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CSSB 148(RLS) Detail
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CSSB 148(RLS): "An Act relating to contributions and benefits in the teachers' retirement system and in the public employees' retirement system; relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; repealing a provision permitting the National Education Association to participate in the teachers' retirement system; and providing for an effective date."

00CS FOR SENATE BILL NO. 148(RLS) 01 "An Act relating to contributions and benefits in the teachers' retirement system 02 and in the public employees' retirement system; relating to retirement incentive 03 programs for the public employees' retirement system, the judicial retirement 04 system, and the teachers' retirement system; relating to separation incentives for 05 certain state employees; repealing a provision permitting the National Education 06 Association to participate in the teachers' retirement system; and providing for 07 an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 14.25.040(a) is amended to read: 10 (a) Unless a teacher or member has elected to participate in the optional 11 university retirement program under AS 14.40.661 - 14.40.799, a teacher or member 12 contracting for service with a participating employer is subject to this chapter. A 13 school board shall, by resolution, elect whether to participate in the reduction in 14 contributions and benefits enacted by this Act and shall inform the administrator

01 of its decision. For school boards in existence on January 31, 1996, the board 02 shall inform the administrator no later than February 1, 1996. A school board 03 that comes into existence after January 31, 1996, shall inform the administrator 04 whether it elects to be a participating or nonparticipating employer. A school 05 board that elects to participate in the reductions may not later revoke its 06 participation. 07 * Sec. 2. AS 14.25.050(a) is amended to read: 08 (a) A [BEGINNING JANUARY 1, 1991, EACH] teacher who is first hired 09 on or after March 31, 1996, by the Department of Education, the University of 10 Alaska, or a participating school district shall contribute to the system an amount 11 equal to 5.5 percent of the teacher's base salary accrued from July 1 to the 12 following June 30. A teacher who is first hired before March 31, 1996, or who 13 was hired by a nonparticipating school district on or after March 31, 1996, shall 14 contribute to the system an amount equal to 8.65 percent of the teacher's base salary 15 accrued from July 1 to the following June 30. The employer shall deduct the 16 contribution from the teacher's salary at the end of each payroll period. The 17 contributions shall be deducted from employee compensation before the computation 18 of applicable federal taxes and shall be treated as employer contributions under 26 19 U.S.C. 414(h)(2). 20 * Sec. 3. AS 14.25.070 is amended to read: 21 Sec. 14.25.070. CONTRIBUTIONS BY EMPLOYER. For employees first 22 hired before March 31, 1996, and for employees hired after that date by a 23 nonparticipating school district, an [AN] employer shall contribute to the system an 24 amount equal to the percentage, as certified by the administrator, of the sum total of 25 the base salaries of all those teachers that is required in addition to teacher 26 contributions to provide the benefits of this chapter for those teachers times the sum 27 total of the base salaries paid to those teachers by the employer. For teachers first 28 hired on or after March 31, 1996, by the Department of Education, the University 29 of Alaska, or a participating school district, the percentage that the employer shall 30 contribute shall be computed under this section with the data that applies to those 31 teachers.

01 * Sec. 4. AS 14.25.110(a) is amended to read: 02 (a) Subject to AS 14.25.167, a member is eligible for a normal retirement 03 benefit if the member was first hired 04 (1) [WAS FIRST HIRED] before July 1, 1975, has attained the age of 05 55 years, and has at least 15 years of credited service, the last five of which have been 06 membership service or is otherwise vested in the system; 07 (2) on or after July 1, 1975, and before March 31, 1996, or after 08 March 31, 1996, by a nonparticipating school district, has attained the age of 60 09 years, and has at least eight years of membership service; 10 (3) before March 31, 1996, or on or after that date by a 11 nonparticipating school district, has attained the age of 60 years, has at least five 12 years of membership service, and has at least three years of Alaska BIA service; 13 (4) on or after March 31, 1996, by the Department of Education, 14 the University of Alaska, or participating school district and 15 (A) has attained the age of 60 years and has at least five 16 years of membership service; or 17 (B) the sum of the member's age plus the member's years 18 of membership service equals or exceeds 85; 19 (5) before March 31, 1996, or on or after that date by a 20 nonparticipating school district and [(4)] has at least 25 years of credited service, 21 the last five of which have been membership service; 22 (6) before March 31, 1996, or on or after that date by a 23 nonparticipating school district and [(5)] has at least 20 years of membership 24 service; 25 (7) before March 31, 1996, or on or after that date by a 26 nonparticipating school district and [(6)] has at least 20 years of combined 27 membership service and Alaska BIA service, the last five of which have been 28 membership service; or 29 (8) before March 31, 1996, or on or after that date by a 30 nonparticipating school district and [(7)] has, for each of 20 school years, 31 (A) at least one-half year of membership service as a part-time

01 teacher; 02 (B) one full year of membership service as a full-time teacher; 03 or 04 (C) any combination of service qualified under this paragraph. 05 * Sec. 5. AS 14.25.110(d) is amended to read: 06 (d) The monthly amount of a retirement benefit for a member who has paid 07 the full amount of any indebtedness is one-twelfth of the member's average base salary 08 during any three school years of membership service multiplied for members first 09 hired 10 (1) before March 31, 1996, or on or after that date by a 11 nonparticipating school district by 12 (A) [(1)] two percent of the years of credited service earned 13 before June 30, 1990, including credited fractional years, and the years of 14 credited service through a total of 20 years; plus 15 (B) [(2)] two and one-half percent of the years of credited 16 service earned after June 30, 1990, that are more than 20 years of total credited 17 service; or 18 (2) on or after March 31, 1996, by the Department of Education, 19 the University of Alaska, or a participating school district by one and one-half 20 percent of the years of credited service. 21 * Sec. 6. AS 14.25.110(j) is amended to read: 22 (j) For teachers first hired before March 31, 1996, or on or after that date 23 by a nonparticipating school district, an [AN] actuarial adjustment must be made 24 to benefits payable under (d) of this section for early retirement. For teachers first 25 hired on or after March 31, 1996, by the Department of Education, the University 26 of Alaska, or a nonparticipating school district, the monthly amount of a 27 retirement benefit that would be due under (d) of this section shall be reduced by 28 multiplying one-half of one percent times the number of months, to the nearest 29 month, by which the retirement date of the teacher falls short of the date on 30 which the teacher reaches 60 years of age. 31 * Sec. 7. AS 14.25.143(a) is amended to read:

