HB 349: "An Act creating the Alaska retirement reserve subaccount in the constitutional budget reserve fund; relating to the duties of the Alaska Retirement Management Board; and providing for an effective date."
00 HOUSE BILL NO. 349 01 "An Act creating the Alaska retirement reserve subaccount in the constitutional budget 02 reserve fund; relating to the duties of the Alaska Retirement Management Board; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 37.10.210(a) is amended to read: 06 (a) The Alaska Retirement Management Board is established in the 07 Department of Revenue. The board's primary missions are [MISSION IS] to serve as 08 the trustee of the assets of the state's retirement systems, the State of Alaska 09 Supplemental Annuity Plan, [AND] the deferred compensation program for state 10 employees, and the Alaska retiree health care trusts established under AS 39.30.097, 11 and to manage the Alaska retirement reserve subaccount established under 12 AS 37.10.500. Consistent with standards of prudence, the board has the fiduciary 13 obligation to manage and invest these assets in a manner that is sufficient, in 14 combination with contributions, to meet the liabilities and pension obligations of the
01 systems, plan, program, and trusts. The board may, with the approval of the 02 commissioner of revenue and upon agreement with the responsible fiduciary, manage 03 and invest other state funds so long as the activity does not interfere with the board's 04 primary mission. In making investments, the board shall exercise the powers and 05 duties of a fiduciary of a state fund under AS 37.10.071. 06 * Sec. 2. AS 37.10 is amended by adding new sections to read: 07 Article 8. Alaska Retirement Reserve Subaccount. 08 Sec. 37.10.500. Alaska retirement reserve subaccount established. The 09 Alaska retirement reserve subaccount is established in the budget reserve fund (art. IX, 10 sec. 17, Constitution of the State of Alaska). Income earned on money in the 11 subaccount shall be retained in the subaccount. 12 Sec. 37.10.510. Management of the subaccount. The Alaska Retirement 13 Management Board shall manage the Alaska retirement reserve subaccount. The 14 subaccount shall be managed in accordance with art. IX, sec. 17, Constitution of the 15 State of Alaska and AS 37.10.210(a). 16 Sec. 37.10.520. Use of subaccount. (a) Money in the retirement reserve 17 subaccount may be appropriated by the legislature 18 (1) to satisfy the liabilities of the Public Employees' Retirement 19 System of Alaska owed to employees who entered the Public Employees' Retirement 20 System of Alaska before July 1, 2006, if other funds available to the Public 21 Employees' Retirement System of Alaska are exhausted in the next fiscal year; 22 (2) to satisfy the liabilities of the Teachers' Retirement System of 23 Alaska owed to employees who entered the Teachers' Retirement System of Alaska 24 before July 1, 2006, if other funds available to the Teachers' Retirement System of 25 Alaska are exhausted in the next fiscal year; or 26 (3) for any other public purpose. 27 (b) If the board determines that the combined total value of the assets of the 28 Public Employees' Retirement System of Alaska, the Teachers' Retirement System of 29 Alaska, and the Alaska retirement reserve subaccount (AS 37.10.500) exceeds 95 30 percent of the combined total value of the liabilities of the Public Employees' 31 Retirement System of Alaska and the Teachers' Retirement System of Alaska, the
01 board shall notify the commissioner. 02 (c) If the commissioner is notified under (b) of this section, the commissioner 03 shall transfer an amount equal to the amount by which the total combined value of the 04 assets of the Public Employees' Retirement System of Alaska, the Teachers' 05 Retirement System of Alaska, and the Alaska retirement reserve subaccount 06 (AS 37.10.500) exceeds 95 percent of the combined total value of the liabilities of the 07 Public Employees' Retirement System of Alaska and the Teachers' Retirement System 08 of Alaska to the budget reserve fund (art. IX, sec. 17, Constitution of the State of 09 Alaska). 10 (d) When calculating the combined total value of assets under this section, the 11 assets of the Public Employees' Retirement System of Alaska and the Teachers' 12 Retirement System of Alaska and the balance of the Alaska retirement reserve 13 subaccount shall be used. 14 Sec. 37.10.550. Definitions. In AS 37.10.500 - 37.10.550, unless the context 15 otherwise requires, 16 (1) "board" means the Alaska Retirement Management Board; 17 (2) "commissioner" means the commissioner of revenue; 18 (3) "subaccount" means the Alaska retirement reserve subaccount 19 established under AS 37.10.500 in the budget reserve fund (art. IX, sec. 17, 20 Constitution of the State of Alaska). 21 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 TRANSITION. On July 1, 2014, the Department of Revenue is directed to transfer 24 $3,000,000,000 from the constitutional budget reserve fund (art. IX, sec. 17, Constitution of 25 the State of Alaska) to the Alaska retirement reserve subaccount. 26 * Sec. 4. This Act takes effect June 30, 2014.