CSSB 183(JUD): "An Act repealing the defined contribution retirement plans for teachers and for public employees; providing a defined benefit retirement plan for teachers and public employees; making conforming amendments; and providing for an effective date."
00 CS FOR SENATE BILL NO. 183(JUD) 01 "An Act repealing the defined contribution retirement plans for teachers and for public 02 employees; providing a defined benefit retirement plan for teachers and public 03 employees; making conforming amendments; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25.008 is repealed and reenacted to read: 06 Sec. 14.25.008. Definitions. In AS 14.25.001 - 14.25.008, 07 (1) "plan" means a retirement plan established under AS 14.25.009 - 08 14.25.220; 09 (2) "system" means the Teachers' Retirement System of Alaska. 10 * Sec. 2. AS 14.25.009 is repealed and reenacted to read: 11 Sec. 14.25.009. Defined benefit retirement plan under AS 14.25.009 - 12 14.25.220. AS 14.25.009 - 14.25.220 set out a defined benefit retirement plan as the 13 teachers' retirement plan. 14 * Sec. 3. AS 14.25.040(a) is amended to read:
01 (a) Unless a teacher or member participates in a university retirement program 02 under AS 14.40.661 - 14.40.799, has filed an election under AS 14.25.043(b), or has 03 elected under former AS 14.25.540 to participate in the plan established in former 04 provisions of AS 14.25.310 - 14.25.590, a teacher or member contracting for service 05 with a participating employer is subject to AS 14.25.009 - 14.25.220. 06 * Sec. 4. AS 14.25.143(a), as that subsection read following amendment by sec. 3, ch. 146, 07 SLA 1980, until amended by sec. 12, ch. 106, SLA 1988, as amended by sec. 18, ch. 9, 08 FSSLA 2005, is amended to read: 09 (a) When the board [ADMINISTRATOR] determines that the cost of living 10 has increased and that the financial condition of the retirement fund permits, the 11 administrator shall increase benefit payments to persons receiving benefits under this 12 plan. [FOR PURPOSES OF THIS SUBSECTION, THE FINANCIAL CONDITION 13 OF THE FUND WOULD ONLY PERMIT AN INCREASE IN BENEFITS WHEN 14 THE RATIO OF TOTAL FUND ASSETS TO THE ACCRUED LIABILITY MEETS 15 OR EXCEEDS 105 PERCENT. IN THIS SUBSECTION, "ACCRUED LIABILITY" 16 MEANS THE PRESENT VALUE OF ALL MEMBER BENEFITS ACCRUED BY 17 MEMBER SERVICE IN THIS PLAN.] 18 * Sec. 5. AS 14.25.143(a), as that subsection read following amendment by sec. 12, ch. 106, 19 SLA 1988, until amended by sec. 12, ch. 97, SLA 1990, as amended by sec. 19, ch. 9, FSSLA 20 2005, is amended to read: 21 (a) When the board [ADMINISTRATOR] determines that the cost of living 22 has increased and that the financial condition of the retirement fund permits, the 23 administrator shall increase benefit payments to persons receiving benefits under this 24 plan. [FOR PURPOSES OF THIS SUBSECTION, THE FINANCIAL CONDITION 25 OF THE FUND WOULD ONLY PERMIT AN INCREASE IN BENEFITS WHEN 26 THE RATIO OF TOTAL FUND ASSETS TO THE ACCRUED LIABILITY MEETS 27 OR EXCEEDS 105 PERCENT. IN THIS SUBSECTION, "ACCRUED LIABILITY" 28 MEANS THE PRESENT VALUE OF ALL MEMBER BENEFITS ACCRUED BY 29 MEMBER SERVICE IN THIS PLAN.] 30 * Sec. 6. AS 14.25.220(1) is amended to read: 31 (1) "active member" means a member who is employed by an
01 employer, is receiving compensation on a full-time or part-time basis and is making 02 contributions to the plan, or a member making contributions under former 03 AS 14.20.330 or 14.20.345; 04 * Sec. 7. AS 14.25.532 is amended to read: 05 Sec. 14.25.532. Pension forfeiture. The provisions of AS 37.10.310 apply to 06 pension benefits under former provisions of AS 14.25.310 - 14.25.590. 07 * Sec. 8. AS 14.40.671(e) is amended to read: 08 (e) An employee whose rights to transfer assets out of a state retirement 09 system are subject to a qualified domestic relations order is entitled to transfer assets 10 from the state retirement system to a university retirement program only if the 11 requirements for receiving a refund under AS 14.25.150(b), former AS 14.25.360 12 [14.25.360], AS 39.35.200(c), or former AS 39.35.760 [39.35.760], as appropriate, 13 are met. 14 * Sec. 9. AS 14.40.799(3) is amended to read: 15 (3) "contribution account" means the member contribution account 16 under AS 14.25.009 - 14.25.220, the individual account under former provisions of 17 AS 14.25.310 - 14.25.590, the employee contribution account under AS 39.35.095 - 18 39.35.680, or the individual account under former provisions of AS 39.35.700 - 19 39.35.990, whichever is appropriate; 20 * Sec. 10. AS 