00CS FOR SENATE BILL NO. 126(FIN)                                                                                         
01 "An Act relating to the retirement incentive program for state employees; and                                           
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  Section 23(a), ch. 4, FSSLA 1996, is amended to read:                                                  
05  (a)  A state agency may adopt, and file with the commissioner of administration                                       
06 for approval, a proposed discretionary retirement incentive plan for its employees as                                 
07 part of a permanent reduction in the personal services costs in that section of the state                               
08 agency.  In addition, a state agency shall permit eligible employees to apply to the                                   
09 retirement incentive program as provided in (f) of this section during fixed                                            
10 windows, from July 1, 1997, through August 31, 1997, from May 1, 1998, through                                          
11 June 30, 1998, and from May 1, 1999, through June 30, 1999.                                                            
12    * Sec. 2.  Section 23(b), ch. 4, FSSLA 1996, is amended to read:                                                     
13  (b)  Upon the request of a state agency, the commissioner of administration                                           
14 shall establish one or more periods during which the employees of that state agency                                     

01 who are eligible under sec. 22(b) of this Act to participate in a retirement incentive                                  
02 plan may apply to the commissioner of administration to participate in the state                                        
03 agency's approved discretionary plan.  The periods shall begin no earlier than June 30,                               
04 1996, and end no later than June 30, 1999.  The periods shall be no less than 30 days                                   
05 and no more than 60 days in duration, and may not begin less than 30 days after their                                   
06 establishment.  A state agency is not required to request an application period for a                                  
07 discretionary plan and may request more than one application period.                                                   
08    * Sec. 3.  Section 23(e), ch. 4, FSSLA 1996, is amended to read:                                                     
09  (e)  The commissioner of administration may not accept the application of an                                          
10 employee to participate in an approved retirement incentive plan adopted under this                                     
11 section unless the employee will be appointed to retirement not later than the first day                                
12 of the month that is six months after the last day of the application period established                                
13 by the commissioner under (a) or (b) of this section.  A state agency, in a plan                                      
14 adopted under this section, may set an earlier date by which an employee must be                                        
15 appointed to retirement in order to participate in the plan.                                                            
16    * Sec. 4.  Section 23, ch. 4, FSSLA 1996, is amended by adding a new subsection to read:                             
17  (f)  Beginning on the effective date of this Act, a classified state employee who                                     
18 meets the eligibility requirements of sec. 22(b) of this Act and (c) and (d) of this                                    
19 section and who will be qualified for a normal retirement under AS 14.25.110(a) or                                      
20 AS 39.35.370(a) after application of the retirement incentive under sec. 22(f)(1) of this                               
21 Act may only apply to participate in the retirement incentive program during the first                                  
22 application period that opens immediately after, or is open when, the classified                                        
23 employee reaches the age or earns the credited service to so qualify.  A state agency                                   
24 may not decline to include a classified employee qualified to participate in the                                        
25 retirement incentive program under this subsection in the state's retirement incentive                                  
26 plan.                                                                                                                   
27    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).