00 Enrolled HB 47                                                                                                          
01 Requiring certain municipalities with a population that decreased by more than 25 percent                               
02 between 2000 and 2010 that participate in the defined benefit retirement plan of the Public                             
03 Employees' Retirement System of Alaska to contribute to the system an amount calculated by                              
04 applying a rate of 22 percent of the total of all base salaries paid by the municipality to                             
05 employees of the municipality who are active members of the system during a payroll period;                             
06 authorizing the administrator of the defined benefit retirement plan of the Public Employees'                           
07 Retirement System of Alaska to reduce the rate of interest payable by certain municipalities                            
08 that are delinquent in transmitting employee and employer contributions to the retirement                               
09 plan; and providing for an effective date.                                                                              
10                           _______________                                                                               
11    * Section 1. AS 39.35.004 is amended by adding a new subsection to read:                                             
01            (d)  The administrator is authorized to determine the rate of interest assessed                              
02       under AS 39.35.610(c).                                                                                            
03    * Sec. 2. AS 39.35.255(a) is amended to read:                                                                        
04            (a)  Each employer shall contribute to the system every payroll period an                                    
05       amount calculated by applying a rate of 22 percent of the greater of the total of all base                        
06       salaries                                                                                                          
07                 (1)  paid by the employer to employees who are active members of the                                    
08       system, including any adjustments to contributions required by AS 39.35.520; or                                   
09                 (2)  paid by the employer to employees who were active members of                                       
10       the system during the corresponding payroll period for the fiscal year ending                                     
11                      (A)  June 30, 2008; or                                                                         
12 (B)  June 30, 2012, if that total is less than the total under                                                        
13 (A) of this paragraph, and the employer is a municipality in which the                                                
14 population decreased by more than 25 percent between 2000 and 2010,                                                   
15 according to the decennial census conducted by the United States Bureau                                               
16            of the Census.                                                                                             
17    * Sec. 3. AS 39.35.610(a) is amended to read:                                                                        
18 (a)  The contributions of an employer and the contributions of its employees                                            
19 shall be transmitted to the administrator as soon as practicable after the close of the                                 
20 payroll period for which the contributions are made. Subject to (c) of this section, if                               
21 [IF] an employer is delinquent in transferring the contributions for more than 15 days,                                 
22 interest shall be assessed on the outstanding contributions at one and one-half times                                   
23 the most recent actuarially determined rate of earnings for the retirement plan from the                                
24       date that the contributions were originally due.                                                                  
25    * Sec. 4. AS 39.35.610 is amended by adding a new subsection to read:                                                
26 (c)  If an employer delinquent in transferring a contribution is a municipality in                                      
27 which the population decreased by more than 25 percent between 2000 and 2010,                                           
28 according to the decennial census conducted by the United States Bureau of the                                          
29 Census, the administrator may assess interest on the outstanding contribution at a rate                                 
30       less than the rate required in (a) of this section.                                                               
31    * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).