37.10.220(a) is amended to read: 21 (a) The board shall 22 (1) hold regular and special meetings at the call of the chair or of at 23 least five members; meetings are open to the public, and the board shall keep a full 24 record of all its proceedings; 25 (2) after reviewing recommendations from the Department of 26 Revenue, adopt investment policies for each of the funds entrusted to the board; 27 (3) determine the appropriate investment objectives for the defined 28 benefit plans established under the teachers' retirement system under AS 14.25 and the 29 public employees' retirement system under AS 39.35; 30 (4) assist in prescribing the policies for the proper operation of the 31 systems and take other actions necessary to carry out the intent and purpose of the
01 systems in accordance with AS 37.10.210 - 37.10.390; 02 (5) provide a range of investment options and establish the rules by 03 which participants can direct their investments among those options with respect to 04 accounts established under 05 (A) former AS 14.25.340 - 14.25.350 (teachers' retirement 06 system defined contribution individual accounts); 07 (B) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 08 Annuity Plan); 09 (C) former AS 39.35.730 - 39.35.750 (public employees' 10 retirement system defined contribution individual accounts); and 11 (D) AS 39.45.010 - 39.45.060 (public employees' deferred 12 compensation program); 13 (6) establish the rate of interest that shall be annually credited to each 14 member's individual contribution account in accordance with AS 14.25.145 and 15 AS 39.35.100 and the rate of interest that shall be annually credited to each member's 16 account in the health reimbursement arrangement plan under AS 39.30.300 - 17 39.30.495; the rate of interest shall be adopted on the basis of the probable effective 18 rate of interest on a long-term basis, and the rate may be changed from time to time; 19 (7) adopt a contribution surcharge as necessary under AS 39.35.160(c); 20 (8) coordinate with the retirement system administrator to have an 21 annual actuarial valuation of each retirement system prepared to determine system 22 assets, accrued liabilities, and funding ratios and to certify to the appropriate 23 budgetary authority of each employer in the system 24 (A) an appropriate contribution rate for normal costs; and 25 (B) an appropriate contribution rate for liquidating any past 26 service liability; 27 (9) review actuarial assumptions prepared and certified by a member 28 of the American Academy of Actuaries and conduct experience analyses of the 29 retirement systems not less than once every four years, except for health cost 30 assumptions, which shall be reviewed annually; the results of all actuarial assumptions 31 prepared under this paragraph shall be reviewed and certified by a second member of
01 the American Academy of Actuaries before presentation to the board; 02 (10) contract for an independent audit of the state's actuary not less 03 than once every four years; 04 (11) contract for an independent audit of the state's performance 05 consultant not less than once every four years; 06 (12) obtain an external performance review to evaluate the investment 07 policies of each fund entrusted to the board and report the results of the review to the 08 appropriate fund fiduciary; 09 (13) by the first day of each regular legislative session, report to the 10 governor, the legislature, and the individual employers participating in the state's 11 retirement systems on the financial condition of the systems in regard to 12 (A) the valuation of trust fund assets and liabilities; 13 (B) current investment policies adopted by the board; 14 (C) a summary of assets held in trust listed by the categories of 15 investment; 16 (D) the income and expenditures for the previous fiscal year; 17 (E) the return projections for the next calendar year; 18 (F) one-year, three-year, five-year, and 10-year investment 19 performance for each of the funds entrusted to the board; and 20 (G) other statistical data necessary for a proper understanding 21 of the financial status of the systems; 22 (14) submit quarterly updates of the investment performance reports to 23 the Legislative Budget and Audit Committee; [AND] 24 (15) develop an annual operating budget; and 25 (16) administer pension forfeitures required under AS 37.10.310 using 26 the procedures of AS 44.62 (Administrative Procedure Act). 27 * Sec. 11. AS 37.10.310(c) is amended to read: 28 (c) A state pension benefit under (a) of this section does not include 29 (1) insurance, voluntary wage reductions, involuntary wage reductions, 30 or supplemental or health benefits under AS 39.30.090 - 39.30.495 or former 31 AS 39.37.145;
