Legislature(2023 - 2024)SENATE FINANCE 532

05/12/2023 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 88 RETIREMENT SYSTEMS; DEFINED BENEFIT OPT. TELECONFERENCED
Heard & Held
+= SB 95 LICENSE PLATES: SPECIALTY ORGANIZATIONS TELECONFERENCED
Moved CSSB 95(STA) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                       May 12, 2023                                                                                             
                         9:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:03:05 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Olson called the Senate Finance Committee meeting                                                                      
to order at 9:03 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Ken Alper, Staff, Senator Donny Olson; Senator Cathy                                                                            
Giessel, Sponsor                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Gene Kalwarski, CEO, CHEIRON, Virginia                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 88     RETIREMENT SYSTEMS; DEFINED BENEFIT OPT.                                                                              
                                                                                                                                
          SB 88 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 95     LICENSE PLATES: SPECIALTY ORGANIZATIONS                                                                               
                                                                                                                                
          SB 95 was REPORTED out of committee with six "do                                                                      
          pass" recommendations, one "no recommendation",                                                                       
          and with one previously published fiscal note: FN                                                                     
          1(ADM).                                                                                                               
                                                                                                                                
SENATE BILL NO. 88                                                                                                            
                                                                                                                                
     "An Act  relating to  the Public  Employees' Retirement                                                                    
     System of  Alaska and the teachers'  retirement system;                                                                    
     providing  certain employees  an opportunity  to choose                                                                    
     between  the defined  benefit and  defined contribution                                                                    
     plans  of the  Public Employees'  Retirement System  of                                                                    
     Alaska  and   the  teachers'  retirement   system;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:04:31 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:04:58 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:06:04 AM                                                                                                                    
                                                                                                                                
GENE    KALWARSKI,     CEO,    CHEIRON,     VIRGINIA    (via                                                                    
teleconference),  discussed   the  presentation,  "Actuarial                                                                    
Estimates"  (copy on  file). He  looked at  slide 2,  "About                                                                    
Cheiron":                                                                                                                       
                                                                                                                                
     Formed in 2002                                                                                                             
                                                                                                                                
          Our consultants have decades of experience                                                                            
          advising several                                                                                                      
          of the nation's largest public pension plans                                                                          
                                                                                                                                
     Cheiron 2023                                                                                                               
                                                                                                                                
          • Highest percentage of fully credentialed                                                                            
          actuaries in the industry                                                                                             
          • National reputation for being proactive,                                                                            
          responsive, and innovative                                                                                            
          • Often called on to assist in the most                                                                               
          politically charged/challenging environments                                                                          
                                                                                                                                
Mr. Kalwarski looked at slide 3, "Our Public Sector                                                                             
Experience." He spoke to an overview of all the states and                                                                      
organizations which were considered clients.                                                                                    
                                                                                                                                
Mr. Kalwarski pointed to slide 4, "Methodology Used":                                                                           
                                                                                                                                
     • Step 1                                                                                                                   
       Run initial valuation to determine purchase                                                                              
     liability assuming all DCR service converts to DB                                                                          
     service                                                                                                                    
       Compare DCR balance to purchase liability                                                                                
       If DCR balance exceeds purchase liability, all DCR                                                                       
     service converts to DB service                                                                                             
       If DCR balance is less than purchase liability, only                                                                     
     a proportionate amount of DCR service converts to DB                                                                       
     service                                                                                                                    
     • Step 2                                                                                                                   
       Rerun valuation using only the purchased service                                                                         
     from Step 1 which converts to DB service                                                                                   
                                                                                                                                
Co-Chair Stedman  queried the ending dates  on the accounts,                                                                    
and  whether they  were  run the  previous  year before  the                                                                    
market slide.                                                                                                                   
                                                                                                                                
Mr. Kalwarski  replied that  everything was  run as  of June                                                                    
30, 2021, so  there was not a reflection of  the most recent                                                                    
market downslide.                                                                                                               
                                                                                                                                
Co-Chair  Stedman remarked  that  June 30,  2021 predated  a                                                                    
good portion of the market correction.                                                                                          
                                                                                                                                
Mr. Kalwarski agreed.                                                                                                           
                                                                                                                                
Mr.  Kalwarski discussed  slide  5,  "Methodology Used."  He                                                                    
remarked  that it  was  a  snapshot of  the  results of  the                                                                    
evaluation.                                                                                                                     
                                                                                                                                
