Bill Summary – FastDemocracy

State of Alaska
                                                             Fiscal Note
                                                                                                Bill Version:                     HB 22
 2023 Legislative Session
                                                                                                Fiscal Note Number:               2
                                                                                                (H) Publish Date:                 2/15/2023
 Identifier:        HB022-DOA-DRB-1-27-23                                         Department:       Department of Administration
 Title:             PEACE OFFICER/FIREFIGHTER RETIRE                              Appropriation: Centralized Administrative Services
                    BENEFITS                                                      Allocation:       Retirement and Benefits
 Sponsor:           JOSEPHSON                                                     OMB Component Number:                64
 Requester: H(CRA)
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                   (Thousands of Dollars)
                                                 Included in
                                    FY2024       Governor's
                                Appropriation      FY2024                                              Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2024        FY 2024       FY 2025                        FY 2026             FY 2027           FY 2028         FY 2029
 Personal Services                       478.1                        478.1                         220.6               220.6             220.6           220.6
 Travel                                   16.0                         16.0                           16.0                16.0              16.0           16.0
 Services                                671.6                         40.1                           40.1                40.1              40.1           40.1
 Commodities                              30.0                          2.0                            1.0                 1.0               1.0             1.0
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                       1,195.7            0.0         536.2                          277.7              277.7             277.7             277.7
 Fund Source (Operating Only)
 1029 PERS Trust (Other)                     1,195.7                              536.2              277.7              277.7             277.7             277.7
 Total                                       1,195.7               0.0            536.2              277.7              277.7             277.7             277.7
 Positions
 Full-time                                        2.0
 Part-time
 Temporary                                        2.0                                                 (2.0)
 Change in Revenues
 None
 Total                                            0.0              0.0                 0.0              0.0                 0.0              0.0               0.0
 Estimated SUPPLEMENTAL (FY2023) cost:                                      0.0              (separate supplemental appropriation required)
 Estimated CAPITAL (FY2024) cost:                                           0.0              (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                   Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                   TBD
 Why this fiscal note differs from previous version/comments:
 Revised to include updated costs of programming changes to computer systems to include a new defined benefit tier.
 Prepared By:             Ajay Desai                                                                                    Phone:        (907)465-4471
 Division:                Retirement & Benefits                                                                         Date:         01/27/2023 12:00 PM
 Approved By:             Leslie Isaacs, Administrative Services Director                                               Date:         02/03/2023
 Agency:                  Department of Administration
Printed 2/14/2023                                                        Page 1 of 2                                                           Control Code: tjNfp
                                                                                                                         HB 22 - Fiscal Note 2
                                                   FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                     BILL NO. HB 22
2023 LEGISLATIVE SESSION
Analysis
   This fiscal note details the anticipated operational fiscal impacts associated with this bill. The Division of Retirement and
   Benefits (DRB) anticipates fiscal impact to Public Employees' Retirement System (PERS) trust, however that impact is
   discussed in a separate fiscal note.
   This bill proposes to open the Public Employees' Retirement System (PERS) Benefit Plan by adding a new benefit tier for
   peace officers and firefighters. New employees will be enrolled into the defined benefit plan and existing PERS P/F DCR
   members will be allowed an opportunity to convert to the new defined benefit tier.
   DRB will require two non‐permanent employees, an Accountant III and a Publications Specialist III (personal services) plus
   computer, phone, cubicle, supplies (commodities) for the first two fiscal years to complete the preparation work to account
   for the participant contributions and produce new program literature and forms. DRB will also require two permanent
   employees, a Retirement and Benefits Specialist II and a Retirement and Benefits Technician II (personal services) plus
   computer, phone, cubicle, supplies (commodities) to provide member counseling support and to process required
   documents.
   The Division will incur costs related to contracted actuarial consultants to support establishment of the new tier and to
   advise on ongoing management activities, support from the Department of Law for legal and regulatory review, and will
   need to reprogram its computer systems, program a plan comparison tool for employees and print/post online the
   necessary documents and election forms for the inception of the new tiers as well as update existing publications (services).
   These costs are anticipated to largely accrue when the program is first established, however some consulting and legal
   support services will be ongoing.
   Education to employers will be required to properly electronically report service and salaries of new employees and
   existing employees of the PERS DCR Plan that elect to convert. Education to employees will be required for PERS DCR
   employees to make an informed decision during the election period and for new members of the new tier which will
   require travel to employer worksites (travel).
   The Department would need to update regulations as a result of the passage of this bill. The timing of these regulations
   would be determined by the effective date of the bill.
(Revised 08/26/2022 OMB/LFD)                                                                                           Page 2 of 2
HB022-DOA-DRB-1-27-23                                              Page 2 of 2                                                     Control Code: tjNfp
Statutes affected: 
HB0022A, AM HB 22, introduced 01/09/2023: 37.10.220, 37.10.210, 37.10.390, 14.25.340, 14.25.350, 39.30.150, 39.30.180, 39.35.730, 39.35.750, 39.45.010, 39.45.060, 14.25.145, 39.35.100, 39.30.300, 39.30.495, 39.35.160, 14.25.009, 14.25.220, 39.35.095, 39.35.680, 39.35.255, 39.35.475, 37.10.310, 40.25.110, 40.25.120, 39.30.090, 14.25.168, 14.25.480, 22.25.090, 39.35.535, 39.35.537, 39.35.880, 39.37.145, 23.15.136, 39.30.091, 21.86.310, 14.25.110, 23.15.010, 23.15.210, 39.30.097, U.S.C, 14.25.310, 14.25.590, 39.35.700, 39.35.990, 39.30.380, 14.25.470, 39.35.870, 39.30.390, 39.30.400, 39.35.520, 39.30.370, 39.35.150, 39.35.282, 39.35.280, 39.30.340, 39.35.370, 39.35.450, 39.35.381, 39.35.400, 39.35.440, 39.35.485, 39.35.480, 39.35.360, 39.30.095, 39.35.300, 39.35.310, 39.35.385, 39.35.720, 39.35.115, 39.35.678, 39.35.710, 39.35.895, 39.35.003