CSHB 475(STA): "An Act relating to the supplemental employee benefit program; relating to teachers' and public employees' defined benefit retirement plans; relating to teachers' and public employees' defined contribution retirement plans; relating to the health reimbursement arrangement plan for certain teachers and public employees; clarifying eligibility for membership in the health reimbursement arrangement plan; relating to waiver of adjustments under the teachers' defined benefit retirement plan and the public employees' defined benefit retirement plan; relating to the administrator of the Public Employees' Retirement System of Alaska; relating to employer contributions for occupational disability and death benefits; repealing participation in the teachers' defined contribution and defined benefit retirement plans by certain employees of the National Education Association of Alaska; relating to requirements for employer minimum contributions to the teachers' and the public employees' defined benefit retirement systems; relating to the public employees' defined benefit deferred compensation program; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 475(STA) 01 "An Act relating to the supplemental employee benefit program; relating to teachers' 02 and public employees' defined benefit retirement plans; relating to teachers' and public 03 employees' defined contribution retirement plans; relating to the health reimbursement 04 arrangement plan for certain teachers and public employees; clarifying eligibility for 05 membership in the health reimbursement arrangement plan; relating to waiver of 06 adjustments under the teachers' defined benefit retirement plan and the public 07 employees' defined benefit retirement plan; relating to the administrator of the Public 08 Employees' Retirement System of Alaska; relating to employer contributions for 09 occupational disability and death benefits; repealing participation in the teachers' 10 defined contribution and defined benefit retirement plans by certain employees of the 11 National Education Association of Alaska; relating to requirements for employer 12 minimum contributions to the teachers' and the public employees' defined benefit
01 retirement systems; relating to the public employees' defined benefit deferred 02 compensation program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.25.006 is amended to read: 05 Sec. 14.25.006. Appeals. An employer, member, annuitant, or beneficiary may 06 appeal a decision made by the administrator to the office of administrative hearings 07 established under AS 44.64. The final decision under AS 44.64 is delegated to the 08 administrative law judge and shall issue within 180 days after the date the 09 administrator receives the appeal, unless the administrative law judge and all 10 parties agree to another time. An aggrieved party may appeal a final decision to the 11 superior court. 12 * Sec. 2. AS 14.25.070(a) is amended to read: 13 (a) An employer shall make contributions to the plan in accordance with this 14 section and as certified by the board in an amount sufficient, after subtracting 15 member contributions, to provide the benefits of AS 14.25.009 - 14.25.220. The 16 amount shall be calculated by applying the normal cost rate to the sum total of the 17 base salaries paid to members in the plan and by applying the past service rate to 18 the sum total of the base salaries paid to members in the system [AN EMPLOYER 19 CONTRIBUTION RATE, CERTIFIED BY THE BOARD, AGAINST THE SUM 20 TOTAL OF THE BASE SALARIES PAID TO MEMBERS], including any 21 adjustments to contributions required by AS 14.25.173(a). The employer shall remit 22 this amount to the administrator in accordance with AS 14.25.065. 23 * Sec. 3. AS 14.25.070 is amended by adding a new subsection to read: 24 (d) The employer contribution rate may not be less than the rate required, after 25 subtracting the member contribution rate, to fully fund the actuarially calculated 26 benefits expected to be earned by active members during the fiscal year. 27 * Sec. 4. AS 14.25.070 is amended by adding new subsections to read: 28 (e) In (a) of this section, "normal cost rate" means the percentage of 29 compensation of all active members in the plan that, when combined with the member 30 contribution rate of active members in the plan, is sufficient to provide the benefits
01 that are expected to be credited with respect to service during the year beginning after 02 the last valuation date. This percentage is uniformly determined for all employers and 03 is applicable to each employer. 04 (f) In (a) of this section, "past service rate" means the percentage of 05 compensation of all active members in the system necessary to provide the annual 06 amount required to amortize the unfunded obligations of the employers for benefits 07 earned by members in the plan before the date of the last actuarial valuation over a 08 period not to exceed the maximum period allowed by generally accepted accounting 09 principles of the Governmental Accounting Standards Board. This percentage is 10 uniformly determined for all employers and is applicable to each employer. 11 * Sec. 5. AS 14.25.125(c) is amended to read: 12 (c) Membership service for which contributions were refunded is not 13 creditable under this section [UNLESS THE REFUNDED CONTRIBUTIONS HAVE 14 BEEN REPAID. FOR PURPOSES OF THIS SECTION, A MEMBER OR FORMER 15 MEMBER DOES NOT HAVE TO BE REEMPLOYED UNDER THIS PLAN IN 16 ORDER TO REPAY REFUNDED CONTRIBUTIONS. COMPOUND INTEREST 17 AT THE RATE PRESCRIBED BY REGULATION MUST BE ADDED TO THE 18 REINSTATEMENT INDEBTEDNESS FROM THE DATE OF THE REFUND TO 19 THE DATE OF REPAYMENT]. 20 * Sec. 6. AS 14.25.350, as enacted by sec. 35, ch. 9, FSSLA 2005, is amended by adding a 21 new subsection to read: 22 (e) An employer shall make annual contributions to a trust account in the plan, 23 applied as a percentage of each member's compensation from July 1 to the following 24 June 30, in an amount determined by the board to be actuarially required to fully fund 25 the cost of providing occupational disability and occupational death benefits under 26 AS 14.25.485 and 14.25.487. 27 * Sec. 7. AS 14.25.470(g), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 28 (g) An eligible person shall make the irrevocable election to participate or not 29 participate in the retiree major medical insurance plan by reaching 70 1/2 years of age, 30 or upon application for retirement and medical benefits, whichever is later. The 31 administrator may require an eligible person who deferred participation in the
01 retiree major medical insurance plan at the time the person applied for 02 retirement to show evidence of insurability or provide a letter of coverage when 03 the person later applies to participate in the retiree major medical insurance 04 plan. If the person does not establish insurability or provide a letter of coverage, 05 the administrator may deny participation by the person in the retiree major 06 medical insurance plan. 07 * Sec. 8. AS 14.25.485(c), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 08 (c) If the disabled member becomes ineligible to receive occupational 09 disability benefits before the normal retirement date, the disabled member shall then 10 be entitled to receive retirement benefits if the member would have been eligible for 11 the benefit had employment continued during the period of disability. The period of 12 disability constitutes membership service for the purposes of [IN REGARD TO] 13 determining vesting in employer contributions under AS 14.25.390(b) and 14 eligibility for retirement and medical benefits under this chapter and AS 39.30.300 15 - 39.30.495. 16 * Sec. 9. AS 14.25.485(d), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 17 (d) The monthly amount of an occupational disability benefit is 40 percent of 18 the disabled member's gross monthly compensation at the time of termination due to 19 disability. A member is not entitled to elect distributions from the member's 20 individual contribution account under AS 14.25.410 while the member is 21 receiving disability benefits under this section. While a member is receiving 22 disability benefits, based on the disabled member's gross monthly compensation at the 23 time of termination due to disability, the employer shall make contributions to the 24 (1) member's individual account under AS 14.25.340 on behalf of the 25 member, without deduction from the member's disability payments; and 26 (2) appropriate accounts and funds on behalf of the member under 27 AS 14.25.350. 28 * Sec. 10. AS 14.25.485(g), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 29 (g) A disabled member's occupational disability benefit terminates the last 30 day of the month following the date [WHEN] the disabled member first qualifies 31 [ATTAINS ELIGIBILITY] for normal retirement. At that time, the member's
