not be  absent from the State  for longer                                                            
than 90 days without  a medical or family-illness  waiver. He stated                                                            
that this  simple change  would not  incur a fiscal  note and  would                                                            
impact approximately ten people.                                                                                                
                                                                                                                                
Senator B.  Stevens informed the Committee  that an amendment  might                                                            
be forthcoming  as the result of the  incorporation of separate  but                                                            
similar  legislation,  being  proposed  by Senator  Kim  Elton  that                                                            
addresses non-state employees being called to active duty.                                                                      
                                                                                                                                
Co-Chair Wilken  ordered the bill HELD in Committee  to provide time                                                            
to coordinate the two pieces of legislation.