02/13/1993 08:00 AM House STA

  HB 36:  RETIREMENT INCENTIVE PROGRAM                                         
                                                                               
  Number 343                                                                   
                                                                               
  GENE SMART testified via teleconference from Soldotna in                     
  support of HB 36.                                                            
  TAPE 93-18 SIDE B                                                            
  Number 010                                                                   
                                                                               
  MR. SMART discussed the money saved with the retirement                      
  incentive program and reiterated his support for HB 36.                      
                                                                               
  Number 065                                                                   
                                                                               
  JIM STERLING testified via teleconference from Anchorage in                  
  opposition to HB 36.  He alleged people who were retired                     
  from the state returned and worked on contract for more                      
  money than they were originally paid before retiring.  It is                 
  costing the state more money not less, he said, and                          
  discussed the health benefits.  He also said those vested                    
  moved out of state.                                                          
                                                                               
  Number 108                                                                   
                                                                               
  COMMISSIONER USERA reassured all seniors currently receiving                 
  the longevity bonus would continue to receive the bonus for                  
  the rest of their lives.  She discussed the history of the                   
  governor's annuity program.  The program went on the ballot                  
  in 1986 and did not receive support.  The program was on the                 
  legislature's desk for seven years and was not enacted.  It                  
  was not a financially viable program and was very complex.                   
  The liability of the longevity program had continue to grow,                 
  she added.