Legislature(2001 - 2002)
04/26/2001 08:03 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HB 198 - GOV SALARY; PUB OFFICERS RETIREMENT COLA Number 2196 CHAIR COGHILL announced that the next order of business would be HOUSE BILL NO. 198, "An Act relating to a post-retirement pension adjustment and cost-of-living allowance for persons receiving benefits under the Elected Public Officers Retirement System; and increasing the compensation of the governor." Number 2187 REPRESENTATIVE BILL HUDSON, Alaska State Legislature, sponsor, offered a committee substitute (CS) for HB 198, version 22- LS0723\L, Cramer, 4/23/01, and explained that the CS simplifies HB 198. He said he has taken out any reference to an increase in pay for the governor, and narrowed the scope in order to contain costs and focus on the most extreme cases - correcting the longstanding inequity between retirement benefit calculations for those in the Elected Public Officers Retirement System (EPORS) and those in the Public Employees Retirement System (PERS). REPRESENTATIVE HUDSON said that language in the CS concentrates on members who have not had one cost-of-living or other benefit adjustment to their EPORS retirement benefits for 15 years or more. This narrows it down to just a handful of people. This is a basic equity situation, he said. It follows the same rules as every other retirement program in that when a retiree reaches age 65, he or she is eligible for 75 percent of the cost of living increase, and it also takes care of the surviving spouse. It will cover one retired governor, two retired lieutenant governors, and/or their surviving spouses/next of kin. REPRESENTATIVE HUDSON said the fiscal note has been cut down to $47,600. "Of all of the things that I've done, I believe this is the fairest bill," he said; "this is equity. These are people who've been left out [of] ... all other systems ... for, in some cases, in excess of 20 years." In all of the other state retirement programs, a surviving spouse can receive 50 percent of what the retiree received, he said. "If somebody receives 50 percent of a retirement program that has not ... kept up with the cost of living increase for ... 20-some years, that person ends up ... with about 15 percent of whatever they're supposed to have, and it's not right," he stated. He then urged the committee to adopt the CS. Number 1964 REPRESENTATIVE JAMES made a motion to adopt the proposed committee substitute (CS) for HB 198, version 22-LS0723\L, Cramer, 4/23/01, as a work draft. There being no objection, the proposed CS was before the committee. Number 1923 REPRESENTATIVE JAMES moved to report the proposed committee substitute (CS) for HB 198, version 22-LS0723\L, Cramer, 4/23/01, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 198(STA) was reported from the House State Affairs Standing Committee.
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