HB 223: "An Act relating to the voluntary deduction of the amount of certain annual dues from retirement benefits."
00 HOUSE BILL NO. 223 01 "An Act relating to the voluntary deduction of the amount of certain annual dues from 02 retirement benefits." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.25.200(a) is amended to read: 05 (a) Except as provided in AS 29.45.030(a)(1) or in (c) or (d) of this section, 06 member contributions and other amounts held in the system on behalf of a member or 07 other person who is or may become eligible for benefits under the system are exempt 08 from Alaska state and municipal taxes and are not subject to anticipation, alienation, 09 sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either 10 voluntary or involuntary, before they are received by the person entitled to the amount 11 under the terms of the system. Any attempt to anticipate, alienate, sell, transfer, 12 assign, pledge, encumber, charge, or otherwise dispose of any right to amounts 13 accrued in the system is void. However, a member's right to receive benefits or the 14 member contribution account may be assigned
01 (1) under a qualified domestic relations order; 02 (2) to a trust or similar legal device that meets the requirements for a 03 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4); or 04 (3) as provided in (c) or (d) of this section. 05 * Sec. 2. AS 14.25.200 is amended by adding a new subsection to read: 06 (d) A person receiving benefits under this chapter who intends to join or who 07 belongs to a retirement organization may authorize the administrator to deduct from 08 the person's benefits the amount of annual dues owed to the organization. The person 09 shall make the authorization in writing on a form approved by the administrator. The 10 authorization shall remain in effect until revoked in writing. A revocation is effective 11 when received by the administrator. The administrator may, by regulation, assess a 12 reasonable administrative fee to compensate the system for administration of this 13 subsection. In this subsection, "retirement organization" means an organization 14 representing persons receiving benefits under this chapter that is affiliated with an 15 organization representing employees of the employer under AS 23.40.070 - 23.40.260. 16 * Sec. 3. AS 39.35.500(a) is amended to read: 17 (a) Except as provided in AS 29.45.030(a)(1) or in (b) of this section, 18 employee contributions and other amounts held in the system are exempt from Alaska 19 state and local taxes. Except as provided in this subsection and in (b) or (c) of this 20 section, amounts held on behalf of, or payable to, any employee or other person who is 21 or may become eligible for benefits under the system are not subject to anticipation, 22 alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, 23 either voluntary or involuntary, before being received by the person entitled to the 24 amount under the terms of the system. An attempt to anticipate, alienate, sell, transfer, 25 assign, pledge, encumber, charge, or otherwise dispose of a right to amounts held 26 under the system is void. However, an employee's right to receive benefits or the 27 member's employee contribution account may be assigned 28 (1) under a qualified domestic relations order; or 29 (2) to a trust or similar legal device that meets the requirements for a 30 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4). 31 * Sec. 4. AS 39.35.500 is amended by adding a new subsection to read:
01 (c) A person receiving benefits under this chapter who intends to join or who 02 belongs to a retirement organization may authorize the administrator to deduct from 03 the person's benefits the amount of annual dues owed to the organization. The person 04 shall make the authorization in writing on a form approved by the administrator. The 05 authorization shall remain in effect until revoked in writing. A revocation is effective 06 when received by the administrator. The administrator may, by regulation, assess a 07 reasonable administrative fee to compensate the system for administration of this 08 subsection. In this subsection, "retirement organization" means an organization 09 representing persons receiving benefits under this chapter that is affiliated with an 10 organization representing employees of the employer under AS 23.40.070 - 23.40.260.