01 retirement benefit shall be determined under the provisions of AS 14.25.420 - 02 14.25.440, 14.25.470, and 14.25.480. A member whose occupational disability 03 benefit terminates under this subsection [RECEIVING DISABILITY BENEFITS 04 UP UNTIL ELIGIBILITY FOR RETIREMENT] shall be considered to have retired 05 directly from the plan. 06 * Sec. 11. AS 14.25.485(i), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 07 (i) Upon the death of a disabled member who is receiving or is entitled to 08 receive an occupational disability benefit, the administrator shall pay the surviving 09 spouse a surviving spouse's pension, equal to 40 percent of the member's monthly 10 compensation at the termination of employment because of occupational disability. If 11 there is no surviving spouse, the administrator shall pay the survivor's pension in equal 12 parts to the dependent children of the member. The first payment of the surviving 13 spouse's pension or of a dependent child's pension shall accrue from the first day of 14 the month following the member's death and is payable the last day of the month. The 15 last payment shall be made the last day of [FOR] the last month in which there is an 16 eligible surviving spouse or dependent child, or the last day of the month following 17 the earliest date the member would have first qualified for normal retirement if 18 the member had survived, whichever day comes sooner. A retirement benefit 19 shall be determined under the provisions of AS 14.25.420 - 14.25.440, 14.25.470, 20 and 14.25.480 based on [. ON] the date the member would have first qualified for 21 normal retirement [OF THE MEMBER WOULD HAVE OCCURRED] if the member 22 had survived. For the purpose of determining eligibility of a survivor who is 23 receiving a benefit under this subsection for medical benefits under AS 14.25.470 24 - 14.25.480, a [LIVED, THE RETIREMENT BENEFIT SHALL BE DETERMINED 25 UNDER THE PROVISIONS OF AS 14.25.420 - 14.25.440, 14.25.470, AND 26 14.25.480. A] member who died while receiving disability benefits shall be considered 27 to have retired directly from the plan on the date the member would have first 28 qualified for normal retirement [OF THE MEMBER WOULD HAVE OCCURRED] 29 if the member had survived. The period during which the member was eligible for 30 a disability benefit and the period during which a survivor's pension is paid to a 31 survivor under this subsection each constitute membership service for the
01 purposes of determining vesting in employer contributions under AS 14.25.390(b) 02 and eligibility for retirement and medical benefits under this chapter and 03 AS 39.30.300 - 39.30.495 [LIVED]. 04 * Sec. 12. AS 14.25 is amended by adding a new section to read: 05 Sec. 14.25.486. Disability benefit adjustment. (a) Once each year, the 06 administrator shall increase disability benefits. The amount of the increase is a 07 percentage of the current disability benefit equal to the lesser of 75 percent of the 08 increase in the cost of living in the preceding calendar year or nine percent. 09 (b) If a disabled member was not receiving a benefit during the entire 10 preceding calendar year, the increase in the benefit under this section shall be adjusted 11 by multiplying it by a fraction, the numerator of which is the number of months for 12 which the benefit was received in the preceding calendar year and the denominator of 13 which is 12. 14 (c) An increase in benefit payments under this section is effective July 1 of 15 each year and is based on the percentage increase in the Consumer Price Index for 16 urban wage earners and clerical workers for Anchorage, Alaska, during the previous 17 calendar year, as determined by the United States Department of Labor, Bureau of 18 Labor Statistics. 19 (d) Benefit adjustments under this section shall terminate the last day of the 20 month following the date on which a disabled member is no longer receiving a 21 disability benefit under AS 14.25.485. 22 * Sec. 13. AS 14.25.487(b), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 23 (b) The first payment of the surviving spouse's pension or of a dependent 24 child's pension shall be made for the month following the month in which the member 25 dies. Payments [, AND PAYMENT] shall cease on the last day of the month in 26 which there is no longer an eligible spouse or eligible dependent child, or the last 27 day of the month following the earliest date [TO BE MADE BEGINNING WITH 28 THE MONTH IN WHICH] the member would have first qualified for normal 29 retirement if the member had survived, whichever day is sooner. 30 * Sec. 14. AS 14.25.487(c), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 31 (c) The monthly survivor's pension in (b) of this section for survivors of
01 members is 40 percent of the member's monthly compensation in the month in which 02 the member dies. While the monthly survivor's pension is being paid, the survivor 03 is not entitled to elect distributions from the member's individual contribution 04 account under AS 14.25.410, except as required by AS 14.25.440. While the 05 monthly survivor's pension is being paid, the employer shall make contributions on 06 behalf of the member's surviving spouse and member's surviving dependent 07 children [BENEFICIARIES] based on the deceased member's gross monthly 08 compensation at the time of occupational death 09 (1) to the member's individual account under AS 14.25.340, without 10 deduction from the survivor's pension; and 11 (2) to the appropriate accounts and funds on behalf of the member 12 under AS 14.25.350. 13 * Sec. 15. AS 14.25.487(e), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 14 (e) On the date the member would have first qualified for normal retirement 15 [OF THE MEMBER WOULD HAVE OCCURRED] if the member had survived 16 [LIVED], the retirement benefit shall be determined under the provisions of 17 AS 14.25.420 - 14.25.440, 14.25.470, and 14.25.480. A member who died and whose 18 survivors receive occupational death benefits under this section shall be considered to 19 have retired directly from the plan on the date the [NORMAL RETIREMENT OF 20 THE] member would have first qualified for normal retirement [OCCURRED] if 21 the member had survived. The period of time during which a survivor's pension is 22 paid under this section constitutes membership service for the purposes of 23 determining vesting in employer contributions under AS 14.25.390(b) and 24 eligibility for retirement and medical benefits under this chapter and 25 AS 39.30.300 - 39.30.495 [LIVED]. 26 * Sec. 16. AS 14.25 is amended by adding new sections to read: 27 Sec. 14.25.488. Survivor's pension adjustment. (a) Once each year, the 28 administrator shall increase payments to a person 60 years of age or older receiving a 29 survivor's pension under AS 14.25.485(i) or 14.25.487(c) and to a person who has 30 received a survivor's pension under AS 14.25.485(i) or 14.25.487(c) for at least eight 31 years, who is not otherwise eligible for an increase under this section.
