00 SENATE BILL NO. 23 01 "An Act repealing the defined contribution retirement plans for teachers and for public 02 employees; providing a defined benefit retirement plan for teachers and public 03 employees; making conforming amendments; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 14.25.008 is repealed and reenacted to read: 06 Sec. 14.25.008. Definitions. In AS 14.25.001 - 14.25.008, 07 (1) "plan" means a retirement plan established under AS 14.25.009 - 08 14.25.220; 09 (2) "system" means the Teachers' Retirement System of Alaska. 10  * Sec. 2. AS 14.25.009 is repealed and reenacted to read: 11 Sec. 14.25.009. Defined benefit retirement plan under AS 14.25.009 -  12 14.25.220. AS 14.25.009 - 14.25.220 set out a defined benefit retirement plan as the 13 teachers' retirement plan. 14  * Sec. 3. AS 14.25.040(a) is amended to read: 01 (a) Unless a teacher or member participates in a university retirement program 02 under AS 14.40.661 - 14.40.799, has filed an election under AS 14.25.043(b), or has 03 elected under former AS 14.25.540 to participate in the plan established in former  04 provisions of AS 14.25.310 - 14.25.590, a teacher or member contracting for service 05 with a participating employer is subject to AS 14.25.009 - 14.25.220. 06  * Sec. 4. AS 14.25.070(b) is amended to read: 07 (b) The employer shall transmit the contributions calculated in (a) of this 08 section to the administrator in accordance with AS 14.25.065. The administrator shall 09 allocate contributions received for full payment of 10 (1) the actuarially determined employer normal cost for the plan; and 11 (2) all contributions required by former AS 14.25.350 and by 12 AS 39.30.370 for the fiscal year. 13  * Sec. 5. AS 14.25.070(d) is amended to read: 14 (d) Notwithstanding (a) of this section, the annual employer contribution rate 15 may not be less than the rate sufficient to allow payment of the employer normal cost 16 and the employer contributions required under former AS 14.25.350 and under 17 AS 39.30.370. 18  * Sec. 6. AS 14.25.143(a), as that subsection read following amendment by sec. 3, ch. 146, 19 SLA 1980, until amended by sec. 12, ch. 106, SLA 1988, as amended by sec. 18, ch. 9, 20 FSSLA 2005, is amended to read: 21 (a) When the board [ADMINISTRATOR] determines that the cost of living 22 has increased and that the financial condition of the retirement fund permits, the 23 administrator shall increase benefit payments to persons receiving benefits under this 24 plan. [FOR PURPOSES OF THIS SUBSECTION, THE FINANCIAL CONDITION 25 OF THE FUND WOULD ONLY PERMIT AN INCREASE IN BENEFITS WHEN 26 THE RATIO OF TOTAL FUND ASSETS TO THE ACCRUED LIABILITY MEETS 27 OR EXCEEDS 105 PERCENT. IN THIS SUBSECTION, "ACCRUED LIABILITY" 28 MEANS THE PRESENT VALUE OF ALL MEMBER BENEFITS ACCRUED BY 29 MEMBER SERVICE IN THIS PLAN.] 30  * Sec. 7. AS 14.25.143(a), as that subsection read following amendment by sec. 12, ch. 106, 31 SLA 1988, until amended by sec. 12, ch. 97, SLA 1990, as amended by sec. 19, ch. 9, FSSLA 01 2005, is amended to read: 02 (a) When the board [ADMINISTRATOR] determines that the cost of living 03 has increased and that the financial condition of the retirement fund permits, the 04 administrator shall increase benefit payments to persons receiving benefits under this 05 plan. [FOR PURPOSES OF THIS SUBSECTION, THE FINANCIAL CONDITION 06 OF THE FUND WOULD ONLY PERMIT AN INCREASE IN BENEFITS WHEN 07 THE RATIO OF TOTAL FUND ASSETS TO THE ACCRUED LIABILITY MEETS 08 OR EXCEEDS 105 PERCENT. IN THIS SUBSECTION, "ACCRUED LIABILITY" 09 MEANS THE PRESENT VALUE OF ALL MEMBER BENEFITS ACCRUED BY 10 MEMBER SERVICE IN THIS PLAN.] 11  * Sec. 8. AS 14.25.220(1) is amended to read: 12 (1) "active member" means a member who is employed by an 13 employer, is receiving compensation on a full-time or part-time basis and is making 14 contributions to the plan, or a member making contributions under former 15 AS 14.20.330 or 14.20.345; 16  * Sec. 9. AS 14.25.532 is amended to read: 17 Sec. 14.25.532. Pension forfeiture. The provisions of AS 37.10.310 apply to 18 pension benefits under former provisions of AS 14.25.310 - 14.25.590. 