SCS HB 140(STA): "An Act relating to benefits for retired teachers or employees who participated in retirement incentive programs and are subsequently reemployed as a commissioner; and providing for an effective date."
00 SENATE CS FOR HOUSE BILL NO. 140(STA) 01 "An Act relating to benefits for retired teachers or employees who participated in 02 retirement incentive programs and are subsequently reemployed as a commissioner; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 FINDINGS AND PURPOSE. (a) The legislature finds that it is in the best interests 08 of the people of Alaska to ensure that the principal departments of state government are 09 managed by competent, skilled, knowledgeable, and experienced individuals. Choosing to 10 serve Alaska as the commissioner of a principal department often requires an individual to 11 make sacrifices, including reduced pay and benefits as well as relocation of the individual and 12 the individual's family to the state capital. 13 (b) The purposes of this Act are to remove a major disincentive to serving as the 14 commissioner of a principal department and to give the governor greater flexibility in filling
01 those positions. 02 * Sec. 2. AS 14.25.043(a) is amended to read: 03 (a) If a retired member again becomes an active member, benefit payments 04 may not be made during the period of reemployment unless the teacher makes an 05 election under (b) or (e) of this section. The retirement benefit must be suspended for 06 the entire school year if the teacher is reemployed as an active teacher for a period 07 equivalent to a year of service. During the period of reemployment, the member is 08 subject to AS 14.25.050, and deductions from the member's salary will be made in 09 accordance with AS 14.25.050. 10 * Sec. 3. AS 14.25.043 is amended by adding new subsections to read: 11 (d) A member who retired under AS 14.25.110(a) and participated in a 12 retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 13 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, who is subsequently reemployed as a 14 commissioner may become an active member without losing the incentive credit 15 provided under the applicable retirement incentive plan and is not subject to any 16 related reemployment indebtedness. 17 (e) A member who retired under AS 14.25.110(a) and participated in a 18 retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 19 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, who is subsequently reemployed as a 20 commissioner and becomes an active member may, within 30 days of the date of 21 reemployment, elect to continue receiving benefit payments during the period of 22 reemployment by filing a waiver of coverage with the administrator on a form 23 provided by the administrator. An election under this subsection waives coverage for 24 the period of reemployment and is irrevocable during the period of reemployment. 25 Deductions from the member's salary may not be made under AS 14.25.050 during the 26 period of reemployment, and the member may not receive credited service for the 27 period of reemployment. A member who makes an election under this subsection 28 does not lose the incentive credit provided under the applicable retirement incentive 29 plan and is not subject to any related reemployment indebtedness. 30 * Sec. 4. AS 39.35.150(b) is amended to read: 31 (b) A member who retired under AS 39.35.370(a) and subsequently becomes
01 an active member may, within 30 days of the date of reemployment, elect to continue 02 receiving benefit payments during the period of reemployment by filing an election 03 with the administrator on a form provided by the administrator. An election under this 04 subsection waives coverage for the period of reemployment and is irrevocable during 05 the period of reemployment. During the period of reemployment, deductions from the 06 member's salary may not be made under AS 39.35.160 and the member may not 07 receive credited service. A member who participated in a retirement incentive 08 program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 09 1996; or ch. 92, SLA 1997, is not eligible to make an election under this subsection 10 unless the member is reemployed as a commissioner. 11 * Sec. 5. AS 39.35.150 is amended by adding a new subsection to read: 12 (e) A member who retired under 39.35.370(a) and participated in a retirement 13 incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 14 4, FSSLA 1996; or ch. 92, SLA 1997, who is subsequently reemployed as a 15 commissioner may become an active member without losing the incentive credit 16 provided under the applicable retirement incentive plan and is not subject to any 17 related reemployment indebtedness. 18 * Sec. 6. The uncodified law of the State of Alaska enacted in sec. 12, ch. 57, SLA 2001, is 19 amended to read: 20 Sec. 12. AS 14.20.135; AS 14.25.043(b), 14.25.043(e), added by sec. 3 of 21 this 2003 Act; AS 39.35.120(b)(2), 39.35.150(b), as amended by sec. 4 of this 2003 22 Act, and 39.35.150(c) are repealed July 1, 2005. 23 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).