HB 236-CREDITED PART-TIME SERVICE TRS  MS. PATTI SWENSON, staff to Representative Bunde, sponsor of HB 236, gave the following description of the measure. HB 236 will correct an inequity in the Teachers' Retirement System (TRS). Under the current system, teachers working more than 50 percent of the time but less than full time receive only one-half service credit for time worked. Teachers in this group contribute more retirement dollars and do not receive the same benefit back when they retire. HB 236 will correct this inequity by giving teachers who work more than 50 percent of the time retirement service credit based on time worked. CHAIRMAN MILLER took public testimony. MR. STAN FISCHER, a part-time teacher from Anchorage, stated support for HB 236 because it corrects a fundamental unfairness in credited service in the TRS for part-time teachers. This bill retroactively amends AS 14.25.243 to allow part-time teachers who work more than 50 percent but less than 100 percent to receive credit for teacher retirement service based on actual time worked and actual contributions made rather than the arbitrary statutorily imposed formula of 50 percent. Presently he works 80 percent of the time and pays 8.65 percent of his salary toward retirement, like full-time teachers. The Anchorage School District makes a 12 percent contribution toward his retirement, as it does for full-time employees. State law, however, only permits him to receive a 50 percent retirement credit for his 80 percent service. He does not believe it can be reasonably argued that part-time teachers should forfeit a portion of their salaries. The cumulative effect of this law is not insignificant. He has worked at 80 percent for five years and because of the state law will lose one year of retirement credit. MR. JOHN CYR, President of NEA-Alaska, stated support for HB 236 and thanked the sponsor for his hard work. This bill will correct an inequity in the system. SENATOR WILKEN asked Mr. Cyr to address the argument that this change could be made in the negotiating process. MR. CYR said it cannot. He explained the TRS is statewide so the way teachers pay into that system and draw from that system is not a subject of negotiation. The change must be made in statute. MS. KATHLEEN BRACKEN from Petersburg stated support for HB 236. During three years as a 4/5 time kindergarten teacher, both she and the school district contributed to TRS. Passage of HB 236 will compensate teachers fairly for the time and money they have contributed to the retirement system. She added that inequitable part-time credit is a major issue causing teachers to transfer out of part-time teaching. Young learners and programs suffer when a high turnover rate occurs. Alaska ranks 50th among the states in recruitment for part-time employment. MR. BILL CHURCH, Retirement Supervisor for the Division of Retirement and Benefits, provided the following statistics regarding part-time teachers who participate in TRS. Three percent of the total TRS membership is comprised of part-time employees. Of that three percent, approximately 57 percent work contracts in excess of 50 percent. The Division of Retirement and Benefits believes this bill will have no financial impact on TRS. SENATOR WILKEN asked if Section 2 is the retroactivity clause. MR. CHURCH said that is correct. SENATOR WILKEN asked if the Division estimated the financial impact of Section 2 on TRS. MR. CHURCH replied the Division's actuary was asked to look specifically at past service liability questions when he analyzed the bill. The actuary indicated there were no liability questions so the zero fiscal note takes the retroactivity clause into consideration. SENATOR WILKEN moved HB 236 from committee with individual recommendations and its attached zero fiscal note. There being no objection, CHAIRMAN MILLER noted it was so ordered.