CSHB 242(FIN): "An Act relating to reemployment of and medical benefits for retired members of the teachers' retirement system and public employees' retirement system; relating to the inclusion of cost-of-living differentials on compensation and benefits under the public employees' retirement system; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 242(FIN) 01 "An Act relating to reemployment of and medical benefits for retired members of the 02 teachers' retirement system and public employees' retirement system; relating to the 03 inclusion of cost-of-living differentials on compensation and benefits under the public 04 employees' retirement system; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 14.25.040(a) is amended to read: 07 (a) Unless a teacher or member has elected to participate in the optional 08 university retirement program under AS 14.40.661 - 14.40.799 or has filed an 09 election under AS 14.25.043(b), a teacher or member contracting for service with a 10 participating employer is subject to this chapter. 11 * Sec. 2. AS 14.25.040(a) is amended to read: 12 (a) Unless a teacher or member has elected to participate in the optional 13 university retirement program under AS 14.40.661 - 14.40.799 [OR HAS FILED AN 14 ELECTION UNDER AS 14.25.043(b)], a teacher or member contracting for service
01 with a participating employer is subject to this chapter. 02 * Sec. 3. AS 14.25.043 is amended to read: 03 Sec. 14.25.043. Reemployment of retired members. (a) If a retired member 04 again becomes an active member, benefit payments may not be made during the 05 period of reemployment unless the teacher makes an election under (b) of this 06 section. The retirement benefit must be suspended for the entire school year if the 07 teacher is reemployed as an active teacher for a period equivalent to a year of service. 08 During the period of reemployment, deductions from the member's salary will be 09 made in accordance with AS 14.25.050. Upon subsequent retirement, the retired 10 member is entitled to receive an additional benefit based on the credited service and 11 the average base salary during the period of reemployment in accordance with 12 AS 14.25.110. 13 (b) A member who retired under AS 14.25.110(a) and subsequently 14 becomes an active member may, within 30 days of the date of reemployment, 15 elect to continue receiving benefit payments during the period of reemployment 16 by filing a waiver of coverage with the administrator on a form provided by the 17 administrator. An election under this subsection waives coverage for the period 18 of reemployment and is irrevocable during the period of reemployment. 19 Deductions from the member's salary may not be made under AS 14.25.050 20 during the period of reemployment, and the member may not receive credited 21 service for the period of reemployment. A member who participated in a 22 retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, 23 SLA 1996; ch. 4, FSSLA 1996; or ch. 92, FSSLA 1997, is not eligible to make an 24 election under this subsection. 25 (c) A member who has not made an election under (b) of this section is 26 subject to AS 14.25.050. 27 (d) If the initial benefit payments to which the retired member is eligible have 28 been actuarially reduced because the member retired early under AS 14.25.110(b), the 29 member shall also receive an incremental benefit based on the amount of the actuarial 30 reduction imposed by AS 14.25.110(j) on the first benefit and the length of time that 31 the employee was reemployed and not receiving retirement benefits. The amount of
01 the incremental benefit is equal to the difference between the normal retirement 02 benefit to which the member would have been entitled had the member taken a normal 03 retirement and the early retirement benefit that the member has been receiving based 04 on the member's initial period of employment multiplied by the total number of 05 months that the member did not receive retirement benefits because of reemployment 06 and that amount actuarially adjusted to be paid over the expected lifetime of the 07 member. 08 * Sec. 4. AS 14.25.043(a) is amended to read: 09 (a) If a retired member again becomes an active member, benefit payments 10 may not be made during the period of reemployment [UNLESS THE TEACHER 11 MAKES AN ELECTION UNDER (b) OF THIS SECTION]. The retirement benefit 12 must be suspended for the entire school year if the teacher is reemployed as an active 13 teacher for a period equivalent to a year of service. During the period of 14 reemployment, deductions from the member's salary will be made in accordance with 15 AS 14.25.050. Upon subsequent retirement, the retired member is entitled to receive 16 an additional benefit based on the credited service and the average base salary during 17 the period of reemployment in accordance with AS 14.25.110. 18 * Sec. 5. AS 14.25.168(d) is amended to read: 19 (d) A benefit recipient may elect major medical insurance coverage in 20 accordance with regulations and under the following conditions: 21 (1) a person who has less than 25 years of membership service and 22 who is younger than 60 years of age must pay an amount equal to the full monthly 23 group premium for retiree major medical insurance coverage; 24 (2) [A PERSON WHO IS AT LEAST 60 YEARS OF AGE BUT IS 25 YOUNGER THAN 65 YEARS OF AGE MUST PAY AN AMOUNT EQUAL TO 26 ONE-HALF OF THE FULL MONTHLY GROUP PREMIUM FOR RETIREE 27 MAJOR MEDICAL INSURANCE COVERAGE; 28 (3)] a disabled member, a disabled member who is appointed to 29 normal retirement, [OR] a person 60 [65] years of age or older, or a person who has 30 at least 25 years of membership service is not required to make premium payments. 31 * Sec. 6. AS 39.35.120(b) is amended to read:
01 (b) Inclusion in the system is a condition of employment for an employee 02 except as otherwise provided for an 03 (1) elected official; 04 (2) employee making an election under AS 39.35.150(b); and 05 (3) [FOR AN] employee of the university who has elected to 06 participate in the optional university retirement program under AS 14.40.661 - 07 14.40.799. 08 * Sec. 7. AS 39.35.150 is amended to read: 09 Sec. 39.35.150. Re-employment of retired employees. (a) If a retired 10 employee subsequently becomes an active member, benefit payments may not be 11 made during the period of re-employment unless the member makes an election 12 under (b) of this section. During the period of re-employment, deductions from the 13 employee's salary shall be made in accordance with AS 39.35.160. Upon subsequent 14 retirement, the retired employee is entitled to receive an additional pension based on 15 the credited service and the average monthly compensation earned during the period 16 of re-employment in accordance with AS 39.35.370. 17 (b) A member who retired under AS 39.35.370(a) and subsequently 18 becomes an active member may, within 30 days of the date of reemployment, 19 elect to continue receiving benefit payments during the period of reemployment 20 by filing an election with the administrator on a form provided by the 21 administrator. An election under this subsection waives coverage for the period 22 of reemployment and is irrevocable during the period of reemployment. During 23 the period of reemployment, deductions from the member's salary may not be 24 made under AS 39.35.160 and the member may not receive credited service. A 25 member who participated in a retirement incentive program under ch. 26, SLA 26 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 27 1997, is not eligible to make an election under this subsection. 28 (c) A member who has not made an election under (b) of this section is 29 subject to AS 39.35.120 and 39.35.160. 30 (d) If the initial benefit payments to which the retired member is eligible have 31 been reduced because the member retired early under AS 39.35.370(b) or increased
01 because the member elected to receive a level income option benefit under former 02 AS 39.35.460, the member shall also receive an incremental benefit based on the 03 amount of the reduction imposed by AS 39.35.370(b) or the increase under former 04 AS 39.35.460 on the first benefit and the length of time that the employee was 05 reemployed and not receiving retirement benefits. The amount of the incremental 06 benefit is equal to the difference between the normal retirement benefit to which the 07 member would have been entitled had the member taken a normal retirement and the 08 early retirement benefit or benefit under the level income option that the member has 09 been receiving based on the member's initial period of employment multiplied by the 10 total number of months that the member did not receive retirement benefits because of 11 reemployment and that amount actuarially adjusted to be paid over the expected 12 lifetime of the member. In the case of a member who selected benefits under the level 13 income option, the total number of months may not include any month in which the 14 member was 65 years of age or older. 15 * Sec. 8. AS 39.35.150(a) is amended to read: 16 (a) If a retired employee subsequently becomes an active member, benefit 17 payments may not be made during the period of re-employment [UNLESS THE 18 MEMBER MAKES AN ELECTION UNDER (b) OF THIS SECTION]. During the 19 period of re-employment, deductions from the employee's salary shall be made in 20 accordance with AS 39.35.160. Upon subsequent retirement, the retired employee is 21 entitled to receive an additional pension based on the credited service and the average 22 monthly compensation earned during the period of re-employment in accordance with 23 AS 39.35.370. 24 * Sec. 9. AS 39.35.535(c) is repealed and reenacted to read: 25 (c) A benefit recipient may elect major medical insurance coverage in 26 accordance with regulations and under the following conditions: 27 (1) a person, other than a disabled member or a disabled member who 28 is appointed to normal retirement, must pay an amount equal to the full monthly group 29 premium for retiree major medical insurance coverage if the person is 30 (A) younger than 60 years of age and has less than 31 (i) 25 years of credited service as a peace officer under
01 AS 39.35.360 and 39.35.370; or 02 (ii) 30 years of credited service under AS 39.35.360 and 03 39.35.370 that is not service as a peace officer; or 04 (B) of any age and has less than 10 years of credited service; 05 (2) a person is not required to make premium payments for retiree 06 major medical coverage if the person 07 (A) is a disabled member; 08 (B) is 60 years of age or older and has at least 10 years of 09 credited service; or 10 (C) has at least 11 (i) 25 years of credited service as a peace officer under 12 AS 39.35.360 and 39.35.370; or 13 (ii) 30 years of credited service under AS 39.35.360 and 14 39.35.370 not as a peace officer. 15 * Sec. 10. AS 39.35.675(b) is amended to read: 16 (b) The amount of a cost-of-living differential may not be included in the 17 employee's compensation for purposes of calculating benefits paid under this chapter 18 unless the employee has received a cost-of-living differential [IN A COMPARABLE 19 AMOUNT OR OF AT LEAST THAT MANY STEPS] for at least 50 percent of the 20 employee's credited service. 21 * Sec. 11. AS 14.25.043(b), 14.25.043(c); AS 39.35.120(b)(2), 39.35.150(b), and 22 39.35.150(c) are repealed. 23 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: REGULATIONS. (a) Notwithstanding sec. 15 of this Act, the 26 Alaska Teachers' Retirement Board may immediately proceed to adopt regulations necessary 27 to implement changes made by secs. 1, 3, and 5 of this Act. The regulations take effect under 28 AS 14.25.022, but not before July 1, 2001. 29 (b) Notwithstanding sec. 15 of this Act, the Public Employees' Retirement Board may 30 immediately proceed to adopt regulations necessary to implement changes made by secs. 6, 7, 31 9, and 10 of this Act. The regulations take effect under AS 39.35.042, but not before July 1,
01 2001. 02 * Sec. 13. Sections 2, 4, 8, and 11 of this Act take effect July 1, 2006. 03 * Sec. 14. Section 12 of this Act takes effect immediately under AS 01.10.070(c). 04 * Sec. 15. Except as provided in secs. 13 and 14 of this Act, this Act takes effect July 1, 05 2001.