00                            SENATE BILL NO. 207                                                                         
01 "An Act relating to increasing employer contributions to the defined benefit plan in the                                
02 teachers' retirement system."                                                                                           
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06       LEGISLATIVE INTENT.  It is the intent of the legislature to appropriate additional                                
07 money to school districts annually to mitigate the annual increases to employer costs for the                           
08 first five complete fiscal years under this Act.                                                                        
09    * Sec. 2. AS 14.25.070(a) is repealed and reenacted to read:                                                       
10            (a)  Each employer shall contribute to the system every payroll period                                       
11                 (1)  the employer contributions required under AS 14.25.350 and                                         
12       AS 39.30.370 and the adjustments to contributions required under AS 14.25.173(a);                                 
13       and                                                                                                               
14                 (2)  the lesser of                                                                                      

01                      (A)  an amount calculated by applying to the employer's payroll                                    
02            the contribution rates certified by the trustees of the Alaska Retirement                                    
03            Management Board under AS 37.10.220(a)(8); or                                                                
04                      (B)  an amount calculated by applying to the employer's payroll                                    
05            the following rates:                                                                                         
06                           (i)  12.56 percent before July 1, 2016;                                                       
07                           (ii)  19 percent after June 30, 2016, and before July 1,                                      
08                 2017;                                                                                                   
09                           (iii)  20 percent after June 30, 2017, and before July 1,                                     
10                 2018;                                                                                                   
11                           (iv)  21 percent after June 30, 2018, and before July 1,                                      
12                 2019;                                                                                                   
13                           (v)  22 percent after June 30, 2019.                                                          
14    * Sec. 3. AS 14.25.070(h) is amended to read:                                                                      
15            (h)  In this section,                                                                                        
16                 (1)  "normal cost" means the cost of providing the benefits expected to                             
17       be credited, with respect to service, to all active members of the plan during the year                           
18       beginning after the last valuation date;                                                                      
19                 (2)  "payroll" means the total of all base salaries paid by an                                      
20       employer to active members of the system.                                                                     
21    * Sec. 4. AS 14.25.070(d) is repealed.