Mr. Kalwarski  addressed slide  5, "Key  Valuation Results."                                                                    
He  noted  the  line titled,  "Actuarial  Liability",  which                                                                    
showed the total of $1.169 billion.                                                                                             
                                                                                                                                
9:10:42 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  requested  more  information,  and  asked                                                                    
about the assumption of a 100 percent transfer.                                                                                 
                                                                                                                                
Mr. Kalwarski agreed.                                                                                                           
                                                                                                                                
Co-Chair Stedman requested  more background information with                                                                    
the slides.                                                                                                                     
                                                                                                                                
Mr.  Kalwarski replied  that the  information is  in a  more                                                                    
formal report.                                                                                                                  
                                                                                                                                
Co-Chair Stedman queried the timeline of the report.                                                                            
                                                                                                                                
Mr. Kalwarski  replied that the draft  report was submitted,                                                                    
and the final would be submitted following the meeting.                                                                         
                                                                                                                                
Senator  Wilson  asked  about  other  simulations  that  had                                                                    
quartered out other percentage of transferring.                                                                                 
                                                                                                                                
Mr. Kalwarski replied  that the table on slide  5 showed the                                                                    
percentages.                                                                                                                    
                                                                                                                                
Senator  Wilson  wondered  whether   the  models  were  done                                                                    
throughout the presentation.                                                                                                    
                                                                                                                                
Senator   Wilson  wondered   whether   the  stress   testing                                                                    
projections also assumed 100 percent transfer.                                                                                  
                                                                                                                                
Mr. Kalwarski  replied in the  affirmative, and  stated that                                                                    
other   percentages   would   show  the   same   projections                                                                    
multiplied by that presumption.                                                                                                 
                                                                                                                                
Senator Wilson  asked that those percentages  be provided to                                                                    
the committee.                                                                                                                  
                                                                                                                                
Mr. Kalwarski agreed to provide that information.                                                                               
                                                                                                                                
9:15:48 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  agreed that it  was unfortunate  that they                                                                    
did not have the report in advance.                                                                                             
                                                                                                                                
Mr. Kalwarski  stated that beginning  on slide 7  showed the                                                                    
impact of the unfunded liability.                                                                                               
                                                                                                                                
Co-Chair Stedman looked at slide  6, and remarked that there                                                                    
was overfunding and asked about more information.                                                                               
                                                                                                                                
Mr. Kalwarski  replied that  slide 6  was a  generic picture                                                                    
and was not representative of Alaska.                                                                                           
                                                                                                                                
Mr. Kalwarski addressed slide 7, "Baseline Combined."                                                                           
                                                                                                                                
9:21:47 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked for clarification  on the  red line,                                                                    
which  was  the  portion  that would  otherwise  go  to  the                                                                    
unfunded liability.                                                                                                             
                                                                                                                                
Mr. Kalwarski noted  that the red line  was the contribution                                                                    
if not for SB 88.                                                                                                               
                                                                                                                                
Co-Chair Stedman remarked that the  concern was about the $7                                                                    
billion unfunded liability.                                                                                                     
                                                                                                                                
Mr. Kalwarski replied that the  slide did not speak to money                                                                    
going to the legacy plan.                                                                                                       
                                                                                                                                
Co-Chair  Stedman surmised  that  it had  no  impact on  the                                                                    
legacy plans.                                                                                                                   
                                                                                                                                
Mr. Kalwarski agreed.                                                                                                           
                                                                                                                                
9:25:14 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  stressed that  the existing  liability was                                                                    
the state's responsibility.                                                                                                     
                                                                                                                                
Mr. Alper  replied that there  would be a  presentation from                                                                    
Buck Consulting address the issue.                                                                                              
                                                                                                                                
Co-Chair  Stedman  wanted  Buck Consulting  to  address  the                                                                    
question  in  order  to  prevent  more  liability  from  the                                                                    
municipalities be put to the state.                                                                                             
                                                                                                                                
9:27:23 AM                                                                                                                    
                                                                                                                                
Mr. Kalwarski  looked at  slides 8, 9,  and 10,  which broke                                                                    
out the TRS, PERS Other, and PERS Safety.                                                                                       
                                                                                                                                
Co-Chair Stedman asked about the  salary replacement of 67.5                                                                    
percent over 30 years.                                                                                                          
                                                                                                                                
