00 CS FOR SENATE BILL NO. 1003(FIN) am 01 "An Act relating to public employee compensation, benefits, and labor relations; 02 relating to salaries and cost-of-living differentials for certain state employees, and 03 to salary surveys and preparation of an annual pay schedule regarding certain 04 state employees; relating to retirement of and early retirement incentives for 05 certain public employees; relating to pay and benefit programs for public 06 employees; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. PURPOSE AND LEGISLATIVE INTENT. The purpose of sec. 7 of this Act 09 is to affirm the interpretation and practice of the state with regard to the use of criteria similar 10 to the criteria in the permanent fund dividend program for determining the establishment and 11 maintenance of state residency for eligibility for the cost-of-living differential under 12 AS 23.40.210. It is also the intent of the legislature to provide express statutory authority to 13 the state to establish or clarify those standards through adoption of regulations by the 14 Department of Administration and to set the eligibility criteria for the differential outside the 01 collective bargaining context. 02 * Sec. 2. AS 22.05.140(a) is amended to read: 03  (a) Except as provided in (d) of this section, the monthly base salary of the 04 chief justice is $9,203 [$8,333] and for each other justice, the monthly base salary is 05 $9,159 [$8,292]. 06 * Sec. 3. AS 22.07.090(a) is amended to read: 07  (a) Except as provided in (c) of this section, the monthly base salary of a 08 judge of the court of appeals is $8,652 [$7,833]. The compensation of a judge may 09 not be diminished during the term of office, unless by a general law applying to all 10 salaried officers of the state. 11 * Sec. 4. AS 22.10.190(a) is amended to read: 12  (a) Except as provided in (d) of this section, the monthly base salary for each 13 superior court judge is $8,469 [$7,667]. 14 * Sec. 5. AS 22.15.220(a) is amended to read: 15  (a) Except as provided in (e) of this section, the monthly base salary for each 16 district court judge is $7,179 [$6,500]. 17 * Sec. 6. AS 22.15.220(b) is amended to read: 18  (b) Each magistrate shall receive annual compensation including geographic 19 differential pay to be determined by the supreme court. Salary increases shall be 20 determined on the basis of percentage of pay increase the legislature provides for state 21 employees in the classified service. [THE BASE SALARY OF A MAGISTRATE 22 SHALL BE INCREASED BY A PERCENTAGE EQUAL TO THREE AND ONE- 23 HALF PER CENT TIMES THE NUMBER OF STEP INCREASES PROVIDED UNDER 24 AS 39.27.020 THAT A STATE EMPLOYEE WOULD RECEIVE WORKING IN THE 25 SAME ELECTION DISTRICT.] A magistrate's annual compensation may be payable, at the 26 option of the magistrate, either monthly in 12 equal installments or semi-monthly in 24 equal 27 installments. 28 * Sec. 7. AS 23.40.210 is amended by adding new subsections to read: 29  (b) An employee is eligible for the cost-of-living differential under (a) of this 30 section only if the individual is a state resident. The required presence of an employee 31 at a work station where room and board are provided or reimbursed by the employer 01 may not be considered to be physical presence in the state or physical absence from 02 the state for purposes of determining eligibility for the cost-of-living differential. 03  (c) The commissioner of administration may adopt regulations under AS 44.62 04 (Administrative Procedure Act) to clarify and implement the criteria for establishing 05 and maintaining eligibility for the cost-of-living differential. 06  (d) An agreement entered into under AS 23.40.070 - 23.40.260 must require 07 compliance with the eligibility criteria for receiving the cost-of-living differential 08 contained in this section and the regulations adopted by the commissioner under (c) 09 of this section. 10  (e) In this section, "state resident" means an individual who is physically 11 present in the state with the intent to remain permanently in the state under the 12 requirements of AS 01.10.055 or, if the individual is not physically present in the state, 13 intends to return to the state and remain permanently in the state under the 14 requirements of AS 01.10.055, and is absent only temporarily for reasons allowed 15 under AS 43.23.095(8) or a successor statute. 16 * Sec. 8. AS 24.10.100 is amended to read: 17  Sec. 24.10.100. SALARY OF LEGISLATORS. The monthly salary for each 18 member of the legislature is $2,001 [EQUAL TO STEP A, RANGE 10 OF THE 19 SALARY SCHEDULE IN AS 39.27.011(a) FOR JUNEAU]. The president of the 20 senate and the speaker of the house of representatives are each entitled to an additional 21 $500 a year during tenure of office. 22 * Sec. 9. AS 39.20.200 is amended by adding a new subsection to read: 23  (b) Personal leave accrued by an officer or employee during each pay period 24 shall be converted monthly to a cash value by multiplying the hours accrued during 25 the pay periods in that month by the officer's or employee's annualized hourly rate of 26 pay for the pay period. The resulting amount shall be added to the cash value amounts 27 calculated for previous pay periods. The total of all of the cash values is the cash 28 value of the officer's or employee's personal leave balance. 29 * Sec. 10. AS 39.20.250(a) is amended to read: 30  (a) Terminal leave for unused personal leave shall be allowed upon separation 31 from service. The payment equals the cash value of the officer's or employee's 01 personal leave balance at the time of separation from state service 02 [COMPENSATION THAT THE OFFICER OR EMPLOYEE WOULD HAVE 03 RECEIVED IF THE OFFICER OR EMPLOYEE HAD REMAINED IN THE 04 SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF UNUSED PERSONAL 05 LEAVE. A PAYMENT OF TERMINAL LEAVE TO AN EMPLOYEE SHALL BE 06 MADE AS A LUMP SUM PAYMENT OR IN INSTALLMENTS OVER A PERIOD 07 OF TIME, AS THE EMPLOYEE ELECTS]. 