01 (a) Once each year, the administrator shall increase benefit payments to 02 (1) eligible disabled members; 03 (2) [, TO] persons age 60 or older receiving benefits under this system 04 in the preceding calendar year; 05 (3) members who were first hired before March 31, 1996, or on or 06 after that date by a nonparticipating school district [, AND TO PERSONS] who 07 have received benefits under this system for at least eight years and who are not 08 otherwise eligible for an increase under this section; and 09 (4) survivors of members described in (3) of this subsection when 10 the member and the survivor have together received benefits under this system 11 for at least eight years. 12 * Sec. 8. AS 14.25.143(b) is amended to read: 13 (b) The increase in benefit payments applies to total benefit payments except 14 for the cost-of-living allowance under AS 14.25.142. For members first hired on or 15 after March 31, 1996, by the Department of Education, the University of Alaska, 16 or a participating school district, the amount of the increase is the lesser of 50 17 percent of the increase in the cost-of-living in the preceding calendar year or six 18 percent. For members first hired before March 31, 1996, or on or after that date 19 by a nonparticipating school district, the [THE] amount of the increase is a 20 percentage of the current benefit equal to 21 (1) the lesser of 75 percent of the increase in the cost of living in the 22 preceding calendar year or nine percent, for recipients who on July 1 are at least 65 23 years old and for members receiving disability benefits; and 24 (2) the lesser of 50 percent of the increase in the cost of living in the 25 preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 26 less than 65 years old or for recipients who on July 1 are less than 60 years old but 27 who have received benefits from the system for at least eight years. 28 * Sec. 9. AS 14.25.167(a) is amended to read: 29 (a) Benefits payable under this section are in place of benefits payable under 30 AS 14.25.110, 14.25.125, 14.25.155, 14.25.157, 14.25.160, 14.25.162, or 14.25.164. 31 Upon filing an application for retirement with the administrator, or when a disabled

01 member becomes eligible for normal retirement under AS 14.25.130(e), the member 02 shall designate the person who is the member's spouse at the time of appointment to 03 retirement as the contingent beneficiary. However, if the designation of the spouse is 04 revoked under (c) of this section, the member may designate a dependent approved by 05 the administrator as the contingent beneficiary or may take normal or early retirement 06 under AS 14.25.110 or 14.25.125. The administrator shall pay benefits under the 07 option elected by the member. The member may elect an option that provides that 08 (1) the member is entitled to receive a reduced benefit payable for life, 09 and, after the member's death, the contingent beneficiary is entitled to receive 10 payments in the amount of 75 percent of the reduced benefit for life; 11 (2) the member is entitled to receive a reduced benefit payable for life, 12 and, after the member's death, the contingent beneficiary is entitled to receive 13 payments in the amount of 50 percent of the reduced benefit for life; or 14 (3) for members first hired before March 31, 1996, or on or after 15 that date by a nonparticipating school district, the member is entitled to receive a 16 reduced benefit payable during the joint lifetime of the member and the contingent 17 beneficiary, and, after the death of either the member or the contingent beneficiary, the 18 survivor is entitled to receive payments in the amount of 66-2/3 percent of the reduced 19 benefit for life. 20 * Sec. 10. AS 14.25.168(d) is amended to read: 21 (d) A benefit recipient may elect major medical insurance coverage in 22 accordance with regulations and under the following conditions: 23 (1) a person who is younger than 60 years of age must pay an amount 24 equal to the full monthly group premium for retiree major medical insurance coverage; 25 (2) a person who is at least 60 years of age but is younger than 65 26 years of age must pay an amount equal to one-half of the full monthly group premium 27 for retiree major medical insurance coverage; 28 (3) a disabled member or a person 65 years of age or older is not 29 required to make premium payments; 30 (4) a benefit recipient who was first hired on or after March 31, 31 1996, by the Department of Education, University of Alaska, or a participating

01 school district who is electing major medical insurance coverage for dependents 02 eligible under (a)(2) or (3) of this section shall pay the full cost of that insurance. 03 * Sec. 11. AS 14.25.220(42) is amended to read: 04 (42) "vested member" or "vested teacher" means an active member who 05 has completed either 06 (A) 15 years of service, the last five of which have been 07 membership service, for a member first hired before July 1, 1975; 08 (B) eight years of membership service if the member was first 09 hired before March 31, 1996, or on or after that date by a 10 nonparticipating school district; 11 (C) five years of membership and three years of BIA service if 12 the member was first hired before March 31, 1996, or on or after that date 13 by a nonparticipating school district; [OR] 14 (D) 12 school years of part-time membership service or 12 15 school years in each of which the member earned either part-time or full-time 16 membership service; or 17 (E) five years of membership service if the member was first 18 hired on or after March 31, 1996, by the Department of Education, 19 University of Alaska, or a participating school district; 20 * Sec. 12. AS 14.25.220 is amended by adding new paragraphs to read: 21 (44) "nonparticipating school district" means a school district that has 22 chosen under AS 14.25.040(a) not to participate in the amendments to this chapter and 23 AS 39.35 that reduce retirement contribution rates and benefits; 24 (45) "participating school district" means a school district that has 25 chosen under AS 14.25.040(a) to participate in the amendments to this chapter and 26 AS 39.35 that reduce retirement contribution rates and benefits. 27 * Sec. 13. AS 39.35.160(a) is amended to read: 28 (a) A [BEGINNING JANUARY 1, 1987, EACH] peace officer or fire fighter 29 who is first hired on or after March 31, 1996, other than an employee of a 30 nonparticipating employer, shall contribute to the system an amount equal to six 31 percent of the peace officer's or fire fighter's compensation. A peace officer or

