00 SENATE BILL NO. 271
01 "An Act relating to the longevity bonus program and amending and making
02 effective an annuity program and amendments to the longevity bonus program
03 and the permanent fund dividend program provided for in secs. 2 - 18, ch. 99,
04 SLA 1985; and providing for an effective date."
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
06 * Section 1. AS 43.23.005(d), as enacted by sec. 3, ch. 99, SLA 1985, is amended to read:
07 (d) A person who is eligible to receive a permanent fund dividend under this
08 section, or who is authorized to claim a dividend on behalf of another under (c) of this
09 section, may elect to receive the dividend either in cash or as an annuity credit.
10 Alternatively, a person may elect to receive 25 percent, 50 percent, or 75 percent of
11 the dividend in cash and the remainder as an annuity credit. A person who is 65 years
12 of age on or before January 1, 1996, [1988] may only receive the permanent fund
13 dividend in cash and may not elect to receive an annuity credit.
14 * Sec. 2. AS 43.23.110(a), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read:
01 (a) The annuity investment fund is established as a separate fund in the state
02 treasury. The annuity investment fund consists of money transferred from the dividend
03 fund, cash contributions under AS 43.23.125, and income earned by the annuity
04 investment fund. Notwithstanding AS 37.13.145, an amount equal to the permanent
05 fund dividends taken as annuity credits under this chapter shall be annually transferred
06 from the dividend fund to the annuity investment fund.
07 * Sec. 3. AS 43.23.110(b), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read:
08 (b) Money in the annuity investment fund shall be invested under
09 AS 37.10.071 by the commissioner of revenue [IN INVESTMENTS AUTHORIZED
10 UNDER AS 39.35.110]. The commissioner of administration shall credit the net
11 income of the annuity investment fund to the individual annuity accounts and the
12 annuity reserve account.
13 * Sec. 4. AS 43.23 is amended by adding a new section to read:
14 Sec. 43.23.125. CASH CONTRIBUTIONS. An individual who is eligible to
15 receive the permanent fund dividend as an annuity credit under AS 43.23.005(d) but
16 does not elect to do so or who elects to receive only a portion of the permanent fund
17 dividend as an annuity credit may make a cash contribution to that individual's annuity
18 account. The cash contribution for a dividend year must be received by the Depart-
19 ment of Administration before September 30 of the year following that dividend year.
20 The total amount of the annuity credit and the cash contributions to an annuity account
21 for a year may not exceed the amount of the permanent fund dividend for that year.
22 * Sec. 5. AS 43.23.130(a), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read:
23 (a) An individual with one or more annuity credits or cash contributions
24 under AS 43.23.125 may receive an annuity upon reaching the age of 65.
25 * Sec. 6. AS 43.23.130(b), as enacted by sec. 16, ch. 99, SLA 1985, is amended to read:
26 (b) An annuity under this section is a monthly payment based upon the
27 principal and accrued interest in the person's annuity account. Upon appointment to
28 receive an annuity, the account balance shall be transferred to the annuity reserve
29 account. The [AN] annuity shall be paid from the annuity reserve account as a
30 straight life annuity or other payment plan authorized by the commissioner of
31 administration [THE DEPARTMENT OF ADMINISTRATION]. The size of the
01 annuity may not vary on account of the individual's sex.
02 * Sec. 7. AS 43.23.130(e), as enacted by sec. 16, ch. 99, SLA 1985, is repealed and
03 reenacted to read:
04 (e) If a person elects to credit a permanent fund dividend or make a cash
05 contribution to an annuity account and dies before age 65, a lump sum payment shall
06 be made to that person's designated beneficiary or beneficiaries. The lump sum
07 payment includes all dividends or cash contributions credited to the person's annuity
08 account and interest earned on the account. A person may change or revoke a
09 designation without notice to the beneficiary or beneficiaries at any time. If a person
10 designates more than one beneficiary, each shares equally unless the person specifies
11 a different allocation or preference. The designation, change, or revocation of
12 beneficiary shall be made on a form provided by the commissioner of administration
13 and is not effective until it is filed with the commissioner. If there is no beneficiary
14 designated or surviving, the lump sum payment shall be paid to the
15 (1) surviving spouse;
16 (2) if there is no surviving spouse, in equal parts to the surviving
17 children including adopted children;
18 (3) if there is no surviving spouse or child, in equal parts to the
19 surviving parents; or
20 (4) if there is no surviving spouse, child, or parent, to the estate of the
21 deceased.
22 * Sec. 8. AS 43.23 is amended by adding a new section to read:
23 Sec. 43.23.135. EMERGENCY WITHDRAWALS. An individual may make
24 a withdrawal from that individual's annuity account before reaching the age of 65 if
25 the individual establishes to the satisfaction of the commissioner of administration that
26 the withdrawal is necessary to meet an unforeseeable emergency. The amount
27 withdrawn may not exceed the total amount in the individual's annuity account or the
28 amount actually necessary to meet the emergency, whichever is less. The
29 commissioner shall define the term "unforeseeable emergency" by regulation. An
30 individual may only make one withdrawal under this section and may pay it back with
31 interest under terms established by the commissioner. An individual who has made
01 a withdrawal under this section may not elect to credit a dividend or make a cash
02 contribution to an annuity account for two years after the withdrawal.
03 * Sec. 9. AS 47.45.010(a) is repealed and reenacted to read:
04 (a) A person who is 65 years of age or over, who resides in the state for at
05 least one year immediately preceding application for a longevity bonus under this
06 chapter may apply to the commissioner of administration for qualification to receive
07 a monthly bonus.
08 * Sec. 10. AS 47.45.015, as enacted by sec. 18, ch. 99, SLA 1985, is amended to read:
09 Sec. 47.45.015. AMOUNT OF BONUS. (a) Except as provided in (b) of this
10 section, the monthly longevity bonus is equal to $250, minus the maximum possible
11 straight life annuity [FOR A PERSON 65 YEARS OF AGE] under the annuity
12 program (AS 43.23.110 - 43.23.130), as determined by the commissioner of
13 administration. The maximum possible straight life annuity equals the amount a
14 person would receive if that person became 65 on January 2, 1996, and
15 contributed 100 percent of all permanent fund dividends or the cash equivalency
16 to the annuity program for every year after December 31, 1994. However, for
17 purposes of this section the maximum possible straight life annuity may not
18 exceed the amount that a person turning 65 in the current year would receive if
19 that person had contributed 100 percent of all permanent fund dividends or the
20 cash equivalency to the annuity program for every year after December 31, 1995.
21 (b) A person who is 65 years of age on or before January 1, 1996 [1988], is
22 entitled to the full longevity bonus payment without reduction for the annuity program.
23 * Sec. 11. Section 1, ch. 99, SLA 1985, and sec. 5, ch. 64, SLA 1993 are repealed.
24 * Sec. 12. AS 43.23.110(c), as enacted by sec. 16, ch. 99, SLA 1985, and AS 43.23.055(9);
25 AS 47.45.045, 47.45.070(a)(5), and 47.45.070(a)(6) are repealed.
26 * Sec. 13. Chapter 99, SLA 1985, and secs. 1 - 12 of this Act apply only to permanent
27 fund dividends for years beginning after December 31, 1994. Notwithstanding the
28 amendments to AS 43.23 made by ch. 99, SLA 1985, and this Act, permanent fund dividends
29 for 1994 and prior years shall be made under the law as it existed before the effective date
30 of this Act.
31 * Sec. 14. Nothing in this Act repeals or amends by implication amendments to AS 43.23
01 or AS 47.45 enacted after 1985.
02 * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).