HB 385: "An Act relating to additional state contributions to the teachers' defined benefit retirement plan and the public employees' defined benefit retirement plan; and providing for an effective date."
00 HOUSE BILL NO. 385 01 "An Act relating to additional state contributions to the teachers' defined benefit 02 retirement plan and the public employees' defined benefit retirement plan; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25.085 is amended to read: 06 Sec. 14.25.085. Additional state contributions. In addition to the 07 contributions that the state is required to make under AS 14.25.070 as an employer, 08 the state shall, subject to appropriation, contribute to the plan each July 1 or, if funds 09 are not available on July 1, as soon after July 1 as funds become available, an amount 10 calculated on a fixed annual contribution basis up to $343,000,000 for the ensuing 11 fiscal year that, when combined with the total employer contributions that the 12 administrator estimates will be allocated under AS 14.25.070(c), is sufficient to pay 13 the plan's past service liability by 2037, adjusted for changes in actuarial 14 experience. If the actuarial analysis submitted to the board under AS 37.10.220
01 determines that the fixed annual contribution amount is insufficient to amortize 02 the past service liability over any period, the state shall, subject to appropriation, 03 contribute an additional fixed amount in order to fully amortize the past service 04 liability over a period consistent with actuarial standards [AT THE 05 CONTRIBUTION RATE ADOPTED BY THE BOARD UNDER AS 37.10.220 FOR 06 THAT FISCAL YEAR]. 07 * Sec. 2. AS 39.35.280 is amended to read: 08 Sec. 39.35.280. Additional state contributions. In addition to the 09 contributions that the state is required to make under AS 39.35.255 as an employer, 10 the state shall, subject to appropriation, contribute to the plan each July 1 or, if funds 11 are not available on July 1, as soon after July 1 as funds become available, an amount 12 calculated on a fixed annual contribution basis up to $157,000,000 for the ensuing 13 fiscal year that, when combined with the total employer contributions that the 14 administrator estimates will be allocated under AS 39.35.255(c), is sufficient to pay 15 the plan's past service liability by 2037, adjusted for changes in actuarial 16 experience. If the actuarial analysis submitted to the board under AS 37.10.220 17 determines that the fixed annual contribution amount is insufficient to amortize 18 the past service liability over any period, the state shall, subject to appropriation, 19 contribute an additional fixed amount in order to fully amortize the past service 20 liability over a period consistent with actuarial standards [AT THE 21 CONTRIBUTION RATE ADOPTED BY THE BOARD UNDER AS 37.10.220 FOR 22 THAT FISCAL YEAR]. 23 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 CONTINGENCY. This Act is contingent upon approval of an appropriation from the 26 budget reserve fund (art. IX, sec.17, Constitution of the State of Alaska) of $1,118,630,000 to 27 the teachers' retirement system for the fiscal year ending June 30, 2015, and $1,881,370,000 28 to the public employees' retirement system for the fiscal year ending June 30, 2015. 29 * Sec. 4. This Act takes effect July 1, 2014.