01 (b) The amount of the increase is a percentage of the current survivor's 02 pension equal to the lesser of 50 percent of the increase in the cost of living in the 03 preceding calendar year or six percent. 04 (c) If a survivor was not receiving a pension during the entire preceding 05 calendar year, the increase in the survivor's pension under this section shall be 06 adjusted by multiplying it by a fraction, the numerator of which is the number of 07 months for which the pension was received in the preceding calendar year and the 08 denominator of which is 12. 09 (d) The administrator shall increase the initial survivor's pension paid to a 10 survivor of a member who died while receiving disability benefits by a percentage 11 equal to the total cumulative percentage that has been applied to the member's 12 disability benefit under AS 14.25.486. 13 (e) An increase in benefit payments under this section is effective July 1 of 14 each year and is based on the percentage increase in the Consumer Price Index for 15 urban wage earners and clerical workers for Anchorage, Alaska, during the previous 16 calendar year, as determined by the United States Department of Labor, Bureau of 17 Labor Statistics. 18 (f) Pension adjustments under this section shall terminate the last day of the 19 month following the date on which a survivor is no longer receiving a survivor's 20 pension under AS 14.25.485(i) or 14.25.487(e). 21 Sec. 14.25.489. Premiums for retiree major medical insurance coverage 22 upon termination of disability benefits or survivor's pension. The premium for 23 retiree major medical insurance coverage payable by a member whose disability 24 benefit is terminated under AS 14.25.485(g) or by an eligible survivor whose survivor 25 pension is terminated under AS 14.25.485(i) or 14.25.487(e) when the member would 26 have been eligible for normal retirement if the member had survived shall be 27 determined under AS 14.25.480(g)(2) as if the member or survivor were eligible for 28 Medicare. 29 * Sec. 17. AS 14.25.540(d), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 30 (d) Upon a transfer, all membership service previously earned under the 31 defined benefit retirement plan shall be nullified for purposes of entitlement to a future
01 benefit under the defined benefit retirement plan but shall be credited for purposes of 02 determining vesting in employer contributions under AS 14.25.390(b) and 03 eligibility to elect medical benefits under AS 14.25.470. Membership service allowed 04 for credit toward medical benefits does not include any service credit purchased under 05 AS 14.25.075 for employment by an employer who is not a participating employer in 06 this chapter. 07 * Sec. 18. AS 14.25.540(h), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 08 (h) A member who is eligible to elect transfer to the defined contribution 09 plan must make the election not later than 12 months after the member's 10 employer notifies the administrator that the member's employer consents to 11 transfers of its members under (i) of this section. The election to participate in the 12 defined contribution retirement plan must be made in writing on forms and in the 13 manner prescribed by the administrator. Before accepting an election to participate in 14 the defined contribution retirement plan, the administrator must provide the employee 15 planning on making an election to participate in the defined contribution retirement 16 plan with information, including calculations to illustrate the effect of moving the 17 employee's retirement plan from the defined benefit retirement plan to the defined 18 contribution retirement plan as well as other information to clearly inform the 19 employee of the potential consequences of the employee's election. An election made 20 under this subsection to participate in the defined contribution retirement plan is 21 irrevocable. Upon making the election, the participant shall be enrolled as a member 22 of the defined contribution retirement plan, the member's participation in the plan shall 23 be governed by the provisions of AS 14.25.310 - 14.25.590, and the member's 24 participation in the defined benefit retirement plan under AS 14.25.009 - 14.25.220 25 shall terminate. The participant's enrollment in the defined contribution retirement 26 plan shall be effective the first day of the month after the administrator receives the 27 completed enrollment forms. An election made by an eligible member who is married 28 is not effective unless the election is signed by the individual's spouse. 29 * Sec. 19. AS 14.25.540(i), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended to read: 30 (i) A member may make an election under this section only if the member's 31 employer participates in both the defined benefit retirement plan and the defined
01 contribution retirement plan and consents to transfers under this section. The employer 02 shall notify the administrator if the employer consents to allowing the employer's 03 members to choose to transfer from the defined benefit retirement plan to the defined 04 contribution retirement plan under this section. The initial period during which the 05 employer's members may choose to transfer commences on the first day of the 06 month following the administrator's receipt of notice under this subsection and 07 continues for 12 months. An employer may consent to a second period of 12 08 months during which the employer's members may choose to transfer from the 09 defined benefit retirement plan to the defined contribution retirement plan under 10 this section. The second period commences on the first day of the month 11 following the administrator's receipt of notice under this subsection and 12 continues for 12 months. An employer's notice to allow transfers is irrevocable and 13 applicable to all eligible employees of the employer. 14 * Sec. 20. AS 14.25.540(j), as enacted by sec. 35, ch. 9, FSSLA 2005, is amended by adding 15 a new paragraph to read: 16 (3) "membership service" has the meaning given in AS 14.25.220 and 17 does not include any service for which reinstatement indebtedness has not been fully 18 paid. 19 * Sec. 21. AS 39.30.160(a) is amended to read: 20 (a) The Department of Administration shall, in accordance with policies 21 prescribed by regulations adopted by the commissioner [OF THE ALASKA 22 RETIREMENT MANAGEMENT BOARD], provide to employees for whom special 23 individual employee benefit accounts are established under AS 39.30.150(c) the 24 following benefit options: 25 (1) supplemental health benefits; 26 (2) supplemental death benefits; 27 (3) supplemental disability benefits; and 28 (4) supplemental dependent care benefits. 29 * Sec. 22. AS 39.30.160(e) is amended to read: 30 (e) Regulations adopted by the commissioner [BOARD] implementing 31 AS 39.30.150 and this section are not subject to AS 44.62 (Administrative Procedure
