CSSB 141(FIN): "An Act relating to the teachers' and public employees' retirement systems and creating defined contribution and health reimbursement plans for members of the teachers' retirement system and the public employees' retirement system who are first hired after July 1, 2005; relating to university retirement programs; establishing the Alaska Retirement Management Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; adding appeals of the decisions of the administrator of the teachers' and public employees' retirement systems to the jurisdiction of the office of administrative hearings; providing for nonvested members of the teachers' retirement system defined benefit plans to transfer into the teachers' retirement system defined contribution plan and for nonvested members of the public employees' retirement system defined benefit plans to transfer into the public employees' retirement system defined contribution plan; providing for political subdivisions and public organizations to request to participate in the public employees' defined contribution retirement plan; and providing for an effective date."
00 CS FOR SENATE BILL NO. 141(FIN) 01 "An Act relating to the teachers' and public employees' retirement systems and creating 02 defined contribution and health reimbursement plans for members of the teachers' 03 retirement system and the public employees' retirement system who are first hired after 04 July 1, 2005; relating to university retirement programs; establishing the Alaska 05 Retirement Management Board to replace the Alaska State Pension Investment Board, 06 the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; 07 adding appeals of the decisions of the administrator of the teachers' and public 08 employees' retirement systems to the jurisdiction of the office of administrative 09 hearings; providing for nonvested members of the teachers' retirement system defined 10 benefit plans to transfer into the teachers' retirement system defined contribution plan 11 and for nonvested members of the public employees' retirement system defined benefit 12 plans to transfer into the public employees' retirement system defined contribution
01 plan; providing for political subdivisions and public organizations to request to 02 participate in the public employees' defined contribution retirement plan; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25 is amended by adding new sections to read: 06 Article 1. Administration of the Teachers' Retirement System. 07 Sec. 14.25.001. Purpose. The purpose of this chapter is to encourage 08 qualified teachers to enter and remain in service with participating employers by 09 establishing plans for the payment of retirement and death benefits to or on behalf of 10 the members. 11 Sec. 14.25.002. Attorney general. The attorney general of the state is the 12 legal counsel for the system and shall advise the administrator and represent the 13 system in a legal proceeding. 14 Sec. 14.25.003. Administrator. (a) The commissioner of administration or 15 the commissioner's designee is the administrator of the system. 16 (b) The commissioner of administration shall adopt regulations to govern the 17 operation of the system. 18 Sec. 14.25.004. Powers and duties of the administrator. (a) The 19 administrator shall 20 (1) establish and maintain an adequate system of accounts; 21 (2) transmit the funds deposited in the system to the retirement fund 22 established and maintained by the Alaska Retirement Management Board; 23 (3) approve or disapprove claims for retirement benefits; 24 (4) make payments for the various purposes specified; 25 (5) submit periodic reports or statements of account that are needed; 26 (6) issue a statement of account to an employee not less than once each 27 year showing the amount of the employee's contributions to the applicable plan in the 28 system; 29 (7) formulate and recommend to the commissioner of administration 30 regulations to govern the operation of the system;
01 (8) as soon as possible after the close of each fiscal year, and not later 02 than six months after the close of each fiscal year, send to the governor and the 03 legislature an annual statement on the operations of each of the plans in the system 04 containing 05 (A) a balance sheet; 06 (B) a statement of income and expenditures for the previous 07 fiscal year; 08 (C) a report on valuation of trust fund assets; 09 (D) a summary of assets held in the trust fund listed by the 10 categories of investment, as provided by the Alaska Retirement Management 11 Board; 12 (E) other statistical financial data that are necessary for proper 13 understanding of the financial condition of the system as a whole and each plan 14 in the system and the result of its operations; 15 (9) engage an independent certified public accountant to conduct an 16 annual audit of each plan's accounts and the annual report of the system's financial 17 condition and activity; 18 (10) report to the Legislative Budget and Audit Committee concerning 19 the condition and administration of each plan and distribute the report to the members 20 of each plan in the system; 21 (11) publish an information handbook for each plan in the system at 22 intervals that the administrator considers appropriate; 23 (12) meet at least annually with the board to review the condition and 24 management of the retirement systems and to review significant changes to policies, 25 regulations, or benefits; and 26 (13) do whatever else may be necessary to carry out the purposes of 27 each plan in the system. 28 (b) The administrator is authorized to charge fees necessary to members' 29 accounts to cover the ongoing cost of operating each plan in the system. 30 (c) The administrator is authorized to contract with public and private entities 31 to provide record keeping, benefits payments, and other functions necessary for the
