HB 42: RETIREMENT INCENTIVE PROGRAM Number 515 CHAIRMAN VEZEY discussed the evaluation. He then opened discussion on HB 42 which also related to retirement incentive programs. BARRY HAIGHT testified on behalf of Public Safety employees in support of HB 42. Number 565 REPRESENTATIVE JERRY SANDERS discussed the penalty for those who retire and then return to work. Number 581 BOB STALNAKER, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, discussed questions regarding how the program was administered. Number 590 REPRESENTATIVE VEZEY asked questions regarding the costs of administering the program. Number 593 MR. STALNAKER described the administration costs to the retiring person. Number 602 CHAIRMAN VEZEY discussed the liabilities of the pension fund being paid out of the general fund. Number 619 MR. STALNAKER discussed how the system received monies from the participating employee. Number 628 CHAIRMAN VEZEY stated the fiscal note did not address the obligation to the pension fund. Number 640 REPRESENTATIVE SANDERS discussed exceptions to legislative and university employees. Number 642 MR. STALNAKER explained that the difficulty in getting certain employees in certain positions could be the reason for the exemption. Number 664 REPRESENTATIVE SANDERS asked if there were certain people we did not want to attract back. Number 668 MR. STALNAKER stated he could not answer Representative Sanders' query because he was not the author of HB 42. Number 677 REPRESENTATIVE FRAN ULMER discussed the Budget and Audit savings statement in the committee packet. Number 685 MR. STALNAKER stated employers were allowed to make a determination on participation. They reported the anticipated savings before they decided to participate, he said. Number 698 CHAIRMAN VEZEY clarified it was not the responsibility of the department to review the report. "You just trust if they say they will save money that it is enough to participate in the retirement program," he said. TAPE 93-7, SIDE B Number 000 MR. STALNAKER stated the calculations done by employers were not audited. HB 42 and HB 36: RETIREMENT INCENTIVE PROGRAM Number 596 WILLIE ANDERSON, a lobbyist for the National Education Association, spoke in support of HB 36 and HB 42. Number 626 CHAIRMAN VEZEY invited Representative Bill Hudson to speak on behalf of HB 42. Number 630 REPRESENTATIVE BILL HUDSON, PRIME SPONSOR of HB 42, stated the purpose of HB 42 was to save public dollars. The retirement incentive program was a tool to save the state money, he added. TAPE 93-8, SIDE A Number 000 CHAIRMAN VEZEY invited Senator Jim Duncan to speak on behalf of the retirement incentive program. Number 110 SENATOR JIM DUNCAN related the history of the retirement program. He explained the cost savings to the state. ANNOUNCEMENTS Number 296 CHAIRMAN VEZEY announced HB 36 and HB 42 would be held in committee for further consideration. ADJOURNMENT CHAIRMAN VEZEY then adjourned the meeting at 10:03 a.m.