CSSB 232(STA): "An Act relating to federal tax requirements for and other provisions of the teachers' retirement system, the public employees' retirement system, and the judicial retirement system; removing village public safety officers from the public employees' retirement system; requiring the public employees' retirement system to refund contributions under $1,000 to inactive employees; limiting service credit for village public safety officer service in the public employees' retirement system to five years; and providing for an effective date."
00 CS FOR SENATE BILL NO. 232(STA) 01 "An Act relating to federal tax requirements for and other provisions of the teachers' 02 retirement system, the public employees' retirement system, and the judicial retirement 03 system; removing village public safety officers from the public employees' retirement 04 system; requiring the public employees' retirement system to refund contributions 05 under $1,000 to inactive employees; limiting service credit for village public safety 06 officer service in the public employees' retirement system to five years; and providing 07 for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 PURPOSE. The purpose of this Act is to 12 (1) ensure that the teachers' retirement system, the public employees' 13 retirement system, and the judicial retirement system continue to meet governmental plan
01 qualifications set by the Internal Revenue Service so that those plans may qualify for 02 favorable federal tax treatment; and 03 (2) implement changes in those retirement systems so that members can take 04 advantage of changes in federal tax laws and better plan their retirement. 05 * Sec. 2. AS 14.25.010(b) is amended by adding a new subsection to read: 06 (c) An amendment to this chapter does not provide a person with a vested 07 right to a benefit if the Internal Revenue Service determines that the amendment will 08 result in disqualification of the plan under the Internal Revenue Code. 09 * Sec. 3. AS 14.25.050(a) is amended to read: 10 (a) Except as provided in (c) of this section, beginning January 1, 1991, each 11 member [TEACHER] shall contribute to the system an amount equal to 8.65 percent 12 of the member's [TEACHER'S] base salary accrued from July 1 to the following 13 June 30. The employer shall deduct the contribution from the member's 14 [TEACHER'S] salary at the end of each payroll period, and the contribution shall be 15 credited by the system to the member contribution account. The contributions 16 shall be deducted from employee compensation before the computation of applicable 17 federal taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). 18 A member may not have the option of making the payroll deduction directly in cash 19 instead of having the contribution picked up by the employer. 20 * Sec. 4. AS 14.25.060(a) is amended to read: 21 (a) If a member first joined the system [SERVICE] before July 1, 1990, and 22 has military service or Alaska Bureau of Indian Affairs (BIA) service, or if a member 23 joined the system before July 1, 1978, and has creditable outside service, the member 24 may claim this service. If the member claims the service, the member is indebted 25 to the system as follows: 26 (1) at [AT] the time of first becoming a member of the system, the 27 arrearage indebtedness is seven percent of the base salary multiplied by the total 28 number of years of creditable outside, military, and Alaska BIA service; the [. THE] 29 administrator shall add compound interest at the rate prescribed by regulation to the 30 arrearage indebtedness beginning July 1, 1963, or at the time the member first 31 becomes eligible to claim the service, whichever is later, to the date of payment or the
