SB 6: "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. 6 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, 2004, 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). A member may not have the option of 03 making the payroll deduction directly instead of having the contribution picked up by 04 the employer. 05 * Sec. 2. AS 39.35.370(a) is amended to read: 06 (a) Subject to AS 39.35.450, a terminated employee is eligible for a normal 07 retirement benefit 08 (1) at age 60 with at least five years credited service; 09 (2) with at least 20 years of credited service as a peace officer, [OR] 10 fire fighter, or state child protection worker; or 11 (3) with at least 30 years of credited service for all other employees. 12 * Sec. 3. AS 39.35.370(c) is amended to read: 13 (c) The monthly amount of a retirement benefit for a peace officer, [OR] fire 14 fighter, or state child protection worker is two percent of the average monthly 15 compensation times the years of credited service through 10 years, plus two and one- 16 half percent of the average monthly compensation times the years of service over 10 17 years. For all other employees it is 18 (1) two percent of the average monthly compensation times all years of 19 service before July 1, 1986, and for years of service through a total of 10 years; plus 20 (2) two and one-quarter percent of the average monthly compensation 21 times all years of service after June 30, 1986, over 10 years of total service through 20 22 years; plus 23 (3) two and one-half percent of the average monthly compensation 24 times all years of service after June 30, 1986, over 20 years of total service. 25 * Sec. 4. AS 39.35.370(f) is amended to read: 26 (f) A member who is vested in the system as a peace officer, [OR] fire fighter, 27 or state child protection worker at the time the member incurs a permanent 28 disability of at least 33 1/3 per cent under workers' compensation and who (1) 29 undergoes retraining because of the disability; and (2) is subsequently employed with 30 the state or other employer in a position other than peace officer, [OR] fire fighter, or 31 state child protection worker is eligible for a normal retirement benefit as a peace
01 officer, [OR] fire fighter, or state child protection worker under (a) and (c) of this 02 section upon completing 20 years of credited service. 03 * Sec. 5. AS 39.35.527 is amended to read: 04 Sec. 39.35.527. Election to terminate coverage as a peace officer, [OR] fire 05 fighter, or state child protection worker. (a) Any active member may elect to 06 irrevocably relinquish peace officer or fire fighter status or status as a state child 07 protection worker with the system and to retain all credited service as if it had been 08 acquired as a member other than a peace officer, [OR] fire fighter, or state child 09 protection worker. 10 (b) In order to relinquish peace officer or fire fighter status or status as a 11 state child protection worker with the system, a person must be an active member 12 and must file a written request with the administrator by July 1, 1984, for active 13 members who are peace officers or fire fighters or within six months after 14 employment as a peace officer or fire fighter, or by July 1, 2004, or within six 15 months after employment as a state child protection worker for active members 16 who are state child protection workers, whichever occurs later. No person has more 17 than one opportunity to exercise this option. 18 (c) As soon as possible after the relinquishment, the administrator shall refund 19 to a person who relinquishes peace officer or fire fighter status or status as a state 20 child protection worker under this section a refund equal to the amount by which the 21 balance of the person's accumulated mandatory contributions plus interest exceeds the 22 balance which would exist if all service credit had been acquired as a member other 23 than a peace officer, [OR] fire fighter, or state child protection worker. 24 (d) A written request to relinquish peace officer or fire fighter status or status 25 as a state child protection worker is irrevocable upon filing with the administrator. 26 * Sec. 6. AS 39.35.680 is amended by adding a new paragraph to read: 27 (41) "state child protection worker" means an employee who is 28 employed, on or after January 1, 2004, by the state Department of Health and Social 29 Services occupying a position with responsibility under AS 47.10, AS 47.17, or 30 AS 47.35 for direct casework functions associated with investigating reports of harm 31 and providing protective services to children, licensing facilities for the protective
01 placement of those children, or managing the work of employees performing those 02 casework functions on a regional basis. 03 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITION. (a) A state employee who was employed by the state before 06 January 1, 2004, as a child protection worker may convert the credited service for that 07 position during that time to credited service as a child protection worker as enacted by this 08 Act by claiming the service as child protection worker service before the member is appointed 09 to retirement. When the member claims this credited service as state child protection worker 10 service, an indebtedness of the member to the system shall be established. The indebtedness 11 is equal to (1) the contributions to the system that the employee would have made if the 12 service had counted as state child protection worker service, less (2) the contributions to the 13 system that the employee actually made. Interest, as prescribed by regulation, accrues on this 14 indebtedness. Any outstanding indebtedness that exists at the time a person is appointed to 15 retirement will require an actuarial adjustment to the benefits payable based upon the service 16 claimed under this subsection. 17 (b) In this section, "state child protection worker" has the meaning given in 18 AS 39.35.680(41), enacted by sec. 6 of this Act.