FCCS SB 141(2d FCC): "An Act relating to the teachers' and public employees' retirement systems and creating defined contribution and health reimbursement plans for members of the teachers' retirement system and the public employees' retirement system who are first hired after July 1, 2006; relating to university retirement programs; establishing the Alaska Retirement Management Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; adding appeals of the decisions of the administrator of the teachers' and public employees' retirement systems to the jurisdiction of the office of administrative hearings; providing for nonvested members of the teachers' retirement system defined benefit plans to transfer into the teachers' retirement system defined contribution plan and for nonvested members of the public employees' retirement system defined benefit plans to transfer into the public employees' retirement system defined contribution plan; providing for political subdivisions and public organizations to request to participate in the public employees' defined contribution retirement plan; and providing for an effective date."
00 FREE CONFERENCE CS FOR SENATE BILL NO. 141(2d FCC) 01 "An Act relating to the teachers' and public employees' retirement systems and creating 02 defined contribution and health reimbursement plans for members of the teachers' 03 retirement system and the public employees' retirement system who are first hired after 04 July 1, 2006; relating to university retirement programs; establishing the Alaska 05 Retirement Management Board to replace the Alaska State Pension Investment Board, 06 the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; 07 adding appeals of the decisions of the administrator of the teachers' and public 08 employees' retirement systems to the jurisdiction of the office of administrative 09 hearings; providing for nonvested members of the teachers' retirement system defined 10 benefit plans to transfer into the teachers' retirement system defined contribution plan 11 and for nonvested members of the public employees' retirement system defined benefit 12 plans to transfer into the public employees' retirement system defined contribution
01 plan; providing for political subdivisions and public organizations to request to 02 participate in the public employees' defined contribution retirement plan; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25 is amended by adding new sections to read: 06 Article 1. Administration of the Teachers' Retirement System. 07 Sec. 14.25.001. Purpose. The purpose of this chapter is to encourage 08 qualified teachers to enter and remain in service with participating employers by 09 establishing plans for the payment of retirement and death benefits to or on behalf of 10 the members. 11 Sec. 14.25.002. Attorney general. The attorney general of the state is the 12 legal counsel for the system and shall advise the administrator and represent the 13 system in a legal proceeding. 14 Sec. 14.25.003. Administrator. (a) The commissioner of administration or 15 the commissioner's designee is the administrator of the system. 16 (b) The commissioner of administration shall adopt regulations to govern the 17 operation of the system. 18 Sec. 14.25.004. Powers and duties of the administrator. (a) The 19 administrator shall 20 (1) establish and maintain an adequate system of accounts; 21 (2) transmit the funds deposited in the system to the retirement fund 22 established and maintained by the Alaska Retirement Management Board; 23 (3) approve or disapprove claims for retirement benefits; 24 (4) make payments for the various purposes specified; 25 (5) submit periodic reports or statements of account that are needed; 26 (6) issue a statement of account to an employee not less than once each 27 year showing the amount of the employee's contributions to the applicable plan in the 28 system; 29 (7) formulate and recommend to the commissioner of administration 30 regulations to govern the operation of the system;
01 (8) as soon as possible after the close of each fiscal year, and not later 02 than six months after the close of each fiscal year, send to the governor and the 03 legislature an annual statement on the operations of each of the plans in the system 04 containing 05 (A) a balance sheet; 06 (B) a statement of income and expenditures for the previous 07 fiscal year; 08 (C) a report on valuation of trust fund assets; 09 (D) a summary of assets held in the trust fund listed by the 10 categories of investment, as provided by the Alaska Retirement Management 11 Board; 12 (E) other statistical financial data that are necessary for proper 13 understanding of the financial condition of the system as a whole and each plan 14 in the system and the result of its operations; 15 (9) engage an independent certified public accountant to conduct an 16 annual audit of each plan's accounts and the annual report of the system's financial 17 condition and activity; 18 (10) report to the Legislative Budget and Audit Committee concerning 19 the condition and administration of each plan and distribute the report to the members 20 of each plan in the system; 21 (11) publish an information handbook for each plan in the system at 22 intervals that the administrator considers appropriate; 23 (12) meet at least annually with the board to review the condition and 24 management of the retirement systems and to review significant changes to policies, 25 regulations, or benefits; and 26 (13) do whatever else may be necessary to carry out the purposes of 27 each plan in the system. 28 (b) The administrator is authorized to charge fees necessary to members' 29 accounts to cover the ongoing cost of operating each plan in the system. 30 (c) The administrator is authorized to contract with public and private entities 31 to provide record keeping, benefits payments, and other functions necessary for the
01 administration of each plan in the system. 02 Sec. 14.25.005. Regulations. (a) Regulations adopted by the commissioner 03 of administration under this chapter relate to the internal management of a state 04 agency, and the adoption of the regulations is not subject to AS 44.62 (Administrative 05 Procedure Act). 06 (b) Notwithstanding (a) of this section, a regulation adopted under this chapter 07 shall be published in the Alaska Administrative Register and Code for informational 08 purposes. 09 (c) Each regulation adopted under this chapter must conform to the style and 10 format requirements of the drafting manual for administrative regulations that is 11 published under AS 44.62.050. 12 (d) At least 30 days before the adoption, amendment, or repeal of a regulation 13 under this chapter, the commissioner of administration shall provide notice of the 14 action that is being considered. The notice shall be 15 (1) posted in public buildings throughout the state; 16 (2) published in one or more newspapers of general circulation in each 17 judicial district of the state; 18 (3) mailed to each person or group that has filed a request for notice of 19 proposed action with the commissioner of administration; and 20 (4) furnished to each member of the legislature and to the Legislative 21 Affairs Agency. 22 (e) Failure to mail notice to a person as required under (d)(3) of this section 23 does not invalidate an action taken by the commissioner of administration. 24 (f) The commissioner of administration may hold a hearing on a proposed 25 regulation. 26 (g) A regulation adopted under this chapter takes effect 30 days after adoption 27 by the commissioner of administration. 28 (h) Notwithstanding the other provisions of this section, a regulation may be 29 adopted, amended, or repealed, effective immediately, as an emergency regulation by 30 the commissioner of administration. For an emergency regulation to be effective the 31 commissioner must find that the adoption, amendment, or repeal of the regulation is
01 necessary for the immediate preservation of the orderly operation of the system. The 02 commissioner shall, within 10 days after adoption of an emergency regulation, give 03 notice of the adoption under (d) of this section. 04 (i) In this section, "regulation" has the meaning given in AS 44.62.640(a). 05 Sec. 14.25.006. Appeals. An employer, member, annuitant, or beneficiary 06 may appeal a decision made by the administrator to the office of administrative 07 hearings established under AS 44.64. An aggrieved party may appeal a final decision 08 to the superior court. 09 Sec. 14.25.007. Investment management of retirement system funds. The 10 Alaska Retirement Management Board established under AS 37.10.210 is the 11 fiduciary of the system funds. 12 Sec. 14.25.008. Definitions. In AS 14.25.001 - 14.24.008, 13 (1) "plan" means a retirement plan established in this chapter; 14 (2) "system" means all retirement plans established under the teachers' 15 retirement system. 16 * Sec. 2. AS 14.25.008(1) is amended to read: 17 (1) "plan" means a retirement plan established in AS 14.25.009 - 18 14.25.220 or the retirement plan established in AS 14.25.310 - 14.25.590 [THIS 19 CHAPTER]; 20 * Sec. 3. AS 14.25 is amended by adding a new section to read: 21 Article 2. Teachers' Defined Benefit Retirement Plan. 22 Sec. 14.25.009. Applicability of AS 14.25.009 - 14.25.220. The provisions of 23 AS 14.25.009 - 14.25.220 apply only to members first hired before July 1, 2006. 24 * Sec. 4. AS 14.25.010 is amended to read: 25 Sec. 14.25.010. Retirement plan [SYSTEM] established; federal 26 qualification requirements. (a) A joint-contributory retirement plan [SYSTEM] for 27 teachers of the state is created. 28 (b) The retirement plan [SYSTEM] established by AS 14.25.009 - 14.25.220 29 [THIS CHAPTER] is intended to qualify under 26 U.S.C. 401(a) and 414(d) (Internal 30 Revenue Code) as a qualified retirement plan established and maintained by the state 31 for its employees, for the employees of school districts and regional educational
01 attendance areas in the state, and for the employees of other employers whose 02 participation is authorized by AS 14.25.009 - 14.25.220 [THIS CHAPTER] and who 03 participate in this plan [SYSTEM]. 04 (c) An amendment to AS 14.25.009 - 14.25.220 [THIS CHAPTER] does not 05 provide a person with a vested right to a benefit if the Internal Revenue Service 06 determines that the amendment will result in disqualification of the plan under the 07 Internal Revenue Code. 08 * Sec. 5. AS 14.25.012(b) is amended to read: 09 (b) The plan [SYSTEM] created in AS 14.25.009 - 14.25.220 became 10 effective as of July 1, 1955, at which time contributions by the participating employers 11 and members began. 12 * Sec. 6. AS 14.25.012 is amended by adding a new subsection to read: 13 (c) Employees first hired after June 30, 2006, are not eligible to participate in 14 the plan established in AS 14.25.009 - 14.25.220. 15 * Sec. 7. AS 14.25.040(a) is amended to read: 16 (a) Unless a teacher or member participates in a [HAS ELECTED TO 17 PARTICIPATE IN THE OPTIONAL] university retirement program under 18 AS 14.40.661 - 14.40.799 or has filed an election under AS 14.25.043(b), a teacher or 19 member contracting for service with a participating employer is subject to 20 AS 14.25.009 - 14.25.220 [THIS CHAPTER]. 21 * Sec. 8. AS 14.25.040(a) is amended to read: 22 (a) Unless a teacher or member participates in a university retirement program 23 under AS 14.40.661 - 14.40.799, [OR] has filed an election under AS 14.25.043(b), or 24 has elected under AS 14.25.540 to participate in the plan established in 25 AS 14.25.310 - 14.25.590, a teacher or member contracting for service with a 26 participating employer is subject to AS 14.25.009 - 14.25.220. 27 * Sec. 9. AS 14.25.040(d) is amended to read: 28 (d) A person who is employed at least half-time in the plan [SYSTEM] during 29 the same period that the person is employed at least half-time in a position in the 30 public employees' retirement plan [SYSTEM] under AS 39.35.095 - 39.35.680 31 [AS 39.35] shall receive credited service under each plan [SYSTEM] for half-time
01 employment. However, the amount of credited service a person receives under the 02 public employees' retirement plan [SYSTEM] during a school year may not exceed 03 the amount necessary, when added to the amount of credited service earned during the 04 school year under the plan [SYSTEM], to equal one year of credited service. A 05 person who was employed at least half-time in a position in the public employees' 06 retirement plan [SYSTEM] under AS 39.35.095 - 39.35.680 [AS 39.35] in the same 07 period that the person was employed at least half-time in a position in this plan 08 [SYSTEM] may claim credited service in both plans [SYSTEMS] for employment 09 before May 31, 1989. To obtain this credited service, the person shall claim the 10 service and verify the period of half-time employment. When eligibility for half-time 11 service credit has been established, an indebtedness shall be determined to the 12 retirement plan [SYSTEM] in which the person did not participate. The amount of 13 the indebtedness is the full actuarial cost of providing benefits for the credited service 14 claimed. Interest as prescribed by regulation accrues on that indebtedness beginning 15 on the later of July 1, 1989, or the date on which the member is first eligible to claim 16 the service. Any outstanding indebtedness existing at the time the person retires will 17 require an actuarial adjustment to the benefits payable based on that service. 18 * Sec. 10. AS 14.25.070 is repealed and reenacted to read: 19 Sec. 14.25.070. Contributions by employer. An employer shall make 20 contributions to the plan in an amount sufficient, after subtracting member 21 contributions, to provide the benefits of AS 14.25.009 - 14.25.220. The amount shall 22 be calculated by applying an employer contribution rate, certified by the board, against 23 the sum total of the base salaries paid to members, including any adjustments to 24 contributions required by AS 14.25.173(a). 25 * Sec. 11. AS 14.25.070 is amended by adding a new subsection to read: 26 (b) 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. 12. AS 14.25.075(a) is amended to read: 30 (a) An employee who is eligible to purchase credited service under 31 AS 14.25.047 or 14.25.048, a member who is eligible to purchase credited service
01 under AS 14.25.048, 14.25.050, 14.25.060, 14.25.061, [14.25.062,] 14.25.100, or 02 14.25.107, or a teacher who is eligible to purchase credited service under 03 AS 14.20.345, AS 14.25.050, [14.25.062,] or 14.25.105, in lieu of making payments 04 directly to the plan, may elect to have the member's employer make payments as 05 provided in this section. 06 * Sec. 13. 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; 14 (2) the member shall make an irrevocable election under this 15 subsection to purchase credited service as permitted in AS 14.20.345, AS 14.25.047, 16 14.25.048, 14.25.050, 14.25.060, 14.25.061, [14.25.062,] 14.25.100, 14.25.105, or 17 14.25.107 before the member's termination of employment; the irrevocable election 18 must specify the number of payroll periods that deductions will be made from the 19 member's compensation and the dollar amount of deductions for each payroll period 20 during the specified number of payroll periods; the deductions made under this 21 paragraph cease upon the earlier of the member's termination of employment with the 22 employer or the member's death; amounts paid by an employer under (f) of this 23 section may not be applied toward the payment of the dollar amount of the deductions 24 representing the portion of the credited service that is being purchased by the member 25 through payroll deduction in accordance with the member's irrevocable election under 26 this paragraph; 27 (3) amounts paid by an employer under this subsection shall be treated 28 as employer contributions for the purpose of determining tax treatment under 26 29 U.S.C. (Internal Revenue Code); the amounts paid by the employer under this section 30 may not be included in the member's gross income for income tax purposes until those 31 amounts are distributed by refund or retirement benefit payments.
01 * Sec. 14. AS 14.25.075(e) is amended to read: 02 (e) Contributions to the plan [SYSTEM] to purchase credited service under 03 this section do not qualify for treatment under this section if recognition of that service 04 would cause a member to receive a retirement benefit for the same service from the 05 plan [SYSTEM] and from one or more other retirement plans or systems of the state. 06 * Sec. 15. AS 14.25.075(f) is amended to read: 07 (f) The administrator may accept rollover contributions from a member [, 08 AND DIRECT TRANSFERS AS DESCRIBED IN THIS SUBSECTION, FOR THE 09 PURCHASE, IN WHOLE OR IN PART, OF FORFEITED CREDITED SERVICE 10 UNDER THIS SECTION FOR THE REINSTATEMENT, IN WHOLE OR IN PART, 11 OF FORFEITED CREDITED SERVICE UNDER AS 14.25.062]. Contributions 12 made under this subsection may not be applied to purchase service being paid under 13 (b) of this section. A rollover contribution [OR TRANSFER] as described in this 14 subsection shall be treated as employer contributions for the purpose of determining 15 tax treatment under the Internal Revenue Code and may be made by any one or a 16 combination of the following methods: 17 (1) subject to the limitations prescribed in 26 U.S.C. 402(c), accepting 18 eligible rollover distributions directly from one or more retirement programs of 19 another employer that are qualified under 26 U.S.C. 401(a) or accepting rollovers 20 directly from a member; 21 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 22 accepting from a member conduit rollover contributions that are received by the 23 member from one or more conduit rollover individual retirement accounts previously 24 established by the member; 25 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 26 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 27 member, on or after January 1, 2002, from a tax sheltered annuity described in 26 28 U.S.C. 403(b); 29 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 30 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 31 member, on or after January 1, 2002, from an eligible deferred compensation plan of a
01 tax-exempt organization or a state or local government described in 26 U.S.C. 457(b); 02 (5) accepting direct trustee-to-trustee transfer from an account 03 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 04 Supplemental Annuity Plan). 05 * Sec. 16. AS 14.25.075(i) is amended to read: 06 (i) On satisfaction of the eligibility requirements of AS 14.20.345, 07 AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, [14.25.062,] 14.25.100, 08 14.25.105, or 14.25.107, the requirements of this section, and the administrative filing 09 requirements specified by the administrator, the plan shall adjust the member's 10 credited service history and add any additional service credits acquired. 11 * Sec. 17. AS 14.25.115(a) is amended to read: 12 (a) A teacher in membership service on or after July 1, 1977, who is appointed 13 to retirement on or after July 1, 1978, may elect to apply unused sick leave credit in 14 computing the total number of years of credited service under AS 14.25.110(d) except 15 for sick leave earned while participating in a [THE OPTIONAL] university retirement 16 program under AS 14.40.661 - 14.40.799. To obtain service credit for unused sick 17 leave, a teacher must apply to the administrator not [NO] later than one year after 18 appointment to retirement. Unused sick leave shall be credited on a day-for-day basis 19 in accordance with the table for service after July 1, 1969, contained in 20 AS 14.25.220(45). Teacher contributions may not be required for credited unused sick 21 leave. 22 * Sec. 18. AS 14.25.143(a), as that subsection read following amendment by sec. 3, ch. 23 146, SLA 1980, until amended by sec. 12, ch. 106, SLA 1988, is amended to read: 24 (a) When the administrator determines that the cost of living has increased and 25 that the financial condition of the retirement fund permits, the administrator shall 26 increase benefit payments to persons receiving benefits under this plan. For 27 purposes of this subsection, the financial condition of the fund would only permit 28 an increase in benefits when the ratio of total fund assets to the accrued liability 29 meets or exceeds 105 percent. In this subsection, "accrued liability" means the 30 present value of all member benefits accrued by member service in this plan 31 [SYSTEM].
01 * Sec. 19. AS 14.25.143(a), as that subsection read following amendment by sec. 12, ch. 02 106, SLA 1988, until amended by sec. 12, ch. 97, SLA 1990, is amended to read: 03 (a) When the administrator determines that the cost of living has increased and 04 that the financial condition of the retirement fund [SYSTEM] permits, the 05 administrator shall increase benefit payments to persons receiving benefits under this 06 plan. For purposes of this subsection, the financial condition of the fund would 07 only permit an increase in benefits when the ratio of total fund assets to the 08 accrued liability meets or exceeds 105 percent. In this subsection, "accrued 09 liability" means the present value of all member benefits accrued by member 10 service in this plan [SYSTEM]. 11 * Sec. 20. AS 14.25.145 is amended to read: 12 Sec. 14.25.145. Interest on individual accounts. Interest shall be credited to 13 each teacher's account at the end of each school year at the rate prescribed by the 14 board [REGULATION] for that year. 15 * Sec. 21. AS 14.25.150 is amended by adding a new subsection to read: 16 (c) A member who has received a refund of contributions in accordance with 17 this section forfeits corresponding credited service under AS 14.25.009 - 14.25.220. 18 * Sec. 22. AS 14.25.168(a) is repealed and reenacted to read: 19 (a) Except as provided in (c) of this section, the following persons are entitled 20 to major medical insurance coverage under this section: 21 (1) for teachers first hired before July 1, 1990, 22 (A) a teacher who is receiving a monthly benefit from the plan 23 and who has elected coverage; 24 (B) the spouse and dependent children of the teacher described 25 in (A) of this paragraph; 26 (C) the surviving spouse of a deceased teacher who is receiving 27 a monthly benefit from the plan and who has elected coverage; 28 (D) the dependent children of a deceased teacher who are 29 dependent on the surviving spouse described in (C) of this paragraph; 30 (2) for teachers first hired on or after July 1, 1990, 31 (A) a teacher who is receiving a monthly benefit from the plan
01 and who has elected coverage for the teacher; 02 (B) the spouse of the teacher described in (A) of this paragraph 03 if the teacher elected coverage for the spouse; 04 (C) the dependent children of the teacher described in (A) of 05 this paragraph if the teacher elected coverage for the dependent children; 06 (D) the surviving spouse of a deceased teacher who is receiving 07 a monthly benefit from the plan and who has elected coverage; 08 (E) the dependent children of a deceased teacher who are 09 dependent on the surviving spouse described in (D) of this paragraph if the 10 surviving spouse has elected coverage for the dependent children. 11 * Sec. 23. AS 14.25.173(c) is amended to read: 12 (c) At least quarterly, [AT EACH REGULARLY SCHEDULED MEETING 13 OF THE TEACHERS' RETIREMENT BOARD,] the administrator shall report to the 14 commissioner of administration [BOARD] on all situations since the administrator's 15 last report in which an adjustment has been prohibited under (b) of this section. If the 16 commissioner of administration [BOARD] finds that there is reason to believe that 17 one or more of the conditions set out in (b) of this section have not been met, the 18 administrator shall notify the member or beneficiary that an adjustment will be made 19 to recover the overpayment. A member or beneficiary who receives notice of 20 adjustment under this subsection may file a request with the commissioner of 21 administration [APPEAL TO THE BOARD] for a waiver of the adjustment under 22 AS 14.25.175. An adjustment that requires the repayment of benefits may not be 23 required while the waiver request [APPEAL] is pending. 24 * Sec. 24. AS 14.25.175(a) is amended to read: 25 (a) Upon request [APPEAL] by an affected member or beneficiary under (b) 26 of this section, the commissioner of administration [BOARD] may waive an 27 adjustment or a portion of an adjustment made under AS 14.25.173 if, in the opinion 28 of the commissioner of administration [BOARD], 29 (1) the adjustment or portion of the adjustment will cause undue 30 hardship to the member or beneficiary; 31 (2) the adjustment was not the result of erroneous information supplied
01 by the member or beneficiary; 02 (3) before the adjustment was made, the member or beneficiary 03 received confirmation from the administrator that the member's or beneficiary's 04 records were correct; and 05 (4) the member or beneficiary had no reasonable grounds to believe 06 the records were incorrect before the adjustment was made. 07 * Sec. 25. AS 14.25.175(b) is amended to read: 08 (b) In order to obtain consideration of a waiver under this section, the affected 09 member or beneficiary shall file a request with [MUST APPEAL TO] the 10 commissioner of administration [BOARD] in writing within 30 days after receipt of 11 notice that the records have been adjusted. The ruling of the commissioner of 12 administration [BOARD] shall be in writing. 13 * Sec. 26. AS 14.25.175(c) is repealed and reenacted to read: 14 (c) A ruling of the commissioner of administration to deny a waiver under (b) 15 of this section may be appealed to the office of administrative hearings. 16 * Sec. 27. AS 14.25.175(d) is amended to read: 17 (d) The office of administrative hearings [BOARD] may reverse the 18 commissioner of administration's decision to deny a waiver and may impose 19 conditions on granting a waiver that it considers equitable. These conditions may 20 include requiring the member or beneficiary to make additional contributions to the 21 plan [SYSTEM]. 22 * Sec. 28. AS 14.25.210(a) is amended to read: 23 (a) A person who knowingly makes a false statement, or falsifies or permits to 24 be falsified any record of this plan [SYSTEM], in an attempt to defraud this plan 25 [SYSTEM], is guilty of a class A misdemeanor [AND FORFEITS ALL RIGHTS 26 UNDER THIS CHAPTER]. 27 * Sec. 29. AS 14.25.220(2) is amended to read: 28 (2) "actuarial adjustment" means the adjustment necessary to obtain 29 equality in value of the aggregate expected payments under two different forms of 30 pension payments, considering expected mortality and interest earnings on the basis of 31 assumptions, factors, and methods specified in regulations issued under the plan
01 [SYSTEM] that are formally adopted [UNDER AS 14.25.022] by the board and that 02 clearly preclude employer discretion in the determination of the amount of any 03 member's benefit; 04 * Sec. 30. AS 14.25.220(3) is amended to read: 05 (3) "administrator" means the [PERSON APPOINTED BY THE] 06 commissioner of administration or the commissioner's designee under AS 14.25.003 07 [AS 14.25.015]; 08 * Sec. 31. AS 14.25.220(9) is amended to read: 09 (9) "board" means the Alaska Retirement Management [ALASKA 10 TEACHERS' RETIREMENT] Board established under AS 37.10.210 [AS 14.25.035]; 11 * Sec. 32. AS 14.25.220(40) is amended to read: 12 (40) "supplemental contribution account" means the account 13 maintained by the plan [SYSTEM] to record the supplemental contributions of each 14 member, including interest and adjustments to the account [IN ACCORDANCE 15 WITH AS 14.25.170]; 16 * Sec. 33. AS 14.25.220(42) is amended to read: 17 (42) "teacher" and "member" are used interchangeably under this 18 chapter and mean a person eligible to participate in the system and who is covered by 19 the system, limited to 20 (A) a certificated full-time or part-time elementary or 21 secondary teacher, a certificated school nurse, or a certificated person in a 22 position requiring a teaching certificate as a condition of employment in a 23 public school of the state, the Department of Education and Early 24 Development, or the Department of Labor and Workforce Development; 25 (B) a full-time or part-time teacher of the University of Alaska 26 or a person occupying a full-time administrative position at the University of 27 Alaska that requires academic standing; the approval of the administrator must 28 be obtained before an administrative position qualifies for membership in the 29 system; however, a teacher or administrative person at the university who is 30 participating in a [THE OPTIONAL] university retirement program under 31 AS 14.40.661 - 14.40.799 is not a member under this system;
01 (C) a state legislator who elects membership under 02 AS 14.25.040(b); 03 * Sec. 34. AS 14.25.220 is amended by adding a new paragraph to read: 04 (46) "plan" means the retirement benefit plan established under 05 AS 14.25.009 - 14.25.220. 06 * Sec. 35. AS 14.25 is amended by adding new sections to read: 07 Article 3. Teachers First Hired on or after July 1, 2006. 08 Sec. 14.25.310. Applicability of AS 14.25.310 - 14.25.590. The provisions of 09 AS 14.25.310 - 14.25.590 apply only to teachers who first become members on or 10 after July 1, 2006, or to members who transfer into the defined contribution plan under 11 AS 14.25.540. 12 Sec. 14.25.320. Defined contribution retirement plan established. (a) A 13 defined contribution retirement plan for teachers of the state is created. 14 (b) The defined contribution retirement plan includes a plan in which savings 15 are accumulated in an individual account for the exclusive benefit of the member or 16 beneficiaries. The plan is established effective July 1, 2006, at which time 17 contributions by employers and members begin. 18 (c) The defined contribution retirement plan is intended to qualify under 26 19 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified retirement plan 20 established and maintained by the state for its employees and for the employees of 21 school districts and regional educational attendance areas in the state. 22 (d) An amendment to the defined contribution retirement plan does not 23 provide a person with a vested right to a benefit if the Internal Revenue Service 24 determines that the amendment will result in disqualification of the plan under the 25 Internal Revenue Code. 26 Sec. 14.25.330. Membership. (a) A teacher who first becomes a member on 27 or after July 1, 2006, shall participate in the plan as a member of the defined 28 contribution retirement plan. 29 (b) A teacher who is participating in a university retirement program under 30 AS 14.40.661 - 14.40.799 may not participate as a member of the defined contribution 31 retirement plan.