01 (2) member or employee contributions under AS 14.25.050, 14.25.055, 02 14.25.075, former AS 14.25.340 [14.25.340], former AS 14.25.360(a) 03 [14.25.360(a)], AS 22.25.011, AS 39.35.160, 39.35.165(f), 39.35.180, former 04 AS 34.35.730 [39.35.730], former AS 34.35.760(a) [39.35.760(a)], or former 05 AS 39.37.070. 06 * Sec. 12. AS 37.10.390(4) is amended to read: 07 (4) "retirement systems" or "systems" means the teachers' retirement 08 system, the judicial retirement system, the Alaska National Guard and Alaska Naval 09 Militia retirement system, the public employees' retirement system, the former State 10 of Alaska Teachers' and Public Employees' Retiree Health Reimbursement 11 Arrangement Plan, and the elected public officers' retirement system under former 12 AS 39.37. 13 * Sec. 13. AS 39.30.090(a) is amended to read: 14 (a) The Department of Administration may obtain a policy or policies of group 15 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 16 former AS 14.25.480 [14.25.480], AS 22.25.090, AS 39.35.535, former 17 AS 39.35.880 [39.35.880], or former AS 39.37.145, employees of other participating 18 governmental units, or persons entitled to coverage under AS 23.15.136, subject to the 19 following conditions: 20 (1) A group insurance policy shall provide one or more of the 21 following benefits: life insurance, accidental death and dismemberment insurance, 22 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 23 dental expense insurance, audiovisual insurance, or other medical care insurance. 24 (2) Each eligible employee of the state, the spouse and the unmarried 25 children chiefly dependent on the eligible employee for support, and each eligible 26 employee of another participating governmental unit shall be covered by the group 27 policy, unless exempt under regulations adopted by the commissioner of 28 administration. 29 (3) A governmental unit may participate under a group policy if 30 (A) its governing body adopts a resolution authorizing 31 participation, and payment of required premiums;
01 (B) a certified copy of the resolution is filed with the 02 Department of Administration; and 03 (C) the commissioner of administration approves the 04 participation in writing. 05 (4) In procuring a policy of group health or group life insurance as 06 provided under this section or excess loss insurance as provided in AS 39.30.091, the 07 Department of Administration shall comply with the dual choice requirements of 08 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 09 transact business in the state under AS 21.09, a hospital or medical service corporation 10 authorized to transact business in this state under AS 21.87, or a health maintenance 11 organization authorized to operate in this state under AS 21.86. An excess loss 12 insurance policy may be obtained from a life or health insurer authorized to transact 13 business in this state under AS 21.09 or from a hospital or medical service corporation 14 authorized to transact business in this state under AS 21.87. 15 (5) The Department of Administration shall make available bid 16 specifications for desired insurance benefits or for administration of benefit claims and 17 payments to (A) all insurance carriers authorized to transact business in this state 18 under AS 21.09 and all hospital or medical service corporations authorized to transact 19 business under AS 21.87 who are qualified to provide the desired benefits; and (B) to 20 insurance carriers authorized to transact business in this state under AS 21.09, hospital 21 or medical service corporations authorized to transact business under AS 21.87, and 22 third-party administrators licensed to transact business in this state and qualified to 23 provide administrative services. The specifications shall be made available at least 24 once every five years. The lowest responsible bid submitted by an insurance carrier, 25 hospital or medical service corporation, or third-party administrator with adequate 26 servicing facilities shall govern selection of a carrier, hospital or medical service 27 corporation, or third-party administrator under this section or the selection of an 28 insurance carrier or a hospital or medical service corporation to provide excess loss 29 insurance as provided in AS 39.30.091. 30 (6) If the aggregate of dividends payable under the group insurance 31 policy exceeds the governmental unit's share of the premium, the excess shall be
