Legislature(2005 - 2006)BELTZ 211
04/14/2005 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB24 | |
| SB94 | |
| SB12 | |
| HB95 | |
| HB116 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| * | SB 94 | ||
| HB 116 | |||
| = | SB 12 | ||
| = | HB 95 | ||
| = | SB 24 | ||
SSSB 24-REEMPLOYMENT OF RETIREES
CHAIR GENE THERRIAULT announced the first order of business to
be SB 24.
3:39:28 PM
CHAIR THERRIAULT requested a motion to adopt the proposed
committee substitute (CS).
SENATOR CHARLIE HUGGINS motioned to adopt \I version CS for SSSB
24 as the working document.
HEATHER BRAKES, Staff to Senator Therriault, outlined the
proposed changes:
· Section 1 calls for an annual report to the legislature
to explain what employers are doing to plan for shortages
in certain employment areas.
· Section 2 applies to the TRS system and mirrors Section 3
· Subsection 2(a) grandfathers any employees
hired as of 7/1/05. Those employees may
continue under the waiver for one year. On
7/1/06 that benefit would no longer be
available. An employee could continue
employment, but he/she would no longer
receive a retirement benefit while
employed.
· Subsection (b) states that an employer
must offer health insurance to the rehired
retiree just as they do for all other
employees. Furthermore, that medical
coverage would be the primary and only
coverage. An employee would no longer be
able to use the retirement medical benefit
as secondary coverage.
· Subsection (c) requires that the employer
make contributions to the unfunded
liability at the same rate that is made
for all other employees.
· Section 3 applies to the PERS system and mirrors Section
2
· Subsections 3(a)(b)(c) mirror subsections
2(a)(b)(c).
· Section 4 is a conditional retroactive date.
3:42:49 PM
CHAIR THERRIAULT recapped Ms. Brakes' explanation.
SENATOR KIM ELTON said the way he reads Section 1 is that it
would only require the TRS and PERS administrators to report on
the effect of the act on the retirement systems.
CHAIR THERRIAULT said that's correct.
SENATOR ELTON asked for clarification that it's a one year
extension for those already in the system and not a one year
extension so that employers can continue to hire new people into
the system.
CHAIR THERRIAULT said that's correct. He added there was
discussion in his office about trying to understand the reasons
why it's so difficult to fill certain positions, but that wasn't
part of the CS.
SENATOR ELTON remarked it's a good idea to know why things
happen.
CHAIR THERRIAULT responded that should already be part of the
human resource job description and duty list.
SENATOR CHARLIE HUGGINS asked whether there would be a mechanism
to rehire a retiree if this bill were to pass.
MIKE TIBBLES, Deputy Commissioner, Department of Administration
(DOA), explained that the state could still bring a retiree
back, but he/she would accrue additional retirement benefits and
the employer would be required to contribute into the system for
those benefits. The pension benefit would be suspended for the
reemployment period.
CHAIR THERRIAULT recapped the explanation.
SENATOR HUGGINS questioned whether it would be attractive for
retired teachers to come back.
MR. TIBBLES acknowledged it is a concern and the legislature
should continue to hold such discussions.
SENATOR HUGGINS added he is also concerned about the alleged
abuses to the current system.
CHAIR THERRIAULT remarked Mr. Tibbles certainly intends to push
the Administration's position that it could add sideboards to
make it acceptable for the system to go forward.
He asked Mr. Tibbles whether the changes in the CS would require
refiguring the fiscal note.
MR. TIBBLES said he would have to double check with the
division, but he believes the analysis is still correct.
CHAIR THERRIAULT noted the CS asks employees to go on the
regular health system and asks departments to make contributions
to hold the retirement system harmless. He questioned whether
that wouldn't result in some sort of fiscal impact.
MR. TIBBLES replied the State of Alaska is providing health
coverage for those who return but the concern centers on what's
happening at the municipal level. Municipalities would be
required to provide primary health coverage and not be allowed
to cost shift health coverage to the retirement account.
CHAIR THERRIAULT elaborated, municipalities chose not to
continue the regular health insurance and forced rehired people
into the retirement health insurance.
MR. TIBBLES agreed that happened in several instances.
SENATOR ELTON observed that if you were to replace the current
retire/rehires in one year, the employee cost to the state would
go up.
3:51:41 PM
CHAIR THERRIAULT noted there were no further questions and asked
the will of the committee.
SENATOR HUGGINS motioned to report SB 24, as amended, and
attached fiscal note from committee with individual
recommendations.
CHAIR THERRIAULT asked Mr. Tibbles to review the fiscal note.
He announced that there being no objection, CSSSSB 24(STA) moved
from committee.
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