Legislature(2001 - 2002)
05/08/2001 12:41 PM Senate RLS
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* first hearing in first committee of referral
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HB 198-PUB OFFICERS RETIREM'T COLA/COMPENSATION
MS. MELANIE LESH, aide to Representative Bill Hudson, sponsor of HB
198, informed the committee that HB 198 received a hearing in the
Senate Finance Committee the previous morning and that she and Guy
Bell were available to answer questions.
SENATOR THERRIAULT asked for an explanation of the problem.
MS. LESH explained the Elected Public Officers Retirement System
(EPORS), unlike the Public Employees Retirement System (PERS) and
the Teachers Retirement System (TRS), was not designed to include a
cost of living adjustment. PERS and TRS retirees receive an annual
adjustment of 75 percent of the change in the cost of living. HB
198 would provide a cost of living adjustment for EPORS members but
includes only those members who have been retired for over 10 years
and have had no change to their retirement benefits in that time.
Legislative members of EPORS are excluded because changes have been
made to office allowances and to the salary.
SENATOR COWDERY asked what source of funding will be used and
whether it will cost the retirees anything.
MS. LESH replied the retirees contributed to EPORS at 7 percent.
SENATOR COWDERY asked if the retirees will contribute more at this
time to receive an added benefit.
MS. LESH said she does not believe so.
MR. GUY BELL, Director of Retirement and Benefits, said that a
person no longer contributes to the system once retired.
SENATOR PHILLIPS asked if EPORS was repealed by the voters.
MS. LESH said it was but it was reinstated by the court for those
members who were participating. She explained that no new
participants will be added but a cost of living benefit will be
added from this time forward. Representative Hudson believes an
inequity exists for governors and lieutenant governors because a
conflict exists in statute regarding the governor's salary. One
provision ties the salary to a range and step but another provision
sets the amount, which has taken precedence. That salary has been
$83,000 since 1983. Representative Hudson believes that could not
have been foreseen by the members of EPORS when they made the
decision to stay with that system.
CHAIRWOMAN PEARCE asked if this bill applies to former governors
and lieutenant governors only.
MS. LESH said it is also for their surviving spouses.
CHAIRWOMAN PEARCE asked how many people this bill will apply to.
MR. BELL said the bill and fiscal note apply to three people; one
former governor, one former lieutenant governor, and one surviving
spouse of a lieutenant governor.
SENATOR PHILLIPS asked how many retirees are in the potential pool.
MR. BELL said the potential pool contains one other governor who
receives a retirement benefit from EPORS but that person will not
be eligible under the ten year provision for another seven years.
This bill only applies to those whose salaries are effectively
fixed in statute, which includes governors and lieutenant governors
only.
SENATOR COWDERY asked the average amount those retirees receive
now.
MR. BELL said he does not know the average but those retirement
benefits vary from very small to several thousand dollars per
month. He noted the division considers the amounts to be personal
so does not disclose detailed information.
MS. LESH said the EPORS benefit depends on the number of years of
state service. The amount is based on 5 percent per year of
service up to a maximum of 75 percent of the salary from which the
person retired.
SENATOR COWDERY asked if the bill applies to three people.
MS. LESH said there are currently three retirees and the next
person will not be eligible for seven years.
CHAIRWOMAN PEARCE asked why HB 198 is not considered special
legislation.
MS. LESH said Representative Hudson's original version of the bill
included a salary increase for the governor to $110,000 but it was
amended twice in the House and that increase was removed. She
noted that increasing the governor's salary itself would resolve
the problem but this approach resolves the problem as well without
the political controversy of raising the governor's salary.
Representative Hudson allowed the removal of that provision and
then tried to broaden yet narrow the bill to individuals who had
received no increases in over ten years and who have been retired
and receiving benefits for ten years.
SENATOR PHILLIPS asked what other category of civil service
employees the same five percent calculation applies to.
MR. BELL said this legislation parallels the judicial retirement
system. A judge accrues 5 percent per year up to a maximum of 75
percent.
SENATOR COWDERY asked how many salary increases legislators have
received during the same period.
MS. LESH answered legislators salary changes are included in the
back up information. They have received increases several times.
Legislators are also excluded from the purview of this legislation
because of the office allowance increases. Representative Hudson
wished to limit the fiscal impact of this legislation so it is
focused on the most extreme cases.
SENATOR COWDERY noted that he spends more than his office allowance
provides so he does not consider it to be a benefit. He noted that
he cannot support this legislation.
CHAIRWOMAN PEARCE asked for a motion to calendar HB 198.
SENATOR THERRIAULT asked if the Legislative Council will absorb the
costs.
MS. LESH said that section was added in the House Rules Committee.
The Legislative Council agreed it could absorb that cost.
CHAIRWOMAN PEARCE clarified that the fiscal note has been adopted
into CCSHB 103.
The committee took a brief at-ease.
SENATOR THERRIAULT moved to calendar HB 198. There being no
objection, the motion carried.
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