01 Sec. 14.25.340. Contributions by members. (a) Each member shall 02 contribute to the member's individual account an amount equal to eight percent of the 03 member's compensation from July 1 to the following June 30. 04 (b) Subject to the limitations on contributions under AS 14.25.380, a member 05 may elect to make additional contributions to the member's individual account. 06 (c) The employer shall deduct the contribution from the member's 07 compensation at the end of each payroll period, and the contribution shall be credited 08 by the administrator to the member's individual account. The contributions shall be 09 deducted from member's compensation before the computation of applicable federal 10 taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A 11 member may not have the option of making the payroll deduction directly in cash 12 instead of having the contribution picked up by the employer. 13 Sec. 14.25.345. Employment contributions mandatory. (a) Contributions 14 of members shall be made by payroll deductions. Each member shall be considered to 15 consent to payroll deductions. It is of no consequence that a payroll deduction may 16 cause the compensation paid in cash to a member to be reduced below the minimum 17 required by law. 18 (b) Payment of a member's compensation, less payroll deductions, is a full and 19 complete discharge and satisfaction of all claims and demands by the member relating 20 to remuneration of services during the period covered by the payment, except with 21 respect to the benefits provided under the plan. 22 Sec. 14.25.350. Contributions by employers. (a) An employer shall 23 contribute to each member's individual account an amount equal to seven percent of 24 the member's compensation from July 1 to the following June 30. 25 (b) An employer shall also contribute an amount equal to a percentage, as 26 certified by the board, of each member's compensation from July 1 to the following 27 June 30 to pay for retiree major medical insurance. This contribution shall be paid 28 into the group health and life benefits fund established by the commissioner of 29 administration under AS 39.30.095 and shall be accounted for in accordance with 30 regulations established by the commissioner. 31 (c) Notwithstanding (b) of this section, the employer contribution for retiree
01 major medical insurance for fiscal year 2007 shall be 1.75 percent of each member's 02 compensation from July 1 to the following June 30. 03 (d) An employer shall also make contributions to the health reimbursement 04 arrangement plan under AS 39.30.300. 05 Sec. 14.25.360. Rollover contributions and distributions. (a) A teacher 06 entering the plan may elect, at the time and in the manner prescribed by the 07 administrator, to have all or part of a direct rollover distribution from an eligible 08 retirement plan owned by the member paid directly into the member's individual 09 account. 10 (b) Rollover contributions do not count as a purchase of membership service 11 for the purpose of determining years of service. 12 (c) A distributee may elect, at the time and in the manner prescribed by the 13 administrator, to have all or part of a direct rollover distribution paid directly to an 14 eligible retirement plan specified by the distributee in the direct rollover. 15 (d) In this section, 16 (1) "direct rollover" means the payment of an eligible rollover 17 distribution by the plan to an eligible retirement plan specified by a distributee who is 18 eligible to elect a direct rollover; 19 (2) "distributee" means a member, or a beneficiary who is the 20 surviving spouse of the member, or an alternate payee; 21 (3) "eligible retirement plan" means 22 (A) a conduit individual retirement account described in 26 23 U.S.C. 408(d)(3)(A); 24 (B) an annuity plan described in 26 U.S.C. 403(a); 25 (C) a qualified trust described in 26 U.S.C. 401(a); 26 (D) an annuity plan described in 26 U.S.C. 403(b); or 27 (E) a governmental plan described in 26 U.S.C. 457(b); 28 (4) "eligible rollover distribution" means a distribution of all or part of 29 a total account to a distributee, except for 30 (A) a distribution that is one of a series of substantially equal 31 installments payable not less frequently than annually over the life expectancy
01 of the distributee or the joint and last survivor life expectancy of the distributee 02 and the distributee's designated beneficiary, as defined in 26 U.S.C. 401(a)(9); 03 (B) a distribution that is one of a series of substantially equal 04 installments payable not less frequently than annually over a specified period 05 of 10 years or more; 06 (C) a distribution that is required under 26 U.S.C. 401(a)(9); 07 (D) the portion of any distribution that is not includable in 08 gross income; 09 (E) a distribution that is on account of hardship; and 10 (F) other distributions that are reasonably expected to total less 11 than $200 during a year. 12 Sec. 14.25.370. Transmittal of contributions. All contributions deducted in 13 accordance with AS 14.25.310 - 14.25.590 shall be transmitted to the plan for deposit 14 in the trust fund as soon as administratively feasible, but in no event later than 15 days 15 following the close of the payroll period. 16 Sec. 14.25.380. Limitations on contributions. Notwithstanding any other 17 provisions of this plan, the annual additions to each member's individual account 18 under this plan and under all defined contribution plans of the employer required to be 19 aggregated with the contributions from this plan under the provisions of 26 U.S.C. 415 20 may not exceed, for any limitation year, the amount permitted under 26 U.S.C. 415 at 21 any time. If the amount of a member's defined contribution plan contributions exceeds 22 the limitation of 26 U.S.C. 415(c) for any limitation year, the administrator shall take 23 any necessary remedial action to correct an excess contribution. The provisions of 26 24 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified 25 defined contribution plans of governmental employees are incorporated as part of the 26 terms and conditions of the plan. 27 Sec. 14.25.390. Vesting. (a) A participating member is immediately and 28 fully vested in that member's contributions and related earnings. 29 (b) A member is fully vested in the employer contributions made on that 30 member's behalf, and related earnings, after five years of service. A member is 31 partially vested in the employer contributions made on that member's behalf, and the
01 related earnings, in the ratio of 02 (1) 25 percent with two years of service; 03 (2) 50 percent with three years of service; and 04 (3) 75 percent with four years of service. 05 Sec. 14.25.400. Investment of individual accounts. (a) The board shall 06 provide a range of investment options and permit a participant to exercise investment 07 control over the participant's assets in the member's individual account as provided in 08 this section. If a participant exercises control over the assets in the individual account, 09 the participant is not considered a fiduciary for any reason on the basis of exercising 10 that control. 11 (b) A participant may direct investment of plan funds held in an account 12 among available investment funds in accordance with rules established by the board. 13 (c) A participant may elect to change or transfer all or a portion of the 14 participant's existing account balance among available investment funds not more 15 often than once each day in accordance with the rules established by the administrator. 16 Only the last election received by the administrator before the transmittal of 17 contributions to the trust fund for allocation to the individual account will be used to 18 direct the investment of the contributions received. 19 (d) Except to the extent clearly set out in the terms of the investment plans 20 offered by the employer to the employee, the employer is not liable to the participant 21 for investment losses if the prudent investment standard has been met. 22 (e) The employer, administrator, state, board, or a person or entity who is 23 otherwise a fiduciary is not liable by reason for any participant's investment loss that 24 results from the participant's directing the investment of plan assets allocated to the 25 participant's account. 26 (f) To the extent that a member's individual account has been divided as 27 provided in a qualified domestic relations order between participants, each participant 28 shall be treated as the holder of a separate individual account for purposes of 29 investment yields, decisions, transfers, and time limitations imposed by this section. 30 Sec. 14.25.410. Distribution election at termination. (a) A member is 31 eligible to elect distribution of the member's account in accordance with this section
01 60 days after termination of employment. 02 (b) Notwithstanding (a) of this section, distribution of all or a portion of the 03 individual account of a member may take place before the 60th day after the 04 termination of employment with the approval of the administrator if the member 05 makes a written request for a distribution under this subsection. The member's spouse 06 must consent to the request in writing if the member is married. Distribution of an 07 individual account may only be made on account of an immediate and heavy financial 08 need of the member for the following reasons and in the amount the need is 09 demonstrated for 10 (1) medical care described in 26 U.S.C. 213(d) incurred by the 11 member, the member's spouse, or the member's dependent, or necessary to obtain that 12 medical care; 13 (2) the purchase of a principal residence for the member; 14 (3) postsecondary education tuition and related educational fees for the 15 next 12-month period for the member, the member's spouse, or a dependent of the 16 member; in this paragraph, "dependent" has the meaning given in 26 U.S.C. 152; 17 (4) prevention of the eviction of the member from the member's 18 principal residence or foreclosure on the mortgage of the member's principal 19 residence; or 20 (5) any need prescribed by the United States Department of the 21 Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of 22 general applicability that satisfies the safe harbor definition of hardship under 23 regulations adopted under 26 U.S.C. 401(k). 24 (c) If a member dies before benefits commence, the member's beneficiary is 25 immediately eligible to elect distribution of the member's share of the member's 26 individual account. 27 (d) Distributions are payable to an alternate payee in accordance with the 28 terms and conditions of a qualified domestic relations order that is received and 29 approved by the administrator as specified in AS 14.25.460. 30 (e) Distributions that are being paid to a member may not be affected by the 31 member's subsequent reemployment with the employer. Upon reemployment, a new
01 individual account shall be established for the member to which any future 02 contributions shall be allocated. Upon subsequent termination of employment, the 03 member's new individual account shall be distributed in accordance with this section. 04 Sec. 14.25.420. Forms of distribution. (a) A participant may elect to receive 05 distribution of the participant's share of the individual account in a 06 (1) lump sum payment, which is a single payment of the entire balance 07 in the account; 08 (2) periodic lump sum payment, which is a payment of a portion of the 09 balance in the account, not more than twice each year; 10 (3) period certain annuity payment, which is an annuity payable in a 11 fixed number of monthly installments for a duration of 60, 120, or 180 months; 12 (4) life annuity with a period certain payment, which is an annuity 13 payable until the later of the first day of the month in which the annuitant's death 14 occurs, or the date on which the payment of a fixed number of monthly installments is 15 completed; the period certain for installments is 120 or 180 months; 16 (5) single life annuity payment, which is an annuity payable monthly 17 until the first of the month in which the annuitant's death occurs; or 18 (6) joint and survivor annuity payment, which is an annuity payable 19 monthly to the member until the first of the month in which the member's death 20 occurs; after the member's death, a survivor annuity equal to 50 percent or 100 percent 21 of the member's benefit, as previously elected by the member, shall be paid monthly to 22 the joint annuitant for the remainder of the survivor's lifetime. 23 (b) Upon the death of an annuitant whose payments have commenced, an 24 annuitant's beneficiary shall receive further payments only to the extent provided in 25 accordance with the form of payment that was being made to the annuitant. The 26 remaining portion of the interest shall continue to be distributed at least as rapidly as 27 under the method of distribution being used before the annuitant's death. 28 (c) If a participant dies before the distribution commencement date, 29 distribution of the participant's entire interest to a beneficiary shall be payable in any 30 form other than a joint and survivor annuity. 31 (d) If an unmarried member or other participant fails to elect a form of
01 payment before the distribution commencement date, the account shall be paid to a 02 beneficiary in the form of a lump sum to the extent required by the minimum 03 distribution requirements set out in the Internal Revenue Code. If a married member 04 fails to elect a form of payment before the distribution commencement date, the 05 account shall be paid in the form of a 50 percent joint and survivor annuity, with the 06 member's spouse as the joint annuitant. 07 Sec. 14.25.430. Manner of electing distributions. (a) Any election or any 08 alteration or revocation of a prior election by a participant for any purpose under this 09 plan shall be on forms or made in a manner prescribed for that purpose by the plan 10 administrator. To be effective, the forms required or the required action for any 11 purpose under this plan must be completed and received in accordance with 12 regulations adopted by the commissioner of administration. 13 (b) At any time, but not less than seven days before the distribution 14 commencement date, a member, alternate payee, or beneficiary may change 15 (1) the form of payment election; 16 (2) an election to commence benefits; or 17 (3) the joint annuitant designation. 18 (c) Changes in elections are not allowed on or after seven days before the 19 distribution commencement date. 20 Sec. 14.25.440. Distribution requirements. (a) Payments to a participant 21 shall commence as soon as administratively feasible following the distribution 22 commencement date. The distribution commencement date is the first date on which 23 one of the following occurs: 24 (1) a member meets the requirements of AS 14.25.410 and has made a 25 complete application for payment under AS 14.25.430; 26 (2) a participant has elected to defer receipt of the account to a date 27 specified, the date has been attained, and the participant has made a complete 28 application for payment; 29 (3) a member attains normal retirement age and has not made an 30 application for payment or elected to defer receipt of the account to a date later than 31 normal retirement age;
01 (4) a member's beneficiary does not make an application for benefits 02 and five years have elapsed since the member's death; 03 (5) notwithstanding (a) of this section, a participant whose account has 04 a balance of $1,000 or less meets the requirements of AS 14.25.410, at which time the 05 participant must take payment of the participant's account. 06 (b) The entire interest of a participant must be distributed or must begin to be 07 distributed not later than the member's required beginning date. 08 (c) If a member dies after the distribution of the member's interest has begun 09 but before the distribution has been completed, the remaining portion of the interest 10 shall continue to be distributed at least as rapidly as under the method of distribution 11 being used before the member's death. 12 (d) If a member has made a distribution election and dies before the 13 distribution of the member's interest begins, distribution of the member's entire interest 14 shall be completed by December 31 of the calendar year containing the fifth 15 anniversary of the member's death. However, if any portion of the member's interest 16 is payable to a designated beneficiary, distributions may be made over the life of the 17 designated beneficiary or over a period certain not greater than the life expectancy of 18 the designated beneficiary, commencing on or before December 31 of the calendar 19 year immediately following the calendar year in which the member died, and, if the 20 designated beneficiary is the member's surviving spouse, the date distributions are 21 required to begin may not be earlier than the later of December 31 of the calendar year 22 (1) immediately following the calendar year in which the member died, or (2) in which 23 the member would have attained 70 1/2 years of age, whichever is earlier. If the 24 surviving spouse dies after the member but before payments to the spouse have begun, 25 the provisions of this subsection apply as if the surviving spouse were the member. 26 An amount paid to a child of the member shall be treated as if it were paid to the 27 surviving spouse if the amount becomes payable to the surviving spouse when the 28 child reaches the age of majority. 29 (e) If a member has not made a distribution election before the member's 30 death, the member's designated beneficiary must elect the method of distribution not 31 later than December 31 of the calendar year (1) in which distributions would be
01 required to begin under this section, or (2) that contains the fifth anniversary of the 02 date of death of the member, whichever is earlier. If the member does not have a 03 designated beneficiary or if the designated beneficiary does not elect a method of 04 distribution, distribution of the member's entire interest must be completed by 05 December 31 of the calendar year containing the fifth anniversary of the member's 06 death. 07 (f) For purposes of (b) of this section, distribution of a member's interest is 08 considered to begin (1) on the member's required beginning date, or (2) if the 09 designated beneficiary is the member's surviving spouse and the surviving spouse dies 10 after the member but before payments to the spouse have begun, on the date 11 distribution is required to begin to the surviving spouse. If distribution in the form of 12 an annuity irrevocably commences to the member before the required beginning date, 13 the date distribution is considered to begin is the date that the distribution actually 14 commences. 15 (g) Notwithstanding any contrary provisions of AS 14.25.310 - 14.25.590, the 16 requirements of this section apply to all distributions of a member's interest and take 17 precedence over any inconsistent provisions of AS 14.25.310 - 14.25.590. 18 (h) All distributions required under this section are determined and made in 19 accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, 20 including any minimum distribution incidental benefit requirement. 21 (i) In this section, 22 (1) "designated beneficiary" means the individual who is designated as 23 the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations 24 adopted under that statute; 25 (2) "required beginning date" means the first day of April of the 26 calendar year following the calendar year in which the member either attains 70 1/2 27 years of age or actually terminates employment, whichever is later. 28 Sec. 14.25.450. Designation of beneficiary. (a) Each participant shall have 29 the right to designate a beneficiary and shall have the right, at any time, to revoke the 30 designation or to substitute another beneficiary, subject to the following limitation: if 31 a married member elects a nonspouse beneficiary, the value of the benefit payable to
01 the beneficiary may not exceed 50 percent of the member's portion of the account 02 balance, and the member's spouse shall automatically be considered the beneficiary for 03 the remaining 50 percent of the account balance, unless the spouse consents to the 04 beneficiary designation in a writing that is notarized or witnessed by the administrator. 05 If the spouse consents in this manner, a married member may designate a nonspouse 06 beneficiary for the entire benefit or any portion of the benefit as part of an available 07 form of payment contained in this plan, 08 (1) except to the extent a qualified domestic relations order filed with 09 the administrator provides for payment to a former spouse or other dependent of the 10 member; or 11 (2) unless the member filed a revocation of beneficiary accompanied 12 by a written consent to the revocation from the present spouse and each person entitled 13 under the order; however, consent of the present spouse is not required if the member 14 and the present spouse had been married for less than one year on the date of the 15 member's death and if the member established when filing the revocation that the 16 member and the present spouse were not cohabiting. 17 (b) Except as provided in (a) of this section, the member may change or 18 revoke the designation without notice to the beneficiary or beneficiaries at any time. 19 If a member designates more than one beneficiary, each shares equally unless the 20 member specifies a different allocation or preference. The designation of a 21 beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a 22 beneficiary shall be made on a form provided by the administrator and is not effective 23 until filed with the administrator. 24 (c) If a member fails to designate a beneficiary, or if no designated beneficiary 25 survives the member, the death benefit shall be paid 26 (1) to the surviving spouse or, if there is none surviving; 27 (2) to the surviving children of the member in equal parts or, if there 28 are none surviving; 29 (3) to the surviving parents in equal parts or, if there are none 30 surviving; 31 (4) to the estate.
01 (d) A person claiming entitlement to benefits payable under AS 14.25.310 - 02 14.25.590 as a consequence of a member's death shall provide the administrator with a 03 marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. 04 Documents establishing entitlement may be filed with the administrator immediately 05 after a change in the member's marital status. If the administrator does not receive 06 notification of a claim before the date 10 days after the member's death, the person 07 claiming entitlement is not entitled to receive from the division of retirement and 08 benefits any benefit already paid by the administrator. 09 Sec. 14.25.460. Rights under qualified domestic relations order. (a) 10 Notwithstanding the nonalienation provisions in AS 14.25.500(a), the administrator 11 may direct that benefits be paid to someone other than a member or beneficiary under 12 a valid qualified domestic relations order that is executed by the judge of a competent 13 court in accordance with applicable state law and that has been accepted by the 14 administrator. 15 (b) The administrator shall determine whether an order meets the requirements 16 of this section within a reasonable period after receiving an order. The administrator 17 shall notify the member and any alternate payee that an order has been received and 18 indicate to the member and any alternate payee when the order is accepted. A separate 19 account for the alternate payee portion shall be established as soon as administratively 20 feasible after the order has been accepted by the administrator. 21 Sec. 14.25.470. Eligibility for retirement and medical benefits. (a) In 22 order to obtain medical benefits under AS 14.25.480 a member must retire directly 23 from the plan. A member is eligible to retire from the plan if the member has been an 24 active member for at least 12 months before application for retirement and 25 (1) the member has at least 30 years of service; or 26 (2) the member reaches the normal retirement age and has at least 10 27 years of service. 28 (b) The normal retirement age is the age set for Medicare eligibility at the time 29 the member retires. 30 (c) A member's surviving spouse is eligible to elect medical benefits under 31 AS 14.25.480 if the member had retired, or was eligible for retirement and medical
01 benefits at the time of the member's death. 02 (d) A member shall apply for retirement and medical benefits on the forms 03 and in the manner prescribed by the administrator. 04 (e) Participation in the retiree major medical insurance plan is not required in 05 order to participate in the health reimbursement arrangement. 06 (f) A person eligible for retirement and medical benefits is not required to 07 participate in the health reimbursement arrangement in order to elect participation in 08 the retiree major medical insurance plan. 09 (g) An eligible person shall make the irrevocable election to participate or not 10 participate in the retiree major medical insurance plan by reaching 70 1/2 years of age, 11 or upon application for retirement and medical benefits, whichever is later. 12 Sec. 14.25.480. Medical benefits. (a) The medical benefits available to 13 eligible persons are access to the retiree major medical insurance plan and to the 14 health reimbursement arrangement under AS 39.30.300. Access to the retiree major 15 medical insurance plan means that an eligible person may not be denied insurance 16 coverage except for failure to pay the required premium. 17 (b) Retiree major medical insurance plan coverage elected by an eligible 18 member under this section covers the eligible member, the spouse of the eligible 19 member, and the dependent children of the eligible member. 20 (c) Retiree major medical insurance plan coverage elected by a surviving 21 spouse of an eligible member under this section covers the surviving spouse and the 22 dependent children of the eligible member who are dependent on the surviving spouse. 23 (d) Major medical insurance coverage takes effect on the first day of the 24 month following the date of the administrator's approval of the election and stops 25 when the person who elects coverage dies or fails to make a required premium 26 payment. 27 (e) The coverage for persons 65 years of age or older is the same as that 28 available for persons under 65 years of age. The benefits payable to those persons 65 29 years of age or older supplement any benefits provided under the federal old age, 30 survivors and disability insurance program. 31 (f) The medical and optional insurance premiums owed by the person who
01 elects coverage may be deducted from the health reimbursement arrangement. If the 02 amount of the health reimbursement arrangement becomes insufficient to pay the 03 premiums, the person who elects coverage under (a) of this section shall pay the 04 premiums directly. 05 (g) The cost of premiums for retiree major medical insurance coverage for an 06 eligible member or surviving spouse who is 07 (1) not eligible for Medicare is an amount equal to the full monthly 08 group premiums for retiree major medical insurance coverage; 09 (2) eligible for Medicare, is the following percentage of the premium 10 amounts established for retirees who are eligible for Medicare: 11 (A) 30 percent if the member had 10 or more, but less than 15, 12 years of service; 13 (B) 25 percent if the member had 15 or more, but less than 20, 14 years of service; 15 (C) 20 percent if the member had 20 or more, but less than 25, 16 years of service; 17 (D) 15 percent if the member had 25 or more, but less than 30, 18 years of service; 19 (E) 10 percent if the member had 30 or more years of service. 20 (h) The eligibility for retiree major medical insurance coverage for an 21 alternate payee under a qualified domestic relations order shall be determined based 22 on the eligibility of the member to elect coverage. The alternate payee shall pay the 23 full monthly premium for retiree major medical insurance coverage. 24 (i) A person who is entitled to retiree major medical insurance coverage shall 25 (1) be informed by the administrator in writing 26 (A) that the health insurance coverage available to retired 27 members may be different from the health insurance coverage provided to 28 employees; 29 (B) of time limits for selecting optional health insurance 30 coverage and whether the election is irrevocable; and 31 (2) indicate in writing on a form provided by the administrator that the
01 person has received the information required by this subsection and whether the 02 person has chosen to receive optional health insurance coverage. 03 (j) The monthly group premiums for retiree major medical insurance coverage 04 are established by the administrator in accordance with AS 39.30.095. Nothing in 05 AS 14.25.310 - 14.25.590 guarantees a person who elects coverage under (a) of this 06 section a monthly group premium rate for retiree major medical insurance coverage 07 other than the premium in effect for the month in which the premium is due for 08 coverage for that month. 09 (k) In this section, "health reimbursement arrangement" means the plan 10 established in AS 39.30.300. 11 Sec. 14.25.485. Occupational disability benefits and reemployment of 12 disabled members. (a) A member is eligible for an occupational disability benefit if 13 employment is terminated because of a total and apparently permanent occupational 14 disability before the member's normal retirement date. 15 (b) The occupational disability benefits accrue beginning the first day of the 16 month following termination of employment as a result of the disability and are 17 payable the last day of the month. If a final determination granting the benefit is not 18 made in time to pay the benefit when due, a retroactive payment shall be made to 19 cover the period of deferment. The last payment shall be for the first month in which 20 the disabled member 21 (1) dies; 22 (2) recovers from the disability; 23 (3) fails to meet the requirements under (f) or (h) of this section; or 24 (4) reaches normal retirement age. 25 (c) If the disabled member becomes ineligible to receive occupational 26 disability benefits before the normal retirement date, the disabled member shall then 27 be entitled to receive retirement benefits if the member would have been eligible for 28 the benefit had employment continued during the period of disability. The period of 29 disability constitutes membership service in regard to determining eligibility for 30 retirement. 31 (d) The monthly amount of an occupational disability benefit is 40 percent of
01 the disabled member's gross monthly compensation at the time of termination due to 02 disability. While a member is receiving disability benefits, based on the disabled 03 member's gross monthly compensation at the time of termination due to disability, the 04 employer shall make contributions to the 05 (1) member's individual account under AS 14.25.340 on behalf of the 06 member, without deduction from the member's disability payments; and 07 (2) appropriate accounts and funds on behalf of the member under 08 AS 14.25.350. 09 (e) A member is not entitled to an occupational disability benefit unless the 10 member files an application for an occupational disability benefit with the 11 administrator within 90 days after the date of terminating employment. If the member 12 is unable to meet a filing requirement of this subsection, the filing requirement may be 13 waived by the administrator if there are extraordinary circumstances that resulted in 14 the member's inability to meet the filing requirement. 15 (f) A disabled member receiving an occupational disability benefit shall 16 undergo a medical examination as often as the administrator considers advisable, but 17 not more frequently than once each year. The administrator shall determine the place 18 of the examination and engage the physician or physicians. If, in the judgment of the 19 administrator, the examination indicates that the disabled member is no longer 20 incapacitated because of a total and apparently permanent occupational disability, the 21 administrator may not issue further disability benefits to the member. 22 (g) A disabled member's occupational disability benefit terminates when the 23 disabled member first attains eligibility for normal retirement. At that time, the 24 member's retirement benefit shall be determined under the provisions of AS 14.25.420 25 -14.25.440, 14.25.470, and 14.25.480. A member receiving disability benefits up until 26 eligibility for retirement shall be considered to have retired directly from the plan. 27 (h) A member appointed to disability benefits shall apply to the division of 28 vocational rehabilitation of the Department of Labor and Workforce Development 29 within 30 days after the date disability benefits commence. The member shall be 30 enrolled in a rehabilitation program if the member meets the eligibility requirements 31 of the division of vocational rehabilitation. Unless the member demonstrates cause,
01 benefits shall terminate at the end of the first month in which a disabled member 02 (1) fails to report to the division of vocational rehabilitation; 03 (2) is certified by the division of vocational rehabilitation as failing to 04 cooperate in a vocational rehabilitation program; 05 (3) fails to interview for a job; or 06 (4) fails to accept a position offered. 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 for the last month in which there is an eligible surviving 16 spouse or child. On the date the normal retirement of the member would have 17 occurred if the member had lived, the retirement benefit shall be determined under the 18 provisions of AS 14.25.420 - 14.25.440, 14.25.470, and 14.25.480. A member who 19 died while receiving disability benefits shall be considered to have retired directly 20 from the plan on the date the normal retirement of the member would have occurred if 21 the member had lived. 22 (j) In this section, "occupational disability" has the meaning given in 23 AS 39.35.680. 24 Sec. 14.25.487. Occupational death benefit. (a) If (1) the death of a 25 member occurs before the member's retirement and before the member's normal 26 retirement date, (2) the proximate cause of death is a bodily injury sustained or a 27 hazard undergone while in the performance and within the scope of the member's 28 duties, and (3) the injury or hazard is not the proximate result of wilful negligence of 29 the member, a monthly survivor's pension shall be paid to the surviving spouse. If 30 there is no surviving spouse or if the spouse later dies, the monthly survivor's pension 31 shall be paid in equal parts to the dependent children of the member.
01 (b) The first payment of the surviving spouse's pension or of a dependent 02 child's pension shall be made for the month following the month in which the member 03 dies, and payment shall cease to be made beginning with the month in which the 04 member would have first qualified for retirement. 05 (c) The monthly survivor's pension in (b) of this section for survivors of 06 members is 40 percent of the member's monthly compensation in the month in which 07 the member dies. While the monthly survivor's pension is being paid, the employer 08 shall make contributions on behalf of the member's beneficiaries based on the 09 deceased member's gross monthly compensation at the time of occupational death 10 (1) to the member's individual account under AS 14.25.340, without 11 deduction from the survivor's pension; and 12 (2) to the appropriate accounts and funds on behalf of the member 13 under AS 14.25.350. 14 (d) If a member's death is caused by an act of assault, assassination, or 15 terrorism directly related to the person's status as a member, whether the act occurs on 16 or off the member's job site, the death shall be considered to have occurred in the 17 performance of and within the scope of the member's duties for purposes of (a)(2) of 18 this section. If the expressed or apparent motive and intent of the perpetrator of the 19 harm inflicted upon the member was due to the performance of the member's job 20 duties or employment, the death shall be considered to be directly related to the 21 member's status as a member. A member's job duties are those performed within the 22 course and scope of the person's employment with an employer. 23 (e) On the date the normal retirement of the member would have occurred if 24 the member had lived, the retirement benefit shall be determined under the provisions 25 of AS 14.25.420 - 14.25.440, 14.25.470, and 14.25.480. A member who died and 26 whose survivors receive occupational death benefits under this section shall be 27 considered to have retired directly from the plan on the date the normal retirement of 28 the member would have occurred if the member had lived. 29 Sec. 14.25.490. Amendment and termination of plan. (a) The state has the 30 right to amend the plan at any time and from time to time, in whole or in part, 31 including the right to make retroactive amendments referred to in 26 U.S.C. 401(b).
