SB 118: "An Act permitting certain public health service officers to receive credited service in the public employees' retirement system."
00SENATE BILL NO. 118 01 "An Act permitting certain public health service officers to receive credited service 02 in the public employees' retirement system." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 39.35.340(a) is amended to read: 05 (a) A vested employee is entitled to credited service for active military service 06 in the armed forces of the United States, either by enlistment or induction, including 07 service as a commissioned officer of the Regular or Reserve Corps of the United 08 States Public Health Service, if the employee received a discharge under honorable 09 conditions and is not entitled to receive retirement benefits from the United States 10 government for the same service. The credited service allowed may not exceed an 11 aggregate period of five years. Benefits are not payable on credited service for 12 military service, including service with the United States Public Health Service, 13 unless the employee makes retroactive contributions to the system for the period of 14 time that service credit is claimed. However, if the employee was in the employ of
01 an employer on the date of entry into the armed forces, other than the United States 02 Public Health Service, and returned to the employ of an employer within 90 days 03 after the date of discharge from military service, the employee is not required to make 04 retroactive contributions under this system for the period of credited service. 05 * Sec. 2. AS 39.35.340(b) is amended to read: 06 (b) In order to obtain credited service under this section other than credited 07 service for service with the United States Public Health Service, an employee shall 08 make an election to do so and shall verify the period of military service. When 09 eligibility for credited service for military service has been established, an indebtedness 10 shall be determined as follows: (1) the employee's actual compensation, or the 11 calculated annual compensation for those employees working less than 12 months, 12 during the calendar year 1976 or the year in which an employee first becomes vested 13 under this chapter, whichever is later, multiplied by (2) the number of years of military 14 service credited under this section, and this product multiplied by (3) six percent for 15 members who are first eligible to claim this military service before January 1, 1987, 16 or eight and one-half percent for members who are first eligible to claim this military 17 service on or after January 1, 1987. Interest as prescribed by regulation accrues on 18 this indebtedness beginning on July 1, 1977, or one year following the date a person 19 first becomes vested, whichever is later. Any outstanding indebtedness that exists at 20 the time a person is appointed to retirement will necessitate an actuarial adjustment to 21 the benefits payable based upon that military service. 22 * Sec. 3. AS 39.35.340(c) is amended to read: 23 (c) A retired employee on July 1, 1976, is eligible to receive increased benefits 24 based upon military service, other than service with the United States Public Health 25 Service, as described in (a) of this section. To receive credited service for military 26 service, a retired employee must verify the military service. When verified, a retired 27 employee is entitled to receive an increased benefit that shall be actuarially adjusted 28 to reflect the employee's indebtedness for that credit. The indebtedness shall be 29 calculated in the same manner as described in (b) of this section except that it shall 30 be based on the average monthly compensation used in calculating the benefit. The 31 effective date of this increased benefit is the beginning of the month following that in
01 which eligibility has been established. 02 * Sec. 4. AS 39.35.340(e) is amended to read: 03 (e) A deferred vested employee on July 1, 1976, is eligible to claim credited 04 service, other than service with the United States Public Health Service, under (a) 05 of this section. In order to obtain credited service under this section, such an 06 employee must make an election to do so and must verify the period of military 07 service. When eligibility for military service has been established, an indebtedness 08 shall be determined as follows: the employee's actual compensation, or the calculated 09 annual compensation for those employees working less than 12 months, during the 10 calendar year the employee terminated, shall be multiplied by six percent; this product 11 shall then be multiplied by the number of years of military service credit under this 12 section. Interest as prescribed by regulation accrues on this indebtedness commencing 13 July 1, 1978. Any outstanding indebtedness that exists at the time a person is 14 appointed to retirement will necessitate an actuarial adjustment to the benefits payable 15 based upon that military service. 16 * Sec. 5. AS 39.35.340(f) is amended to read: 17 (f) An employee cannot be credited with a period of active military service in 18 the armed forces of the United States or with the United States Public Health 19 Service under this section if credit for that military service was granted under 20 AS 14.25. 21 * Sec. 6. AS 39.35.340(g) is amended to read: 22 (g) A surviving spouse receiving or entitled to receive benefits under 23 AS 39.35.420(b), 39.35.430, or 39.35.440 or benefits under a joint and survivor option 24 filed under AS 39.35.450 is eligible to receive increased benefits based on military 25 service, other than service with the United States Public Health Service, as 26 described in (a) of this section. To receive credited service for military service, the 27 surviving spouse must verify the employee's military service. When verified, the 28 surviving spouse is entitled to receive an increased benefit which shall be actuarially 29 adjusted to reflect the indebtedness for that credit. The indebtedness shall be calculated 30 in the same manner as described in (b) of this section except that it shall be based on 31 the average monthly compensation used in calculating the benefit. Benefits payable
01 under this subsection are effective the first day of the month following that in which 02 eligibility has been established. 03 * Sec. 7. AS 39.35.340(i) is amended to read: 04 (i) Credited service under (a) of this section includes service as a 05 (1) foreign service officer, a foreign service reserve officer, or a limited 06 foreign service reserve officer with the United States Department of State in Vietnam, 07 Cambodia, or Laos from August 4, 1964, through November 7, 1975; [AND] 08 (2) member of the United States Merchant Marine Service from 09 December 7, 1941, through September 30, 1945; and 10 (3) commissioned officer of the Regular or Reserve Corps of the 11 United States Public Health Service. 12 * Sec. 8. AS 39.35.340 is amended by adding a new subsection to read: 13 (j) In order to obtain credited service for service with the United States Public 14 Health Service under this section, an employee shall make an election to do so and 15 shall verify the period of service. When eligibility for credited service for public 16 health service has been established, an indebtedness shall be determined. The amount 17 of the indebtedness is the full actuarial cost of providing benefits for the service and 18 an administrative fee for the cost of processing the request for the credited service. 19 The administrator shall determine the amount of the administrative fee. Interest as 20 prescribed by regulation accrues on this indebtedness beginning on the effective date 21 of this Act or one year following the date a person first becomes vested, whichever is 22 later. Any outstanding indebtedness that exists at the time a person is appointed to 23 retirement will require an actuarial adjustment to the benefits payable based upon that 24 public health service.