00                            SENATE BILL NO. 230                                                                         
01 "An Act relating to the voluntary deduction of dues for membership in certain retiree                                   
02 organizations."                                                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 39.35.500(a) is amended to read:                                                                  
05            (a)  Except as provided in AS 29.45.030(a)(1) or in (b) or (c) of this section,                          
06       employee contributions and other amounts held in the system are exempt from Alaska                                
07       state and local taxes.  Except as provided in this subsection and in (b) and (c) of this                      
08       section, amounts held on behalf of, or payable to, any employee or other person who is                            
09       or may become eligible for benefits under the system are not subject to anticipation,                             
10       alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind,                               
11       either voluntary or involuntary, before being received by the person entitled to the                              
12       amount under the terms of the system.  An attempt to anticipate, alienate, sell, transfer,                        
13       assign, pledge, encumber, charge, or otherwise dispose of a right to amounts held                                 
14       under the system is void.  However, an employee's right to receive benefits or the                                

01       member's employee contribution account may be assigned                                                            
02                 (1)  under a qualified domestic relations order; or                                                     
03                 (2)  to a trust or similar legal device that meets the requirements for a                               
04       Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4).                                        
05    * Sec. 2.  AS 39.35.500 is amended by adding a new subsection to read:                                             
06            (c)  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.  The revocation is                                 
11       effective when received by the administrator.  The administrator may, by regulation,                              
12       assess a reasonable administrative fee to compensate the system for administration of                             
13       this 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.