04/02/2007 07:11 AM House W&M

HB 204-PUBLIC EMP./TEACHERS/JUDGES EMP. BENEFITS                                                                              
                                                                                                                                
CHAIR HAWKER announced that the  first order of business would be                                                               
HOUSE BILL NO. 204, An Act  relating to the public employees' and                                                               
teachers'  defined  benefit  retirement plans;  relating  to  the                                                               
public employees'  and teachers' defined  contribution retirement                                                               
plans; relating  to the judicial  retirement system;  relating to                                                               
the health  reimbursement arrangement  plan for  certain teachers                                                               
and  public  employees;  relating to  the  supplemental  employee                                                               
benefit  program;  relating  to the  public  employees'  deferred                                                               
compensation  program; relating  to  group  insurance for  public                                                               
employees  and   retirees;  making  conforming   amendments;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
ANNETTE   KREITZER,   Commissioner    Designee,   Department   of                                                               
Administration  (DOA)  provided  the committee  with  a  document                                                               
titled "Comparison of Former HB 475 and  HB 204".  She went on to                                                               
reference an email  sent to her on March 31,  2007 which provides                                                               
a  synopsis  of  the  participation  of  the  National  Education                                                               
Association,   Alaska  branch   (NEA-Alaska)  in   the  Teachers'                                                               
Retirement System (TRS) as requested by the committee.                                                                          
                                                                                                                                
REPRESENTATIVE SEATON  relayed that,  at the last  meeting, there                                                               
was discussion  of the  effect of  allowing elected  officials to                                                               
participate in  the Public  Employees' Retirement  System (PERS).                                                               
He  explained that  his  office did  some  research on  different                                                               
employment scenarios  and their  effect on PERS.   He  noted that                                                               
the largest cost component is for medical costs.                                                                                
                                                                                                                                
CHAIR HAWKER  confirmed that the aforementioned  research was for                                                               
PERS Tiers I, II, and III only.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON  reminded the committee that  an employee's                                                               
PERS  participation tier  is based  on the  date that  person was                                                               
first employed,  so an elected official  with previous employment                                                               
with a PERS  employer will fall under the system  that applied at                                                               
the time that person was first  employed.  He noted that while it                                                               
is against  the law for an  employer to use retirement  status in                                                               
employment  decisions, there  is  no  prohibition against  voters                                                               
considering  the retirement  system  status of  a candidate  when                                                               
making their decision.                                                                                                          
                                                                                                                                
[HB 204 was held in committee.]                                                                                                 
                                                                                                                                
7:18:20 AM