Legislature(1993 - 1994)
04/16/1993 09:05 AM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
April 16, 1993
9:05 a.m.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Mike Miller, Vice Chairman
Senator Robin Taylor
MEMBERS ABSENT
Senator Johnny Ellis
Senator Jim Duncan
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 11
Designating the month of March as "Women's History Month."
SENATE BILL NO. 118
"An Act permitting certain public health service officers to
receive credited service in the public employees' retirement
system."
PREVIOUS SENATE COMMITTEE ACTION
HCR 11 - No previous action to record.
SB 118 - No previous action to record.
WITNESS REGISTER
Renee Chapman, Legislative Aide to
Representative Bettye Davis
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Commented on HCR 11.
Richard Whitbeck, Legislative Aide to
Senator Loren Leman
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Commented on SB 118.
Art Ronimus
18113 Sanctuary Drive
Anchorage, Alaska 99577
POSITION STATEMENT: Supported SB 118.
Tom wolf
2415 Susitna Drive
Anchorage, Alaska 99517
POSITION STATEMENT: Supported SB 118.
Dr. Michael Beller
2507 Redwood Street
Anchorage, Alaska 99508
POSITION STATEMENT: Supported SB 118.
James Patterson
P.O. Box 240721
Anchorage, Alaska 99524
POSITION STATEMENT: Supported SB 118.
Steve Bainbridge
P.O. Box 60831
Fairbanks, Alaska 99706
POSITION STATEMENT: Supported SB 118.
Bob Stalnaker, Director
Division of Retirement and Benefits
Department of Administration
P.O. Box 110203
Juneau, Alaska 99811-0203
POSITION STATEMENT: Opposed SB 118.
ACTION NARRATIVE
TAPE 93-28, SIDE A
Number 001
Chairman Leman called the Senate State Affairs Committee
meeting to order at 9:05 a.m. and announced HCR 11 (WOMEN'S
HISTORY MONTH) to be up for consideration.
RENEE CHAPMAN, Legislative Aide for Representative Bettye
Davis, explained the resolution.
SENATOR LEMAN commented that as important as social crusades
in the working labor force are, he hoped that in elevating
their importance we didn't overlook the other important
roles women play as mothers. He thought women needed more
recognition for that. He said he intended to move the
resolution when he had a quorum.
Number 76
SENATOR LEMAN announced SB 118 (PERS CREDIT FOR PUBLIC
HEALTH SERVICE OFF) to be up for consideration.
RICK WHITBECK, Legislative Aide for Senator Leman, briefly
commented on SB 118. He said it would allow a vested member
of PERS to receive credit for service with the U.S. Public
Health Service by purchasing up to 5 years of benefits via
retroactive contributions.
ART RONIMUS, Anchorage, said he was a licensed engineer. He
said he was not eligible to contribute to Keogh or IRA plans
while in the military. And the only way he could contribute
to a military plan was to make a 20 year commitment. He
supported this legislation, because it would allow him to
buy up to 5 years of Public Health Service (PHS) time and
credit it to his PERS longevity.
SENATOR LEMAN asked if he was partially or fully vested with
the PHS when he retired. Did he get a cash value or was
there something he could roll over into another retirement
plan. MR. RONIMOUS said the military plan is, if you leave
before 20 years, you receive no benefits.
Number 200
TOM WOLF said he joined the Public Health Service for 6 1/2
years. Subsequently he worked with the Municipality of
Anchorage and became vested in PERS. He wanted the
opportunity to participate in the Service Credit Program
like other officers of the federal government.
DR. MIKE BELLER, Division of Public Health, Department of
Social Services, fully supported this bill which would
provide former commissioned officers the same privileges
with respect to the state retirement system as other
veterans now have. He said it is extremely difficult for
the state of Alaska to attract highly qualified experienced
physicians to work in public health. Their pay is lower
than doctors in private practice or even in other state
agencies. He said he served for 2 years with the Public
Health Service.
Number 293
JIM PATTERSON, former PHS officer, supported SB 118.
STEVE BAINBRIDGE said he was commissioned by the U.S. Public
Health Service in 1972 and would appreciate the opportunity
to buy back 5 years of his public health service time which
will be lost otherwise.
Number 362
BOB STALNAKER, Director, Division of Retirement and
Benefits, said the administration did not support expanding
the systems or expanding credit granted under the systems.
He explained the complications involved with residual
charges for a benefit.
SENATOR LEMAN asked him to explain why this bill would
increase the unfunded liabilities of the PERS by
approximately $30,000. MR. STALNAKER replied that the
$30,000 is the cost of the adverse selection. The actuary
calculates if there are 15 people who have an average of 5
years to claim, this amount of liability would be added to
the system. It is discounted by the amount the person would
have to pay. The $30,000 is the residual cost remaining.
MR. STALNAKER said the average funding level for state plans
is around 75% and we are well funded compared to that - in
the 90% range. The 75% is just for the pension benefit
obligation. He said they want to target up to 100%, not
over, because they do not want to overcharge the employer.
Number 499
SENATOR MILLER asked what the employer contribution was now.
MR. STALNAKER said it was 14.6% from employers and 6.7% from
employees for non-police officers and 8.5% for police
officers.
Number 515
SENATOR LEMAN asked if this legislation would open the door
to people with other claims. MR. STALNAKER said that is an
effect they see quite frequently.
SENATOR MILLER asked if they could claim prior service. MR.
STALNAKER said they could claim prior service only if the
employer participated.
Number 563
STEVE BAINBRIDGE, Anchorage, said he appreciated Mr.
Stalnaker's testimony, but said the key issue here is one of
consistency, because they are recognized under various state
programs currently. He asked for equitable treatment of all
military veterans under the PERS statute.
Number 578
SENATOR MILLER moved to pass SB 118 from committee with
individual recommendations. There were no objections and it
was so ordered.
SENATOR LEMAN announced HCR 11 (WOMEN'S HISTORY MONTH) was
back before the committee.
SENATOR MILLER moved to pass HCR 11 from committee with
individual recommendations. There were no objections and it
was so ordered.
SENATOR LEMAN adjourned the meeting at 9:55 a.m.
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