08 * Sec. 11. AS 39.27.011 is amended by adding new subsections to read: 09  (e) Effective July 1, 1996, the amounts set out in the salary schedule contained 10 in (a) of this section are increased by the lesser of 11  (1) 1.5 percent; or 12  (2) one-half of the percentage increase in the United States Department 13 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 14 Anchorage, Alaska, from the second half of 1994 to the second half of 1995. 15  (f) Effective July 1, 1997, the amounts set out in the salary schedule contained 16 in (a) of this section, as increased under (e) of this section, are increased by the lesser 17 of 18  (1) 1.5 percent; or 19  (2) one-half of the percentage increase in the United States Department 20 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 21 Anchorage, Alaska, from the second half of 1995 to the second half of 1996. 22  (g) Effective July 1, 1998, the amounts set out in the salary schedule contained 23 in (a) of this section, as increased under (e) and (f) of this section, are increased by 24 the lesser of 25  (1) 1.5 percent; or 26  (2) one-half of the percentage increase in the United States Department 27 of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for 28 Anchorage, Alaska, from the second half of 1996 to the second half of 1997. 29 * Sec. 12. AS 39.27.030 is repealed and reenacted to read: 30  Sec. 39.27.030. COST-OF-LIVING SURVEY. Subject to an appropriation for 31 this purpose, the director shall conduct a survey, at least every five years, to review 01 the pay differentials established in AS 39.27.020. The survey may address factors, as 02 determined by the director, that are also relevant in review of state salary schedules, 03 entitlement for beneficiaries of state programs, and payments for state service 04 providers. The survey must reflect the costs of living in various election districts of 05 the state, and Seattle, Washington, by using the cost of living in Anchorage as a base. 06 * Sec. 13. AS 39.27.045 is amended to read: 07  Sec. 39.27.045. DEFINITION. In AS 39.27.020 - 39.27.030 [AS 39.27.030 - 08 39.27.040], "director" means the director of the division of personnel. 09 * Sec. 14. AS 39.35.370(b) is amended to read: 10 (b) Subject to AS 39.35.450, a terminated employee is eligible for an early 11 retirement benefit at age 55 with at least five years credited service. An actuarial adjustment 12 shall be made to retirement benefits paid under this section for an early retirement benefit.  13 The monthly amount of a retirement benefit that would be due under (c) of this section 14 shall be reduced by multiplying one-half of one percent times the number of months, to 15 the nearest month, by which the retirement date of the employee falls short of the date 16 that the employee reaches age 60. 17 * Sec. 15. AS 39.35.450(a) is amended to read: 18  (a) Benefits payable under this section are in place of benefits payable under 19 AS 39.35.370, 39.35.385, and former AS 39.35.460 [39.35.460]. Upon filing an 20 application with the administrator or when a disabled employee first attains eligibility 21 for normal retirement under AS 39.35.400(f) or 39.35.410(h), the employee shall 22 designate the person who is the employee's spouse at the time of appointment to 23 retirement as the contingent beneficiary. However, if the designation of the spouse is 24 revoked under (c) of this section, the employee may designate a dependent approved 25 by the administrator as the contingent beneficiary or may take normal or early 26 retirement under AS 39.35.370 or 39.35.385 [OR A LEVEL INCOME OPTION 27 UNDER AS 39.35.460]. The administrator shall pay benefits under the option elected 28 by the employee. The employee may elect an option that provides that 29  (1) the employee is entitled to receive a reduced benefit payable for 30 life, and, after the employee's death, the contingent beneficiary is entitled to payments 31 in the amount of 75 percent of the reduced benefit payable for life; 01  (2) the employee is entitled to receive a reduced benefit payable for 02 life, and, after the employee's death, the contingent beneficiary is entitled to receive 03 payments in the amount of 50 percent of the reduced benefit payable for life [; 04  (3) THE EMPLOYEE IS ENTITLED TO RECEIVE A REDUCED 05 BENEFIT PAYABLE DURING THE JOINT LIFETIME OF THE EMPLOYEE AND 06 THE CONTINGENT BENEFICIARY, AND, AFTER THE DEATH OF EITHER THE 07 EMPLOYEE OR THE CONTINGENT BENEFICIARY, THE SURVIVOR IS 08 ENTITLED TO RECEIVE PAYMENTS IN THE AMOUNT OF 66 2/3 PERCENT OF 09 THE REDUCED BENEFIT PAYABLE FOR LIFE]. 10 * Sec. 16. AS 39.35.485(a) is amended to read: 11  (a) An employee who is eligible for a benefit calculated in accordance with 12 AS 39.35.370(c) is entitled to a benefit of at least $25 a month for each year of 13 credited service, not including adjustments made under AS 39.35.340 for military 14 service, AS 39.35.350 for reinstatement of credited service, AS 39.35.360 for credit 15 for earlier service, AS 39.35.370(c) for early retirement, AS 39.35.420 for 16 nonoccupational death benefits, AS 39.35.450 for the survivor's option, former 17 AS 39.35.460 for the level income option, AS 39.35.475 for the post-retirement 18 pension adjustment, and AS 39.35.480 for the cost of living. 19 * Sec. 17. AS 39.35.535(c) is amended to read: 20  (c) A benefit recipient may elect major medical insurance coverage in 21 accordance with regulations and under the following conditions: 22  (1) a person who is receiving a benefit based on membership that 23 began before the effective date of this bill section but after June 30, 1986, or who 24 is receiving a benefit based on membership that began on or after the effective 25 date of this bill section and who has at least 10 years of credited service for an 26 employer, and who is 27   (A) younger than 60 years of age must pay an amount equal to 28 the full monthly group premium for retiree major medical insurance coverage; 29   (B) [(2) A PERSON WHO IS] at least 60 years of age but is 30 younger than 65 years of age must pay an amount equal to one-half of the full 31 monthly group premium for retiree major medical insurance coverage; 01   (C) [(3)] a disabled member or a person 65 years of age or 02 older is not required to make premium payments; 03  (2) a person who is receiving a benefit based on membership that 04 began on or after the effective date of this bill section and who has less than 10 05 years of credited service for an employer must pay an amount equal to the full 06 monthly group premium for retiree major medical insurance coverage, except that 07 a disabled member is not required to make premium payments. 