CSHB 335(STA): "An Act relating to information contained in retirement system records; relating to retirement boards; relating to procedures and hearings under state retirement systems; relating to benefits for reemployed retired members of retirement systems; relating to eligibility for normal retirement for members of the teachers' retirement system who have Alaska BIA credited service; relating to disability benefits for members of state retirement systems; relating to deduction of premiums from retirement benefits; relating to protection of, and assignment and transfer of, amounts held in retirement systems; relating to retirement benefits for certain employees earning high salaries; relating to qualified domestic relations orders in state retirement systems; relating to the definition of 'retirement fund' in the teachers' retirement system; relating to membership of state employees in the teachers' retirement system; relating to refund of contributions made to the judicial retirement system or to the former elected public officers retirement system and repayment of refunded contributions in those systems; relating to self-insurance and excess loss insurance for persons receiving benefits from a state retirement system; relating to participation of elected officials in the public employees' retirement system; relating to the level income option benefit under the public employees' retirement system; relating to participation of employees of political subdivisions and public organizations in the public employees' retirement system; relating to crimes for defrauding a state retirement system; relating to the definition of 'pension fund' in the public employees' retirement system; relating to calculation of years of service and of benefits under the public employees' retirement system for noncertificated employees of certain educational employers; and relating to individual accounts maintained for members of the former elected public officers retirement system."
00CS FOR HOUSE BILL NO. 335(STA) 01 "An Act relating to information contained in retirement system records; relating 02 to retirement boards; relating to procedures and hearings under state retirement 03 systems; relating to benefits for reemployed retired members of retirement 04 systems; relating to eligibility for normal retirement for members of the 05 teachers' retirement system who have Alaska BIA credited service; relating to 06 disability benefits for members of state retirement systems; relating to deduction 07 of premiums from retirement benefits; relating to protection of, and assignment 08 and transfer of, amounts held in retirement systems; relating to retirement 09 benefits for certain employees earning high salaries; relating to qualified domestic 10 relations orders in state retirement systems; relating to the definition of 11 'retirement fund' in the teachers' retirement system; relating to membership of 12 state employees in the teachers' retirement system; relating to refund of 13 contributions made to the judicial retirement system or to the former elected 14 public officers retirement system and repayment of refunded contributions in
01 those systems; relating to self-insurance and excess loss insurance for persons 02 receiving benefits from a state retirement system; relating to participation of 03 elected officials in the public employees' retirement system; relating to the level 04 income option benefit under the public employees' retirement system; relating 05 to participation of employees of political subdivisions and public organizations 06 in the public employees' retirement system; relating to crimes for defrauding a 07 state retirement system; relating to the definition of 'pension fund' in the public 08 employees' retirement system; relating to calculation of years of service and of 09 benefits under the public employees' retirement system for noncertificated 10 employees of certain educational employers; and relating to individual accounts 11 maintained for members of the former elected public officers retirement system." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 13 * Section 1. AS 09.25 is amended by adding a new section to read: 14 Sec. 09.25.151. Confidentiality of retirement records. (a) Except as 15 provided in (b) - (d) of this section, public records, including electronic services and 16 products involving public records, containing information about a person and 17 maintained under AS 14.25, AS 22.25, AS 26.05.222 - 26.05.229, AS 39.35, or former 18 AS 39.37 shall be kept confidential and are not subject to inspection or copying under 19 AS 09.25.110 - 09.25.120. 20 (b) Records described in (a) of this section concerning a person who is a 21 member or former member of a state retirement system who is still living may only 22 be released to 23 (1) the person or the person's guardian; 24 (2) the person's employer or former employer; 25 (3) a state agency authorized to obtain confidential information; 26 (4) another person if the person has 27 (A) written authorization for release from the affected member 28 or former member or the member's or former member's guardian; or 29 (B) a court order or subpoena to obtain the information. 30 (c) Records described in (a) of this section concerning a member or former 31 member of a state retirement system who is deceased or a deceased member's named
01 beneficiary may only be released to 02 (1) the member's named beneficiary or the beneficiary's guardian; 03 (2) the member's or former member's former employer; 04 (3) a state agency authorized to obtain confidential information; 05 (4) the personal representative of the member's or former member's 06 estate; 07 (5) another person if the person has 08 (A) written authorization for release from the member or former 09 member, the member's named beneficiary, or the personal representative of the 10 member's or former member's estate; or 11 (B) a court order or subpoena to secure the information. 12 (d) The name and address of a living person who is a member or former 13 member of a state retirement system may be released to a retirement organization 14 representing persons receiving benefits under a state retirement system if the retirement 15 organization is affiliated with an organization representing employees of the employer 16 under AS 23.40.070 - 23.40.260 (Public Employment Relations Act). 17 (e) In this section, "state retirement system" means the teachers' retirement 18 system under AS 14.25, the judicial retirement system under AS 22.25, the retirement 19 system for members of the national guard under AS 26.05.222 - 26.05.229, the public 20 employees' retirement system under AS 39.35, or the elected public officers retirement 21 system under former AS 39.37. 22 * Sec. 2. AS 14.25.035(a) is amended to read: 23 (a) There is established the Alaska Teachers' Retirement Board as follows: 24 (1) the governor shall appoint five members for overlapping three-year 25 terms; one member must be a resident who is receiving retirement benefits under this 26 chapter; statewide teacher organizations may submit to the governor a list of 27 recommended nominees to serve on the board; 28 (2) the governor shall appoint two physicians authorized to practice 29 medicine in the state to serve as members of the board and two physicians 30 authorized to practice medicine in the state to serve as alternate members to the 31 physician members of the board; the physicians are members of the board only
01 for the purpose of hearing appeals to determine medical eligibility for disability 02 benefits under AS 14.25.130; [THE GOVERNOR SHALL APPOINT TWO 03 PHYSICIANS EACH FROM AT LEAST TWO OF THE STATE'S FOUR JUDICIAL 04 DISTRICTS;] the Public Employees' Retirement Board and the Teachers' Retirement 05 Board may submit to the governor a list of recommended physicians to serve on the 06 board; if the administrator, after making a reasonable effort to secure the 07 participation of two physicians to serve on a disability appeal, is unable to do so, 08 the board may hear the appeal with the participation of only one physician or 09 alternate, in which case, for purposes of a quorum, the board shall be considered 10 to have only one physician as a member; [THE TWO PHYSICIAN MEMBERS 11 FROM THE JUDICIAL DISTRICT IN WHICH A DISABILITY APPEAL HEARING 12 IS CONDUCTED SHALL SERVE ON THE BOARD DURING THE HEARING; IF 13 ONE OR MORE OF THE PHYSICIANS IN THE JUDICIAL DISTRICT IN WHICH 14 A DISABILITY HEARING IS CONDUCTED IS UNABLE TO SERVE AT THE 15 HEARING, OR IF THERE IS NO PHYSICIAN MEMBER FROM THAT JUDICIAL 16 DISTRICT, OTHER PHYSICIAN MEMBERS SHALL SERVE AT THE HEARING, 17 SELECTED FOR SUCH HEARINGS ON A ROTATING BASIS, IN ACCORDANCE 18 WITH REGULATIONS ADOPTED BY THE BOARD;] physician members and 19 alternates serve at the pleasure of the governor. 20 * Sec. 3. AS 14.25.035(b) is amended to read: 21 (b) Members of the board appointed under (a)(1) of this section are entitled 22 to receive [DO NOT RECEIVE COMPENSATION] for their services on the 23 retirement board an honorarium equal to the honorarium provided to trustees of 24 the Alaska State Pension Investment Board under AS 37.10.250 . Physician 25 members of the board are entitled to hourly compensation for their services at a rate 26 to be determined by the commissioner of administration. The rate of compensation 27 shall be consistent with the physicians' normal hourly earnings. All members of the 28 board are entitled to travel expenses and per diem authorized for boards and 29 commissions under AS 39.20.180 [WHEN IT IS NECESSARY TO TRAVEL]. 30 * Sec. 4. AS 14.25.035(f) is amended to read: 31 (f) The board shall meet at the call of the chair [CHAIRMAN], any three
01 members, or at the request of the commissioner of administration. The board may 02 adopt regulations defining a quorum for the conduct of its business, including 03 appeals and disability appeals. 04 * Sec. 5. AS 14.25 is amended by adding a new section to read: 05 Sec. 14.25.037. Hearings. (a) The board shall adopt regulations establishing 06 procedures for the conduct of hearings and appeals under this chapter. 07 (b) In the conduct of a hearing under this chapter, the board may issue 08 subpoenas, administer oaths, compel the attendance and testimony of witnesses, compel 09 the taking of depositions and the submission of affidavits, and compel the production 10 of documents and records. The board's powers under this subsection do not extend 11 to prehearing discovery. However, upon good cause shown, the board may permit the 12 preservation of witness testimony if the board cannot successfully compel the witness 13 to attend a hearing. The board may authorize hearing officers to conduct hearings 14 under this chapter and issue decisions; the decision of a hearing officer may be 15 appealed to the board. The board shall adopt procedures for appeals from a hearing 16 officer's decision. 17 (c) A majority of a quorum of the board may issue a ruling or modification 18 of a ruling. If the board's vote on an appeal under this chapter is a tie vote of those 19 members present and voting, the decision being appealed is affirmed. The board, by 20 regulation, shall establish procedures for the reconsideration of a ruling issued under 21 this chapter. A request for reconsideration is timely if it is received within 30 days 22 after the initial ruling was issued. 23 (d) An aggrieved party may appeal a final decision to the superior court. 24 * Sec. 6. AS 14.25.043 is amended to read: 25 Sec. 14.25.043. Reemployment of retired members. If a retired member 26 again becomes an active member, benefit payments may not be made during the period 27 of reemployment. The retirement benefit must be suspended for the entire school year 28 if the teacher is reemployed as an active teacher for a period equivalent to a year of 29 service. During the period of reemployment, deductions from the member's salary will 30 be made in accordance with AS 14.25.050. Upon subsequent retirement, the retired 31 member is entitled to receive an additional benefit based on the credited service and
01 the average base salary during the period of reemployment in accordance with 02 AS 14.25.110. If the initial benefit payments to which the retired member is 03 eligible have been actuarially reduced because the member retired early under 04 AS 14.25.110(b), the member shall also receive an incremental benefit based on 05 the amount of the actuarial reduction imposed by AS 14.25.110(j) on the first 06 benefit and the length of time that the employee was reemployed and not 07 receiving retirement benefits. The amount of the incremental benefit is equal to 08 the difference between the normal retirement benefit to which the member would 09 have been entitled had the member taken a normal retirement and the early 10 retirement benefit that the member has been receiving based on the member's 11 initial period of employment multiplied by the total number of months that the 12 member did not receive retirement benefits because of reemployment and that 13 amount actuarially adjusted to be paid over the expected lifetime of the member. 14 * Sec. 7. AS 14.25.110(a) is amended to read: 15 (a) Subject to AS 14.25.167, a member is eligible for a normal retirement 16 benefit if the member 17 (1) was first hired before July 1, 1975, has attained the age of 55 years, 18 and has at least 15 years of credited service, the last five of which have been 19 membership service or is otherwise vested in the system; 20 (2) has attained the age of 60 years and has at least eight years of 21 membership service; 22 (3) has attained the age of 60 years, has at least five years of 23 membership service, and has [AT LEAST THREE YEARS OF] Alaska BIA service 24 which, when added to the membership service, will equal at least eight years ; 25 (4) has at least 25 years of credited service, the last five of which have 26 been membership service; 27 (5) has at least 20 years of membership service; 28 (6) has at least 20 years of combined membership service and Alaska 29 BIA service, the last five of which have been membership service; or 30 (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. 8. AS 14.25.130(d) is amended to read: 06 (d) The amount of the disability benefit is equal to 50 percent of the member's 07 base salary immediately before becoming disabled. The disability benefit is increased 08 by 10 percent of the member's base salary immediately before becoming disabled 09 for each dependent child, up to a maximum of four dependent children. 10 * Sec. 9. AS 14.25.130 is amended by adding a new subsection to read: 11 (f) A member is not entitled to a disability benefit under this section unless 12 the member files a timely application for the benefit with the administrator. The 13 application is timely if it is filed by the later of six months after the date that the 14 member's disability began or 90 days after the termination of the member's 15 employment. The board may waive a filing deadline under this subsection if there are 16 extraordinary circumstances that resulted in the inability to meet the filing deadline. 17 The board may delegate the authority to waive a filing deadline under this subsection 18 to the administrator. 19 * Sec. 10. AS 14.25.143 is amended by adding a new subsection to read: 20 (g) The board may advise the administrator whether or not the administrator 21 should grant a discretionary post retirement pension adjustment under the former 22 provisions of this section, and, if so, how much the adjustment should be. 23 * Sec. 11. AS 14.25.168(b) is amended to read: 24 (b) After an election of coverage under this section, major medical insurance 25 coverage takes effect on the same date as retirement benefits begin and stops when the 26 member or survivor is no longer eligible to receive a monthly benefit. The coverage 27 for persons age 65 or older is the same as that available for persons under age 65. 28 The benefits payable to those persons age 65 or older supplement any benefits 29 provided under the federal old age, survivors and disability insurance program. The 30 medical premium and optional insurance premiums owed by a member or 31 survivor shall be deducted from the benefit owed to the member or survivor
01 before payment of the benefit. 02 * Sec. 12. AS 14.25.175(b) is amended to read: 03 (b) In order to obtain consideration of a waiver under this section, the affected 04 member or beneficiary must appeal to the board in writing within 30 days after receipt 05 of notice that the records have been adjusted. [THE BOARD SHALL RULE ON AN 06 APPEAL WITHIN 120 DAYS AFTER ITS RECEIPT.] The ruling of the board shall 07 be in writing. 08 * Sec. 13. AS 14.25.175(c) is amended to read: 09 (c) The board may [, AT ITS DISCRETION,] conduct a hearing on an appeal 10 under this section. [IN REACHING A DECISION ON AN APPEAL, THE BOARD 11 MAY ISSUE SUBPOENAS, ADMINISTER OATHS, AND COMPEL THE 12 ATTENDANCE AND TESTIMONY OF WITNESSES, THE TAKING OF 13 DEPOSITIONS, THE SUBMISSION OF AFFIDAVITS, AND THE PRODUCTION 14 OF DOCUMENTS AND RECORDS.] 15 * Sec. 14. AS 14.25.200(a) is amended to read: 16 (a) Except as provided in AS 29.45.030(a)(1) or in (c) or (d) of this section , 17 member contributions and other amounts held in the system on behalf of a member or 18 other person who is or may become eligible for benefits under the system are exempt 19 from Alaska state and municipal taxes and are not subject to anticipation, alienation, 20 sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary 21 or involuntary, before they are received by the person entitled to the amount under the 22 terms of the system . Any [, AND ANY] attempt to anticipate, alienate, sell, transfer, 23 assign, pledge, encumber, charge, or otherwise dispose of any right to amounts accrued 24 in the system is void. However, a member's right to receive benefits or the member 25 contribution account may be assigned 26 (1) under a qualified domestic relations order; [OR] 27 (2) to a trust or similar legal device that meets the requirements for a 28 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4) ; or 29 (3) as provided in (c) or (d) of this section . 30 * Sec. 15. AS 14.25.200 is amended by adding new subsections to read: 31 (c) An inactive member may elect to have the taxable portion of the member
01 contribution account transferred directly to another plan or an individual retirement 02 arrangement that is qualified under the federal Internal Revenue Code and that accepts 03 the transfer. 04 (d) A person receiving benefits under this chapter who intends to join or who 05 belongs to a retirement organization may authorize the administrator to deduct from 06 the person's benefits the amount of annual dues owed to the organization. The person 07 shall make the authorization in writing on a form approved by the administrator. The 08 authorization shall remain in effect until revoked in writing. The revocation is 09 effective when received by the administrator. The administrator may, by regulation, 10 assess a reasonable administrative fee to compensate the system for administration of 11 this subsection. In this subsection, "retirement organization" means an organization 12 representing persons receiving benefits under this chapter that is affiliated with an 13 organization representing employees of the employer under AS 23.40.070 - 23.40.260. 14 * Sec. 16. AS 14.25.210 is amended to read: 15 Sec. 14.25.210. Penalty for false statements. A person who [WILFULLY 16 OR] knowingly makes a false statement, or falsifies or permits to be falsified any 17 record of this [THE RETIREMENT] system , in an attempt to defraud this system , 18 is guilty of a class A misdemeanor and [, UPON CONVICTION, IS PUNISHABLE 19 BY A FINE OF NOT MORE THAN $500 OR BY IMPRISONMENT FOR NOT 20 MORE THAN SIX MONTHS, OR BY BOTH, AND] forfeits all rights under this 21 chapter. 22 * Sec. 17. AS 14.25.210 is amended by adding a new subsection to read: 23 (b) In this section, "knowingly" has the meaning given in AS 11.81.900(a). 24 * Sec. 18. AS 14.25.220(6) is amended to read: 25 (6) "base salary" 26 (A) means the total remuneration payable under contract for a 27 full year of membership service, including addenda to the contract but, for a 28 member first hired on or after July 1, 1996, does not include remuneration 29 in excess of the limitations set out in 26 U.S.C. 401(a)(17) ; 30 (B) has the same meaning as "compensation" under 31 AS 39.35.680(8) when applied to a state legislator who elects membership
01 under AS 14.25.040(b); 02 * Sec. 19. AS 14.25.220(31) is amended to read: 03 (31) "qualified domestic relations order" means a divorce or dissolution 04 judgment under AS 25.24, including an order approving a property settlement, that 05 (A) creates or recognizes the existence of an alternate payee's 06 right to, or assigns to an alternate payee the right to, receive all or a portion of 07 the member contribution account or benefits payable with respect to a 08 member; 09 (B) sets out the name and last known mailing address, if any, 10 of the member and of each alternate payee covered by the order; 11 (C) sets out the amount or percentage of the member's benefit, 12 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 13 manner in which that amount or percentage is to be determined; 14 (D) sets out the number of payments or period to which the 15 order applies; 16 (E) does not require any type or form of benefit or any option 17 not otherwise provided by this chapter; 18 (F) does not require an increase of benefits in excess of the 19 amount provided by this chapter, determined on the basis of actuarial value; 20 and 21 (G) does not require the payment, to an alternate payee, of 22 benefits that are required to be paid to another alternate payee under another 23 order previously determined to be a qualified domestic relations order; 24 * Sec. 20. AS 14.25.220(35) is amended to read: 25 (35) "retirement fund" or "fund" means the fund in which the assets of 26 the system , including income and interest derived from the investment of money, 27 are deposited and held; 28 * Sec. 21. AS 14.25.220(40) is amended to read: 29 (40) "teacher" or "member" means a person eligible to participate in 30 the system and who is covered by the system, limited to 31 (A) a certificated full-time or part-time elementary or secondary
01 teacher, a certificated school nurse, or a certificated person in a position 02 requiring a teaching certificate as a condition of employment in a public school 03 of the state or in the Department of Education and Early Development ; 04 (B) [THE COMMISSIONER OF EDUCATION AND EARLY 05 DEVELOPMENT AND ALL SUPERVISORY POSITIONS IN THE 06 DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT; 07 (C)] a full-time or part-time teacher of the University of Alaska 08 or a person occupying a full-time administrative position at the University of 09 Alaska that requires academic standing; the approval of the administrator must 10 be obtained before an administrative position qualifies for membership in the 11 system; however, a teacher or administrative person at the university who is 12 participating in the optional university retirement program under AS 14.40.661 13 - 14.40.799 is not a member under this system; 14 (C) [(D)] a state legislator who elects membership under 15 AS 14.25.040(b); 16 * Sec. 22. AS 22.25.020 is amended to read: 17 Sec. 22.25.020. Retirement pay. A retired justice or judge eligible for 18 retirement pay shall receive from the date of eligibility until death monthly 19 compensation equal to five percent per year of service, to a maximum of 75 percent, 20 of the monthly salary authorized for justices and judges, respectively, at the time each 21 retirement payment is made. For a justice or judge who was first employed in this 22 retirement system on or after July 1, 1996, base annual salary does not include 23 remuneration in excess of the limitations set out in 26 U.S.C. 401(a)(17) (Internal 24 Revenue Code). 25 * Sec. 23. AS 22.25.041 is amended to read: 26 Sec. 22.25.041. Refund of contributions. (a) Except as provided in (c) of 27 this section, a [A] justice or judge who vacates office for any reason and who has not 28 then accrued five years of creditable service under this chapter is entitled to receive 29 a refund of the total amount of contributions, including principal and interest 30 payments on indebtedness, together with interest credited on the amount. To receive 31 credit for an earlier period of service under AS 22.25.010(f), [IF] a justice or judge
01 who has received a refund of contributions and who returns to active service [, THE 02 JUSTICE OR JUDGE] shall repay in full, before appointment to retirement, 03 [WITHIN ONE YEAR] the refunded contributions with interest at the prevailing rate 04 [TO RECEIVE CREDIT FOR THE EARLIER PERIOD OF SERVICE UNDER 05 AS 22.25.010(f)]. 06 (b) A justice or judge whose contributions have been involuntarily refunded 07 because of a levy under AS 09.38.065 or because of a federal tax levy may repay 08 the amount levied together with accrued interest whether or not the justice or judge is 09 on active service. Repayments shall be made under (a) of this section. 10 * Sec. 24. AS 22.25.041 is amended by adding new subsections to read: 11 (c) A justice or judge whose rights to a refund are subject to a qualified 12 domestic relations order is entitled to receive a refund of the total amount of 13 contributions, together with interest credited on the amount, only if the present spouse 14 of the justice or judge, if any, and each person entitled under the order consent to the 15 refund in writing on a form provided by the administrator. The administrator may 16 waive written consent from the person entitled to benefits under the order if the 17 administrator determines that the person cannot be located or for other reasons 18 established by regulation. The administrator may waive written consent from the 19 spouse if the administrator determines that 20 (1) the justice or judge was not married to the spouse during any period 21 of the justice's or judge's employment under this chapter; 22 (2) the spouse has no right to benefits under this chapter because of the 23 terms of a qualified domestic relations order; 24 (3) the spouse cannot be located; 25 (4) the justice or judge and spouse have been married for less than two 26 years and the justice or judge establishes that they are not cohabiting; or 27 (5) another reason established by regulation exists. 28 (d) Except as provided in this subsection, in (e) of this section, and in 29 AS 29.45.030(a)(1), amounts held in the system on behalf of a justice or judge or other 30 person who is or may become eligible for benefits under the system are exempt from 31 Alaska state and municipal taxes and are not subject to anticipation, alienation, sale,
01 transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or 02 involuntary, before they are received by the person entitled to the amount under the 03 terms of the system, and any attempt to anticipate, alienate, sell, transfer, assign, 04 pledge, encumber, charge, or otherwise dispose of any right to amounts accrued in the 05 system is void. However, 06 (1) the right of a justice or judge to receive benefits or the contributions 07 and interest may be assigned 08 (A) under a qualified domestic relations order; 09 (B) to a trust or similar legal device that meets the requirements 10 for a Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4); or 11 (C) as provided in (e) of this section; 12 (2) a justice or judge may elect to have the taxable portion of the 13 qualifying distributions transferred directly to another qualified plan or an individual 14 retirement account that accepts the transfer. 15 (e) A person receiving benefits under this chapter who intends to join or who 16 belongs to a retirement organization may authorize the administrator to deduct from 17 the person's benefits the amount of annual dues owed to the organization. The person 18 shall make the authorization in writing on a form approved by the administrator. The 19 authorization shall remain in effect until revoked in writing. A revocation is effective 20 when received by the administrator. The administrator may, by regulation, assess a 21 reasonable administrative fee to compensate the system for administration of this 22 subsection. In this subsection, "retirement organization" means an organization 23 representing persons receiving benefits under this chapter that is affiliated with an 24 organization representing employees of the employer under AS 23.40.070 - 23.40.260. 25 * Sec. 25. AS 22.25.090(b) is amended to read: 26 (b) Except as provided in (d) of this section, major medical insurance coverage 27 takes effect on the same date as retirement benefits begin [,] and stops when the retired 28 person or survivor is no longer eligible to receive a monthly benefit. The coverage for 29 persons age 65 or older is the same as that available for persons under 65 years of 30 age . The benefits payable to those persons age 65 or older supplement any benefits 31 provided under the federal old age, survivors, and disability insurance program. The
01 medical premium and optional insurance premiums owed by a retired person or 02 survivor shall be deducted from the benefit payable to the retired person or 03 survivor before payment of the benefit. 04 * Sec. 26. AS 22.25.900 is amended to read: 05 Sec. 22.25.900. Definition. In this chapter, "qualified domestic relations 06 order" means a divorce or dissolution judgment under AS 25.24, including an order 07 approving a property settlement, that 08 (1) creates or recognizes the existence of an alternate payee's right to, 09 or assigns to an alternate payee the right to, receive all or a portion of the member 10 contributions and interest or benefits payable with respect to a justice or judge; 11 (2) sets out the name and last known mailing address, if any, of the 12 justice or judge and of each alternate payee covered by the order; 13 (3) sets out the amount or percentage of the justice's or judge's benefit, 14 or of any survivor's benefit, to be paid to the alternate payee, or sets out the manner 15 in which that amount or percentage is to be determined; 16 (4) sets out the number of payments or period to which the order 17 applies; 18 (5) does not require any type or form of benefit or any option not 19 otherwise provided by this chapter; 20 (6) does not require an increase of benefits in excess of the amount 21 provided by this chapter, determined on the basis of actuarial value; 22 (7) does not require the payment, to an alternate payee, of benefits that 23 are required to be paid to another alternate payee under another order previously 24 determined to be a qualified domestic relations order. 25 * Sec. 27. AS 26.05.224 is amended by adding new subsections to read: 26 (g) Except as provided in this subsection or AS 29.45.030(a)(1), amounts held 27 in the system on behalf of a member or other person who is or may become eligible 28 for benefits under the system are exempt from Alaska state and municipal taxes and 29 are not subject to anticipation, alienation, sale, transfer, assignment, pledge, 30 encumbrance, or charge of any kind, either voluntary or involuntary, before they are 31 received by the person entitled to the amount under the terms of the system, and any
01 attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or 02 otherwise dispose of any right to amounts accrued in the system is void. However, 03 (1) a member's right to receive benefits or the member contribution 04 account may be assigned 05 (A) under a qualified domestic relations order; or 06 (B) to a trust or similar legal device that meets the requirements 07 for a Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 08 1396p(d)(4); 09 (2) a member may elect to have the taxable portion of the qualifying 10 distributions transferred directly to another plan or individual retirement arrangement 11 qualified under the federal Internal Revenue Code. 12 (h) Amounts held in the system and benefits payable under this section are 13 exempt from garnishment, execution, or levy as provided in AS 09.38 (Alaska 14 Exemptions Act). 15 * Sec. 28. AS 39.30.091 is amended to read: 16 Sec. 39.30.091. Authorization for self-insurance and excess loss insurance. 17 Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration 18 may provide, by means of self-insurance, one or more of the benefits listed in 19 AS 39.30.090(a)(1) for state employees eligible for the benefits by law or under a 20 collective bargaining agreement and for persons receiving benefits under AS 14.25, 21 AS 22.25, AS 39.35, or former AS 39.37, and their dependents . The department 22 shall procure any necessary excess loss insurance under AS 39.30.090. 23 * Sec. 29. AS 39.35.030(b) is repealed and reenacted to read: 24 (b) Three public members are appointed by the governor to serve at the 25 pleasure of the governor for six-year staggered terms. One of the public members 26 must be or have been employed by an employer other than the State of Alaska. The 27 governor shall fill a vacancy in an unexpired appointive term by appointment for the 28 remainder of the term. 29 * Sec. 30. AS 39.35.030(c) is amended to read: 30 (c) Two members of the board must be members of the system elected by [A 31 MAJORITY OF THE VOTES CAST BY] members of the system. Elections shall be
01 conducted by the board. The candidate who receives the most votes cast in the 02 election is elected to the seat. If two seats are to be filled at the election, the 03 candidate who receives the most votes cast and the candidate who receives the 04 next most votes cast are elected to the seats. The term of office of an elected 05 member is six years. A vacancy in an unexpired elective term shall be filled by 06 election for a new six-year term. 07 * Sec. 31. AS 39.35.030(d) is amended to read: 08 (d) The governor shall appoint two physicians authorized to practice medicine 09 in the state to serve as members of the board and two physicians authorized to 10 practice medicine in the state to serve as alternate members to the physician 11 members of the board. The physicians are members of the board only for the 12 purpose of hearing appeals to determine medical eligibility for disability benefits under 13 AS 39.35.400 and 39.35.410. If the administrator, after making a reasonable effort 14 to secure the participation of two physician members or alternates to serve on a 15 disability appeal, is unable to do so, the board may hear the appeal with the 16 participation of only one physician member or alternate, in which case, for 17 purposes of a quorum, the board shall be considered to have only one physician 18 as a member [THE GOVERNOR SHALL APPOINT TWO PHYSICIANS EACH 19 FROM AT LEAST TWO OF THE STATE'S FOUR JUDICIAL DISTRICTS]. The 20 Public Employees' Retirement Board and the Teachers' Retirement Board may submit 21 to the governor a list of recommended physicians to serve on the board. [THE TWO 22 PHYSICIAN MEMBERS FROM THE JUDICIAL DISTRICT IN WHICH A 23 DISABILITY APPEAL HEARING IS CONDUCTED SHALL SERVE ON THE 24 BOARD DURING THE HEARING. IF ONE OR MORE OF THE PHYSICIANS IN 25 THE JUDICIAL DISTRICT IN WHICH A DISABILITY HEARING IS 26 CONDUCTED IS UNABLE TO SERVE AT THE HEARING, OR IF THERE IS NO 27 PHYSICIAN MEMBER FROM THAT JUDICIAL DISTRICT, OTHER PHYSICIAN 28 MEMBERS SHALL SERVE AT THE HEARING, SELECTED FOR SUCH 29 HEARINGS ON A ROTATING BASIS, IN ACCORDANCE WITH REGULATIONS 30 ADOPTED BY THE BOARD.] Physician members serve at the pleasure of the 31 governor.
01 * Sec. 32. AS 39.35.030(e) is amended to read: 02 (e) Members of the board appointed under [IDENTIFIED IN] (b) of this 03 section or elected under (c) of this section are entitled to [DO NOT] receive 04 [COMPENSATION] for their services on the retirement board an honorarium equal 05 to the honorarium provided to trustees of the Alaska State Pension Investment 06 Board under AS 37.10.250 . Physician members of the board are entitled to hourly 07 compensation for their services at a rate to be determined by the commissioner of 08 administration. The rate of compensation shall be consistent with the physicians' 09 normal hourly earnings. All members of the board are entitled to travel expenses and 10 per diem when it is necessary to travel. 11 * Sec. 33. AS 39.35.040 is amended to read: 12 Sec. 39.35.040. Powers and duties of board. The Public Employees 13 Retirement Board has the following powers and duties: 14 (1) to hold regular meetings and special meetings considered necessary; 15 all meetings are open to the public , and the board keeps a full record of all its 16 proceedings; the board may, by regulation, define a quorum for the conduct of its 17 business, including appeals and disability appeals; 18 (2) to adopt, with modifications it considers proper, regulations 19 recommended by the administrator for carrying out this chapter; 20 (3) to consider and adopt resolutions on matters referred to it by the 21 administrator in connection with changes in policy and revisions of this chapter; 22 (4) to act as an appeals board, hold hearings at the request of an 23 employer, employee, surviving spouse , or a beneficiary on decisions made by the 24 administrator, and submit its findings to the administrator; 25 (5) to have prepared, at least biennially, an actuarial valuation of the 26 total obligations under the system of each employer and, on the basis of the valuation 27 and in time for incorporation of the results in the state budget, to certify to the 28 appropriate budgetary authorities of each employer: 29 (A) an appropriate contribution rate for all employers; and 30 (B) an amount appropriate for each employer to liquidate the 31 employee's past service liability; the board shall have an actuarial and financial
01 experience analysis of the system conducted at appropriate intervals, but no less 02 frequently than once every six years; the actuarial valuations and the actuarial 03 and financial experience analysis shall be prepared and certified by a member 04 of the American Academy of Actuaries; 05 (6) to prescribe the policies for the proper operation of the system and 06 carry on other activities that are considered necessary to carry out the intent and 07 purpose of the system in accordance with this chapter; 08 (7) to prescribe the rate of interest that shall be credited to the 09 employee accounts each year; 10 (8) to waive the requirements of AS 39.35.520 in accordance with 11 AS 39.35.522; 12 (9) to exercise the duties set out in AS 39.30.155 with respect to the 13 supplemental employee benefit program under AS 39.30.150 - 39.30.180; 14 (10) to exercise the duties set out in AS 39.45.025 with respect to the 15 deferred compensation program for state employees; 16 (11) to adopt regulations for the election of trustees to the Alaska State 17 Pension Investment Board and for removal from the investment board of trustees 18 elected from the system ; 19 (12) to adopt a contribution surcharge under AS 39.35.160(c) . 20 * Sec. 34. AS 39.35 is amended by adding a new section to read: 21 Sec. 39.35.077. Hearings. (a) The board shall adopt regulations establishing 22 procedures for the conduct of hearings and appeals under this chapter. 23 (b) In the conduct of a hearing under this chapter, the board may issue 24 subpoenas, administer oaths, compel the attendance and testimony of witnesses, compel 25 the taking of depositions and the submission of affidavits, and compel the production 26 of documents and records. The board's powers under this subsection do not extend 27 to prehearing discovery. However, upon good cause shown, the board may permit the 28 preservation of witness testimony if the board cannot successfully compel the witness 29 to attend a hearing. The board may authorize hearing officers to conduct hearings 30 under this chapter and issue decisions; the decision of a hearing officer may be 31 appealed to the board. The board shall adopt procedures for appeals from a hearing
01 officer's decision. 02 (c) A majority of a quorum of the board may issue a ruling or modification 03 of a ruling. If the board's vote on an appeal under this chapter is a tie vote of those 04 members present and voting, the decision being appealed is affirmed. The board, by 05 regulation, shall establish procedures for the reconsideration of a ruling issued under 06 this chapter. A request for reconsideration is timely if it is received within 30 days 07 after the initial ruling was issued. 08 (d) An aggrieved party may appeal a final decision to the superior court. 09 * Sec. 35. AS 39.35.125(a) is amended to read: 10 (a) An elected official of the state or of a political subdivision of the state 11 if the political subdivision has elected under AS 39.35.550 - 39.35.650 to designate 12 elected officials in the classifications of employees entitled to participate in the 13 system is included in the system unless the official files a written waiver of coverage 14 with the administrator. A waiver under this subsection waives coverage of future 15 employment as an elected official, regardless of any change of employer. An elected 16 official may file a waiver under this subsection at any time after election to office, 17 including the period before taking the oath of office. An elected official may revoke 18 a waiver under this subsection by filing a written revocation with the administrator. 19 A revocation under this subsection operates prospectively only, and the elected official 20 may not receive credited service for service as an elected official while the waiver was 21 in effect. There is no limit on the number of times an elected official may file a 22 waiver or revocation under this subsection. 23 * Sec. 36. AS 39.35.150 is amended to read: 24 Sec. 39.35.150. Re-employment of retired employees. If a retired employee 25 subsequently becomes an active member, benefit payments may not be made during 26 the period of re-employment. During the period of re-employment, deductions from 27 the employee's salary shall be made in accordance with AS 39.35.160. Upon 28 subsequent retirement, the retired employee is entitled to receive an additional pension 29 based on the credited service and the average monthly compensation earned during the 30 period of re-employment in accordance with AS 39.35.370. If the initial benefit 31 payments to which the retired member is eligible have been reduced because the
01 member retired early under AS 39.35.370(b) or increased because the member 02 elected to receive a level income option benefit under former AS 39.35.460, the 03 member shall also receive an incremental benefit based on the amount of the 04 reduction imposed by AS 39.35.370(b) or the increase under former AS 39.35.460 05 on the first benefit and the length of time that the employee was reemployed and 06 not receiving retirement benefits. The amount of the incremental benefit is equal 07 to the difference between the normal retirement benefit to which the member 08 would have been entitled had the member taken a normal retirement and the 09 early retirement benefit or benefit under the level income option that the member 10 has been receiving based on the member's initial period of employment multiplied 11 by the total number of months that the member did not receive retirement 12 benefits because of reemployment and that amount actuarially adjusted to be paid 13 over the expected lifetime of the member. In the case of a member who selected 14 benefits under the level income option, the total number of months may not 15 include any month in which the member was 65 years of age or older. 16 * Sec. 37. AS 39.35.160(c) is amended to read: 17 (c) An employee who has made an [IRREVOCABLE] election under 18 AS 39.35.300(c) or 39.35.310(c) to have the employee's years of service as a 19 noncertificated employee of a state boarding school, of a school district or regional 20 educational attendance area, of the special education service agency, or of the Alaska 21 Vocational Technical Center determined by reference to AS 14.25.220 shall pay a 22 contribution surcharge for that service. The amount of the surcharge is the difference 23 between the amount the employer would have had to contribute under AS 39.35.250 - 24 39.35.290 for the employee when treating the employee's credited service as service 25 earned under AS 39.35.300(c) or 39.35.310(c) less the amount the employer would 26 have had to contribute under AS 39.35.250 - 39.35.290 without treating the employee's 27 credited service as service earned under AS 39.35.300(c) or 39.35.310(c). 28 * Sec. 38. AS 39.35.300(c) is amended to read: 29 (c) A noncertificated employee of the Alaska Vocational Technical Center or 30 a state boarding school who first becomes a member of the system on or after July 1, 31 1999, may, within 90 days after the employee first joins the system, make an
01 [IRREVOCABLE] election under this subsection to have the years of service that the 02 employee earns as a noncertificated employee determined using the table for service 03 on or after July 1, 1969, that is set out in the definition of "year of service" in 04 AS 14.25.220. A noncertificated employee of the Alaska Vocational Technical Center 05 or a state boarding school who is an active member of the system on July 1, 1999, 06 may, within 180 days after July 1, 1999, make the [IRREVOCABLE] election. A 07 member of the system who is an inactive member on July 1, 1999, and who is later 08 employed as a noncertificated employee of the Alaska Vocational Technical Center or 09 a state boarding school may, within 90 days after beginning the subsequent 10 employment, make the [IRREVOCABLE] election. An election under this subsection 11 is irrevocable except as provided in (d) of this section and shall be made in writing 12 on a form provided by the administrator. The election applies to the employee's 13 service earned for the school year in which the election is accepted by the 14 administrator and applies to all subsequent employment as a noncertificated employee 15 of a state boarding school, a school district or regional educational attendance area, the 16 special education service agency, or the Alaska Vocational Technical Center. An 17 employee who makes an election under this subsection shall pay the contribution 18 surcharge as set out in AS 39.35.160(c). 19 * Sec. 39. AS 39.35.300 is amended by adding new subsections to read: 20 (d) A noncertificated employee who has made an election under (c) of this 21 section and who thereafter changes employment status from working for less than a 22 full year, whether part-time or full time, to working for a full year, whether part-time 23 or full-time, may, between July 1 and September 30, revoke the election and cease 24 payment of the contribution surcharge. A revocation under this subsection is 25 retroactive to July 1 of the school year, as defined in AS 14.25.220, in which the 26 revocation is made. 27 (e) A noncertificated employee who has not made an election under (c) of this 28 section who changes employment status from working for a full year, whether part- 29 time or full-time, to working for less than a full year, whether part-time or full-time, may, 30 between July 1 and September 30, make the election and begin paying the contribution 31 surcharge. The election is retroactive to July 1 of the school year, as defined in AS 14.25.220,
01 in which the election is made. 02 * Sec. 40. AS 39.35.310(c) is amended to read: 03 (c) A noncertificated employee of a school district, a regional educational 04 attendance area, or the special education service agency who first becomes a member 05 of the system on or after July 1, 1999, may, within 90 days after the employee first 06 joins the system, make an [IRREVOCABLE] election under this subsection to have 07 the years of service that the employee earns as a noncertificated employee determined 08 using the table for service on or after July 1, 1969, that is set out in the definition of 09 "year of service" in AS 14.25.220. A noncertificated employee of a school district, a 10 regional educational attendance area, or the special education service agency who is 11 an active member of the system on July 1, 1999, may, within 180 days after July 1, 12 1999, make the [IRREVOCABLE] election. A member of the system who is an 13 inactive member on July 1, 1999, and who later is employed as a noncertificated 14 employee of a school district, a regional educational attendance area, or the special 15 education service agency may, within 90 days after beginning the subsequent 16 employment, make the [IRREVOCABLE] election. An election under this subsection 17 is irrevocable except as provided in (d) of this section and shall be made in writing 18 on a form provided by the administrator. The election applies to the employee's 19 service earned for the school year in which the election is accepted by the 20 administrator and applies to all subsequent employment as a noncertificated employee 21 of a state boarding school, a school district or regional educational attendance area, the 22 special education service agency, or the Alaska Vocational Technical Center. An 23 employee who makes an election under this subsection shall pay the contribution 24 surcharge as set out in AS 39.35.160(c). 25 * Sec. 41. AS 39.35.310 is amended by adding new subsections to read: 26 (d) A noncertificated employee who has made an election under (c) of this 27 section and who thereafter changes employment status from working for less than a 28 full year, whether part-time or full-time, to working for a full year, whether part-time 29 or full-time, may, between July 1 and September 30, revoke the election and cease 30 payment of the contribution surcharge. A revocation under this subsection is 31 retroactive to the beginning of the school year, as defined in AS 14.25.220, in which
01 the revocation was made. 02 (e) A noncertificated employee who has not made an election under (c) of this 03 section who changes employment status from working for a full year, whether part- 04 time or full-time, to working for less than a full year may, between July 1 and September 30, 05 make the election and begin paying the contribution surcharge. The election is retroactive to 06 July 1 of the school year, as defined in AS 14.25.220, in which the election was made. 07 * Sec. 42. AS 39.35.400(a) is amended to read: 08 (a) An employee is eligible for a nonoccupational disability benefit if the 09 employee's employment is terminated because of a total and apparently permanent 10 nonoccupational disability, as defined in AS 39.35.680, before the employee's normal 11 retirement date and after five or more years of credited service. A member is not 12 entitled to a nonoccupational disability benefit under this section unless the 13 member files an application for the benefit with the administrator within 90 days 14 after the member terminated employment. The board may waive a filing deadline 15 if there are extraordinary circumstances that resulted in the inability to meet the 16 deadline. The board may delegate the authority to waive a filing deadline under 17 this subsection to the administrator. 18 * Sec. 43. AS 39.35.410(f) is amended to read: 19 (f) An employee is not entitled to an occupational disability benefit unless the 20 employee files an application for it with the administrator [WITHIN SIX MONTHS 21 AFTER THE DATE OF THE ACCIDENT, IF DISABILITY IS ATTRIBUTABLE TO 22 AN ACCIDENT, WITHIN SIX MONTHS AFTER THE DATE THE DISABILITY 23 BEGINS IF THE DISABILITY IS CAUSED BY AN OCCUPATIONAL DISEASE, 24 OR] within 90 [30] days of the date of terminating employment [, WHICHEVER IS 25 LATER. IF THE DISABILITY IS ATTRIBUTABLE TO AN ACCIDENT, THE 26 EMPLOYEE SHALL FILE A NOTICE OF THE ACCIDENT WITH THE 27 ADMINISTRATOR WITHIN 30 DAYS FOLLOWING THE DATE IT OCCURRED. 28 THIS 30-DAY FILING PERIOD IS SUSPENDED FOR THE TIME THE 29 EMPLOYEE'S CONDITION PREVENTS FILING]. If the employee is unable to meet 30 a filing requirement of this subsection, it may be waived by the Public Employees' 31 Retirement Board if there are extraordinary circumstances that resulted in the
01 employee's inability to meet the filing requirement. The board may delegate the 02 authority to waive a filing deadline under this subsection to the administrator 03 [FOR CAUSE]. 04 * Sec. 44. AS 39.35.450(a) is amended to read: 05 (a) Benefits payable under this section are in place of benefits payable under 06 AS 39.35.370, 39.35.385, and former AS 39.35.460. Upon filing an application with 07 the administrator or when a disabled employee first attains eligibility for normal 08 retirement under AS 39.35.400(f) or 39.35.410(h), the employee shall designate the 09 person who is the employee's spouse at the time of appointment to retirement as the 10 contingent beneficiary. However, if the designation of the spouse is revoked under (c) 11 of this section, the employee may designate a dependent approved by the administrator 12 as the contingent beneficiary or may take normal or early retirement under 13 AS 39.35.370 or 39.35.385 or, if the employee was first hired before July 1, 1996, 14 benefit payments under the level income option under former AS 39.35.460 . The 15 administrator shall pay benefits under the option elected by the employee. The 16 employee may elect an option that provides that [(1)] the employee is entitled to 17 receive a reduced benefit payable for life, and, after the employee's death, the 18 contingent beneficiary is entitled to payments in the amount of 19 (1) 75 percent of the reduced benefit payable for life; or 20 (2) [THE EMPLOYEE IS ENTITLED TO RECEIVE A REDUCED 21 BENEFIT PAYABLE FOR LIFE, AND, AFTER THE EMPLOYEE'S DEATH, THE 22 CONTINGENT BENEFICIARY IS ENTITLED TO RECEIVE PAYMENTS IN THE 23 AMOUNT OF] 50 percent of the reduced benefit payable for life. 24 * Sec. 45. AS 39.35.475 is amended by adding a new subsection to read: 25 (g) The board may advise the administrator whether or not the administrator 26 should grant a discretionary post retirement pension adjustment under the former 27 provisions of this section and, if so, how much the adjustment should be. 28 * Sec. 46. AS 39.35.500 is amended to read: 29 Sec. 39.35.500. Safeguard of employee funds held by the system. Except 30 as provided in AS 29.45.030(a)(1) or in (b) of this section , employee contributions 31 and other amounts held in the system are exempt from Alaska state and local taxes.
01 Except as provided in this subsection and in (b) or (c) of this section, amounts 02 [AMOUNTS] held on behalf of, or payable to, any employee or other person who is 03 or may become eligible for benefits under the system are not subject to anticipation, 04 alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, 05 either voluntary or involuntary, before being received by the person entitled to the 06 amount under the terms of the system. An attempt to anticipate, alienate, sell, transfer, 07 assign, pledge, encumber, charge, or otherwise dispose of a right to amounts held 08 under the system is void. However, an employee's right to receive benefits or the 09 member's employee contribution account may be assigned 10 (1) under a qualified domestic relations order; or 11 (2) to a trust or similar legal device that meets the requirements for a 12 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4). 13 * Sec. 47. AS 39.35.500 is amended by adding new subsections to read: 14 (b) An inactive member may elect to have the taxable portion of an inactive 15 employee contribution account transferred directly to another plan or an individual 16 retirement arrangement qualified under the federal Internal Revenue Code that accepts 17 the transfer. 18 (c) A person receiving benefits under this chapter who intends to join or who 19 belongs to a retirement organization may authorize the administrator to deduct from 20 the person's benefits the amount of annual dues owed to the organization. The person 21 shall make the authorization in writing on a form approved by the administrator. The 22 authorization shall remain in effect until revoked in writing. A revocation is effective 23 when received by the administrator. The administrator may, by regulation, assess a 24 reasonable administrative fee to compensate the system for administration of this 25 subsection. In this subsection, "retirement organization" means an organization 26 representing persons receiving benefits under this chapter that is affiliated with an 27 organization representing employees of the employer under AS 23.40.070 - 23.40.260. 28 * Sec. 48. AS 39.35.522(b) is amended to read: 29 (b) In order to obtain consideration of a waiver under this section, the affected 30 member or beneficiary must appeal to the board in writing within 30 days after receipt 31 of notice that the records have been adjusted. [THE BOARD SHALL RULE ON THE
01 APPEAL IN WRITING WITHIN 120 DAYS AFTER ITS RECEIPT.] 02 * Sec. 49. AS 39.35.522(c) is amended to read: 03 (c) The board may [, AT ITS DISCRETION,] conduct a hearing on an appeal 04 under this section. [IN REACHING A DECISION ON AN APPEAL, THE BOARD 05 MAY ISSUE SUBPOENAS, ADMINISTER OATHS, COMPEL THE ATTENDANCE 06 AND TESTIMONY OF WITNESSES, COMPEL THE TAKING OF DEPOSITIONS 07 AND THE SUBMISSION OF AFFIDAVITS, AND COMPEL THE PRODUCTION 08 OF DOCUMENTS AND RECORDS.] 09 * Sec. 50. AS 39.35.522(e) is amended to read: 10 (e) The board may reconsider a ruling under this section under 11 AS 39.35.077(c) [UPON REQUEST OF THE MEMBER OR BENEFICIARY OR THE 12 ADMINISTRATOR IF THE REQUEST IS RECEIVED WITHIN 30 DAYS AFTER 13 THE INITIAL RULING.] Any modification of the initial ruling must be made within 14 30 days after receipt of a request for reconsideration. 15 * Sec. 51. AS 39.35.535(b) is amended to read: 16 (b) Except as provided in (d) of this section, after an election of coverage 17 under this section, major medical insurance coverage takes effect on the same date that 18 benefits begin, and stops when the member or survivor is no longer eligible to receive 19 a monthly benefit. The coverage for persons age 65 or older is the same coverage 20 available for a person under 65 years of age . The benefits payable to persons age 65 21 or older supplement any benefits provided under the federal old age, survivors and 22 disability insurance program. The medical premium and optional insurance 23 premiums owed by a member or survivor shall be deducted from the benefit owed 24 to the member or survivor before payment of the benefit. 25 * Sec. 52. AS 39.35.615(a) is amended to read: 26 (a) A political subdivision or public organization may request that its 27 participation agreement be amended. The request may be made only after adoption 28 of a resolution by the legislative body of the political subdivision and approval of the 29 resolution by the person required by law to approve the resolution, or, in the case of 30 a public organization, after adoption of a resolution by the governing body of that 31 public organization. A certified copy of the resolution shall be filed with the
01 administrator. If a political subdivision or public organization amends its participation 02 agreement so as to terminate coverage of a department, group, or other classification 03 of employees, each employee whose coverage is so terminated, regardless of the 04 employee's employment status at the date of termination, shall be considered fully 05 vested in actuarially adjusted accrued retirement benefits as of the date of termination, 06 unless 07 (1) the employee's contributions have been refunded ; or 08 (2) the political subdivision or public organization amended its 09 participation agreement to exclude coverage for the affected department, group, 10 or other classification of employees at the written request of a majority of the 11 employees employed in that department, group, or other classification at the time 12 the request was made . 13 * Sec. 53. AS 39.35.670 is amended to read: 14 Sec. 39.35.670. Fraud. A person who knowingly makes a false statement, or 15 falsifies or permits to be falsified a record of this system, in an attempt to defraud the 16 system [,] is guilty of a class A misdemeanor [, AND UPON CONVICTION IS 17 PUNISHABLE BY A FINE OF NOT MORE THAN $500, OR BY IMPRISONMENT 18 FOR NOT MORE THAN TWELVE MONTHS, OR BY BOTH]. 19 * Sec. 54. AS 39.35.680(4) is amended to read: 20 (4) "average monthly compensation" means the result obtained by 21 dividing the compensation earned by an employee during a considered period by the 22 number of months, including fractional months, for which compensation was earned; 23 an employee must have at least 115 days of credited service in the last payroll 24 year in order for that year to be used as part of the consecutive payroll years; the 25 considered period consists of 26 (A) for employees first hired before July 1, 1996, the three 27 consecutive payroll years during the period of credited service that yield 28 [YIELDS] the highest average ; [,] and 29 (B) for employees first hired on or after July 1, 1996, the five 30 consecutive payroll years during the period of credited service that yield the 31 highest average ;
01 (C) [, OR] if the employee does not have the [REQUIRED] 02 number of consecutive payroll years required by (A) or (B) of this 03 paragraph , the actual number of months, including fractional months, that 04 the employee worked [EMPLOYEE'S PERIOD OF CREDITED SERVICE]; 05 (D) for an employee who has made an election under 06 AS 39.35.300(c) or 39.35.310(c), the actual number of months, including 07 fractional months, that the employee worked [AN EMPLOYEE MUST 08 HAVE AT LEAST 115 DAYS OF CREDITED SERVICE IN THE LAST 09 PAYROLL YEAR IN ORDER FOR THAT YEAR TO BE USED AS PART 10 OF THE CONSECUTIVE PAYROLL YEARS]; 11 * Sec. 55. AS 39.35.680(8) is amended to read: 12 (8) "compensation" means the [TOTAL] remuneration earned by an 13 employee for personal services rendered to an employer, including employee 14 contributions under AS 39.35.160, cost-of-living differentials only as provided in 15 AS 39.35.675, payments for leave that is actually used by the employee, the amount 16 by which the employee's wages are reduced under AS 39.30.150(c), and any amount 17 deferred under an employer-sponsored deferred compensation plan, but does not 18 include retirement benefits, severance pay or other separation bonuses, welfare 19 benefits, per diem, expense allowances, workers' compensation payments, or payments 20 for leave not used by the employee whether those leave payments are scheduled 21 payments, lump-sum payments, donations, or cash-ins; for a member first hired on 22 or after July 1, 1996, compensation does not include remuneration in excess of the 23 limitations set out in 26 U.S.C. 401(a)(17) (Internal Revenue Code); 24 * Sec. 56. AS 39.35.680(29) is amended to read: 25 (29) "pension fund" or "fund" means the fund in which the assets of 26 the system , including income and interest derived from the investment of money, 27 are deposited and held; 28 * Sec. 57. AS 39.35.680(34) is amended to read: 29 (34) "qualified domestic relations order" means a divorce or dissolution 30 judgment under AS 25.24, including an order approving a property settlement, that 31 (A) creates or recognizes the existence of an alternate payee's