Mr. Kalwarski replied in the affirmative.                                                                                       
                                                                                                                                
Co-Chair Stedman  queried how the  state would  replace 67.5                                                                    
percent and SBS.                                                                                                                
                                                                                                                                
Mr. Kalwarski  replied that he  did not have that  data, but                                                                    
felt  that it  was  in  the "middle  of  the  plans" he  was                                                                    
working on. He felt there were no outliers.                                                                                     
                                                                                                                                
9:30:18 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  requested  a  formal  answer  related  to                                                                    
salary replacements.                                                                                                            
                                                                                                                                
Mr.  Kalwarski   stated  that  slides  7   through  10  were                                                                    
baselines of earnings.                                                                                                          
                                                                                                                                
Mr. Kalwarski  looked at  slide 11,  "Combined    Two Strong                                                                    
Investment Returns."  He noted that  there was a  15 percent                                                                    
increase outlined and evaluated within the slide.                                                                               
                                                                                                                                
Mr.  Kalwarski  addressed slide  12,  "Combined    Two  Poor                                                                    
Investment Returns."  He remarked  that the  slide reflected                                                                    
the impact of poor investment returned.                                                                                         
                                                                                                                                
Co-Chair  Stedman  looked at  the  slide  related to  public                                                                    
safety. He  remarked that some  communities did  not include                                                                    
the public  safety employees in  SBS or social  security. He                                                                    
queried the remedy for that situation.                                                                                          
                                                                                                                                
Mr. Kalwarski  replied that there  needed to be  an increase                                                                    
to the current formula.                                                                                                         
                                                                                                                                
Co-Chair  Stedman  wondered whether  there  needed  to be  a                                                                    
split tier to fix that issue.                                                                                                   
                                                                                                                                
Mr. Kalwarski  replied that the  proposed SB 88  gave public                                                                    
employees the chance to earn a pension.                                                                                         
                                                                                                                                
Mr.  Kalwarski  addressed   slide  13,  "Combined  1930-1960                                                                    
Returns." He stated that the  slide showed the impact of the                                                                    
Great Depression.                                                                                                               
                                                                                                                                
9:36:29 AM                                                                                                                    
                                                                                                                                
Senator Kiehl  wondered whether there  was an  evaluation of                                                                    
what would happen to the unfunded liability over time.                                                                          
                                                                                                                                
Mr.  Kalwarski replied  that the  recognized  each year  was                                                                    
amortized over a 25 year period.                                                                                                
                                                                                                                                
Senator  Wilson wondered  when members  would draw  from the                                                                    
funds.                                                                                                                          
                                                                                                                                
Mr.  Kalwarski replied  that the  each DCR  member projected                                                                    
them through  end of  life and the  probabilities of  end of                                                                    
life, so the draw depended on each person.                                                                                      
                                                                                                                                
Senator Wilson wondered whether  the assumptions were within                                                                    
the projections.                                                                                                                
                                                                                                                                
Mr. Kalwarski replied in the affirmative.                                                                                       
                                                                                                                                
Senator Wilson surmised that it  was unknown of the specific                                                                    
year, but based on the assumption of earnings.                                                                                  
                                                                                                                                
Mr.  Kalwarski  responded  that  the  drawdown  began  at  a                                                                    
different time for everyone.                                                                                                    
                                                                                                                                
Senator Wilson  wondered whether the projected  draw amounts                                                                    
were included in the slides.                                                                                                    
                                                                                                                                
Mr. Kalwarski replied in the affirmative.                                                                                       
                                                                                                                                
9:39:54 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  queried the  risk to  the employee  if the                                                                    
state uncapped the  employee and matched the  increase to 50                                                                    
percent.                                                                                                                        
                                                                                                                                
Mr. Kalwarski  responded that the  risk sharing  concept was                                                                    
between  8 and  12  percent, and  would  increase only  when                                                                    
increased by the Alaska Retirement Management (ARM) board.                                                                      
                                                                                                                                
Co-Chair Stedman  wondered whether it was  reasonable to cap                                                                    
it at 12 percent.                                                                                                               
                                                                                                                                
Mr.  Kalwarski  replied that  most  statewide  plans in  the                                                                    
country did not have the  risk sharing concept, so there was                                                                    
a fixed rate.                                                                                                                   
                                                                                                                                