19  * Sec. 10. AS 14.40.671(e) is amended to read: 20 (e) An employee whose rights to transfer assets out of a state retirement 21 system are subject to a qualified domestic relations order is entitled to transfer assets 22 from the state retirement system to a university retirement program only if the 23 requirements for receiving a refund under AS 14.25.150(b), former AS 14.25.360 24 [14.25.360], AS 39.35.200(c), or former AS 39.35.760 [39.35.760], as appropriate, 25 are met. 26  * Sec. 11. AS 14.40.799(3) is amended to read: 27 (3) "contribution account" means the member contribution account 28 under AS 14.25.009 - 14.25.220, the individual account under former provisions of 29 AS 14.25.310 - 14.25.590, the employee contribution account under AS 39.35.095 - 30 39.35.680, or the individual account under former provisions of AS 39.35.700 - 31 39.35.990, whichever is appropriate; 01  * Sec. 12. AS 37.10.220(a) is amended to read: 02 (a) The board shall 03 (1) hold regular and special meetings at the call of the chair or of at 04 least five members; meetings are open to the public, and the board shall keep a full 05 record of all its proceedings; 06 (2) after reviewing recommendations from the Department of 07 Revenue, adopt investment policies for each of the funds entrusted to the board; 08 (3) determine the appropriate investment objectives for the defined 09 benefit plans established under the teachers' retirement system under AS 14.25 and the 10 public employees' retirement system under AS 39.35; 11 (4) assist in prescribing the policies for the proper operation of the 12 systems and take other actions necessary to carry out the intent and purpose of the 13 systems in accordance with AS 37.10.210 - 37.10.390; 14 (5) provide a range of investment options and establish the rules by 15 which participants can direct their investments among those options with respect to 16 accounts established under 17 (A) former AS 14.25.340 - 14.25.350 (teachers' retirement 18 system defined contribution individual accounts); 19 (B) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 20 Annuity Plan); 21 (C) former AS 39.35.730 - 39.35.750 (public employees' 22 retirement system defined contribution individual accounts); and 23 (D) AS 39.45.010 - 39.45.060 (public employees' deferred 24 compensation program); 25 (6) establish the rate of interest that shall be annually credited to each 26 member's individual contribution account in accordance with AS 14.25.145 and 27 AS 39.35.100 and the rate of interest that shall be annually credited to each member's 28 account in the health reimbursement arrangement plan under AS 39.30.300 - 29 39.30.495; the rate of interest shall be adopted on the basis of the probable effective 30 rate of interest on a long-term basis, and the rate may be changed from time to time; 31 (7) adopt a contribution surcharge as necessary under AS 39.35.160(c); 01 (8) coordinate with the retirement system administrator to have an 02 annual actuarial valuation of each retirement system prepared to determine system 03 assets, accrued liabilities, and funding ratios and to certify to the appropriate 04 budgetary authority of each employer in the system 05 (A) an appropriate contribution rate for normal costs; and 06 (B) an appropriate contribution rate for liquidating any past 07 service liability; 08 (9) review actuarial assumptions prepared and certified by a member 09 of the American Academy of Actuaries and conduct experience analyses of the 10 retirement systems not less than once every four years, except for health cost 11 assumptions, which shall be reviewed annually; the results of all actuarial assumptions 12 prepared under this paragraph shall be reviewed and certified by a second member of 13 the American Academy of Actuaries before presentation to the board; 14 (10) contract for an independent audit of the state's actuary not less 15 than once every four years; 16 (11) contract for an independent audit of the state's performance 17 consultant not less than once every four years; 18 (12) obtain an external performance review to evaluate the investment 19 policies of each fund entrusted to the board and report the results of the review to the 20 appropriate fund fiduciary; 21 (13) by the first day of each regular legislative session, report to the 22 governor, the legislature, and the individual employers participating in the state's 23 retirement systems on the financial condition of the systems in regard to 24 (A) the valuation of trust fund assets and liabilities; 