00 SENATE BILL NO. 245 01 "An Act relating to retirement contributions and benefits under the public employees' 02 retirement system of certain harbor officers." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 39.35.160(a) is amended to read: 05 (a) Beginning January 1, 1987, each peace officer or fire fighter shall 06 contribute to the system an amount equal to seven and one-half percent of the peace 07 officer's or fire fighter's compensation. Beginning January 1, 2005, each harbor  08 officer shall contribute to the system an amount equal to seven and one-half  09 percent of the harbor officer's compensation. Except as provided in (d) of this 10 section, beginning January 1, 1987, each other employee shall contribute to the system 11 an amount equal to six and three-quarters percent of the employee's compensation. 12 The contributions shall be deducted by the employer at the end of each payroll period. 13 The contributions shall be deducted from employee compensation before computation 14 of applicable federal taxes, and the contributions shall be treated as employer 01 contributions under 26 U.S.C. 414(h)(2). A member may not have the option of 02 making the payroll deduction directly instead of having the contribution picked up by 03 the employer. 04  * Sec. 2. AS 39.35.370(a) is amended to read: 05 (a) Subject to AS 39.35.450, a terminated employee is eligible for a normal 06 retirement benefit 07 (1) at age 60 with at least five years credited service; 08 (2) with at least 20 years of credited service as a peace office, [OR] 09 fire fighter, or harbor officer; or 10 (3) with at least 30 years of credited service for all other employees. 11  * Sec. 3. AS 39.35.370(c) is amended to read: 12 (c) The monthly amount of a retirement benefit for a peace officer, [OR] fire 13 fighter, or harbor officer is two percent of the average monthly compensation times 14 the years of credited service through 10 years, plus two and one-half percent of the 15 average monthly compensation times the years of service over 10 years. For all other 16 employees it is 17 (1) two percent of the average monthly compensation times all years of 18 service before July 1, 1986, and for years of service through a total of 10 years; plus 19 (2) two and one-quarter percent of the average monthly compensation 20 times all years of service after June 30, 1986, over 10 years of total service through 20 21 years; plus 22 (3) two and one-half percent of the average monthly compensation 23 times all years of service after June 30, 1986, over 20 years of total service. 24  * Sec. 4. AS 39.35.370(f) is amended to read: 25 (f) A member who is vested in the system as a peace officer, [OR] fire fighter,  26 or harbor officer at the time the member incurs a permanent disability of at least 33 27 1/3 per cent under workers' compensation and who (1) undergoes retraining because of 28 the disability; and (2) is subsequently employed with the state or other employer in a 29 position other than peace officer, [OR] fire fighter, or harbor officer is eligible for a 30 normal retirement benefit as a peace officer, [OR] fire fighter, or harbor officer under 31 (a) and (c) of this section upon completing 20 years of credited service. 01  * Sec. 5. AS 39.35.527 is amended to read: 02 Sec. 39.35.527. Election to terminate coverage as a peace officer, [OR] fire  03 fighter, or harbor officer. (a) Any active member may elect to irrevocably relinquish 04 hazardous duty [PEACE OFFICER OR FIRE FIGHTER] status with the system and 05 to retain all credited service as if it had been acquired as a member other than a peace 06 officer, [OR] fire fighter, or harbor officer. 07 (b) In order to relinquish hazardous duty [PEACE OFFICER OR FIRE 08 FIGHTER] status with the system, a person must be an active member and must file a 09 written request with the administrator by July 1, 1984, for active members who are  10 peace officers or fire fighters or within six months after employment as a peace 11 officer or fire fighter, or by July 1, 2005, or within six months after employment as  12 a harbor officer for active members who are harbor officers, whichever occurs 13 later. No person has more than one opportunity to exercise this option. 14 (c) As soon as possible after the relinquishment, the administrator shall refund 15 to a person who relinquishes hazardous duty [PEACE OFFICER OR FIRE 16 FIGHTER] status under this section a refund equal to the amount by which the 17 balance of the person's accumulated mandatory contributions plus interest exceeds the 18 balance that [WHICH] would exist if all service credit had been acquired as a member 19 other than a peace officer, [OR] fire fighter, or harbor officer. 20 (d) A written request to relinquish hazardous duty [PEACE OFFICER OR 21 FIRE FIGHTER] status is irrevocable upon filing with the administrator. 22  * Sec. 6. AS 39.35.527 is amended by adding a new subsection to read: 23 (e) In this section, "hazardous duty status" means status as a peace officer, fire 24 fighter, or harbor officer under this system. 25  * Sec. 7. AS 39.35.680 is amended by adding a new paragraph to read: 26 (41) "harbor officer" means an employee authorized to enforce boat 27 harbor laws within a boat harbor owned by a political subdivision of the state. 28  * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION. (a) An employee who was employed before January 1, 2005, but on 31 or after June 23, 1983, in a position that meets the definition of "harbor officer" enacted in 01 sec. 7 of this Act may convert the credited service for that position during that time to credited 02 service as a harbor officer as enacted by this Act by claiming the service as harbor officer 03 service before the member is appointed to retirement. When the member claims this credited 04 service as harbor officer service, an indebtedness of the member to the system shall be 05 established. The indebtedness is equal to (1) the contributions to the system that the 06 employee would have made if the service had counted as harbor officer service, less (2) the 07 contributions to the system that the employee actually made. Interest, as prescribed by 08 regulation, accrues on this indebtedness, as required by regulation. Any outstanding 09 indebtedness that exists at the time a person is appointed to retirement will require an actuarial 10 adjustment to the benefits payable based upon the service claimed under this subsection. 11 (b) In this section, "harbor officer service" means service that is eligible for enhanced 12 retirement benefits as established in this Act.