08 * Sec. 18. AS 39.35.680(4) is amended to read: 09  (4) "average monthly compensation" means the result obtained by 10 dividing the compensation earned by an employee during a considered period by the 11 number of months, including fractional months, for which compensation was earned; 12 the considered period consists of (A) for employees first hired before the effective 13 date of this bill section, the three consecutive payroll years during the period of 14 credited service that yields the highest average, and (B) for employees first hired on 15 or after the effective date of this bill section, the five consecutive payroll years 16 during the period of credited service that yield the highest average, or if the 17 employee does not have the required number of [THREE] consecutive payroll years, 18 the employee's period of credited service; an employee must have at least 115 days 19 of credited service in the last payroll year in order for that year to be used as part of 20 the [THREE] consecutive payroll years; 21 * Sec. 19. AS 44.31.020 is amended to read: 22  Sec. 44.31.020. DUTIES OF DEPARTMENT. The Department of Labor shall 23  (1) enforce the laws, and adopt regulations under them concerning 24 employer-employee relationships, including the safety, hours of work, wages, and 25 conditions of workers, including children; 26  (2) accumulate, analyze, and report labor statistics; 27  (3) operate systems of workers' compensation and unemployment 28 insurance; and 29  (4) gather data reflecting the cost of living in the various election 30 districts of the state upon request of the director of personnel under AS 39.27.030 [AS 31 39.27.030 - 39.27.040]. 01 * Sec. 20. AS 39.20.250(b); AS 39.27.035, 39.27.040; and AS 39.35.460 are repealed. 02 * Sec. 21. FINDINGS AND PURPOSE AS TO SECS. 22 - 35. The State of Alaska and 03 many local governments are facing the need to restructure their operations and their work 04 forces in order to reduce expenditures and to balance budgets. Retirement and separation 05 incentives are management tools that have been used extensively by the private sector, the 06 federal government, and other state and local governments across the country. The purpose 07 of secs. 22 - 35 of this Act is to make these management tools temporarily available to the 08 state and to the municipalities of the state. Sections 22 - 35 of this Act will enable these 09 entities to be more efficient and cost-effective by eliminating certain nonessential positions 10 and producing a net reduction in personnel costs. 11 * Sec. 22. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a 12 retirement incentive plan under secs. 22 - 35 of this Act, as appropriate, and designate 13 categories of employees eligible to participate in that plan. An employer need not extend the 14 incentive plan to all employees who would otherwise be eligible, but may choose to extend 15 the plan only to employees 16 (1) in specific budget or administrative components of the employer; 17 (2) in specific job classifications; 18 (3) in specific geographic locations; or 19 (4) on the basis of any combination of factors under (1) - (3) of this 20 subsection. 21 (b) An employee is eligible to participate in a retirement incentive plan under secs. 22 22 - 35 of this Act only if the 23 (1) employee is a vested member of the public employees' retirement system 24 or the teachers' retirement system; 25 (2) employee will be qualified to retire under AS 14.25.110 or AS 39.35.370 26 after receipt of the credit described in (f) of this section; 27 (3) savings to the employer in personal services costs for the employee's 28 position will exceed the costs to the employer for that position within three years after the 29 employee is appointed to retirement. 30 (c) An employer shall file its proposed retirement incentive plan with the 31 commissioner of administration. Except as provided in sec. 31 of this Act, the commissioner 01 shall approve the plan if the plan meets the requirements of secs. 22 - 35 of this Act, except 02 that the commissioner may approve a state agency's retirement incentive plan only if the office 03 of management and budget approves the calculation of savings under (b)(3) of this section. 04 A proposed plan filed under this section must 05 (1) identify job classifications of employees, and specific budget or 06 administrative components, eligible to participate in the plan; 07 (2) include a reimbursement agreement that 08  (A) requires the employer, for each employee who retires under the 09 plan, to reimburse the appropriate retirement system, within three years after the end 10 of the fiscal year in which the employee is appointed to retirement, in an amount equal 11 to 12  (i) the actuarial equivalent of the difference between the benefits 13 the participant receives after the addition of the credit under (f) of this section 14 and the amount the participant would have received without the credit, less the 15 amount the participant has paid on the indebtedness determined under (d) or (e) 16 of this section; and 17  (ii) an appropriate share of the administrative costs of the 18 program; and 19  (B) provides that contributions from the employer under this section 20 take priority over other obligations of the employer to the maximum extent permitted 21 by law. 22 (d) A member of the teachers' retirement system who participates in an approved 23 retirement incentive plan under secs. 22 - 35 of this Act is indebted to that system for an 24 amount calculated under this subsection. The indebtedness is 25.95 percent of the member's 25 actual compensation for the school year in which the member terminates employment, or the 26 calculated school year compensation for a member who works less than the entire school year. 27 An outstanding indebtedness at the time a member is appointed to retirement under an 28 approved retirement incentive plan requires an actuarial adjustment to the benefits payable to 29 that member. 