25 (B) current investment policies adopted by the board; 26 (C) a summary of assets held in trust listed by the categories of 27 investment; 28 (D) the income and expenditures for the previous fiscal year; 29 (E) the return projections for the next calendar year; 30 (F) one-year, three-year, five-year, and 10-year investment 31 performance for each of the funds entrusted to the board; and 01 (G) other statistical data necessary for a proper understanding 02 of the financial status of the systems; 03 (14) submit quarterly updates of the investment performance reports to 04 the Legislative Budget and Audit Committee; [AND] 05 (15) develop an annual operating budget; and  06 (16) administer pension forfeitures required under AS 37.10.310 using 07 the procedures of AS 44.62 (Administrative Procedure Act). 08  * Sec. 13. AS 37.10.310(c) is amended to read: 09 (c) A state pension benefit under (a) of this section does not include 10 (1) insurance, voluntary wage reductions, involuntary wage reductions, 11 or supplemental or health benefits under AS 39.30.090 - 39.30.495 or former 12 AS 39.37.145; 13 (2) member or employee contributions under AS 14.25.050, 14.25.055, 14 14.25.075, former AS 14.25.340 [14.25.340], former AS 14.25.360(a) 15 [14.25.360(a)], AS 22.25.011, AS 39.35.160, 39.35.165(f), 39.35.180, former  16 AS 39.35.730 [39.35.730], former AS 39.35.760(a) [39.35.760(a)], or former 17 AS 39.37.070. 18  * Sec. 14. AS 37.10.390(4) is amended to read: 19 (4) "retirement systems" or "systems" means the teachers' retirement 20 system, the judicial retirement system, the Alaska National Guard and Alaska Naval 21 Militia retirement system, the public employees' retirement system, the former State 22 of Alaska Teachers' and Public Employees' Retiree Health Reimbursement 23 Arrangement Plan, and the elected public officers' retirement system under former 24 AS 39.37. 25  * Sec. 15. AS 39.30.090(a) is amended to read: 26 (a) The Department of Administration may obtain a policy or policies of group 27 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 28 former AS 14.25.480 [14.25.480], AS 22.25.090, AS 39.35.535, former  29 AS 39.35.880 [39.35.880], or former AS 39.37.145, employees of other participating 30 governmental units, or persons entitled to coverage under AS 23.15.136, subject to the 31 following conditions: 01 (1) A group insurance policy shall provide one or more of the 02 following benefits: life insurance, accidental death and dismemberment insurance, 03 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 04 dental expense insurance, audiovisual insurance, or other medical care insurance. 05 (2) Each eligible employee of the state, the spouse and the unmarried 06 children chiefly dependent on the eligible employee for support, and each eligible 07 employee of another participating governmental unit shall be covered by the group 08 policy, unless exempt under regulations adopted by the commissioner of 09 administration. 10 (3) A governmental unit may participate under a group policy if 11 (A) its governing body adopts a resolution authorizing 12 participation, and payment of required premiums; 13 (B) a certified copy of the resolution is filed with the 14 Department of Administration; and 15 (C) the commissioner of administration approves the 16 participation in writing. 17 (4) In procuring a policy of group health or group life insurance as 18 provided under this section or excess loss insurance as provided in AS 39.30.091, the 19 Department of Administration shall comply with the dual choice requirements of 20 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 21 transact business in the state under AS 21.09, a hospital or medical service corporation 22 authorized to transact business in this state under AS 21.87, or a health maintenance 23 organization authorized to operate in this state under AS 21.86. An excess loss 24 insurance policy may be obtained from a life or health insurer authorized to transact 25 business in this state under AS 21.09 or from a hospital or medical service corporation 26 authorized to transact business in this state under AS 21.87. 