Co-Chair Stedman  wondered whether the other  states had the                                                                    
constitutional protections of diminishment of benefits.                                                                         
                                                                                                                                
Mr. Kalwarski  responded that  many but  not all  states had                                                                    
that protection.                                                                                                                
                                                                                                                                
Senator Kiehl  wondered whether the bill  would make changes                                                                    
to how the funds were managed for risk and return.                                                                              
                                                                                                                                
Mr.  Kalwarski  replied that  the  bill  did not  have  that                                                                    
impact.                                                                                                                         
                                                                                                                                
Senator Kiehl  wondered whether  other states  had employees                                                                    
which had a say in the management of funds.                                                                                     
                                                                                                                                
Mr.  Kalwarski  replied  most  systems  had  more  than  one                                                                    
employee representative.                                                                                                        
                                                                                                                                
Senator Kiehl felt  that the bill showed  more employee risk                                                                    
with less employee involvement.                                                                                                 
                                                                                                                                
Mr.  Kalwarski  pointed  to slide  14,  "Combined  1940-1970                                                                    
Returns." He  stated that  the time  period showed  a "rosy"                                                                    
scenario.                                                                                                                       
                                                                                                                                
9:45:03 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman felt that the  slide was better spread over                                                                    
the  years.  He  wondered  whether the  pink  column  showed                                                                    
billions of dollars.                                                                                                            
                                                                                                                                
Mr. Kalwarski replied  that it was a  negative, meaning that                                                                    
it was a reduction to the unfunded liability.                                                                                   
                                                                                                                                
Mr. Kalwarski  pointed to  slide 15,  which showed  the good                                                                    
returns of  the 1950s,  but then higher  costs in  the 1960s                                                                    
and 1970s.                                                                                                                      
                                                                                                                                
Co-Chair Stedman noted the trigger mechanism.                                                                                   
                                                                                                                                
Mr. Kalwarski  replied that the total  contribution, but the                                                                    
ARM  Board could  increase the  member  contribution at  not                                                                    
more than 12 percent.                                                                                                           
                                                                                                                                
Mr.  Kalwarski  discussed   slide  16,  "Combined  1960-1990                                                                    
Returns."                                                                                                                       
                                                                                                                                
Co-Chair Stedman  asked about the annual  unfunded liability                                                                    
or surplus without averages.                                                                                                    
                                                                                                                                
Mr. Kalwarski replied  that the pink column  was exactly the                                                                    
unfunded liability due to SB 88.                                                                                                
                                                                                                                                
9:50:01 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman asked for more definition on that column.                                                                      
                                                                                                                                
Mr.  Kalwarski replied  that it  was not  a comparison,  but                                                                    
rather  showed that  because  of  SB 88  there  would be  an                                                                    
impact on the legacy liability.                                                                                                 
                                                                                                                                
Senator  Wilson requested  the slides  restated without  the                                                                    
errors.                                                                                                                         
                                                                                                                                
Mr. Kalwarski agreed to provide that information.                                                                               
                                                                                                                                
Senator Wilson  felt that the  slides did not show  a delta,                                                                    
because  it  was  fairly  negligible.  He  asked  about  the                                                                    
difference from the losses and gains.                                                                                           
                                                                                                                                
Mr.  Kalwarski  replied that  comparing  slides  18 and  19,                                                                    
showed  fully  funding, but  the  bottom  chart showed  that                                                                    
contributions were greater in slide 19.                                                                                         
                                                                                                                                
Senator  Bishop  requested  a slide  on  the  total  average                                                                    
market return from 1930 to present day.                                                                                         
                                                                                                                                
Mr. Kalwarski agreed to provide that information.                                                                               
                                                                                                                                
Co-Chair  Stedman  surmised  that  the gains  or  losses  on                                                                    
previous   years   were   against  the   forward   projected                                                                    
liability.                                                                                                                      
                                                                                                                                
Mr. Kalwarski replied  that it was not  a comparison, rather                                                                    
an evaluation of the history of the markets and returns.                                                                        
                                                                                                                                
9:56:24 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  wondered  whether  the  actuarial  report                                                                    
would have more detail.                                                                                                         
                                                                                                                                
Mr. Kalwarski replied in the affirmative.                                                                                       
                                                                                                                                