30 (e) A member of the public employees' retirement system who participates in an 31 approved retirement incentive plan under secs. 22 - 35 of this Act is indebted to that system 01 for an amount calculated under this subsection. The indebtedness is 22 1/2 percent for a 02 peace officer or fire fighter, and 20 1/4 percent for other members, of the member's actual 03 annual compensation for the year in which the member terminates employment, or the 04 calculated annual compensation for a member who works fewer than 12 months. An 05 outstanding indebtedness at the time a member is appointed to retirement under an approved 06 retirement incentive plan requires an actuarial adjustment to the benefits payable to that 07 member. 08 (f) An employee who participates in an approved retirement incentive plan under secs. 09 22 - 35 of this Act receives a credit of three years. The three years must be applied in the 10 following order until exhausted: 11 (1) to meet the age or service required for eligibility for normal retirement 12 under AS 14.25.110 or AS 39.35.370, as appropriate; 13 (2) to meet the age required for early retirement under AS 14.25.110 or 14 AS 39.35.370, as appropriate; 15 (3) to reduce the actuarial adjustment required for early retirement under 16 AS 14.25.110 or AS 39.35.370, as appropriate; 17 (4) as years of credited service for calculating retirement benefits. 18 (g) In this section, 19 (1) "department" means 20  (A) a principal department of the executive branch of state government; 21 an independent state entity that is attached to a principal department of the executive 22 branch for administrative purposes but that is not a public organization as defined in 23 AS 39.35.680 is part of that department for purposes of this paragraph; and 24  (B) the Office of the Governor; 25 (2) "employer" 26  (A) for purposes of a retirement incentive plan under AS 14.25, means 27 the Board of Regents of the University of Alaska, the Department of Education, or the 28 Regional Resource Center, but does not include a school district; and 29  (B) for purposes of a retirement incentive plan under AS 39.35, has the 30 meaning given in AS 39.35.680 and includes a department but does not include a 31 school district. 01 * Sec. 23. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. 02 (a) A state agency may adopt, and file with the commissioner of administration for approval, 03 a proposed retirement incentive plan for its employees as part of a permanent reduction in the 04 personal services costs in that section of the state agency. 05 (b) Upon the request of a state agency, the commissioner of administration shall 06 establish one or more periods during which the employees of that state agency who are 07 eligible under sec. 22(b) of this Act to participate in a retirement incentive plan may apply to 08 the commissioner of administration to participate in the state agency's approved plan. The 09 periods shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The 10 periods shall be no less than 30 days and no more than 60 days in duration, and may not 11 begin less than 30 days after their establishment. A state agency is not required to request an 12 application period and may request more than one application period. 13 (c) A proposed retirement incentive plan adopted under this section may not permit 14 an employee who is the governor, the lieutenant governor, or a commissioner, deputy 15 commissioner, or assistant commissioner of a principal department of the executive branch to 16 participate in the plan. 17 (d) A proposed retirement incentive plan adopted under this section may permit 18 participation only by an employee who is eligible to participate under sec. 22(b) of this Act 19 and who 20 (1) has been continuously employed by the state for at least one year before 21 the employee applies to participate in the state agency's approved plan; 22 (2) is a permanent seasonal employee who has been continuously employed 23 by the state in a permanent seasonal position during all of the time in the one year before the 24 employee's application to participate in which the position normally is filled; 25 (3) has a job sharing agreement with a state agency in which two or more 26 employees share a single position identified by a single position control number and in which 27 the employee who applies to participate in the plan was continuously employed by the agency 28 during the portion of the one year before the employee's application in which the employee 29 normally worked under the job sharing agreement; or 30 (4) meets a combination of the requirements of this subsection. 31 (e) The commissioner of administration may not accept the application of an employee 01 to participate in an approved retirement incentive plan adopted under this section unless the 02 employee will be appointed to retirement not later than the first day of the month that is six 03 months after the last day of the application period established by the commissioner under (b) 04 of this section. A state agency, in a plan adopted under this section, may set an earlier date 05 by which an employee must be appointed to retirement in order to participate in the plan. 06 * Sec. 24. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 07 THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska 08 may adopt, and file with the commissioner of administration for approval, a proposed 09 retirement incentive plan for university employees. 10 (b) Upon the request of the Board of Regents, the commissioner of administration 11 shall establish one or more periods during which the employees of the university who are 12 eligible under sec. 22(b) of this Act to participate in a retirement incentive plan may apply to 13 the commissioner of administration to participate in the university's approved plan. The 14 periods shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The 15 periods shall be no less than 30 days and no more than 60 days in duration and may not begin 16 less than 30 days after their establishment. The Board of Regents is not required to request 17 an application period and may request more than one application period. 