27 (5) The Department of Administration shall make available bid 28 specifications for desired insurance benefits or for administration of benefit claims and 29 payments to (A) all insurance carriers authorized to transact business in this state 30 under AS 21.09 and all hospital or medical service corporations authorized to transact 31 business under AS 21.87 who are qualified to provide the desired benefits; and (B) to 01 insurance carriers authorized to transact business in this state under AS 21.09, hospital 02 or medical service corporations authorized to transact business under AS 21.87, and 03 third-party administrators licensed to transact business in this state and qualified to 04 provide administrative services. The specifications shall be made available at least 05 once every five years. The lowest responsible bid submitted by an insurance carrier, 06 hospital or medical service corporation, or third-party administrator with adequate 07 servicing facilities shall govern selection of a carrier, hospital or medical service 08 corporation, or third-party administrator under this section or the selection of an 09 insurance carrier or a hospital or medical service corporation to provide excess loss 10 insurance as provided in AS 39.30.091. 11 (6) If the aggregate of dividends payable under the group insurance 12 policy exceeds the governmental unit's share of the premium, the excess shall be 13 applied by the governmental unit for the sole benefit of the employees. 14 (7) A person receiving benefits under AS 14.25.110, AS 22.25, 15 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 16 effect under this section at the time of termination of employment with the state or 17 participating governmental unit. 18 (8) A person electing to have insurance under (7) of this subsection 19 shall pay the cost of this insurance. 20 (9) For each permanent part-time employee electing coverage under 21 this section, the state shall contribute one-half the state contribution rate for permanent 22 full-time state employees, and the permanent part-time employee shall contribute the 23 other one-half. 24 (10) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 25 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 26 and eligible dependents under this section. The level of coverage for persons over 65 27 shall be the same as that available before reaching age 65 except that the benefits 28 payable shall be supplemental to any benefits provided under the federal old age, 29 survivors, and disability insurance program. A person electing to have insurance under 30 this paragraph shall pay the cost of the insurance. The commissioner of administration 31 shall adopt regulations implementing this paragraph. 01 (11) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 02 or former AS 39.37 may obtain long-term care insurance for that person and eligible 03 dependents under this section. A person who elects insurance under this paragraph 04 shall pay the cost of the insurance premium. The commissioner of administration shall 05 adopt regulations to implement this paragraph. 06 (12) Each licensee holding a current operating agreement for a vending 07 facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 08 applies to governmental units other than the state. 09  * Sec. 16. AS 39.30.097(b) is amended to read: 10 (b) The commissioner of administration is authorized to prefund medical 11 benefits provided by former AS 14.25.480, AS 39.30.300, and former AS 39.35.880 12 by establishing an irrevocable trust that is exempt from federal income tax under 26 13 U.S.C. 115 and subject to the applicable financial reporting, disclosure, and actuarial 14 requirements of the Governmental Accounting Standards Board. 15  * Sec. 17. AS 39.30.300 is amended to read: 16 Sec. 39.30.300. State of Alaska Teachers' and Public Employees' Retiree  17 Health Reimbursement Arrangement Plan established. The State of Alaska 18 Teachers' and Public Employees' Retiree Health Reimbursement Arrangement Plan is 19 established for teachers who first become members of the defined contribution plan of 20 the teachers' retirement system under former provisions of AS 14.25.310 - 14.25.590 21 on or after July 1, 2006, and employees of the state, political subdivisions of the state, 22 and public organizations of the state who first become members of the defined 23 contribution plan of the public employees' retirement system under former provisions  24 of AS 39.35.700 - 39.35.990 on or after July 1, 2006. 