01 fire fighter who is first hired before March 31, 1996, or who is an employee of a 02 nonparticipating employer, shall contribute to the system an amount equal to seven 03 and one-half percent of the peace officer's or fire fighter's compensation. Except for 04 employees of nonparticipating employers, each [BEGINNING JANUARY 1, 1987, 05 EACH] other employee who is first hired on or after March 31, 1996, shall 06 contribute to the system an amount equal to five and one-half percent of the 07 employee's compensation. Each other employee who is first hired before 08 March 31, 1996, or on or after that date by a nonparticipating employer shall 09 contribute to the system an amount equal to six and three-quarters percent of the 10 employee's compensation. The contributions shall be deducted by the employer at the 11 end of each payroll period. The contributions shall be deducted from employee 12 compensation before computation of applicable federal taxes, and the contributions 13 shall be treated as employer contributions under 26 U.S.C. 414(h)(2). 14 * Sec. 14. AS 39.35.250 is amended to read: 15 Sec. 39.35.250. CALCULATION OF EMPLOYER'S CONTRIBUTION RATE. 16 (a) An employer shall make contributions to the system in amounts determined in 17 accordance with this section. For the purposes of this section, the past service date for 18 each employer for employees first hired before March 31, 1996, and for employees 19 hired on or after that date by nonparticipating employers is the entry date of the 20 employer or December 31, 1972, whichever is later. The past service date for 21 employees first hired on or after March 31, 1996, other than employees of 22 nonparticipating employers, is the entry date of the employer or March 31, 1996, 23 whichever is later. After December 31, 1972, if amendments to this chapter are 24 enacted that substantially affect benefits accrued before the effective date of the 25 amendment, the past service date will be changed to December 31 of the year 26 immediately preceding that in which the amendment is enacted. The contribution rate 27 for employees first hired before March 31, 1996, and for employees hired on or 28 after that date by nonparticipating employers, is the sum of the consolidated 29 employer rate for those employees and the past service rate that applies to those 30 employees. The contribution rate for employees first hired on or after March 31, 31 1996, other than employees of nonparticipating employers, is the sum of the

01 consolidated employer rate for those employees and the past service rate that 02 applies to those employees. 03 (b) In (a) of this section, "consolidated employer rate" for employees first 04 hired before March 31, 1996, and for employees hired on or after that date by 05 nonparticipating employers means the percentage of compensation of all those active 06 employees in the system which, if paid over the period of their credited service after 07 the [THEIR] past service date of those employees and when combined with all 08 employee contributions from those employees, is sufficient to provide the benefits 09 earned after such past service dates. This percentage is uniformly determined for all 10 employers for employees first hired before March 31, 1996, and for employees 11 hired on or after that date by nonparticipating employers and is applicable to each 12 employer. The consolidated employer rate for employees first hired on or after 13 March 31, 1996, other than employees of nonparticipating employers, shall be 14 separately determined under this subsection with the data that applies to those 15 employees. 16 (c) In (a) of this section, "past service rate" for employees first hired before 17 March 31, 1996, and for employees hired on or after that date by 18 nonparticipating employers means the percentage of compensation of all those active 19 employees in the system necessary to provide the annual amount required to amortize 20 the unfunded obligations of the employer for benefits earned by those employees 21 before the employer's past service date over a period not to exceed 40 years. The 22 period of amortization begins at the past service date of each employer. The 23 percentage is separately determined for each employer. The past service rate for 24 employees first hired on or after March 31, 1996, and employees hired on or after 25 that date by nonparticipating employers shall be separately determined under this 26 subsection with the data that applies to those employees. 27 * Sec. 15. AS 39.35.370(a) is amended to read: 28 (a) Subject to AS 39.35.450, a terminated employee is eligible for a normal 29 retirement benefit 30 (1) at age 60 with at least five years credited service; [,] or 31 (2) with at least 20 years of credited service as a peace officer or fire

01 fighter for peace officers or fire fighters first hired before March 31, 1996, or 02 hired on or after that date by a nonparticipating employer; [, OR] 03 (3) with at least 25 years of credited service as a peace officer or 04 fire fighter for peace officers and fire fighters first hired on or after March 31, 05 1996, other than employees of nonparticipating employers; 06 (4) with at least 30 years of credited service for all other employees if 07 the employee was first hired before March 31, 1996, or if the employee was hired 08 on or after that date by a nonparticipating employer; or 09 (5) with a combination of age and years of credited service equal 10 to or greater than 85. 11 * Sec. 16. AS 39.35.370(b) is amended to read: 12 (b) Subject to AS 39.35.450, a terminated employee is eligible for an early 13 retirement benefit at age 55 with at least five years credited service. For employees 14 first hired before March 31, 1996, and for employees hired on or after that date 15 by nonparticipating employers, an [AN] actuarial adjustment must be made to 16 retirement benefits paid under this section for an early retirement benefit. For 17 employees first hired on or after March 31, 1996, other than employees of 18 nonparticipating employers, the monthly amount of a retirement benefit that 19 would be due under (c) of this section shall be reduced by multiplying one-half 20 of one percent times the number of months, to the nearest month, by which the 21 retirement date of the employee falls short of the date that the employee reaches 22 age 60. 23 * Sec. 17. AS 39.35.370(c) is amended to read: 24 (c) For employees first hired on or after March 31, 1996, other than for 25 employees of nonparticipating employers, the monthly amount of a retirement 26 benefit is one and one-half percent of the average monthly compensation times the 27 years of credited service. The monthly amount of a retirement benefit for a peace 28 officer or fire fighter first hired before March 31, 1996, and for a peace officer or 29 fire fighter hired on or after that date by a nonparticipating employer, is two 30 percent of the average monthly compensation times the years of credited service 31 through 10 years, plus two and one-half percent of the average monthly compensation

