00 CS FOR SENATE BILL NO. 232(FIN) 01 "An Act relating to federal tax requirements for and other provisions of the teachers' 02 retirement system, the public employees' retirement system, and the judicial retirement 03 system; removing village public safety officers from the public employees' retirement 04 system; eliminating the public employees' retirement system conditional duty to refund 05 contributions under $1,000 to inactive employees; limiting service credit for village 06 public safety officer service in the public employees' retirement system to five years; and 07 providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 PURPOSE. The purpose of this Act is to 12 (1) ensure that the teachers' retirement system, the public employees' 13 retirement system, and the judicial retirement system continue to meet governmental plan 01 qualifications set by the Internal Revenue Service so that those plans may qualify for 02 favorable federal tax treatment; and 03 (2) implement changes in those retirement systems so that members can take 04 advantage of changes in federal tax laws and better plan their retirement. 05  * Sec. 2. AS 14.25.010(b) is amended by adding a new subsection to read: 06 (c) An amendment to this chapter does not provide a person with a vested 07 right to a benefit if the Internal Revenue Service determines that the amendment will 08 result in disqualification of the plan under the Internal Revenue Code. 09  * Sec. 3. AS 14.25.050(a) is amended to read: 10 (a) Except as provided in (c) of this section, beginning January 1, 1991, each 11 member [TEACHER] shall contribute to the system an amount equal to 8.65 percent 12 of the member's [TEACHER'S] base salary accrued from July 1 to the following 13 June 30. The employer shall deduct the contribution from the member's 14 [TEACHER'S] salary at the end of each payroll period, and the contribution shall be  15 credited by the system to the member contribution account. The contributions 16 shall be deducted from employee compensation before the computation of applicable 17 federal taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). 18 A member may not have the option of making the payroll deduction directly in cash 19 instead of having the contribution picked up by the employer. 20  * Sec. 4. AS 14.25.060(a) is amended to read: 21 (a) If a member first joined the system [SERVICE] before July 1, 1990, and 22 has military service or Alaska Bureau of Indian Affairs (BIA) service, or if a member 23 joined the system before July 1, 1978, and has creditable outside service, the member  24 may claim this service. If the member claims the service, the member is indebted 25 to the system as follows: 26 (1) at [AT] the time of first becoming a member of the system, the 27 arrearage indebtedness is seven percent of the base salary multiplied by the total 28 number of years of creditable outside, military, and Alaska BIA service; the [. THE] 29 administrator shall add compound interest at the rate prescribed by regulation to the 30 arrearage indebtedness beginning July 1, 1963, or at the time the member first 31 becomes eligible to claim the service, whichever is later, to the date of payment or the 01 date of retirement, whichever occurs first; [.] 02 (2) if [IF] a member terminates from the system and is subsequently 03 reemployed as a member, the arrearage indebtedness to the system for outside, 04 military, or Alaska BIA service accumulated in the interim is seven percent of the base 05 salary upon reentering membership service, multiplied by the number of years of 06 interim outside, military, and Alaska BIA service; compound [. COMPOUND] 07 interest at the rate prescribed by regulation shall be added to the arrearage 08 indebtedness beginning July 1, 1963, or the date of reemployment as a member, 09 whichever is later, to the date of payment or the date of retirement, whichever occurs 10 first. 11  * Sec. 5. AS 14.25.062 is amended to read: 12 Sec. 14.25.062. Reinstatement indebtedness. A member [TEACHER] who 13 has received a refund of contributions in accordance with AS 14.25.150 forfeits  14 corresponding credited service under this chapter. A member may elect to  15 reinstate credited service associated with the refund by repaying the total amount  16 of the refund. If an election is made under this section, an indebtedness [IS 17 INDEBTED] to the system in the amount of the total refund shall be established. 18 Compound interest at the rate prescribed by regulation shall be added to the 19 reinstatement indebtedness from the date of the refund to the date of repayment or the 20 date of retirement, whichever occurs first. 