01 (b) The plan administrator may not modify or amend the plan retroactively in 02 such a manner as to reduce the benefits of any member accrued to date under the plan 03 by reason of contributions made before the modification or amendment except to the 04 extent that the reduction is permitted by the Internal Revenue Code. 05 (c) The state may, in its discretion, terminate the plan in whole or part at any 06 time without liability for the termination. If the plan is terminated, all investments 07 remain in force until all individual accounts have been completely distributed under 08 the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer. 09 (d) Any contribution made by an employer to the plan because of a mistake of 10 fact must be returned to the employer by the administrator within one year after the 11 contribution or discovery, whichever is later. 12 Sec. 14.25.500. Exclusive benefit. (a) The corpus or income of the assets 13 held in trust as required by the plan may not be diverted or used for other than the 14 exclusive benefit of the participants. 15 (b) If plan benefits are provided through the distribution of annuity or 16 insurance contracts, any refunds or credits in excess of plan benefits due to dividends, 17 earnings, or other experience rating credits, or surrender or cancellation credits, shall 18 be paid to the trust fund. 19 (c) The assets of the plan may not be used to pay premiums or contributions of 20 the employer under another plan maintained by the employer. 21 Sec. 14.25.510. Nonguarantee of returns, rates, or benefit amounts. The 22 plan created by AS 14.25.310 - 14.25.590 is a defined contribution plan, not a defined 23 benefit plan. The amount of money in the account of a participant depends on the 24 amount of contributions and the rate of return from investments of the account that 25 varies over time. If benefits are paid in the form of an annuity, the benefit amount 26 payable is dependent on the amount of money in the account and the interest rates 27 applied and service fees charged by the annuity payor at the time benefits are first 28 paid. Nothing in this plan guarantees a participant 29 (1) a rate of return or interest rate other than that actually earned by the 30 account of the participant, less applicable administrative expenses; or 31 (2) an annuity based on interest rates or service charges other than
01 interest rates available from and service charges by the annuity payor in effect at the 02 time the annuity is paid. 03 Sec. 14.25.520. Nonguarantee of employment. The provisions of 04 AS 14.25.310 - 14.25.590 are not a contract of employment between an employer and 05 an employee, nor do they confer a right of an employee to be continued in the 06 employment of an employer, nor are they a limitation of the right of an employer to 07 discharge an employee with or without cause. 08 Sec. 14.25.530. Fraud. (a) A person who knowingly makes a false statement 09 or falsifies or permits to be falsified a record of this plan in an attempt to defraud the 10 plan is guilty of a class A misdemeanor. 11 (b) In this section, "knowingly" has the meaning given in AS 11.81.900(a). 12 Sec. 14.25.540. Transfer into defined contribution retirement plan by 13 nonvested members of defined benefit retirement plan. (a) Subject to (i) of this 14 section, an active member of the defined benefit retirement plan of the teachers' 15 retirement system is eligible to participate in the defined contribution retirement plan 16 established under AS 14.25.310 - 14.25.590 if that member has not vested. 17 Participation in the defined contribution retirement plan is in lieu of participation in 18 the defined benefit retirement plan established under AS 14.25.009 - 14.25.220. 19 (b) A member who has vested in a defined benefit retirement plan is not 20 eligible to transfer under this section. 21 (c) Each eligible member who elects to participate in the defined contribution 22 retirement plan shall have transferred to a new account the member contribution 23 account balance held in trust for the member under the defined benefit retirement plan 24 of the teachers' retirement system. A matching employer contribution shall be made 25 on behalf of that employee to the new account. The employer shall make the 26 matching contribution from funds other than the trust funds of the defined benefit 27 retirement plan. 28 (d) Upon a transfer, all membership service previously earned under the 29 defined benefit retirement plan shall be nullified for purposes of entitlement to a future 30 benefit under the defined benefit retirement plan but shall be credited for purposes of 31 eligibility to elect medical benefits under AS 14.25.470. Membership service allowed
01 for credit toward medical benefits does not include any service credit purchased under 02 AS 14.25.075 for employment by an employer who is not a participating employer in 03 this chapter. 04 (e) An eligible member whose accounts are subject to a qualified domestic 05 relations order may not make an election to participate in the defined contribution 06 retirement plan under this subsection unless the qualified domestic relations order is 07 amended or vacated and court-certified copies of the order are received by the 08 administrator. 09 (f) As directed by the participant, the board shall transfer or cause to be 10 transferred the appropriate amounts to the designated account. The board shall 11 establish transfer procedures by regulation, but the actual transfer may not be later 12 than 30 days after the effective date of the member's participation in the defined 13 contribution retirement plan unless the major financial markets for securities available 14 for a transfer are seriously disrupted by an unforeseen event that also causes the 15 suspension of trading on any national securities exchange in the country where the 16 securities were issued. In that event, the 30-day period of time may be extended by a 17 resolution of the board of trustees. Transfers are not commissionable or subject to 18 other fees and may be in the form of securities or cash as determined by the board. 19 Securities shall be valued as of the date of receipt in the participant's account. 20 (g) If the board or the administrator receives notification from the United 21 States Department of the Treasury, Internal Revenue Service, that this section or a 22 portion of this section will cause the retirement system under this chapter, or a portion 23 of the retirement system under this chapter, to be disqualified for tax purposes under 24 the Internal Revenue Code, the portion that will cause the disqualification does not 25 apply, and the board and the administrator shall notify the presiding officers of the 26 legislature. 27 (h) The election to participate in the defined contribution retirement plan must 28 be made in writing on forms and in the manner prescribed by the administrator. 29 Before accepting an election to participate in the defined contribution retirement plan, 30 the administrator must provide the employee planning on making an election to 31 participate in the defined contribution retirement plan with information, including
01 calculations to illustrate the effect of moving the employee's retirement plan from the 02 defined benefit retirement plan to the defined contribution retirement plan as well as 03 other information to clearly inform the employee of the potential consequences of the 04 employee's election. An election made under this subsection to participate in the 05 defined contribution retirement plan is irrevocable. Upon making the election, the 06 participant shall be enrolled as a member of the defined contribution retirement plan, 07 the member's participation in the plan shall be governed by the provisions of 08 AS 14.25.310 - 14.25.590, and the member's participation in the defined benefit 09 retirement plan under AS 14.25.009 - 14.25.220 shall terminate. The participant's 10 enrollment in the defined contribution retirement plan shall be effective the first day of 11 the month after the administrator receives the completed enrollment forms. An 12 election made by an eligible member who is married is not effective unless the 13 election is signed by the individual's spouse. 14 (i) A member may make an election under this section only if the member's 15 employer participates in both the defined benefits retirement plan and the defined 16 contribution retirement plan and consents to transfers under this section. The 17 employer shall notify the administrator if the employer consents to allowing the 18 employer's members to choose to transfer from the defined benefits retirement plan to 19 the defined contribution retirement plan under this section. An employer's notice to 20 allow transfers is irrevocable and applicable to all eligible employees of the employer. 21 (j) In this section, 22 (1) "defined benefit retirement plan" means the retirement plan 23 established in AS 14.25.009 - 14.25.220; 24 (2) "defined contribution retirement plan" means the retirement plan 25 established in AS 14.25.310 - 14.25.590. 26 Sec. 14.25.550. Membership in teachers' and public employees' 27 retirement systems. A person who is employed at least half-time in the public 28 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990) during the 29 same period that the person is employed at least half-time in a position in the teachers' 30 defined contribution retirement plan (AS 14.25.310 - 14.25.590) shall receive credited 31 service under each plan for half-time employment. However, the amount of credited
01 service a person receives under the public employees' defined contribution retirement 02 plan during a school year may not exceed the amount necessary, when added to the 03 amount of credited service earned during the school year under the teachers' defined 04 contribution retirement plan, to equal one year of credited service. 05 Sec. 14.25.560. Legislators who have been teachers. (a) A state legislator 06 who was an active member of the defined contribution plan under other sections of 07 AS 14.25.310 - 14.25.590 within the 12 months immediately preceding election to 08 office may, subject to the requirements of (b) of this section, elect to be an active 09 member of the teachers' defined contribution retirement plan for as long as the state 10 legislator serves continuously as a state legislator if, within 90 days after taking the 11 oath of office, 12 (1) the state legislator directs the employer in writing to 13 (A) pay into this plan the employer contributions required for a 14 member under AS 14.25.310 - 14.25.590; and 15 (B) deduct from the state legislator's salary and pay into this 16 plan 17 (i) the employee contributions required for a member 18 under AS 14.25.310 - 14.25.590; and 19 (ii) an amount equal to the difference between the total 20 employer and state contributions required for a member under 21 AS 14.25.310 - 14.25.590 and the employer contributions that would be 22 required under the public employees' defined contribution retirement 23 plan (AS 39.35.700 - 39.35.990) if the legislator were covered under 24 that plan; and 25 (2) notice is given the administrator in writing. 26 (b) A state legislator is not entitled to elect membership under (a) of this 27 section if the state legislator is covered for the same period of service under the public 28 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990). An 29 election of membership under (a) of this section is retroactive to the date the state 30 legislator took the oath of office. A state legislator may not receive membership credit 31 under (a) of this section for legislative service performed before the legislative session
01 during which the state legislator elected membership under (a) of this section. In order 02 to continue in membership service under (a) of this section, the state legislator must 03 earn at least 0.3 years of membership service under other sections of AS 14.25.310 - 04 14.25.590 during each five-year period. 05 Sec. 14.25.570. Participation by National Education Association 06 employees. An employee or former employee of the National Education Association 07 of Alaska may participate in the teachers' defined contribution retirement plan under 08 AS 14.25.310 - 14.25.590 if the employee or former employee possesses or is eligible 09 to possess a teacher certificate under AS 14.20.020. 10 Sec. 14.25.580. Participation by Special Education Service Agency 11 employees. An employee of the Special Education Service Agency may participate in 12 the system under this chapter if the employee possesses or is eligible to possess a 13 teacher certificate under AS 14.20.020. 14 Sec. 14.25.590. Definitions. In AS 14.25.310 - 14.25.590, unless the context 15 requires otherwise, 16 (1) "administrator" has the meaning given in AS 14.25.220; 17 (2) "alternate payee" means a person entitled to a portion of the 18 distribution from an individual account under a qualified domestic relations order; 19 (3) "annuitant" means a member, beneficiary or alternate payee who is 20 receiving a benefit under this plan; 21 (4) "beneficiary" means the person or persons entitled to receive 22 benefits that may be due from the plan upon the death of the member or alternate 23 payee; 24 (5) "board" has the meaning given in AS 14.25.220; 25 (6) "calendar year" has the meaning given in AS 39.35.680; 26 (7) "compensation" 27 (A) means 28 (i) the total remuneration earned by an employee for 29 personal services rendered, including cost-of-living differentials, as 30 reported on the employee's Federal Income Tax Withholding Statement 31 (Form W-2) from the employer for the calendar year;
01 (ii) the member contribution to the teachers' retirement 02 system under AS 14.25.340; 03 (B) does not include retirement benefits, severance pay or other 04 separation bonuses, welfare benefits, per diem, expense allowances, workers' 05 compensation payments, payments for leave not used whether those leave 06 payments are scheduled payments, lump-sum payments, donations, or cash-ins, 07 any remuneration contributed by the employer for or on account of the 08 employee under this plan or under any other qualified or nonqualified 09 employee benefit plan, any remuneration not specifically included above 10 which would have been excluded under 26 U.S.C. 3121(a) (Internal Revenue 11 Code) if the employer had remained in the Federal Social Security System, or 12 any remuneration paid by the employer in excess of the Social Security 13 Taxable Wage Base for the calendar year; 14 (C) notwithstanding (B) of this paragraph, includes any amount 15 that is contributed by the employer under a salary reduction agreement and that 16 is not includible in the gross income of the employee under 26 U.S.C. 125, 17 132(f)(4), 402(e)(3), 402(h)(1)(B) or 403(b) (Internal Revenue Code); the 18 annual compensation limitation for the member, which is so taken into account 19 for those purposes, may not exceed $200,000, as adjusted for the cost of living 20 in accordance with 26 U.S.C. 401(a)(17)(B) (Internal Revenue Code), with the 21 limitation for a fiscal year being the limitation in effect for the calendar year 22 within which the fiscal year begins; 23 (8) "dependent child" has the meaning given in AS 14.25.220; 24 (9) "distribution commencement date" has the meaning given in 25 AS 14.25.440(a); 26 (10) "employer" means a public school district, the Board of Regents 27 of the University of Alaska, the Department of Education and Early Development, or 28 the regional resource centers; 29 (11) "fund" means the assets of the plan; 30 (12) "individual account" means the total maintained by the plan in an 31 investment account within the trust fund, established for each member for the purposes
01 of allocation of the member's contributions, employer contributions on behalf of the 02 member, and earnings credited to each of those contributions, investment gains and 03 losses, and expenses, as well as reporting of the member's benefit under the plan; 04 (13) "Internal Revenue Code" has the meaning given in AS 14.25.220; 05 (14) "investment funds" means those separate funds that are provided 06 within and that make up the trust fund and that are established for the purpose of 07 directing investment through the exercise of the sole control of a member, beneficiary, 08 or alternate payee under the terms of the plan and trust agreement; 09 (15) "limitation year" means the year for which contributions are made 10 to a member's individual account as reported to the Internal Revenue Service under the 11 limits described in 26 U.S.C. 415(c); 12 (16) "member" means an employee of an employer or a former 13 employee of an employer who retains a right to benefits under the plan; 14 (17) "membership service" means full-time or part-time employment 15 with an employer in the plan; 16 (18) "normal retirement age" means the age set for Medicare eligibility 17 at the time the member retires; 18 (19) "participant" means the person who has a vested right to an 19 individual account, such as a member, an alternate payee if the account is subject to a 20 qualified domestic relations order, the member's beneficiary if the member is 21 deceased, or an alternate payee's beneficiary if the alternate payee is deceased; 22 (20) "plan" means the retirement benefit plan established under 23 AS 14.25.310 - 14.25.590; 24 (21) "prudent investment standard" means the degree of care, skill, 25 prudence, and diligence under the circumstances then prevailing that a prudent person 26 acting in a like capacity and familiar with such matters would use in the conduct of an 27 enterprise of a like character and with like aims; 28 (22) "qualified domestic relations order" means a divorce or 29 dissolution judgment under AS 25.24, including an order approving a property 30 settlement, that 31 (A) creates or recognizes the existence of an alternate payee's
01 right to, or assigns to an alternate payee the right to, receive all or a portion of 02 the individual account, or the benefits payable with respect to a member; 03 (B) sets out the name and last known mailing address, if any, of 04 the member and of each alternate payee covered by the order; 05 (C) sets out the amount or percentage of the member's benefit, 06 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 07 manner in which that amount or percentage is to be determined; 08 (D) sets out the number of payments or period to which the 09 order applies; 10 (E) sets out the retirement plan to which the order applies; 11 (F) does not require any type or form of benefit or any option 12 not otherwise provided by AS 14.25.310 - 14.25.590; 13 (G) does not require an increase of benefits in excess of the 14 amount provided by AS 14.25.310 - 14.25.590; and 15 (H) does not require the payment, to an alternate payee, of 16 benefits that are required to be paid to another alternate payee under another 17 order previously determined to be a qualified domestic relations order; 18 (23) "retiree" means an eligible person who has elected to receive the 19 medical benefits under AS 14.25.480; 20 (24) "retirement fund" or "fund" means the fund in which the assets of 21 the plan, including income and interest derived from the investment of money, are 22 deposited and held; 23 (25) "school year" has the meaning given in AS 14.25.220; 24 (26) "system" has the meaning given in AS 14.25.220; 25 (27) "teacher" and "member" are used interchangeably under 26 AS 14.25.310 - 14.25.590 and mean a person eligible to participate in the plan and 27 who is covered by the plan, limited to 28 (A) a certificated full-time or part-time elementary or 29 secondary teacher, a certificated school nurse, or a certificated person in a 30 position requiring a teaching certificate as a condition of employment in a 31 public school of the state, the Department of Education and Early
01 Development, or the Department of Labor and Workforce Development; 02 (B) a full-time or part-time teacher of the University of Alaska 03 or a person occupying a full-time administrative position at the University of 04 Alaska that requires academic standing; the approval of the administrator must 05 be obtained before an administrative position qualifies for membership in the 06 plan; however, a teacher or administrative person at the university who is 07 participating in a university retirement program under AS 14.40.661 - 08 14.40.799 is not a member under this plan; 09 (C) a full-time or part-time instructor of the Department of 10 Labor and Workforce Development; 11 (28) "year of service" means service during the dates set for the school 12 year; partial-year service credit is given for membership service as follows: 13 (A) during any school year, 14 (i) less than nine days, no credit; 15 (ii) nine days or more but less than 27 days, 0.1 years; 16 (iii) 27 days or more but less than 45 days, 0.2 years; 17 (iv) 45 days or more but less than 63 days, 0.3 years; 18 (v) 63 days or more but less than 81 days, 0.4 years; 19 (vi) 81 days or more but less than 100 days, 0.5 years; 20 (vii) 100 days or more but less than 118 days, 0.6 years; 21 (viii) 118 days or more but less than 136 days, 0.7 22 years; 23 (ix) 136 days or more but less than 154 days, 0.8 years; 24 (x) 154 days or more but less than 172 days, 0.9 years; 25 (xi) 172 days or more, 1.0 years; 26 (B) service performed on a part-time basis of half time or more 27 shall be credited in proportion to the amount of credit that would have been 28 received for service performed on a full-time basis. 29 * Sec. 36. AS 14.40.280(c) is amended to read: 30 (c) Except as provided by (b) of this section, the monetary gifts, bequests, or 31 endowments that are made to the University of Alaska shall be managed and invested
01 by the Board of Regents. In carrying out its management and investment 02 responsibilities under this subsection, the Board of Regents has the same power and 03 obligations to carry out duties with respect to the endowments of the University of 04 Alaska as are provided to and required of the Alaska Retirement Management 05 [STATE PENSION INVESTMENT] Board under AS 37.10.210 [AS 14.25.180]. 06 * Sec. 37. AS 14.40.400(b) is amended to read: 07 (b) The Board of Regents is the fiduciary of the fund. The Board of Regents 08 shall account for and invest the fund. In carrying out its investment responsibilities 09 under this subsection, the Board of Regents has the same powers and duties with 10 respect to the fund as are provided to and required of the Alaska Retirement 11 Management [STATE PENSION INVESTMENT] Board under AS 37.10.210 12 [AS 14.25.180]. 13 * Sec. 38. AS 14.40.661 is amended to read: 14 Sec. 14.40.661. Authority of board. (a) The board may establish and 15 maintain [AN OPTIONAL] university retirement programs [PROGRAM] for 16 eligible employees in which retirement and death benefits are provided through the 17 purchase of annuity contracts, either fixed, variable, or a combination of fixed and 18 variable. Participation in a university retirement [THE] program is in place of 19 participation in a state retirement system. The university may establish retirement 20 programs for new employees in a participating position at any time. Retirement 21 programs must be optional. 22 (b) The board shall 23 (1) provide for the administration of the retirement programs 24 [PROGRAM], including procedures for resolving complaints from participating 25 employees; 26 (2) designate the company or companies to which payment of the 27 contributions required under AS 14.40.691 may be made, after considering the 28 (A) nature and extent of the rights and benefits that the 29 contracts will provide to employees who elect to participate and to their 30 beneficiaries; 31 (B) relation of the contractual rights and benefits to the
01 contributions to be made under AS 14.40.661 - 14.40.799; 02 (C) suitability of the contractual rights and benefits to the needs 03 and interests of employees who [ELECTING TO] participate and to the 04 interest of the university in the employment and retention of employees; 05 (D) ability of the designated company or companies to provide 06 rights and benefits under the contracts; and 07 (E) efficacy of the contracts in the recruitment and retention of 08 faculty and administrators; 09 (3) take other actions required to ensure that the retirement programs 10 comply with applicable provisions of 26 U.S.C. 401 - 417 [PROGRAM 11 QUALIFIES AS A QUALIFIED TRUST UNDER 26 U.S.C. 401(a)] (Internal 12 Revenue Code). 13 * Sec. 39. AS 14.40.671 is amended to read: 14 Sec. 14.40.671. Participation. (a) An employee in a participating position 15 may elect to participate in a [THE OPTIONAL] university retirement program or to 16 participate in the appropriate state retirement system. Eligibility to participate in a 17 [THE] program begins on an employee's appointment to a participating position. 18 (b) An election under (a) of this section to participate in a university 19 retirement [THE] program is irrevocable. The election shall be made in writing on a 20 form provided by the board and approved for the state by the commissioner of 21 administration. The form must be filed with the university not [BOARD NO] later 22 than 30 days after the date on which the employee is notified by the university that 23 the employee is [FIRST BECOMES] eligible to participate in the program. A copy of 24 the form shall be delivered to the appropriate state retirement system. The election 25 becomes irrevocable on the date it is received by the board. 26 (c) Participation in a university retirement [THE ELECTION TO 27 PARTICIPATE IN THE] program constitutes a waiver of all rights and benefits under 28 the state retirement systems earned on or after the effective date of the election while 29 the employee is participating in a university retirement [THE] program. 30 (d) Except as provided in (e) of this section, if a nonvested member of a state 31 retirement system participates [ELECTS TO PARTICIPATE] in a university
01 retirement [THE] program, the employee may choose to transfer the amount in the 02 employee's contribution account to a university retirement [THE] program. If the 03 employee chooses to transfer the account, the appropriate state retirement system shall 04 pay to the university on behalf of the employee an amount equal to the balance in the 05 account. The payment must be made within 45 days after notice of the employee's 06 decision to transfer the employee's contribution account to a university 07 retirement program [THE ELECTION] is received by the state retirement system. 08 The financial officer of the university shall immediately pay the amount received to 09 the designated company or companies for the benefit of the employee. An employee 10 who transfers assets under this subsection may not reclaim the corresponding service 11 in the state retirement system if the employee is reemployed under the state retirement 12 system. 13 (e) An employee whose rights to transfer assets out of a state retirement 14 system are subject to a qualified domestic relations order is entitled to transfer assets 15 from the state retirement system to a university retirement [THE] program only if 16 the requirements for receiving a refund under AS 14.25.150(b) or AS 39.35.200(c), as 17 appropriate, are met. 18 (f) If a vested member of a state retirement system elects to participate in a 19 university retirement [THE] program, the employee ceases to be an active member 20 of the state retirement system on the effective date of the participation in a university 21 retirement [THE] program. The employee retains all benefits accrued in the state 22 retirement system. 23 (g) An employee who does not [ELECT TO] participate in a university 24 retirement [THE] program under this section becomes or remains a member of the 25 appropriate state retirement system. 26 * Sec. 40. AS 14.40.671(e) is amended to read: 27 (e) An employee whose rights to transfer assets out of a state retirement 28 system are subject to a qualified domestic relations order is entitled to transfer assets 29 from the state retirement system to a university retirement program only if the 30 requirements for receiving a refund under AS 14.25.150(b), 14.25.360, [OR] 31 AS 39.35.200(c), or 39.35.760, as appropriate, are met.
01 * Sec. 41. AS 14.40.671 is amended by adding a new subsection to read: 02 (h) Notwithstanding (b) of this section, the university may offer an employee 03 who made an election not to participate in an optional university retirement program at 04 the time the employee was eligible to participate in the program an option to enroll in 05 a different university retirement program. 06 * Sec. 42. AS 14.40.681 is amended to read: 07 Sec. 14.40.681. Retirement system membership. An [ELIGIBLE] employee 08 participating [ELECTING TO PARTICIPATE] in a university retirement [THE] 09 program may not participate in a state retirement system during the time the employee 10 is employed in a participating position. If the employee is later employed in a position 11 covered by a state retirement system that is not a participating position, the employee 12 may not continue to participate in a university retirement [THE] program and shall 13 begin to participate in the state retirement system. 14 * Sec. 43. AS 14.40.691(c) is amended to read: 15 (c) The board may specify that contributions required by this section are made 16 by a reduction in salary under 26 U.S.C. 403(b) or 26 U.S.C. 414(h)(2) (Internal 17 Revenue Code). 18 * Sec. 44. AS 14.40.701 is amended to read: 19 Sec. 14.40.701. Benefits. Payment of benefits to participants of the program 20 is the responsibility of the company or companies designated by the board and is not 21 the responsibility of the board, the university, or the state. The benefits are payable to 22 participants or their beneficiaries in accordance with the terms of the applicable 23 retirement plan document [ANNUITY CONTRACT OR CONTRACTS. 24 HOWEVER, RETIREMENT BENEFITS MUST BE PAID IN THE FORM OF A 25 LIFETIME INCOME. EXCEPT FOR DEATH BENEFITS, A SINGLE-SUM CASH 26 PAYMENT IS NOT PERMITTED UNDER THIS SECTION]. 27 * Sec. 45. AS 14.40.799(3) is amended to read: 28 (3) "contribution account" means the member contribution account 29 under AS 14.25.009 - 14.25.220 [AS 14.25] or the employee contribution account 30 under AS 39.35.095 - 39.35.680 [AS 39.35], whichever is appropriate; 31 * Sec. 46. AS 14.40.799(3) is amended to read:
01 (3) "contribution account" means the member contribution account 02 under AS 14.25.009 - 14.25.220, the individual account under AS 14.25.310 - 03 14.25.590, [OR] the employee contribution account under AS 39.35.095 - 39.35.680, 04 or the individual account under AS 39.35.700 - 39.35.990, whichever is appropriate; 05 * Sec. 47. AS 14.40.799(5) is amended to read: 06 (5) "participating position" means a position that is a permanent 07 position that is at least a .5 full-time appointment and is included in the applicable 08 retirement plan document [AS 09 (A) A FACULTY APPOINTMENT; OR 10 (B) AN ADMINISTRATOR AND THE POSITION HAS 11 BEEN DESIGNATED BY THE BOARD FOR INCLUSION IN THE 12 PROGRAM]; 13 * Sec. 48. AS 14.40.799(6) is amended to read: 14 (6) "program" means a [THE OPTIONAL] university retirement 15 program; 16 * Sec. 49. AS 14.40.799 is amended by adding a new paragraph to read: 17 (8) "university" means the University of Alaska. 18 * Sec. 50. AS 22.25.048(c) is amended to read: 19 (c) The Alaska Retirement Management [STATE PENSION 20 INVESTMENT] Board is the fiduciary of the fund and has the same powers and 21 duties under this section in regard to the judicial retirement trust fund as are provided 22 in AS 37.10.210 [AS 14.25.180]. 23 * Sec. 51. AS 22.25.900(1) is amended to read: 24 (1) "actuarial equivalent" means the adjustment necessary to obtain 25 equality in value of the aggregate expected payments under two different forms of 26 pension payments, considering expected mortality and interest earnings on the basis of 27 assumptions, factors, and methods specified in regulations issued under the system 28 that are formally adopted [UNDER AS 22.25.027] by the Alaska Retirement 29 Management Board [COMMISSIONER OF ADMINISTRATION] that clearly 30 preclude employer discretion in the determination of the amount of any justice's, 31 judge's, or member's benefit;
01 * Sec. 52. AS 26.05.226(a) is amended to read: 02 (a) The Department of Military and Veterans' Affairs shall contribute to the 03 Alaska National Guard and Alaska Naval Militia retirement system the amounts 04 determined by the Alaska Retirement Management Board [COMMISSIONER OF 05 ADMINISTRATION] as necessary to 06 (1) fund the system based on the actuarial requirements of the system 07 as established by the Alaska Retirement Management Board [COMMISSIONER 08 OF ADMINISTRATION]; and 09 (2) administer the system. 10 * Sec. 53. AS 26.05.228(c) is amended to read: 11 (c) The Alaska Retirement Management [STATE PENSION 12 INVESTMENT] Board is the fiduciary of the fund and has the same powers and 13 duties under this section in regard to the fund as are provided under AS 37.10.220 14 [AS 14.25.180]. 15 * Sec. 54. AS 36.30.015(f) is amended to read: 16 (f) The board of directors of the Alaska Housing Finance Corporation, 17 notwithstanding AS 18.56.088, and the board of directors of the Knik Arm Bridge and 18 Toll Authority under AS 19.75.111, shall adopt regulations under AS 44.62 19 (Administrative Procedure Act) and the board of trustees of the Alaska Retirement 20 Management [STATE PENSION INVESTMENT] Board shall adopt regulations 21 under AS 37.10.240 to govern the procurement of supplies, services, professional 22 services, and construction for the respective public corporation and board. The 23 regulations must reflect competitive bidding principles and provide vendors 24 reasonable and equitable opportunities to participate in the procurement process and 25 must include procurement methods to meet emergency and extraordinary 26 circumstances. Notwithstanding the other provisions of this subsection, the Alaska 27 Housing Finance Corporation, the Knik Arm Bridge and Toll Authority, and the 28 Alaska Retirement Management [STATE PENSION INVESTMENT] Board shall 29 comply with AS 36.30.170(b). 30 * Sec. 55. AS 36.30.990(1) is amended to read: 31 (1) "agency"
01 (A) means a department, institution, board, commission, 02 division, authority, public corporation, the Alaska Pioneers' Home, the Alaska 03 Veterans' Home, or other administrative unit of the executive branch of state 04 government; 05 (B) does not include 06 (i) the University of Alaska; 07 (ii) the Alaska Railroad Corporation; 08 (iii) the Alaska Housing Finance Corporation; 09 (iv) a regional Native housing authority created under 10 AS 18.55.996 or a regional electrical authority created under 11 AS 18.57.020; 12 (v) the Department of Transportation and Public 13 Facilities, in regard to the repair, maintenance, and reconstruction of 14 vessels, docking facilities, and passenger and vehicle transfer facilities 15 of the Alaska marine highway system; 16 (vi) the Alaska Aerospace Development Corporation; 17 (vii) the Alaska Retirement Management [STATE 18 PENSION INVESTMENT] Board; 19 (viii) the Alaska Seafood Marketing Institute; 20 * Sec. 56. AS 37.10.071(d) is amended to read: 21 (d) In exercising investment, custodial, or depository powers or duties under 22 this section, the fiduciary or the fiduciary's designee is liable for a breach of a duty 23 that is assigned or delegated under this section, or under [AS 14.25.180,] 24 AS 14.40.255, 14.40.280(c), 14.40.400(b), AS 37.10.070, AS 37.14.110(c), 37.14.160, 25 or 37.14.170 [, OR AS 39.35.080]. However, the fiduciary or the designee is not 26 liable for a breach of a duty that has been delegated to another person if the delegation 27 is prudent under the applicable standard of prudence set out in statute or if the duty is 28 assigned by law to another person, except to the extent that the fiduciary or designee 29 (1) knowingly participates in, or knowingly undertakes to conceal, an 30 act or omission of another person knowing that the act or omission is a breach of that 31 person's duties under this chapter;
01 (2) by failure to comply with this section in the administration of 02 specific responsibilities, enables another person to commit a breach of duty; or 03 (3) has knowledge of a breach of duty by another person, unless the 04 fiduciary or designee makes reasonable efforts under the circumstances to remedy the 05 breach. 06 * Sec. 57. AS 37.10.071(f) is amended to read: 07 (f) In this section, "fiduciary of a state fund" or "fiduciary" means 08 (1) the commissioner of revenue for investments under AS 37.10.070; 09 or 10 (2) with respect to the Alaska Retirement Management [STATE 11 PENSION INVESTMENT] Board, for investments of the collective funds that it 12 manages and administers [UNDER OR SUBJECT TO AS 14.25.180], 13 (A) each trustee who serves on the board of trustees; and 14 (B) any other person who exercises control or authority with 15 respect to management or disposition of assets for which the board is 16 responsible or who gives investment advice to the board; or 17 (3) the person or body provided by law to manage the investments for 18 investments not subject to [AS 14.25.180 OR] AS 37.10.070. 19 * Sec. 58. AS 37.10.210 is repealed and reenacted to read: 20 Sec. 37.10.210. Alaska Retirement Management Board. (a) The Alaska 21 Retirement Management Board is established in the Department of Revenue. The 22 board's primary mission is to serve as the trustee of the assets of the state's retirement 23 systems, the State of Alaska Supplemental Annuity Plan, and the deferred 24 compensation program for state employees. Consistent with standards of prudence, 25 the board has the fiduciary obligation to manage and invest these assets in a manner 26 that is sufficient to meet the liabilities and pension obligations of the systems, plan, 27 and program. The board may, with the approval of the commissioner of revenue and 28 upon agreement with the responsible fiduciary, manage and invest other state funds so 29 long as the activity does not interfere with the board's primary mission. In making 30 investments, the board shall exercise the powers and duties of a fiduciary of a state 31 fund under AS 37.10.071.
01 (b) The Alaska Retirement Management Board consists of nine trustees, as 02 follows: 03 (1) two members, consisting of the commissioner of administration 04 and the commissioner of revenue; 05 (2) seven trustees appointed by the governor who meet the eligibility 06 requirements for an Alaska permanent fund dividend and who are professionally 07 credentialed or have recognized competence in investment management, finance, 08 banking, economics, accounting, pension administration, or actuarial analysis as 09 follows: 10 (A) two trustees who are members of the general public; the 11 trustees appointed under this subparagraph may not hold another state office, 12 position, or employment and may not be members or beneficiaries of a 13 retirement system managed by the board; 14 (B) one trustee who is employed as a finance officer for a 15 political subdivision participating in either the public employees' retirement 16 system or the teachers' retirement system; 17 (C) two trustees who are members of the public employees' 18 retirement system, selected from a list of four nominees submitted from among 19 the public employees' retirement system bargaining units; 20 (D) two trustees who are members of the teachers' retirement 21 system selected from a list of four nominees submitted from among the 22 teachers' retirement system bargaining units; 23 (E) the lists of the nominees shall be submitted to the governor 24 under (C) and (D) of this paragraph within the time period specified in 25 regulations adopted under AS 37.10.240(a). 26 (c) The trustees, other than the two commissioners, shall serve for staggered 27 terms of four years and may be reappointed to the board. 28 (d) The governor may, by written notice to the trustee, remove an appointed 29 trustee for cause. After an appointed trustee receives written notice of removal, the 30 trustee may not participate in board business and may not be counted for purposes of 31 establishing a quorum.
01 (e) A vacancy on the board of trustees shall be promptly filled. A person 02 filling a vacancy holds office for the balance of the unexpired term of the person's 03 predecessor. A vacancy on the board does not impair the authority of a quorum of the 04 board to exercise all the powers and perform all the duties of the board. 05 (f) Five trustees constitute a quorum for the transaction of business and the 06 exercise of the powers and duties of the board. 07 (g) A trustee may not designate another person to serve on the board in the 08 absence of the trustee. 09 (h) The board shall provide annual training to its members on the duties and 10 powers of a fiduciary of a state fund and other training as necessary to keep the 11 members of the board educated about pension management and investment. 12 (i) The board shall elect a trustee to serve as chair and a trustee to serve as 13 vice-chair for one-year terms. A trustee may be reelected to serve additional terms as 14 chair or vice-chair. 15 * Sec. 59. AS 37.10 is amended by adding a new section to read: 16 Sec. 37.10.215. Attorney general. The attorney general is the legal counsel 17 for the board and shall advise the board and represent it in a legal proceeding. 18 * Sec. 60. AS 37.10.220 is repealed and reenacted to read: 19 Sec. 37.10.220. Powers and duties of the board. (a) The board shall 20 (1) hold regular and special meetings at the call of the chair or of at 21 least five members; meetings are open to the public, and the board shall keep a full 22 record of all its proceedings; 23 (2) after reviewing recommendations from the Department of 24 Revenue, adopt investment policies for each of the funds entrusted to the board; 25 (3) determine the appropriate investment objectives for the defined 26 benefit plans established under the teachers' retirement system under AS 14.25 and the 27 public employees' retirement system under AS 39.35; 28 (4) assist in prescribing the policies for the proper operation of the 29 systems and take other actions necessary to carry out the intent and purpose of the 30 systems in accordance with AS 37.10.210 - 37.10.390; 31 (5) provide a range of investment options and establish the rules by
01 which participants can direct their investments among those options with respect to 02 accounts established under 03 (A) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 04 Annuity Plan); and 05 (B) AS 39.45.010 - 39.45.060 (public employees' deferred 06 compensation program); 07 (6) establish the rate of interest that shall be annually credited to each 08 member's individual contribution account in accordance with AS 14.25.145 and 09 AS 39.35.100; the rate of interest shall be adopted on the basis of the probable 10 effective rate of interest on a long-term basis, and the rate may be changed from time 11 to time; 12 (7) adopt a contribution surcharge as necessary under AS 39.35.160(c); 13 (8) coordinate with the retirement system administrator to have an 14 annual actuarial valuation of each retirement system prepared to determine system 15 assets, accrued liabilities, and funding ratios and to certify to the appropriate 16 budgetary authority of each employer in the system 17 (A) an appropriate contribution rate for normal costs; and 18 (B) an appropriate contribution rate for liquidating any past 19 service liability; 20 (9) review actuarial assumptions prepared and certified by a member 21 of the American Academy of Actuaries and conduct experience analyses of the 22 retirement systems not less than once every four years, except for health cost 23 assumptions, which shall be reviewed annually; the results of all actuarial assumptions 24 prepared under this paragraph shall be reviewed and certified by a second member of 25 the American Academy of Actuaries before presentation to the board; 26 (10) contract for an independent audit of the state's actuary not less 27 than once every four years; 28 (11) contract for an independent audit of the state's performance 29 consultant not less than once every four years; 30 (12) obtain an external performance review to evaluate the investment 31 policies of each fund entrusted to the board and report the results of the review to the
01 appropriate fund fiduciary; 02 (13) by the first day of each regular legislative session, report to the 03 governor, the legislature, and the individual employers participating in the state's 04 retirement systems on the financial condition of the systems in regard to 05 (A) the valuation of trust fund assets and liabilities; 06 (B) current investment policies adopted by the board; 07 (C) a summary of assets held in trust listed by the categories of 08 investment; 09 (D) the income and expenditures for the previous fiscal year; 10 (E) the return projections for the next calendar year; 11 (F) one-year, three-year, five-year, and 10-year investment 12 performance for each of the funds entrusted to the board; and 13 (G) other statistical data necessary for a proper understanding 14 of the financial status of the systems; 15 (14) submit quarterly updates of the investment performance reports to 16 the Legislative Budget and Audit Committee; and 17 (15) develop an annual operating budget. 18 (b) The board may 19 (1) employ outside investment advisors to review investment policies; 20 (2) enter into an agreement with the fiduciary of another state fund in 21 order to assume the management and investment of those assets; 22 (3) contract for other services necessary to execute the board's powers 23 and duties; 24 (4) enter into confidentiality agreements that would exempt records 25 from AS 40.25.110 and 40.25.120 if the records contain information that could affect 26 the value of investment by the board or that could impair the ability of the board to 27 acquire, maintain, or dispose of investments. 28 (c) Expenses for the board and the operations of the board shall be paid from 29 the retirement fund. 30 * Sec. 61. AS 37.10.220(a) is amended to read: 31 (a) The board shall
01 (1) hold regular and special meetings at the call of the chair or of at 02 least five members; meetings are open to the public, and the board shall keep a full 03 record of all its proceedings; 04 (2) after reviewing recommendations from the Department of 05 Revenue, adopt investment policies for each of the funds entrusted to the board; 06 (3) determine the appropriate investment objectives for the defined 07 benefit plans established under the teachers' retirement system under AS 14.25 and the 08 public employees' retirement system under AS 39.35; 09 (4) assist in prescribing the policies for the proper operation of the 10 systems and take other actions necessary to carry out the intent and purpose of the 11 systems in accordance with AS 37.10.210 - 37.10.390; 12 (5) provide a range of investment options and establish the rules by 13 which participants can direct their investments among those options with respect to 14 accounts established under 15 (A) AS 14.25.340 - 14.25.350 (teachers' retirement system 16 defined contribution individual accounts); 17 (B) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 18 Annuity Plan); 19 (C) AS 39.35.730 - 39.35.750 (public employees' retirement 20 system defined contribution individual accounts); and 21 (D) [(B)] AS 39.45.010 - 39.45.060 (public employees' 22 deferred compensation program); 23 (6) establish the rate of interest that shall be annually credited to each 24 member's individual contribution account in accordance with AS 14.25.145 and 25 AS 39.35.100 and the rate of interest that shall be annually credited to each 26 member's account in the health reimbursement arrangement plan under 27 AS 39.30.300 - 39.30.495; the rate of interest shall be adopted on the basis of the 28 probable effective rate of interest on a long-term basis, and the rate may be changed 29 from time to time; 30 (7) adopt a contribution surcharge as necessary under AS 39.35.160(c); 31 (8) coordinate with the retirement system administrator to have an
01 annual actuarial valuation of each retirement system prepared to determine system 02 assets, accrued liabilities, and funding ratios and to certify to the appropriate 03 budgetary authority of each employer in the system 04 (A) an appropriate contribution rate for normal costs; and 05 (B) an appropriate contribution rate for liquidating any past 06 service liability; 07 (9) review actuarial assumptions prepared and certified by a member 08 of the American Academy of Actuaries and conduct experience analyses of the 09 retirement systems not less than once every four years, except for health cost 10 assumptions, which shall be reviewed annually; the results of all actuarial assumptions 11 prepared under this paragraph shall be reviewed and certified by a second member of 12 the American Academy of Actuaries before presentation to the board; 13 (10) contract for an independent audit of the state's actuary not less 14 than once every four years; 15 (11) contract for an independent audit of the state's performance 16 consultant not less than once every four years; 17 (12) obtain an external performance review to evaluate the investment 18 policies of each fund entrusted to the board and report the results of the review to the 19 appropriate fund fiduciary; 20 (13) by the first day of each regular legislative session, report to the 21 governor, the legislature, and the individual employers participating in the state's 22 retirement systems on the financial condition of the systems in regard to 23 (A) the valuation of trust fund assets and liabilities; 24 (B) current investment policies adopted by the board; 25 (C) a summary of assets held in trust listed by the categories of 26 investment; 27 (D) the income and expenditures for the previous fiscal year; 28 (E) the return projections for the next calendar year; 29 (F) one-year, three-year, five-year, and 10-year investment 30 performance for each of the funds entrusted to the board; and 31 (G) other statistical data necessary for a proper understanding
01 of the financial status of the systems; 02 (14) submit quarterly updates of the investment performance reports to 03 the Legislative Budget and Audit Committee; and 04 (15) develop an annual operating budget. 05 * Sec. 62. AS 37.10.250 is amended to read: 06 Sec. 37.10.250. Compensation of trustees. Trustees, other than trustees who 07 are employees of the state, [OR] a political subdivision of the state, or a school 08 district or regional educational attendance area in the state, receive an honorarium 09 of $400 [$150] for each day spent at a meeting of the board or at a meeting of a 10 subcommittee of the board or at a public meeting as a representative of the board, 11 including a day in which a trustee travels to or from a meeting. Trustees who are 12 state employees are entitled to administrative leave for service as a trustee. Trustees 13 who are employees of a political subdivision of the state or a school district or 14 regional educational attendance area in the state are entitled to leave benefits 15 provided by their employers comparable to those provided to state employees for 16 service as a trustee. Trustees are entitled to per diem and travel expenses authorized 17 for boards and commissions under AS 39.20.180. 18 * Sec. 63. AS 37.10.270(a) is amended to read: 19 (a) The board may [SHALL] appoint an investment advisory council 20 composed of at least three and not more than five members. Members of the council 21 shall possess experience and expertise in financial investments and management of 22 investment portfolios for public, corporate, or union pension benefit funds, 23 foundations, or endowments. 24 * Sec. 64. AS 37.10.390 is amended to read: 25 Sec. 37.10.390. Definitions. In AS 37.10.210 - 37.10.390, unless the context 26 otherwise requires, 27 (1) "board" means the board of trustees of the Alaska Retirement 28 Management [STATE PENSION INVESTMENT] Board; 29 (2) "fund" means the fund or funds composed of the assets of each 30 of the retirement systems administered and managed by the board; 31 (3) "recognized competence" means a minimum of 10 years'
01 professional experience working or teaching in the field of investment 02 management, finance, banking, economics, accounting, pension administration, 03 or actuarial analysis; 04 (4) "retirement systems" or "systems" means the teachers' retirement 05 system, the judicial retirement system, the Alaska National Guard and Alaska Naval 06 Militia retirement system, [AND] the public employees' retirement system, the State 07 of Alaska teachers' and public employees' retiree health reimbursement 08 arrangement plan, and the elected public officers' retirement system under 09 former AS 39.37. 10 * Sec. 65. AS 37.14.160 is amended to read: 11 Sec. 37.14.160. Duties of the commissioner of revenue. The commissioner 12 of revenue is the treasurer of the trust fund created in AS 37.14.110 and shall 13 (1) in carrying out investment duties under this section, exercise the 14 same powers and duties established for the Alaska Retirement Management [STATE 15 PENSION INVESTMENT] Board in AS 37.10.210 [AS 14.25.180(c)]; 16 (2) deposit the principal and income from investments in separate 17 principal and income accounts for the fund; 18 (3) invest and maintain accounting records that distinguish between the 19 principal and income of the fund; 20 (4) provide reports to the board established under AS 37.14.120 on the 21 condition and investment performance of the fund. 22 * Sec. 66. AS 37.14.210(4) is amended to read: 23 (4) invest and reinvest the assets of the trust as provided in this section 24 and as provided for the investment of funds under [AS 14.25.180(c) AND] 25 AS 37.14.170; 26 * Sec. 67. AS 37.14.520(4) is amended to read: 27 (4) invest and reinvest the assets of the fund as provided in this section 28 and as provided for the investment of funds under [AS 14.25.180(c) AND] 29 AS 37.14.170; 30 * Sec. 68. AS 37.14.610 is amended to read: 31 Sec. 37.14.610. Duties of the commissioner. The commissioner of revenue
01 has the power and duty to 02 (1) act as official custodian of the cash and investments belonging to 03 the Arctic Winter Games Team Alaska trust by securing adequate and safe custodial 04 facilities; 05 (2) exercise the same powers and duties as those established for the 06 Alaska Retirement Management [STATE PENSION INVESTMENT] Board in 07 AS 37.10.210 [AS 14.25.180(b) AND (c)]; 08 (3) invest the assets of the trust in a manner likely to yield at least five 09 percent real rate of return over time; 10 (4) maintain accounting records of the trust in accordance with 11 investment accounting principles; 12 (5) enter into and enforce contracts or agreements considered 13 necessary for the investment purposes of the trust; 14 (6) report annually to the board of directors of the Arctic Winter 15 Games Team Alaska the condition and performance of the trust; 16 (7) monitor use of trust money by the Arctic Winter Games Team 17 Alaska; and 18 (8) do all acts that the commissioner of revenue considers necessary or 19 proper in administering the assets of the trust. 20 * Sec. 69. AS 39.30.090(a) is amended to read: 21 (a) The Department of Administration may obtain a policy or policies of group 22 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 23 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 24 employees of other participating governmental units, or persons entitled to coverage 25 under AS 23.15.136, subject to the following conditions: 26 (1) A group insurance policy shall provide one or more of the 27 following benefits: life insurance, accidental death and dismemberment insurance, 28 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 29 dental expense insurance, audiovisual insurance, or other medical care insurance. 30 (2) Each eligible employee of the state, the spouse and the unmarried 31 children chiefly dependent on the eligible employee for support, and each eligible
01 employee of another participating governmental unit shall be covered by the group 02 policy, unless exempt under regulations adopted by the commissioner of 03 administration. 04 (3) A governmental unit may participate under a group policy if 05 (A) its governing body adopts a resolution authorizing 06 participation, and payment of required premiums; 07 (B) a certified copy of the resolution is filed with the 08 Department of Administration; and 09 (C) the commissioner of administration approves the 10 participation in writing. 11 (4) In procuring a policy of group health or group life insurance as 12 provided under this section or excess loss insurance as provided in AS 39.30.091, the 13 Department of Administration shall comply with the dual choice requirements of 14 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 15 transact business in the state under AS 21.09, a hospital or medical service corporation 16 authorized to transact business in this state under AS 21.87, or a health maintenance 17 organization authorized to operate in this state under AS 21.86. An excess loss 18 insurance policy may be obtained from a life or health insurer authorized to transact 19 business in this state under AS 21.09 or from a hospital or medical service corporation 20 authorized to transact business in this state under AS 21.87. 21 (5) The Department of Administration shall make available bid 22 specifications for desired insurance benefits or for administration of benefit claims and 23 payments to (A) all insurance carriers authorized to transact business in this state 24 under AS 21.09 and all hospital or medical service corporations authorized to transact 25 business under AS 21.87 who are qualified to provide the desired benefits; and (B) to 26 insurance carriers authorized to transact business in this state under AS 21.09, hospital 27 or medical service corporations authorized to transact business under AS 21.87, and 28 third-party administrators licensed to transact business in this state and qualified to 29 provide administrative services. The specifications shall be made available at least 30 once every five years. The lowest responsible bid submitted by an insurance carrier, 31 hospital or medical service corporation, or third-party administrator with adequate
01 servicing facilities shall govern selection of a carrier, hospital or medical service 02 corporation, or third-party administrator under this section or the selection of an 03 insurance carrier or a hospital or medical service corporation to provide excess loss 04 insurance as provided in AS 39.30.091. 05 (6) If the aggregate of dividends payable under the group insurance 06 policy exceeds the governmental unit's share of the premium, the excess shall be 07 applied by the governmental unit for the sole benefit of the employees. 08 (7) A person receiving benefits under AS 14.25.110, AS 22.25, 09 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 10 effect under this section at the time of termination of employment with the state or 11 participating governmental unit. 12 (8) A person electing to have insurance under (7) of this subsection 13 shall pay the cost of this insurance. 14 (9) For each permanent part-time employee electing coverage under 15 this section, the state shall contribute one-half the state contribution rate for permanent 16 full-time state employees, and the permanent part-time employee shall contribute the 17 other one-half. 18 (10) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 19 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 20 and eligible dependents under this section. The level of coverage for persons over 65 21 shall be the same as that available before reaching age 65 except that the benefits 22 payable shall be supplemental to any benefits provided under the federal old age, 23 survivors, and disability insurance program. A person electing to have insurance 24 under this paragraph shall pay the cost of the insurance. The commissioner of 25 administration shall adopt regulations implementing this paragraph. 26 (11) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 27 or former AS 39.37 may obtain long-term care insurance for that person and eligible 28 dependents under this section. A person who elects insurance under this paragraph 29 shall pay the cost of the insurance premium. The commissioner of administration 30 shall adopt regulations to implement this paragraph. 31 (12) Each licensee holding a current operating agreement for a vending
01 facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 02 applies to governmental units other than the state. 03 * Sec. 70. AS 39.30.095(d) is amended to read: 04 (d) If the commissioner of administration determines that there is more money 05 in the fund than the amount needed to pay premiums, benefits, and administrative 06 costs for the current fiscal year, the surplus, or so much of it as the commissioner of 07 administration considers advisable, may be invested by the commissioner of revenue 08 in the same manner as retirement funds are invested under AS 37.10.210 and 09 37.10.220 [AS 14.25.180]. 10 * Sec. 71. AS 39.30.150(b) is amended to read: 11 (b) Employees of the division of marine transportation included in 12 AS 39.35.095 - 39.35.680 [THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM] 13 through the process of collective bargaining under AS 39.35.680(21)(D) may, under 14 the terms of a collective bargaining agreement, utilize contributions made under (a) of 15 this section on their behalf to offset the costs of inclusion in the public employees' 16 retirement system; however, 17 (1) the state is placed under no obligation to continue making 18 contributions under this section if the state resumes participation in the federal social 19 security system; 20 (2) the bargaining agreement must provide a mechanism for satisfying 21 any residual liabilities that might exist if the state resumes participation in the federal 22 social security system; and 23 (3) funds contributed under (a) of this section on behalf of employees 24 who are not covered by maritime union contracts may not be obligated or expended to 25 pay any costs associated with the inclusion of marine transportation employees in 26 AS 39.35.095 - 39.35.680 [THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM]. 27 * Sec. 72. AS 39.30 is amended by adding a new section to read: 28 Sec. 39.30.151. Administrator. The commissioner of administration or the 29 commissioner's designee is the administrator of the system. 30 * Sec. 73. AS 39.30 is amended by adding a new section to read: 31 Sec. 39.30.154. Powers and duties of the administrator. The administrator
01 has the same powers and duties with regard to the plan as those set out in 02 AS 14.25.004. 03 * Sec. 74. AS 39.30.155 is repealed and reenacted to read: 04 Sec. 39.30.155. Management and investment of fund. The Alaska 05 Retirement Management Board is the fiduciary of the fund and has the same powers 06 and duties under this section in regard to the fund as are provided under AS 37.10.210. 07 * Sec. 75. AS 39.30.160(a) is amended to read: 08 (a) The Department of Administration shall, in accordance with policies 09 prescribed by regulations of the Alaska Retirement Management [PUBLIC 10 EMPLOYEES RETIREMENT] Board, provide to employees for whom special 11 individual employee benefit accounts are established under AS 39.30.150(c) 12 [AS 39.30.150] the following benefit options: 13 (1) supplemental health benefits; [,] 14 (2) supplemental death benefits; [,] 15 (3) supplemental disability benefits; [,] and 16 (4) supplemental dependent care benefits. 17 * Sec. 76. AS 39.30.160(b) is amended to read: 18 (b) An employee may select the types and amounts of supplemental benefits to 19 be purchased with the money deposited in the employee's special individual employee 20 benefit accounts under AS 39.30.150. The selection for employees described in 21 AS 39.30.150(a) must be from the benefit options listed in (a) of this section. 22 * Sec. 77. AS 39.30.160(e) is amended to read: 23 (e) Regulations adopted by the board [PUBLIC EMPLOYEES 24 RETIREMENT BOARD] implementing AS 39.30.150 and this section are not subject 25 to AS 44.62 (Administrative Procedure Act). 26 * Sec. 78. AS 39.30.175(a) is amended to read: 27 (a) The board [ALASKA STATE PENSION INVESTMENT BOARD] is the 28 fiduciary of the mandatory receipts, under AS 39.30.150(a), of the employee benefits 29 program established under AS 39.30.150 - 39.30.180 and has the same powers and 30 duties concerning the management and investment in regard to those receipts as are 31 provided under AS 37.10.210 [AS 14.25.180].
01 * Sec. 79. AS 39.30.180 is amended by adding a new paragraph to read: 02 (3) "board" means the board of trustees of the Alaska Retirement 03 Management Board established under AS 37.10.210. 04 * Sec. 80. AS 39.30 is amended by adding new sections to read: 05 Article 5. State of Alaska Teachers' and Public Employees' Retiree Health 06 Reimbursement Arrangement Plan. 07 Sec. 39.30.300. State of Alaska Teachers' and Public Employees' Retiree 08 Health Reimbursement Arrangement Plan established. The State of Alaska 09 Teachers' and Public Employees' Retiree Health Reimbursement Arrangement Plan is 10 established for teachers who first become members of the defined contribution plan of 11 the teachers' retirement system under AS 14.25.310 - 14.25.590 on or after July 1, 12 2006, and employees of the state, political subdivisions of the state, and public 13 organizations of the state who first become members of the defined contribution plan 14 of the public employees' retirement system under AS 39.35.700 - 39.35.990 on or after 15 July 1, 2006. 16 Sec. 39.30.310. Purpose and effective date. (a) The purpose of the plan is to 17 allow medical care expenses to be reimbursed from individual savings accounts 18 established for eligible persons. 19 (b) The plan becomes effective July 1, 2006, at which time contributions by 20 employers begin. 21 Sec. 39.30.320. Attorney general. The attorney general of the state is the 22 legal counsel for the plan and shall advise the administrator and represent the plan in a 23 legal proceeding. 24 Sec. 39.30.330. Administrator. The commissioner of administration or the 25 commissioner's designee is the administrator of the plan. 26 Sec. 39.30.340. Powers and duties of the administrator. The administrator 27 shall establish a teachers' and public employees' retiree health reimbursement 28 arrangement plan trust fund in which the assets of the plan shall be deposited and held. 29 The administrator has the same powers and duties with regard to the plan and the trust 30 fund as provided in AS 14.25.004. 31 Sec. 39.30.350. Employer contribution fund. The fund established under
01 AS 39.30.340 is an employer contribution fund. The value of the fund reflects 02 employer contributions, expenses, and investment gains and losses. Employee 03 contributions to the fund are not permitted. 04 Sec. 39.30.360. Management and investment of the fund. The Alaska 05 Retirement Management Board is the fiduciary of the fund and has the same powers 06 and duties under this section in regard to the fund as are provided under AS 37.10.220. 07 Sec. 39.30.370. Contributions by employers. For each member of the plan, 08 an employer shall contribute to the teachers' and public employees' retiree health 09 reimbursement arrangement plan trust fund an amount equal to three percent of the 10 employer's average annual employee compensation. The administrator shall maintain 11 a record for each member to account for employer contributions on behalf of that 12 member. The board shall establish by regulation the rate of interest to be applied 13 annually to the amount in a member's individual account. 14 Sec. 39.30.380. Termination of employment. A person who terminates 15 employment before meeting the eligibility requirements of AS 14.25.470 or 16 AS 39.35.870 loses any right to the contributions made on behalf of the person to the 17 teachers' and public employees' retiree health reimbursement arrangement trust fund. 18 If a person returns to employment with a participating employer by December 31 of 19 the year in which the person reaches 65 years of age, the person's account balance 20 shall be restored in the amount recorded on the date of termination from the trust, 21 adjusted for inflation at the rate of the Consumer Price Index for Anchorage, Alaska. 22 The earlier period of employment with a participating employer shall be credited 23 toward eligibility for medical benefits. 24 Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the 25 eligibility requirements of AS 14.25.470 and AS 39.35.870 are eligible for 26 reimbursements from the individual account established for a member under the plan, 27 except members do not have to retire directly from the system. A person who is the 28 dependent child of an eligible member is eligible for reimbursements if the eligible 29 member and surviving spouse have both died so long as the person meets the 30 definition of dependent child. 31 Sec. 39.30.400. Benefits payable from the individual account. (a) The
01 administrator may deduct the cost of monthly premiums from the individual account 02 for retiree major medical insurance on behalf of an eligible person who elected retiree 03 major medical insurance under AS 14.25.480 or AS 39.35.880. 04 (b) Upon application of an eligible person, the administrator shall reimburse to 05 the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d). 06 Reimbursement is limited to the medical expenses of 07 (1) an eligible member, the spouse of an eligible member, and the 08 dependent children of an eligible member; or 09 (2) a surviving spouse and the dependent children of an eligible 10 member dependent on the surviving spouse. 11 (c) When the member's individual account balance is exhausted, the insurance 12 premium deductions under (a) of this section and the reimbursement of medical care 13 expenses under (b) of this section end. 14 (d) If all eligible persons die before exhausting the member's individual 15 account, the account balance shall revert to the plan. 16 Sec. 39.30.410. Exemption from taxation and process. (a) Contributions 17 and other amounts held in the plan on behalf of a member or other person who is or 18 may become eligible for benefits under the plan may be used only to reimburse 19 eligible medical expenses, are exempt from Alaska state and municipal taxes and 20 federal taxes to the extent allowed under the Internal Revenue Code, and are not 21 subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or 22 charge of any kind, either voluntary or involuntary, before they are received by the 23 person entitled to the amount under the terms of the plan. Any attempt to anticipate, 24 alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any 25 right to amounts accrued in the plan is void. However, a member's right to receive 26 benefits may be assigned 27 (1) under a qualified domestic relations order; or 28 (2) to a trust or similar legal device that meets the requirements for a 29 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4). 30 (b) Notwithstanding AS 09.38.065, contributions and other amounts held in 31 the plan and benefits payable under this plan are exempt from garnishment, execution,
01 or levy. 02 Sec. 39.30.420. Amendment and termination of plan. (a) The state has the 03 right to amend the plan at any time and from time to time, in whole or in part, 04 including the right to make retroactive amendments referred to in 26 U.S.C. 401(b). 05 (b) The plan administrator may not modify or amend the plan retroactively in 06 such a manner as to reduce the benefits of any member accrued to date under the plan 07 by reason of contributions made before the modification or amendment except to the 08 extent that the reduction is permitted by the Internal Revenue Code. 09 (c) The state may, in its discretion, terminate the plan in whole or part at any 10 time without liability for the termination. If the plan is terminated, all investments 11 remain in force until all individual accounts have been completely distributed under 12 the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer. 13 (d) Any contribution made by an employer to the plan because of a mistake of 14 fact must be returned to the employer by the administrator within one year after the 15 contribution or discovery, whichever is later. 16 Sec. 39.30.430. Exclusive benefit. (a) The corpus or income of the assets 17 held in trust as required by the plan may not be diverted or used for other than the 18 exclusive benefit of the participants. 19 (b) The assets of the plan may not be used to pay premiums or contributions of 20 the employer under another plan maintained by the employer. 21 Sec. 39.30.495. Definitions. Unless the context requires otherwise, in 22 AS 39.30.300 - 39.30.495 23 (1) "administrator" means the commissioner of administration or the 24 commissioner's designee; 25 (2) "board" means the Alaska Retirement Management Board 26 established under AS 37.10.210; 27 (3) "compensation" has the meaning given in AS 14.25.590; 28 (4) "eligible person" means a person who meets the eligibility 29 requirements of AS 14.25.470 or AS 39.35.870; 30 (5) "dependent child" has the meaning given in AS 39.35.680; 31 (6) "employer" has the meaning given in AS 14.25.590 for employers
01 of teachers in the defined contribution plan established in AS 14.25.310 - 14.25.590 02 and has the meaning given in AS 39.35.990 for employers of public employees in the 03 defined contribution plan established in AS 39.35.700 - 39.35.990; 04 (7) "fund" means the assets of the teachers' and public employees' 05 retiree health reimbursement arrangement plan trust fund; 06 (8) "individual account" means the record established by the 07 administrator for individual employees under the teachers' and public employees' 08 retiree health reimbursement arrangement plan; 09 (9) "member" means a member of the defined contribution plan of the 10 teachers' retirement system in AS 14.25.310 - 14.25.590 or a member of the public 11 employees' retirement system in AS 39.35.700 - 39.35.990; 12 (10) "plan" means the State of Alaska Teachers' and Public Employees' 13 Retiree Health Reimbursement Arrangement Plan established in AS 39.30.300; 14 (11) "qualified domestic relations order" has the meaning given in 15 AS 14.25.220. 16 * Sec. 81. AS 39.35 is amended by adding new sections to read: 17 Article 1. Administration of the Public Employees' Retirement System of Alaska. 18 Sec. 39.35.001. Purpose. The purpose of this chapter is to encourage 19 qualified personnel to enter and remain in service with participating employers by 20 establishing plans for the payment of retirement, disability, and death benefits to or on 21 behalf of the members. 22 Sec. 39.35.002. Attorney general. The attorney general of the state is the 23 legal counsel for the system and shall advise the administrator and represent the 24 system in a legal proceeding. 25 Sec. 39.35.003. Administrator. (a) The commissioner of administration or 26 the commissioner's designee is the administrator of the system. 27 (b) The commissioner of administration shall adopt regulations to govern the 28 operation of the system. 29 Sec. 39.35.004. Powers and duties of the administrator. (a) The 30 administrator shall 31 (1) establish and maintain an adequate system of accounts;
01 (2) transmit the funds deposited in the system to the retirement fund 02 established and maintained by the Alaska Retirement Management Board; 03 (3) approve or disapprove claims for retirement benefits; 04 (4) make payments for the various purposes specified; 05 (5) submit periodic reports or statements of account that are needed; 06 (6) issue a statement of account to an employee not less than once each 07 year showing the amount of the employee's contributions to the applicable plan in the 08 system; 09 (7) formulate and recommend to the commissioner of administration 10 regulations to govern the operation of the system; 11 (8) as soon as possible after the close of each fiscal year, and not later 12 than six months after the close of each fiscal year, send to the governor and the 13 legislature an annual statement on the operations of each of the plans in the system 14 containing 15 (A) a balance sheet; 16 (B) a statement of income and expenditures for the year; 17 (C) a report on valuation of trust fund assets; 18 (D) a summary of assets held in the trust fund listed by the 19 categories of investment, as provided by the Alaska Retirement Management 20 Board; 21 (E) other statistical financial data that are necessary for proper 22 understanding of the financial condition of the system as a whole and each plan 23 in the system and the result of its operations; 24 (9) engage an independent certified public accountant to conduct an 25 annual audit of each plan's accounts and the annual report of the system's financial 26 condition and activity; 27 (10) report to the Legislative Budget and Audit Committee concerning 28 the condition and administration of each plan and distribute the report to the members 29 of each plan in the system; 30 (11) publish an information handbook for each plan in the system at 31 intervals that the administrator considers appropriate;
01 (12) meet at least annually with the board to review the condition and 02 management of the retirement systems and to review significant changes to policies, 03 regulations or benefits; and 04 (13) do whatever else may be necessary to carry out the purposes of 05 each plan in the system. 06 (b) The administrator is authorized to charge uniform fees to members' 07 accounts to cover the ongoing cost of operating each plan in the system. 08 (c) The administrator is authorized to contract with public and private entities 09 to provide record keeping, benefits payments, and other functions necessary for the 10 administration of each plan in the system. 11 Sec. 39.35.005. Regulations. (a) Regulations adopted by the commissioner 12 of administration under this chapter relate to the internal management of state 13 agencies, and the adoption of these regulations is not subject to AS 44.62 14 (Administrative Procedure Act). 15 (b) Notwithstanding (a) of this section, a regulation adopted under this chapter 16 shall be published in the Alaska Administrative Register and Code for informational 17 purposes. 18 (c) Each regulation adopted under this chapter must conform to the style and 19 format requirements of the drafting manual for administrative regulations that is 20 published under AS 44.62.050. 21 (d) At least 30 days before the adoption, amendment, or repeal of a regulation 22 under this chapter, the commissioner shall provide notice of the action that is being 23 considered. The notice shall be 24 (1) posted in public buildings throughout the state; 25 (2) published in one or more newspapers of general circulation in each 26 judicial district of the state; 27 (3) mailed to each person or group that has filed a request for notice of 28 proposed action with the commissioner; and 29 (4) furnished to each member of the legislature and to the Legislative 30 Affairs Agency. 31 (e) Failure to mail notice to a person as required under (d)(3) of this section
01 does not invalidate an action taken by the commissioner. 02 (f) The commissioner may hold a public hearing on a proposed regulation. 03 (g) A regulation adopted under this chapter takes effect 30 days after adoption 04 by the commissioner. 05 (h) Notwithstanding the other provisions of this section, a regulation may be 06 adopted, amended, or repealed, effective immediately, as an emergency regulation by 07 the commissioner. For an emergency regulation to be effective the commissioner 08 must find that the adoption, amendment, or repeal of the regulation is necessary for the 09 immediate preservation of the orderly operation of the system. The commissioner 10 shall, within 10 days after adoption of an emergency regulation, give notice of the 11 adoption under (d) of this section. 12 (i) In this section, "regulation" has the meaning given in AS 44.62.640(a). 13 Sec. 39.35.006. Appeals. An employer, member, annuitant, or beneficiary 14 may appeal a decision made by the administrator to the office of administrative 15 hearings established under AS 44.64. An aggrieved party may appeal a final decision 16 to the superior court. 17 Sec. 39.35.007. Investment management of retirement system funds. The 18 Alaska Retirement Management Board established under 37.10.210 is the fiduciary of 19 the system funds. 20 Sec. 39.35.008. Definitions. In AS 39.35.001 - 39.35.008, 21 (1) "commissioner" means the commissioner of administration; 22 (2) "plan" means the retirement plan established in AS 39.35.095 - 23 39.35.680; 24 (3) "system" means all retirement plans established under the public 25 employees' retirement system. 26 * Sec. 82. AS 39.35.008 is amended to read: 27 Sec. 39.35.008. Definitions. In AS 39.35.001 - 39.35.008, 28 (1) "commissioner" means the commissioner of administration; 29 (2) "plan" means the retirement plan established in AS 39.35.095 - 30 39.35.680 or the retirement plan established in AS 39.35.700 - 39.35.990; 31 (3) "system" means all retirement plans established under the public
01 employees' retirement system. 02 * Sec. 83. AS 39.35 is amended by adding a new section to read: 03 Article 2. Public Employees' Defined Benefit Retirement Plan. 04 Sec. 39.35.095. Applicability of AS 39.35.095 - 39.35.680. The following 05 provisions of this chapter apply only to members first hired before July 1, 2006: 06 AS 39.35.095 - 39.35.680. 07 * Sec. 84. AS 39.35.100 is amended to read: 08 Sec. 39.35.100. Accounting. (a) The commissioner of administration shall 09 establish and maintain an adequate system of accounts and records for the plan 10 [SYSTEM]. The accounts and records shall be integrated with the accounts, records, 11 and procedures of the employers to the end that they operate most effectively and at 12 minimum expense, and that duplication of records and accounts is avoided. 13 (b) All income of the pension fund and all disbursements made by the fund 14 shall be credited or charged, whichever is appropriate, to the following accounts: 15 (1) An individual account shall be maintained for each employee to 16 record the amount of the employee's mandatory contributions collected under 17 AS 39.35.160(a). As of the last day of each calendar year and each fiscal year 18 beginning with June 30, 1969, this account shall be credited with interest, by applying 19 [ONE HALF OF] the prescribed rate of interest as determined by the board to the 20 balance in the account as of that date. Within one year following retirement, the 21 amount actuarially determined as necessary to fully fund the benefits to be received 22 shall be transferred first from the employee contribution account and, after the 23 employee contribution account has been exhausted, then from the employer 24 contribution account into the retirement reserve account. 25 (2) An individual account shall be maintained for each employee to 26 record the amount of the employee's voluntary contributions. As of the last day of 27 each calendar year and each fiscal year beginning with June 30, 1969, this account 28 shall be credited with interest, by applying [ONE HALF OF] the prescribed rate of 29 interest as determined by the board to the balance in the account as of that date. 30 Amounts that, before termination of employment, are withdrawn by an employee from 31 the employee's savings account shall be charged to that account. Upon retirement, the
01 amount actuarially determined as necessary to fully fund the benefits to be received 02 shall be transferred first from the employee savings account and, after the employee 03 savings account has been exhausted, then from the employer contribution account into 04 the retirement reserve account. 05 (3) A separate account for each employer shall be maintained. The 06 account shall be credited with contributions of the employer. This account shall be 07 charged with the employer's actuarial charge for pension, death benefits, and other 08 benefits paid under this plan [SYSTEM] to or on behalf of the employee of the 09 employer. After an allowance for interest credited to employee contribution accounts 10 and employee savings accounts, the investment income of the pension fund shall be 11 allocated to the retirement reserve account and to each employer asset share account 12 according to the ratio that the average of the assets in the account as of the beginning 13 and as of the end of the fiscal year bears to the total of the average balance of the 14 retirement reserve account and all employer accounts. 15 (4) An expense account shall be maintained for the plan [SYSTEM]. 16 This account shall be charged with all disbursements representing administrative 17 expenses incurred by the plan [SYSTEM]. At the end of the year the expense account 18 shall be allocated to each employer in accordance with (3) of this subsection. 19 Expenditures from this account shall be included in the governor's budget for each 20 fiscal year and are subject to approval by the legislature. 21 * Sec. 85. AS 39.35 is amended by adding a new section to article 1 to read: 22 Sec. 39.35.115. Defined benefit retirement plan. (a) A defined benefit 23 retirement plan for employees of the state, political subdivisions, and public 24 organizations is created. The plan becomes effective January 1, 1961, at which time 25 contributions by the employers and members begin. 26 (b) The retirement plan established by AS 39.35.095 - 39.35.680 is intended to 27 qualify under 26 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified 28 retirement plan established and maintained by the state for its employees and for the 29 employees of political subdivisions, public corporations, and public organizations of 30 the state, and for the employees of other employers whose participation is authorized 31 by AS 39.35.095 - 39.35.680 and who participate in this plan.
01 (c) An amendment to AS 39.35.095 - 39.35.680 does not provide a person 02 with a vested right to a benefit if the Internal Revenue Service determines that the 03 amendment will result in disqualification of the plan under the Internal Revenue Code. 04 * Sec. 86. AS 39.35.120 is amended to read: 05 Sec. 39.35.120. Commencement of participation. (a) An employee of the 06 state shall be included in this system upon commencement of employment with the 07 state, or on January 1, 1961, whichever is later. Unless an employee participates in a 08 [HAS ELECTED TO PARTICIPATE IN THE OPTIONAL] university retirement 09 program under AS 14.40.661 - 14.40.799, an employee of a political subdivision or 10 public organization that becomes an employer shall be included in the system on the 11 effective date of the employer's participation or the date of the employee's 12 commencement of employment with the employer, whichever is later. 13 (b) Inclusion in the system is a condition of employment for an employee 14 except as otherwise provided for 15 (1) an elected official; 16 (2) an employee making an election under AS 39.35.150(b); and 17 (3) an employee of the university who participates in a [HAS 18 ELECTED TO PARTICIPATE IN THE OPTIONAL] university retirement program 19 under AS 14.40.661 - 14.40.799. 20 * Sec. 87. AS 39.35.131 is amended to read: 21 Sec. 39.35.131. Membership in teachers' and public employees' 22 retirement systems. (a) A person who is employed at least half-time in the plan 23 [SYSTEM] during the same period that the person is employed at least half-time in a 24 position in the teachers' retirement plan [SYSTEM] under AS 14.25.009 - 14.25.220 25 [AS 14.25] shall receive credited service under each plan [SYSTEM] for half-time 26 employment. However, the amount of credited service a person receives under the 27 plan [SYSTEM] during a school year may not exceed the amount necessary, when 28 added to the amount of credited service earned during the school year under the 29 teachers' retirement system, to equal one year of credited service. 30 (b) A person who was employed at least half-time in a position in the teachers' 31 retirement plan [SYSTEM] under AS 14.25.009 - 14.25.220 [AS 14.25] in the same
01 period that the person was employed at least half-time in a position in this plan 02 [SYSTEM] may claim credited service in both plan [SYSTEMS] for employment 03 before May 31, 1989. To obtain this credited service, the person shall claim the 04 service and verify the period of half-time employment. When eligibility for half-time 05 service credit has been established, an indebtedness shall be determined to the 06 retirement plan [SYSTEM] in which the person did not participate. The amount of 07 the indebtedness is the full actuarial cost of providing benefits for the credited service 08 claimed. Interest as prescribed by regulation accrues on that indebtedness beginning 09 on the later of July 1, 1989, or the date on which the member is first eligible to claim 10 the service. Any outstanding indebtedness existing at the time the person retires will 11 require an actuarial adjustment to the benefits payable based on that service. 12 * Sec. 88. AS 39.35.158 is amended to read: 13 Sec. 39.35.158. Administrative director of courts. An administrative 14 director of the Alaska court system who withdraws from the judicial retirement system 15 under AS 22.25.012 is eligible for membership in the plan [SYSTEM] and shall 16 receive credited service in the plan [SYSTEM] for service rendered as administrative 17 director. To be eligible for membership in the plan [SYSTEM] under this subsection, 18 the administrative director must contribute to the plan [SYSTEM] 19 (1) the amount the director would have contributed if the director had 20 been a member during the director's period of membership in the judicial retirement 21 system; and 22 (2) any contributions for services as administrative director refunded 23 by the plan [SYSTEM] at the time the director became a member of the judicial 24 retirement system. 25 * Sec. 89. AS 39.35.165(a) is amended to read: 26 (a) An employee who is eligible to purchase credited service under 27 AS 39.35.310, 39.35.330, 39.35.340, 39.35.342, 39.35.345, [39.35.350,] 39.35.360, or 28 39.35.370, a member who is eligible to purchase credited service under AS 39.35.375, 29 or an elected public official who is eligible to purchase credited service under 30 AS 39.35.381 is an employee for purposes of this section. An employee may, in lieu 31 of making payments directly to the plan, elect to have the employee's employer make
01 payments as provided in this section. 02 * Sec. 90. AS 39.35.165(b) is amended to read: 03 (b) An employee may elect to have the employer make payments for all or any 04 portion of the amounts payable for the employee's purchase of credited service 05 through a salary reduction program as follows: 06 (1) the amounts paid under a salary reduction program are in lieu of 07 contributions by the employee making the election; the electing employee's salary or 08 other compensation shall be reduced by the amount paid by the employer under this 09 subsection; 10 (2) the employee shall make an irrevocable election under this section 11 to purchase credited service as permitted in AS 39.35.310, 39.35.330, 39.35.340, 12 39.35.342, 39.35.345, [39.35.350,] 39.35.360, 39.35.370, 39.35.375, or 39.35.381 and 13 before the employee's termination of employment; the irrevocable election must 14 specify the number of payroll periods that deductions will be made from the 15 employee's compensation and the dollar amount of deductions for each payroll period 16 during the specified number of payroll periods; the deductions made under this 17 paragraph cease upon the earlier of the member's termination of employment with the 18 employer or the member's death; amounts paid by an employer under (f) of this 19 section may not be applied toward the payment of the dollar amount of the deductions 20 representing the portion of the credited service that is being purchased by the member 21 through payroll deduction in accordance with the member's irrevocable election under 22 this subsection; 23 (3) amounts paid by an employer under this subsection shall be treated 24 as employer contributions for the purpose of determining tax treatment under the 25 Internal Revenue Code; the amounts paid by the employer under this section may not 26 be included in the member's gross income for income tax purposes until those amounts 27 are distributed by refund or retirement benefit payments. 28 * Sec. 91. AS 39.35.165(f) is amended to read: 29 (f) The commissioner may accept rollover contributions from a member [AND 30 DIRECT TRANSFERS, AS DESCRIBED IN THIS SUBSECTION, FOR THE 31 PURCHASE, IN WHOLE OR IN PART, OF CREDITED SERVICE FOR THE
01 REINSTATEMENT, IN WHOLE OR IN PART, OF FORFEITED CREDITED 02 SERVICE UNDER AS 39.35.350]. A rollover contribution [OR TRANSFER] as 03 described in this subsection shall also be treated as employer contributions for the 04 purpose of determining tax treatment under the Internal Revenue Code and may be 05 made by any one or a combination of the following methods: 06 (1) subject to the limitations prescribed in 26 U.S.C. 401(a)(3) and 26 07 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more 08 retirement programs of another employer that are qualified under 26 U.S.C. 401(a) or 09 accepting rollovers directly from a member; 10 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 11 accepting from a member conduit rollover contributions that are received by the 12 employee from one or more conduit rollover individual retirement accounts previously 13 established by the member; 14 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 15 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 16 member, on or after January 1, 2002, from a tax sheltered annuity described in 26 17 U.S.C. 403(b); 18 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 19 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 20 member, on or after January 1, 2002, from an eligible deferred compensation plan of a 21 tax-exempt organization or a state or local government described in 26 U.S.C. 457(b); 22 (5) accepting direct trustee-to-trustee transfer from an account 23 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 24 Supplemental Annuity Plan). 25 * Sec. 92. AS 39.35.165(g) is amended to read: 26 (g) Payments made under this section shall be applied to reduce the 27 employee's outstanding indebtedness described in AS 39.35.310, 39.35.330, 28 39.35.340, 39.35.342, 39.35.345, [39.35.350,] 39.35.360, 39.35.370, 39.35.375, or 29 39.35.381 at the time that the contributions are received by the plan. 30 * Sec. 93. AS 39.35.165(i) is amended to read: 31 (i) On satisfaction of the eligibility requirements of AS 39.35.310, 39.35.330,
01 39.35.340, 39.35.341, 39.35.345, [39.35.350,] 39.35.360, 39.35.370, 39.35.375, or 02 39.35.381, the requirements of this section, and the administrative filing requirements 03 specified by the commissioner, the plan shall adjust the employee's credited service 04 history and add any additional service credits acquired. 05 * Sec. 94. AS 39.35.200 is amended by adding a new subsection to read: 06 (d) An employee who receives a refund of contributions in accordance with 07 this section forfeits corresponding credited service under AS 39.35.095 - 39.35.680. 08 * Sec. 95. AS 39.35.270 is amended to read: 09 Sec. 39.35.270. Amount of employer's contributions. The amount of each 10 employer's contributions shall be determined by applying the employer's contribution 11 rate, as certified by the board, to the total compensation paid to the active employees 12 of the employer for each payroll period and by including any adjustments to 13 contributions required by AS 39.35.520(a). This amount shall be remitted by the 14 employer to the administrator in accordance with AS 39.35.610. 15 * Sec. 96. AS 39.35.270 is amended by adding a new subsection to read: 16 (b) The employer contribution rate may not be less than the rate required, after 17 subtracting the member contribution rate, to fully fund the actuarially calculated 18 benefits expected to be earned by active members during a fiscal year. 19 * Sec. 97. AS 39.35.340(f) is amended to read: 20 (f) An employee may not [CANNOT] be credited with a period of active 21 military service in the armed forces of the United States under this section if credit for 22 that military service was granted under AS 14.25.009 - 14.25.220 [AS 14.25]. 23 * Sec. 98. AS 39.35.340(h) is amended to read: 24 (h) The combined period of military service claimed under this section and 25 under AS 14.25.009 - 14.25.220 [AS 14.25] may not exceed five years. 26 * Sec. 99. AS 39.35.360(i) is amended to read: 27 (i) An employee who completes three years of credited service with an 28 employer, for which the employee makes contributions required by AS 39.35.095 - 29 39.35.680 [THIS CHAPTER], is entitled to credited service on a year-for-year basis 30 for service credited in the Civil Service Retirement System, rendered as an employee 31 of an Alaska Bureau of Indian Affairs (BIA) school, other than service as a teacher.
01 When eligibility for retroactive credited service under this subsection has been 02 established, an indebtedness of the employee to the plan [SYSTEM] shall be 03 determined as follows: (1) the employee's actual annual compensation, or the 04 calculated annual compensation for an employee who works fewer than 12 months, for 05 the most recent calendar year in which service is rendered to an employer before the 06 calendar year in which the employee first becomes eligible to claim service under this 07 subsection, multiplied by (2) the number of years of service in Alaska BIA schools 08 that is credited under this subsection, and this product multiplied by (3) six percent for 09 employees first eligible to claim this service before January 1, 1987, or eight and one- 10 half percent for employees first eligible to claim this service on or after January 1, 11 1987. Interest as prescribed by regulation accrues on the indebtedness beginning on 12 the date the employee may first claim the retroactive credited service. Any 13 outstanding indebtedness that exists at the time the employee retires requires an 14 actuarial adjustment to the benefits that are based on retroactive credited service under 15 this subsection. A retirement benefit payable under this subsection for Alaska BIA 16 service shall be reduced by an amount equal to the retirement benefits paid to the 17 member by the United States government for the same service. 18 * Sec. 100. AS 39.35.360(l) is amended to read: 19 (l) An administrative director of the Alaska Court System who withdraws 20 from the judicial retirement system under AS 22.25.012(b) is eligible for membership 21 in the plan [PUBLIC EMPLOYEES' RETIREMENT SYSTEM] and shall receive 22 credited service in this plan [SYSTEM] for service rendered as administrative 23 director. To be eligible for membership in this plan [SYSTEM] under this subsection, 24 the administrative director must contribute to the plan [SYSTEM] 25 (1) the amount that would have been contributed if the administrative 26 director had been a member during the period of the membership in the judicial 27 retirement system; and 28 (2) any contributions for service as administrative director refunded 29 from the plan [PUBLIC EMPLOYEES' RETIREMENT SYSTEM] at the time the 30 administrative director became a member of the judicial retirement system. 31 * Sec. 101. AS 39.35.370(g) is amended to read:
01 (g) When an employee who was employed as a dispatcher in a state trooper 02 office or in a police or fire department in the plan [PUBLIC EMPLOYEES' 03 RETIREMENT SYSTEM] applies for appointment to retirement, the employee may 04 convert the credited service for that position to credited service as a peace officer by 05 claiming the service as peace officer service. An employee who has converted 06 credited service to peace officer service under this subsection shall be treated as a 07 peace officer for purposes of AS 39.35.095 - 39.35.680 [THIS CHAPTER]. When the 08 member claims this credited service as peace officer service, an indebtedness of the 09 member to the plan [SYSTEM] shall be established. The indebtedness is equal to the 10 full actuarial cost of the conversion of the credited service to treatment as peace 11 officer service. Any outstanding indebtedness that exists at the time the member is 12 appointed to retirement shall [WILL] require an actuarial adjustment to the benefits 13 payable based upon the conversion of the credited service. 14 * Sec. 102. AS 39.35.375(a) is amended to read: 15 (a) An active or inactive member who has never been vested in this plan 16 [SYSTEM] or in the teachers' retirement plan [SYSTEM] under AS 14.25.009 - 17 14.25.220 [AS 14.25], who has at least two years of credited service in this plan 18 [SYSTEM], and who has membership service in the teachers' retirement system may 19 claim credited service in this plan [SYSTEM] in an amount equal to the membership 20 service the member has in the teachers' retirement system. The claimed credited 21 service may be added to service earned under AS 39.35.095 - 39.35.680 [THIS 22 CHAPTER] to enable the member to qualify for a public service benefit under this 23 section. The member may not claim credited service for membership service for 24 which the member has received a refund under AS 14.25.150 unless the member fully 25 pays the indebtedness as established under AS 14.25.063. The member may not claim 26 credited service in this plan [SYSTEM] based on unused sick leave under 27 AS 14.25.115. 28 * Sec. 103. AS 39.35.375(b) is amended to read: 29 (b) To claim credited service under this section, the member shall file a 30 written request with the administrator when the member applies to retire. The 31 administrator shall determine the full actuarial cost of benefits based on the member's
01 total credited service and shall transfer from the teachers' retirement system to this 02 plan [SYSTEM] an amount equal to the sum of the member contributions and any 03 indebtedness payments to the teachers' retirement system and the employer 04 contributions to the teachers' retirement system made on behalf of the employee 05 together with interest earned on those contributions and indebtedness payments. If the 06 amount to be transferred, when combined with the amount of employee contributions 07 and indebtedness payments to this plan [SYSTEM] and the amount of employer 08 contributions on behalf of the employee in this plan [SYSTEM], and interest earned 09 on contributions and indebtedness payments for the employee, is less than the full 10 actuarial cost computed under this subsection, an indebtedness to the plan [SYSTEM] 11 equal to the amount of the difference is established. Interest as prescribed by 12 regulation accrues on the indebtedness. The member must pay any outstanding 13 indebtedness existing at the time the member applies for retirement in full before the 14 member is appointed to retirement under this section. 15 * Sec. 104. AS 39.35.375(c) is amended to read: 16 (c) A member is entitled to receive a public service benefit under this section 17 if the member has at least a total of five years credited service under AS 39.35.095 - 18 39.35.680 [THIS CHAPTER] and credited service from the teachers' retirement plan 19 under AS 14.25.009 - 14.25.220 [SYSTEM] claimed under this section. A public 20 service benefit shall be calculated using the higher of the average monthly 21 compensation for service in this plan [SYSTEM] or the average base salary for 22 service in the teachers' retirement plan under AS 14.25.009 - 14.25.220 [SYSTEM]. 23 The amount of the benefit shall be calculated in accordance with AS 39.35.370(c). 24 * Sec. 105. AS 39.35.375(d) is amended to read: 25 (d) Credited service earned under either this plan [SYSTEM] or the teachers' 26 retirement system that has been claimed for a public service benefit under this section 27 may not be used for any other purpose. A member who claims credited service under 28 this section loses all rights to benefits under AS 14.25 based on the claimed credited 29 service. A member may not claim credited service under this section unless the 30 member claims all of the membership service the member has in the teachers' 31 retirement system. A public service benefit does not constitute a normal or early
01 retirement benefit for purposes of qualifying for a conditional service retirement 02 benefit under AS 14.25.125 or AS 39.35.385. 03 * Sec. 106. AS 39.35.375(f) is amended to read: 04 (f) Notwithstanding AS 14.25.063 and AS 39.35.350, a former member of the 05 teachers' retirement system who is an active member or inactive member of this plan 06 [SYSTEM] may reinstate, under this section, membership service earned under 07 AS 14.25 for which the member received a refund of contributions. 08 * Sec. 107. AS 39.35.375(f) is amended to read: 09 (f) Notwithstanding AS 14.25.063 [AND AS 39.35.350], a former member of 10 the teachers' retirement system who is an active member or inactive member of this 11 plan may reinstate, under this section, membership service earned under AS 14.25 for 12 which the member received a refund of contributions. 13 * Sec. 108. AS 39.35.375(g) is amended to read: 14 (g) If a member retires under this section and subsequently returns to work for 15 an employer under this plan [SYSTEM] or the teachers' retirement system, benefits 16 under this section shall cease during the period of reemployment and shall 17 recommence when the reemployment is ended. The credited service earned during the 18 period of reemployment may not be added to the credited service claimed for a public 19 service benefit under this section. If a member vests and meets the other eligibility 20 requirements under this system or the teachers' retirement system during the 21 reemployment, the member is entitled to a benefit under AS 14.25.009 - 14.25.220 22 [AS 14.25] or 39.35.095 - 39.35.680 [AS 39.35], as appropriate. 23 * Sec. 109. AS 39.35.375 is amended by adding a new subsection to read: 24 (h) In this section, 25 (1) "teachers' retirement system" and "teachers' retirement system 26 under AS 14.25" means the teachers' retirement plan established in AS 14.25.009 - 27 14.25.220; 28 (2) "membership service earned under AS 14.25" means membership 29 service earned under AS 14.25.009 - 14.25.220. 30 * Sec. 110. AS 39.35.381(a) is amended to read: 31 (a) An elected public officer is eligible for a public officer benefit if the officer
01 is retired under AS 14.25.009 - 14.25.220 [AS 14.25 (TEACHERS' RETIREMENT 02 SYSTEM)]. Only fully paid credited service as an elected public officer of a 03 municipality or other political subdivision, earned while the municipality or political 04 subdivision was an employer under this plan [SYSTEM] and while the person was 05 employed full-time under AS 14.25.009 - 14.25.220 [AS 14.25], may be counted 06 under this section. 07 * Sec. 111. AS 39.35.410(f) is amended to read: 08 (f) An employee is not entitled to an occupational disability benefit unless the 09 employee files an application for it with the administrator within 90 days of the date of 10 terminating employment. If the employee is unable to meet a filing requirement of 11 this subsection, it may be waived by the commissioner [PUBLIC EMPLOYEES' 12 RETIREMENT BOARD] if there are extraordinary circumstances that resulted in the 13 employee's inability to meet the filing requirement. [THE BOARD MAY 14 DELEGATE THE AUTHORITY TO WAIVE A FILING DEADLINE UNDER THIS 15 SUBSECTION TO THE ADMINISTRATOR.] 16 * Sec. 112. AS 39.35.475(a), as that subsection read following amendment by sec. 34, ch. 17 146, SLA 1980, until amended by sec. 41, ch. 82, SLA 1986, is amended to read: 18 (a) When the administrator determines that the cost of living has increased and 19 that the financial condition of the retirement fund permits, the administrator [HE] 20 shall increase benefit payments to persons receiving benefits under this plan. For 21 purposes of this subsection, the financial condition of the fund would only permit 22 an increase in benefits when the ratio of total fund assets to the accrued liability 23 meets or exceeds 105 percent. In this subsection, "accrued liability" means the 24 present value of all member benefits accrued by member service in this plan 25 [SYSTEM]. 26 * Sec. 113. AS 39.35.485(a) is amended to read: 27 (a) An employee who is eligible for a benefit calculated in accordance with 28 AS 39.35.370(c) is entitled to a benefit of at least $25 a month for each year of 29 credited service, not including adjustments made under AS 39.35.340 for military 30 service, [AS 39.35.350 FOR REINSTATEMENT OF CREDITED SERVICE,] 31 AS 39.35.360 for credit for earlier service, AS 39.35.370(c) for early retirement,
01 AS 39.35.420 for nonoccupational death benefits, AS 39.35.450 for the survivor's 02 option, former AS 39.35.460 for the level income option, AS 39.35.475 for the post- 03 retirement pension adjustment, and AS 39.35.480 for the cost of living. 04 * Sec. 114. AS 39.35.520(c) is amended to read: 05 (c) At least quarterly, [AT EACH REGULARLY SCHEDULED MEETING 06 OF THE PUBLIC EMPLOYEES' RETIREMENT BOARD,] the administrator shall 07 report to the commissioner of administration [BOARD] on all situations since the 08 administrator's last report in which an adjustment has been prohibited under (b) of this 09 section. If the commissioner of administration [BOARD] finds that there is reason 10 to believe that one or more of the conditions set out in (b) of this section have not been 11 met, the administrator shall notify the member or beneficiary that an adjustment will 12 be made to recover the overpayment. A member or beneficiary who receives notice of 13 adjustment under this subsection may file a request with the commissioner of 14 administration [APPEAL TO THE BOARD] for a waiver of the adjustment under 15 AS 39.35.522. An adjustment may not be required while the waiver request 16 [APPEAL] is pending. 17 * Sec. 115. AS 39.35.522(a) is amended to read: 18 (a) Upon request [APPEAL] by an affected member or beneficiary under (b) 19 of this section, the commissioner of administration [BOARD] may waive an 20 adjustment or any portion of an adjustment made under AS 39.35.520 if, in the 21 opinion of the commissioner of administration [BOARD], 22 (1) the adjustment or portion of the adjustment will cause undue 23 hardship to the member or beneficiary; 24 (2) [REPEALED 25 (3) REPEALED 26 (4)] the adjustment was not the result of erroneous information 27 supplied by the member or beneficiary; 28 (3) [(5)] before the adjustment was made, the member or beneficiary 29 received confirmation from the administrator that the employee's or beneficiary's 30 records were correct; and 31 (4) [(6)] the member or beneficiary had no reasonable grounds to
01 believe the employee's or beneficiary's records were incorrect before the adjustment 02 was made. 03 * Sec. 116. AS 39.35.535(a) is repealed and reenacted to read: 04 (a) Except as provided in (d) of this section, the following persons are entitled 05 to major medical insurance coverage under this section: 06 (1) for employees first hired before July 1, 1986, 07 (A) an employee who is receiving a monthly benefit from the 08 plan and who has elected coverage; 09 (B) the spouse and dependent children of the employee 10 described in (A) of this paragraph; 11 (C) the surviving spouse of a deceased employee who is 12 receiving a monthly benefit from the plan and who has elected coverage; 13 (D) the dependent children of a deceased employee who are 14 dependent on the surviving spouse described in (C) of this paragraph; 15 (2) for members first hired on or after July 1, 1986, 16 (A) an employee who is receiving a monthly benefit from the 17 plan and who has elected coverage for the employee; 18 (B) the spouse of the employee described in (A) of this 19 paragraph if the employee elected coverage for the spouse; 20 (C) the dependent children of the employee described in (A) of 21 this paragraph if the employee elected coverage for the dependent children; 22 (D) the surviving spouse of a deceased employee who is 23 receiving a monthly benefit from the plan and who has elected coverage; 24 (E) the dependent children of a deceased employee who are 25 dependent on the surviving spouse described in (D) of this paragraph if the 26 surviving spouse has elected coverage for the dependent children. 27 * Sec. 117. AS 39.35.680(2) is amended to read: 28 (2) "actuarial adjustment" means the adjustment necessary to obtain 29 equality in value of the aggregate expected payments under two different forms of 30 pension payments, considering expected mortality and interest earnings on the basis of 31 assumptions, factors, and methods specified in regulations issued under this plan
01 [SYSTEM] that are formally adopted [UNDER AS 39.35.042] by the board that 02 clearly preclude employer discretion in the determination of the amount of any 03 member's benefit; 04 * Sec. 118. AS 39.35.680(6) is amended to read: 05 (6) "board" means the Alaska Retirement Management [PUBLIC 06 EMPLOYEES RETIREMENT] Board; 07 * Sec. 119. AS 39.35.680(21) is amended to read: 08 (21) "member" or "employee" 09 (A) means a person eligible to participate in the system and 10 who is covered by the system; 11 (B) includes 12 (i) an active member; 13 (ii) an inactive member; 14 (iii) a vested member; 15 (iv) a deferred vested member; 16 (v) a nonvested member; 17 (vi) a disabled member; 18 (vii) a retired member; 19 (viii) an elected public officer under AS 39.35.381; 20 (C) does not include 21 (i) former members; 22 (ii) persons compensated on a contractual or fee basis; 23 (iii) casual or emergency workers or nonpermanent 24 employees as defined in AS 39.25.200; 25 (iv) persons covered by the Alaska Teachers' 26 Retirement System except as provided under AS 39.35.131 and 27 39.35.381, or persons covered by a [THE OPTIONAL] university 28 retirement program; 29 (v) employees of the division of marine transportation 30 engaged in operating the state ferry system who are covered by a union 31 or group retirement system to which the state makes contributions;
01 (vi) justices of the supreme court or judges of the court 02 of appeals or of the superior or district courts of Alaska; 03 (vii) the administrative director of courts appointed 04 under art. IV, sec. 16 of the state constitution unless the director 05 becomes a member under AS 39.35.158; 06 (viii) members of the elected public officers' retirement 07 system (former AS 39.37); and 08 (ix) contractual employees of the legislative branch of 09 state government under AS 24.10.060(f); 10 (D) may include employees of the division of marine 11 transportation excluded under (C)(v) of this paragraph provided that 12 (i) the State of Alaska formally agrees to their inclusion 13 through the process of collective bargaining; and 14 (ii) no collective bargaining agreement has the effect of 15 obligating contributions made by the state under AS 39.30.150 in the 16 event the state resumes participation in the federal social security 17 system; 18 * Sec. 120. AS 39.35.680(34) is amended to read: 19 (34) "qualified domestic relations order" means a divorce or 20 dissolution judgment under AS 25.24, including an order approving a property 21 settlement, that 22 (A) creates or recognizes the existence of an alternate payee's 23 right to, or assigns to an alternate payee the right to, receive all or a portion of 24 employee contribution account or the benefits payable with respect to an 25 employee; 26 (B) sets out the name and last known mailing address, if any, of 27 the employee and of each alternate payee covered by the order; 28 (C) sets out the amount or percentage of the employee's benefit, 29 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 30 manner in which that amount or percentage is to be determined; 31 (D) sets out the number of payments or period to which the
01 order applies; 02 (E) sets out the retirement plan [SYSTEM] to which the order 03 applies; 04 (F) does not require any type or form of benefit or any option 05 not otherwise provided by AS 39.35.095 - 39.35.680 [THIS CHAPTER]; 06 (G) does not require an increase of benefits in excess of the 07 amount provided by AS 39.35.095 - 39.35.680 [THIS CHAPTER], determined 08 on the basis of actuarial value; and 09 (H) does not require the payment to an alternate payee of 10 benefits that are required to be paid to another alternate payee under another 11 order previously determined to be a qualified domestic relations order; 12 * Sec. 121. AS 39.35.680 is amended by adding new paragraphs to read: 13 (41) "commissioner" means the commissioner of administration; 14 (42) "plan" means the retirement plan established in AS 39.35.095 - 15 39.35.680. 16 * Sec. 122. AS 39.35 is amended by adding new sections to read: 17 Article 9. Employees First Hired on or after July 1, 2006. 18 Sec. 39.35.700. Applicability of AS 39.35.700 - 39.35.990. The provisions of 19 AS 39.35.700 - 39.35.990 apply only to members first hired on or after July 1, 2006, 20 or to members who transfer into the defined contribution plan under AS 39.35.940. 21 Sec. 39.35.710. Defined contribution retirement plan established; federal 22 qualification requirements. (a) A defined contribution retirement plan is established 23 for employees of the state or a political subdivision or public organization of the state. 24 (b) The defined contribution retirement plan is a plan in which savings are 25 accumulated in an individual retirement account for the exclusive benefit of the 26 member or beneficiaries. The plan is established effective July 1, 2006, at which time 27 contributions by employers and members begin. 28 (c) The retirement plan established by AS 39.35.700 - 39.35.990 is intended to 29 qualify under 26 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified 30 retirement plan established and maintained by the state for its employees, for the 31 employees of political subdivisions, public corporations, and public organizations of
01 the state, and for the employees of other employers whose participation is authorized 02 by AS 39.35.700 - 39.35.990 and who participate in the plan set out in AS 39.35.700 - 03 39.35.990. 04 (d) An amendment to AS 39.35.700 - 39.35.990 does not provide a person 05 with a vested right to a benefit if the Internal Revenue Service determines that the 06 amendment will result in disqualification of the plan under the Internal Revenue Code. 07 Sec. 39.35.720. Membership. An employee who becomes a member on or 08 after July 1, 2006, shall participate in the plan set out in AS 39.35.700 - 39.35.990. 09 Sec. 39.35.730. Contributions by members. (a) Each member shall 10 contribute to the member's individual account an amount equal to eight percent of the 11 member's compensation from July 1 to the following June 30. 12 (b) Subject to the limitations on contributions under AS 39.35.780, a member 13 may elect to make additional contributions to the member's individual account. 14 (c) The employer shall deduct the contribution from the member's 15 compensation at the end of each payroll period, and the contribution shall be credited 16 by the plan to the member's individual account. The contributions shall be deducted 17 from member's compensation before the computation of applicable federal taxes and 18 shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may 19 not have the option of making the payroll deduction directly in cash instead of having 20 the contribution picked up by the employer. 21 Sec. 39.35.740. Employment contributions mandatory. Contributions of 22 employees shall be made by payroll deductions. Every included employee shall be 23 considered to consent to payroll deductions. It is of no consequence that a payroll 24 deduction may cause the compensation paid in cash to an employee to be reduced 25 below the minimum required by law. Payment of an employee's compensation, less 26 payroll deductions, is a full and complete discharge and satisfaction of all claims and 27 demands by the employee relating to remuneration of services during the period 28 covered by the payment, except with respect to the benefits provided under the plan. 29 Sec. 39.35.750. Contributions by employers. (a) An employer shall 30 contribute to each member's individual account an amount equal to five percent of the 31 member's compensation from July 1 to the following June 30.
01 (b) An employer shall also contribute an amount equal to a percentage, as 02 certified by the board, of each member's compensation from July 1 to the following 03 June 30 to pay for retiree major medical insurance. This contribution shall be paid 04 into the group health and life benefits fund established by the commissioner of 05 administration under AS 39.30.095 and shall be accounted for in accordance with 06 regulations established by the commissioner. 07 (c) Notwithstanding (b) of this section, the employer contribution for retiree 08 major medical insurance for fiscal year 2007 shall be 1.75 percent of each member's 09 compensation from July 1 to the following June 30. 10 (d) An employer shall also make contributions to the health reimbursement 11 arrangement plan under AS 39.30.300. 12 (e) An employer shall make annual contributions to the plan in an amount 13 determined by the board to be actuarially required to fully fund the cost of providing 14 occupational disability and occupational death benefits under AS 39.35.890 and 15 39.35.892. The contribution required under this subsection for peace officers and fire 16 fighters and the contribution required under this subsection for other employees shall 17 be separately calculated based on the actuarially calculated costs for each group of 18 employees. 19 Sec. 39.35.760. Rollover contributions and distributions. (a) An employee 20 entering the plan may elect, at the time and in the manner prescribed by the 21 administrator, to have all or part of a direct rollover distribution from an eligible 22 retirement plan owned by the member paid directly into the member's individual 23 account. 24 (b) Rollover contributions do not count as a purchase of membership service 25 for the purpose of determining years of service. 26 (c) A distributee may elect, at the time and in the manner prescribed by the 27 administrator, to have all or part of an eligible rollover distribution paid directly to an 28 eligible retirement plan specified by the distributee in the direct rollover. 29 (d) In this section, 30 (1) "direct rollover" means the payment of an eligible rollover 31 distribution by the plan to an eligible retirement plan specified by a distributee who is
01 eligible to elect a direct rollover; 02 (2) "distributee" means a member, or a beneficiary who is the 03 surviving spouse of the member, or an alternate payee; 04 (3) "eligible retirement plan" means 05 (A) a conduit individual retirement account described in 26 06 U.S.C. 408(d)(3)(A); 07 (B) an annuity plan described in 26 U.S.C. 403(a); 08 (C) a qualified trust described in 26 U.S.C. 401(a); 09 (D) an annuity plan described in 26 U.S.C. 403(b); or 10 (E) a governmental plan described in 26 U.S.C. 457(b); 11 (4) "eligible rollover distribution" means a distribution of all or part of 12 a total account to a distributee, except for 13 (A) a distribution that is one of a series of substantially equal 14 installments payable not less frequently than annually over the life expectancy 15 of the distributee or the joint and last survivor life expectancy of the distributee 16 and the distributee's designated beneficiary, as defined in 26 U.S.C. 401(a)(9); 17 (B) a distribution that is one of a series of substantially equal 18 installments payable not less frequently than annually over a specified period 19 of 10 years or more; 20 (C) a distribution that is required under 26 U.S.C. 401(a)(9); 21 (D) the portion of any distribution that is not includable in 22 gross income; 23 (E) a distribution that is on account of hardship; and 24 (F) other distributions that are reasonably expected to total less 25 than $200 during a year. 26 Sec. 39.35.770. Transmittal of contributions. All contributions deducted in 27 accordance with AS 39.35.700 - 39.35.990 shall be transmitted to the plan for deposit 28 in the trust fund as soon as administratively feasible, but in no event later than 15 days 29 following the close of the payroll period. 30 Sec. 39.35.780. Limitations on contributions. Notwithstanding any other 31 provisions of this plan, the annual additions to each member's individual account
01 under this plan and under all defined contribution plans of the employer required to be 02 aggregated with the contributions from this plan under the provisions of 26 U.S.C. 415 03 may not exceed, for any limitation year, the amount permitted under 26 U.S.C. 415 at 04 any time. If the amount of a member's defined contribution plan contributions exceeds 05 the limitation of 26 U.S.C. 415(c) for any limitation year, the administrator shall take 06 any necessary remedial action to correct an excess contribution. The provisions of 26 07 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified 08 defined contribution plans of governmental employees are incorporated as part of the 09 terms and conditions of the plan. 10 Sec. 39.35.790. Vesting. (a) A participating member is immediately and 11 fully vested in that member's contributions and related earnings. 12 (b) A member shall be fully vested in the employer contributions made on that 13 member's behalf, and related earnings, after five years of service. A member is 14 partially vested in the employer contributions made on that member's behalf, and the 15 related earnings, in the ratio of 16 (1) 25 percent with two years of service; 17 (2) 50 percent with three years of service; and 18 (3) 75 percent with four years of service. 19 Sec. 39.35.800. Investment of individual accounts. (a) The board shall 20 provide a range of investment options and permit a participant to exercise investment 21 control over the participant's assets in the member's individual account as provided in 22 this section. If a participant exercises control over the assets in the individual account, 23 the participant is not considered a fiduciary for any reason on the basis of exercising 24 that control. 25 (b) A participant may direct investment of plan funds held in an account 26 among available investment funds in accordance with rules established by the board. 27 (c) A participant may elect to change or transfer all or a portion of the 28 participant's existing account balance among available investment funds not more 29 often than once each day in accordance with the rules established by the administrator. 30 Only the last election received by the administrator before the transmittal of 31 contributions to the trust fund for allocation to the individual account shall be used to
01 direct the investment of the contributions received. 02 (d) Except to the extent clearly set out in the terms of the investment plans 03 offered by the employer to the employee, the employer is not liable to the participant 04 for investment losses if the prudent investment standard has been met. 05 (e) The employer, administrator, state, board, or a person or entity who is 06 otherwise a fiduciary is not liable by reason for any participant's investment loss that 07 results from the participant's directing the investment of plan assets allocated to the 08 participant's account. 09 (f) To the extent that a member's individual account has been divided as 10 provided in a qualified domestic relations order between participants, each participant 11 shall be treated as the holder of a separate individual account for purposes of 12 investment yields, decisions, transfers, and time limitations imposed by this section. 13 Sec. 39.35.810. Distribution election at termination. (a) A member is 14 eligible to elect distribution of the member's account in accordance with this section 15 60 days after termination of employment. 16 (b) Notwithstanding (a) of this section, distribution of all or a portion of the 17 individual account of a member may take place before the 60th day after the 18 termination of employment with the approval of the administrator if the member 19 makes a written request for a distribution under this subsection. The member's spouse 20 must consent to the request in writing if the member is married. Distribution of an 21 individual account may only be made on account of an immediate and heavy financial 22 need of the member for the following reasons and in the amount the need is 23 demonstrated for 24 (1) medical care described in 26 U.S.C. 213(d) incurred by the 25 member, the member's spouse, or the member's dependent, or necessary to obtain that 26 medical care; 27 (2) the purchase of a principal residence for the member; 28 (3) postsecondary education tuition and related educational fees for the 29 next 12-month period for the member, the member's spouse, or a dependent of the 30 member; in this paragraph, "dependent" has the meaning given in 26 U.S.C. 152; 31 (4) prevention of the eviction of the member from the member's
01 principal residence or foreclosure on the mortgage of the member's principal 02 residence; or 03 (5) any need prescribed by the United States Department of the 04 Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of 05 general applicability that satisfies the safe harbor definition of hardship under 06 regulations adopted under 26 U.S.C. 401(k). 07 (c) If a member dies before benefits commence, the member's beneficiary is 08 immediately eligible to elect distribution of the member's share of the member's 09 individual account. 10 (d) Distributions are payable to an alternate payee in accordance with the 11 terms and conditions of a qualified domestic relations order that is received and 12 approved by the administrator as specified in AS 39.35.860. 13 (e) Distributions that are being paid to a member may not be affected by the 14 member's subsequent reemployment with the employer. Upon reemployment, a new 15 individual account shall be established for the member to which any future 16 contributions shall be allocated. Upon subsequent termination of employment, the 17 member's new individual account shall be distributed in accordance with this section. 18 Sec. 39.35.820. Forms of distribution. (a) A participant may elect to receive 19 the participant's share of the individual account in a 20 (1) lump sum payment, which is a single payment of the entire balance 21 in the account; 22 (2) periodic lump sum payment, which is a payment of a portion of the 23 balance in the account, not more than twice each year; 24 (3) period certain annuity payment, which is an annuity payable in a 25 fixed number of monthly installments for a duration of 60, 120, or 180 months; 26 (4) life annuity with a period certain payment, which is an annuity 27 payable until the later of the first day of the month in which the annuitant's death 28 occurs, or the date on which the payment of a fixed number of monthly installments is 29 completed; the period certain for installments is 120 or 180 months; 30 (5) single life annuity payment, which is an annuity payable monthly 31 until the first of the month in which the annuitant's death occurs; or
01 (6) joint and survivor annuity payment, which is an annuity payable 02 monthly to the member until the first of the month in which the member's death 03 occurs; after the member's death, a survivor annuity equal to 50 percent or 100 percent 04 of the member's benefit, as previously elected by the member, shall be paid monthly to 05 the joint annuitant for the remainder of the survivor's lifetime. 06 (b) Upon the death of an annuitant whose payments have commenced, an 07 annuitant's beneficiary shall receive further payments only to the extent provided in 08 accordance with the form of payment that was being made to the annuitant. The 09 remaining portion of the interest shall continue to be distributed at least as rapidly as 10 under the method of distribution being used before the annuitant's death. 11 (c) If a participant dies before the distribution commencement date, 12 distribution of the participant's entire interest to a beneficiary shall be payable in any 13 form other than a joint and survivor annuity. 14 (d) If an unmarried member or other participant fails to elect a form of 15 payment before the distribution commencement date, the account shall be paid to a 16 beneficiary in the form of a lump sum to the extent required by the minimum 17 distribution requirements set out in the Internal Revenue Code. If a married member 18 fails to elect a form of payment before the distribution commencement date, the 19 account shall be paid in the form of a 50 percent joint and survivor annuity, with the 20 member's spouse as the joint annuitant. 21 Sec. 39.35.830. Manner of electing distributions. (a) Any election or any 22 alteration or revocation of a prior election by a participant for any purpose under this 23 plan shall be on forms or made in a manner prescribed for that purpose by the plan 24 administrator. To be effective, the forms required or the required action for any 25 purpose under this plan must be completed and received in accordance with 26 regulations adopted by the commissioner of administration. 27 (b) At any time, but not less than seven days before the benefit 28 commencement date, a member, alternate payee, or beneficiary may change 29 (1) the form of payment election; 30 (2) an election to commence benefits; or 31 (3) the joint annuitant designation.
01 (c) Changes in elections are not allowed on or after seven days before the 02 benefit commencement date. 03 Sec. 39.35.840. Distribution requirements. (a) Payments to a participant 04 shall commence as soon as administratively feasible following the distribution 05 commencement date. The distribution commencement date is the first date on which 06 one of the following occurs: 07 (1) a member meets the requirements of AS 39.35.810 and has made a 08 complete application for payment under AS 39.35.830; 09 (2) a participant has elected to defer receipt of the account to a date 10 specified, the date has been attained, and the participant has made a complete 11 application for payment; 12 (3) a member attains normal retirement age and has not made an 13 application for payment or elected to defer receipt of the account to a date later than 14 normal retirement age; 15 (4) a member's beneficiary does not make an application for benefits 16 and five years have elapsed since the member's death; 17 (5) notwithstanding (a) of this section, a participant whose account has 18 a balance of $1,000 or less meets the requirements of AS 39.35.810, at which time the 19 participant must take payment of the participant's account. 20 (b) The entire interest of a member must be distributed or must begin to be 21 distributed not later than the member's required beginning date. 22 (c) If a member dies after the distribution of the member's interest has begun 23 but before the distribution has been completed, the remaining portion of the interest 24 shall continue to be distributed at least as rapidly as under the method of distribution 25 being used before the member's death. 26 (d) If a member has made a distribution election and dies before the 27 distribution of the member's interest begins, distribution of the member's entire interest 28 shall be completed by December 31 of the calendar year containing the fifth 29 anniversary of the member's death. However, if any portion of the member's interest 30 is payable to a designated beneficiary, distributions may be made over the life of the 31 designated beneficiary or over a period certain not greater than the life expectancy of
01 the designated beneficiary, commencing on or before December 31 of the calendar 02 year immediately following the calendar year in which the member died, and, if the 03 designated beneficiary is the member's surviving spouse, the date distributions are 04 required to begin may not be earlier than the later of December 31 of the calendar year 05 (1) immediately following the calendar year in which the member died, or (2) in which 06 the member would have attained 70 1/2 years of age, whichever is earlier. If the 07 surviving spouse dies after the member but before payments to the spouse have begun, 08 the provisions of this subsection apply as if the surviving spouse were the member. 09 An amount paid to a child of the member shall be treated as if it were paid to the 10 surviving spouse if the amount becomes payable to the surviving spouse when the 11 child reaches the age of majority. 12 (e) If a member has not made a distribution election before the member's 13 death, the member's designated beneficiary must elect the method of distribution not 14 later than December 31 of the calendar year (1) in which distributions would be 15 required to begin under this section, or (2) that contains the fifth anniversary of the 16 date of death of the member, whichever is earlier. If the member does not have a 17 designated beneficiary or if the designated beneficiary does not elect a method of 18 distribution, distribution of the member's entire interest must be completed by 19 December 31 of the calendar year containing the fifth anniversary of the member's 20 death. 21 (f) For purposes of (b) of this section, distribution of a member's interest is 22 considered to begin (1) on the member's required beginning date, or (2) if the 23 designated beneficiary is the member's surviving spouse and the surviving spouse dies 24 after the member but before payments to the spouse have begun, on the date 25 distribution is required to begin to the surviving spouse. If distribution in the form of 26 an annuity irrevocably commences to the member before the required beginning date, 27 the date distribution is considered to begin is the date that the distribution actually 28 commences. 29 (g) Notwithstanding any contrary provisions of AS 39.35.700 - 39.35.990, the 30 requirements of this section apply to all distributions of a member's interest and take 31 precedence over any inconsistent provisions of AS 39.35.700 - 39.35.990.
01 (h) All distributions required under this section are determined and made in 02 accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, 03 including any minimum distribution incidental benefit requirement. 04 (i) In this section, 05 (1) "designated beneficiary" means the individual who is designated as 06 the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations 07 adopted under that statute; 08 (2) "required beginning date" means the first day of April of the 09 calendar year following the calendar year in which the member either attains 70 1/2 10 years of age or actually terminates employment, whichever is later. 11 Sec. 39.35.850. Designation of beneficiary. (a) Each participant shall have 12 the right to designate a beneficiary and shall have the right, at any time, to revoke the 13 designation or to substitute another beneficiary, subject to the following limitation: if a 14 married member elects a nonspouse beneficiary, the value of the benefit payable to the 15 beneficiary may not exceed 50 percent of the member's portion of the account balance, 16 and the member's spouse shall automatically be considered the beneficiary for the 17 remaining 50 percent of the account balance, unless the spouse consents to the 18 beneficiary designation in a writing that is notarized or witnessed by the administrator. 19 If the spouse consents in this manner, a married member may designate a nonspouse 20 beneficiary for the entire benefit or any portion the benefit as part of an available form 21 of payment contained in this plan, 22 (1) except to the extent a qualified domestic relations order filed with 23 the administrator provides for payment to a former spouse or other dependent of the 24 member; or 25 (2) unless the member filed a revocation of beneficiary accompanied 26 by a written consent to the revocation from the present spouse and each person entitled 27 under the order; however, consent of the present spouse is not required if the member 28 and the present spouse had been married for less than one year on the date of the 29 member's death and if the member established when filing the revocation that the 30 member and the present spouse were not cohabiting. 31 (b) Except as provided in (a) of this section, the member may change or
01 revoke the designation without notice to the beneficiary or beneficiaries at any time. 02 If a member designates more than one beneficiary, each shares equally unless the 03 member specifies a different allocation or preference. The designation of a 04 beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a 05 beneficiary shall be made on a form provided by the administrator and is not effective 06 until filed with the administrator. 07 (c) If a member fails to designate a beneficiary, or if no designated beneficiary 08 survives the member, the death benefit shall be paid 09 (1) to the surviving spouse or, if there is none surviving; 10 (2) to the surviving children of the member in equal parts or, if there 11 are none surviving; 12 (3) to the surviving parents in equal parts or, if there are none 13 surviving; 14 (4) to the estate. 15 (d) A person claiming entitlement to benefits payable under AS 39.35.700 - 16 39.35.990 as a consequence of a member's death shall provide the administrator with a 17 marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. 18 Documents establishing entitlement may be filed with the administrator immediately 19 after a change in the member's marital status. If the administrator does not receive 20 notification of a claim before the date 10 days after the member's death, the person 21 claiming entitlement is not entitled to receive from the division of retirement and 22 benefits any benefit already paid by the administrator. 23 Sec. 39.35.860. Rights under qualified domestic relations order. (a) 24 Notwithstanding the nonalienation provisions in AS 39.35.900(a), the plan 25 administrator may direct that benefits be paid to someone other than a member or 26 beneficiary under a valid qualified domestic relations order that is executed by the 27 judge of a competent court in accordance with applicable state law and that has been 28 accepted by the administrator. 29 (b) The administrator shall determine whether an order meets the requirements 30 of this section within a reasonable period after receiving an order. The administrator 31 shall notify the member and any alternate payee that an order has been received and
01 indicate to the member and any alternate payee when the order is accepted. A separate 02 account for the alternate payee portion shall be established as soon as administratively 03 feasible after the order has been accepted by the administrator. 04 Sec. 39.35.870. Eligibility for retirement and medical benefits. (a) In 05 order to obtain medical benefits under AS 39.35.880, an active member must retire 06 directly from the plan. A member is eligible to retire from the plan if the member has 07 been an active member for at least 12 months before application for retirement and 08 (1) the member has at least 25 years of membership service as a peace 09 officer or fire fighter or at least 30 years of membership service for all other 10 employees; or 11 (2) the member reaches the normal retirement age and has at least 10 12 years of membership service. 13 (b) The normal retirement age is the age set for Medicare eligibility at the time 14 the member retires. 15 (c) A member's surviving spouse is eligible to elect medical benefits under 16 AS 39.35.880 if the member had retired, or was eligible for retirement and medical 17 benefits at the time of the member's death. 18 (d) Members shall apply for retirement and medical benefits on the forms and 19 in the manner prescribed by the administrator. 20 (e) Participation in the retiree major medical insurance plan is not required in 21 order to participate in the health reimbursement arrangement. 22 (f) A person eligible for retirement and medical benefits is not required to 23 participate in the health reimbursement arrangement in order to participate in the 24 retiree major medical insurance plan. 25 (g) An eligible person must make the irrevocable election to participate or not 26 participate in the retiree major medical insurance plan by reaching 70 1/2 years of age, 27 or upon application for retirement and medical benefits, whichever is later. 28 Sec. 39.35.880. Medical benefits. (a) The medical benefits available to 29 eligible persons are access to the retiree major medical insurance plan and to the 30 health reimbursement arrangement under AS 39.30.300. Access to the retiree major 31 medical insurance plan means that an eligible person may not be denied insurance
01 coverage except for failure to pay the required premium. 02 (b) Retiree major medical insurance plan coverage elected by an eligible 03 member under this section covers the eligible member, the spouse of the eligible 04 member, and the dependent children of the eligible member. 05 (c) Retiree major medical insurance plan coverage elected by a surviving 06 spouse of an eligible member under this section covers the surviving spouse and the 07 dependent children of the eligible member who are dependent on the surviving spouse. 08 (d) Major medical insurance coverage takes effect on the first day of the 09 month following the date of the administrator's approval of the election and stops 10 when the person who elects coverage dies or fails to make a required premium 11 payment. 12 (e) The coverage for persons 65 years of age or older is the same as that 13 available for persons under 65 years of age. The benefits payable to those persons 65 14 years of age or older supplement any benefits provided under the federal old age, 15 survivors and disability insurance program. 16 (f) The medical and optional insurance premiums owed by the person who 17 elects coverage may be deducted from the health reimbursement arrangement. If the 18 amount of the health reimbursement arrangement becomes insufficient to pay the 19 premiums, the person who elects coverage under (a) of this section shall pay the 20 premiums directly. 21 (g) The cost of premiums for retiree major medical insurance coverage for an 22 eligible member or surviving spouse who is 23 (1) not eligible for Medicare is an amount equal to the full monthly 24 group premiums for retiree major medical insurance coverage; 25 (2) eligible for Medicare is the following percentage of the premium 26 amounts established for retirees who are eligible for Medicare: 27 (A) 30 percent if the member had 10 or more, but less than 15, 28 years of service; 29 (B) 25 percent if the member had 15 or more, but less than 20, 30 years of service; 31 (C) 20 percent if the member had 20 or more, but less than 25,
01 years of service; 02 (D) 15 percent if the member had 25 or more, but less than 30, 03 years of service; 04 (E) 10 percent if the member had 30 or more years of service. 05 (h) The eligibility for retiree major medical insurance coverage for an 06 alternate payee under a qualified domestic relations order shall be determined based 07 on the eligibility of the member to elect coverage. The alternate payee shall pay the 08 full monthly premium for retiree major medical insurance coverage. 09 (i) A person who is entitled to retiree major medical insurance coverage shall 10 (1) be informed by the administrator in writing 11 (A) that the health insurance coverage available to retired 12 members may be different from the health insurance coverage provided to 13 employees; 14 (B) of time limits for selecting optional health insurance 15 coverage and whether the election is irrevocable; and 16 (2) indicate in writing on a form provided by the administrator that the 17 person has received the information required by this subsection and whether the 18 person has chosen to receive optional health insurance coverage. 19 (j) The monthly group premiums for retiree major medical insurance coverage 20 are established by the administrator in accordance with AS 39.30.095. Nothing in 21 AS 39.35.700 - 39.35.990 guarantees a person who elects coverage under (a) of this 22 section a monthly group premium rate for retiree major medical insurance coverage 23 other than the premium in effect for the month in which the premium is due for 24 coverage for that month. 25 (k) In this section, "health reimbursement arrangement" means the plan 26 established in AS 39.30.300. 27 Sec. 39.35.890. Occupational disability benefits and reemployment of 28 disabled employees. (a) An employee is eligible for an occupational disability 29 benefit if employment is terminated because of a total and apparently permanent 30 occupational disability before the employee's normal retirement date. 31 (b) The occupational disability benefits accrue beginning the first day of the
01 month following termination of employment as a result of the disability and are 02 payable the last day of the month. If a final determination granting the benefit is not 03 made in time to pay the benefit when due, a retroactive payment shall be made to 04 cover the period of deferment. The last payment shall be for the first month in which 05 the disabled employee 06 (1) dies; 07 (2) recovers from the disability; 08 (3) fails to meet the requirements under (f) or (j) of this section; or 09 (4) reaches normal retirement age. 10 (c) If the disabled employee becomes ineligible to receive occupational 11 disability benefits before the normal retirement date, the disabled employee shall then 12 be entitled to receive retirement benefits if the employee would have been eligible for 13 the benefit had employment continued during the period of disability. The period of 14 disability constitutes membership service in regard to determining eligibility for 15 retirement. 16 (d) The monthly amount of an occupational disability benefit is 40 percent of 17 the disabled employee's gross monthly compensation at the time of termination due to 18 disability. While an employee is receiving disability benefits, based on the disabled 19 employee's gross monthly compensation at the time of termination due to disability, 20 the employer shall make contributions 21 (1) to the employee's individual account under AS 39.35.730 on behalf 22 of the employee, without deduction from the employee's disability payments; and 23 (2) on behalf of the employee under AS 39.35.750. 24 (e) An employee is not entitled to an occupational disability benefit unless the 25 employee files an application for an occupational disability benefit with the 26 administrator within 90 days after the date of terminating employment. If the 27 employee is unable to meet a filing requirement of this subsection, the filing 28 requirement may be waived by the administrator if there are extraordinary 29 circumstances that resulted in the employee's inability to meet the filing requirement. 30 (f) A disabled employee receiving an occupational disability benefit shall 31 undergo a medical examination as often as the administrator considers advisable, but
01 not more frequently than once each year. The administrator shall determine the place 02 of the examination and engage the physician or physicians. If, in the judgment of the 03 administrator, the examination indicates that the retired employee is no longer 04 incapacitated because of a total and apparently permanent occupational disability, the 05 administrator may not issue further disability benefits to the employee. 06 (g) A disabled employee's occupational disability benefit terminates when the 07 disabled employee first attains eligibility for normal retirement. At that time, the 08 employee's retirement benefit shall be determined under the provisions of 09 AS 39.35.820 - 39.35.840, 39.35.870, and 39.35.880. An employee receiving 10 disability benefits up until eligibility for retirement shall be considered to have retired 11 directly from the plan. 12 (h) Notwithstanding (g) of this section, at the time a peace officer or fire 13 fighter receiving occupational disability benefits under this section first attains 14 eligibility for normal retirement, the employee shall irrevocably elect to receive 15 retirement benefits in the amount calculated as the 16 (1) employee's retirement benefit calculated under the provisions of 17 AS 39.35.820 - 39.35.840; or 18 (2) employee's retirement benefit calculated as if the provisions of 19 AS 39.35.370(c) were to apply; however, retirement benefits paid under this paragraph 20 may not be made from the trust fund of the public employees' defined benefit 21 retirement plan. 22 (i) Notwithstanding (b)(3) of this section, a peace officer or fire fighter who 23 retires under (h) of this section is not subject to the requirements of (f) or (j) of this 24 section during retirement. 25 (j) An employee appointed to disability benefits shall apply to the division of 26 vocational rehabilitation within 30 days after the date disability benefits commence. 27 The employee shall be enrolled in a rehabilitation program if the employee meets the 28 eligibility requirements of the division of vocational rehabilitation. Unless the 29 employee demonstrates cause, benefits shall terminate at the end of the first month in 30 which a disabled employee 31 (1) fails to report to the division of vocational rehabilitation;
01 (2) is certified by the division of vocational rehabilitation as failing to 02 cooperate in a vocational rehabilitation program; 03 (3) fails to interview for a job; or 04 (4) fails to accept a position offered. 05 (k) Upon the death of a disabled employee who is receiving or is entitled to 06 receive an occupational disability benefit, the administrator shall pay the surviving 07 spouse a surviving spouse's pension, equal to 40 percent of the employee's monthly 08 compensation at the termination of employment because of occupational disability. If 09 there is no surviving spouse, the administrator shall pay the survivor's pension in equal 10 parts to the dependent children of the employee. The first payment of the surviving 11 spouse's pension or of a dependent child's pension shall accrue from the first day of 12 the month following the employee's death and is payable the last day of the month. 13 The last payment shall be made for the last month in which there is an eligible 14 surviving spouse or child. On the date the normal retirement of the employee would 15 have occurred if the employee had lived, the retirement benefit shall be determined 16 under the provisions of AS 39.35.820 - 39.35.840, 39.35.870, and 39.35.880. An 17 employee who died while receiving disability benefits shall be considered to have 18 retired directly from the plan on the date the normal retirement of the employee would 19 have occurred if the employee had lived. 20 (l) In this section, "occupational disability" has the meaning given in 21 AS 39.35.680. 22 Sec. 39.35.892. Occupational death benefit. (a) If (1) the death of an 23 employee occurs before the employee's retirement and before the employee's normal 24 retirement date, (2) the proximate cause of death is a bodily injury sustained or a 25 hazard undergone while in the performance and within the scope of the employee's 26 duties, and (3) the injury or hazard is not the proximate result of wilful negligence of 27 the employee, a monthly survivor's pension shall be paid to the surviving spouse. If 28 there is no surviving spouse or if the spouse later dies, the monthly survivor's pension 29 shall be paid in equal parts to the dependent children of the employee. 30 (b) The first payment of the surviving spouse's pension or of a dependent 31 child's pension shall be made for the month following the month in which the
01 employee dies, and payment shall cease to be made beginning with the month in 02 which the employee would have first qualified for retirement. 03 (c) The monthly survivor's pension in (b) of this section for survivors of 04 employees who were not peace officers or fire fighters is 40 percent of the employee's 05 monthly compensation in the month in which the employee dies. The monthly 06 survivor's pension in (b) of this section for survivors of employees who were peace 07 officers or fire fighters is 50 percent of the monthly compensation in the month in 08 which the employee dies. While the monthly survivor's pension is being paid, the 09 employer shall make contributions on behalf of the employee's beneficiaries based on 10 the deceased employee's gross monthly compensation at the time of occupational 11 death 12 (1) to the employee's individual account under AS 39.35.730, without 13 deduction from the survivor's pension; and 14 (2) to the appropriate accounts and funds under AS 39.35.750. 15 (d) If an employee's death is caused by an act of assault, assassination, or 16 terrorism directly related to the person's status as an employee, whether the act occurs 17 on or off the employee's job site, the death shall be considered to have occurred in the 18 performance of and within the scope of the employee's duties for purposes of (a)(2) of 19 this section. If the expressed or apparent motive and intent of the perpetrator of the 20 harm inflicted upon the employee was due to the performance of the employee's job 21 duties or employment, the death shall be considered to be directly related to the 22 employee's status as an employee. An employee's job duties are those performed 23 within the course and scope of the person's employment with an employer. 24 (e) On the date the normal retirement of the employee would have occurred if 25 the employee had lived, the retirement benefit shall be determined under the 26 provisions of AS 39.35.820 - 39.35.840, 39.35.870, and 39.35.880. An employee who 27 died and whose survivors receive occupational death benefits under this section shall 28 be considered to have retired directly from the plan on the date the normal retirement 29 of the employee would have occurred if the employee had lived. 30 Sec. 39.35.895. Amendment and termination of plan. (a) The state has the 31 right to amend the plan at any time and from time to time, in whole or in part,
01 including the right to make retroactive amendments referred to in 26 U.S.C. 401(b). 02 (b) The plan administrator may not modify or amend the plan retroactively in 03 such a manner as to reduce the benefits of any member accrued to date under the plan 04 by reason of contributions made before the modification or amendment except to the 05 extent that the reduction is permitted by the Internal Revenue Code. 06 (c) The state may, in its discretion, terminate the plan in whole or part at any 07 time without liability for the termination. If the plan is terminated, all investments 08 remain in force until all individual accounts have been completely distributed under 09 the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer. 10 (d) Any contribution made by an employer to the plan because of a mistake of 11 fact must be returned to the employer by the administrator within one year after the 12 contribution or discovery, whichever is later. 13 Sec. 39.35.900. Exclusive benefit. (a) The corpus or income of the assets 14 held in trust as required by the plan may not be diverted or used for other than the 15 exclusive benefit of the participants. 16 (b) If plan benefits are provided through the distribution of annuity or 17 insurance contracts, any refunds or credits in excess of plan benefits due to dividends, 18 earnings, or other experience rating credits, or surrender or cancellation credits, shall 19 be paid to the trust fund. 20 (c) The assets of the plan may not be used to pay premiums or contributions of 21 the employer under another plan maintained by the employer. 22 Sec. 39.35.910. Nonguarantee of returns, rates, or benefit amounts. The 23 plan created by AS 39.35.700 - 39.35.990 is a defined contribution plan, not a defined 24 benefit plan. The amount of money in the account of a participant depends on the 25 amount of contributions and the rate of return from investments of the account that 26 varies over time. If benefits are paid in the form of an annuity, the benefit amount 27 payable is dependent on the amount of money in the account and the interest rates 28 applied and service fees charged by the annuity payor at the time benefits are first 29 paid. Nothing in this plan guarantees a participant 30 (1) a rate of return or interest rate other than that actually earned by the 31 account of the participant, less applicable administrative expenses; or
01 (2) an annuity based on interest rates or service charges other than 02 interest rates available from and service charges by the annuity payor in effect at the 03 time the annuity is paid. 04 Sec. 39.35.920. Nonguarantee of employment. The provisions of 05 AS 39.35.700 - 39.35.990 are not a contract of employment between an employer and 06 an employee, nor do they confer a right of an employee to be continued in the 07 employment of an employer, nor are they a limitation of the right of an employer to 08 discharge an employee with or without cause. 09 Sec. 39.35.930. Fraud. (a) A person who knowingly makes a false statement 10 or falsifies or permits to be falsified a record of this plan in an attempt to defraud the 11 plan is guilty of a class A misdemeanor. 12 (b) In this section, "knowingly" has the meaning given in AS 11.81.900(a). 13 Sec. 39.35.940. Transfer into defined contribution plan by nonvested 14 members of defined benefit plan. (a) Subject to (i) of this section, an active 15 member of the defined benefit retirement plan of the public employees' retirement 16 system is eligible to participate in the defined contribution retirement plan established 17 under AS 39.35.700 - 39.35.990, if that member has not vested. Participation in the 18 defined contribution retirement plan is in lieu of participation in the defined benefit 19 retirement plan established under AS 39.35.095 - 39.35.680. 20 (b) A member who has vested in a defined benefit retirement plan is not 21 eligible to transfer under this section. 22 (c) Each eligible member who elects to participate in the defined contribution 23 retirement plan shall have transferred to a new account the employee contribution 24 account balance held in trust for the member under the defined benefit retirement plan 25 of the public employees' retirement system. A matching employer contribution shall 26 be made on behalf of that employee to the new account. The employer shall make the 27 matching contribution from funds other than the trust funds of the defined benefit 28 retirement plan established under AS 39.35.095 - 39.35.680. 29 (d) Upon a transfer, all membership service previously earned under the 30 defined benefit retirement plan shall be nullified for purposes of entitlement to a future 31 benefit under the defined benefit retirement plan but shall be credited for purposes of
