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SB 100: "An Act relating to employer contributions to the Public Employees' Retirement System of Alaska; relating to requirements that employers who terminate some or all participation in the Public Employees' Retirement System of Alaska pay termination costs; and making the changes retroactive."

00                             SENATE BILL NO. 100                                                                         
01 "An Act relating to employer contributions to the Public Employees' Retirement System                                   
02 of Alaska; relating to requirements that employers who terminate some or all                                            
03 participation in the Public Employees' Retirement System of Alaska pay termination                                      
04 costs; and making the changes retroactive."                                                                             
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 39.35.255 is amended by adding a new subsection to read:                                           
07            (i)  After an employer's participation in the plan terminates with regard to some                            
08       or all of the employer's employees who are active members of the system, the                                      
09       employer remains obligated to make contributions under (a) of this section until the                              
10       plan does not have a past service liability.                                                                      
11    * Sec. 2. AS 39.35.615(i) is amended to read:                                                                      
12            (i)  Termination of coverage of a department, group, or other classification of                              
13       employees does not bar future coverage of that department, group, or classification [IF                           
14       THE EMPLOYER IS CURRENT WITH PAYMENTS ON AMOUNTS DUE                                                              
01       UNDER AS 39.35.625]. If coverage of a department, group, or classification is                                     
02       terminated under (a) of this section and the employer later amends its participation                              
03       agreement to provide renewed coverage of that department, group, or classification, an                            
04       affected employee may be credited only with future service.                                                       
05    * Sec. 3. AS 39.35.620(k) is amended to read:                                                                      
06            (k)  Termination of an employer's participation in the plan does not bar future                              
07       participation in the system by that employer [IF THE EMPLOYER IS CURRENT                                          
08       WITH PAYMENTS ON AMOUNTS DUE UNDER AS 39.35.625]. If a previously                                                 
09       terminated employer returns to the system, the employer may only participate in the                               
10       plan established under AS 39.35.700 - 39.35.990. Employees may be credited under                                  
11       AS 39.35.700 - 39.35.990 only with service subsequent to the date of return.                                      
12    * Sec. 4. AS 39.35.958(c) is amended to read:                                                                      
13            (c)  When an employer's participation in the plan terminates [IS                                         
14       TERMINATED, OR WHEN AN EMPLOYER TERMINATES COVERAGE OF A                                                          
15       DEPARTMENT, GROUP, OR OTHER CLASSIFICATION OF EMPLOYEES                                                           
16       UNDER AS 39.35.957(c)], the administrator shall assess the employer a termination                                 
17       cost that the administrator determines is actuarially required to fully fund the costs to                         
18       the plan for employees whose coverage is terminated, including the cost of providing                              
19       the employer's share of retiree health benefits under AS 39.35.880, occupational                                  
20       disability and occupational death benefits under AS 39.35.890 and 39.35.892, and                                  
21       pension benefits elected under AS 39.35.890(h)(2).                                                                
22    * Sec. 5. AS 39.35.958(e) is amended to read:                                                                      
23            (e)  An employer whose [TERMINATING] participation in the plan                                           
24       terminates shall pay termination costs determined under (c) of this section [BY THE                       
25       ADMINISTRATOR], or enter into a payment plan acceptable to the administrator,                                     
26       within 60 days after the employer receives notice of its termination costs from the                               
27       administrator. Termination costs not paid within the prescribed time limit or in                                  
28       accordance with the approved payment plan shall be collected by the administrator in                              
29       accordance with AS 39.35.610(b). Termination of participation by an employer in the                               
30       plan does not bar future participation by the employer if the employer has paid in full                           
31       its prior termination costs.                                                                                      
01    * Sec. 6. AS 39.35.625 is repealed.                                                                                
02    * Sec. 7. AS 39.35.958(f) is repealed.                                                                             
03    * Sec. 8. 2 AAC 35.235 is annulled.                                                                                
04    * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to                          
05 read:                                                                                                                   
06       APPLICABILITY. Notwithstanding sec. 10 of this Act, secs. 2 and 3 of this Act do                                  
07 not apply to AS 39.35.625(a), and secs. 4 and 5 of this Act do not apply to AS 39.35.958, for                           
08 termination costs paid before the effective date of this Act for payroll periods or partial                             
09 payroll periods that occur before the effective date of this Act.                                                       
10    * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to                         
11 read:                                                                                                                   
12       RETROACTIVITY. Sections 1 - 3 and 6 of this Act are retroactive to July 1, 2008,                                  
13 secs. 4, 5, and 7 of this Act are retroactive to June 7, 2007, and sec. 8 of this Act is retroactive                    
14 to January 13, 2010.