01 date of retirement, whichever occurs first; [.] 02 (2) if [IF] a member terminates from the system and is subsequently 03 reemployed as a member, the arrearage indebtedness to the system for outside, 04 military, or Alaska BIA service accumulated in the interim is seven percent of the base 05 salary upon reentering membership service, multiplied by the number of years of 06 interim outside, military, and Alaska BIA service; compound [. COMPOUND] 07 interest at the rate prescribed by regulation shall be added to the arrearage 08 indebtedness beginning July 1, 1963, or the date of reemployment as a member, 09 whichever is later, to the date of payment or the date of retirement, whichever occurs 10 first. 11 * Sec. 5. AS 14.25.062 is amended to read: 12 Sec. 14.25.062. Reinstatement indebtedness. A member [TEACHER] who 13 has received a refund of contributions in accordance with AS 14.25.150 forfeits 14 corresponding credited service under this chapter. A member may elect to 15 reinstate credited service associated with the refund by repaying the total amount 16 of the refund. If an election is made under this section, an indebtedness [IS 17 INDEBTED] to the system in the amount of the total refund shall be established. 18 Compound interest at the rate prescribed by regulation shall be added to the 19 reinstatement indebtedness from the date of the refund to the date of repayment or the 20 date of retirement, whichever occurs first. 21 * Sec. 6. AS 14.25.070 is amended to read: 22 Sec. 14.25.070. Contributions by employer. An employer shall contribute to 23 the system an amount equal to the percentage, as certified by the administrator, of the 24 sum total of the base salaries of all members [TEACHERS] that is required in 25 addition to member [TEACHER] contributions to provide the benefits of this chapter 26 times the sum total of the base salaries paid to members [TEACHERS], including any 27 adjustments to contributions required by AS 14.25.173(a), by the employer. 28 * Sec. 7. AS 14.25.075(a) is amended to read: 29 (a) A person [AN EMPLOYEE] who is eligible to purchase credited service 30 under AS 14.20.345, AS 14.25.047, [OR] 14.25.048, 14.25.050, 14.25.060 [A 31 MEMBER WHO IS ELIGIBLE TO PURCHASE CREDITED SERVICE UNDER
01 AS 14.25.060], 14.25.061, 14.25.062, [OR] 14.25.100, [OR A TEACHER WHO IS 02 ELIGIBLE TO PURCHASE CREDITED SERVICE UNDER AS 14.20.345, 03 AS 14.25.050, OR] 14.25.105, or 14.25.107 is a member for purposes of this section. 04 A member, in lieu of making payments directly to the system, may elect to have the 05 member's employer make payments as provided in this section. 06 * Sec. 8. AS 14.25.075(b) is amended to read: 07 (b) A member may elect to have the employer make payments for all or any 08 portion of the amounts payable for the member's purchase of credited service through 09 a salary reduction program as follows: 10 (1) the amounts paid under a salary reduction program are in lieu of 11 contributions by the member making the election; the electing member's salary or 12 other compensation shall be reduced by the amount paid by the employer under this 13 subsection [SECTION]; 14 (2) the member shall make an irrevocable election under this 15 subsection [SECTION] to purchase credited service as permitted in AS 14.20.345, 16 AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, AS 14.25.062, 14.25.100, 17 [OR] 14.25.105, or 14.25.107 before the member's termination of employment; the 18 irrevocable election must specify the number of payroll periods that deductions will 19 be made from the member's compensation and the dollar amount of deductions for 20 each payroll period during the specified number of payroll periods; the deductions 21 made under this paragraph cease upon the member's termination of employment 22 with the employer; 23 (3) [A MEMBER WHO MAKES AN ELECTION UNDER THIS 24 SECTION TO HAVE THE EMPLOYER MAKE PAYMENTS FOR LESS THAN 25 ALL OF THE AMOUNTS PAYABLE FOR THE MEMBER'S PURCHASE OF 26 CREDITED SERVICE MAY SUBSEQUENTLY ELECT TO HAVE THE 27 EMPLOYER MAKE PAYMENTS FOR ALL OR ANY PORTION OF THE 28 REMAINING AMOUNTS PAYABLE FOR THE MEMBER'S PURCHASE OF 29 CREDITED SERVICE; 30 (4)] amounts paid by an employer under this section shall be treated as 31 employer contributions for the purpose of determining tax treatment under 26 U.S.C.
