PSEA.net: Newsletters & Reports

The Rap Sheet –

Week of March 28, 2008

HB 193 by Representative Bob Roses adds two rank and file officers to the Police Standards Council is scheduled for hearing before Senate State Affairs on Tuesday, April 3 at 9 a.m. On March 17 the bill passed the House 34-3. Representative Roses worked with the Senate leadership in guiding the bill to only one committee of referral in the Senate. Representative Roses and his staff have done an excellent job in moving this bill to this level of consideration after the organized opposition developed against the bill from the APSC, chiefs of police and the Commissioner’s office. HB 193 is a legislative priority of PSEA.

The Senate Judiciary Committee heard testimony on SB 183 on Wednesday. On March 19 the bill passed the Senate State Affairs Committee. Rob Cox testified in support of SB 183 before State Affairs.

At Wednesday’s meeting Jim Duncan presented testimony on behalf of the labor retirement coalition. Three members of the Judiciary Committee were present -Senators Hollis French, Bill Wielechowski and Gene Therriault -- to listen to testimony.

Pat Sheir, Director of the Retirement and Benefits Division, was present and testified against the bill on behalf of the administration. His opposition focused on the unfunded retirement liability the bill would create.

Senator Wielechowski probed Sheir about the adverse impact a poor retirement plan (Tier IV) was having on efforts to recruit new state employees. The Senator questioned Sheir about plans to improve the state's ability to recruit through use of the retirement benefit plan. Sheir indicated he had no response, since the decision to change benefits rested with the Governor.

During testimony it was pointed out that public safety experienced a 40% turnover.

Several new employees testified to the adverse impact Tier IV was having on them, saying that if a defined benefit program was not restored for them they would likely leave the state for better benefits.

Pat Luby with AARP testified for SB 183. He emphasized that with people living longer many would outlive a defined contribution system. Larry Weiss, a consultant from Anchorage emphasized how insufficient the health benefit of the defined contribution plan was since in law the current Tier IV health plan can be amended or terminated at any time. Jeff Briggs with fire fighters testified in support of SB 183.

SB 125 provides for PERS/TRS cost share for school districts and municipalities. The legislation allows school districts to pay a rate of 12.56% for TRS employees and school districts and municipalities to pay 22% for PERS employees. Everyone pays the same rate under the plan and the state of Alaska picks up any excess in past service costs for the retirement system. The conference committee has submitted its report to the Governor.

Resolving the PERS/TRS liability is important if necessary benefit changes are to be given serious consideration in the future.

Legislation to provide medical benefits at retirement for those who purchase military time still rests in the Senate State Affairs Committee. Members of the Senate State Affairs Committee need to be contacted and encouraged to take up SB 153 and move it to the Senate Finance Committee. In February, SB 153 passed the Senate Labor and Commerce Committee. It was heard and held by the Affairs Committee earlier in March. Those opposing the bill indicate it adds to the system’s unfunded liability, even though the amortized cost is approximately $300,000 per year. The administration has taken a position of nonsupport to legislation designed to provide improved benefits for workers.