01 Act). 02 * Sec. 23. AS 39.30 is amended by adding a new section to read: 03 Sec. 39.30.165. Appeals. A final decision made under AS 39.30.150 - 04 39.30.180 is subject to appeal under AS 44.64. The final decision under AS 44.64 is 05 delegated to the administrative law judge and shall issue within 180 days after the date 06 the administrator receives the appeal, unless the administrative law judge and all 07 parties agree to another time. 08 * Sec. 24. AS 39.30 is amended by adding a new section to read: 09 Sec. 39.30.335. Appeals. A final decision made under AS 39.30.300 - 10 39.30.495 is subject to appeal under AS 44.64. The final decision under AS 44.64 is 11 delegated to the administrative law judge and shall issue within 180 days after the date 12 the administrator receives the appeal, unless the administrative law judge and all 13 parties agree to another time. 14 * Sec. 25. AS 39.30.370, as enacted by sec. 80, ch. 9, FSSLA 2005, is amended to read: 15 Sec. 39.30.370. Contributions by employers. For each member of the plan, 16 an employer shall contribute to the teachers' and public employees' retiree health 17 reimbursement arrangement plan trust fund an amount equal to three percent of the 18 average annual compensation of all employees of employers in the plan 19 [EMPLOYER'S AVERAGE ANNUAL EMPLOYEE COMPENSATION]. The 20 administrator shall maintain a record for each member to account for employer 21 contributions on behalf of that member. The board shall establish by regulation the 22 rate of interest to be applied annually to the amount in a member's individual account. 23 * Sec. 26. AS 39.30.380, as enacted by sec. 80, ch. 9, FSSLA 2005, is amended to read: 24 Sec. 39.30.380. Termination of employment. A person who terminates 25 employment before meeting the eligibility requirements of AS 39.30.390 26 [AS 14.25.470 OR AS 39.35.870] loses any right to the contributions made on behalf 27 of the person to the teachers' and public employees' retiree health reimbursement 28 arrangement trust fund. If a person returns to employment with a participating 29 employer by December 31 of the year in which the person reaches 65 years of age, the 30 person's account balance shall be restored in the amount recorded on the date of 31 termination from the trust, adjusted for inflation at the rate of the Consumer Price
01 Index for Anchorage, Alaska. The earlier period of employment with a participating 02 employer shall be credited toward eligibility for medical benefits. 03 * Sec. 27. AS 39.30.390, as enacted by sec. 80, ch. 9, FSSLA 2005, is amended to read: 04 Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the 05 eligibility requirements of AS 14.25.470 or [AND] AS 39.35.870 are eligible for 06 reimbursements from the individual account established for a member under the plan, 07 except members do not have to retire directly from the system. A person who is the 08 dependent child of an eligible member is eligible for reimbursements if the eligible 09 member and surviving spouse have both died so long as the person meets the 10 definition of dependent child. 11 * Sec. 28. AS 39.35.006 is amended to read: 12 Sec. 39.35.006. Appeals. An employer, member, annuitant, or beneficiary may 13 appeal a decision made by the administrator to the office of administrative hearings 14 established under AS 44.64. The final decision under AS 44.64 is delegated to the 15 administrative law judge and shall issue within 180 days after the date the 16 administrator receives the appeal, unless the administrative law judge and all 17 parties agree to another time. An aggrieved party may appeal a final decision to the 18 superior court. 19 * Sec. 29. AS 39.35.250 is amended to read: 20 Sec. 39.35.250. Calculation of employer's contribution rate. (a) An 21 employer shall make contributions to the plan in amounts determined in accordance 22 with this section. For the purposes of this section, the past service date for each 23 employer is the entry date of the employer or December 31, 1972, whichever is later. 24 After December 31, 1972, if amendments to AS 39.35.095 - 39.35.680 are enacted that 25 substantially affect benefits accrued before the effective date of the amendment, the 26 past service date will be changed to December 31 of the year immediately preceding 27 that in which the amendment is enacted. The contribution rate is the sum of the 28 consolidated employer normal cost rate and the past service rate as certified by the 29 board. 30 (b) In (a) of this section, "consolidated employer normal cost rate" means the 31 percentage of compensation of all active employees in the plan which, if paid over the
01 period of [THEIR] credited service of active employees in the plan after the 02 [THEIR] past service date and when combined with all employee contributions to the 03 plan, is sufficient to provide the benefits earned after such past service dates. This 04 percentage is [UNIFORMLY] determined at the plan level for all employers and is 05 applicable to each employer. 06 (c) In (a) of this section, "past service rate" means the percentage of 07 compensation of all active employees in the system [PLAN] necessary to provide the 08 annual amount required to amortize the unfunded obligations of the employer for 09 benefits earned by the employer's members in the plan before the date of the last 10 actuarial valuation [EMPLOYER'S PAST SERVICE DATE] over a period not to 11 exceed the maximum allowed by generally accepted accounting principles of the 12 Governmental Accounting Standards Board [40 YEARS. THE PERIOD OF 13 AMORTIZATION BEGINS AT THE PAST SERVICE DATE OF EACH 14 EMPLOYER]. The percentage is separately determined for each employer. 15 * Sec. 30. AS 39.35.270(a) is amended to read: 16 (a) The amount of each employer's contributions shall be determined by 17 applying the consolidated employer normal cost [EMPLOYER'S 18 CONTRIBUTION] rate [, AS CERTIFIED BY THE BOARD,] to the total 19 compensation paid to the employer's active employees of the plan and by applying 20 the employer's past service rate to the total compensation paid to the employer's 21 active employees in the system [EMPLOYER] for each payroll period, [AND BY] 22 including any adjustments to contributions required by AS 39.35.520(a). This amount 23 shall be remitted by the employer to the administrator in accordance with 24 AS 39.35.610. 25 * Sec. 31. AS 39.35.270 is amended by adding a new subsection to read: 26 (d) The employer contribution rate may not be less than the rate required, after 27 subtracting the member contribution rate, to fully fund the actuarially calculated 28 benefits expected to be earned by active members during a fiscal year. 29 * Sec. 32. AS 39.35.375(a) is amended to read: 30 (a) An active or inactive member who has never been vested in this plan or in 31 the teachers' retirement plan under AS 14.25.009 - 14.25.220, who has at least two
01 years of credited service in this plan, and who has membership service in the teachers' 02 retirement system may claim credited service in this plan in an amount equal to the 03 membership service the member has in the teachers' retirement system. The claimed 04 credited service may be added to service earned under AS 39.35.095 - 39.35.680 to 05 enable the member to qualify for a public service benefit under this section. The 06 member may not claim credited service for membership service for which the member 07 has received a refund under AS 14.25.150 [UNLESS THE MEMBER FULLY PAYS 08 THE INDEBTEDNESS AS ESTABLISHED UNDER AS 14.25.063]. The member 09 may not claim credited service in this plan based on unused sick leave under 10 AS 14.25.115. 11 * Sec. 33. AS 39.35.385(c) is amended to read: 12 (c) Credited service for which contributions were refunded is not creditable 13 under this section [UNLESS THE REFUNDED CONTRIBUTIONS HAVE BEEN 14 REPAID. FOR PURPOSES OF (a) AND (b) OF THIS SECTION, A MEMBER OR 15 FORMER MEMBER DOES NOT HAVE TO BE REEMPLOYED UNDER THIS 16 PLAN IN ORDER TO PAY REFUNDED CONTRIBUTIONS. COMPOUND 17 INTEREST AT THE RATE PRESCRIBED BY REGULATION SHALL BE ADDED 18 TO THE REINSTATEMENT INDEBTEDNESS FROM THE DATE OF THE 19 REFUND TO THE DATE OF REPAYMENT]. 20 * Sec. 34. AS 39.35.522(d) is amended to read: 21 (d) A ruling of the [THE] commissioner of administration denying a waiver 22 under this section may be appealed under AS 44.64. The administrative law 23 judge may reverse the ruling of the commissioner and may impose equitable 24 conditions on the granting of a waiver [WHICH IT CONSIDERS EQUITABLE]. 25 These conditions may include requiring the member or beneficiary to make additional 26 contributions to the plan. 27 * Sec. 35. AS 39.35.680(3) is amended to read: 28 (3) "administrator" means [THE PERSON APPOINTED BY] the 29 commissioner of administration or the commissioner's designee appointed under 30 AS 39.35.003 [AS 39.35.050]; 31 * Sec. 36. AS 39.35.750(e), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read:
01 (e) An employer shall make annual contributions to a trust account in the 02 plan, applied as a percentage of each member's compensation from July 1 to the 03 following June 30, in an amount determined by the board to be actuarially required to 04 fully fund the cost of providing occupational disability and occupational death benefits 05 under AS 39.35.890 and 39.35.892 and retirement benefits elected by disabled 06 peace officers and fire fighters under AS 39.35.890(h)(2). The contribution required 07 under this subsection for peace officers and fire fighters and the contribution required 08 under this subsection for other employees shall be separately calculated based on the 09 actuarially calculated costs for each group of employees. 10 * Sec. 37. AS 39.35.870(g), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 11 (g) An eligible person must make the irrevocable election to participate or not 12 participate in the retiree major medical insurance plan by reaching 70 1/2 years of age, 13 or upon application for retirement and medical benefits, whichever is later. The 14 administrator may require an eligible person who deferred participation in the 15 retiree major medical insurance plan at the time the person applied for 16 retirement to show evidence of insurability or provide a letter of coverage when 17 the person later applies to participate in the retiree major medical insurance 18 plan. If the person does not establish insurability or provide a letter of coverage, 19 the administrator may prohibit participation by the person in the retiree major 20 medical insurance plan. 21 * Sec. 38. AS 39.35.890(c), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 22 (c) If the disabled employee becomes ineligible to receive occupational 23 disability benefits before the normal retirement date, the disabled employee shall then 24 be entitled to receive retirement benefits if the employee would have been eligible for 25 the benefit had employment continued during the period of disability. The period of 26 disability constitutes membership service for the purposes of [IN REGARD TO] 27 determining vesting in employer contributions under AS 39.35.790(b) and 28 eligibility for retirement and medical benefits under this chapter and AS 39.30.300 29 - 39.30.495. 30 * Sec. 39. AS 39.35.890(d), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 31 (d) The monthly amount of an occupational disability benefit is 40 percent of
01 the disabled employee's gross monthly compensation at the time of termination due to 02 disability. An employee is not entitled to elect distributions from the employee's 03 individual contribution account under AS 39.35.810 while the employee is 04 receiving disability benefits under this section. While an employee is receiving 05 disability benefits, based on the disabled employee's gross monthly compensation at 06 the time of termination due to disability, the employer shall make contributions 07 (1) to the employee's individual account under AS 39.35.730 on behalf 08 of the employee, without deduction from the employee's disability payments; and 09 (2) on behalf of the employee under AS 39.35.750. 10 * Sec. 40. AS 39.35.890(g), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 11 (g) A disabled employee's occupational disability benefit terminates the last 12 day of the month [WHEN] the disabled employee first qualifies [ATTAINS 13 ELIGIBILITY] for normal retirement. At that time, the employee's retirement benefit 14 shall be determined under the provisions of AS 39.35.820 - 39.35.840, 39.35.870, and 15 39.35.880. An employee whose occupational disability benefit terminates under 16 this subsection [RECEIVING DISABILITY BENEFITS UP UNTIL ELIGIBILITY 17 FOR RETIREMENT] shall be considered to have retired directly from the plan. 18 * Sec. 41. AS 39.35.890(h), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 19 (h) Notwithstanding (g) of this section, at the time a peace officer or fire 20 fighter receiving occupational disability benefits under this section first attains 21 eligibility for normal retirement, the employee shall irrevocably elect to receive 22 retirement benefits in the amount calculated as the 23 (1) employee's retirement benefit calculated under the provisions of 24 AS 39.35.820 - 39.35.840; or 25 (2) employee's retirement benefit calculated as if the provisions of 26 AS 39.35.370(c) were to apply; however, retirement benefits paid under this paragraph 27 must be paid first from the peace officer's or fire fighter's individual contribution 28 account, and the remaining benefits must be paid from the trust account 29 established under AS 39.35.750(e); the peace officer or fire fighter may not elect 30 other distributions from the peace officer's or fire fighter's individual 31 contribution account under AS 39.35.810 while receiving retirement benefits
01 under this paragraph [MAY NOT BE MADE FROM THE TRUST FUND OF THE 02 PUBLIC EMPLOYEES' DEFINED BENEFIT RETIREMENT PLAN]. 03 * Sec. 42. AS 39.35.890(k), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 04 (k) Upon the death of a disabled employee who is receiving or is entitled to 05 receive an occupational disability benefit, the administrator shall pay the surviving 06 spouse a surviving spouse's pension, equal to 40 percent of the employee's monthly 07 compensation at the termination of employment because of occupational disability. If 08 there is no surviving spouse, the administrator shall pay the survivor's pension in equal 09 parts to the dependent children of the employee. The first payment of the surviving 10 spouse's pension or of a dependent child's pension shall accrue from the first day of 11 the month following the employee's death and is payable the last day of the month. 12 The last payment shall be made the last day of [FOR] the last month in which there is 13 an eligible surviving spouse or dependent child, or the last day of the month 14 following the earliest date the employee would have first qualified for normal 15 retirement if the employee had survived, whichever day comes sooner. A 16 retirement benefit shall be determined under the provisions of AS 39.35.820 - 17 39.35.840, 39.35.870, and 39.35.880 based on [. ON] the date the employee would 18 have first qualified for normal retirement [OF THE EMPLOYEE WOULD HAVE 19 OCCURRED] if the employee had survived. For the purpose of determining 20 eligibility of an employee's survivor who is receiving a benefit under this 21 subsection for medical benefits under AS 39.35.870 - 39.35.880, an employee 22 [LIVED, THE RETIREMENT BENEFIT SHALL BE DETERMINED UNDER THE 23 PROVISIONS OF AS 39.35.820 - 39.35.840, 39.35.870, AND 39.35.880. AN 24 EMPLOYEE] who died while receiving disability benefits shall be considered to have 25 retired directly from the plan on the date the employee would have first qualified for 26 normal retirement if the employee had survived. The period during which the 27 employee was eligible for a disability benefit and the period during which a 28 survivor's pension is paid to a survivor under this subsection each constitute 29 membership service for the purposes of determining vesting in employer 30 contributions under AS 39.35.790(b) and eligibility for retirement and medical 31 benefits under this chapter and AS 39.30.300 - 39.30.495 [NORMAL