21  * Sec. 6. AS 14.25.070 is amended to read:  22 Sec. 14.25.070. Contributions by employer. An employer shall contribute to 23 the system an amount equal to the percentage, as certified by the administrator, of the 24 sum total of the base salaries of all members [TEACHERS] that is required in 25 addition to member [TEACHER] contributions to provide the benefits of this chapter 26 times the sum total of the base salaries paid to members [TEACHERS], including any 27 adjustments to contributions required by AS 14.25.173(a), by the employer. 28  * Sec. 7. AS 14.25.075(a) is amended to read: 29 (a) An employee who is eligible to purchase credited service under 30 AS 14.25.047 or 14.25.048, a member who is eligible to purchase credited service 31 under AS 14.25.048, 14.25.050, 14.25.060 [AS 14.25.060], 14.25.061, 14.25.062, 01 [OR] 14.25.100, or 14.25.107, or a teacher who is eligible to purchase credited service 02 under AS 14.20.345, AS 14.25.050, 14.25.062, or 14.25.105 [IS A MEMBER FOR 03 PURPOSES OF THIS SECTION. A MEMBER], in lieu of making payments directly 04 to the system, may elect to have the member's employer make payments as provided 05 in this section. 06  * Sec. 8. AS 14.25.075(b) is amended to read: 07 (b) A member may elect to have the employer make payments for all or any 08 portion of the amounts payable for the member's purchase of credited service through 09 a salary reduction program as follows: 10 (1) the amounts paid under a salary reduction program are in lieu of 11 contributions by the member making the election; the electing member's salary or 12 other compensation shall be reduced by the amount paid by the employer under this 13 subsection [SECTION]; 14 (2) the member shall make an irrevocable election under this 15 subsection [SECTION] to purchase credited service as permitted in AS 14.20.345, 16 AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, AS 14.25.062, 14.25.100, 17 [OR] 14.25.105, or 14.25.107 before the member's termination of employment; the 18 irrevocable election must specify the number of payroll periods that deductions will 19 be made from the member's compensation and the dollar amount of deductions for 20 each payroll period during the specified number of payroll periods; the deductions  21 made under this paragraph cease upon the earlier of the member's termination  22 of employment with the employer or the member's death; amounts paid by an  23 employer under (f) of this section may not be applied toward the payment of the  24 dollar amount of the deductions representing the portion of the credited service  25 that is being purchased by the member through payroll deduction in accordance  26 with the member's irrevocable election under this paragraph; 27 (3) [A MEMBER WHO MAKES AN ELECTION UNDER THIS 28 SECTION TO HAVE THE EMPLOYER MAKE PAYMENTS FOR LESS THAN 29 ALL OF THE AMOUNTS PAYABLE FOR THE MEMBER'S PURCHASE OF 30 CREDITED SERVICE MAY SUBSEQUENTLY ELECT TO HAVE THE 31 EMPLOYER MAKE PAYMENTS FOR ALL OR ANY PORTION OF THE 01 REMAINING AMOUNTS PAYABLE FOR THE MEMBER'S PURCHASE OF 02 CREDITED SERVICE; 03 (4)] amounts paid by an employer under this subsection [SECTION] 04 shall be treated as employer contributions for the purpose of determining tax treatment 05 under 26 U.S.C. (Internal Revenue Code); the amounts paid by the employer under 06 this section may not be included in the member's gross income for income tax 07 purposes until those amounts are distributed by refund or retirement benefit payments. 08 * Sec. 9. AS 14.25.075(f) is amended to read: 09 (f) The [TO THE EXTENT THAT A PAYMENT UNDER THIS SECTION 10 DOES NOT ALTER, AMEND, OR REVOKE ANY ONE OR MORE CURRENTLY 11 EFFECTIVE ELECTIONS MADE BY THE EMPLOYEE, THE] board may accept 12 rollover [EMPLOYEE] contributions from a member, and direct transfers as  13 described in the subsection, for the purchase, in whole or in part, of forfeited  14 credited service under this section for the reinstatement, in whole or in part, of  15 forfeited credited service under AS 14.25.062. Contributions made under this  16 subsection may not be applied to purchase service being paid under (b) of this  17 section. A rollover contribution or transfer as described in this subsection [, 18 WHICH] shall [ALSO] be treated as employer contributions for the purpose of 19 determining tax treatment under the Internal Revenue Code and may be made [, FOR 20 THE PAYMENT FOR CREDITED SERVICE PURCHASES MADE UNDER THIS 21 SECTION IN WHOLE OR IN PART,] by any one or a combination of the following 22 methods: 23 (1) subject to the limitations prescribed in [26 U.S.C. 401(a)(3) AND] 24 26 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more 25 retirement programs of another employer that are qualified under 26 U.S.C. 401(a) or 26 accepting rollovers directly from a member [AN EMPLOYEE]; 27 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 