01 times the years of service over 10 years. For all other employees first hired before 02 March 31, 1996, and for other employees of nonparticipating employers first hired 03 on or after that date, it is 04 (1) two percent of the average monthly compensation times all years 05 of service before July 1, 1986, and for years of service through a total of 10 years; 06 plus 07 (2) two and one-quarter percent of the average monthly compensation 08 times all years of service after June 30, 1986, over 10 years of total service through 09 20 years; plus 10 (3) two and one-half percent of the average monthly compensation 11 times all years of service after June 30, 1986, over 20 years of total service. 12 * Sec. 18. AS 39.35.450(a) is amended to read: 13 (a) Benefits payable under this section are in place of benefits payable under 14 AS 39.35.370, 39.35.385, and 39.35.460. Upon filing an application with the 15 administrator or when a disabled employee first attains eligibility for normal retirement 16 under AS 39.35.400(f) or 39.35.410(h), the employee shall designate the person who 17 is the employee's spouse at the time of appointment to retirement as the contingent 18 beneficiary. However, if the designation of the spouse is revoked under (c) of this 19 section, the employee may designate a dependent approved by the administrator as the 20 contingent beneficiary or may take normal or early retirement under AS 39.35.370 or 21 39.35.385 or a level income option under AS 39.35.460. The administrator shall pay 22 benefits under the option elected by the employee. The employee may elect an option 23 that provides that 24 (1) the employee is entitled to receive a reduced benefit payable for 25 life, and, after the employee's death, the contingent beneficiary is entitled to payments 26 in the amount of 75 percent of the reduced benefit payable for life; 27 (2) the employee is entitled to receive a reduced benefit payable for 28 life, and, after the employee's death, the contingent beneficiary is entitled to receive 29 payments in the amount of 50 percent of the reduced benefit payable for life; 30 (3) for employees first hired before March 31, 1996, or hired on or 31 after that date by a nonparticipating employer, the employee is entitled to receive

01 a reduced benefit payable during the joint lifetime of the employee and the contingent 02 beneficiary, and, after the death of either the employee or the contingent beneficiary, 03 the survivor is entitled to receive payments in the amount of 66 2/3 percent of the 04 reduced benefit payable for life. 05 * Sec. 19. AS 39.35.460 is amended to read: 06 Sec. 39.35.460. LEVEL INCOME OPTION. For an employee first hired 07 before March 31, 1996, or hired on or after that date by a nonparticipating 08 employer, if [IF] the payment of a retirement pension begins before age 65, the 09 amount of pension payable before and after that age may be adjusted so that an 10 increased amount will be paid before the time that full social security benefits become 11 available and a reduced amount after that time, so that the employee may receive a 12 more level income for life. The aggregate value of all adjusted payments may not 13 exceed the actuarial equivalent of the value of the pension otherwise payable to the 14 employee. 15 * Sec. 20. AS 39.35.475(a) is amended to read: 16 (a) Once each year the administrator shall increase benefit payments to 17 (1) eligible disabled members; 18 (2) [, TO] persons age 60 or older receiving benefits under this system 19 in the preceding calendar year; 20 (3) members who were first hired before March 31, 1996, or who 21 were hired on or after that date by a nonparticipating employer [, AND TO 22 PERSONS] who have received benefits under this system for at least five years and 23 who are not otherwise eligible for an increase under this section; and 24 (4) survivors of members described in (3) of this subsection when 25 the member and the survivor have together received benefits under this system 26 for at least five years. 27 * Sec. 21. AS 39.35.475(b) is amended to read: 28 (b) The increase in benefit payments applies to total benefit payments except 29 for the cost-of-living allowance under AS 39.35.480. For members first hired on or 30 after March 31, 1996, other than employees of a nonparticipating employer, the 31 amount of the increase is a percentage of the current benefit equal to the lesser

01 of 50 percent of the increase in the cost of living in the preceding calendar year 02 or six percent. For members first hired before March 31, 1996, or hired on or 03 after that date by a nonparticipating employer, the [THE] amount of the increase 04 is a percentage of the current benefit equal to 05 (1) the lesser of 75 percent of the increase in the cost of living in the 06 preceding calendar year or nine percent, for recipients who on July 1 are at least 65 07 years old and for members receiving disability benefits; and 08 (2) the lesser of 50 percent of the increase in the cost of living in the 09 preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 10 less than 65 years old or for recipients who are less than 60 years old on July 1 but 11 who have received benefits from the system for at least five years. 12 * Sec. 22. AS 39.35.535(c) is amended to read: 13 (c) A benefit recipient may elect major medical insurance coverage in 14 accordance with regulations and under the following conditions: 15 (1) a person who is younger than 60 years of age must pay an amount 16 equal to the full monthly group premium for retiree major medical insurance coverage; 17 (2) a person who is at least 60 years of age but is younger than 65 18 years of age must pay an amount equal to one-half of the full monthly group premium 19 for retiree major medical insurance coverage; 20 (3) a disabled member or a person 65 years of age or older is not 21 required to make premium payments; 22 (4) a benefit recipient who is first hired on or after March 31, 1996, 23 other than a recipient receiving benefits through a nonparticipating employer, 24 who is electing major medical insurance coverage for dependents eligible under 25 (a)(2) and (3) of this section shall pay the full cost of that insurance. 26 * Sec. 23. AS 39.35 is amended by adding a new section to read: 27 Sec. 39.35.565. PARTICIPATION IN REDUCED CONTRIBUTIONS AND 28 BENEFITS. A political subdivision or public organization participating in the system 29 on January 31, 1996, shall, by resolution, elect whether to participate in the reduction 30 in contributions and benefits enacted by this Act and shall inform the administrator of 31 its decision no later than February 1, 1996. A political subdivision or public

01 organization that becomes an employer in the system on or after February 1, 1996, 02 shall inform the administrator whether it has elected to be a nonparticipating employer. 03 A political subdivision or public organization that is an employer in the system that 04 elects to participate in the reductions may not later decide to participate in the system 05 as it existed before amendment by this Act. 06 * Sec. 24. AS 39.35.680 is amended by adding a new paragraph to read: 07 (41) "nonparticipating employer" means a political subdivision or public 08 organization that is an employer under this system that has chosen under AS 39.35.565 09 not to participate in the amendments to this chapter enacted in this Act. 10 * Sec. 25. FINDINGS AND PURPOSE AS TO SECS. 25 - 39. The State of Alaska and 11 many local governments and school districts are facing the need to restructure their operations 12 and their work forces in order to reduce expenditures and balance budgets. Retirement and 13 separation incentives are management tools that have been used extensively by the private 14 sector, the federal government, and other state and local governments across the country. The 15 purpose of secs. 25 - 39 of this Act is to make these management tools temporarily available 16 to the state and to the municipalities and school districts of the state. Sections 25 - 39 of this 17 Act will enable these entities to be more efficient and cost-effective by eliminating certain 18 nonessential positions, and producing a net reduction in personnel costs. 19 * Sec. 26. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a 20 retirement incentive plan under secs. 27 - 30 of this Act, as appropriate, and designate 21 categories of employees eligible to participate in that plan. An employer need not extend the 22 incentive plan to all employees who would otherwise be eligible, but may choose to extend 23 the plan only to employees 24 (1) in specific budget or administrative components of the employer; 25 (2) in specific job classifications; 26 (3) in specific geographic locations; or 27 (4) on the basis of any combination of factors under (1) - (3) of this 28 subsection. 29 (b) An employee is eligible to participate in a retirement incentive plan under secs. 25 30 - 39 of this Act only if the 31 (1) employee is a vested member of the public employees' retirement system