25  * Sec. 18. AS 39.30.380 is amended to read: 26 Sec. 39.30.380. Termination of employment. A person who terminates 27 employment before meeting the eligibility requirements of former AS 14.25.470 or 28 former AS 39.35.870 loses any right to the contributions made on behalf of the person 29 to the teachers' and public employees' retiree health reimbursement arrangement trust 30 fund. If a person returns to employment with a participating employer by 31 December 31 of the year in which the person reaches 65 years of age, the person's 01 account balance shall be restored in the amount recorded on the date of termination 02 from the trust, adjusted for inflation at the rate of the Consumer Price Index for 03 Anchorage, Alaska. The earlier period of employment with a participating employer 04 shall be credited toward eligibility for medical benefits. 05  * Sec. 19. AS 39.30.390 is amended to read: 06 Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the 07 eligibility requirements of former AS 14.25.470 and former AS 39.35.870 are 08 eligible for reimbursements from the individual account established for a member 09 under the plan, except members do not have to retire directly from the system. A 10 person who is the dependent child of an eligible member is eligible for 11 reimbursements if the eligible member and surviving spouse have both died so long as 12 the person meets the definition of dependent child. 13  * Sec. 20. AS 39.30.400 is amended to read: 14 Sec. 39.30.400. Benefits payable from the individual account. (a) The 15 administrator may deduct the cost of monthly premiums from the individual account 16 for retiree major medical insurance on behalf of an eligible person who elected retiree 17 major medical insurance under former AS 14.25.480 or former AS 39.35.880. 18 (b) Upon application of an eligible person, the administrator shall reimburse to 19 the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d). 20 Reimbursement is limited to the medical expenses of 21 (1) an eligible member, the spouse of an eligible member, and the 22 dependent children of an eligible member; or 23 (2) a surviving spouse and the dependent children of an eligible 24 member dependent on the surviving spouse. 25 (c) When the member's individual account balance is exhausted, the insurance 26 premium deductions under (a) of this section and the reimbursement of medical care 27 expenses under (b) of this section end. 28 (d) If all eligible persons die before exhausting the member's individual 29 account, the account balance shall revert to the plan. 30  * Sec. 21. AS 39.30.495(3) is amended to read: 31 (3) "compensation" has the meaning given in former AS 14.25.590; 01  * Sec. 22. AS 39.30.495(5) is amended to read: 02 (5) "eligible person" means a person who meets the eligibility 03 requirements of former AS 14.25.470 or former AS 39.35.870; 04  * Sec. 23. AS 39.30.495(6) is amended to read: 05 (6) "employer" has the meaning given in former AS 14.25.590 for 06 employers of teachers in the defined contribution plan established in former  07 provisions of AS 14.25.310 - 14.25.590 and has the meaning given in former 08 AS 39.35.990 for employers of public employees in the defined contribution plan 09 established in former provisions of AS 39.35.700 - 39.35.990; 10  * Sec. 24. AS 39.30.495(9) is amended to read: 11 (9) "member" means a member of the defined contribution plan of the 12 teachers' retirement system in former provisions of AS 14.25.310 - 14.25.590 or a 13 member of the public employees' retirement system in former provisions of 14 AS 39.35.700 - 39.35.990; 15  * Sec. 25. AS 39.35.008(2) is repealed and reenacted to read: 16 (2) "plan" means a retirement plan established under AS 39.35.095 - 17 39.35.680; 18  * Sec. 26. AS 39.35.008(3) is repealed and reenacted to read: 19 (3) "system" means the Public Employees' Retirement System of 20 Alaska. 21  * Sec. 27. AS 39.35.095 is repealed and reenacted to read: 22 Sec. 39.35.095. Defined benefit retirement plan under AS 39.35.095 -  23 39.35.680. AS 39.35.095 - 39.35.680 set out a defined benefit retirement plan as the 24 public employees' retirement plan. 25  * Sec. 28. AS 39.35.255(b) is amended to read: 26 (b) The administrator shall allocate contributions received for full payment of 27 (1) the actuarially determined employer normal cost for the plan; and 28 (2) all contributions required by AS 39.30.370 and former 29 AS 39.35.750 for the fiscal year. 30  * Sec. 29. AS 39.35.255(d) is amended to read: 31 (d) Notwithstanding (a) of this section, the annual employer contribution rate 01 may not be less than the rate sufficient to allow payment of the employer normal cost 02 and the employer contributions required under AS 39.30.370 and former 03 AS 39.35.750. 