00 CS FOR SENATE BILL NO. 55(FIN) 01 "An Act relating to supplemental employee benefits; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 39.30.150(a) is amended to read: 05 (a) Except as provided in (d) of this section, in [IN] place of contributions to 06 the federal social security system that would have been required on behalf of an 07 employee had the participating employer belonged to the social security system, the 08 participating employer shall contribute an amount equal to 6.13 percent of the wages 09 of the employee up to the taxable wage base then in effect in the social security 10 system. This contribution shall be paid into an individual employee annuity account in 11 the Department of Administration under the terms of the State of Alaska Supplemental 12 Annuity Plan. The department shall pay 6.13 percent of the wages of the employee up 13 to the taxable wage base then in effect in the social security system into the individual 14 employee annuity account established under this subsection. This wage reduction shall 01 be treated as an employer contribution under 26 U.S.C. 414(h)(2). All costs of 02 establishing and administering the programs established under AS 39.30.150 - 03 39.30.180 shall be paid from the contributions made to the individual employee 04 annuity accounts under this section. 05  * Sec. 2. AS 39.30.150 is amended by adding new subsections to read: 06 (d) Subject to (e) of this section, an employer who first becomes a 07 participating employer after June 30, 2029, and an employee of that employer, shall 08 each contribute under (a) of this section 09 (1) for the first 12-month period, an amount equal to one percent of the 10 wages of the employee up to the taxable wage base then in effect in the social security 11 system; 12 (2) for the second 12-month period, an amount equal to two percent of 13 the wages of the employee up to the taxable wage base then in effect in the social 14 security system; 15 (3) for the third 12-month period, an amount equal to three percent of 16 the wages of the employee up to the taxable wage base then in effect in the social 17 security system; 18 (4) for the fourth 12-month period, an amount equal to four percent of 19 the wages of the employee up to the taxable wage base then in effect in the social 20 security system; 21 (5) for the fifth 12-month period, an amount equal to five percent of 22 the wages of the employee up to the taxable wage base then in effect in the social 23 security system; and 24 (6) after the fifth 12-month period, the amount required under (a) of 25 this section. 26 (e) After June 30, 2029, an employee of a participating employer may 27 contribute under (a) of this section an amount that, when combined with an amount 28 required under (d)(1) - (5) of this section, does not exceed 6.13 percent of the wages of 29 the employee up to the taxable wage base then in effect in the social security system. 30  * Sec. 3. AS 39.30.170(a) is amended to read: 31 (a) An employer in either the teachers' retirement system (AS 14.25) or the  01 public employees' retirement system (AS 39.35) that does not participate in the  02 federal social security system shall  03 (1) [MAY] become a participating employer in the employee benefits 04 program under AS 39.30.150 - 39.30.180; or 05 (2) subject to (e) of this section, provide a different benefit  06 program supplemental to the retirement system that requires the employer and  07 each employee who is a member of the retirement system to contribute  08 (A) for the first 12-month period, an amount equal to one  09 percent of the wages of the employee up to the taxable wage base then in  10 effect in the social security system;  11 (B) for the second 12-month period, an amount equal to two  12 percent of the wages of the employee up to the taxable wage base then in  13 effect in the social security system;  14 (C) for the third 12-month period, an amount equal to three  15 percent of the wages of the employee up to the taxable wage base then in  16 effect in the social security system;  17 (D) for the fourth 12-month period, an amount equal to  18 four percent of the wages of the employee up to the taxable wage base then  19 in effect in the social security system;  20 (E) for the fifth 12-month period, an amount equal to five  21 percent of the wages of the employee up to the taxable wage base then in  22 effect in the social security system; and  23 (F) after the fifth 12-month period, an amount equal to 6.13  24 percent of the wages of the employee up to the taxable wage base then in  25 effect in the social security system [, IF  26 (1) THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN 27 THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND 28 (2) THE EMPLOYER 29 (A) IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS 30 NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL 31 SOCIAL SECURITY SYSTEM; OR 01 (B) WITHDRAWS FROM MEMBERSHIP IN THE 02 FEDERAL SOCIAL SECURITY SYSTEM]. 03  * Sec. 4. AS 39.30.170 is amended by adding a new subsection to read: 04 (e) An employee required to contribute to a benefit program established under 05 (a)(2) of this section may contribute to the benefit program an amount that, when 06 combined with an amount required under (a)(2) of this section, does not exceed 6.13 07 percent of the wages of the employee up to the taxable wage base then in effect in the 08 social security system. 09  * Sec. 5. AS 39.30.180(3) is amended to read: 10 (3) "participating employer" means 11 (A) the State of Alaska; [AND] 12 (B) an employer, other than the Board of Regents of the  13 University of Alaska, who 14 (i) [WHO] is an employer as defined in AS 14.25.220,  15 14.25.590, AS 39.35.680, or 39.35.990; and 16 (ii) does not participate [WHO HAS NEVER 17 PARTICIPATED IN OR HAS WITHDRAWN FROM 18 PARTICIPATION] in the federal social security system [; AND 19 (iii) WHOSE PARTICIPATION IN THE 20 SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN 21 APPROVED BY THE COMMISSIONER]. 22  * Sec. 6. This Act takes effect July 1, 2029.