00                            SENATE BILL NO. 209                                                                         
01 "An Act relating to increasing employer contributions to the defined benefit plan in the                                
02 Public Employees' Retirement System of Alaska."                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 39.35.255(a) is repealed and reenacted to read:                                                    
05            (a)  Each employer shall contribute to the system every payroll period                                       
06                 (1)  the employer contributions required under AS 39.30.370 and                                         
07       AS 39.35.750 and the adjustments to contributions required under AS 39.35.520(a);                                 
08       and                                                                                                               
09                 (2)  the lesser of                                                                                      
10                      (A)  an amount calculated by applying to the employer's payroll                                    
11            the contribution rates certified by the trustees of the Alaska Retirement                                    
12            Management Board under AS 37.10.220(a)(8); or                                                                
13                      (B)  an amount calculated by applying to the employer's payroll                                    
14            the following rates:                                                                                         

01                           (i)  22 percent before July 1, 2016;                                                          
02                           (ii)  24.5 percent after June 30, 2016, and before July 1,                                    
03                 2017;                                                                                                   
04                           (iii)  25.5 percent after June 30, 2017, and before July 1,                                   
05                 2018;                                                                                                   
06                           (iv)  26.5 percent after June 30, 2018.                                                       
07    * Sec. 2. AS 39.35.255(h) is amended to read:                                                                      
08            (h)  In this section,                                                                                        
09                 (1)  "normal cost" means the cost of providing the benefits expected to                             
10       be credited, with respect to service, to all active members of the plan during the year                           
11       beginning after the last valuation date;                                                                      
12                 (2)  "payroll" means the total of all base salaries paid by an                                      
13       employer to employees who are active members of the system.                                                   
14    * Sec. 3. AS 39.35.255(d) is repealed.