04 * Sec. 30. AS 39.35.475(a), as that subsection read following amendment by sec. 34, ch. 05 146, SLA 1980, until amended by sec. 41, ch. 82, SLA 1986, as amended by sec. 112, ch. 9, 06 FSSLA 2005, is amended to read: 07 (a) When the board [ADMINISTRATOR] determines that the cost of living 08 has increased and that the financial condition of the retirement fund permits, the 09 administrator shall increase benefit payments to persons receiving benefits under this 10 plan. [FOR PURPOSES OF THIS SUBSECTION, THE FINANCIAL CONDITION 11 OF THE FUND WOULD ONLY PERMIT AN INCREASE IN BENEFITS WHEN 12 THE RATIO OF TOTAL FUND ASSETS TO THE ACCRUED LIABILITY MEETS 13 OR EXCEEDS 105 PERCENT. IN THIS SUBSECTION, "ACCRUED LIABILITY" 14 MEANS THE PRESENT VALUE OF ALL MEMBER BENEFITS ACCRUED BY 15 MEMBER SERVICE IN THIS PLAN.] 16  * Sec. 31. AS 39.35.620(k) is amended to read: 17 (k) Termination of an employer's participation in the plan does not bar future 18 participation in the system by that employer if the employer is current with payments 19 on amounts due under AS 39.35.625. [IF A PREVIOUSLY TERMINATED 20 EMPLOYER RETURNS TO THE SYSTEM, THE EMPLOYER MAY ONLY 21 PARTICIPATE IN THE PLAN ESTABLISHED UNDER AS 39.35.700 - 39.35.990. 22 EMPLOYEES MAY BE CREDITED UNDER AS 39.35.700 - 39.35.990 ONLY 23 WITH SERVICE SUBSEQUENT TO THE DATE OF RETURN.] 24  * Sec. 32. AS 39.35.932 is amended to read: 25 Sec. 39.35.932. Pension forfeiture. The provisions of AS 37.10.310 apply to 26 pension benefits under former provisions of AS 39.35.700 - 39.35.990. 27  * Sec. 33. AS 14.25.012(c), 14.25.310, 14.25.320, 14.25.330, 14.25.340, 14.25.345, 28 14.25.350, 14.25.360, 14.25.370, 14.25.380, 14.25.390, 14.25.400, 14.25.410, 14.25.420, 29 14.25.430, 14.25.440, 14.25.450, 14.25.460, 14.25.470, 14.25.480, 14.25.485, 14.25.486, 30 14.25.487, 14.25.488, 14.25.489, 14.25.490, 14.25.500, 14.25.510, 14.25.520, 14.25.530, 31 14.25.540, 14.25.550, 14.25.560, 14.25.580, 14.25.582, 14.25.590; AS 39.35.700, 39.35.710, 01 39.35.720, 39.35.725, 39.35.730, 39.35.740, 39.35.750, 39.35.760, 39.35.770, 39.35.780, 02 39.35.790, 39.35.800, 39.35.810, 39.35.820, 39.35.830, 39.35.840, 39.35.850, 39.35.860, 03 39.35.870, 39.35.880, 39.35.890, 39.35.891, 39.35.892, 39.35.893, 39.35.894, 39.35.895, 04 39.35.900, 39.35.910, 39.35.920, 39.35.930, 39.35.940, 39.35.950, 39.35.955, 39.35.957, 05 39.35.958, 39.35.960, 39.35.965, 39.35.970, 39.35.972, and 39.35.990 are repealed. 06  * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 RETIREMENT PLAN ELECTION OPTION. (a) A teacher who was hired on or after 09 July 1, 2006, and before the effective date of this section and who is a member of the defined 10 contribution plan of the teachers' retirement system under former provisions of AS 14.25.310 11 - 14.25.590 may make a one-time election before September 1, 2009, or within 90 days after 12 the effective date of this section, whichever is later, to participate in the defined benefit 13 retirement plan under AS 14.25.009 - 14.25.220 and to transfer any contributions, including 14 employer contributions, made to the defined contribution plan before that date. 15 (b) A public employee who was hired on or after July 1, 2006, and before the 16 effective date of this section and who is a member of the defined contribution plan of the 17 public employees' retirement system under former provisions of AS 39.35.700 - 39.35.990 18 may make a one time election before September 1, 2009, or within 90 days after the effective 19 date of this section, whichever is later, to participate in the defined benefit retirement plan 20 under AS 39.35.095 - 39.35.680 and to transfer any contributions, including employer 21 contributions, made to the defined contribution plan before that date. 22 (c) In this section, "employer" has the meaning given in AS 14.25.590 or 23 AS 39.35.990, as applicable, as those sections read the day before the effective date of sec. 33 24 of this Act. 25  * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 RETIREMENT PLAN ELECTION PROCEDURE; REGULATIONS REQUIRED. 