State of Alaska
Fiscal Note
Bill Version: SB 55
2021 Legislative Session
Fiscal Note Number: 6
(H) Publish Date: 6/30/2021
Identifier: 0684-VAR-ALL-6-10-21 Department: Various
Title: EMPLOYER CONTRIBUTIONS TO PERS Appropriation: Various
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: All Branches
Requester: Conference Committee OMB Component Number: 0
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2022 Governor's
Appropriation FY2022 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2022 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Personal Services 102,993.7 102,993.7 102,993.7 102,993.7 102,993.7 102,993.7
Services 705.8 705.8 705.8 705.8 705.8 705.8
Capital Outlay
Grants & Benefits
Total Operating 103,699.5 0.0 103,699.5 103,699.5 103,699.5 103,699.5 103,699.5
Fund Source (Operating Only)
1002 Fed Rcpts (Fed) 10,913.0 12,631.3 13,599.7 13,599.7 13,599.7 13,599.7
1178 temp code (UGF) 71,133.0 63,670.8 56,800.5 56,800.5 56,800.5 56,800.5
1251 Non-UGF (Other) 17,773.9 22,411.7 27,068.2 27,068.2 27,068.2 27,068.2
1252 DGF Temp (DGF) 3,879.6 4,985.7 6,231.1 6,231.1 6,231.1 6,231.1
Total 103,699.5 0.0 103,699.5 103,699.5 103,699.5 103,699.5 103,699.5
Change in Revenues
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2021) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2022) 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)
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Updated for Confererence Committee budget changes from Governor's request. Increase $276.0 all funds, decrease $749.9 federal
funds, increase $1,025.9 unrestricted general funds (UGF). Net UGF savings for all fiscal notes reduced by $1,025.9 from $25.7 million
to $24.7 million.
APPrepared By: ED BY Committee
Conference Date: 06/10/2021
Printed 6/30/2021 Page 1 of 3 Control Code: KWrhZ
SB 55 - Fiscal Note 6
This legislation removes the 22 percent cap on the payroll contribution to the Public Employee Retirement System (PERS)
for the State of Alaska as a PERS employer. All other PERS and TRS employers' rates will remain capped at 22 percent of
payroll. The contribution cap, which is lower than the annual actuarial rate for the retirement system's normal and past
service costs, was implemented to reduce the cost burden on PERS employers. The difference between the 22 percent
and the full cost is subsidized by an unrestricted general fund annual payment to the retirement system known as the
state assistance payment or "onbehalf" payment.
The Alaska Retirement Management Board approved an actuarially determined contribution rate for fiscal year 2022 for
PERS employers of 30.11 percent. Under AS 39.35.280, the state is obligated to make up the difference between the
statutory employer contribution rate of 22 percent and the actuarial rate of 30.11 percent, calculated to be $193.5
million. This legislation would direct the state to apply the 30.11 percent actuarial rate to agency payroll rather than
contributing that difference through the state assistance payment. The net impact to the state's overall contribution to
the retirement system would be unchanged.
This legislation only impacts the State of Alaska as a PERS employer, and excludes the University of Alaska, municipalities
and school districts, the Alaska Housing Finance Corporation, and the Alaska Gasline Development Corporation.
The budgetary impact of this legislation will be reflected as a shift from the direct appropriation to the public employee
retirement system, which is typically funded with unrestricted general funds (UGF), to agency payroll, where the cost can
be spread across all fund sources. This legislation continues to provide for the full actuarial contribution to the retirement
system while changing the financing structure in the state budget.
Page one of this fiscal note reflects the estimated $103,699.5, all fund sources, increase to State of Alaska executive,
legislative and judicial branch payroll in fiscal year 2022, $71,133.0 of which will be UGF.
An accompanying fiscal note for retirement system payments reflects the $95,794.5 reduction in UGF.
Combined UGF savings total $24,661.5 in fiscal year 2022. UGF savings are expected to increase in fiscal years 2023 and
beyond as ratesetting agencies have time to adjust rates based on actual costs and grant awards can be renegotiated,
reducing the need for UGF offsets. The fiscal impact for fiscal years 2023 through 2027 assumes no changes in agency
payroll or the actuarially determined rate of 30.11 percent.
The summary table on the following page reflects the net fiscal impact of this financing change for fiscal year 2022
inclusive of all fiscal notes.
(Revised 8/20/20 OMB/LFD) Page 2 of 3
0684-VAR-ALL-6-10-21 Page 2 of 3 Control Code: KWrhZ
SB 55 - Fiscal Note 6
FY2022 SB55 Budget Impact
Note: Standard methodological differences between actuarial and budgeted payroll projections result in a difference
between the state's estimated share of the state assistance payment and the budgetary impact of the change from 22%
to 30.11% of payroll.
(Revised 8/20/20 OMB/LFD) Page 3 of 3
0684-VAR-ALL-6-10-21 Page 3 of 3 Control Code: KWrhZ

Statutes affected:
SB0055A, AM SB 55, introduced 01/25/2021, passed House 05/17/2021, passed Senate 05/10/2021: 39.35.255, 39.35.520, 39.30.370, 39.35.750, 37.10.220
SB0055Z, AM Enrolled SB 55, introduced 05/17/2021: 39.35.255, 39.35.520, 39.30.370, 39.35.750, 37.10.220
SB0055A, AM SB 55, introduced 01/25/2021: 39.35.255, 39.35.520, 39.30.370, 39.35.750, 37.10.220