SB 159-PERS/TERS DISTRIBUTIONS  3:31:49 PM CHAIR MEYER announced the consideration of Senate Bill 159 (SB 159). 3:32:49 PM KATHY LEA, Chief Pension Officer, Division of Retirement and Benefits, Alaska Department of Administration, Juneau, Alaska, announced her availability to answer questions regarding SB 159. SENATOR GIESSEL asked if SB 159 will have any affect on the state's unfunded pension liability that continues to grow. MS. LEA answered no. She specified that the bill deals with moving the distribution options that are available to participants at termination from statute into regulation so that the plan can have better flexibility in offering changing options. She added that the cost of any of the distribution options is borne by the participant. 3:34:12 PM SENATOR GIESSEL referenced the bill's fiscal note and noted reference to authorizing a lump-sum payment of the entire balance or a periodic payment option. She inquired if the lump- sum payment would have a negative impact on the unfunded liability. MS. LEA explained that the plan is a defined-contribution provision so there is no tie to the unfunded liability. She explained that the lump sum is the participant's account that contains their contribution and the employer's contribution made on their behalf. SENATOR COGHILL commented that he appreciated Ms. Lea's response because he believed that distribution methods can change from one generation to another. He asked if Ms. Lea could identify the "flex points" in the plan that were immediately needed. MS. LEA replied that there are no plans in changing the existing options; however, the Alaska Retirement Management (ARM) Board as well as the Department of Revenue-Treasury Division and the Division of Retirement have identified a need for more robust spend-down options for participants. She disclosed that the division has reviewed eight presentations on different spend- down options and disclosed that they did not fit into the current definitions. 3:36:54 PM CHAIR MEYER opened and closed public testimony. He summarized that the bill will provide the division with more flexibility without having to wait for the Legislature to come into session each time a change is needed. SENATOR COGHILL disclosed that he was in Tier IV and noted he appreciated the plan's flexibility. CHAIR MEYER pointed out that the bill has a zero fiscal note. 3:37:53 PM SENATOR GIESSEL moved to report SB 159, version 30-GS2815\A from committee with individual recommendations and attached zero fiscal note. 3:38:06 PM CHAIR MEYER announced that there being no objection, the motion carried.