SB 187: "An Act relating to credited service and contributions of noncertificated employees of public schools in the public employees' retirement system."
00SENATE BILL NO. 187 01 "An Act relating to credited service and contributions of noncertificated employees 02 of public schools in the public employees' retirement system." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 39.35.160(a) is amended to read: 05 (a) Beginning January 1, 1987, each peace officer or fire fighter shall 06 contribute to the system an amount equal to seven and one-half percent of the peace 07 officer's or fire fighter's compensation. Except as provided in (c) of this section, 08 beginning [BEGINNING] January 1, 1987, each other employee shall contribute to the 09 system an amount equal to six and three-quarters percent of the employee's 10 compensation. The contributions shall be deducted by the employer at the end of each 11 payroll period. The contributions shall be deducted from employee compensation 12 before computation of applicable federal taxes, and the contributions shall be treated 13 as employer contributions under 26 U.S.C. 414(h)(2). 14 * Sec. 2. AS 39.35.160 is amended by adding a new subsection to read:
01 (c) A noncertificated employee of the state boarding school or of a school 02 district or regional educational attendance area who first joined the system on or after 03 the effective date of this Act, or who first joined the system before that date and who 04 elects to receive credited service under AS 39.35.300(d) or 39.35.310(d) shall 05 contribute to the system an amount equal to 7.35 percent of the employee's 06 compensation. 07 * Sec. 3. AS 39.35.300 is amended by adding new subsections to read: 08 (c) In calculating the credited service of a noncertificated employee of the state 09 boarding school who first joined the system on or after the effective date of this Act, 10 a year of service shall be determined using the formula set out in the definition of 11 "year of service" in AS 14.25.220. 12 (d) A noncertificated employee of the state boarding school who first joined 13 the system before January 1, 1993, may elect to have the employee's credited service 14 determined using the formula set out in the definition of "year of service" in 15 AS 14.25.220. The election must be made in writing, is irrevocable, takes effect on 16 the first day of the month following receipt of election by the administrator, and 17 applies to service earned on or after that date. An employee who makes this election 18 shall contribute to the system as provided in AS 39.35.160(c) and have average 19 monthly compensation for service earned on or after the effective date of the election 20 calculated as provided in AS 39.35.370(g). 21 * Sec. 4. AS 39.35.310 is amended by adding new subsections to read: 22 (c) In calculating the credited service of a noncertificated employee of a school 23 district or regional educational attendance area who first joined the system on or after 24 the effective date of this Act, a year of service shall be determined using the formula 25 set out in the definition of "year of service" in AS 14.25.220. 26 (d) A noncertificated employee of a school district or regional educational 27 attendance area who first joined the system before the effective date of this Act, may 28 elect to have the employee's credited service determined using the formula set out in 29 the definition of "year of service" in AS 14.25.220. The election must be made in 30 writing, is irrevocable, takes effect on the first day of the month following receipt of 31 election by the administrator, and applies to service earned on or after that date. An
01 employee who makes this election shall contribute to the system as provided in 02 AS 39.35.160(c) and have average monthly compensation for service earned on or after 03 the effective date of the election calculated as provided in AS 39.35.370(g). 04 * Sec. 5. AS 39.35.370 is amended by adding a new subsection to read: 05 (g) For an employee receiving credited service under AS 39.35.300(c) or (d) 06 or AS 39.35.310(c) or (d), the number of months used in determining average monthly 07 compensation, as set out in AS 39.35.680, shall be determined using the formula set 08 out in AS 14.25.220.