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CSSB 100(FIN): "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                       CS FOR SENATE BILL NO. 100(FIN)                                                                   
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 AS 39.35.625 is repealed and reenacted to read:                                                          
12            Sec. 39.35.625. Termination costs. An employer that terminates participation                               
13       in the plan of more than 20 percent of the employer's paid employees within any one-                              
14       year period shall pay for a termination cost study that is directly related to the costs of                       
01       that termination.                                                                                                 
02    * Sec. 3. AS 39.35.958(c) is amended to read:                                                                      
03            (c)  When an employer's participation in the plan terminates [IS                                         
04       TERMINATED, OR WHEN AN EMPLOYER TERMINATES COVERAGE OF A                                                          
05       DEPARTMENT, GROUP, OR OTHER CLASSIFICATION OF EMPLOYEES                                                           
06       UNDER AS 39.35.957(c)], the administrator shall assess the employer a termination                                 
07       cost that the administrator determines is actuarially required to fully fund the costs to                         
08       the plan for employees whose coverage is terminated, including the cost of providing                              
09       the employer's share of retiree health benefits under AS 39.35.880, occupational                                  
10       disability and occupational death benefits under AS 39.35.890 and 39.35.892, and                                  
11       pension benefits elected under AS 39.35.890(h)(2).                                                                
12    * Sec. 4. AS 39.35.958(e) is amended to read:                                                                      
13            (e)  An employer whose [TERMINATING] participation in the plan                                           
14       terminates shall pay termination costs determined under (c) of this section [BY THE                       
15       ADMINISTRATOR], or enter into a payment plan acceptable to the administrator,                                     
16       within 60 days after the employer receives notice of its termination costs from the                               
17       administrator. Termination costs not paid within the prescribed time limit or in                                  
18       accordance with the approved payment plan shall be collected by the administrator in                              
19       accordance with AS 39.35.610(b). Termination of participation by an employer in the                               
20       plan does not bar future participation by the employer if the employer has paid in full                           
21       its prior termination costs.                                                                                      
22    * Sec. 5. AS 39.35.958(f) is repealed and reenacted to read:                                                       
23            (f)  An employer that terminates participation in the plan of more than 20                                   
24       percent of the employer's paid employees within any one-year period shall pay for a                               
25       termination cost study that is directly related to the costs of that termination.                                 
26    * Sec. 6. 2 AAC 35.235 is annulled.                                                                                
27    * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to                          
28 read:                                                                                                                   
29       APPLICABILITY. Notwithstanding sec. 8 of this Act, secs. 3 and 4 of this Act do not                               
30 apply to AS 39.35.958, for termination costs paid before the effective date of this Act for                             
31 payroll periods or partial payroll periods that occur before the effective date of this Act.                            
01    * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to                          
02 read:                                                                                                                   
03       RETROACTIVITY. Sections 1 and 2 of this Act are retroactive to July 1, 2008, secs.                                
04 3 - 5 of this Act are retroactive to June 7, 2007, and sec. 6 of this Act is retroactive to                             
05 January 13, 2010.