00                       CS FOR HOUSE BILL NO. 210(FIN)                                                                    
01 "An Act relating to occupational disability benefits and medical benefits available under                               
02 the public employees' retirement system; and providing for an effective date."                                          
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 39.35.410(d) is amended to read:                                                                   
05            (d)  The monthly amount of an occupational disability benefit is 75 [40]                                 
06       percent of the disabled employee's gross monthly compensation at the time of                                      
07       termination due to disability.                                                                                  
08    * Sec. 2. AS 39.35.870 is amended by adding a new subsection to read:                                              
09            (h)  Notwithstanding (a) and (g) of this section, a disabled employee who is                                 
10       eligible to obtain a disability benefit under AS 39.35.890 is eligible to obtain retiree                          
11       major medical insurance benefits under AS 39.35.880.                                                              
12    * Sec. 3. AS 39.35.880(g) is amended to read:                                                                      
13            (g)  Except as provided under (l) of this section, the [THE] cost of                                   
14       premiums for retiree major medical insurance coverage for an eligible member or                                   
01       surviving spouse who is                                                                                           
02                 (1)  not eligible for Medicare is an amount equal to the full monthly                                   
03       group premiums for retiree major medical insurance coverage;                                                      
04                 (2)  eligible for Medicare is the following percentage of the premium                                   
05       amounts established for retirees who are eligible for Medicare:                                                   
06                      (A)  30 percent if the member had 10 or more, but less than 15,                                    
07            years of service;                                                                                            
08                      (B)  25 percent if the member had 15 or more, but less than 20,                                    
09            years of service;                                                                                            
10 (C)  20 percent if the member had 20 or more, but less than 25,                                                         
11            years of service;                                                                                            
12 (D)  15 percent if the member had 25 or more, but less than 30,                                                         
13            years of service;                                                                                            
14 (E)  10 percent if the member had 30 or more years of service.                                                          
15    * Sec. 4. AS 39.35.880 is amended by adding a new subsection to read:                                              
16 (l)  An eligible member or surviving spouse who receives a disability benefit as                                        
17 provided under AS 39.35.890 or 39.35.891 and is not eligible for Medicare is not                                        
18       required to pay a premium for retiree major medical insurance coverage.                                           
19    * Sec. 5. AS 39.35.890(d) is amended to read:                                                                      
20 (d)  The monthly amount of an occupational disability benefit is 75 [40]                                            
21 percent of the disabled employee's gross monthly compensation at the time of                                            
22 termination due to disability. Notwithstanding AS 39.35.790(b), at the time a member                                    
23 is appointed to disability, the member becomes fully vested in the employer                                             
24 contributions made under AS 39.35.750(a). A disabled member is fully vested in the                                      
25 contributions to the member's individual account made under this subsection. An                                         
26 employee is not entitled to elect distributions from the employee's individual                                          
27 contribution account under AS 39.35.810 while the employee is receiving disability                                      
28 benefits under this section. While an employee is receiving disability benefits, based                                  
29 on the disabled employee's gross monthly compensation at the time of termination due                                    
30       to disability, the employer shall make contributions                                                              
31 (1)  to the employee's individual account under AS 39.35.730 on behalf                                                  
01       of the employee, without deduction from the employee's disability payments; and                                   
02                 (2)  on behalf of the employee under AS 39.35.750.                                                      
03    * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).