Senator Bishop  MOVED to ADOPT the  committee substitute for                                                                    
SB 88, Work Draft 33-LS0505\O (Klein, 5/11/23).                                                                                 
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
9:57:44 AM                                                                                                                    
                                                                                                                                
KEN  ALPER,  STAFF,  SENATOR   DONNY  OLSON,  explained  the                                                                    
committee substitute.  He discussed  the Summary  of Changes                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     Change  1 Language  was added  to clarify  that certain                                                                    
     former  Defined  Benefit  plan members,  who  were  not                                                                    
     vested  before  the   Defined  Contribution  plan  took                                                                    
     effect in  2006 and  elected at the  time to  switch to                                                                    
     the  DC plan,  are eligible  to transition  to the  new                                                                    
     Defined Benefit plans.                                                                                                     
                                                                                                                                
     Change  2  Corrects  a   discrepancy  in  the  previous                                                                    
     version  regarding  how long  a  TRS  retiree under  60                                                                    
     years  of  age  must receive  pension  benefits  before                                                                    
     being   eligible  for   the  Post   Retirement  Pension                                                                    
     Adjustment  (PRPA) benefit.  All sections  were aligned                                                                    
     for this at five years.                                                                                                    
                                                                                                                                
     Change 3 Clarifies what happens  if, in the future, the                                                                    
     full  actuarial  cost  of  the  program  for  employers                                                                    
     declines to  less than  12 percent  and the  12 percent                                                                    
     "floor" in the bill were  to take effect. In this case,                                                                    
     the   additional   employer  contributions   would   be                                                                    
     deposited  into  the  sub-trusts  for  the  appropriate                                                                    
     employee groups.                                                                                                           
                                                                                                                                
     Change 4 Adds  language to account for  what happens if                                                                    
     a Defined Contribution plan member  elects to switch to                                                                    
     Defined  Benefit, but  the amount  in their  account is                                                                    
     more  than  what  is needed  to  purchase  their  full-                                                                    
     service time. In  that case, the excess  funds would be                                                                    
     transferred either to the employee's  SBS account or to                                                                    
     another eligible retirement plan.                                                                                          
                                                                                                                                
     Change  5  Clarifies  language  describing  which  plan                                                                    
     members are  initially eligible to  elect to  switch to                                                                    
     the  new Defined  Benefit plan.  This applies  to those                                                                    
     employees who became  a member of that  plan after June                                                                    
     30, 2006,  and are  employed on  the effective  date of                                                                    
     the bill.                                                                                                                  
                                                                                                                                
     Change 6  Extends the  time period  for an  employee to                                                                    
     choose whether  to switch to  the Defined  Benefit plan                                                                    
     from 120 days to 180 days.                                                                                                 
                                                                                                                                
10:04:01 AM                                                                                                                   
                                                                                                                                
Senator Wilson wondered whether employees would be given                                                                        
consultation on their options to change the plan.                                                                               
                                                                                                                                
Mr. Alper replied in the affirmative.                                                                                           
                                                                                                                                
Senator Wilson surmised it was not a requirement.                                                                               
                                                                                                                                
Mr. Alper  replied that he  believed it was required  in the                                                                    
bill.                                                                                                                           
                                                                                                                                
Senator Merrick surmised that the  DB plan, under TRS, saved                                                                    
the state  a significant  amount of  money, PERS  was status                                                                    
quo, and PERS safety was more expensive.                                                                                        
                                                                                                                                
Mr. Kalwarski agreed.                                                                                                           
                                                                                                                                
Senator Merrick  queried the cause  of the expense  for PERS                                                                    
safety.                                                                                                                         
                                                                                                                                
Mr.  Kalwarski replied  that  it would  be  impacted by  the                                                                    
retirement eligibility.                                                                                                         
                                                                                                                                
Senator Merrick  surmised that the combined  baseline number                                                                    
from  slide 7  showed that  the  DB plan  was slightly  less                                                                    
expensive for the state.                                                                                                        
                                                                                                                                
Mr. Kalwarski agreed.                                                                                                           
                                                                                                                                
Co-Chair Stedman  wondered why  the new  tier would  be shut                                                                    
down and not run concurrently with the plan.                                                                                    
                                                                                                                                
Mr. Kalwarski replied  that the purpose of the  plan was for                                                                    
a pension.                                                                                                                      
                                                                                                                                
10:10:01 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman requested  a better  understanding of  the                                                                    
longevity of the employees.                                                                                                     
                                                                                                                                