01 or the teachers' retirement system; 02 (2) employee will be qualified to retire under AS 14.25.110 or AS 39.35.370 03 after receipt of the credit described in (f) of this section; 04 (3) savings to the employer in personal services costs for the employee's 05 position will exceed the costs to the employer for that position within three years after the 06 employee is appointed to retirement. 07 (c) An employer shall file its proposed retirement incentive plan with the 08 commissioner of administration. The commissioner shall approve the plan if the plan meets 09 the requirements of secs. 25 - 39 of this Act, except that the commissioner may approve a 10 state agency's retirement incentive plan only if the office of management and budget approves 11 the calculation of savings under (b)(3) of this section. A proposed plan filed under this 12 section must 13 (1) identify job classifications of employees, and specific budget or 14 administrative components, eligible to participate in the plan; 15 (2) include a reimbursement agreement that 16 (A) requires the employer, for each employee who retires under the 17 plan, to reimburse the appropriate retirement system, within three years after the end 18 of the fiscal year in which the employee is appointed to retirement, in an amount equal 19 to 20 (i) the actuarial equivalent of the difference between the benefits 21 the participant receives after the addition of the credit under (f) of this section 22 and the amount the participant would have received without the credit, less the 23 amount the participant has paid on the indebtedness determined under (d) or (e) 24 of this section; and 25 (ii) an appropriate share of the administrative costs of the 26 program; and 27 (B) provides that contributions from the employer under this section 28 take priority over other obligations of the employer to the maximum extent permitted 29 by law. 30 (d) A member of the teachers' retirement system who participates in an approved 31 retirement incentive plan under secs. 25 - 39 of this Act is indebted to that system for an

01 amount calculated under this subsection. The indebtedness is 25.95 percent of the member's 02 actual compensation for the school year in which the member terminates employment, or the 03 calculated school year compensation for a member who works less than the entire school year. 04 An outstanding indebtedness at the time a member is appointed to retirement under an 05 approved retirement incentive plan requires an actuarial adjustment to the benefits payable to 06 that member. 07 (e) A member of the public employees' retirement system who participates in an 08 approved retirement incentive plan under secs. 25 - 39 of this Act is indebted to that system 09 for an amount calculated under this subsection. The indebtedness is 22-1/2 percent for a 10 peace officer or fire fighter, and 20-1/4 percent for other members, of the member's actual 11 annual compensation for the year in which the member terminates employment, or the 12 calculated annual compensation for a member who works fewer than 12 months. An 13 outstanding indebtedness at the time a member is appointed to retirement under an approved 14 retirement incentive plan requires an actuarial adjustment to the benefits payable to that 15 member. 16 (f) An employee who participates in an approved retirement incentive plan under 17 secs. 25 - 39 of this Act receives a credit of three years. The three years must be applied in 18 the following order until exhausted: 19 (1) to meet the age or service required for eligibility for normal retirement 20 under AS 14.25.110 or AS 39.35.370, as appropriate; 21 (2) to meet the age required for early retirement under AS 14.25.110 or 22 AS 39.35.370, as appropriate; 23 (3) to reduce the actuarial adjustment required for early retirement under 24 AS 14.25.110 or AS 39.35.370, as appropriate; 25 (4) as years of credited service for calculating retirement benefits. 26 (g) In this section, 27 (1) "department" means 28 (A) a principal department of the executive branch of state government; 29 an independent state entity that is attached to a principal department of the executive 30 branch for administrative purposes but that is not a public organization as defined in 31 AS 39.35.680 is part of that department for purposes of this paragraph; and

01 (B) the Office of the Governor; 02 (2) "employer" 03 (A) for purposes of a retirement incentive plan under AS 14.25, means 04 the Board of Regents of the University, the Department of Education, or the Regional 05 Resource Center; and 06 (B) for purposes of a retirement incentive plan under AS 39.35, has the 07 meaning given in AS 39.35.680 and includes a department. 08 * Sec. 27. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. 09 (a) A state agency may adopt, and file with the commissioner of administration for approval, 10 a proposed retirement incentive plan for its employees as part of a permanent reduction in the 11 personal services costs in that section. 12 (b) Upon the request of a state agency, the commissioner of administration shall 13 establish one or more periods during which the employees of that state agency who are 14 eligible under sec. 26(b) of this Act to participate in a retirement incentive plan may apply to 15 the commissioner of administration to participate in the state agency's approved plan. The 16 periods shall begin no earlier than June 30, 1995, and end no later than June 30, 1998. The 17 periods shall be no less than 30 days and no more than 60 days in duration, and may not 18 begin less than 30 days after their establishment. A state agency is not required to request an 19 application period, and may request more than one application period. 20 (c) A proposed retirement incentive plan adopted under this section may not permit 21 an employee who is the governor, the lieutenant governor, or a commissioner, deputy 22 commissioner, or assistant commissioner of a principal department of the executive branch to 23 participate in the plan. 24 (d) A proposed retirement incentive plan adopted under this section may permit 25 participation only by an employee who is eligible to participate under sec. 26(b) of this Act 26 and who 27 (1) has been continuously employed by the state for at least one year before 28 the employee applies to participate in the state agency's approved plan; 29 (2) is a permanent seasonal employee who has been continuously employed 30 by the state in a permanent seasonal position during all of the time in the one year before the 31 employee's application to participate in which the position normally is filled;

