HB 226: "An Act relating to credited service under the teachers' retirement system for education employees on leave without pay or receiving workers' compensation benefits because of certain on-the-job injuries."
00HOUSE BILL NO. 226 01 "An Act relating to credited service under the teachers' retirement system for 02 education employees on leave without pay or receiving workers' compensation 03 benefits because of certain on-the-job injuries." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25.040 is amended by adding a new subsection to read: 06 (e) A teacher who is assaulted while on the job and who, as a result of injury 07 from the assault, is placed on leave without pay, whether or not the teacher is 08 receiving benefits under AS 23.30 for the injury, is entitled to accrue credited service 09 while the teacher, because of the injury, is on leave-without-pay status or is receiving 10 workers' compensation benefits under AS 23.30. Entitlement to earn credited service 11 under this subsection ends when the teacher is eligible to be appointed to normal 12 retirement under AS 14.25.110(a). 13 * Sec. 2. AS 14.25.050(a) is amended to read: 14 (a) Except as provided in (c) of this section, beginning [BEGINNING]
01 January 1, 1991, each teacher shall contribute to the system an amount equal to 8.65 02 percent of the teacher's base salary accrued from July 1 to the following June 30. The 03 employer shall deduct the contribution from the teacher's salary at the end of each 04 payroll period. The contributions shall be deducted from employee compensation 05 before the computation of applicable federal taxes and shall be treated as employer 06 contributions under 26 U.S.C. 414(h)(2). 07 * Sec. 3. AS 14.25.050 is amended by adding new subsections to read: 08 (c) The employer of a teacher who, because of an injury caused by an on-the- 09 job assault, is on unpaid leave of absence or is receiving benefits under AS 23.30 shall pay 10 the teacher's contributions required by this section while the teacher is on unpaid leave or 11 receiving the workers' compensation benefits. 12 (d) A teacher who takes more than 10 days leave of absence without pay in 13 a calendar year because the teacher is unable to work due to an on-the-job injury or 14 occupational illness for which the teacher is receiving benefits under AS 23.30 and for 15 which the teacher is not entitled to credited service under AS 14.25.040(e) may elect 16 to receive credited service for the time on leave of absence without pay status. When 17 a teacher elects to receive credited service under this subsection, an indebtedness is 18 established. The amount of the indebtedness is equal to the contributions that the 19 teacher would have made if the teacher had been working, less the sum of 20 contributions that the teacher made for those periods of time and an amount equal to 21 contributions that would have been made for the first 10 days of leave without pay. 22 Interest as prescribed by regulation accrues on the indebtedness beginning on the date 23 that the teacher returns to work or terminates employment. If there is an outstanding 24 indebtedness at the time the teacher is appointed to retirement, benefits shall be 25 actuarially adjusted. 26 * Sec. 4. AS 39.35.120 is amended by adding a new subsection to read: 27 (c) An employee of a school district, a regional educational attendance area, 28 or a state boarding school who is assaulted while on the job and who, as a result of 29 injury from the assault, is placed on leave without pay, whether or not the employee 30 receives workers' compensation benefits under AS 23.30 for the injury, is entitled to 31 accrue credited service while the employee, because of the injury, is on leave-without-
01 pay status or is receiving the benefits under AS 23.30. Entitlement to credited service under 02 this subsection ends when the employee is eligible to be appointed to normal retirement under 03 AS 39.35.370(a). 04 * Sec. 5. AS 39.35.160(a) is amended to read: 05 (a) Except as provided in (c) of this section, beginning [BEGINNING] 06 January 1, 1987, each peace officer or fire fighter shall contribute to the system an 07 amount equal to seven and one-half percent of the peace officer's or fire fighter's 08 compensation. Beginning January 1, 1987, each other employee shall contribute to the 09 system an amount equal to six and three-quarters percent of the employee's 10 compensation. The contributions shall be deducted by the employer at the end of each 11 payroll period. The contributions shall be deducted from employee compensation 12 before computation of applicable federal taxes, and the contributions shall be treated 13 as employer contributions under 26 U.S.C. 414(h)(2). 14 * Sec. 6. AS 39.35.160 is amended by adding new subsections to read: 15 (c) The employer of a member who is employed by a school district, a 16 regional educational attendance area, or a state boarding school, who, because of an 17 injury caused by an on-the-job assault, is on unpaid leave of absence or is receiving 18 benefits under AS 23.30, shall pay the member's contributions under this section while 19 the member is, as a result of the on-the-job injury, on unpaid leave or receiving the 20 benefits under AS 23.30. 21 * Sec. 7. This Act entitles a teacher under AS 14.25 or an employee of a school district, 22 a regional educational attendance area, or a state boarding school under AS 39.35 to receive 23 credited service for days on leave without pay or days when the teacher or employee was 24 receiving workers' compensation benefits under AS 23.30 that occur on or after the effective 25 date of this Act.