01 (Internal Revenue Code); the amounts paid by the employer under this section may not 02 be included in the member's gross income for income tax purposes until those amounts 03 are distributed by refund or retirement benefit payments. 04 * Sec. 9. AS 14.25.075(f) is amended to read: 05 (f) The [TO THE EXTENT THAT A PAYMENT UNDER THIS SECTION 06 DOES NOT ALTER, AMEND, OR REVOKE ANY ONE OR MORE CURRENTLY 07 EFFECTIVE ELECTIONS MADE BY THE EMPLOYEE, THE] board may accept 08 rollover [EMPLOYEE] contributions from a member, and direct transfers as 09 described in the subsection, for the purchase, in whole or in part, of credited 10 service under this section for the reinstatement, in whole or in part, of service 11 under AS 14.25.062. Contributions made under this subsection may not be 12 applied to purchase service being paid under (b) of this section. A rollover 13 contribution or transfer as described in this subsection [, WHICH] shall [ALSO] 14 be treated as employer contributions for the purpose of determining tax treatment 15 under the Internal Revenue Code and may be made [, FOR THE PAYMENT FOR 16 CREDITED SERVICE PURCHASES MADE UNDER THIS SECTION IN WHOLE 17 OR IN PART,] by any one or a combination of the following methods: 18 (1) subject to the limitations prescribed in [26 U.S.C. 401(a)(3) AND] 19 26 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more 20 retirement programs of another employer that are qualified under 26 U.S.C. 401(a) or 21 accepting rollovers directly from a member [AN EMPLOYEE]; 22 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 23 accepting from a member [AN EMPLOYEE] conduit rollover contributions that are 24 received by the member [EMPLOYEE] from one or more conduit rollover individual 25 retirement accounts previously established by the member [EMPLOYEE]; 26 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 27 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 28 member [EMPLOYEE], on or [AND] after January 1, 2002, from a tax sheltered 29 annuity described in 26 U.S.C. 403(b); 30 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 31 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the
01 member [EMPLOYEE], on or [AND] after January 1, 2002, from an eligible deferred 02 compensation plan of a tax-exempt organization or a state or local government 03 described in 26 U.S.C. 457(b); 04 (5) accepting direct trustee-to-trustee transfer from an account 05 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 06 Supplemental Annuity Plan). 07 * Sec. 10. AS 14.25.075(i) is amended to read: 08 (i) On satisfaction of the eligibility requirements of AS 14.20.345, 09 AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.062, 14.25.100, 10 [OR] 14.25.105, or 14.25.107, the requirements of this section, and the administrative 11 filing requirements specified by the board, the system shall adjust the member's 12 credited service history and add any additional service credits acquired. 13 * Sec. 11. AS 14.25.110(k) is amended to read: 14 (k) For system fiscal years beginning after December 31, 1975, and 15 notwithstanding [NOTWITHSTANDING] any other provision of this chapter, the 16 projected annual benefit provided by this chapter and the benefit from all other defined 17 benefit plans required to be aggregated with the benefits from this system under the 18 provisions of 26 U.S.C. 415 may not increase to an amount in excess of the amount 19 permitted under 26 U.S.C. 415 at any time. In the event that any projected annual 20 benefit of a member exceeds the limitation of 26 U.S.C. 415 for a limitation year, the 21 system shall take any necessary remedial action to correct an excess accrued annual 22 benefit. The provisions of 26 U.S.C. 415, and the regulations adopted under that 23 statute, as applied to qualified defined benefit plans of governmental employers are 24 incorporated as part of the terms and conditions of the system. This subsection applies 25 to any member of this system. 26 * Sec. 12. AS 14.25.165(h) is amended to read: 27 (h) Unless otherwise specified, the provisions of this section apply to calendar 28 years beginning on or after January 1, 1983 [1989]. 29 * Sec. 13. AS 14.25.220(2) is amended to read: 30 (2) "actuarial adjustment" means the adjustment necessary to obtain 31 equality in value of the aggregate expected payments under two different forms of