01 (3) has a job sharing agreement with a state agency in which two or more 02 employees share a single position identified by a single position control number and in which 03 the employee who applies to participate in the plan was continuously employed by the agency 04 during the portion of the one year before the employee's application in which the employee 05 normally worked under the job sharing agreement; or 06 (4) meets a combination of the requirements of this subsection. 07 (e) The commissioner of administration may not accept the application of an employee 08 to participate in an approved retirement incentive plan adopted under this section unless the 09 employee will be appointed to retirement not later than the first day of the month that is six 10 months after the last day of the application period established by the commissioner under (b) 11 of this section. A state agency, in a plan adopted under this section, may set an earlier date 12 by which an employee must be appointed to retirement in order to participate in the plan. 13 (f) A state agency that has adopted a retirement incentive plan for its employees may 14 not appoint a person to fill a vacant position in a category of position that was included in the 15 plan until after March 31, 1996, unless 16 (1) the governor submits a notice to the Legislative Budget and Audit 17 Committee of the intended appointment to the position for the committee's review; 18 (2) 45 days elapse before the appointment to the vacancy is made unless the 19 committee earlier recommends that the agency appoint a person to fill the position; and 20 (3) if, within the 45 days, the committee recommends that the vacancy not be 21 filled, the governor reviews the request to fill the position and determines to authorize the 22 hiring, in which case the governor shall provide the committee with a statement of the reasons 23 for the authorization before the appointment to the position is made. 24 (g) In this section, "committee" means the Legislative Budget and Audit Committee. 25 * Sec. 28. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 26 THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska 27 may adopt, and file with the commissioner of administration for approval, a proposed 28 retirement incentive plan for university employees. 29 (b) Upon the request of the Board of Regents, the commissioner of administration 30 shall establish one or more periods during which the employees of the university who are 31 eligible under sec. 26(b) of this Act to participate in a retirement incentive plan may apply to

01 the commissioner of administration to participate in the university's approved plan. The 02 periods shall begin no earlier than June 30, 1995, and end no later than June 30, 1998. The 03 periods shall be no less than 30 days and no more than 60 days in duration, and may not 04 begin less than 30 days after their establishment. The Board of Regents is not required to 05 request an application period, and may request more than one application period. 06 (c) The commissioner of administration may not accept the application of an employee 07 to participate in an approved retirement incentive plan adopted under this section unless the 08 employee will be appointed to retirement not later than the first day of the month that is six 09 months after the last day of the application period established by the commissioner under (b) 10 of this section. The Board of Regents, in a plan adopted under this section, may set an earlier 11 date by which an employee of the University of Alaska must be appointed to retirement in 12 order to participate in the plan. 13 (d) A participant in the optional university retirement program under AS 14.40.661 - 14 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement 15 system may participate in a retirement incentive plan for that system if the participant meets 16 the other qualifications of secs. 25 - 39 of this Act. If a provision of this subsection is 17 inconsistent with another provision of law, the provision of this subsection governs. 18 * Sec. 29. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER 19 EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The 20 governing body of a political subdivision of the state or public organization that has elected 21 to participate in the public employees' retirement system under AS 39.35.550 - 39.35.650 may 22 adopt, and file with the commissioner of administration for approval, a proposed retirement 23 incentive plan for its employees. Upon the request of the governing body, the commissioner 24 of administration shall establish one or more periods during which the employees of a political 25 subdivision or public organization who are eligible to participate in a retirement incentive plan 26 may apply to the commissioner of administration to participate in the approved plan. The 27 periods shall begin no earlier than October 31, 1995, and end no later than October 31, 1998. 28 The periods shall be no less than 30 days and no more than 60 days in duration, and may not 29 begin less than 60 days after their establishment. The governing body is not required to 30 request an application period, and may request more than one application period. 31 (b) The commissioner of administration may not accept the application of an employee

01 to participate in an approved retirement incentive plan adopted under this section unless the 02 employee will be appointed to retirement not later than the first day of the month that is six 03 months after the last day of the application period established by the commissioner under (a) 04 of this section. The governing body of the political subdivision or public organization, in a 05 plan adopted under this section, may set an earlier date by which an employee must be 06 appointed to retirement in order to participate in the plan. 07 * Sec. 30. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF 08 REGIONAL RESOURCE CENTERS IN THE TEACHERS' RETIREMENT SYSTEM. (a) 09 A regional resource center that has employees who are members of the teachers' retirement 10 system may adopt, and file with the commissioner of administration for approval, a proposed 11 retirement incentive plan for its employees. A plan adopted under this section must provide 12 that the application period for participation in the retirement incentive plan is June 30, 1995, 13 through December 31, 1995. 14 (b) The commissioner of administration may not accept the application of an employee 15 to participate in an approved retirement incentive plan adopted under this section unless the 16 employee will be appointed to retirement on or before August 1, 1996. The regional resource 17 center, in a plan adopted under this section, may set an earlier date by which an employee 18 must be appointed to retirement in order to participate in the plan. 19 * Sec. 31. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. 20 For purposes of determining the years of service requirements for retirement under 21 AS 14.25.110 or AS 39.35.370, as appropriate, a vested member who is a state employee and 22 who applies to participate in a retirement incentive plan approved under secs. 25 - 39 of this 23 Act may receive credit for employment with a political subdivision or public organization 24 before the political subdivision or organization became an employer under the public 25 employees' retirement system. The member may not receive credit for those years under this 26 subsection for purposes of determining benefits. If a provision of this section is inconsistent 27 with any other provision of law, the provision of this section governs. 28 * Sec. 32. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency 29 owed by an employer other than the state under an agreement entered into under sec. 26(c)(2) 30 of this Act, the Department of Administration may 31 (1) direct that the amount of the delinquency or a lesser amount be withheld