01 applied by the governmental unit for the sole benefit of the employees. 02 (7) A person receiving benefits under AS 14.25.110, AS 22.25, 03 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 04 effect under this section at the time of termination of employment with the state or 05 participating governmental unit. 06 (8) A person electing to have insurance under (7) of this subsection 07 shall pay the cost of this insurance. 08 (9) For each permanent part-time employee electing coverage under 09 this section, the state shall contribute one-half the state contribution rate for permanent 10 full-time state employees, and the permanent part-time employee shall contribute the 11 other one-half. 12 (10) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 13 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 14 and eligible dependents under this section. The level of coverage for persons over 65 15 shall be the same as that available before reaching age 65 except that the benefits 16 payable shall be supplemental to any benefits provided under the federal old age, 17 survivors, and disability insurance program. A person electing to have insurance under 18 this paragraph shall pay the cost of the insurance. The commissioner of administration 19 shall adopt regulations implementing this paragraph. 20 (11) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 21 or former AS 39.37 may obtain long-term care insurance for that person and eligible 22 dependents under this section. A person who elects insurance under this paragraph 23 shall pay the cost of the insurance premium. The commissioner of administration shall 24 adopt regulations to implement this paragraph. 25 (12) Each licensee holding a current operating agreement for a vending 26 facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 27 applies to governmental units other than the state. 28 * Sec. 14. AS 39.30.097(b) is amended to read: 29 (b) The commissioner of administration is authorized to prefund medical 30 benefits provided by former AS 14.25.480, AS 39.30.300, and former AS 39.35.880 31 by establishing an irrevocable trust that is exempt from federal income tax under 26
01 U.S.C. 115 and subject to the applicable financial reporting, disclosure, and actuarial 02 requirements of the Governmental Accounting Standards Board. 03 * Sec. 15. AS 39.30.300 is amended to read: 04 Sec. 39.30.300. State of Alaska Teachers' and Public Employees' Retiree 05 Health Reimbursement Arrangement Plan established. The State of Alaska 06 Teachers' and Public Employees' Retiree Health Reimbursement Arrangement Plan is 07 established for teachers who first become members of the defined contribution plan of 08 the teachers' retirement system under former provisions of AS 14.25.310 - 14.25.590 09 on or after July 1, 2006, and employees of the state, political subdivisions of the state, 10 and public organizations of the state who first become members of the defined 11 contribution plan of the public employees' retirement system under former provisions 12 of AS 39.35.700 - 39.35.990 on or after July 1, 2006. 13 * Sec. 16. AS 39.30.380 is amended to read: 14 Sec. 39.30.380. Termination of employment. A person who terminates 15 employment before meeting the eligibility requirements of former AS 14.25.470 or 16 former AS 39.35.870 loses any right to the contributions made on behalf of the person 17 to the teachers' and public employees' retiree health reimbursement arrangement trust 18 fund. If a person returns to employment with a participating employer by 19 December 31 of the year in which the person reaches 65 years of age, the person's 20 account balance shall be restored in the amount recorded on the date of termination 21 from the trust, adjusted for inflation at the rate of the Consumer Price Index for 22 Anchorage, Alaska. The earlier period of employment with a participating employer 23 shall be credited toward eligibility for medical benefits. 24 * Sec. 17. AS 39.30.390 is amended to read: 25 Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the 26 eligibility requirements of former AS 14.25.470 and former AS 39.35.870 are 27 eligible for reimbursements from the individual account established for a member 28 under the plan, except members do not have to retire directly from the system. A 29 person who is the dependent child of an eligible member is eligible for 30 reimbursements if the eligible member and surviving spouse have both died so long as 31 the person meets the definition of dependent child.