01 pension payments, considering expected mortality and interest earnings on the basis of 02 assumptions, factors, and methods that clearly preclude employer discretion in 03 the determination of the amount of any member's benefit [TABLES REFERRED 04 TO IN THE INFORMATION HANDBOOK PUBLISHED UNDER 05 AS 14.25.030(5)]; 06 * Sec. 14. AS 22.25.011 is amended to read: 07 Sec. 22.25.011. Contributions of judges and justices. Each justice and 08 judge appointed after July 1, 1978, is a member under the judicial retirement 09 system as of the date of the justice's or judge's appointment and shall contribute 10 seven percent of the base annual salary received by the justice or judge to the judicial 11 retirement system. Contributions shall be made for all creditable service under this 12 chapter up to a maximum of 15 years. This contribution is made in the form of a 13 deduction from compensation, at the end of each payroll period, and is made even if 14 the compensation paid in cash to the justice or judge is reduced below the minimum 15 prescribed by law. The contributions shall be deducted from the justice's or judge's 16 compensation before the computation of applicable federal taxes and shall be treated 17 as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the 18 option of making the payroll deduction directly in cash instead of having the 19 contribution picked up by the employer. Each justice and judge is considered to 20 consent to the deduction from compensation. Payment of compensation less the 21 deduction constitutes a full discharge of all claims and demands for the services 22 rendered by the justice or judge during the period covered by the payment, except as 23 to the benefits provided for under this chapter. The contributions shall be credited to 24 the judicial retirement fund established in accordance with AS 22.25.048. 25 * Sec. 15. AS 22.25.012(a) is amended to read: 26 (a) An administrative director of the Alaska court system appointed under art. 27 IV, sec. 16 of the state constitution is a member under the judicial retirement 28 system as of the date of the administrative director's appointment and is entitled 29 to retirement benefits under this chapter on the terms and conditions applicable to a 30 superior court judge appointed after July 1, 1978, except that an administrative 31 director may receive retirement benefits only with service as administrative director
01 for 10 or more years. 02 * Sec. 16. AS 22.25.025 is amended by adding a new subsection to read: 03 (b) An amendment to this chapter does not provide a person with a vested 04 right to a benefit if the Internal Revenue Service determines that the amendment will 05 result in disqualification of the plan under the Internal Revenue Code. 06 * Sec. 17. AS 22.25.048(i) is amended to read: 07 (i) If the judicial retirement system is terminated, 08 (1) a member whose contributions have not been refunded, 09 regardless of the member's employment status at the date of the termination of 10 the system, shall be considered fully vested in the member's adjusted accrued 11 retirement benefits as of the date of the termination of the system; and 12 (2) if [IF, UPON TERMINATION OF THE SYSTEM,] all liabilities 13 are satisfied, any excess assets arising from erroneous actuarial computation shall 14 revert to the employer. 