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SB 207: "An Act relating to retirement contributions and benefits under the public employees' retirement system of certain state employees who are employed as child protection workers or who supervise child protection workers."

00 SENATE BILL NO. 207 01 "An Act relating to retirement contributions and benefits under the public employees' 02 retirement system of certain state employees who are employed as child protection 03 workers or who supervise child protection workers." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 39.35.160(a) is amended to read: 06 (a) Beginning January 1, 1987, each peace officer or fire fighter shall 07 contribute to the system an amount equal to seven and one-half percent of the peace 08 officer's or fire fighter's compensation. Beginning January 1, 2002, each state child 09 protection worker shall contribute to the system an amount equal to seven and 10 one-half percent of the employee's compensation. Except as provided in (d) of this 11 section, beginning January 1, 1987, each other employee shall contribute to the system 12 an amount equal to six and three-quarters percent of the employee's compensation. 13 The contributions shall be deducted by the employer at the end of each payroll period. 14 The contributions shall be deducted from employee compensation before computation

01 of applicable federal taxes, and the contributions shall be treated as employer 02 contributions under 26 U.S.C. 414(h)(2). 03 * Sec. 2. AS 39.35.370(a) is amended to read: 04 (a) Subject to AS 39.35.450, a terminated employee is eligible for a normal 05 retirement benefit 06 (1) at age 60 with at least five years credited service; 07 (2) with at least 20 years of credited service as a peace officer, [OR] 08 fire fighter, or state child protection worker; or 09 (3) with at least 30 years of credited service for all other employees. 10 * Sec. 3. AS 39.35.370(c) is amended to read: 11 (c) The monthly amount of a retirement benefit for a peace officer, [OR] fire 12 fighter, or state child protection worker is two percent of the average monthly 13 compensation times the years of credited service through 10 years, plus two and one- 14 half percent of the average monthly compensation times the years of service over 10 15 years. For all other employees it is 16 (1) two percent of the average monthly compensation times all years of 17 service before July 1, 1986, and for years of service through a total of 10 years; plus 18 (2) two and one-quarter percent of the average monthly compensation 19 times all years of service after June 30, 1986, over 10 years of total service through 20 20 years; plus 21 (3) two and one-half percent of the average monthly compensation 22 times all years of service after June 30, 1986, over 20 years of total service. 23 * Sec. 4. AS 39.35.370(f) is amended to read: 24 (f) A member who is vested in the system as a peace officer, [OR] fire fighter, 25 or state child protection worker at the time the member incurs a permanent 26 disability of at least 33 1/3 percent under workers' compensation and who (1) 27 undergoes retraining because of the disability; and (2) is subsequently employed with 28 the state or other employer in a position other than peace officer, [OR] fire fighter, or 29 state child protection worker is eligible for a normal retirement benefit as a peace 30 officer, [OR] fire fighter, or state child protection worker under (a) and (c) of this 31 section upon completing 20 years of credited service.

01 * Sec. 5. AS 39.35.527 is amended to read: 02 Sec. 39.35.527. Election to terminate coverage as a peace officer, [OR] fire 03 fighter, or state child protection worker. (a) Any active member may elect to 04 irrevocably relinquish peace officer or fire fighter status or status as a state child 05 protection worker with the system and to retain all credited service as if it had been 06 acquired as a member other than a peace officer, [OR] fire fighter, or state child 07 protection worker. 08 (b) In order to relinquish peace officer or fire fighter status or status as a 09 state child protection worker with the system, a person must be an active member 10 and must file a written request with the administrator by July 1, 1984, for active 11 members who are peace officers or fire fighters or within six months after 12 employment as a peace officer or fire fighter, or by July 1, 2002, or within six 13 months after employment as a state child protection worker for active members 14 who are state child protection workers, whichever occurs later. No person has more 15 than one opportunity to exercise this option. 16 (c) As soon as possible after the relinquishment, the administrator shall refund 17 to a person who relinquishes peace officer or fire fighter status or status as a state 18 child protection worker under this section a refund equal to the amount by which the 19 balance of the person's accumulated mandatory contributions plus interest exceeds the 20 balance which would exist if all service credit had been acquired as a member other 21 than a peace officer, [OR] fire fighter, or state child protection worker. 22 (d) A written request to relinquish peace officer or fire fighter status or status 23 as a state child protection worker is irrevocable upon filing with the administrator. 24 * Sec. 6. AS 39.35.680 is amended by adding a new paragraph to read: 25 (41) "state child protection worker" means an employee who is 26 employed, on or after January 1, 2002, by the state Department of Health and Social 27 Services occupying a position with responsibility under AS 47.10, AS 47.17, or 28 AS 47.35 for direct casework functions associated with investigating reports of harm 29 and providing protective services to children, licensing facilities for the protective 30 placement of those children, or managing the work of employees performing those 31 casework functions on a regional basis.

01 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION. (a) A state employee who was employed by the state before 04 January 1, 2002, as a child protection worker may convert the credited service for that 05 position during that time to credited service as a child protection worker as enacted by this 06 Act by claiming the service as child protection worker service before the member is appointed 07 to retirement. When the member claims this credited service as state child protection worker 08 service, an indebtedness of the member to the system shall be established. The indebtedness 09 is equal to (1) the contributions to the system that the employee would have made if the 10 service had counted as state child protection worker service, less (2) the contributions to the 11 system that the employee actually made. Interest, as prescribed by regulation, accrues on this 12 indebtedness. Any outstanding indebtedness that exists at the time a person is appointed to 13 retirement will require an actuarial adjustment to the benefits payable based upon the service 14 claimed under this subsection. 15 (b) In this section, "state child protection worker" has the meaning given in 16 AS 39.35.680(41), enacted by sec. 6 of this Act.