01 * Sec. 18. AS 39.30.400 is amended to read: 02 Sec. 39.30.400. Benefits payable from the individual account. (a) The 03 administrator may deduct the cost of monthly premiums from the individual account 04 for retiree major medical insurance on behalf of an eligible person who elected retiree 05 major medical insurance under former AS 14.25.480 or former AS 39.35.880. 06 (b) Upon application of an eligible person, the administrator shall reimburse to 07 the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d). 08 Reimbursement is limited to the medical expenses of 09 (1) an eligible member, the spouse of an eligible member, and the 10 dependent children of an eligible member; or 11 (2) a surviving spouse and the dependent children of an eligible 12 member dependent on the surviving spouse. 13 (c) When the member's individual account balance is exhausted, the insurance 14 premium deductions under (a) of this section and the reimbursement of medical care 15 expenses under (b) of this section end. 16 (d) If all eligible persons die before exhausting the member's individual 17 account, the account balance shall revert to the plan. 18 * Sec. 19. AS 39.30.495(3) is amended to read: 19 (3) "compensation" has the meaning given in former AS 14.25.590; 20 * Sec. 20. AS 39.30.495(5) is amended to read: 21 (5) "eligible person" means a person who meets the eligibility 22 requirements of former AS 14.25.470 or former AS 39.35.870; 23 * Sec. 21. AS 39.30.495(6) is amended to read: 24 (6) "employer" has the meaning given in former AS 14.25.590 for 25 employers of teachers in the defined contribution plan established in former 26 provisions of AS 14.25.310 - 14.25.590 and has the meaning given in former 27 AS 39.35.990 for employers of public employees in the defined contribution plan 28 established in former provisions of AS 39.35.700 - 39.35.990; 29 * Sec. 22. AS 39.30.495(9) is amended to read: 30 (9) "member" means a member of the defined contribution plan of the 31 teachers' retirement system in former provisions of AS 14.25.310 - 14.25.590 or a
01 member of the public employees' retirement system in former provisions of 02 AS 39.35.700 - 39.35.990; 03 * Sec. 23. AS 39.35.008(2) is repealed and reenacted to read: 04 (2) "plan" means a retirement plan established under AS 39.35.095 - 05 39.35.680; 06 * Sec. 24. AS 39.35.008(3) is repealed and reenacted to read: 07 (3) "system" means the Public Employees' Retirement System of 08 Alaska. 09 * Sec. 25. AS 39.35.095 is repealed and reenacted to read: 10 Sec. 39.35.095. Defined benefit retirement plan under AS 39.35.095 - 11 39.35.680. AS 39.35.095 - 39.35.680 set out a defined benefit retirement plan as the 12 public employees' retirement plan. 13 * Sec. 26. AS 39.35.615(g) is amended to read: 14 (g) An employer terminating participation in the plan shall pay termination 15 costs determined by the administrator, or enter into a payment plan acceptable to the 16 administrator, within 60 days after the employer receives notice of its termination 17 costs from the administrator. Termination costs not paid within the prescribed time 18 limit or in accordance with the approved payment plan shall be collected by the 19 administrator in accordance with AS 39.35.610(b). [TERMINATION OF 20 PARTICIPATION BY AN EMPLOYER IN THE PLAN DOES NOT BAR FUTURE 21 PARTICIPATION BY THE EMPLOYER UNDER AS 39.35.700 - 39.35.990 IF THE 22 EMPLOYER HAS PAID IN FULL ITS PRIOR TERMINATION COSTS.] 23 * Sec. 27. AS 39.35.620(i) is amended to read: 24 (i) An employer terminating participation in the plan shall pay termination 25 costs determined by the administrator, or enter into a payment plan acceptable to the 26 administrator, within 60 days after the employer receives notice of the cost. 27 Termination costs not paid within the prescribed time limit or in accordance with the 28 approved payment plan shall be collected by the administrator in accordance with 29 AS 39.35.610(b). [TERMINATION OF PARTICIPATION BY AN EMPLOYER IN 30 THE PLAN DOES NOT BAR FUTURE PARTICIPATION BY THE EMPLOYER 31 UNDER AS 39.35.700 - 39.35.990 IF THE EMPLOYER HAS PAID IN FULL ITS