Senator Bishop noted  that he recalled someone  who lost his                                                                    
pension within the trade union due to bad management.                                                                           
                                                                                                                                
Senator Wilson  wondered whether it  was better to  have one                                                                    
PERS plan or separate PERS plans.                                                                                               
                                                                                                                                
Mr.  Kalwarski replied  that separate  plans were  important                                                                    
for mortality risks.                                                                                                            
                                                                                                                                
Co-Chair Stedman  recognized that the safety  employees were                                                                    
employed at  the municipal level  and did not  contribute to                                                                    
social security  and SBS. He  felt that one plan  was better                                                                    
than two, so the TRS could contribute to SBS.                                                                                   
                                                                                                                                
Mr. Kalwarski replied that it was a policy issue.                                                                               
                                                                                                                                
Co-Chair  Stedman  wondered  whether   other  states  had  a                                                                    
combined plan for efficiency.                                                                                                   
                                                                                                                                
Mr. Kalwarski  replied that  there was  a combination  in SB
88.                                                                                                                             
                                                                                                                                
10:15:35 AM                                                                                                                   
                                                                                                                                
Co-Chair   Stedman   disagreed,   because  TRS   could   not                                                                    
contribute to  SBS and social  security. He wondered  how to                                                                    
enhance the retirement structure.                                                                                               
                                                                                                                                
Mr. Kalwarski  replied that  he did not  have a  good enough                                                                    
familiarity with that issue.                                                                                                    
                                                                                                                                
Senator Wilson wondered when the analysis began for SB 88.                                                                      
                                                                                                                                
Mr.  Kalwarski replied  that the  work had  been done  for a                                                                    
month.                                                                                                                          
                                                                                                                                
Senator Wilson  wondered who contacted  the company  for the                                                                    
analysis.                                                                                                                       
                                                                                                                                
Mr.  Alper  replied that  he  was  involved in  the  project                                                                    
before the bill passed form the previous committee.                                                                             
                                                                                                                                
Senator  Wilson wondered  whether Buck  was involved  in the                                                                    
analysis.                                                                                                                       
                                                                                                                                
Co-Chair Olson  replied that there  was resistance  to using                                                                    
Buck.                                                                                                                           
                                                                                                                                
Mr. Alper  replied that  because Buck  was on  contract with                                                                    
the  Executive  Branch,  the  Department  of  Administration                                                                    
(DOA)  stated  that  it  would   have  been  a  conflict  of                                                                    
interest.                                                                                                                       
                                                                                                                                
Senator Kiehl appreciated the work on the bill.                                                                                 
                                                                                                                                
10:22:53 AM                                                                                                                   
                                                                                                                                
SENATOR CATHY GIESSEL, SPONSOR, explained that the bill had                                                                     
a very positive impact on the retirement system.                                                                                
                                                                                                                                
10:27:41 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:28:02 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:28:05 AM                                                                                                                   
                                                                                                                                
Co-Chair Olson REMOVED his OBJECTION. There being NO                                                                            
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Olson stated that the amendment deadline was 5pm.                                                                      
                                                                                                                                
SB 88 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 95                                                                                                            
                                                                                                                                
     "An Act relating to special request specialty                                                                              
     organization registration plates; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
10:28:51 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:29:34 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:29:56 AM                                                                                                                   
                                                                                                                                
Senator Merrick thanked the committee.                                                                                          
                                                                                                                                
Senator Merrick MOVED to REPORT SB 95 from committee with                                                                       
individual recommendations and attached fiscal note.                                                                            
                                                                                                                                
SB 95 was REPORTED out of committee with six "do pass"                                                                          
recommendations, one "no recommendation", and with one                                                                          
previously published fiscal note: FN 1(ADM).                                                                                    
                                                                                                                                
10:30:32 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:33:07 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:33:25 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:33 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 88 Cheiron actuary analysis slides 5-11-23 final (003).pdf SFIN 5/12/2023 9:00:00 AM
SB 88
SB 88 Summary of Changes FIN 5-12-23.pdf SFIN 5/12/2023 9:00:00 AM
SB 88
SB 88 work draft version (FIN) O 5-12-23 final.pdf SFIN 5/12/2023 9:00:00 AM
SB 88
SB 88 Cheiron report 20230512s.pdf SFIN 5/12/2023 9:00:00 AM
SB 88