15 * Sec. 18. AS 22.25.900(1) is amended to read: 16 (1) "actuarial equivalent" means the adjustment necessary to obtain 17 equality in value of the aggregate expected payments under two different forms of 18 pension payments, considering expected mortality and interest earnings on the basis of 19 assumptions, factors and methods that clearly preclude employer discretion in 20 the determination of the amount of any justice's, judge's, or member's benefit 21 [TABLES REFERRED TO IN THE INFORMATION HANDBOOK PUBLISHED 22 UNDER AS 22.25.025]; 23 * Sec. 19. AS 39.35.010 is amended by adding a new subsection to read: 24 (d) An amendment to this chapter does not provide a person with a vested 25 right to a benefit if the Internal Revenue Service determines that the amendment will 26 result in disqualification of the plan under the Internal Revenue Code. 27 * Sec. 20. AS 39.35.120 is amended to read: 28 Sec. 39.35.120. Commencement of participation. (a) An employee of the 29 state shall be included in this system upon commencement of employment with the 30 state, or on January 1, 1961, whichever is later. Unless an employee has elected to 31 participate in the optional university retirement program under AS 14.40.661 -
01 14.40.799, an employee of a political subdivision or public organization that becomes 02 an employer shall be included in the system on the effective date of the employer's 03 participation or the date of the employee's commencement of employment with the 04 employer, whichever is later. [UNLESS THE VILLAGE PUBLIC SAFETY 05 OFFICER WAIVES COVERAGE UNDER AS 39.35.127, A VILLAGE PUBLIC 06 SAFETY OFFICER EMPLOYED UNDER THE VILLAGE PUBLIC SAFETY 07 OFFICER PROGRAM ESTABLISHED IN AS 18.65.670 IS INCLUDED IN THIS 08 SYSTEM ON THE EFFECTIVE DATE OF THIS BILL SECTION OR UPON THE 09 OFFICER'S COMMENCEMENT OF EMPLOYMENT WITH THE EMPLOYER, 10 WHICHEVER IS LATER.] 11 (b) Inclusion in the system is a condition of employment for an employee 12 except as otherwise provided for 13 (1) an elected official; 14 (2) an employee making an election under AS 39.35.150(b); and 15 (3) an employee of the university who has elected to participate in the 16 optional university retirement program under AS 14.40.661 - 14.40.799 [; AND 17 (4) A VILLAGE PUBLIC SAFETY OFFICER EMPLOYED BY A 18 NONPROFIT REGIONAL CORPORATION AS SET OUT IN AS 39.35.127]. 19 * Sec. 21. AS 39.35.165(b) is amended to read: 20 (b) An employee may elect to have the employer make payments for all or any 21 portion of the amounts payable for the employee's purchase of credited service 22 through a salary reduction program as follows: 23 (1) the amounts paid under a salary reduction program are in lieu of 24 contributions by the employee making the election; the electing employee's salary or 25 other compensation shall be reduced by the amount paid by the employer under this 26 subsection; 27 (2) the employee shall make an irrevocable election under this section 28 to purchase credited service as permitted in AS 39.35.310, 39.35.330, 39.35.340, 29 39.35.342, 39.35.345, 39.35.350, 39.35.360, 39.35.370, 39.35.375, or 39.35.381 and 30 before the employee's termination of employment; the irrevocable election must 31 specify the number of payroll periods that deductions will be made from the
01 employee's compensation and the dollar amount of deductions for each payroll period 02 during the specified number of payroll periods; the deductions made under this 03 paragraph cease upon the member's termination of employment with the 04 employer; 05 (3) [AN EMPLOYEE WHO MAKES AN ELECTION UNDER THIS 06 SECTION TO HAVE THE EMPLOYER MAKE PAYMENTS FOR LESS THAN 07 ALL OF THE AMOUNTS PAYABLE FOR THE EMPLOYEE'S PURCHASE OF 08 CREDITED SERVICE MAY SUBSEQUENTLY ELECT TO HAVE THE 09 EMPLOYER MAKE PAYMENTS FOR ALL OR ANY PORTION OF THE 10 REMAINING AMOUNTS PAYABLE FOR THE EMPLOYEE'S PURCHASE OF 11 CREDITED SERVICE; 12 (4)] amounts paid by an employer under this section shall be treated as 13 employer contributions for the purpose of determining tax treatment under the Internal 14 Revenue Code; the amounts paid by the employer under this section may not be 15 included in the member's gross income for income tax purposes until those amounts 16 are distributed by refund or retirement benefit payments. 