HB 302: "An Act relating to supplemental employee benefits; relating to retirement benefits of peace officers and firefighters hired after June 30, 2006; and providing for an effective date."
00 HOUSE BILL NO. 302 01 "An Act relating to supplemental employee benefits; relating to retirement benefits of 02 peace officers and firefighters hired after June 30, 2006; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 39.30.150(a) is amended to read: 06 (a) In place of contributions to the federal social security system that would 07 have been required on behalf of a participating [AN] employee had the 08 [PARTICIPATING] employer belonged to the social security system, the 09 [PARTICIPATING] employer shall contribute an amount equal to 6.13 percent of the 10 wages of the participating employee up to the taxable wage base then in effect in the 11 social security system. This contribution shall be paid into an individual employee 12 annuity account in the Department of Administration under the terms of the State of 13 Alaska Supplemental Annuity Plan. The department shall pay 6.13 percent of the 14 wages of the participating employee up to the taxable wage base then in effect in the
01 social security system into the individual employee annuity account established under 02 this subsection. This wage reduction shall be treated as an employer contribution 03 under 26 U.S.C. 414(h)(2). All costs of establishing and administering the programs 04 established under AS 39.30.150 - 39.30.180 shall be paid from the contributions made 05 to the individual employee annuity accounts under this section. 06 * Sec. 2. AS 39.30.150(c) is amended to read: 07 (c) A participating [AN] employee may voluntarily elect additional wage 08 reductions to be paid into special individual employee benefit accounts in the 09 Department of Administration. Money in these accounts may only be used to purchase 10 benefits selected by the participating employee under the supplemental benefits plan 11 established by the administrator. 12 * Sec. 3. AS 39.30.160(a) is amended to read: 13 (a) The Department of Administration shall, in accordance with policies 14 prescribed by regulations adopted by the commissioner, provide to participating 15 employees for whom special individual employee benefit accounts are established 16 under AS 39.30.150(c) the following benefit options: 17 (1) supplemental health benefits; 18 (2) supplemental death benefits; 19 (3) supplemental disability benefits; and 20 (4) supplemental dependent care benefits. 21 * Sec. 4. AS 39.30.160(b) is amended to read: 22 (b) A participating [AN] employee may select the types and amounts of 23 supplemental benefits to be purchased with the money deposited in the employee's 24 special individual employee benefit accounts under AS 39.30.150. The selection for 25 participating employees described in AS 39.30.150(a) must be from the benefit 26 options listed in (a) of this section. 27 * Sec. 5. AS 39.30.170 is amended by adding a new subsection to read: 28 (e) An active employee member of the teachers' retirement system (AS 14.25) 29 or a person employed as a peace officer or firefighter by a political subdivision of the 30 state may elect to become a participating employee if employed by an employer who 31 is not
01 (1) a participating employer; 02 (2) a member of the federal social security system. 03 * Sec. 6. AS 39.30.180 is amended by adding a new paragraph to read: 04 (4) "participating employee" includes 05 (A) an employee of a participating employer; 06 (B) an employee who elects to participate in the supplemental 07 employee benefit plan under AS 39.30.170(e). 08 * Sec. 7. AS 39.35.750(a) is amended to read: 09 (a) An employer shall contribute to the [EACH MEMBER'S] individual 10 account of each member who is not a peace officer or firefighter an amount equal 11 to five percent of the member's compensation from July 1 to the following June 30. 12 An employer shall contribute to the individual account of each peace officer or 13 firefighter an amount equal to 9.74 percent of the peace officer's or firefighter's 14 compensation from July 1 to the following June 30. 15 * Sec. 8. This Act takes effect July 1, 2025.