01 PRIOR TERMINATION COSTS.] 02 * Sec. 28. AS 39.35.475(a), as that subsection read following amendment by sec. 34, ch. 03 146, SLA 1980, until amended by sec. 41, ch. 82, SLA 1986, as amended by sec. 112, ch. 9, 04 FSSLA 2005, is amended to read: 05 (a) When the board [ADMINISTRATOR] determines that the cost of living 06 has increased and that the financial condition of the retirement fund permits, the 07 administrator shall increase benefit payments to persons receiving benefits under this 08 plan. [FOR PURPOSES OF THIS SUBSECTION, THE FINANCIAL CONDITION 09 OF THE FUND WOULD ONLY PERMIT AN INCREASE IN BENEFITS WHEN 10 THE RATIO OF TOTAL FUND ASSETS TO THE ACCRUED LIABILITY MEETS 11 OR EXCEEDS 105 PERCENT. IN THIS SUBSECTION, "ACCRUED LIABILITY" 12 MEANS THE PRESENT VALUE OF ALL MEMBER BENEFITS ACCRUED BY 13 MEMBER SERVICE IN THIS PLAN.] 14 * Sec. 29. AS 39.35.932 is amended to read: 15 Sec. 39.35.932. Pension forfeiture. The provisions of AS 37.10.310 apply to 16 pension benefits under former provisions of AS 39.35.700 - 39.35.990. 17 * Sec. 30. AS 14.25.012(c), 14.25.310, 14.25.320, 14.25.330, 14.25.340, 14.25.345, 18 14.25.350, 14.25.360, 14.25.370, 14.25.380, 14.25.390, 14.25.400, 14.25.410, 14.25.420, 19 14.25.430, 14.25.440, 14.25.450, 14.25.460, 14.25.470, 14.25.480, 14.25.485, 14.25.486, 20 14.25.487, 14.25.488, 14.25.489, 14.25.490, 14.25.500, 14.25.510, 14.25.520, 14.25.530, 21 14.25.540, 14.25.550, 14.25.560, 14.25.580, 14.25.582, 14.25.590; AS 39.35.700, 39.35.710, 22 39.35.720, 39.35.725, 39.35.730, 39.35.740, 39.35.750, 39.35.760, 39.35.770, 39.35.780, 23 39.35.790, 39.35.800, 39.35.810, 39.35.820, 39.35.830, 39.35.840, 39.35.850, 39.35.860, 24 39.35.870, 39.35.880, 39.35.890, 39.35.891, 39.35.892, 39.35.893, 39.35.894, 39.35.895, 25 39.35.900, 39.35.910, 39.35.920, 39.35.930, 39.35.940, 39.35.950, 39.35.955, 39.35.957, 26 39.35.958, 39.35.960, 39.35.965, 39.35.970, 39.35.972, and 39.35.990 are repealed. 27 * Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 RETIREMENT PLAN ELECTION OPTION. (a) A teacher who was hired on or after 30 July 1, 2006, and before the effective date of this section and who is a member of the defined 31 contribution plan of the teachers' retirement system under former provisions of AS 14.25.310
01 - 14.25.590 may make a one-time election before September 1, 2008, or within 90 days after 02 the effective date of this section, whichever is later, to participate in the defined benefit 03 retirement plan under AS 14.25.009 - 14.25.220 and to transfer any contributions, including 04 employer contributions, made to the defined contribution plan before that date. 05 (b) A public employee who was hired on or after July 1, 2006, and before the 06 effective date of this section and who is a member of the defined contribution plan of the 07 public employees' retirement system under former provisions of AS 39.35.700 - 39.35.990 08 may make a one time election before September 1, 2008, or within 90 days after the effective 09 date of this section, whichever is later, to participate in the defined benefit retirement plan 10 under AS 39.35.095 - 39.35.680 and to transfer any contributions, including employer 11 contributions, made to the defined contribution plan before that date. 12 (c) In this section, "employer" has the meaning given in AS 14.25.590 or 13 AS 39.35.990, as applicable, as those sections read the day before the effective date of sec. 30 14 of this Act. 15 * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 RETIREMENT PLAN ELECTION PROCEDURE; REGULATIONS REQUIRED. 