01 eligibility to elect medical benefits under AS 39.35.870. Membership service allowed 02 for credit toward medical benefits does not include any service credit purchased for 03 employment by an employer who is not a participating employer in this chapter. 04 (e) An eligible member whose accounts are subject to a qualified domestic 05 relations order may not make an election to participate in the defined contribution 06 retirement plan under this subsection unless the qualified domestic relations order is 07 amended or vacated and court-certified copies of the order are received by the 08 administrator. 09 (f) As directed by the participant, the board shall transfer or cause to be 10 transferred the appropriate amounts to the designated account. The board shall 11 establish transfer procedures by regulation, but the actual transfer may not be later 12 than 30 days after the effective date of the member's participation in the defined 13 contribution retirement plan unless the major financial markets for securities available 14 for a transfer are seriously disrupted by an unforeseen event that also causes the 15 suspension of trading on any national securities exchange in the country where the 16 securities were issued. In that event, the 30-day period of time may be extended by a 17 resolution of the board of trustees. Transfers are not commissionable or subject to 18 other fees and may be in the form of securities or cash as determined by the board. 19 Securities shall be valued as of the date of receipt in the participant's account. 20 (g) If the board or the administrator receives notification from the United 21 States Department of the Treasury, Internal Revenue Service, that this section or a 22 portion of this section will cause the retirement system under this chapter, or a portion 23 of the retirement system under this chapter, to be disqualified for tax purposes under 24 the Internal Revenue Code, the portion that will cause the disqualification does not 25 apply, and the board and the administrator shall notify the presiding officers of the 26 legislature. 27 (h) The election to participate in the defined contribution retirement plan must 28 be made in writing on forms and in the manner prescribed by the administrator. 29 Before accepting an election to participate in the defined contribution retirement plan, 30 the administrator must provide the employee planning on making an election to 31 participate in the defined contribution retirement plan with information, including
01 calculations to illustrate the effect of moving the employee's retirement plan from the 02 defined benefit retirement plan to the defined contribution retirement plan as well as 03 other information to clearly inform the employee of the potential consequences of the 04 employee's election. An election made under this subsection to participate in the 05 defined contribution retirement plan is irrevocable. Upon making the election, the 06 participant shall be enrolled as a member of the defined contribution retirement plan, 07 the member's participation in the plan shall be governed by the provisions of 08 AS 39.35.700 - 39.35.990, and the member's participation in the defined benefit 09 retirement plan under AS 39.35.115 shall terminate. The participant's enrollment in 10 the defined contribution retirement plan shall be effective the first day of the month 11 after the administrator receives the completed enrollment forms. An election made by 12 an eligible member who is married is not effective unless the election is signed by the 13 individual's spouse. 14 (i) A member may make an election under this section only if the member's 15 employer participates in both the defined benefits retirement plan and the defined 16 contribution retirement plan and consents to transfers under this section. The 17 employer shall notify the administrator if the employer consents to allowing the 18 employer's members to choose to transfer from the defined benefits retirement plan to 19 the defined contribution retirement plan under this section. An employer's notice to 20 allow transfers is irrevocable and applicable to all eligible employees of the employer. 21 (j) In this section, 22 (1) "defined benefit retirement plan" means the retirement plan 23 established in AS 39.35.095 - 39.35.680; 24 (2) "defined contribution retirement plan" means the retirement plan 25 established in AS 39.35.700 - 39.35.990. 26 Sec. 39.35.950. Request by political subdivision to participate and 27 adoption of resolution. A municipality or other political subdivision of the state may 28 request to become an employer in this plan. The request shall be made after adoption 29 of a resolution by the legislative body of the political subdivision and after approval of 30 the resolution by the person required by law to approve the resolution. A certified 31 copy of the resolution shall be filed with the administrator. If the administrator
01 approves the request for participation, the political subdivision is an employer of the 02 plan. 03 Sec. 39.35.955. Request by public organization to participate and 04 adoption of resolution. A public organization may request to become an employer in 05 this plan. The request shall be made after adoption of a resolution by the governing 06 body of the public organization. A certified copy of the resolution shall be filed with 07 the administrator. If the administrator approves the request for participation, the 08 public organization is an employer of the plan. 09 Sec. 39.35.960. Membership in teachers' and public employees' 10 retirement systems. A person who is employed at least half-time in the public 11 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990) during the 12 same period that the person is employed at least half-time in a position in the teachers' 13 defined contribution retirement plan (AS 14.25.310 - 14.25.590) shall receive credited 14 service under each plan for half-time employment. However, the amount of credited 15 service a person receives under the public employees' defined contribution retirement 16 plan during a school year may not exceed the amount necessary, when added to the 17 amount of credited service earned during the school year under the teachers' defined 18 contribution retirement plan, to equal one year of credited service. 19 Sec. 39.35.965. Army and air national guard employees. A regular full- 20 time civilian employee of the Alaska Army National Guard and Air National Guard 21 whose entire salary is paid from allotted federal funds is included in the public 22 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990) if the 23 federal or state government pays the employer's contributions. If the amount that the 24 federal government may legally contribute to the plan is lower than the required 25 employer's contribution, the state government shall contribute the difference. If the 26 employer's contributions are not paid when due, service credit for the period of 27 delinquency may not be granted until the contributions are paid. 28 Sec. 39.35.970. North Pacific Fishery Management Council employees. 29 An employee of the North Pacific Fishery Management Council appointed under 16 30 U.S.C. 1852(f)(1) (Sec. 302(f)(1) of P.L. 94-265) whose compensation is paid from 31 allotted federal funds is included in the public employees' defined contribution
01 retirement plan (AS 39.35.700 - 39.35.990) if the council pays the employer's 02 contributions. If the employer's contributions are not paid when due, credited service 03 for the period of delinquency may not be granted until the contributions are paid. 04 Sec. 39.35.990. Definitions. In AS 39.35.700 - 39.35.990, unless the context 05 requires otherwise, 06 (1) "administrator" means the commissioner of administration or the 07 commissioner's designee; 08 (2) "alternate payee" means the person for whom an amount has been 09 separated into an account under a qualified domestic relations order; 10 (3) "annuitant" means a member, beneficiary, or alternate payee who is 11 receiving a benefit under this plan; 12 (4) "beneficiary" means the person or persons entitled under the 13 provisions of this plan to receive benefits after the death of a member or alternate 14 payee; 15 (5) "board" has the meaning given in AS 39.35.680; 16 (6) "calendar year" has the meaning given in AS 39.35.680; 17 (7) "compensation" 18 (A) means 19 (i) the total remuneration earned by an employee for 20 personal services rendered, including cost-of-living differentials, as 21 reported on the employee's Federal Income Tax Withholding Statement 22 (Form W-2) from the employer for the calendar year; 23 (ii) the member contribution to the public employees' 24 retirement system under AS 39.35.730, employee deferrals under 25 AS 39.45.010, the wage reduction amount contributed to the Alaska 26 Supplemental Annuity Plan under AS 39.30.150(a), and the wage 27 reduction amount contributed to the Alaska Supplemental Benefit Plan 28 under AS 39.30.150(c), as those statutes may be amended from time to 29 time; 30 (B) does not include retirement benefits, severance pay or other 31 separation bonuses, welfare benefits, per diem, expense allowances, workers'
01 compensation payments, payments for leave not used whether those leave 02 payments are scheduled payments, lump-sum payments, donations, or cash-ins, 03 any remuneration contributed by the employer for or on account of the 04 employee under this plan or under any other qualified or nonqualified 05 employee benefit plan, any remuneration not specifically included above 06 which would have been excluded under 26 U.S.C. 3121(a) (Internal Revenue 07 Code) if the employer had remained in the Federal Social Security System, or 08 any remuneration paid by the employer in excess of the Social Security 09 Taxable Wage Base for the calendar year; 10 (C) notwithstanding (B) of this paragraph, includes any amount 11 that is contributed by the employer under a salary reduction agreement and that 12 is not includible in the gross income of the employee under 26 U.S.C. 125, 13 132(f)(4), 402(e)(3), 402(h)(1)(B) or 403(b) (Internal Revenue Code); the 14 annual compensation limitation for the member, which is so taken into account 15 for those purposes, may not exceed $200,000, as adjusted for the cost of living 16 in accordance with 26 U.S.C. 401(a)(17)(B) (Internal Revenue Code), with the 17 limitation for a fiscal year being the limitation in effect for the calendar year 18 within which the fiscal year begins; 19 (8) "dependent child" has the meaning given in AS 39.35.680; 20 (9) "distribution commencement date" has the meaning given in 21 AS 39.35.840(a); 22 (10) "employer" means 23 (A) the State of Alaska; or 24 (B) a political subdivision or public organization of the state 25 that participates in the plan; 26 (11) "fund" means the assets of the plan; 27 (12) "individual account" means the total maintained by the plan in an 28 investment account within the trust fund, established for each member for the purposes 29 of allocation of the member's contributions, the employer's contributions on behalf of 30 the member, and earnings credited to each of those contributions, investment gains 31 and losses, and expenses; as well as reporting of the member's benefit under the plan;
01 (13) "Internal Revenue Code" means the Internal Revenue Code of 02 1986, as amended; 03 (14) "investment funds" means those separate funds that are provided 04 within and that make up the trust fund and that are established for the purpose of 05 directing investment through the exercise of the sole control of a member, beneficiary, 06 or alternate payee under the terms of the plan and trust agreement; 07 (15) "limitation year" means the year for which contributions are made 08 to a member's individual account as reported to the Internal Revenue Service and as 09 meets the limits described in 26 U.S.C. 415(c); 10 (16) "member" means an employee of an employer or former 11 employee of an employer who retains a right to benefits under the plan, but does not 12 include full-time or part-time instructors of the Department of Labor and Workforce 13 Development; 14 (17) "membership service" means full-time or part-time employment 15 with an employer in the plan; 16 (18) "normal retirement age" means the age set for Medicare eligibility 17 at the time the member retires; 18 (19) "participant" means the person who has a vested right to an 19 individual account, such as a member, an alternate payee if the account is subject to a 20 qualified domestic relations order, the member's beneficiary if the member is 21 deceased, or an alternate payee's beneficiary if the alternate payee is deceased; 22 (20) "peace officer" or "fire fighter" has the meaning given in 23 AS 39.35.680; 24 (21) "plan" means the retirement plan established in AS 39.35.700 - 25 39.35.990; 26 (22) "prudent investment standard" means the degree of care, skill, 27 prudence, and diligence under the circumstances then prevailing that a prudent person 28 acting in a like capacity and familiar with such matters would use in the conduct of an 29 enterprise of a like character and with like aims; 30 (23) "qualified domestic relations order" means a divorce or 31 dissolution judgment under AS 25.24, including an order approving a property
01 settlement, that 02 (A) creates or recognizes the existence of an alternate payee's 03 right to, or assigns to an alternate payee the right to, receive all or a portion of 04 an individual account or the benefits payable with respect to a member; 05 (B) sets out the name and last known mailing address, if any, of 06 the member and of each alternate payee covered by the order; 07 (C) sets out the amount or percentage of the member's benefit, 08 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 09 manner in which that amount or percentage is to be determined; 10 (D) sets out the number of payments or period to which the 11 order applies; 12 (E) sets out the retirement plan to which the order applies; 13 (F) does not require any type or form of benefit or any option 14 not otherwise provided by AS 39.35.700 - 39.35.990; 15 (G) does not require an increase of benefits in excess of the 16 amount provided by AS 39.35.700 - 39.35.990; and 17 (H) does not require the payment to an alternate payee of 18 benefits that are required to be paid to another alternate payee under another 19 order previously determined to be a qualified domestic relations order; 20 (24) "retiree" means an eligible person who has elected to receive 21 medical benefits under AS 39.35.880; 22 (25) "surviving spouse" means the spouse of an employee who has 23 been married to the employee for at least one year at the time of the employee's death; 24 (26) "system" has the meaning given in AS 39.35.680; 25 (27) "year of service" means the equivalent of 52 weeks of permanent 26 full-time employment, which may consist of a combination of permanent full-time or 27 permanent part-time membership service; in this paragraph, "permanent full-time" and 28 "permanent part-time" have the meanings given in AS 39.35.680. 29 * Sec. 123. AS 39.45.030(a) is amended to read: 30 (a) The Alaska Retirement Management [STATE PENSION 31 INVESTMENT] Board is authorized, subject to contracts with individual employees,
01 to invest the funds held under a deferred compensation program. The board has the 02 same powers and duties concerning the management and investment in regard to those 03 funds as are provided under AS 37.10.220 [AS 14.25.180]. 04 * Sec. 124. AS 39.45.030(g) is amended to read: 05 (g) In this section, "board" means the Alaska Retirement Management 06 [STATE PENSION INVESTMENT] Board. 07 * Sec. 125. AS 39.45.060 is amended by adding a new paragraph to read: 08 (2) "board" means the trustees of the Alaska Retirement Management 09 Board established under AS 37.10.210. 10 * Sec. 126. AS 39.50.200(a)(9) is amended to read: 11 (9) "public official" means 12 (A) a judicial officer; 13 (B) the governor or the lieutenant governor; 14 (C) a person hired or appointed in a department in the 15 executive branch as 16 (i) the head or deputy head of the department; 17 (ii) the director or deputy director of a division; 18 (iii) a special assistant to the head of the department; 19 (iv) a person serving as the legislative liaison for the 20 department; 21 (D) an assistant to the governor or the lieutenant governor; 22 (E) the chair or a member of a state commission or board 23 [OTHER THAN PHYSICIAN MEMBERS OR ALTERNATES OF THE 24 ALASKA TEACHERS' RETIREMENT BOARD APPOINTED UNDER 25 AS 14.25.035(a)(2) OR OF THE PUBLIC EMPLOYEES' RETIREMENT 26 BOARD APPOINTED UNDER AS 39.35.030(d);] 27 (F) state investment officers and the state comptroller in the 28 Department of Revenue; 29 (G) [REPEALED 30 (H)] the chief procurement officer appointed under 31 AS 36.30.010;
01 (H) [(I)] the executive director of the Alaska Workforce 02 Investment Board; and 03 (I) [(J)] each appointed or elected municipal officer; 04 * Sec. 127. AS 39.50.200(b)(54) is amended to read: 05 (54) Alaska Retirement Management [STATE PENSION 06 INVESTMENT] Board (AS 37.10.210); 07 * Sec. 128. AS 44.25.020(2) is amended to read: 08 (2) collect, account for, have custody of, invest, and manage all state 09 funds and all revenues of the state except revenues incidental to a program of licensing 10 and regulation carried on by another state department, funds managed and invested by 11 the Alaska Retirement Management [STATE PENSION INVESTMENT] Board, 12 and as otherwise provided by law; 13 * Sec. 129. AS 44.25.028(a) is amended to read: 14 (a) The commissioner of revenue may designate employees of the Department 15 of Revenue who are subject to the provisions of AS 39.50 because of their 16 responsibility for participating in the management or investment of the funds for 17 which the Alaska Retirement Management [STATE PENSION INVESTMENT] 18 Board is responsible. 19 * Sec. 130. AS 44.25.028(b) is amended to read: 20 (b) If an officer or employee of the Department of Revenue with responsibility 21 for funds for which the Alaska Retirement Management [STATE PENSION 22 INVESTMENT] Board is responsible acquires, owns, or controls an interest, direct or 23 indirect, in an entity or project in which assets under the control of the board are 24 invested, the officer or employee shall immediately disclose the interest to the board. 25 The disclosure is a matter of public record and shall be included in the minutes of the 26 board meeting next following the disclosure. The commissioner shall adopt 27 regulations to restrict officers and employees of the department from having a 28 substantial interest in an entity or project in which assets under the control of the board 29 are invested. 30 * Sec. 131. AS 44.64.030(a) is amended by adding new paragraphs to read: 31 (36) AS 14.25.006 (teachers' retirement system);
01 (37) AS 39.35.006 (public employees' retirement system). 02 * Sec. 132. AS 14.25.012(a), 14.25.015, 14.25.020, 14.25.022, 14.25.030, 14.25.035, 03 14.25.037, 14.25.170, 14.25.175(e), 14.25.180, 14.25.190, 14.25.220(41); AS 39.30.175(f); 04 AS 39.35.010, 39.35.020, 39.35.030, 39.35.040, 39.35.042, 39.35.047, 39.35.060, 39.35.080, 05 39.35.090, 39.35.520(c), 39.35.522(c), 39.35.522(e); AS 39.45.025; AS 39.50.200(b)(23), and 06 39.50.200(b)(29) are repealed. 07 * Sec. 133. AS 14.25.061(c), 14.25.062; and AS 39.35.350 are repealed. 08 * Sec. 134. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 EMPLOYER CONTRIBUTIONS FOR OCCUPATIONAL DISABILITY AND 11 DEATH BENEFITS IN THE PUBLIC EMPLOYEES' DEFINED CONTRIBUTION 12 RETIREMENT PLAN FOR THE FIRST FISCAL YEAR THE PLAN IS IN EFFECT. 13 Notwithstanding AS 39.35.750(e), added by sec. 122 of this Act, for the first fiscal year in 14 which the public employees' defined contribution retirement plan is in effect, the employer 15 contribution to fully fund the cost of providing occupational disability and occupational death 16 benefits under AS 39.35.890 and 39.35.892 shall be equal to 17 (1) 0.4 percent of the compensation for peace officers and fire fighters; and 18 (2) 0.3 percent of the compensation for all other employees. 19 * Sec. 135. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITION: INITIAL STAGGERED TERMS OF TRUSTEES OF THE 22 ALASKA RETIREMENT MANAGEMENT BOARD. Notwithstanding AS 37.10.210(c), as 23 repealed and reenacted by sec. 58 of this Act, the terms of the initially appointed trustees of 24 the Alaska Retirement Management Board who are not commissioners shall be set by the 25 governor to achieve staggered terms in the manner provided for seven-member boards by 26 AS 39.05.055(5). Notwithstanding AS 39.05.055(5), the terms of each of the two members of 27 the two retirement systems appointed under AS 37.10.210(b)(2)(C) and 37.10.210(b)(2)(D), 28 as repealed and reenacted by sec. 58 of this Act, shall be set so that the term of one of each of 29 the members in each system expires two years apart from the term of the other member 30 representing that system. 31 * Sec. 136. The uncodified law of the State of Alaska is amended by adding a new section
01 to read: 02 TERMS OF MEMBERS OF THE ALASKA TEACHERS' RETIREMENT BOARD 03 AND THE PUBLIC EMPLOYEES' RETIREMENT BOARD. The terms of all board 04 members appointed to the Alaska Teachers' Retirement Board and the Public Employees' 05 Retirement Board expire on the effective date of this section. 06 * Sec. 137. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 TERMS OF MEMBERS OF THE ALASKA STATE PENSION INVESTMENT 09 BOARD. The terms of all board members appointed to the Alaska State Pension Investment 10 Board expire on September 30, 2005. 11 * Sec. 138. The uncodified law of the State of Alaska is amended by adding a new section 12 to read: 13 TRANSITION OF DUTIES BETWEEN THE ALASKA STATE PENSION 14 INVESTMENT BOARD AND THE ALASKA RETIREMENT MANAGEMENT BOARD. 15 (a) After the effective date of this section and until September 30, 2005, the Alaska State 16 Pension Investment Board shall continue to exercise the powers and duties assigned in this 17 Act to the Alaska Retirement Management Board. The Alaska State Pension Investment 18 Board shall take actions to facilitate the transition of duties formerly assigned to the Alaska 19 State Pension Investment Board to the duties assigned in this Act to the Alaska Retirement 20 Management Board. A member of the Alaska Retirement Management Board appointed to 21 serve as a trustee before September 30, 2005, shall be invited to observe and train with the 22 Alaska State Pension Investment Board. 23 (b) The Alaska Retirement Management Board may not assume the duties and 24 responsibilities assigned to the Alaska Retirement Management Board in this Act until 25 October 1, 2005. 26 * Sec. 139. The uncodified law of the State of Alaska is amended by adding a new section 27 to read: 28 TRANSITION. Hearings and other proceedings pending under a law amended or 29 repealed by this Act or in connection with functions transferred by this Act continue in effect 30 and may be continued and completed notwithstanding a transfer or amendment or repeal 31 provided for in this Act. Orders and regulations issued or adopted under authority of a law
01 amended or repealed by this Act remain in effect for the term issued, or until revoked, 02 vacated, or otherwise modified under the provisions of this Act. Contracts, rights, liabilities, 03 and obligations created by or under a law amended or repealed by this Act, and in effect on 04 the effective date of this section, remain in effect notwithstanding this Act's taking effect. 05 Records, equipment, appropriations, funds, and other property of boards or agencies of the 06 state whose functions are transferred under this Act shall be transferred to implement the 07 provisions of this Act. 08 * Sec. 140. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 TRANSITION: REGULATIONS. (a) The Department of Administration and the 11 Department of Revenue may proceed to develop and adopt regulations required to implement 12 this Act. 13 (b) Regulations adopted by the Department of Administration and the Department of 14 Revenue under this Act relate to the internal management of a state agency, and the adoption 15 of the regulations is not subject to AS 44.62 (Administrative Procedure Act). 16 * Sec. 141. The uncodified law of the State of Alaska is amended by adding a new section 17 to read: 18 REPORT TO THE LEGISLATURE BY ALASKA RETIREMENT MANAGEMENT 19 BOARD. It is the intent of the legislature that there will be a moratorium after the effective 20 date of this Act on legislation affecting all public employees' retirement plans until the Alaska 21 Retirement Management Board can present a report to the legislature containing the board's 22 assessment and recommendations as provided in this section. The Alaska Retirement 23 Management Board shall report to the legislature 120 days after all members are appointed to 24 the board, or 15 days after the first day of the first regular legislative session following the 25 effective date of this section, whichever is first. The report must include the board's 26 (1) preliminary assessment of the financial health of all public employees' 27 retirement plans and all teachers' retirement plans; 28 (2) assessment of the actuarial services purchased by the board; 29 (3) recommendations for additional legislative or administrative policy to 30 improve the financial health of the retirement plans; 31 (4) short-term and long-term recommendations for addressing the unfunded
01 liability of the retirement plans; and 02 (5) recommendations for legislative procedures regarding fiscal notes for new 03 legislation affecting the retirement plans. 04 * Sec. 142. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 REPORT TO THE LEGISLATURE ON HEALTH CARE COST-SAVING 07 MEASURES. The Department of Administration shall provide an annual report to the 08 legislature regarding the cost-saving measures it has implemented by regulation appropriate to 09 current and future retirees in the health care system. 10 * Sec. 143. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 INSTRUCTION REGARDING ALASKA TEACHERS' RETIREMENT SYSTEM 13 BOARD, ALASKA PUBLIC EMPLOYEES' RETIREMENT SYSTEM BOARD, AND 14 ALASKA STATE PENSION INVESTMENT BOARD. Wherever in the Alaska Statutes and 15 the Alaska Administrative Code the terms "Alaska Teachers' Retirement System Board," 16 "Alaska Public Employees' Retirement System Board," or "Alaska State Pension Investment 17 Board" are used, they shall be read as "Alaska Retirement Management Board" when to do so 18 would be consistent with the changes made by this Act. 19 * Sec. 144. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 SPECIFIC INSTRUCTIONS TO REVISOR OF STATUTES CONCERNING 22 SPECIFIC REFERENCES. (a) The revisor of statutes shall change references to "this 23 chapter" to "AS 14.25.009 - 14.25.220" in the following statutes: AS 14.25.040(b), 24 14.25.040(c), 14.25.045(a), 14.25.047, 14.25.061(a), 14.25.062, 14.25.063(a), 14.25.075(c), 25 14.25.105, 14.25.107, 14.25.110(k), 14.25.142, 14.25.150(b), 14.25.153, 14.25.160(h), 26 14.25.165(f), 14.25.166, 14.25.177, 14.25.195, 14.25.200(b), 14.25.205, and 14.25.210, and 27 in 14.25.220 in each place that the phrase appears. 28 (b) The revisor of statutes shall change the reference to "board" to "administrator" in 29 the following statutes: AS 14.25.075 and 14.25.130(f). 30 (c) The revisor of statutes shall change the reference to "system" to "plan" in the 31 following statutes: AS 14.25.040(b), 14.25.040(c), 14.25.045, 14.25.047, 14.25.050(a),
01 14.25.055, 14.25.060, 14.25.061(a), 14.25.062, 14.25.063(a), 14.25.065, 14.25.070, 02 14.25.075(c), 14.25.075(d), 14.25.075(g), 14.25.075(h), 14.25.075(i), 14.25.100(a), 03 14.25.105(c), 14.25.107, 14.25.110, 14.25.125(c), 14.25.143, 14.25.163, 14.25.165(i), 04 14.25.167(g), 14.25.168, 14.25.169, 14.25.173(a), 14.25.173(d), 14.25.181, 14.25.200, 05 14.25.210, 14.25.220(1), 14.25.220(4), 14.25.220(7), 14.25.220(14), 14.25.220(20), 06 14.25.220(22), 14.25.220(23), 14.25.220(31), 14.25.220(34), 14.25.220(36), 14.25.220(37), 07 14.25.220(42); AS 39.35.011; AS 39.35.120, 39.35.125, 39.35.160, 39.35.165(a), 08 39.35.165(c), 39.35.165(d), 39.35.165(e), 39.35.165(g), 39.35.165(h), 39.35.165(i), 09 39.35.170, 39.35.180, 39.35.195(b), 39.35.195(c), 39.35.250, 39.35.280, 39.35.300(c), 10 39.35.310(a), 39.35.310(c), 39.35.340(a), 39.35.342(a), 39.35.342(d), 39.35.345(a), 11 39.35.345(d), 39.35.360(a), 39.35.360(g), 39.35.360(h), 39.35.360(k), 39.35.370(f), 12 39.35.370(h), 39.35.370(i), 39.35.370(j), 39.35.370(k), 39.35.371(i), 39.35.381(b), 13 39.35.381(g), 39.35.385(c), 39.35.400(e), 39.35.450(g), 39.35.475(a), 39.35.475(b), 14 39.35.475(d), 39.35.500(a), 39.35.505, 39.35.520(a), 39.35.520(d), 39.35.522(d), 15 39.35.527(a), 39.35.527(b), 39.35.530, 39.35.535(a), 39.35.535(d), 39.35.550, 39.35.560, 16 39.35.570, 39.35.580, 39.35.590, 39.35.600, 39.35.610, 39.35.620(a), 39.35.620(h), 17 39.35.650, 39.35.670, 39.35.675(a), 39.35.680(1), 39.35.680(5), 39.35.680(9), 39.35.680(12), 18 39.35.680(15), 39.35.680(16), 39.35.680(17), 39.35.680(20), 39.35.680(21)(A), 19 39.35.680(29), 39.35.680(32), 39.35.680(33), and 39.35.680(35). 20 (d) The revisor of statutes shall change the reference to "board" to "commissioner" in 21 the following statutes: AS 39.35.290, 39.35.522(a), 39.35.522(b), and 39.35.522(d). 22 (e) The revisor of statutes shall change references to "this chapter" to "AS 39.35.095 - 23 39.35.680" in the following statutes: AS 39.35.165, 39.35.200, 39.35.250, 39.35.300, 24 39.35.340, 39.35.350, 39.35.360, 39.35.370, 39.35.371, 39.35.375, 39.35.381, 39.35.480, 25 39.35.490, 39.35.495, 39.35.505, 39.35.530, 39.35.546, 39.35.547, 39.35.615(c), 26 39.35.620(e), 39.35.660, 39.35.675(b), 39.35.677, and 39.35.680. 27 (f) The revisor of statutes shall renumber AS 39.35.690 to follow AS 39.35.990. 28 * Sec. 145. The uncodified law of the State of Alaska is amended by adding a new section 29 to read: 30 IMPLEMENTATION OF SECTIONS 143 AND 144 OF THIS ACT. Under 31 AS 01.05.031, the revisor of statutes shall implement secs. 143 and 144 of this Act in the
01 Alaska Statutes, and, under AS 44.62.125(b)(6), the regulations attorney shall implement secs. 02 143 and 144 of this Act in the administrative code. 03 * Sec. 146. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 CONDITIONAL RETROACTIVITY. If secs. 1, 3 - 7, 9 - 11, 14, 17 - 20, 23 - 34, 36 06 - 39, 41 - 45, 47 - 60, 62 - 68, 70 - 79, 81, 83 - 88, 95 - 106, 108 - 112, 114, 115, 117 - 121, 07 123 - 132, and 135 - 144 of this Act take effect after July 1, 2005, secs. 1, 3 - 7, 9 - 11, 14, 17 08 - 20, 23 - 34, 36 - 39, 41 - 45, 47 - 60, 62 - 68, 70 - 79, 81, 83 - 88, 95 - 106, 108 - 112, 114, 09 115, 117 - 121, 123 - 132, and 135 - 144 of this Act are retroactive to July 1, 2005. 10 * Sec. 147. Sections 22 and 116 of this Act take effect January 1, 2006. 11 * Sec. 148. Sections 2, 8, 35, 40, 46, 61, 69, 80, 82, 122, and 134 of this Act take effect 12 July 1, 2006. 13 * Sec. 149. Sections 12, 13, 15, 16, 21, 89 - 94, 107, 113, and 133 of this Act take effect 14 June 30, 2010. 15 * Sec. 150. Section 145 of this Act takes effect immediately under AS 01.10.070(c). 16 * Sec. 151. Except as provided in secs. 147 - 150 of this Act, this Act takes effect July 1, 17 2005.