01 RETIREMENT OF THE EMPLOYEE WOULD HAVE OCCURRED IF THE 02 EMPLOYEE HAD LIVED]. 03 * Sec. 43. AS 39.35 is amended by adding a new section to read: 04 Sec. 39.35.891. Disability benefit and disabled peace officer or fire fighter 05 retirement benefit adjustment. (a) Once each year, the administrator shall increase 06 disability benefits and retirement benefits elected by disabled peace officers or fire 07 fighters under AS 39.35.890(h)(2). The amount of the increase is a percentage of the 08 current disability benefit or retirement benefit equal to the lesser of 75 percent of the 09 increase in the cost of living in the preceding calendar year or nine percent. 10 (b) If a disabled member was not receiving a benefit during the entire 11 preceding calendar year, the increase in the benefit under this section shall be adjusted 12 by multiplying it by a fraction, the numerator of which is the number of months for 13 which the benefit was received in the preceding calendar year and the denominator of 14 which is 12. 15 (c) If a disabled peace officer or fire fighter elects to receive a retirement 16 benefit in the amount calculated under AS 39.35.890(h)(2), the administrator shall, at 17 the time the disabled peace officer or fire fighter is appointed to retirement, increase 18 the retirement benefit by a percentage equal to the total cumulative percentage that has 19 been applied to the disabled peace officer's or fire fighter's disability benefit under this 20 section. 21 (d) An increase in benefit payments under this section is effective July 1 of 22 each year and is based on the percentage increase in the Consumer Price Index for 23 urban wage earners and clerical workers for Anchorage, Alaska, during the previous 24 calendar year, as determined by the United States Department of Labor, Bureau of 25 Labor Statistics. 26 (e) Benefit adjustments under this section shall terminate the last day of the 27 month following the date on which a disabled member is no longer receiving a 28 disability benefit under AS 39.35.890, unless the member is a disabled peace officer or 29 fire fighter and has chosen a retirement benefit under AS 39.35.890(h)(2). 30 * Sec. 44. AS 39.35.892(b), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 31 (b) The first payment of the surviving spouse's pension or of a dependent
01 child's pension shall be made for the month following the month in which the 02 employee dies. Payments [, AND PAYMENT] shall cease on the last day of the 03 month in which there is no longer an eligible spouse or eligible dependent child, 04 or the last day of the month following the earliest date [TO BE MADE 05 BEGINNING WITH THE MONTH IN WHICH] the employee would have first 06 qualified for normal retirement if the employee had survived, whichever day is 07 sooner. 08 * Sec. 45. AS 39.35.892(c), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 09 (c) The monthly survivor's pension in (b) of this section for survivors of 10 employees who were not peace officers or fire fighters is 40 percent of the employee's 11 monthly compensation in the month in which the employee dies. The monthly 12 survivor's pension in (b) of this section for survivors of employees who were peace 13 officers or fire fighters is 50 percent of the monthly compensation in the month in 14 which the employee dies. While the monthly survivor's pension is being paid, the 15 survivor is not entitled to elect distributions from the employee's individual 16 contribution account under AS 39.35.810, except as required by AS 39.35.840. 17 While the monthly survivor's pension is being paid, the employer shall make 18 contributions on behalf of the employee's surviving spouse and employee's 19 surviving dependent children [BENEFICIARIES] based on the deceased employee's 20 gross monthly compensation at the time of occupational death 21 (1) to the employee's individual account under AS 39.35.730, without 22 deduction from the survivor's pension; and 23 (2) to the appropriate accounts and funds under AS 39.35.750. 24 * Sec. 46. AS 39.35.892(e), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 25 (e) On the date the employee would have first qualified for normal 26 retirement [OF THE EMPLOYEE WOULD HAVE OCCURRED] if the employee 27 had survived [LIVED], the retirement benefit shall be determined under the 28 provisions of AS 39.35.820 - 39.35.840, 39.35.870, and 39.35.880. An employee who 29 died and whose survivors receive occupational death benefits under this section shall 30 be considered to have retired directly from the plan on the date the [NORMAL 31 RETIREMENT OF THE] employee would have first qualified for normal
01 retirement [OCCURRED] if the employee had survived. The period of time during 02 which a survivor's pension is paid under this section constitutes membership 03 service for the purposes of determining vesting in employer contributions under 04 AS 39.35.790(b) and eligibility for retirement and medical benefits under this 05 chapter and AS 39.30.300 - 39.30.495 [LIVED]. 06 * Sec. 47. AS 39.35 is amended by adding new sections to read: 07 Sec. 39.35.893. Survivor's pension adjustment. (a) Once each year, the 08 administrator shall increase payments to a person 60 of age or older receiving a 09 survivor's pension under AS 39.35.890(k) or 39.35.892(c) and to a person who has 10 received a survivor's pension under AS 39.35.890(k) or 39.35.892(c) for at least five 11 years, who is not otherwise eligible for an increase under this section. 12 (b) The amount of the increase is a percentage of the current survivor's 13 pension equal to the lesser of 50 percent of the increase in the cost of living in the 14 preceding calendar year or six percent. 15 (c) If a survivor was not receiving a pension during the entire preceding 16 calendar year, the increase in the survivor's pension under this section shall be 17 adjusted by multiplying it by a fraction, the numerator of which is the number of 18 months for which the pension was received in the preceding calendar year and the 19 denominator of which is 12. 20 (d) The administrator shall increase the initial survivor's pension paid to a 21 survivor of a member who died while receiving disability benefits by a percentage 22 equal to the total cumulative percentage that has been applied to the member's 23 disability benefit under AS 39.35.891. 24 (e) An increase in benefit payments under this section is effective July 1 of 25 each year and is based on the percentage increase in the Consumer Price Index for 26 urban wage earners and clerical workers for Anchorage, Alaska, during the previous 27 calendar year, as determined by the United States Department of Labor, Bureau of 28 Labor Statistics. 29 (f) Pension adjustments under this section shall terminate the last day of the 30 month following the date on which a survivor is no longer receiving a survivor's 31 pension under AS 39.35.890(k) or 39.35.892(e).
