CSSB 125(FIN)                                                                                                                   
     "An  Act  relating  to  the  accounting  and  payment  of                                                                  
     contributions  under the retirement  plans of  the Public                                                                  
     Employees'   Retirement   System   of  Alaska   and   the                                                                  
     Teachers'   Retirement   System,   to   calculations   of                                                                  
     contributions  under   those  retirement  plans,  and  to                                                                  
     participation  in, and termination  of and amendments  to                                                                  
     participation  in,  the defined  benefit  plans of  those                                                                  
     systems;  relating  to  employer   contributions  to  the                                                                  
     health    reimbursement    arrangement    plan;    making                                                                  
     conforming  amendments;  and providing  for an  effective                                                                  
     date."                                                                                                                     
                                                                                                                                
And                                                                                                                             
                                                                                                                                
HCS CSSB 125(FIN)                                                                                                               
     "An  Act  relating  to  the  accounting  and  payment  of                                                                  
     contributions  under the retirement  plans of  the Public                                                                  
     Employees'   Retirement   System   of  Alaska   and   the                                                                  
     Teachers'   Retirement   System,   to   calculations   of                                                                  
     contributions  under   those  retirement  plans,  and  to                                                                  
     participation  in, and termination  of and amendments  to                                                                  
     participation  in,  the defined  benefit  plans of  those                                                                  
     systems; relating  to recovery of an award  of damages or                                                                  
     other  recovery by  those systems;  relating to  employer                                                                  
     contributions  to  the health  reimbursement  arrangement                                                                  
     plan;   relating   to   participation   in   the   public                                                                  
     employees'  defined contribution plan by  certain elected                                                                  
     officials;  making conforming  amendments; and  providing                                                                  
     for an effective date."                                                                                                    
                                                                                                                                
Co-Chair Hoffman  noted that the  two versions of SB  125 were                                                                  
before the Committee.   He observed that that  there were some                                                                  
minor  changes that  could  be made  under  limited powers  of                                                                  
free conference,  but he  recommended that  a Free  Conference                                                                  
Committee  make  these  changes   in  order  to  expedite  the                                                                  
passage of SB 125.                                                                                                              
                                                                                                                                
8:07:48 AM                                                                                                                    
ANNETTE     KREITZER,     COMMISSIONER,      DEPARTMENT     OF                                                                  
ADMINISTRATION,   explained   that   the  SB   123   technical                                                                  
amendments were  passed.  Sections  from SB 123 were  inserted                                                                  
into SB 125:                                                                                                                    
                                                                                                                                
   · Substantive Changes Requiring Powers of Free                                                                               
     Conference:                                                                                                                
                                                                                                                                
   · Removing all references to SB 123 which become law June                                                                    
     7, 2007                                                                                                                    
          Both  bills made  adjustments  to retirement  system                                                                  
          statutes  and were  traveling in  tandem last  year.                                                                  
          Since  SB   123  become  law  and  SB   125  didn't,                                                                  
          contingent   references  to   SB  123  need   to  be                                                                  
          removed.                                                                                                              
                                                                                                                                
   · Updated Effective Date Clauses as a result of one year                                                                     
     delay                                                                                                                      
                                                                                                                                
   · Remove "Catch up" provision dealing with elected                                                                           
     officials participating in the PERS Defined Benefit                                                                        
     Plan. This provision is no longer necessary.                                                                               
                                                                                                                                
   · Due to one-year delay, must reconfigure contribution                                                                       
     rate percentages for employers in the "Hold Harmless"                                                                      
     category (current actuary rates below 22%) and the                                                                         
     "Heroes" category (contributed excess amounts into the                                                                     
     unfunded liability during 2005-2007) lists, based on                                                                       
     the latest actuary report (June 30, 2006 data) and                                                                         
     current FY07 payroll data.                                                                                                 
                                                                                                                                
   · Restate employers' salary base floor from FY07 to FY08                                                                     
                                                                                                                                
   · Restate fiscal year effective dates.                                                                                       
                                                                                                                                
8:09:37 AM                                                                                                                    
Co-Chair  Hoffman related  that it  was his  belief that  this                                                                  
committee cannot reach  agreement on the provisions of SB 125,                                                                  
without  limited  powers of  free  conference.   Therefore,  I                                                                  
would  like  to entertain  a  motion  that we  sign  a  letter                                                                  
addressed to the  Speaker of the House of Representatives  and                                                                  
the President  of the  Senate requesting  that  the Conference                                                                  
Committee  on  SB 125  be  discharged  and a  free  conference                                                                  
committee be appointed.                                                                                                         
                                                                                                                                
Senator  Huggins MOVED  to  ADOPT a  letter  addressed to  the                                                                  
Speaker of the  House of Representatives and the  President of                                                                  
the  Senate requesting  that the  Conference  Committee on  SB                                                                  
125  be  discharged   and  a  free  conference   committee  be                                                                  
appointed.                                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
8:10:04 AM                                                                                                                    
Senator  Bunde questioned  how  action on  pension  obligation                                                                  
bonds would  affect SB 125.  Ms.  Kreitzer did not  think they                                                                  
would affect SB 125.                                                                                                            
                                                                                                                                
                                                                                                                                
8:11:07 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT