00HOUSE BILL NO. 254                                                                                                    
01 "An Act relating to the voluntary deduction of dues for membership in certain                                           
02 retiree organizations."                                                                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 39.35.500 is amended to read:                                                                     
05  Sec. 39.35.500.  Safeguard of employee funds held by the system.  Except                                            
06 as provided in AS 29.45.030(a)(1), employee contributions and other amounts held in                                     
07 the system are exempt from Alaska state and local taxes.   Except as provided in (b)                                   
08 of this section, amounts  [AMOUNTS] held on behalf of, or payable to, any employee                                     
09 or other person who is or may become eligible for benefits under the system are not                                     
10 subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or                                
11 charge of any kind, either voluntary or involuntary, before being received by the                                       
12 person entitled to the amount under the terms of the system.  An attempt to anticipate,                                 
13 alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of a right                             
14 to amounts held under the system is void.  However, an employee's right to receive                                      

01 benefits may be assigned                                                                                                
02   (1)  under a qualified domestic relations order; [OR]                                                                
03   (2)  to a trust or similar legal device that meets the requirements for a                                            
04 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4) ; or                                         
05   (3)  as provided in (b) of this section .                                                                           
06    * Sec. 2.  AS 39.35.500 is amended by adding a new subsection to read:                                             
07  (b)  A person receiving benefits under this chapter who intends to join or who                                        
08 belongs to a retirement organization may authorize the administrator to deduct from                                     
09 the person's benefits the amount of annual dues owed to the organization.  The person                                   
10 shall make the authorization in writing on a form approved by the administrator.  The                                   
11 authorization shall remain in effect until revoked in writing.  The revocation is                                       
12 effective when received by the administrator.  The administrator may, by regulation,                                    
13 assess a reasonable administrative fee to compensate the system for administration of                                   
14 this subsection.  In this subsection, "retirement organization" means an organization                                   
15 representing persons receiving benefits under this chapter that is affiliated with an                                   
16 organization representing employees of the employer under AS 23.40.070 - 23.40.260.