Legislature(1993 - 1994)
02/13/1993 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE
February 13, 1993
8:00 a.m.
MEMBERS PRESENT
Representative Al Vezey, Chairman
Representative Pete Kott, Vice Chairman
Representative Harley Olberg
Representative Gary Davis
Representative Jerry Sanders (via teleconference)
MEMBERS ABSENT
Representative Bettye Davis
Representative Fran Ulmer
COMMITTEE CALENDAR
HB 81: "An Act relating to the longevity bonus program."
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
HB 36: "An Act relating to retirement incentive programs
for the public employees' retirement system, the
teachers' retirement system, and certain persons
under the judicial retirement system; and
providing for an effective date."
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
HB 44: "An Act making a special appropriation to the
principal of the permanent fund; and providing for
an effective date."
NOT HEARD
HB 49: "An Act relating to facsimile absentee ballot
application and facsimile absentee voting."
NOT HEARD
HB 47: "An Act relating to the delivery of the primary
ballots to persons making application for them
when, by operation of political party rule, two or
more primary ballots must be provided to the
public."
NOT HEARD
WITNESS REGISTER
Nancy Usera, Commissioner
Department of Administration
P.O. Box 110200
Juneau, AK 99811-0200
465-2200
Position Statement: Supported HB 81
Paul Miller
P.O. Box 384
Delta Junction, AK 99737
895-4493
Position Statement: Opposed HB 81
Gene Smart
P.O. Box 6923
Nikiski, AK 99635
776-5678
Position Statement: Supported HB 36
Alice Oates
P.O. Box 488
Tok, AK 99780
883-4929
Position Statement: Recommended HB 81 be amended
Mellie Terwilleger
P.O. Box 206
Tok, AK 99780
883-2531
Position Statement: Supported a 100 day session limit
Marilyn Sterling
4400 Shoshoni Avenue
Anchorage, AK 99516
345-1214
Position Statement: Supported continuation of the longevity
bonus
John J. Shaffer
American Association of Retired People
303 Kimsham St.
Sitka, AK 99835
747-8425
Position Statement: Supported reform of the longevity
program
Rose Palmquist
P.O. Box 870294
Wasilla, AK 99687
376-2274
Position Statement: Opposed HB 81
Hugh Johnson
HC 31 Box 5116
Wasilla, AK 99654
376-2603
Position Statement: Supported longevity program
Jim Sterling
4400 Shoshoni Avenue
Anchorage, AK 99516
345-1214
Position Statement: Opposed HB 36
Rose Feltz
1460 Grubstake
Wasilla, AK 99654
376-5967
Position Statement: Supported SB 6
Gloria Maschmeyer
2234 Knoll Circle
Anchorage, AK 99501
277-0787
Position Statement: Supported HB 81
Elmer Lindstrom, Special Assistant
Department of Health and Social Services
P.O. Box 110601
Juneau, AK 99811-0601
465-3030
Position Statement: Supported HB 81
PREVIOUS ACTION
BILL: HB 81
SHORT TITLE: PHASE OUT LONGEVITY BONUS
BILL VERSION:
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
TITLE: "An Act relating to the longevity bonus program."
JRN-DATE JRN-PG ACTION
01/22/93 130 (H) READ THE FIRST TIME/REFERRAL(S)
01/22/93 130 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/22/93 130 (H) -2 FNS (ADM) 1/22/93
01/22/93 130 (H) GOVERNOR'S TRANSMITTAL LETTER
02/02/93 (H) STA AT 08:00 AM CAPITOL 102
02/02/93 (H) MINUTE(STA)
02/06/93 (H) STA AT 08:00 AM CAPITOL 102
02/13/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 36
SHORT TITLE: RETIREMENT INCENTIVE PROGRAM
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MACKIE,Hudson,Ulmer,B.Davis,
Brice
TITLE: "An Act relating to retirement incentive programs for
the public employees' retirement system, the teachers'
retirement system, and certain persons under the judicial
retirement system; and providing for an effective date."
JRN-DATE JRN-PG ACTION
01/08/93 33 (H) PREFILE RELEASED
01/11/93 33 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 33 (H) STATE AFFAIRS, LABOR &
COMMERCE, FINANCE
01/28/93 (H) STA AT 08:00 AM CAPITOL 102
01/28/93 (H) MINUTE(STA)
01/28/93 (H) MINUTE(STA)
01/29/93 182 (H) COSPONSOR(S): HUDSON- FIRST
COSPONSOR
01/29/93 182 (H) COSPONSOR(S): B.DAVIS, BRICE
01/30/93 (H) STA AT 08:00 AM CAPITOL 102
01/30/93 (H) MINUTE(STA)
01/30/93 (H) MINUTE(STA)
02/02/93 (H) MINUTE(STA)
02/04/93 (H) STA AT 08:00 AM CAPITOL 102
02/06/93 (H) STA AT 08:00 AM CAPITOL 102
02/09/93 (H) STA AT 08:00 AM CAPITOL 102
02/09/93 (H) MINUTE(STA)
02/11/93 (H) STA AT 08:00 AM CAPITOL 102
02/13/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 44
SHORT TITLE: APPROP: TO PERMANENT FUND PRINCIPAL
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN,Olberg
TITLE: "An Act making a special appropriation to the
principal of the permanent fund; and providing for an
effective date."