28 accepting from a member [AN EMPLOYEE] conduit rollover contributions that are 29 received by the member [EMPLOYEE] from one or more conduit rollover individual 30 retirement accounts previously established by the member [EMPLOYEE]; 31 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 01 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 02 member [EMPLOYEE], on or [AND] after January 1, 2002, from a tax sheltered 03 annuity described in 26 U.S.C. 403(b); 04 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 05 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 06 member [EMPLOYEE], on or [AND] after January 1, 2002, from an eligible deferred 07 compensation plan of a tax-exempt organization or a state or local government 08 described in 26 U.S.C. 457(b); 09 (5) accepting direct trustee-to-trustee transfer from an account 10 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 11 Supplemental Annuity Plan). 12  * Sec. 10. AS 14.25.075(i) is amended to read: 13 (i) On satisfaction of the eligibility requirements of AS 14.20.345, 14 AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.062, 14.25.100, 15 [OR] 14.25.105, or 14.25.107, the requirements of this section, and the administrative 16 filing requirements specified by the board, the system shall adjust the member's 17 credited service history and add any additional service credits acquired. 18  * Sec. 11. AS 14.25.110(k) is amended to read: 19 (k) For system fiscal years beginning after December 31, 1975, and  20 notwithstanding [NOTWITHSTANDING] any other provision of this chapter, the 21 projected annual benefit provided by this chapter and the benefit from all other defined 22 benefit plans required to be aggregated with the benefits from this system under the 23 provisions of 26 U.S.C. 415 may not increase to an amount in excess of the amount 24 permitted under 26 U.S.C. 415 at any time. In the event that any projected annual 25 benefit of a member exceeds the limitation of 26 U.S.C. 415 for a limitation year, the 26 system shall take any necessary remedial action to correct an excess accrued annual 27 benefit. The provisions of 26 U.S.C. 415, and the regulations adopted under that 28 statute, as applied to qualified defined benefit plans of governmental employers are 29 incorporated as part of the terms and conditions of the system. This subsection applies 30 to any member of this system. 31  * Sec. 12. AS 14.25.165(h) is amended to read: 01 (h) Unless otherwise specified, the provisions of this section apply to calendar 02 years beginning on or after January 1, 1983 [1989]. 03  * Sec. 13. AS 14.25.220(2) is amended to read: 04 (2) "actuarial adjustment" means the adjustment necessary to obtain 05 equality in value of the aggregate expected payments under two different forms of 06 pension payments, considering expected mortality and interest earnings on the basis of 07 assumptions, factors, and methods specified in regulations issued under the  08 system that are formally adopted under AS 14.25.022 by the board and that  09 clearly preclude employer discretion in the determination of the amount of any  10 member's benefit [TABLES REFERRED TO IN THE INFORMATION 11 HANDBOOK PUBLISHED UNDER AS 14.25.030(5)]; 12  * Sec. 14. AS 14.25.220(42) is amended to read: 13 (42) "teacher" and [OR] "member" are used interchangeably under  14 this chapter and mean [MEANS] a person eligible to participate in the system and 15 who is covered by the system, limited to 16 (A) a certificated full-time or part-time elementary or 17 secondary teacher, a certificated school nurse, or a certificated person in a 18 position requiring a teaching certificate as a condition of employment in a 19 public school of the state, the Department of Education and Early 20 Development, or the Department of Labor and Workforce Development; 21 (B) a full-time or part-time teacher of the University of Alaska 22 or a person occupying a full-time administrative position at the University of 23 Alaska that requires academic standing; the approval of the administrator must 24 be obtained before an administrative position qualifies for membership in the 25 system; however, a teacher or administrative person at the university who is 26 participating in the optional university retirement program under AS 14.40.661 27 - 14.40.799 is not a member under this system; 28 (C) a state legislator who elects membership under 29 AS 14.25.040(b); 30  * Sec. 15. AS 22.25.011 is amended to read: 31 Sec. 22.25.011. Contributions of judges and justices. Each justice and 01 judge appointed after July 1, 1978, is a member under the judicial retirement  02 system as of the date of the justice's or judge's appointment and shall contribute 03 seven percent of the base annual