04/22/2003 04:00 PM Senate STA

         SB 177-PERS/TRS COLA FOR ACTIVE DUTY MILITARY                                                                      
                                                                                                                                
DEBORAH GRUNDMAN, Staff to Senator Ben Stevens, paraphrased from                                                                
the sponsor statement:                                                                                                          
                                                                                                                                
     An  Alaska  cost  of living  allowance  is  payable  to                                                                    
     benefit  recipients   of  the  public   employees'  and                                                                    
     teachers'  retirement system  who  remain domiciled  in                                                                    
     Alaska after  retirement. The  allowance is  10 percent                                                                    
     of their  base pay.  A person receiving  a COLA  is not                                                                    
     entitled to the allowance if  absent from the state for                                                                    
     a time period  in excess of 90  continuous days, except                                                                    
     that  a person  may be  absent from  the state  for not                                                                    
     more  than six  months without  a loss  of COLA  if the                                                                    
     absence is the result of  illness and required by order                                                                    
     of a licensed physician.                                                                                                   
                                                                                                                                
     Upon return to  the state and upon  notification to the                                                                    
     Department  of  Administration   the  person  is  again                                                                    
     entitled  to   receive  the  monthly  cost   of  living                                                                    
     allowance,  commencing with  the first  monthly benefit                                                                    
     payment.                                                                                                                   
                                                                                                                                
     Our retired  public employees currently  receiving COLA                                                                    
     in the State  and who are called to active  duty in the                                                                    
     military  would not  be eligible  for the  COLA payment                                                                    
     while serving  our country, under existing  statute. SB
 rectifies this situation  and allows retired public                                                                    
     employees eligible  to continue  to receive  their COLA                                                                    
     while on active military duty.                                                                                             
                                                                                                                                
SENATOR JOHN COWDERY asked how many people would be affected.                                                                   
                                                                                                                                
MS. GRUNDMAN replied there wouldn't be more than ten.                                                                           
                                                                                                                                
GUY  BELL,  Director of  Retirement  and  Benefits, advised  they                                                               
submitted a  zero fiscal note. The  pool is limited to  those who                                                               
have  retired from  PERS  or  TRS and  who  are  in the  military                                                               
reserve.  Currently  ten  people  could be  affected  and  that's                                                               
probably an accurate  number going forward. It's  an equity issue                                                               
and the department supports the legislation.                                                                                    
                                                                                                                                
SENATOR JOHN COWDERY made a motion  to move SB 177 from committee                                                               
with individual  recommendations and attached fiscal  note. There                                                               
being no objection, it was so ordered.