SB 271: "An Act relating to the longevity bonus program and amending and making effective an annuity program and amendments to the longevity bonus program and the permanent fund dividend program provided for in secs. 2 - 18, ch. 99, SLA 1985; and providing for an effective date."
00SENATE BILL NO. 271 01 "An Act relating to the longevity bonus program and amending and making 02 effective an annuity program and amendments to the longevity bonus program 03 and the permanent fund dividend program provided for in secs. 2 - 18, ch. 99, 04 SLA 1985; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43.23.005(d), as enacted by sec. 3, ch. 99, SLA 1985, is amended to read: 07 (d) A person who is eligible to receive a permanent fund dividend under this 08 section, or who is authorized to claim a dividend on behalf of another under (c) of this 09 section, may elect to receive the dividend either in cash or as an annuity credit. 10 Alternatively, a person may elect to receive 25 percent, 50 percent, or 75 percent of 11 the dividend in cash and the remainder as an annuity credit. A person who is 65 years 12 of age on or before January 1, 1996,  may only receive the permanent fund 13 dividend in cash and may not elect to receive an annuity credit. 14 * Sec. 2. AS 43.23.110(a), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read:
01 (a) The annuity investment fund is established as a separate fund in the state 02 treasury. The annuity investment fund consists of money transferred from the dividend 03 fund, cash contributions under AS 43.23.125, and income earned by the annuity 04 investment fund. Notwithstanding AS 37.13.145, an amount equal to the permanent 05 fund dividends taken as annuity credits under this chapter shall be annually transferred 06 from the dividend fund to the annuity investment fund. 07 * Sec. 3. AS 43.23.110(b), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: 08 (b) Money in the annuity investment fund shall be invested under 09 AS 37.10.071 by the commissioner of revenue [IN INVESTMENTS AUTHORIZED 10 UNDER AS 39.35.110]. The commissioner of administration shall credit the net 11 income of the annuity investment fund to the individual annuity accounts and the 12 annuity reserve account. 13 * Sec. 4. AS 43.23 is amended by adding a new section to read: 14 Sec. 43.23.125. CASH CONTRIBUTIONS. An individual who is eligible to 15 receive the permanent fund dividend as an annuity credit under AS 43.23.005(d) but 16 does not elect to do so or who elects to receive only a portion of the permanent fund 17 dividend as an annuity credit may make a cash contribution to that individual's annuity 18 account. The cash contribution for a dividend year must be received by the Depart- 19 ment of Administration before September 30 of the year following that dividend year. 20 The total amount of the annuity credit and the cash contributions to an annuity account 21 for a year may not exceed the amount of the permanent fund dividend for that year. 22 * Sec. 5. AS 43.23.130(a), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: 23 (a) An individual with one or more annuity credits or cash contributions 24 under AS 43.23.125 may receive an annuity upon reaching the age of 65. 25 * Sec. 6. AS 43.23.130(b), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read: 26 (b) An annuity under this section is a monthly payment based upon the 27 principal and accrued interest in the person's annuity account. Upon appointment to 28 receive an annuity, the account balance shall be transferred to the annuity reserve 29 account. The [AN] annuity shall be paid from the annuity reserve account as a 30 straight life annuity or other payment plan authorized by the commissioner of 31 administration [THE DEPARTMENT OF ADMINISTRATION]. The size of the
01 annuity may not vary on account of the individual's sex. 02 * Sec. 7. AS 43.23.130(e), as enacted by sec. 16, ch. 99, SLA 1985, is repealed and 03 reenacted to read: 04 (e) If a person elects to credit a permanent fund dividend or make a cash 05 contribution to an annuity account and dies before age 65, a lump sum payment shall 06 be made to that person's designated beneficiary or beneficiaries. The lump sum 07 payment includes all dividends or cash contributions credited to the person's annuity 08 account and interest earned on the account. A person may change or revoke a 09 designation without notice to the beneficiary or beneficiaries at any time. If a person 10 designates more than one beneficiary, each shares equally unless the person specifies 11 a different allocation or preference. The designation, change, or revocation of 12 beneficiary shall be made on a form provided by the commissioner of administration 13 and is not effective until it is filed with the commissioner. If there is no beneficiary 14 designated or surviving, the lump sum payment shall be paid to the 15 (1) surviving spouse; 16 (2) if there is no surviving spouse, in equal parts to the surviving 17 children including adopted children; 18 (3) if there is no surviving spouse or child, in equal parts to the 19 surviving parents; or 20 (4) if there is no surviving spouse, child, or parent, to the estate of the 21 deceased. 22 * Sec. 8. AS 43.23 is amended by adding a new section to read: 23 Sec. 43.23.135. EMERGENCY WITHDRAWALS. An individual may make 24 a withdrawal from that individual's annuity account before reaching the age of 65 if 25 the individual establishes to the satisfaction of the commissioner of administration that 26 the withdrawal is necessary to meet an unforeseeable emergency. The amount 27 withdrawn may not exceed the total amount in the individual's annuity account or the 28 amount actually necessary to meet the emergency, whichever is less. The 29 commissioner shall define the term "unforeseeable emergency" by regulation. An 30 individual may only make one withdrawal under this section and may pay it back with 31 interest under terms established by the commissioner. An individual who has made
01 a withdrawal under this section may not elect to credit a dividend or make a cash 02 contribution to an annuity account for two years after the withdrawal. 03 * Sec. 9. AS 47.45.010(a) is repealed and reenacted to read: 04 (a) A person who is 65 years of age or over, who resides in the state for at 05 least one year immediately preceding application for a longevity bonus under this 06 chapter may apply to the commissioner of administration for qualification to receive 07 a monthly bonus. 08 * Sec. 10. AS 47.45.015, as enacted by sec. 18, ch. 99, SLA 1985, is amended to read: 09 Sec. 47.45.015. AMOUNT OF BONUS. (a) Except as provided in (b) of this 10 section, the monthly longevity bonus is equal to $250, minus the maximum possible 11 straight life annuity [FOR A PERSON 65 YEARS OF AGE] under the annuity 12 program (AS 43.23.110 - 43.23.130), as determined by the commissioner of 13 administration. The maximum possible straight life annuity equals the amount a 14 person would receive if that person became 65 on January 2, 1996, and 15 contributed 100 percent of all permanent fund dividends or the cash equivalency 16 to the annuity program for every year after December 31, 1994. However, for 17 purposes of this section the maximum possible straight life annuity may not 18 exceed the amount that a person turning 65 in the current year would receive if 19 that person had contributed 100 percent of all permanent fund dividends or the 20 cash equivalency to the annuity program for every year after December 31, 1995. 21 (b) A person who is 65 years of age on or before January 1, 1996 , is 22 entitled to the full longevity bonus payment without reduction for the annuity program. 23 * Sec. 11. Section 1, ch. 99, SLA 1985, and sec. 5, ch. 64, SLA 1993 are repealed. 24 * Sec. 12. AS 43.23.110(c), as enacted by sec. 16, ch. 99, SLA 1985, and AS 43.23.055(9); 25 AS 47.45.045, 47.45.070(a)(5), and 47.45.070(a)(6) are repealed. 26 * Sec. 13. Chapter 99, SLA 1985, and secs. 1 - 12 of this Act apply only to permanent 27 fund dividends for years beginning after December 31, 1994. Notwithstanding the 28 amendments to AS 43.23 made by ch. 99, SLA 1985, and this Act, permanent fund dividends 29 for 1994 and prior years shall be made under the law as it existed before the effective date 30 of this Act. 31 * Sec. 14. Nothing in this Act repeals or amends by implication amendments to AS 43.23