01 from any money payable to the employer by a state department or agency and that the amount 02 withheld be credited to the delinquency; and 03 (2) bring an action against the employer. 04 * Sec. 33. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR 05 OF COURT. (a) The chief justice of the state supreme court may adopt a retirement 06 incentive plan for an administrative director of the Alaska Court System who is a member of 07 the judicial retirement system under AS 22.25.012 if participation in the plan will result in 08 savings to the court system in personal services costs within three years after the 09 commencement of the plan. The administrative director may participate only if the 10 administrative director is vested in the judicial retirement system and will be qualified to retire 11 under AS 22.25.010 after receipt of the retirement incentive. To participate, the administrative 12 director shall apply to the commissioner of administration to participate in the approved court 13 system plan. 14 (b) The court system shall include in the retirement incentive plan a reimbursement 15 agreement that requires the court system, for each administrative director of the Alaska Court 16 System who is retired under the plan, to reimburse the judicial retirement system within three 17 years after the end of the fiscal year in which the administrative director is appointed to 18 retirement in an amount equal to 19 (1) the actuarial equivalent of the difference between the benefits the 20 administrative director receives after the addition of the credit under (e) of this section and 21 the amount the participant would have received without the credit, less the total of the amount 22 the participant has paid on the indebtedness determined under (d) of this section; and 23 (2) an appropriate share of the administrative costs of the program. 24 (c) A retirement incentive plan adopted under this section must provide that 25 contributions from the court system under (b) of this section take priority over other 26 obligations of the court system to the maximum extent permitted by law. 27 (d) An administrative director of the Alaska Court System who participates in an 28 approved retirement incentive plan is indebted to the system. The amount of indebtedness is 29 equal to 21 percent of the director's actual annual compensation for the year in which the 30 director terminates employment to participate in the program, or the calculated annual 31 compensation for an administrative director who works fewer than 12 months. An outstanding

01 indebtedness at the time the administrative director is appointed to retirement under an 02 approved retirement incentive plan will require an actuarial adjustment to the benefits payable 03 to the director. 04 (e) An administrative director of the Alaska Court System who participates in an 05 approved retirement incentive plan receives a credit of three years that may only be used to 06 meet the age requirements for normal or early retirement under AS 22.25.010(d). 07 (f) The chief justice of the Alaska Court System may adopt, and file with the 08 commissioner of administration for approval, a proposed retirement incentive plan for the 09 administrative director of the court system who is a member of the judicial retirement system. 10 Upon the request of the chief justice, the commissioner of administration shall establish a 11 period during which an administrative director eligible to participate in the retirement incentive 12 plan of the court system may apply to the commissioner of administration to participate in the 13 court system's approved plan. The period shall begin no earlier than June 30, 1995, and end 14 no later than June 30, 1998. The period shall be no less than 30 days and no more than 60 15 days in duration and may not begin less than 30 days after establishment. The chief justice 16 is not required to request an application period. 17 (g) The commissioner of administration may not accept the application of an 18 administrative director of the court system to participate in an approved retirement incentive 19 plan adopted under this section unless the administrative director will be appointed to 20 retirement not later than the first day of the month that is six months after the last day of the 21 application period established by the commissioner under (f) of this section. The chief justice, 22 in a plan adopted under this section, may set an earlier date by which an administrative 23 director must be appointed to retirement in order to participate in the plan. 24 * Sec. 34. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. 25 (a) If an individual is reemployed as a member of the public employees' retirement system 26 under AS 39.35, the teachers' retirement system under AS 14.25, the judicial retirement system 27 under AS 22.25, or the optional university retirement program under AS 14.40.661 - 14.40.799 28 after appointment to retirement under secs. 25 - 39 of this Act, that individual forfeits the 29 incentive credit received under sec. 26(f) or 33(e) of this Act and is indebted to the system 30 under which the individual took retirement. The indebtedness is 110 percent of the amount 31 the individual received as a result of participation in a retirement incentive plan under secs. 25

01 - 39 of this Act and to which the individual would not otherwise have been entitled, including 02 the cost of health insurance. The amount that the individual has paid under sec. 26(d) or (e) 03 or sec. 33(d) of this Act will be applied as a credit toward the reemployment indebtedness. 04 Interest on the reemployment indebtedness accrues from the date of reemployment until the 05 date that the individual either is appointed to retirement and accepts an actuarial adjustment 06 to the individual's future benefits or repays the indebtedness in full. The rate of interest is that 07 established by regulation for the public employees' retirement system by the public employees' 08 retirement board and for the teachers' retirement system by the teachers' retirement board. 09 (b) An individual who was appointed to retirement under secs. 25 - 39 of this Act may 10 not be employed by, or enter into a contract for personal services with, a state agency or the 11 University of Alaska within the three years after the date of appointment to retirement, except 12 that 13 (1) the University of Alaska may enter into a personal services contract with 14 the individual for teaching or research that does not entitle the individual to receive retirement, 15 health, or leave benefits, except social security replacement if required by the Internal Revenue 16 Code; and 17 (2) the individual may accept employment with the legislature during a 18 legislative session if the employment is on an hourly basis and does not entitle the individual 19 to receive retirement, health, or leave benefits. 20 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the 21 University of Alaska may enter into a personal services contract with an individual who was 22 appointed to retirement under secs. 25 - 39 of this Act if the Board of Regents, for the 23 University of Alaska, or the commissioner of administration, for a state agency, determines 24 that there is a compelling reason to do so because of the individual's specialized or extensive 25 experience that relates to a particular program or project of the state agency or university. 26 However, a state agency may not enter into a contract with an individual under this subsection 27 if the individual was employed by that state agency at the time of the individual's appointment 28 to retirement. 29 * Sec. 35. SEPARATION INCENTIVE PROGRAM. (a) A state agency may, with the 30 approval of the director of the office of management and budget, establish a separation 31 incentive program for its employees. The program may be offered in combination with an

01 approved retirement incentive plan adopted under sec. 27 of this Act, or may be offered 02 separately from such a plan. A state agency need not extend an incentive program under this 03 section to all employees who would otherwise be eligible to participate, but may choose to 04 extend the program only to employees 05 (1) in specific budget or administrative components of the state agency; 06 (2) in specific job classifications; 07 (3) on the basis of any combination of factors under (1) and (2) of this 08 subsection. 09 (b) A separation incentive payment under this section shall be paid in a lump sum 10 after the employee's separation from state service, and shall be equal to the lesser of an 11 amount equaling six months of the employee's base salary, or $25,000. However, a state 12 agency or the office of management and budget may set a lower separation incentive payment 13 in the state agency's separation incentive program. 14 (c) Upon the request of a state agency, the commissioner of administration shall 15 establish one or more periods during which the employees of that state agency may apply to 16 the commissioner of administration to participate in the state agency's approved separation 17 incentive program. The periods shall begin no earlier than June 30, 1995, and end no later 18 than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in 19 duration, and may not begin less than 30 days after their establishment. A state agency is not 20 required to request an application period, and may request more than one application period. 21 If the commissioner of administration has established one or more application periods for a 22 state agency under sec. 27(b) of this Act, the application period or periods established under 23 this subsection must coincide with the period or periods established under sec. 27(b) of this 24 Act. 25 (d) A separation incentive program established under this section must provide that 26 a separation incentive payment to an employee may be made only if 27 (1) the employee is a permanent full-time or permanent full-time seasonal 28 employee with at least five years of service with the state; and 29 (2) the savings to the state agency in personal services costs for the position 30 occupied by that employee would exceed, in the three years after the employee separates, the 31 amount of the separation incentive payment.