salary received by the justice or judge to the judicial 04 retirement system. Contributions shall be made for all creditable service under this 05 chapter up to a maximum of 15 years. This contribution is made in the form of a 06 deduction from compensation, at the end of each payroll period, and is made even if 07 the compensation paid in cash to the justice or judge is reduced below the minimum 08 prescribed by law. The contributions shall be deducted from the justice's or judge's 09 compensation before the computation of applicable federal taxes and shall be treated 10 as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the 11 option of making the payroll deduction directly in cash instead of having the 12 contribution picked up by the employer. Each justice and judge is considered to 13 consent to the deduction from compensation. Payment of compensation less the 14 deduction constitutes a full discharge of all claims and demands for the services 15 rendered by the justice or judge during the period covered by the payment, except as 16 to the benefits provided for under this chapter. The contributions shall be credited to 17 the judicial retirement fund established in accordance with AS 22.25.048. 18  * Sec. 16. AS 22.25.012(a) is amended to read: 19 (a) An administrative director of the Alaska court system appointed under art. 20 IV, sec. 16 of the state constitution is a member under the judicial retirement  21 system as of the date of the administrative director's appointment and is entitled 22 to retirement benefits under this chapter on the terms and conditions applicable to a 23 superior court judge appointed after July 1, 1978, except that an administrative 24 director may receive retirement benefits only with service as administrative director 25 for 10 or more years. 26  * Sec. 17. AS 22.25.025 is amended by adding a new subsection to read: 27 (b) An amendment to this chapter does not provide a person with a vested 28 right to a benefit if the Internal Revenue Service determines that the amendment will 29 result in disqualification of the plan under the Internal Revenue Code. 30  * Sec. 18. AS 22.25.048(i) is amended to read: 31 (i) If the judicial retirement system is terminated,  01 (1) a member whose contributions have not been refunded,  02 regardless of the member's employment status at the date of the termination of  03 the system, shall be considered fully vested in the member's adjusted accrued  04 retirement benefits as of the date of the termination of the system; and  05 (2) if [IF, UPON TERMINATION OF THE SYSTEM,] all liabilities 06 are satisfied, any excess assets arising from erroneous actuarial computation shall 07 revert to the employer. 08  * Sec. 19. AS 22.25.900(1) is amended to read: 09 (1) "actuarial equivalent" means the adjustment necessary to obtain 10 equality in value of the aggregate expected payments under two different forms of 11 pension payments, considering expected mortality and interest earnings on the basis of 12 assumptions, factors and methods specified in regulations issued under the  13 system that are formally adopted under AS 22.25.027 by the commissioner of  14 administration that clearly preclude employer discretion in the determination of  15 the amount of any justice's, judge's, or member's benefit [TABLES REFERRED 16 TO IN THE INFORMATION HANDBOOK PUBLISHED UNDER AS 22.25.025]; 17  * Sec. 20. AS 39.35.010 is amended by adding a new subsection to read: 18 (d) An amendment to this chapter does not provide a person with a vested 19 right to a benefit if the Internal Revenue Service determines that the amendment will 20 result in disqualification of the plan under the Internal Revenue Code. 21  * Sec. 21. AS 39.35.120 is amended to read: 22 Sec. 39.35.120. Commencement of participation. (a) An employee of the 23 state shall be included in this system upon commencement of employment with the 24 state, or on January 1, 1961, whichever is later. Unless an employee has elected to 25 participate in the optional university retirement program under AS 14.40.661 - 26 14.40.799, an employee of a political subdivision or public organization that becomes 27 an employer shall be included in the system on the effective date of the employer's 28 participation or the date of the employee's commencement of employment with the 29 employer, whichever is later. [UNLESS THE VILLAGE PUBLIC SAFETY 30 OFFICER WAIVES COVERAGE UNDER AS 39.35.127, A VILLAGE PUBLIC 31 SAFETY OFFICER EMPLOYED UNDER THE VILLAGE PUBLIC SAFETY 01 OFFICER PROGRAM ESTABLISHED IN AS 18.65.670 IS INCLUDED IN THIS 02 SYSTEM ON THE EFFECTIVE DATE OF THIS BILL SECTION OR UPON THE 03 OFFICER'S COMMENCEMENT OF EMPLOYMENT WITH THE EMPLOYER, 04 WHICHEVER IS LATER.] 