03/23/2022 03:15 PM House LABOR & COMMERCE

        SJR 12-SOCIAL SECURITY BENEFIT REDUCTION REPEAL                                                                     
                                                                                                                                
3:18:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that the  first order of business would                                                               
be  SENATE JOINT  RESOLUTION  NO. 12,  Urging  the United  States                                                               
Congress  to  repeal  the   Windfall  Elimination  Provision  and                                                               
Government Pension Offset of the Social Security Act.                                                                           
                                                                                                                                
3:19:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS opened public testimony on SJR 12.                                                                              
                                                                                                                                
3:19:39 PM                                                                                                                    
                                                                                                                                
DAVID GUTTENBERG  testified in support  of SJR 12.   He recounted                                                               
that he worked  as a laborer for over 20  years, then worked four                                                               
years as a staff person in  the legislature, followed by 16 years                                                               
as a  legislator.   When he  became eligible  to retire  from the                                                               
state he  learned that the  Windfall Elimination  Provision (WEP)                                                               
would take  about $400  out of  his retirement.   He said  he has                                                               
been amazed at  it ever since and how detrimental  it has been to                                                               
those who  have split their  time between the private  sector and                                                               
the public  sector.  He  did not anticipate  this big hit  and an                                                               
estimated $70 million a year  is not received by Alaskans because                                                               
of this  provision.   He paid  Social Security  for more  than 20                                                               
years  while working  as  a  laborer, but  because  he split  his                                                               
career between  the private and  public sectors he  is penalized,                                                               
as are  many Alaskans.   People just want  to get back  the money                                                               
they put  into Social  Security; nobody is  asking for  more than                                                               
that.   He said  there is  support [for  repeal] in  Congress and                                                               
urged the passage of SJR 12.                                                                                                    
                                                                                                                                
3:22:06 PM                                                                                                                    
                                                                                                                                
TAMMY SMITH  testified in support  of SJR  12.  She  related that                                                               
she is a  teacher in Fairbanks with the benefit  of being Tier I,                                                               
and she  will be retiring after  40 years of teaching  in Alaska.                                                               
She said she began her career  as a teacher in Minnesota and then                                                               
taught  at a  Catholic  school in  Fairbanks,  both positions  in                                                               
which she paid into Social Security.   In 1986 she moved into the                                                               
public school  system and  eventually learned  about WEP  and the                                                               
Government Pension Offset (GPO)  and how they would significantly                                                               
impact  her retirement,  which  is  part of  the  reason why  she                                                               
continues to  teach.   Her husband worked  with the  plumbers and                                                               
pipefitters for  over 30 years.   At  his death seven  years ago,                                                               
she realized the  significant impact that the  GPO/WEP would have                                                               
on  her, as  there is  a double  impact for  certain individuals.                                                               
The work that her husband did has been taken away from her.                                                                     
                                                                                                                                
MS.  SMITH  stated  that  as  a  board  member  of  the  National                                                               
Education  Association-Alaska  (NEA-Alaska)  she has  taken  this                                                               
issue to  Alaska US  Senator Dan Sullivan  and Alaska  US Senator                                                               
Lisa Murkowski.  While they  understand the issue, she said, they                                                               
need  the legislature's  encouragement.   She related  that in  a                                                               
letter  Senator Sullivan  wrote to  the Internal  Revenue Service                                                               
(IRS)  and  the Social  Security  Administration  (SSA) he  talks                                                               
about how  70 percent  of the  Alaskan teachers  that are  in the                                                               
Tier III  system may run out  of money after a  certain amount of                                                               
time.   Senator Sullivan's work  targets what is going  to happen                                                               
to the  Tier III individuals  who do  not have a  defined benefit                                                               
and the  significant impact that  this will have on  these Alaska                                                               
teachers without Social Security.                                                                                               
                                                                                                                                
MS. SMITH said  she is only asking for consideration  of what she                                                               
has  donated to  Social Security.    She pointed  out that  young                                                               
Alaskans are also being impacted and  don't feel they can stay in                                                               
Alaska.    Three years  ago,  her  daughter, a  public  employee,                                                               
decided to  leave Alaska  because as  a Tier III  or Tier  IV she                                                               
could  do better  elsewhere.   She  urged the  committee to  help                                                               
senators Sullivan and Murkowski going  forward.  Even if it isn't                                                               
a  total  fix  or  isn't  retroactive,  she  said,  it  would  be                                                               
something to support Alaskans working in the state.                                                                             
                                                                                                                                
3:26:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON thanked  Ms.  Smith for  her  40 years  of                                                               
teaching.                                                                                                                       
                                                                                                                                
3:27:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  closed public testimony after  ascertaining that                                                               
no one else wished to testify.                                                                                                  
                                                                                                                                
3:27:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ moved  to report SJR 12 out  of committee with                                                               
individual  recommendations and  the  accompanying [zero]  fiscal                                                               
notes.   There being no  objection, SJR 12  was moved out  of the                                                               
House Labor and Commerce Standing Committee.