01 (e) If an individual who received a separation incentive payment under this section 02 subsequently is reemployed by a state agency or the University of Alaska within the three 03 years after the date that the individual received the separation incentive payment, the 04 individual is liable to the state in an amount equal to 110 percent of the amount of the 05 separation incentive payment, plus interest at the rate prescribed by AS 45.45.010, 06 commencing on the date that the individual received the separation incentive payment. 07 (f) If an employee is eligible to participate in an approved retirement incentive plan 08 adopted under sec. 27 of this Act, 09 (1) a separation incentive payment to that employee may not exceed the 10 amount that the state agency would be obligated to pay to the appropriate retirement system, 11 notwithstanding (b) of this section; and 12 (2) the employee may participate in either the separation incentive program 13 under this section or the retirement incentive plan adopted under sec. 27 of this Act, but not 14 both. 15 (g) In this section, "base salary" means the monthly salary paid to an employee under 16 the applicable collective bargaining agreement, AS 39.27.011, or another applicable pay 17 schedule, and includes geographic differential; if an employee is paid on an hourly basis, the 18 employee's base salary is the employee's hourly rate, including geographic differential, 19 multiplied by the number of hours in the employee's regular work week, multiplied by 4.35. 20 * Sec. 36. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an 21 employee category for participation in a retirement incentive plan or a separation incentive 22 program under secs. 25 - 39 of this Act, the executive head of the relevant state agency shall 23 describe in detail the expected effect of the plan or program on the agency's personal services 24 cost and operation. This financial report must be approved by the director of the office of 25 management and budget before the commissioner of administration may approve the proposed 26 plan or program. The state agency shall report each year to the office of management and 27 budget on the cost of each employee's participation and the effect on the agency's personal 28 services cost and operation. 29 (b) The office of management and budget shall submit to the legislature annual reports 30 on the retirement incentive and separation incentive programs under secs. 25 - 39 of this Act 31 beginning January 15, 1997, and continuing through January 15, 1999, and shall submit a final

01 report January 15, 2000. Each report must provide the information necessary for the 02 legislature to evaluate the effectiveness of the programs in achieving their objectives. The 03 report must include information on the designated employee categories under the incentive 04 programs, including the cost of each incentive program per participant, the cost to the state, 05 the cost to the employee, the annual budgeted amount, by state agency, for the incentives, the 06 number of positions deleted or left vacant, and the projected or actual net savings over the 07 three-year period. 08 * Sec. 37. PROGRAM CHANGES. (a) An individual employee does not have a vested 09 or contractual right to a benefit under secs. 25 - 39 of this Act until an agreement is executed 10 with the administrator that specifically authorizes that employee to participate in the retirement 11 incentive program under secs. 25 - 39 of this Act or until an agreement is executed with the 12 commissioner of administration to participate in the separation incentive program under 13 secs. 25 - 39 of this Act. The legislature reserves the right to change any aspect of either 14 incentive program as it relates to employees for whom participation agreements have not yet 15 been executed with the administrator or with the commissioner of administration. 16 (b) In this section, "administrator" means the administrator of the public employees' 17 retirement system for employees who are members of that system, and the administrator of 18 the teachers' retirement system for employees who are members of that system. 19 * Sec. 38. REGULATIONS. The commissioner of the Department of Administration may 20 adopt regulations under AS 44.62 (Administrative Procedure Act) to implement and interpret 21 secs. 25 - 39 of this Act. 22 * Sec. 39. DEFINITIONS. (a) Unless provided otherwise in secs. 25 - 39 of this Act, the 23 definitions set out in AS 14.25.220 apply to provisions in secs. 26 - 34 of this Act that relate 24 to the teachers' retirement system and members of the teachers' retirement system except that 25 "employer" does not include a school district. 26 (b) Unless provided otherwise in secs. 25 - 39 of this Act, the definitions set out in 27 AS 39.35.680 apply to provisions in secs. 26 - 34 of this Act that relate to the public 28 employees' retirement system and members of the public employees' retirement system. 29 (c) Unless provided otherwise in this Act, the definition set out in AS 22.25.900 30 applies to provisions in secs. 33 and 34 that relate to the judicial retirement system and 31 members of the judicial retirement system.

01 (d) In secs. 25 - 39 of this Act, 02 (1) "judicial retirement system" means the retirement system established for 03 judges and justices in AS 22.25; 04 (2) "office of management and budget" means the office of management and 05 budget in the Office of the Governor; 06 (3) "public employees' retirement system" means the Public Employees' 07 Retirement System of Alaska (AS 39.35); 08 (4) "state agency" 09 (A) means 10 (i) the legislative branch of state government; 11 (ii) the judicial branch of state government; 12 (iii) a principal department of the executive branch of state 13 government; an independent state entity that is attached to a principal 14 department of the executive branch for administrative purposes but that is not 15 a public organization as defined in AS 39.35.680 is part of that department for 16 purposes of this clause; and 17 (iv) the Office of the Governor; 18 (B) does not include 19 (i) the University of Alaska; 20 (ii) a political subdivision of the state; or 21 (iii) a public organization as defined in AS 39.35.680; 22 (5) "teachers' retirement system" means the Teachers' Retirement System of 23 Alaska (AS 14.25). 24 * Sec. 40. AS 14.25.045 is repealed. 25 * Sec. 41. Sections 26, 27, and 35 of this Act are repealed July 1, 1999. 26 * Sec. 42. Sections 28 - 31 and 33 of this Act are repealed July 1, 1997. 27 * Sec. 43. Sections 25 - 39 of this Act take effect immediately under AS 01.10.070(c).