18 (c) The commissioner of administration may not accept the application of an employee 19 to participate in an approved retirement incentive plan adopted under this section unless the 20 employee will be appointed to retirement not later than the first day of the month that is six 21 months after the last day of the application period established by the commissioner under (b) 22 of this section. The Board of Regents, in a plan adopted under this section, may set an earlier 23 date by which an employee of the University of Alaska must be appointed to retirement in 24 order to participate in the plan. 25 (d) A participant in the optional university retirement program under AS 14.40.661 - 26 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement 27 system may participate in a retirement incentive plan for that system if the participant meets 28 the other qualifications of secs. 22 - 35 of this Act. If a provision of this subsection is 29 inconsistent with another provision of law, the provision of this subsection governs. 30 * Sec. 25. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER 31 EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The 01 governing body of a political subdivision of the state or public organization that has elected 02 to participate in the public employees' retirement system under AS 39.35.550 - 39.35.650 may 03 adopt, and file with the commissioner of administration for approval, a proposed retirement 04 incentive plan for its employees. A plan adopted under this section must provide that the 05 application period for participation in the retirement incentive plan is December 31, 1996, 06 through June 30, 1997. 07 (b) The commissioner of administration may not accept the application of an employee 08 to participate in an approved retirement incentive plan adopted under this section unless the 09 employee will be appointed to retirement on or before February 1, 1998. The governing body 10 of the political subdivision or public organization, in a plan adopted under this section, may 11 set an earlier date by which an employee must be appointed to retirement in order to 12 participate in the plan. 13 * Sec. 26. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 14 REGIONAL RESOURCE CENTERS IN THE TEACHERS' RETIREMENT SYSTEM. (a) 15 A regional resource center that has employees who are members of the teachers' retirement 16 system may adopt, and file with the commissioner of administration for approval, a proposed 17 retirement incentive plan for its employees. A plan adopted under this section must provide 18 that the application period for participation in the retirement incentive plan is June 30, 1996, 19 through December 31, 1996. 20 (b) The commissioner of administration may not accept the application of an employee 21 to participate in an approved retirement incentive plan adopted under this section unless the 22 employee will be appointed to retirement on or before August 1, 1997. The regional resource 23 center, in a plan adopted under this section, may set an earlier date by which an employee 24 must be appointed to retirement in order to participate in the plan. 25 * Sec. 27. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. 26 For purposes of determining the years of service requirements for retirement under 27 AS 14.25.110 or AS 39.35.370, as appropriate, a vested member who is a state employee and 28 who applies to participate in a retirement incentive plan under secs. 22 - 35 of this Act may 29 receive credit for employment with a political subdivision or public organization before the 30 political subdivision or organization became an employer under the public employees' 31 retirement system. The member may not receive credit for those years under this section for 01 purposes of determining benefits. If a provision of this section is inconsistent with any other 02 provision of law, the provision of this section governs. 03 * Sec. 28. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR 04 OF COURT. (a) The chief justice of the state supreme court may adopt a retirement 05 incentive plan for an administrative director of the Alaska Court System who is a member of 06 the judicial retirement system under AS 22.25.012 if participation in the plan will result in 07 savings to the court system in personal services costs within three years after commencement 08 of the plan. The administrative director may participate only if the administrative director is 09 vested in the judicial retirement system and will be qualified to retire under AS 22.25.010 10 after receipt of the retirement incentive. To participate, the administrative director shall apply 11 to the commissioner of administration to participate in the approved court system plan. 12 (b) The court system shall include in the retirement incentive plan a reimbursement 13 agreement that requires the court system, for each administrative director of the Alaska Court 14 System who is retired under the plan, to reimburse the judicial retirement system within three 15 years after the end of the fiscal year in which the administrative director is appointed to 16 retirement in an amount equal to 17 (1) the actuarial equivalent of the difference between the benefits the 18 administrative director receives after the addition of the credit under (e) of this section and 19 the amount the participant would have received without the credit, less the total of the amount 20 the participant has paid on the indebtedness determined under (d) of this section; and 21 (2) an appropriate share of the administrative costs of the program. 