01 Sec. 39.35.894. Premiums for retiree major medical insurance coverage 02 upon termination of disability benefits or survivor's pension. The premium for 03 retiree major medical insurance coverage payable by an employee whose disability 04 benefit is terminated under AS 39.35.890(g) or by an eligible survivor whose survivor 05 pension is terminated under AS 39.35.890(k) or 39.35.892(e) when the employee 06 would have been eligible for normal retirement if the employee had survived shall be 07 determined under AS 39.35.880(g)(2) as if the employee or survivor were eligible for 08 Medicare. 09 * Sec. 48. AS 39.35.940(d), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 10 (d) Upon a transfer, all membership service previously earned under the 11 defined benefit retirement plan shall be nullified for purposes of entitlement to a future 12 benefit under the defined benefit retirement plan but shall be credited for purposes of 13 determining vesting in employer contributions under AS 39.35.790(b) and 14 eligibility to elect medical benefits under AS 39.35.870. Membership service allowed 15 for credit toward medical benefits does not include any service credit purchased for 16 employment by an employer who is not a participating employer in this chapter. 17 * Sec. 49. AS 39.35.940(h), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 18 (h) An employee who is eligible to elect transfer to the defined 19 contribution plan must make the election not later than 12 months after the 20 employee's employer notifies the administrator that the employee's employer 21 consents to transfers of its employees under (i) of this section. The election to 22 participate in the defined contribution retirement plan must be made in writing on 23 forms and in the manner prescribed by the administrator. Before accepting an election 24 to participate in the defined contribution retirement plan, the administrator must 25 provide the employee planning on making an election to participate in the defined 26 contribution retirement plan with information, including calculations to illustrate the 27 effect of moving the employee's retirement plan from the defined benefit retirement 28 plan to the defined contribution retirement plan as well as other information to clearly 29 inform the employee of the potential consequences of the employee's election. An 30 election made under this subsection to participate in the defined contribution 31 retirement plan is irrevocable. Upon making the election, the participant shall be
01 enrolled as a member of the defined contribution retirement plan, the member's 02 participation in the plan shall be governed by the provisions of AS 39.35.700 - 03 39.35.990, and the member's participation in the defined benefit retirement plan under 04 AS 39.35.115 shall terminate. The participant's enrollment in the defined contribution 05 retirement plan shall be effective the first day of the month after the administrator 06 receives the completed enrollment forms. An election made by an eligible member 07 who is married is not effective unless the election is signed by the individual's spouse. 08 * Sec. 50. AS 39.35.940(i), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to read: 09 (i) A member may make an election under this section only if the member's 10 employer participates in both the defined benefit retirement plan and the defined 11 contribution retirement plan and consents to transfers under this section. The employer 12 shall notify the administrator if the employer consents to allowing the employer's 13 members to choose to transfer from the defined benefit retirement plan to the defined 14 contribution retirement plan under this section. The initial period during which the 15 employer's members may choose to transfer commences on the first day of the 16 month following the administrator's receipt of notice under this subsection and 17 continues for 12 months. An employer may consent to a second period of 12 18 months during which the employer's members may choose to transfer from the 19 defined benefit retirement plan to the defined contribution retirement plan under 20 this section. The second period commences on the first day of the month 21 following the administrator's receipt of notice under this subsection and 22 continues for 12 months. An employer's notice to allow transfers is irrevocable and 23 applicable to all eligible employees of the employer. 24 * Sec. 51. AS 39.35.940(j), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended by 25 adding a new paragraph to read: 26 (3) "membership service" means service with a participating employer 27 under AS 39.35.095 - 39.35.680 for which contributions have been paid and does not 28 include any service for which reinstatement indebtedness has not been fully paid. 29 * Sec. 52. AS 39.35 is amended by adding new sections to read: 30 Sec. 39.35.957. Designation of eligible employees, agreement to contribute, 31 and amendment of participation. (a) A political subdivision or public organization
01 participating in the defined contribution retirement plan under AS 39.35.700 - 02 39.35.990 shall designate the departments, groups, or other classifications of 03 employees eligible to participate in the plan and, by participating, shall legally be 04 presumed to have agreed to make contributions each year in the amounts required for 05 members of the plan under AS 39.35.750. 06 (b) If the employer does not participate in the defined benefit retirement plan 07 under AS 39.35.095 - 39.35.680, an employee who is eligible under (a) of this section 08 and who is a member of the defined benefit retirement plan under AS 39.35.095 - 09 39.35.680 does not accrue credited service or make contributions under that defined 10 benefit retirement plan, but shall be a member of the defined contribution retirement 11 plan under AS 39.35.700 - 39.35.990 and make contributions under that plan. 12 (c) An employer may request to amend its participation in the plan to add or 13 exclude departments, groups, or other classifications of employees by filing a 14 resolution as provided by AS 39.35.950 or 39.35.955 with the administrator. 