01 administration of each plan in the system. 02 Sec. 14.25.005. Regulations. (a) Regulations adopted by the commissioner 03 of administration under this chapter relate to the internal management of a state 04 agency, and the adoption of the regulations is not subject to AS 44.62 (Administrative 05 Procedure Act). 06 (b) Notwithstanding (a) of this section, a regulation adopted under this chapter 07 shall be published in the Alaska Administrative Register and Code for informational 08 purposes. 09 (c) Each regulation adopted under this chapter must conform to the style and 10 format requirements of the drafting manual for administrative regulations that is 11 published under AS 44.62.050. 12 (d) At least 30 days before the adoption, amendment, or repeal of a regulation 13 under this chapter, the commissioner of administration shall provide notice of the 14 action that is being considered. The notice shall be 15 (1) posted in public buildings throughout the state; 16 (2) published in one or more newspapers of general circulation in each 17 judicial district of the state; 18 (3) mailed to each person or group that has filed a request for notice of 19 proposed action with the commissioner of administration; and 20 (4) furnished to each member of the legislature and to the Legislative 21 Affairs Agency. 22 (e) Failure to mail notice to a person as required under (d)(3) of this section 23 does not invalidate an action taken by the commissioner of administration. 24 (f) The commissioner of administration may hold a hearing on a proposed 25 regulation. 26 (g) A regulation adopted under this chapter takes effect 30 days after adoption 27 by the commissioner of administration. 28 (h) Notwithstanding the other provisions of this section, a regulation may be 29 adopted, amended, or repealed, effective immediately, as an emergency regulation by 30 the commissioner of administration. For an emergency regulation to be effective the 31 commissioner must find that the adoption, amendment, or repeal of the regulation is
01 necessary for the immediate preservation of the orderly operation of the system. The 02 commissioner shall, within 10 days after adoption of an emergency regulation, give 03 notice of the adoption under (d) of this section. 04 (i) In this section, "regulation" has the meaning given in AS 44.62.640(a). 05 Sec. 14.25.006. Appeals. An employer, member, annuitant, or beneficiary 06 may appeal a decision made by the administrator to the office of administrative 07 hearings established under AS 44.64. An aggrieved party may appeal a final decision 08 to the superior court. 09 Sec. 14.25.007. Investment management of retirement system funds. The 10 Alaska Retirement Management Board established under AS 37.10.210 is the 11 fiduciary of the system funds. 12 Sec. 14.25.008. Definitions. In AS 14.25.001 - 14.24.008, 13 (1) "plan" means the retirement plan established in AS 14.25.009 - 14 14.25.220 or the retirement plan established in AS 14.25.310 - 14.25.590; 15 (2) "system" means all retirement plans established under the teachers' 16 retirement system. 17 Article 2. Teachers First Hired before July 1, 2005. 18 Sec. 14.25.009. Applicability of AS 14.25.009 - 14.25.220. The provisions of 19 AS 14.25.009 - 14.25.220 apply only to members first hired before July 1, 2005. 20 * Sec. 2. AS 14.25.010 is amended to read: 21 Sec. 14.25.010. Retirement plan [SYSTEM] established; federal 22 qualification requirements. (a) A joint-contributory retirement plan [SYSTEM] for 23 teachers of the state is created. 24 (b) The retirement plan [SYSTEM] established by AS 14.25.009 - 14.25.220 25 [THIS CHAPTER] is intended to qualify under 26 U.S.C. 401(a) and 414(d) (Internal 26 Revenue Code) as a qualified retirement plan established and maintained by the state 27 for its employees, for the employees of school districts and regional educational 28 attendance areas in the state, and for the employees of other employers whose 29 participation is authorized by AS 14.25.009 - 14.25.220 [THIS CHAPTER] and who 30 participate in this plan [SYSTEM]. 31 (c) An amendment to AS 14.25.009 - 14.25.220 [THIS CHAPTER] does not
01 provide a person with a vested right to a benefit if the Internal Revenue Service 02 determines that the amendment will result in disqualification of the plan under the 03 Internal Revenue Code. 04 * Sec. 3. AS 14.25.012(b) is amended to read: 05 (b) The plan [SYSTEM] created in AS 14.25.009 - 14.25.220 became 06 effective as of July 1, 1955, at which time contributions by the participating employers 07 and members began. 08 * Sec. 4. AS 14.25.012 is amended by adding a new subsection to read: 09 (c) Employees first hired after June 30, 2005, are not eligible to participate in 10 the plan established in AS 14.25.009 - 14.25.220. 11 * Sec. 5. AS 14.25.040(a) is amended to read: 12 (a) Unless a teacher or member participates in a [HAS ELECTED TO 13 PARTICIPATE IN THE OPTIONAL] university retirement program under 14 AS 14.40.661 - 14.40.799, [OR] has filed an election under AS 14.25.043(b), or has 15 elected to participate in the plan established in AS 14.25.310 - 14.25.590, a teacher 16 or member contracting for service with a participating employer is subject to 17 AS 14.25.009 - 14.25.220 [THIS CHAPTER]. 18 * Sec. 6. AS 14.25.040(d) is amended to read: 19 (d) A person who is employed at least half-time in the plan [SYSTEM] during 20 the same period that the person is employed at least half-time in a position in the 21 public employees' retirement plan [SYSTEM] under AS 39.35.095 - 39.35.680 22 [AS 39.35] shall receive credited service under each plan [SYSTEM] for half-time 23 employment. However, the amount of credited service a person receives under the 24 public employees' retirement plan [SYSTEM] during a school year may not exceed 25 the amount necessary, when added to the amount of credited service earned during the 26 school year under the plan [SYSTEM], to equal one year of credited service. A 27 person who was employed at least half-time in a position in the public employees' 28 retirement plan [SYSTEM] under AS 39.35.095 - 39.35.680 [AS 39.35] in the same 29 period that the person was employed at least half-time in a position in this plan 30 [SYSTEM] may claim credited service in both plans [SYSTEMS] for employment 31 before May 31, 1989. To obtain this credited service, the person shall claim the
01 service and verify the period of half-time employment. When eligibility for half-time 02 service credit has been established, an indebtedness shall be determined to the 03 retirement plan [SYSTEM] in which the person did not participate. The amount of 04 the indebtedness is the full actuarial cost of providing benefits for the credited service 05 claimed. Interest as prescribed by regulation accrues on that indebtedness beginning 06 on the later of July 1, 1989, or the date on which the member is first eligible to claim 07 the service. Any outstanding indebtedness existing at the time the person retires will 08 require an actuarial adjustment to the benefits payable based on that service. 09 * Sec. 7. AS 14.25.050(a) is amended to read: 10 (a) Except as provided in (c) of this section, beginning July 1, 2005 11 [JANUARY 1, 1991], each member shall contribute to the plan a percentage 12 [SYSTEM AN AMOUNT EQUAL TO 8.65 PERCENT] of the member's base salary 13 accrued from July 1 to the following June 30, as determined under AS 14.25.052. 14 The employer shall deduct the contribution from the member's salary at the end of 15 each payroll period, and the contribution shall be credited by the plan [SYSTEM] to 16 the member contribution account. The contributions shall be deducted from employee 17 compensation before the computation of applicable federal taxes and shall be treated 18 as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the 19 option of making the payroll deduction directly in cash instead of having the 20 contribution picked up by the employer. 21 * Sec. 8. AS 14.25 is amended by adding a new section to read: 22 Sec. 14.25.052. Calculation of member contribution rate. (a) Each active 23 member shall contribute a percentage of the member's base salary to be determined 24 annually in advance by the administrator. The member contribution rate is the greater 25 of 26 (1) 8.65 percent; or 27 (2) one-half of the normal cost rate actuarially calculated to fund the 28 benefits expected to be earned by active members during the fiscal year. 29 (b) Notwithstanding (a) of this section, the member contribution rate may not 30 increase more than one-half of a percentage point annually. 31 * Sec. 9. AS 14.25.070 is amended to read:
01 Sec. 14.25.070. Contributions by employer. An employer shall contribute to 02 the plan [SYSTEM] an amount equal to the percentage, as certified by the board 03 [ADMINISTRATOR], of the sum total of the base salaries of all members that is 04 required in addition to member contributions to provide the benefits of AS 14.25.009 - 05 14.25.220 [THIS CHAPTER] times the sum total of the base salaries paid to members, 06 including any adjustments to contributions required by AS 14.25.173(a), by the 07 employer. 08 * Sec. 10. AS 14.25.070 is amended by adding a new subsection to read: 09 (b) When added to the member contribution rate calculated under 10 AS 14.25.052, the employer contribution may not be less than the amount required as 11 actuarially calculated to fully fund the future liabilities of active members. 12 * Sec. 11. AS 14.25.075(a) is amended to read: 13 (a) An employee who is eligible to purchase credited service under 14 AS 14.25.047 or 14.25.048, a member who is eligible to purchase credited service 15 under AS 14.25.048, 14.25.050, 14.25.060, 14.25.061, [14.25.062,] 14.25.100, or 16 14.25.107, or a teacher who is eligible to purchase credited service under 17 AS 14.20.345, AS 14.25.050, [14.25.062,] or 14.25.105, in lieu of making payments 18 directly to the plan, may elect to have the member's employer make payments as 19 provided in this section. 20 * Sec. 12. AS 14.25.075(b) is amended to read: 21 (b) A member may elect to have the employer make payments for all or any 22 portion of the amounts payable for the member's purchase of credited service through 23 a salary reduction program as follows: 24 (1) the amounts paid under a salary reduction program are in lieu of 25 contributions by the member making the election; the electing member's salary or 26 other compensation shall be reduced by the amount paid by the employer under this 27 subsection; 28 (2) the member shall make an irrevocable election under this 29 subsection to purchase credited service as permitted in AS 14.20.345, AS 14.25.047, 30 14.25.048, 14.25.050, 14.25.060, 14.25.061, [14.25.062,] 14.25.100, 14.25.105, or 31 14.25.107 before the member's termination of employment; the irrevocable election