22 (c) A retirement incentive plan adopted under this section must provide that 23 contributions from the court system under (b) of this section take priority over other 24 obligations of the court system under (b) of this section to the maximum extent permitted by 25 law. 26 (d) An administrative director of the Alaska Court System who participates in an 27 approved retirement incentive plan is indebted to the system. The amount of indebtedness is 28 equal to 21 percent of the director's actual annual compensation for the year in which the 29 director terminates employment to participate in the program, or the calculated annual 30 compensation for an administrative director who works fewer than 12 months. An outstanding 31 indebtedness at the time the administrative director is appointed to retirement under an 01 approved retirement incentive plan will require an actuarial adjustment to the benefits payable 02 to the director. 03 (e) An administrative director of the Alaska Court System who participates in an 04 approved retirement incentive plan receives a credit of three years that may only be used to 05 meet the age requirements for normal or early retirement under AS 22.25.010(d). 06 (f) The chief justice of the Alaska Supreme Court may adopt and file with the 07 commissioner of administration for approval, a proposed retirement incentive plan for the 08 administrative director of the court system who is a member of the judicial retirement system. 09 Upon the request of the chief justice, the commissioner of administration shall establish a 10 period during which an administrative director eligible to participate in the retirement incentive 11 plan of the court system may apply to the commissioner of administration to participate in the 12 court system's approved plan. The period shall begin no earlier than July 1, 1996, and end 13 no later than June 30, 1999. The period shall be no less than 30 days and no more than 60 14 days in duration and may not begin less than 30 days after establishment. The chief justice 15 is not required to request an application period. 16 (g) The commissioner of administration may not accept the application of an 17 administrative director of the court system to participate in an approved retirement incentive 18 plan adopted under this section unless the administrative director will be appointed to 19 retirement not later than the first day of the month that is six months after the last day of the 20 application period established by the commissioner under (f) of this section. The chief justice, 21 in a plan adopted under this section, may set an earlier date by which an administrative 22 director must be appointed to retirement in order to participate in the plan. 23 * Sec. 29. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency 24 owed by an employer other than the state under an agreement entered into under sec. 22(c)(2) 25 of this Act, the Department of Administration may 26 (1) direct that the amount of the delinquency or a lesser amount be withheld 27 from any money payable to the employer by a state department or agency and that the amount 28 withheld be credited to the delinquency; and 29 (2) bring action against the employer. 30 * Sec. 30. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. 31 (a) If an individual is reemployed as a member of the public employees' retirement system 01 under AS 39.35, the teachers' retirement system under AS 14.25, the judicial retirement system 02 under AS 22.25, or the optional university retirement program under AS 14.40.661 - 14.40.799 03 after appointment to retirement under secs. 22 - 35 of this Act, that individual forfeits the 04 incentive credit received under secs. 22 - 35 of this Act and is indebted to the system under 05 which the individual took retirement. The indebtedness is 150 percent of the amount the 06 individual received as a result of participation in a retirement incentive plan under secs. 22 - 07 35 of this Act and to which the individual would not otherwise have been entitled, including 08 the cost of health insurance. The amount that the individual has paid under sec. 22(d) or (e) 09 of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the 10 reemployment indebtedness accrues from the date of reemployment until the date that the 11 individual either is appointed to retirement and accepts an actuarial adjustment to the 12 individual's future benefits or repays the indebtedness in full. The rate of interest is that 13 established by regulation for the public employees' retirement system by the public employees' 14 retirement board and for the teachers' retirement system by the teachers' retirement board. 15 (b) An individual who was appointed to retirement under secs. 22 - 35 of this Act may 16 not be employed by, or enter into a contract for personal services with, a state agency or the 17 University of Alaska within the five years after the date of appointment to retirement, except 18 that 19 (1) the University of Alaska may enter into a personal services contract with 20 the individual for teaching or research that does not entitle the individual to receive retirement, 21 health, or leave benefits, except social security replacement if required by the Internal Revenue 22 Code; and 23 (2) the individual may accept employment with the legislature during a 24 legislative session if the employment is on an hourly basis and does not entitle the individual 25 to receive retirement, health, or leave benefits. 26 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the 27 University of Alaska may enter into a personal services contract with an individual who was 28 appointed to retirement under secs. 22 - 35 of this Act if the Board of Regents, for the 29 University of Alaska, or the commissioner of administration, for a state agency, determines 30 that there is a compelling reason to do so because of the individual's specialized or extensive 31 experience that relates to a particular program or project of the state agency or university. 01 However, a state agency may not enter into a contract with an individual under this subsection 02 if the individual was employed by the state agency at the time of the individual's appointment 03 to retirement. 