28 (a) The election to participate in the defined benefit retirement plan under sec. 34 of this Act 29 must be made in writing on forms and in the manner prescribed by the administrator. Before 30 accepting an election to participate in the defined benefit retirement plan, the administrator 31 shall provide the employee planning on making an election to participate in the defined 01 benefit retirement plan with information, including calculations to illustrate the effect of 02 moving the employee's retirement plan from the defined contribution retirement plan to the 03 defined benefit retirement plan as well as other information to clearly inform the employee of 04 the potential consequences of the employee's election. 05 (b) An election made under sec. 34 of this Act to participate in the defined benefit 06 retirement plan is irrevocable. On making the election, the participant shall be enrolled as a 07 member of the defined benefit retirement plan, the member's participation in the plan shall be 08 governed by the provisions for the defined benefit retirement plan, and the member's 09 participation in the defined contribution retirement plan shall terminate. The participant's 10 enrollment in the defined benefit retirement plan shall be effective the first day of the month 11 after the administrator receives the completed enrollment forms. An election made by an 12 eligible member who is married is not effective unless the election is signed by the 13 individual's spouse. 14 (c) As directed by the participant, the Alaska Retirement Management Board shall 15 transfer or cause to be transferred the appropriate amounts to the designated account. The 16 administrator shall credit the participant with a service credit that is equal to the participant's 17 actual service or the actuarially calculated value of the employer and employee contribution 18 transferred, whichever is less. The board shall establish transfer procedures by regulation, but 19 the actual transfer may not be later than 30 days after the effective date of the member's 20 participation in the defined benefit retirement plan unless the major financial markets for 21 securities available for a transfer are seriously disrupted by an unforeseen event that also 22 causes the suspension of trading on any national securities exchange in the country where the 23 securities were issued. In that event, the 30-day period of time may be extended by a 24 resolution of the board. Transfers are not commissionable or subject to other fees and may be 25 in the form of securities or cash as determined by the board. Securities shall be valued on the 26 date of receipt in the participant's account. 27 (d) In this section, 28 (1) "administrator" means the person appointed or designated by the 29 commissioner of administration under AS 39.35.050 for a public employees' retirement plan 30 and under AS 14.25.003 for a teachers' retirement plan; 31 (2) "board" means the Alaska Retirement Management Board established 01 under AS 37.10.210; 02 (3) "defined benefit retirement plan" means the retirement plan established 03 under 04 (A) AS 14.25.009 - 14.25.220 for a teacher; or 05 (B) AS 39.35.095 - 39.35.680 for a public employee; 06 (4) "defined contribution retirement plan" means the retirement plan 07 established under 08 (A) former provisions of AS 14.25.310 - 14.25.590 for a teacher; or 09 (B) former provisions of AS 39.35.700 - 39.35.990 for a public 10 employee. 11  * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 ADOPTION OF REGULATIONS. The commissioner of administration shall proceed 14 immediately to adopt regulations consistent with this Act, but in no event may the regulations 15 take effect before the effective date of sec. 34 of this Act. 16  * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 INSTRUCTION TO REVISOR OF STATUTES. The revisor of statutes shall submit 19 to the Alaska Legislative Council a draft bill making conforming amendments to the statutes 20 of the State of Alaska consistent with this Act to clarify that the teachers' retirement system 21 and the public employees' retirement system consist only of defined benefit plans. 22  * Sec. 38. Sections 35 and 36 of this Act take effect immediately under AS 01.10.070(c).