HB 323 - PERS CREDIT FOR NONCERTIFICATED EMPLOYEES Number 0007 CHAIRMAN ROKEBERG announced the committee's first order of business was HB 323, "An Act relating to the calculation of credited service in the public employees' retirement system for noncertificated employees of school districts, regional educational attendance areas, and state boarding schools; and providing for an effective date." Number 0011 REPRESENTATIVE TOM BRICE made a motion to adopt the proposed committee substitute LS1350\E, Cramer, 4/21/98, as the working draft. There being no objections, that version was before the committee. Number 0014 REPRESENTATIVE BRICE made a motion to move HB 323 from the committee with individual recommendations [and attached fiscal note]. CHAIRMAN ROKEBERG objected for a description of what the committee substitute does. REPRESENTATIVE BRICE noted Section 1 was added. He explained that it would provide direction to the Department of Administration to base the expected increase in cost for this benefit which is to be paid for by the employees who will be receiving the benefit. For about a 40 percent increase in their contribution they will receive a 30-year retirement and a 5-year vestment as opposed to the current 40-year retirement and 7 and 3/4-year vestment. Section 1. AS 39.35.160 is amended by adding a new subsection to read: (c) Beginning July 1, 1998, a noncertificated employee of a state boarding school or of a school district or regional educational attendance area shall pay a contribution surcharge. The amount of the surcharge is the difference between the amount the employer would have had to contribute under AS 39.35.250 - 39.35.290 for the employee when treating the employee's credited service as service earned under AS 39.35.300(c) or 39.35.310(c) less the amount the employer would have had to contribute under AS 39.35.250 - 39.35.290 without treating the employee's credited service as service earned under AS 39.35.300(c) or AS 39.35.310(c). CHAIRMAN ROKEBERG, stated "Let me understand this now, this allows for example a school employee that normally would have to take the summer off to -- his normal contribution of 6.75 percent which he normally pays he would be allowed to pay that and then he also - he would pay the employee that, that is to say would pay the employer match of 6.75. So the employee would pay the entire amount of those months they were not directly employed and reimbursed by the employer, is that correct." REPRESENTATIVE BRICE replied yes. CHAIRMAN ROKEBERG said, so there wouldn't be any negative impact as far as the school districts. REPRESENTATIVE BRICE replied no. Number 0030 REPRESENTATIVE JOE RYAN said, "Okay, this is in the same that the classified employees - the teachers would pay for make (indisc.)," REPRESENTATIVE BRICE responded that their contribution rate would be - they're both roughly around - totally 20 percent. REPRESENTATIVE RYAN commented, "They are making, like the teachers make their contribution agreements (indis.--fading)." Number 0035 CHAIRMAN ROKEBERG withdrew his objection to the motion. He asked if there were further objections. There being none, CSHB 323(L&C) moved from the House Labor and Commerce Standing Committee. The chairman noted for the record that the attached zero fiscal note was a technical oversight of part of the motion made.