04 * Sec. 31. LEGISLATIVE EMPLOYEE RETIREMENT INCENTIVE PLAN. (a) The 05 Legislative Council may adopt and file with the commissioner of administration a retirement 06 incentive plan for employees of the legislative branch of state government. The plan must 07 designate categories of employees eligible to participate in that plan, include a reimbursement 08 agreement for the cost of participation by employees in the plan, and require employees to 09 meet the eligibility criteria and pay the indebtedness amount under sec. 22 of this Act. The 10 Legislative Council may exercise the powers of an employer under sec. 22 of this Act, but a 11 plan adopted by the council is not subject to review by the office of management and budget 12 or approval of the commissioner of administration. 13 (b) The application periods established by the Legislative Council under the plan 14 during which the employees of a legislative agency who meet the requirements of sec. 22(b) 15 of this Act are eligible to participate in the retirement incentive plan shall begin no earlier 16 than June 30, 1996, and end no later than June 30, 1999. The application periods shall be no 17 less than 30 days and not more than 60 days in duration, and may not begin less than 30 days 18 after their establishment. The Legislative Council is not required to establish an application 19 period and may establish more than one application period. 20 (c) The commissioner of administration may not accept the application of an employee 21 to participate in the Legislative Council retirement incentive plan under this section unless the 22 employee will be appointed to retirement not later than the first day of the month that is six 23 months after the last day of the application period established by the Legislative Council under 24 this section. The Legislative Council may set an earlier date by which an employee must be 25 appointed to retirement in order to participate in the plan. 26 (d) The provisions of secs. 27, 29, 30, 33, and 35 of this Act apply to a plan adopted 27 under this section. 28 * Sec. 32. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an 29 employee category for participation in a retirement incentive plan under secs. 22 - 24 of this 30 Act, the executive head of the relevant state agency shall describe in detail the expected effect 31 of the plan or program on the agency's personal services cost and operation. This financial 01 report must be approved by the director of the office of management and budget before the 02 commissioner of administration may approve the proposed plan or program. The state agency 03 shall report each year to the office of management and budget on the cost of each employee's 04 participation and the effect on the agency's personal services cost and operation. 05 (b) The office of management and budget shall submit to the legislature annual reports 06 on the retirement incentive program under secs. 22 - 35 of this Act beginning January 15, 07 1998, and continuing through January 15, 2000, and shall submit a final report January 15, 08 2001. Each report must provide the information necessary for the legislature to evaluate the 09 effectiveness of the programs in achieving their objectives. The report must include 10 information on the designated employee categories under the incentive programs, the cost to 11 the state, the cost to the employee, the annual budgeted amount, by state agency, for the 12 incentives, the number of positions deleted or left vacant, and the projected or actual net 13 savings over the three-year period, and recommendations to the legislature for changes in 14 appropriations that reflect the cost and cost savings resulting from the retirement and 15 separation incentive programs. 16 * Sec. 33. PROGRAM CHANGES. (a) An individual employee does not have a vested 17 or contractual right to a benefit under secs. 22 - 35 of this Act until an agreement is executed 18 with the administrator that specifically authorizes that employee to participate in the retirement 19 incentive program under secs. 22 - 35 of this Act or until an agreement is executed with the 20 commissioner of administration to participate in the separation incentive program under secs. 21 22 - 35 of this Act. The legislature reserves the right to change any aspect of either incentive 22 program as it relates to employees for whom participation agreements have not yet been 23 executed with the administrator or with the commissioner of administration. 24 (b) In this section, "administrator" means the administrator of the public employees' 25 retirement system of employees who are members of that system, and the administrator of the 26 teachers' retirement system for employees who are members of that system. 27 * Sec. 34. REGULATIONS. The commissioner of administration may adopt regulations 28 under AS 44.62 (Administrative Procedure Act) to implement and interpret secs. 22 - 30 and 29 32 - 35 of this Act. 30 * Sec. 35. DEFINITIONS. (a) Unless otherwise provided in secs. 22 - 35 of this Act, the 31 definitions set out in AS 14.25.220 apply to provisions in secs. 23 - 31 of this Act that relate 01 to teachers' retirement system and members of the teachers' retirement system. 02 (b) Unless otherwise provided in secs. 22 - 35 of this Act, the definitions set out in 03 AS 39.35.680 apply to provisions in secs. 23 - 31 of this Act that relate to the public 04 employees' retirement system and members of the public employees' retirement system except 05 that "employer" does not include a school district. 06 (c) In secs. 22 - 35 of this Act, 07 (1) "office of management and budget" means the office of management and 08 budget in the Office of the Governor; 09 (2) "public employees' retirement system" means the Public Employees' 10 Retirement System of Alaska (AS 39.35); 11 (3) "state agency" 12  (A) means 13  (i) the judicial branch of state government; 14  (ii) a principal department of the executive branch of state 15 government; and independent state entity that is attached to a principal 16 department of the executive branch for administrative purposes but that is not 17 a public organization as defined in AS 39.35.680 is part of that department for 18 purposes of this clause; and 19  (iii) the Office of the Governor; 20  (B) does not include 21  (i) the University of Alaska; 22  (ii) a political subdivision of the state; or 23  (iii) a public organization as defined in AS 39.35.680; 24 (4) "teachers' retirement system" means the Teachers' Retirement System of 25 Alaska (AS 14.25). 