JRN-DATE JRN-PG ACTION
01/11/93 35 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 35 (H) STATE AFFAIRS, FINANCE
01/18/93 102 (H) COSPONSOR(S): OLBERG
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
01/28/93 (H) STA AT 08:00 AM CAPITOL 102
01/28/93 (H) MINUTE(STA)
01/30/93 (H) STA AT 08:00 AM CAPITOL 102
01/30/93 (H) MINUTE(STA)
02/06/93 (H) STA AT 08:00 AM CAPITOL 102
02/13/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 49
SHORT TITLE: ABSENTEE BALLOTING BY FAX
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN,Brice
TITLE: "An Act relating to facsimile absentee ballot
application and facsimile absentee voting."
JRN-DATE JRN-PG ACTION
01/13/93 52 (H) READ THE FIRST TIME/REFERRAL(S)
01/13/93 53 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/20/93 117 (H) COSPONSOR(S): BRICE
01/28/93 (H) STA AT 08:00 AM CAPITOL 102
01/28/93 (H) MINUTE(STA)
01/30/93 (H) STA AT 08:00 AM CAPITOL 102
01/30/93 (H) MINUTE(STA)
02/09/93 (H) STA AT 08:00 AM CAPITOL 102
02/11/93 (H) STA AT 08:00 AM CAPITOL 102
02/13/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 47
SHORT TITLE: ABSENTEE BALLOTS - PRIMARY ELECTIONS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN
TITLE: "An Act relating to the delivery of the primary
ballots to persons making application for them when, by
operation of political party rule, two or more primary
ballots must be provided to the public."
JRN-DATE JRN-PG ACTION
01/12/93 43 (H) READ THE FIRST TIME/REFERRAL(S)
01/12/93 43 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/28/93 (H) STA AT 08:00 AM CAPITOL 102
01/30/93 (H) STA AT 08:00 AM CAPITOL 102
01/30/93 (H) MINUTE(STA)
02/04/93 (H) STA AT 08:00 AM CAPITOL 102
02/06/93 (H) STA AT 08:00 AM CAPITOL 102
02/09/93 (H) STA AT 08:00 AM CAPITOL 102
02/13/93 (H) STA AT 08:00 AM CAPITOL 102
ACTION NARRATIVE
TAPE 93-18, SIDE A
Number 000
The eleventh meeting of the House State Affairs Committee
was called to order at 8:03 a.m. on Saturday, February 13,
1993, by Chairman Vezey. He noted a quorum was present.
HB 81: PHASE OUT LONGEVITY BONUS
Number 000
CHAIRMAN AL VEZEY stated the committee was on teleconference
with Fairbanks, Delta Junction, Anchorage, Glennallen,
Kotzebue, Mat-Su, Kenai/Soldotna, Ketchikan, Sitka, Tok, and
Valdez. He then read the title of HB 81 and invited
Commissioner Nancy Usera to testify.
NANCY USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION,
explained and discussed the "Longevity Bonus Program
Alternative Funding Proposals" chart. "It costs one hundred
million for each year we delay," she said.
Number 111
REPRESENTATIVE PETE KOTT asked why the administration
introduced HB 81 instead of supporting SB 6.
Number 120
COMMISSIONER USERA explained the SB 6 annuity phase out.
The participation was unrealistic, she believed.
Number 226
REPRESENTATIVE HARLEY OLBERG thought the annuity was the
same as a savings account.
Number 231
COMMISSIONER USERA agreed and further explained annuity
accounts and actuaries.
Number 255
REPRESENTATIVE OLBERG stated an annuity savings program
could be bought by anyone through an insurance company.
Number 261
COMMISSIONER USERA agreed.
Number 263
CHAIRMAN VEZEY discussed taxes with regard to the longevity
bonus.
Number 267
COMMISSIONER USERA discussed tax implications and liability.
Number 277
CHAIRMAN VEZEY thanked Commissioner Usera and began taking
public testimony.
Number 287
PAUL MILLER testified via teleconference from Delta Junction
in opposition to HB 81.
