HB 153: "An Act relating to pension forfeiture if certain public officials are convicted of certain federal or state felony offenses in connection with official duties; and providing for an effective date."
00 HOUSE BILL NO. 153 01 "An Act relating to pension forfeiture if certain public officials are convicted of certain 02 federal or state felony offenses in connection with official duties; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25 is amended by adding a new section to read: 06 Sec. 14.25.212. Pension forfeiture. The provisions of AS 37.10.350 apply to 07 pension benefits under AS 14.25.009 - 14.25.220. 08 * Sec. 2. AS 14.25 is amended by adding a new section to read: 09 Sec. 14.25.532. Pension forfeiture. The provisions of AS 37.10.350 apply to 10 pension benefits under AS 14.25.310 - 14.25.590. 11 * Sec. 3. AS 22.25 is amended by adding a new section to read: 12 Sec. 22.25.800. Pension forfeiture. The provisions of AS 37.10.350 apply to 13 pension benefits under this chapter. 14 * Sec. 4. AS 37.10.220(a) is amended to read:
01 (a) The board shall 02 (1) hold regular and special meetings at the call of the chair or of at 03 least five members; meetings are open to the public, and the board shall keep a full 04 record of all its proceedings; 05 (2) after reviewing recommendations from the Department of 06 Revenue, adopt investment policies for each of the funds entrusted to the board; 07 (3) determine the appropriate investment objectives for the defined 08 benefit plans established under the teachers' retirement system under AS 14.25 and the 09 public employees' retirement system under AS 39.35; 10 (4) assist in prescribing the policies for the proper operation of the 11 systems and take other actions necessary to carry out the intent and purpose of the 12 systems in accordance with AS 37.10.210 - 37.10.390; 13 (5) provide a range of investment options and establish the rules by 14 which participants can direct their investments among those options with respect to 15 accounts established under 16 (A) AS 14.25.340 - 14.25.350 (teachers' retirement system 17 defined contribution individual accounts); 18 (B) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 19 Annuity Plan); 20 (C) AS 39.35.730 - 39.35.750 (public employees' retirement 21 system defined contribution individual accounts); and 22 (D) AS 39.45.010 - 39.45.060 (public employees' deferred 23 compensation program); 24 (6) establish the rate of interest that shall be annually credited to each 25 member's individual contribution account in accordance with AS 14.25.145 and 26 AS 39.35.100 and the rate of interest that shall be annually credited to each member's 27 account in the health reimbursement arrangement plan under AS 39.30.300 - 28 39.30.495; the rate of interest shall be adopted on the basis of the probable effective 29 rate of interest on a long-term basis, and the rate may be changed 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; and 05 (16) administer pension forfeitures required under AS 37.10.350 06 using the procedures of AS 44.62 (Administrative Procedure Act). 07 * Sec. 5. AS 37.10 is amended by adding a new section to read: 08 Sec. 37.10.350. Pension forfeiture to preserve public trust. (a) A public 09 official, a legislator, or a legislative director, who has been convicted of a federal or 10 state felony offense of bribery, receiving a bribe, perjury, subornation of perjury, 11 scheme to defraud, or fraud may not receive a state pension benefit if the offense was 12 committed on or after the effective date of this section and was in connection with the 13 person's official duties. 14 (b) A state pension benefit under (a) of this section does not include 15 (1) insurance, voluntary wage reductions, involuntary wage reductions, 16 or supplemental or health benefits under AS 39.30.090 - 39.30.495 or former 17 AS 39.37.145; 18 (2) member or employee contributions under AS 14.25.050, 14.25.055, 19 14.25.340, 14.25.360(a), AS 22.25.011, AS 39.35.160, 39.35.165(f), 39.35.180, 20 39.35.730, 39.35.760(a), or former AS 39.37.070. 21 (c) In a pension forfeiture matter under this section, the board may award to 22 the spouse, domestic partner, child, or former spouse of the person governed by the 23 limitations in (a) of this section some or all of the amount that, but for the forfeiture 24 under (a) of this section, may otherwise be payable. In determining whether or not to 25 make an award under this subsection, the board shall consider the totality of 26 circumstances, including 27 (1) the role, if any, of the person's spouse, domestic partner, child, or 28 former spouse in connection with the illegal conduct for which the person was 29 criminally charged; 30 (2) the degree, if any, to which the person's spouse, domestic partner, 31 child, or former spouse profited financially from the person's illegal conduct;
01 (3) any restitution ordered by the court in the criminal case and the 02 amount, if any, still owing. 03 (d) In this section, 04 (1) "child" has the meaning given in AS 39.50.200(a); 05 (2) "domestic partner" has the meaning given in AS 39.50.200(a); 06 (3) "public official" has the meaning given in AS 39.50.200(a), except 07 that it does not include a judicial officer or an appointed or elected municipal officer. 08 * Sec. 6. AS 39.35 is amended by adding a new section to read: 09 Sec. 39.35.672. Pension forfeiture. The provisions of AS 37.10.350 apply to 10 pension benefits under AS 39.35.095 - 39.35.680. 11 * Sec. 7. AS 39.35 is amended by adding a new section to read: 12 Sec. 39.35.932. Pension forfeiture. The provisions of AS 37.10.350 apply to 13 pension benefits under AS 39.35.700 - 39.35.990. 14 * Sec. 8. AS 44.62.330(a) is amended by adding a new paragraph to read: 15 (47) the Alaska Retirement Management Board for administration of 16 pension forfeitures under AS 37.10.350. 17 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY TO ELECTED PUBLIC OFFICERS' RETIREMENT SYSTEM. 20 The provisions of AS 37.10.350, added by sec. 5 of this Act, apply to benefits under former 21 AS 39.37 (elected public officers' retirement system). 22 * Sec. 10. This Act takes effect January 1, 2009.