17 * Sec. 22. AS 39.35.165(f) is amended to read: 18 (f) The [TO THE EXTENT THAT A PAYMENT UNDER THIS SECTION 19 DOES NOT ALTER, AMEND, OR REVOKE ANY ONE OR MORE CURRENTLY 20 EFFECTIVE ELECTIONS MADE BY THE EMPLOYEE, THE] board may accept 21 rollover [EMPLOYEE] contributions from a member and direct transfers, as 22 described in this subsection, for the purchase, in whole or in part, of credited 23 service for the reinstatement, in whole or in part, of service under AS 39.35.350. 24 Contributions made under this subsection may not be applied to purchase service 25 being paid under (b) of this section. A rollover contribution or transfer as 26 described in this subsection [, WHICH] shall also be treated as employer 27 contributions for the purpose of determining tax treatment under the Internal Revenue 28 Code and may be made [, FOR THE PAYMENT FOR CREDITED SERVICE 29 PURCHASES MADE UNDER THIS SECTION IN WHOLE OR IN PART,] by any 30 one or a combination of the following methods: 31 (1) subject to the limitations prescribed in 26 U.S.C. 401(a)(3) and 26
01 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more 02 retirement programs of another employer that are qualified under 26 U.S.C. 401(a) or 03 accepting rollovers directly from a member [AN EMPLOYEE]; 04 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 05 accepting from a member [AN EMPLOYEE] conduit rollover contributions that are 06 received by the employee from one or more conduit rollover individual retirement 07 accounts previously established by the member [EMPLOYEE]; 08 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 09 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 10 member [EMPLOYEE], on or [AND] after January 1, 2002, from a tax sheltered 11 annuity described in 26 U.S.C. 403(b); 12 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 13 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 14 member [EMPLOYEE], on or [AND] after January 1, 2002, from an eligible deferred 15 compensation plan of a tax-exempt organization or a state or local government 16 described in 26 U.S.C. 457(b); 17 (5) accepting direct trustee-to-trustee transfer from an account 18 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 19 Supplemental Annuity Plan). 20 * Sec. 23. AS 39.35.200(b) is amended to read: 21 (b) [IF, UPON TERMINATION OF EMPLOYMENT, AN EMPLOYEE 22 HAS CREDITED SERVICE OF LESS THAN FIVE YEARS AND HAS LESS 23 THAN $1,000 IN THE EMPLOYEE CONTRIBUTION ACCOUNT, A REFUND OF 24 THE EMPLOYEE CONTRIBUTION ACCOUNT MUST BE MADE UNLESS THE 25 EMPLOYEE INDICATES IN WRITING THAT FUTURE RETIREMENT IS 26 INTENDED AND CONTRIBUTIONS SHOULD NOT BE REFUNDED.] An 27 employee who is reemployed with an employer and whose contributions have not 28 been refunded before reemployment is not eligible for a refund. 29 * Sec. 24. AS 39.35.342(a) is amended to read: 30 (a) A [EXCEPT FOR EMPLOYMENT FOR WHICH THE EMPLOYEE 31 WAIVED COVERAGE UNDER AS 39.35.127, A] vested employee is entitled to
01 credited service for employment as a village public safety officer under the program 02 established under AS 18.65.670 for which the employee has not otherwise received 03 credited service under this system. An employee is not entitled to credited service for 04 employment as a village public safety officer unless the employee was employed as a 05 village public safety officer for at least one year. The credited service claimed 06 under this section may not exceed five years. Benefits are not payable on credited 07 service for village public safety officer service under this section unless the employee 08 makes retroactive contributions to the system for the period of time that service credit 09 is claimed. 10 * Sec. 25. AS 39.35.370(i) is amended to read: 11 (i) For system fiscal years beginning after December 31, 1975, and 12 notwithstanding [NOTWITHSTANDING] any other provision of this chapter, the 13 projected annual benefit provided by this chapter and the benefit from all other defined 14 benefit plans required to be aggregated with the benefits from this system under the 15 provisions of 26 U.S.C. 415 may not increase to an amount in excess of the amount 16 permitted under 26 U.S.C. 415 at any time. In the event that any projected annual 17 benefit of a member exceeds the limitation of 26 U.S.C. 415(g) for a limitation year, 18 the system shall take any necessary remedial action to correct an excess accrued 19 annual benefit. The provisions of 26 U.S.C. 415, and the regulations adopted under 20 that statute, as applied to qualified defined benefit plans of governmental employers 21 are incorporated as part of the terms and conditions of the system. This subsection 22 applies to any member of this system. 