15 Sec. 39.35.958. Termination of participation in the plan. (a) A political 16 subdivision or public organization may request that its participation in the plan be 17 terminated. The request may be made only after adoption of a resolution by the 18 legislative body of the political subdivision and approval of the resolution by the 19 person required by law to approve the resolution, or, in the case of a public 20 organization, after adoption of a resolution by the governing body of that public 21 organization. A certified copy of the resolution shall be filed with the administrator. 22 (b) If contributions are not transmitted to the plan within the prescribed time 23 limit, the commissioner of administration may grant an extension and shall assess 24 interest on the outstanding contributions at the rate established under AS 39.35.610. If 25 the political subdivision or public organization is in default at the end of the extension, 26 participation in the plan is terminated, and it shall be sent notice of termination. 27 (c) When an employer's participation in the plan is terminated, or when an 28 employer terminates coverage of a department, group, or other classification of 29 employees under AS 39.35.957(c), the administrator shall assess the employer an 30 amount that the administrator determines is actuarially required to fully fund the costs 31 to the plan for employees whose coverage is terminated, including the cost of
01 providing the employer's share of retiree health benefits under AS 39.35.880, 02 occupational disability and occupational death benefits under AS 39.35.890 and 03 39.35.892, and retirement benefits elected under AS 39.35.890(h)(2). 04 (d) An employee whose coverage under the plan is terminated as a result of 05 termination of an employer's participation under this section or amendment of the 06 employer's agreement under AS 39.35.957(c) shall be considered fully vested in 07 employer contributions under AS 39.35.790(b) and in the individual account 08 established for the employee under AS 39.30.370. If the employee is later employed 09 with a participating employer, the employee's membership service earned under the 10 plan during employment with a terminated employer shall be credited for purposes of 11 determining vesting in employer contributions under AS 39.35.790(b) and eligibility 12 for retirement and medical benefits under this chapter and AS 39.30.300 - 39.30.495. 13 * Sec. 53. AS 39.35.990(16), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to 14 read: 15 (16) "member" or "employee" means a person who is eligible to 16 participate in the plan and who is covered by [AN EMPLOYEE OF AN 17 EMPLOYER OR FORMER EMPLOYEE OF AN EMPLOYER WHO RETAINS A 18 RIGHT TO BENEFITS UNDER] the plan, but does not include full-time or part-time 19 instructors of the Department of Labor and Workforce Development and the 20 Department of Education and Early Development in positions that require a 21 teaching certificate; 22 * Sec. 54. AS 39.35.990(20), as enacted by sec. 122, ch. 9, FSSLA 2005, is amended to 23 read: 24 (20) "peace officer" or "fire fighter" means an employee occupying a 25 position as a peace officer, chief of police, regional public safety officer, 26 correctional officer, correctional superintendent, fire fighter, fire chief, or 27 probation officer, but does not include a village public safety officer employed by 28 a village public safety officer program established under AS 18.65.670 [HAS THE 29 MEANING GIVEN IN AS 39.35.680]; 30 * Sec. 55. AS 39.45 is amended by adding a new section to read: 31 Sec. 39.45.055. Appeals. A final decision made under AS 39.45.010 -
01 39.45.060 is subject to appeal under AS 44.64. The final decision under AS 44.64 is 02 delegated to the administrative law judge and shall issue within 180 days after the date 03 the administrator receives the appeal, unless the administrative law judge and all 04 parties agree to another time. 05 * Sec. 56. AS 44.64.030(a) is amended by adding new paragraphs to read: 06 (36) AS 14.25.175 (waiver of adjustments under teachers' defined 07 benefit plan); 08 (37) AS 39.30.165 (supplemental benefits system); 09 (38) AS 39.30.335 (teachers' and public employees' health 10 reimbursement arrangement plan); 11 (39) AS 39.35.522 (waiver of adjustments under public employees' 12 defined benefit plan) 13 (40) AS 39.45.055 (public employees' deferred compensation 14 program). 15 * Sec. 57. The uncodified law of the State of Alaska enacted in sec. 134, ch. 9, FSSLA 16 2005, is amended to read: 17 Sec. 134. EMPLOYER CONTRIBUTIONS FOR OCCUPATIONAL 18 DISABILITY AND DEATH BENEFITS IN THE PUBLIC EMPLOYEES' DEFINED 19 CONTRIBUTION RETIREMENT PLAN FOR THE FIRST FISCAL YEAR THE 20 PLAN IS IN EFFECT. Notwithstanding AS 39.35.750(e), added by sec. 122, ch. 9, 21 FSSLA 2005 [OF THIS ACT], for the first fiscal year in which the public employees' 22 defined contribution retirement plan is in effect, the employer contribution to fully 23 fund the cost of providing occupational disability and occupational death benefits 24 under AS 39.35.890 and 39.35.892 shall be equal to 25 (1) 0.4 percent of the compensation for peace officers and fire fighters 26 who are members in the plan; and 27 (2) 0.3 percent of the compensation for all other employees who are 28 members in the plan. 29 * Sec. 58. AS 14.25.045, 14.25.070(b), 14.25.570; AS 39.35.050(a), and 39.35.270(b) are 30 repealed. 31 * Sec. 59. AS 39.35.375(f) is repealed July 1, 2010.
01 * Sec. 60. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 EMPLOYER CONTRIBUTIONS FOR OCCUPATIONAL DISABILITY AND 04 OCCUPATIONAL DEATH BENEFITS IN THE TEACHERS' DEFINED CONTRIBUTION 05 RETIREMENT PLAN FOR THE FIRST FISCAL YEAR THE PLAN IS IN EFFECT. 06 Notwithstanding AS 14.25.350(e), added by sec. 6 of this Act, for the first fiscal year in which 07 the teachers' defined contribution retirement plan is in effect, the employer contribution to 08 fully fund the cost of providing occupational disability and occupational death benefits under 09 AS 14.25.485 and 14.25.487 shall be equal to 0.22 percent of the amount of compensation 10 paid to all teachers who work for the employer in that year and are members of the plan. 11 * Sec. 61. Sections 3 and 31 of this Act take effect July 1, 2008. 12 * Sec. 62. Sections 5, 32, and 33 of this Act take effect on July 1, 2010. 13 * Sec. 63. Except as provided in secs. 61 and 62 of this Act, this Act takes effect July 1, 14 2006.