SENATOR RANDY PHILLIPS introduced SB 39 (RETIREMENT CREDITED SERVICE & BENEFITS) as the next order of business. ROXANNE STEWART, staff to Senator Jim Duncan, informed the committee that they were unable to get a fiscal note on the amendment to SB 39 they had proposed the previous week because the Governor's office does not provide fiscal notes on amendments that have not been adopted. She noted that the Division of Retirement & Benefits has provided a letter relating to the effect of the amendment. Number 080 SENATOR RANDY PHILLIPS stated the committee would take testimony over the teleconference network. GARY TODD, Soldotna, a permanent seasonal employee of the Alaska Department of Fish & Game, said there are a lot of people that work during the summer on a number of different jobs, and some of these people have been working for 14 to 16 years. Many of these people are not vested in the retirement system even though they have spent a lot of time working seasonally along side permanent people who have all the benefits. He would like to see these people credited with this time and at a reasonable cost. Number 120 JANET PARKER, Division of Retirement & Benefits, Department of Administration, explained that the actuarial cost would be different for each individual because it is based upon their salary and how much time the individual is buying. SENATOR LEMAN added that while it might seem like a large amount to be paid by an individual, the potential for recovery is excellent. Number 145 JOAN WILKERSON, Juneau, Alaska Public Employees Association, voiced support for SB 39. She said in 1980 the definition of "seasonal" or "temporary" was changed to "nonpermanent." This dealt with an inequity where previously, seasonal employees could not buy into or get credit for the years they had put in. SB 39 would cover people who put in seasonal work in the sixties and seventies. She added that if the same rights were afforded to people from 1980 on, it would seem appropriate to apply them to people who have been loyal and faithful workers to the State of Alaska in the previous two decades. Ms. Wilkerson noted that when the same legislation was before the Legislature two years ago the Division of Retirement & Benefits didn't see it as a cost, and she questioned why there is fiscal note on the current bill that shows a cost. Number 215 SENATOR PHILLIPS asked what conditions changed in two years so that they are now showing a cost to the system. JANET PARKER answered that this Administration decided that they would not present a bill to the Legislature with a zero fiscal note if they truly believe that there wasn't one there. At one point they said that there is no cost because it's all within the retirement system, and they presented the bills that way. This Administration has decided that if there is going to be a cost, no matter how big or small, the bill has to have a fiscal note. Number 250 DR. CLARK DAMON, Juneau, said he would be affected under the public service provision by combining the two retirement programs. He said if he paid the $50,000 which he would be required to pay to be eligible for the program, he would receive $237 a month, plus a $306 health benefit allowance. Projecting his costs out, it would take him 19.5 years to recoup his money. Number 275 SENATOR LEMAN requested that he be provided with calculations for some of these typical people who may choose this, showing how much it will cost and how long it takes to recoup the cost. SENATOR PHILLIPS suggested that the bill would be moving to the State Affairs Committee, which is chaired by Senator Leman, and that information could be provided to his committee. SENATOR RANDY PHILLIPS stated his intent to move SB 39 out of committee without the amendment because it lacks a fiscal note. Number 330 SENATOR ADAMS moved that SB 39 and the accompanying fiscal notes be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.