18 (a) The election to participate in the defined benefit retirement plan under sec. 31 of this Act 19 must be made in writing on forms and in the manner prescribed by the administrator. Before 20 accepting an election to participate in the defined benefit retirement plan, the administrator 21 shall provide the employee planning on making an election to participate in the defined 22 benefit retirement plan with information, including calculations to illustrate the effect of 23 moving the employee's retirement plan from the defined contribution retirement plan to the 24 defined benefit retirement plan as well as other information to clearly inform the employee of 25 the potential consequences of the employee's election. 26 (b) An election made under sec. 31 of this Act to participate in the defined benefit 27 retirement plan is irrevocable. On making the election, the participant shall be enrolled as a 28 member of the defined benefit retirement plan, the member's participation in the plan shall be 29 governed by the provisions for the defined benefit retirement plan, and the member's 30 participation in the defined contribution retirement plan shall terminate. The participant's 31 enrollment in the defined benefit retirement plan shall be effective the first day of the month
01 after the administrator receives the completed enrollment forms. An election made by an 02 eligible member who is married is not effective unless the election is signed by the 03 individual's spouse. 04 (c) As directed by the participant, the Alaska Retirement Management Board shall 05 transfer or cause to be transferred the appropriate amounts to the designated account. The 06 administrator shall credit the participant with a service credit that is equal to the participant's 07 actual service or the actuarially calculated value of the employer and employee contribution 08 transferred, whichever is less. The board shall establish transfer procedures by regulation, but 09 the actual transfer may not be later than 30 days after the effective date of the member's 10 participation in the defined benefit retirement plan unless the major financial markets for 11 securities available for a transfer are seriously disrupted by an unforeseen event that also 12 causes the suspension of trading on any national securities exchange in the country where the 13 securities were issued. In that event, the 30-day period of time may be extended by a 14 resolution of the board. Transfers are not commissionable or subject to other fees and may be 15 in the form of securities or cash as determined by the board. Securities shall be valued on the 16 date of receipt in the participant's account. 17 (d) In this section, 18 (1) "administrator" means the person appointed or designated by the 19 commissioner of administration under AS 39.35.050 for a public employees' retirement plan 20 and under AS 14.25.003 for a teachers' retirement plan; 21 (2) "board" means the Alaska Retirement Management Board established 22 under AS 37.10.210; 23 (3) "defined benefit retirement plan" means the retirement plan established 24 under 25 (A) AS 14.25.009 - 14.25.220 for a teacher; or 26 (B) AS 39.35.095 - 39.35.680 for a public employee; 27 (4) "defined contribution retirement plan" means the retirement plan 28 established under 29 (A) former provisions of AS 14.25.310 - 14.25.590 for a teacher; or 30 (B) former provisions of AS 39.35.700 - 39.35.990 for a public 31 employee.
01 * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 ADOPTION OF REGULATIONS. The commissioner of administration shall proceed 04 immediately to adopt regulations consistent with this Act, but in no event may the regulations 05 take effect before the effective date of sec. 31 of this Act. 06 * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 INSTRUCTION TO REVISOR OF STATUTES. The revisor of statutes shall submit 09 to the Alaska Legislative Council a draft bill making conforming amendments to the statutes 10 of the State of Alaska consistent with this Act to clarify that the teachers' retirement system 11 and the public employees' retirement system consist only of defined benefit plans. 12 * Sec. 35. Sections 32 and 33 of this Act take effect immediately under AS 01.10.070(c).