Legislature(2017 - 2018)

2018-01-24 House Journal

Full Journal pdf

2018-01-24                     House Journal                      Page 2242
HB 306                                                                                                                        
HOUSE BILL NO. 306 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         

2018-01-24                     House Journal                      Page 2243
     "An Act relating to disbursement options under the Public                                                                  
     Employees' Retirement System of Alaska and the Teachers'                                                                   
     Retirement System of Alaska for participants in the defined                                                                
     contribution plan; and providing for an effective date."                                                                   
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
The following fiscal note(s) apply:                                                                                             
1. Zero, Dept. of Administration                                                                                                
The Governor's transmittal letter dated January 23 follows:                                                                     
"Dear Speaker Edgmon:                                                                                                           
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to disbursement options                                                         
for the defined contribution retirement plans.                                                                                  
In 2005, the state established a defined contribution retirement plan for                                                       
certain employees of the State, political subdivision, or public                                                                
organization of the State. The plan applies to qualified members of the                                                         
public employees' retirement system (AS 39.35), and the teachers'                                                               
retirement system (AS 14.25) hired after July 1, 2006. Each plan                                                                
includes provisions for membership, participation, contributions by                                                             
members and employers, and distribution of a participant's share.                                                               
Currently, the law places statutory restrictions on the forms of                                                                
distribution. Unfortunately, for plan participants, the statutory options                                                       
have proven to be inflexible and serve to limit plan participant options.                                                       
The Division of Retirement and Benefits has found through surveys                                                               
that plan participants desire further options, including an option for a                                                        
guaranteed lifetime income product. To meet this need, the                                                                      
Department of Revenue (DOR) and the Department of Administration                                                                
(DOA) are considering available options and will make those                                                                     
recommended options available for consideration bythe Alaska                                                                    
Retirement Management Board in the spring of 2018.                                                                              

2018-01-24                     House Journal                      Page 2244
This bill would provide DOA with the ability to put plan options in                                                             
regulation. Through the regulation process, DOA would have more                                                                 
flexibility to respond to participant needs. This will result in better                                                         
options for participants, enhance the desirability of public service as a                                                       
career, and provide a more stable financial future for plan participants.                                                       
I urge your prompt and favorable action on this measure.                                                                        
Bill Walker