HB 36: RETIREMENT INCENTIVE PROGRAM
Number 343
GENE SMART testified via teleconference from Soldotna in
support of HB 36.
Number 401
ALICE OATES testified via teleconference from Tok. She
recommended HB 81 be amended. She asked the legislature to
look into medicaid.
Number 427
MELLIE TERWILLEGER testified via teleconference from Tok.
She discussed HB 81 and also mentioned her support of a 100
day session limit.
Number 454
MARILYN STERLING testified via teleconference from
Anchorage. She and her husband made their retirement plans
counting on the longevity bonus for income. They desired to
stay in Alaska and asked for the longevity bonus to
continue.
Number 471
JOHN J. SHAFFER testified via teleconference from Sitka, on
behalf of the American Association of Retired People. He
agreed the longevity bonus needed to be reformed. He
favored the annuity program in SB 6, and explained the value
of the longevity bonus for seniors.
Number 510
MS. STERLING suggested the committee review a report
regarding older Alaskan senior citizens' impact on the
economy of Alaska.
Number 539
ROSE PALMQUIST testified via teleconference from Mat-Su in
opposition to HB 81. She supported SB 6.
Number 604
HUGH JOHNSON testified via teleconference from Mat-Su. He
discussed the contribution of older Alaskans. He favored
the longevity bonus.
Number 640
MS. PALMQUIST reiterated her support for SB 6.
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.
Number 159
ROSE FELTZ, a member of the MAT-SU SENIOR CITIZENS' ADVISORY
BOARD, testified via teleconference from Mat-Su in support
of SB 6. "I was born in Alaska and I am 57 years old now.
When I turn 65 there will be a law suit if I am treated
differently than other senior citizens who receive the
bonus," she said.
Number 191
GLORIA MASCHMEYER testified via teleconference from
Anchorage. She requested clarification of the SB 6 annuity
program versus the phase out plan. She did not understand
why anyone would want to put their Permanent Fund monies
into a state annuity program.
Number 254
COMMISSIONER USERA supported HB 81 and said Senator
Kerttula, the prime sponsor of SB 6, could clarify any
questions on that bill. She believed SB 6 phased out the
longevity program over a 15 year period with a formula based
step down. In order to keep the check at $250, while the
step down amount increased, the Permanent Fund investment
would be at 100 percent involvement among seniors, she
added.
Number 314
REPRESENTATIVE GARY DAVIS stated SB 6 annuity was a
volunteer program.
Number 324
MS. MASCHMEYER spoke in support of HB 81.
Number 348
COMMISSIONER USERA said the SB 6 annuity program was
extremely complex and impractical.
Number 359
MS. MASCHMEYER was interested in the longevity bonus and
would retire in Alaska. "I would not personally deposit my
Permanent Fund in a state annuity account because it is not
refundable and would not be inherited by my family upon my
death," she said.
Number 378
CHAIRMAN VEZEY said the option to put permanent funds into a
savings plan of choice may be best.
Number 383
REPRESENTATIVE OLBERG agreed that when seniors turned 65 and
were not eligible for a longevity check there would be
lawsuits.
Number 393
COMMISSIONER USERA explained legal concerns by clarifying
there would not be an eligibility problem because HB 81
would pass a constitutional test.
REPRESENTATIVE OLBERG pointed out ten years from now, when
his mother reached the age of 75, he could move her here and
she would receive a check.
Number 416
COMMISSIONER USERA confirmed the immigration of seniors into
Alaska had increased and they would receive checks. This
was a dilemma of the program, she added.
Number 478
MS. STERLING noted there were four bills on this topic:
HB 81, SB 6, SB 58, and HB 77, each of which had its own
weakness. She asked if the program could be based on need.
Number 491
REPRESENTATIVE OLBERG discussed needs' based programs. Many
people with needs would not utilize available programs
because of pride, he said.
MS. STERLING pointed out social security and medicaid did
not have a stigma attached to them.
Number 511
COMMISSIONER USERA discussed needs' based programs in the
Department of Administration such as the Older Alaskans
Commission and the Pioneer Home. She claimed there was a
network of support for senior citizens and that assistance
for senior citizens had expended.
Number 539
ELMER LINDSTROM, SPECIAL ASSISTANT, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, testified in support of HB 81. He
discussed old age assistance being counted as income and
spoke of the fiscal note savings.
Number 581
MR. JOHNSON, a retired economist, stated his concern with
social security, which he felt was not the cushion that
people expected. He believed the longevity bonus would not
be any different. "Do not tie the program to terms of
need," he added.
ADJOURNMENT
Number 627
CHAIRMAN VEZEY adjourned the meeting at 9:36 a.m.
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