01 right to, or assigns to an alternate payee the right to, receive all or a portion of 02 employee contribution account or the benefits payable with respect to an 03 employee; 04 (B) sets out the name and last known mailing address, if any, 05 of the employee and of each alternate payee covered by the order; 06 (C) sets out the amount or percentage of the employee's benefit, 07 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 08 manner in which that amount or percentage is to be determined; 09 (D) sets out the number of payments or period to which the 10 order applies; 11 (E) does not require any type or form of benefit or any option 12 not otherwise provided by this chapter; 13 (F) does not require an increase of benefits in excess of the 14 amount provided by this chapter, determined on the basis of actuarial value; 15 and 16 (G) does not require the payment to an alternate payee of 17 benefits that are required to be paid to another alternate payee under another 18 order previously determined to be a qualified domestic relations order ; [.] 19 * Sec. 58. AS 39.50.200(a)(8) is amended to read: 20 (8) "public official" means 21 (A) a judicial officer; 22 (B) the governor or the lieutenant governor; 23 (C) a person hired or appointed in a department in the executive 24 branch as 25 (i) the head or deputy head of the department; 26 (ii) the director or deputy director of a division; 27 (iii) a special assistant to the head of the department; 28 (iv) a person serving as the legislative liaison for the 29 department; 30 (D) an assistant to the governor or the lieutenant governor; 31 (E) the chair or a member of a state commission or board other
01 than physician members or alternates of the Alaska Teachers' Retirement 02 Board appointed under AS 14.25.035(a)(2) or of the Public Employees' 03 Retirement Board appointed under AS 39.35.030(d) ; 04 (F) state investment officers and the state comptroller in the 05 Department of Revenue; 06 (G) the executive director of the Alaska Tourism Marketing 07 Council; 08 (H) the chief procurement officer appointed under 09 AS 36.30.010; 10 (I) the executive director of the Alaska Human Resource 11 Investment Council; and 12 (J) each appointed or elected municipal officer; 13 * Sec. 59. AS 14.25.175(f), 14.25.175(g); AS 39.35.522(f), and 39.35.522(g) are repealed. 14 * Sec. 60. The uncodified law of the State of Alaska is amended by adding a new section 15 to read: 16 ELECTED PUBLIC OFFICERS RETIREMENT SYSTEM PROVISIONS. (a) The 17 individual account maintained for an elected public officer under former AS 39.37.120(b) shall 18 include principal and interest payments on a member's indebtedness credited as of the date 19 of payment. 20 (b) Notwithstanding former AS 39.37.140, an elected public officer who was a 21 member of the elected public officers retirement system under former AS 39.37, who has 22 withdrawn the balance of the officer's individual account, who returns to service as the 23 governor, lieutenant governor, or as a member of the legislature, and who repays the refunded 24 contributions and interest in full before appointment to retirement may reinstate membership 25 in former AS 39.37 and, if otherwise eligible, be appointed to retirement under the provisions 26 of that former chapter. 27 * Sec. 61. The uncodified law of the State of Alaska is amended by adding a new section 28 to read: 29 ELECTED PUBLIC OFFICERS RETIREMENT SYSTEM QUALIFIED DOMESTIC 30 RELATIONS ORDER PROVISIONS. (a) Notwithstanding former AS 39.37.060, a former 31 spouse who was married for at least one year to an elected public officer who is a member
01 of the retirement system under former AS 39.37 shall be treated as a spouse or surviving 02 spouse to the extent required by a qualified domestic relations order. Rights under the order 03 do not take effect until the order is filed with the administrator. 04 (b) Notwithstanding former AS 39.37.130, an elected public officer who is a member 05 of the retirement system under former AS 39.37 and whose rights to a refund are subject to 06 a qualified domestic relations order is entitled to receive a refund of the total amount of 07 contributions together with interest credited on the amount only if the elected public officer's 08 present spouse, if any, and each person entitled under the order consent to the refund in 09 writing on a form provided by the administrator. The administrator may waive written 10 consent from the person entitled to benefits under the order if the administrator determines that 11 the person cannot be located or for other reasons established by regulation. The administrator 12 may waive written consent from the spouse if the administrator determines that 13 (1) the elected public officer was not married to the spouse during any period 14 of the public officer's membership in the system; 15 (2) the spouse has no right to benefits under former AS 39.37 because of the 16 terms of a qualified domestic relations order; 17 (3) the spouse cannot be located; 18 (4) the elected public officer and spouse have been married for less than two 19 years and the elected public officer establishes that they are not cohabiting; or 20 (5) another reason established by regulation exists. 21 (c) Except as provided in this subsection, amounts held in the retirement system under 22 former AS 39.37 on behalf of an elected public officer or other person who is or may become 23 eligible for benefits under the system are exempt from Alaska state and municipal taxes and 24 are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or 25 charge of any kind, either voluntary or involuntary, before they are received by the person 26 entitled to the amount under the terms of the system, and any attempt to anticipate, alienate, 27 sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any right to amounts 28 accrued in the system is void. Amounts held in the system and benefits payable under former 29 AS 39.37 are exempt from garnishment, execution, or levy as provided in AS 09.38 (Alaska 30 Exemptions Act). However, 31 (1) the right of an elected public officer who is a member of the retirement
01 system under former AS 39.37 to receive benefits or the contributions and interest may be 02 assigned 03 (A) under a qualified domestic relations order; or 04 (B) to a trust or similar legal device that meets the requirements for a 05 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4) (Title 06 XIX, Social Security Act); 07 (2) an elected public officer who is a member of the retirement system under 08 former AS 39.37 may elect to have the taxable portion of the qualifying distributions 09 transferred directly to another qualified plan or an individual retirement account that accepts 10 the transfer. 11 (d) Notwithstanding former AS 39.37.145, receipt under a qualified domestic relations 12 order of a monthly benefit under former AS 39.37 (elected public officer retirement system) 13 does not entitle a person or the person's spouse or child to insurance coverage. However, an 14 elected public officer's former spouse who receives a monthly benefit from the former elected 15 public officer retirement system under a qualified domestic relations order is entitled to 16 receive major medical insurance coverage if the former spouse 17 (1) elects the coverage within 60 days after the first monthly benefit paid under 18 the order is mailed first class or otherwise delivered; and 19 (2) pays the premium established by the administrator for the coverage. 20 (e) In this section, "qualified domestic relations order" has the same meaning given 21 in AS 39.35.680. 22 * Sec. 62. The uncodified law of the State of Alaska is amended by adding a new section 23 to read: 24 INITIAL APPOINTMENT OF PUBLIC MEMBERS OF THE PUBLIC EMPLOYEES' 25 RETIREMENT BOARD. Notwithstanding AS 39.35.030(b), as repealed and reenacted by 26 sec. 29 of this Act, persons serving on the Public Employees' Retirement Board under 27 AS 39.35.030(b) on the day before the effective date of this Act shall continue to serve on the 28 board until the expiration of their current terms on the board. When a vacancy on the board 29 occurs, it shall be filled as provided in AS 39.35.030(b), as repealed and reenacted by sec. 29 30 of this Act.