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HB 306: "An Act relating to disbursement options under the Public Employees' Retirement System of Alaska and the Teachers' Retirement System of Alaska for participants in the defined contribution plan; and providing for an effective date."

00                             HOUSE BILL NO. 306                                                                          
01 "An Act relating to disbursement options under the Public Employees' Retirement                                         
02 System of Alaska and the Teachers' Retirement System of Alaska for participants in the                                  
03 defined contribution plan; and providing for an effective date."                                                        
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 14.25.420(a) is amended to read:                                                                  
06            (a)  A participant may elect to receive [DISTRIBUTION OF] the participant's                                  
07       share of the individual account in a                                                                              
08                 (1)  lump sum payment, which is a single payment of the entire balance                                  
09       in the account; or                                                                                            
10                 (2)  periodic distribution option authorized by regulation [LUMP                                    
11       SUM PAYMENT, WHICH IS A PAYMENT OF A PORTION OF THE BALANCE                                                       
12       IN THE ACCOUNT, NOT MORE THAN TWICE EACH YEAR;                                                                    
13                 (3)  PERIOD CERTAIN ANNUITY PAYMENT, WHICH IS AN                                                        
14       ANNUITY PAYABLE IN A FIXED NUMBER OF MONTHLY INSTALLMENTS                                                         
01       FOR A DURATION OF 60, 120, OR 180 MONTHS;                                                                         
02 (4)  LIFE ANNUITY WITH A PERIOD CERTAIN PAYMENT,                                                                        
03 WHICH IS AN ANNUITY PAYABLE UNTIL THE LATER OF THE FIRST DAY                                                            
04 OF THE MONTH IN WHICH THE ANNUITANT'S DEATH OCCURS, OR THE                                                              
05 DATE ON WHICH THE PAYMENT OF A FIXED NUMBER OF MONTHLY                                                                  
06 INSTALLMENTS IS COMPLETED; THE PERIOD CERTAIN FOR                                                                       
07       INSTALLMENTS IS 120 OR 180 MONTHS;                                                                                
08 (5)  SINGLE LIFE ANNUITY PAYMENT, WHICH IS AN                                                                           
09 ANNUITY PAYABLE MONTHLY UNTIL THE FIRST OF THE MONTH IN                                                                 
10       WHICH THE ANNUITANT'S DEATH OCCURS; OR                                                                            
11 (6)  JOINT AND SURVIVOR ANNUITY PAYMENT, WHICH IS                                                                       
12 AN ANNUITY PAYABLE MONTHLY TO THE MEMBER UNTIL THE FIRST OF                                                             
13 THE MONTH IN WHICH THE MEMBER'S DEATH OCCURS; AFTER THE                                                                 
14 MEMBER'S DEATH, A SURVIVOR ANNUITY EQUAL TO 50 PERCENT OR 100                                                           
15 PERCENT OF THE MEMBER'S BENEFIT, AS PREVIOUSLY ELECTED BY THE                                                           
16 MEMBER, SHALL BE PAID MONTHLY TO THE JOINT ANNUITANT FOR THE                                                            
17       REMAINDER OF THE SURVIVOR'S LIFETIME].                                                                            
18    * Sec. 2. AS 39.35.820(a) is amended to read:                                                                      
19 (a)  A participant may elect to receive the participant's share of the individual                                       
20       account in a                                                                                                      
21 (1)  lump sum payment, which is a single payment of the entire balance                                                  
22       in the account; or                                                                                            
23 (2)  periodic distribution option authorized by regulation [LUMP                                                    
24 SUM PAYMENT, WHICH IS A PAYMENT OF A PORTION OF THE BALANCE                                                             
25       IN THE ACCOUNT, NOT MORE THAN TWICE EACH YEAR;                                                                    
26 (3)  PERIOD CERTAIN ANNUITY PAYMENT, WHICH IS AN                                                                        
27 ANNUITY PAYABLE IN A FIXED NUMBER OF MONTHLY INSTALLMENTS                                                               
28       FOR A DURATION OF 60, 120, OR 180 MONTHS;                                                                         
29 (4)  LIFE ANNUITY WITH A PERIOD CERTAIN PAYMENT,                                                                        
30 WHICH IS AN ANNUITY PAYABLE UNTIL THE LATER OF THE FIRST DAY                                                            
31 OF THE MONTH IN WHICH THE ANNUITANT'S DEATH OCCURS, OR THE                                                              
01 DATE ON WHICH THE PAYMENT OF A FIXED NUMBER OF MONTHLY                                                                  
02 INSTALLMENTS IS COMPLETED; THE PERIOD CERTAIN FOR                                                                       
03       INSTALLMENTS IS 120 OR 180 MONTHS;                                                                                
04 (5)  SINGLE LIFE ANNUITY PAYMENT, WHICH IS AN                                                                           
05 ANNUITY PAYABLE MONTHLY UNTIL THE FIRST OF THE MONTH IN                                                                 
06       WHICH THE ANNUITANT'S DEATH OCCURS; OR                                                                            
07 (6)  JOINT AND SURVIVOR ANNUITY PAYMENT, WHICH IS                                                                       
08 AN ANNUITY PAYABLE MONTHLY TO THE MEMBER UNTIL THE FIRST OF                                                             
09 THE MONTH IN WHICH THE MEMBER'S DEATH OCCURS; AFTER THE                                                                 
10 MEMBER'S DEATH, A SURVIVOR ANNUITY EQUAL TO 50 PERCENT OR 100                                                           
11 PERCENT OF THE MEMBER'S BENEFIT, AS PREVIOUSLY ELECTED BY THE                                                           
12 MEMBER, SHALL BE PAID MONTHLY TO THE JOINT ANNUITANT FOR THE                                                            
13       REMAINDER OF THE SURVIVOR'S LIFETIME].                                                                            
14    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
15 read:                                                                                                                   
16 TRANSITION: REGULATIONS. (a) The Department of Administration may adopt                                                 
17 regulations necessary to implement this Act. Regulations adopted by the Department of                                   
18 Administration under this Act relate to the internal management of a state agency and are not                           
19 subject to AS 44.62 (Administrative Procedures Act) under AS 14.25.005 and AS 39.35.005.                                
20 (b)  Regulations adopted under this section may not take effect before the effective                                    
21 date of the law being implemented by the regulation.                                                                    
22    * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c).