Legislature(2007 - 2008)SENATE FINANCE 532
03/29/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | SB 123 | ||
MINUTES
SENATE FINANCE COMMITTEE
March 29, 2007
9:08 a.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
9:08:18 AM.
PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Kim Elton
Senator Joe Thomas
Senator Fred Dyson
Senator Donny Olson
Also Attending: ANNETTE KREITZER, Commissioner, Department of
Administration
Attending via Teleconference: There were no teleconference
participants
SUMMARY INFORMATION
SB 123-PUBLIC EMP./TEACHERS/JUDGES EMP. BENEFITS
The Committee heard from the Department of Administration. One
amendment was adopted and the bill reported from Committee.
9:08:43 AM
SENATE BILL NO. 123
"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."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman stated that this retirement system "technical
clarification bill" was applicable to the State's Public
Employees Retirement System (PERS) and Teachers Retirement
System (TRS) as well as individuals employed by municipalities
and the University of Alaska system.
Co-Chair Stedman asked that Members communicate any concern
regarding this legislation as the intent was to report this bill
from Committee today.
9:10:25 AM
Amendment #1: This amendment deletes "In addition, the amount of
[THE] contributions and interest due may be claimed by the
administrator from [DEDUCTED BY] the Department of Education and
Early Development from the state funds due the school district
[AND THE AMOUNT SO DEDUCTED TRANSMITTED TO THE PLAN FOR DEPOSIT
IN THE RETIREMENT FUND]." from AS 14.25.062(b) amended by
Section 1 on page 2, lines 3 through 7, and replaces it with the
following.
[IN ADDITION, THE AMOUNT OF THE CONTRIBUTIONS AND
INTEREST MAY BE DEDUCTED BY THE DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT FROM THE STATE FUNDS DUE THE SCHOOL
DISTRICT AND THE AMOUNT SO DEDUCTED TRANSMITTED TO THE PLAN
FOR DEPOSIT IN THE RETIREMENT FUND.]
The amendment also deletes the following language from AS
14.25.370 amended by Section 24 on page 11, lines 14 through 17.
In addition, the amount of contributions and interest
due may be claimed by the administrator from the Department
of Education and Early Development from the state funds due
the school district."
New Text Underlined [DELETED TEXT BRACKETED]
Senator Elton moved Amendment #1.
Co-Chair Stedman objected for purposes of discussion.
9:10:50 AM
Senator Elton explained that current law would allow an
administrator from the Department of Health and Social Services
"to intercept dollars that would otherwise be going to a
political subdivision" when there was cause. This amendment
"rescinds that ability in one case"; that being that an
administrator would be prohibited from intercepting foundation
formula dollars going to a school district.
Senator Elton expressed that the purpose of the amendment is to
ensure that "as we administer the system that we don't do it in
a way that penalizes innocents, and, in this case, it would be
school children that benefit from the foundation formula
dollars".
Co-Chair Stedman noted that this concern had been raised during
previous discussions on the bill.
9:11:57 AM
ANNETT KREITZER, Commissioner, Department of Administration,
voiced no objection to the amendment. She assured Senator Elton
"that we would never penalize innocents".
Senator Olson asked whether any other entity besides a school
district would be affected by the amendment.
Senator Elton specified that this was "a very discreet amendment
that applies to the foundation formula only".
Senator Elton assured Commissioner Kreitzer he was not worried
about her management of the system. He was "more worried about
those who come behind".
Co-Chair Stedman emphasized that educating children was a
responsibility of the State. The State would not remove funds
from K-12 education or individual schools were there a problem
"with a particular member of the retirement system".
Co-Chair Stedman removed his objection.
There being no further objection, Amendment #1 was ADOPTED.
Senator Elton advised the Committee that he had developed
another amendment [copy on file] pertaining to administrative
procedures. However, that amendment would not be offered since
he had not had an opportunity to discuss his concerns with
either the Alaska Retirement Management Board (ARMB) or with
Commissioner Kreitzer.
Senator Elton stated that a copy of the amendment as well as an
accompanying memorandum from the Division of Legal and Research
Services, Legislative Affairs Agency [copy not provided] would
be distributed to Members.
Co-Chair Stedman acknowledged.
9:15:16 AM
Commissioner Kreitzer voiced appreciation for the Committee's
attention to this "very technical bill".
9:15:35 AM
Co-Chair Stedman observed that no one had signed up to testify
on the bill.
9:15:55 AM
Senator Elton appreciated the effort that had been taken in
developing this "fix-it bill"; however, since he did not believe
that all the issues pertaining to the recently revised
retirement systems had been thoroughly addressed, he would be
casting a "no recommendation" vote on this bill. Further work
would be required.
9:17:18 AM
Co-Chair Hoffman moved to report the bill from Committee with
individual recommendations and one previous and one new
Department of Administration fiscal note.
Co-Chair Stedman affirmed that a new zero fiscal note had been
developed by the Department of Administration.
There being no objection, CSSB 123(FIN) was REPORTED from
Committee with two Department of Administration fiscal notes:
previous zero fiscal note #1 and a new zero fiscal note dated
March 20, 2007.
Co-Chair Stedman thanked Commissioner Kreitzer for her
assistance with the bill.
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 9:18:53 AM.
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