26 * Sec. 36. SALARY ADJUSTMENTS FOR CERTAIN EXEMPT EMPLOYEES OF THE 27 EXECUTIVE BRANCH. Permanent and temporary employees of the executive branch who 28 are in the exempt service under AS 39.25, who are not members of a collective bargaining 29 unit established under the Public Employment Relations Act (AS 23.40), and who are not 30 otherwise covered by AS 39.27.011(a), are entitled to receive salary adjustments comparable 31 to those received by the classified and partially exempt employees of the executive branch 01 under AS 39.27.011(e) - (g), as enacted by sec. 11 of this Act. 02 * Sec. 37. SALARY INCREASES FOR CERTAIN EMPLOYEES OF THE UNIVERSITY 03 OF ALASKA. The employees of the University of Alaska who are not members of a 04 collective bargaining unit are entitled to receive salary increases in accordance with the 05 compensation policy of the Board of Regents of the University of Alaska. 06 * Sec. 38. SALARY ADJUSTMENTS FOR CERTAIN EMPLOYEES OF THE JUDICIAL 07 BRANCH. (a) Effective July 1, 1996, the permanent and temporary employees of the judicial 08 branch, other than justices and judges, who are not members of a collective bargaining unit, 09 are entitled to receive a one-time salary increase of 5.2 percent of the employee's base salary 10 as of June 30, 1996. 11 (b) On July 1, 1997, and July 1, 1998, permanent and temporary employees of the 12 judicial branch, other than justices and judges, who are not members of a collective bargaining 13 agreement unit are entitled to receive salary adjustments comparable to those received by the 14 classified and partially exempt employees of the executive branch under AS 39.27.011(f) - (g), 15 as enacted by sec. 11 of this Act. 16 * Sec. 39. SALARY INCREASES FOR JUDICIAL BRANCH EMPLOYEES. For the 17 fiscal year beginning July 1, 1996, and ending June 30, 1997, the temporary and permanent 18 employees of the judicial branch, other than justices and judges, who are not members of a 19 collective bargaining unit are entitled to receive a salary increase of 5.2 percent of the 20 employee's base salary as of June 30, 1996. 21 * Sec. 40. JUDGES AND JUSTICES. Notwithstanding AS 22.05.140(d), AS 22.07.090(c), 22 AS 22.10.190(d), and AS 22.15.220(e), and sec. 11 of this Act, justices and judges in the 23 judicial branch are not entitled to receive the increases provided by AS 22.05.140(d), 24 AS 22.07.090(c), AS 22.10.190(d), and AS 22.15.220(e) for the fiscal year beginning July 1, 25 1996, and ending June 30, 1997. 26 * Sec. 41. SALARY INCREASES FOR LEGISLATIVE BRANCH EMPLOYEES. 27 Employees of the legislative branch of state government who are not otherwise subject to 28 AS 39.27.011, other than legislators, are entitled to receive salary adjustments comparable to 29 those received by the classified and partially exempt employees of the executive branch under 30 AS 39.27.011(e) - (g), as enacted by sec. 11 of this Act. 31 * Sec. 42. APPROVAL OF MONETARY TERMS OF AGREEMENTS. (a) This section 01 (1) supersedes the provisions of any bill passed by the Second Session of the 02 Nineteenth Alaska State Legislature and enacted into law that disapproves the monetary terms 03 of the collective bargaining agreements listed in this section; 04 (2) satisfies the terms of any bill passed by the Second Session of the 05 Nineteenth Alaska State Legislature and enacted into law that imposes conditions on the 06 approval of the monetary terms of those agreements; and 07 (3) satisfies only those monetary terms funded in appropriation legislation 08 passed by the Nineteenth Alaska State Legislature. 09 (b) This section constitutes approval, subject to the conditions in (a) of this section, 10 of the monetary terms of the collective bargaining agreements entered into between the state 11 and the following collective bargaining organizations: 12 (1) Alaska State Employees Association, for the General Government Unit; 13 (2) Alaska Public Employees Association, for the Supervisory Unit; 14 (3) Public Employees Local 71, for the Labor, Trades and Crafts Unit; 15 (4) Inlandboatmen's Union of the Pacific, representing the unlicensed marine 16 unit; 17 (5) International Organization of Masters, Mates, and Pilots, Pacific Maritime 18 Region, for the Masters, Mates, and Pilots Unit; 19 (6) Public Safety Employees Association, representing state troopers and other 20 commissioned law enforcement personnel; 21 (7) the Classified Employees Association, representing University of Alaska 22 employees; 23 (8) the Alaska Community Colleges' Federation of Teachers, representing 24 faculty members of the University of Alaska; 25 (9) the Alyeska Correspondence School Education Association representing 26 teachers at the Alyeska Central School; 27 (10) Alaska Vocational Technical Center Teacher's Association representing 28 teachers at the Alaska Vocational Technical Center; and 29 (11) International Brotherhood of Electrical Workers representing nonjudicial, 30 nonsupervisory, classified employees of the Alaska Court System. 31 * Sec. 43. TRANSITION FOR STATE EMPLOYEE LEAVE PROVISIONS. For the 01 purpose of implementing secs. 9 and 10 of this Act, the beginning total cash value of an 02 officer's or employee's personal leave balance on the effective date of secs. 9 and 10 of this 03 Act is calculated by multiplying the officer's or employee's personal leave balance as of the 04 day before the effective date of secs. 9 and 10 of this Act by the officer's or employee's 05 annualized hourly rate of pay on the effective date of secs. 9 and 10 of this Act. 06 * Sec. 44. Nothing in this Act modifies or terminates the terms of a collective bargaining 07 agreement in effect on the effective date of this Act. 08 * Sec. 45. PROVISIONS NOT SEVERABLE. Notwithstanding AS 01.10.030, the 09 provisions of this Act are not severable. 10 * Sec. 46. Sections 22, 23, and 31 of this Act are repealed July 1, 2000. 11 * Sec. 47. Sections 24 - 26 of this Act are repealed December 31, 1999. 12 * Sec. 48. This Act takes effect July 1, 1996.