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 AS 39.35.625 is repealed and reenacted to read: 12 Sec. 39.35.625.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.