23 * Sec. 26. AS 39.35.371(h) is amended to read: 24 (h) Unless otherwise specified, the provisions of this section apply to calendar 25 years beginning on or after January 1, 1983 [1989]. 26 * Sec. 27. AS 39.35.680(2) is amended to read: 27 (2) "actuarial adjustment" means the adjustment necessary to obtain 28 equality in value of the aggregate expected payments under two different forms of 29 pension payments, considering expected mortality and interest earnings on the basis of 30 assumptions, factors and methods that clearly preclude employer discretion in 31 the determination of the amount of any member's benefit [TABLES REFERRED
01 TO IN THE INFORMATION HANDBOOK PUBLISHED UNDER 02 AS 39.35.060(8)]; 03 * Sec. 28. AS 39.35.680(17) is amended to read: 04 (17) "employer" means 05 (A) the State of Alaska; or 06 (B) [A NONPROFIT REGIONAL CORPORATION, BUT 07 ONLY WITH RESPECT TO VILLAGE PUBLIC SAFETY OFFICERS 08 EMPLOYED BY THE CORPORATION UNDER AS 18.65.670 WHO HAVE 09 NOT TERMINATED PARTICIPATION IN THE SYSTEM UNDER 10 AS 39.35.127; OR 11 (C)] a political subdivision or public organization of the state 12 that participates in the system; 13 * Sec. 29. AS 18.65.670(d); AS 39.35.127, and 39.35.285 are repealed. 14 * Sec. 30. The uncodified law of the State of Alaska enacted in sec. 49, ch. 59, SLA 2002, 15 is amended by adding a new subsection to read: 16 (f) Notwithstanding AS 14.25.177 and AS 39.35.547, the following provisions of this 17 Act are retroactive to January 1, 1993: 18 (1) AS 14.25.163, enacted by sec. 9 of this Act; 19 (2) AS 22.25.022, enacted by sec. 19 of this Act; 20 (3) AS 39.35.195, enacted by sec. 32 of this Act. 21 * Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 24 catchline for 25 (1) AS 14.25.050 from "Contributions by teachers" to "Contributions of 26 members"; 27 (2) AS 39.35.546 from "Tax exemption" to "State and federal taxation of 28 benefits." 29 * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 INTERNAL REVENUE SERVICE RULINGS ON PURCHASE OF CREDITED
01 SERVICE UNDER TEACHERS' RETIREMENT SYSTEMS. The commissioner of 02 administration shall promptly notify the revisor of statutes of the effective date of the 03 favorable ruling from the Internal Revenue Service that, under 26 U.S.C. 414(h)(2), the 04 amounts paid by the employer under AS 14.25.075(b)(3) as reimbursed by sec. 8 of this Act 05 will not be included in the member's gross income for income tax purposes until those 06 amounts are distributed by refund or retirement benefit payment. 07 * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 INTERNAL REVENUE SERVICE RULINGS ON PURCHASE OF CREDITED 10 SERVICE UNDER PUBLIC EMPLOYEES' RETIREMENT SYSTEMS. The commissioner 11 of administration shall promptly notify the revisor of statutes of the effective date of the 12 favorable ruling from the Internal Revenue Service that, under 26 U.S.C. 414(h)(2), the 13 amounts paid by the employer under AS 39.35.165(b)(3) as reimbursed by sec. 21 of this Act 14 will not be included in the member's gross income for income tax purposes until those 15 amounts are distributed by refund or retirement benefit payment. 16 * Sec. 34. Section 8 of this Act takes effect on the date contained in the notification to the 17 revisor of statutes by the commissioner of administration under sec. 32 of this Act. 18 * Sec. 35. Section 21 of this Act takes effect on the date contained in the notification to the 19 revisor of statutes by the commissioner of administration under sec. 33 of this Act. 20 * Sec. 36. Sections 1 - 7, 9 - 20, and 22 - 33 of this Act take effect immediately under 21 AS 01.10.070(c).