05 (b) Inclusion in the system is a condition of employment for an employee 06 except as otherwise provided for 07 (1) an elected official; 08 (2) an employee making an election under AS 39.35.150(b); and 09 (3) an employee of the university who has elected to participate in the 10 optional university retirement program under AS 14.40.661 - 14.40.799 [; AND 11 (4) A VILLAGE PUBLIC SAFETY OFFICER EMPLOYED BY A 12 NONPROFIT REGIONAL CORPORATION AS SET OUT IN AS 39.35.127]. 13  * Sec. 22. AS 39.35.165(b) is amended to read: 14 (b) An employee may elect to have the employer make payments for all or any 15 portion of the amounts payable for the employee's purchase of credited service 16 through a salary reduction program as follows: 17 (1) the amounts paid under a salary reduction program are in lieu of 18 contributions by the employee making the election; the electing employee's salary or 19 other compensation shall be reduced by the amount paid by the employer under this 20 subsection; 21 (2) the employee shall make an irrevocable election under this section 22 to purchase credited service as permitted in AS 39.35.310, 39.35.330, 39.35.340, 23 39.35.342, 39.35.345, 39.35.350, 39.35.360, 39.35.370, 39.35.375, or 39.35.381 and 24 before the employee's termination of employment; the irrevocable election must 25 specify the number of payroll periods that deductions will be made from the 26 employee's compensation and the dollar amount of deductions for each payroll period 27 during the specified number of payroll periods; the deductions made under this  28 paragraph cease upon the earlier of the member's termination of employment  29 with the employer or the member's death; amounts paid by an employer under  30 (f) of this section may not be applied toward the payment of the dollar amount of  31 the deductions representing the portion of the credited service that is being  01 purchased by the member through payroll deduction in accordance with the  02 member's irrevocable election under this subsection; 03 (3) [AN EMPLOYEE WHO MAKES AN ELECTION UNDER THIS 04 SECTION TO HAVE THE EMPLOYER MAKE PAYMENTS FOR LESS THAN 05 ALL OF THE AMOUNTS PAYABLE FOR THE EMPLOYEE'S PURCHASE OF 06 CREDITED SERVICE MAY SUBSEQUENTLY ELECT TO HAVE THE 07 EMPLOYER MAKE PAYMENTS FOR ALL OR ANY PORTION OF THE 08 REMAINING AMOUNTS PAYABLE FOR THE EMPLOYEE'S PURCHASE OF 09 CREDITED SERVICE; 10 (4)] amounts paid by an employer under this subsection [SECTION] 11 shall be treated as employer contributions for the purpose of determining tax treatment 12 under the Internal Revenue Code; the amounts paid by the employer under this section 13 may not be included in the member's gross income for income tax purposes until those 14 amounts are distributed by refund or retirement benefit payments. 15  * Sec. 23. AS 39.35.165(f) is amended to read: 16 (f) The [TO THE EXTENT THAT A PAYMENT UNDER THIS SECTION 17 DOES NOT ALTER, AMEND, OR REVOKE ANY ONE OR MORE CURRENTLY 18 EFFECTIVE ELECTIONS MADE BY THE EMPLOYEE, THE] board may accept 19 rollover [EMPLOYEE] contributions from a member and direct transfers, as  20 described in this subsection, for the purchase, in whole or in part, of credited  21 service for the reinstatement, in whole or in part, of forfeited credited service  22 under AS 39.35.350. A rollover contribution or transfer as described in this  23 subsection [, WHICH] shall also be treated as employer contributions for the purpose 24 of determining tax treatment under the Internal Revenue Code and may be made [, 25 FOR THE PAYMENT FOR CREDITED SERVICE PURCHASES MADE UNDER 26 THIS SECTION IN WHOLE OR IN PART,] by any one or a combination of the 27 following methods: 28 (1) subject to the limitations prescribed in 26 U.S.C. 401(a)(3) and 26 29 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more 30 retirement programs of another employer that are qualified under 26 U.S.C. 401(a) or 31 accepting rollovers directly from a member [AN EMPLOYEE]; 01 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 02 accepting from a member [AN EMPLOYEE] conduit rollover contributions that are 03 received by the employee from one or more conduit rollover individual retirement 04 accounts previously established by the member [EMPLOYEE]; 05 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 06 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 07 member [EMPLOYEE], on or [AND] after January 1, 2002, from a tax sheltered 08 annuity described in 26 U.S.C. 403(b); 09 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 10 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 11 member [EMPLOYEE], on or [AND] after January 1, 2002, from an eligible deferred 12 compensation plan of a tax-exempt organization or a state or local government 13 described in 26 U.S.C. 457(b); 14 (5) accepting direct trustee-to-trustee transfer from an account 15 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 16 Supplemental Annuity Plan). 17  * Sec. 24. AS 39.35.200(b) is amended to read: 18 (b) [IF, UPON TERMINATION OF EMPLOYMENT, AN EMPLOYEE 19 HAS CREDITED SERVICE OF LESS THAN FIVE YEARS AND HAS LESS 20 THAN $1,000 IN THE EMPLOYEE CONTRIBUTION ACCOUNT, A REFUND OF 21 THE EMPLOYEE CONTRIBUTION ACCOUNT MUST BE MADE UNLESS THE 22 EMPLOYEE INDICATES IN WRITING THAT FUTURE RETIREMENT IS 23 INTENDED AND CONTRIBUTIONS SHOULD NOT BE REFUNDED.] An 24 employee who is reemployed with an employer and whose contributions have not 25 been refunded before reemployment is not eligible for a refund. 26  * Sec. 25. AS 39.35.342(a) is amended to read: 27 (a) A [EXCEPT FOR EMPLOYMENT FOR WHICH THE EMPLOYEE 28 WAIVED COVERAGE UNDER AS 39.35.127, A] vested employee is entitled to 29 credited service for employment as a village public safety officer under the program 30 established under AS 18.65.670 for which the employee has not otherwise received 31 credited service under this system. An employee is not entitled to credited service for 01 employment as a village public safety officer unless the employee was employed as a 02 village public safety officer for at least one year. The credited service claimed  03 under this section may not exceed five years. Benefits are not payable on credited 04 service for village public safety officer service under this section unless the employee 05 makes retroactive contributions to the system for the period of time that service credit 06 is claimed. 07  * Sec. 26. AS 39.35.370(i) is amended to read: 08 (i) For system fiscal years beginning after December 31, 1975, and  09 notwithstanding [NOTWITHSTANDING] any other provision of this chapter, the 10 projected annual benefit provided by this chapter and the benefit from all other defined 11 benefit plans required to be aggregated with the benefits from this system under the 12 provisions of 26 U.S.C. 415 may not increase to an amount in excess of the amount 13 permitted under 26 U.S.C. 415 at any time. In the event that any projected annual 14 benefit of a member exceeds the limitation of 26 U.S.C. 415(g) for a limitation year, 15 the system shall take any necessary remedial action to correct an excess accrued 16 annual benefit. The provisions of 26 U.S.C. 415, and the regulations adopted under 17 that statute, as applied to qualified defined benefit plans of governmental employers 18 are incorporated as part of the terms and conditions of the system. This subsection 19 applies to any member of this system. 20  * Sec. 27. AS 39.35.371(h) is amended to read: 21 (h) Unless otherwise specified, the provisions of this section apply to calendar 22 years beginning on or after January 1, 1983 [1989]. 23  * Sec. 28. AS 39.35.680(2) is amended to read: 24 (2) "actuarial adjustment" means the adjustment necessary to obtain 25 equality in value of the aggregate expected payments under two different forms of 26 pension payments, considering expected mortality and interest earnings on the basis of 27 assumptions, factors and methods specified in regulations issued under this  28 system that are formally adopted under AS 39.35.042 by the board that clearly  29 preclude employer discretion in the determination of the amount of any  30 member's benefit [TABLES REFERRED TO IN THE INFORMATION 31 HANDBOOK PUBLISHED UNDER AS 39.35.060(8)]; 01  * Sec. 29. AS 39.35.680(17) is amended to read: 02 (17) "employer" means 03 (A) the State of Alaska; or 04 (B) [A NONPROFIT REGIONAL CORPORATION, BUT 05 ONLY WITH RESPECT TO VILLAGE PUBLIC SAFETY OFFICERS 06 EMPLOYED BY THE CORPORATION UNDER AS 18.65.670 WHO HAVE 07 NOT TERMINATED PARTICIPATION IN THE SYSTEM UNDER 08 AS 39.35.127; OR 09 (C)] a political subdivision or public organization of the state 10 that participates in the system; 11  * Sec. 30. AS 18.65.670(d); AS 39.35.127, and 39.35.285 are repealed. 12  * Sec. 31. The uncodified law of the State of Alaska enacted in sec. 49, ch. 59, SLA 2002, 13 is amended by adding a new subsection to read: 14 (f) Notwithstanding AS 14.25.177 and AS 39.35.547, the following provisions 15 of this Act are retroactive to January 1, 1993: 16 (1) AS 14.25.163, enacted by sec. 9 of this Act; 17 (2) AS 22.25.022, enacted by sec. 19 of this Act; 18 (3) AS 39.35.195, enacted by sec. 32 of this Act. 19  * Sec. 32. Section 48, ch. 59, SLA 2002, is repealed. 20  * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 23 catchline for 24 (1) AS 14.25.050 from "Contributions by teachers" to "Contributions of 25 members"; 26 (2) AS 39.35.546 from "Tax exemption" to "State and federal taxation of 27 benefits." 28  * Sec. 34. This Act takes effect immediately under AS 01.10.070(c).