01 must specify the number of payroll periods that deductions will be made from the 02 member's compensation and the dollar amount of deductions for each payroll period 03 during the specified number of payroll periods; the deductions made under this 04 paragraph cease upon the earlier of the member's termination of employment with the 05 employer or the member's death; amounts paid by an employer under (f) of this 06 section may not be applied toward the payment of the dollar amount of the deductions 07 representing the portion of the credited service that is being purchased by the member 08 through payroll deduction in accordance with the member's irrevocable election under 09 this paragraph; 10 (3) amounts paid by an employer under this subsection shall be treated 11 as employer contributions for the purpose of determining tax treatment under 26 12 U.S.C. (Internal Revenue Code); the amounts paid by the employer under this section 13 may not be included in the member's gross income for income tax purposes until those 14 amounts are distributed by refund or retirement benefit payments. 15 * Sec. 13. AS 14.25.075(e) is amended to read: 16 (e) Contributions to the plan [SYSTEM] to purchase credited service under 17 this section do not qualify for treatment under this section if recognition of that service 18 would cause a member to receive a retirement benefit for the same service from the 19 plan [SYSTEM] and from one or more other retirement plans or systems of the state. 20 * Sec. 14. AS 14.25.075(f) is amended to read: 21 (f) The administrator may accept rollover contributions from a member [, 22 AND DIRECT TRANSFERS AS DESCRIBED IN THIS SUBSECTION, FOR THE 23 PURCHASE, IN WHOLE OR IN PART, OF FORFEITED CREDITED SERVICE 24 UNDER THIS SECTION FOR THE REINSTATEMENT, IN WHOLE OR IN PART, 25 OF FORFEITED CREDITED SERVICE UNDER AS 14.25.062]. Contributions 26 made under this subsection may not be applied to purchase service being paid under 27 (b) of this section. A rollover contribution [OR TRANSFER] as described in this 28 subsection shall be treated as employer contributions for the purpose of determining 29 tax treatment under the Internal Revenue Code and may be made by any one or a 30 combination of the following methods: 31 (1) subject to the limitations prescribed in 26 U.S.C. 402(c), accepting
01 eligible rollover distributions directly from one or more retirement programs of 02 another employer that are qualified under 26 U.S.C. 401(a) or accepting rollovers 03 directly from a member; 04 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 05 accepting from a member conduit rollover contributions that are received by the 06 member from one or more conduit rollover individual retirement accounts previously 07 established by the member; 08 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 09 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 10 member, on or after January 1, 2002, from a tax sheltered annuity described in 26 11 U.S.C. 403(b); 12 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 13 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 14 member, on or after January 1, 2002, from an eligible deferred compensation plan of a 15 tax-exempt organization or a state or local government described in 26 U.S.C. 457(b); 16 (5) accepting direct trustee-to-trustee transfer from an account 17 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 18 Supplemental Annuity Plan). 19 * Sec. 15. AS 14.25.075(i) is amended to read: 20 (i) On satisfaction of the eligibility requirements of AS 14.20.345, 21 AS 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, [14.25.062,] 14.25.100, 22 14.25.105, or 14.25.107, the requirements of this section, and the administrative filing 23 requirements specified by the administrator, the plan shall adjust the member's 24 credited service history and add any additional service credits acquired. 25 * Sec. 16. AS 14.25.115(a) is amended to read: 26 (a) A teacher in membership service on or after July 1, 1977, who is appointed 27 to retirement on or after July 1, 1978, may elect to apply unused sick leave credit in 28 computing the total number of years of credited service under AS 14.25.110(d) except 29 for sick leave earned while participating in a [THE OPTIONAL] university retirement 30 program under AS 14.40.661 - 14.40.799. To obtain service credit for unused sick 31 leave, a teacher must apply to the administrator not [NO] later than one year after
01 appointment to retirement. Unused sick leave shall be credited on a day-for-day basis 02 in accordance with the table for service after July 1, 1969, contained in 03 AS 14.25.220(45). Teacher contributions may not be required for credited unused sick 04 leave. 05 * Sec. 17. AS 14.25.143(a), as that subsection read following amendment by sec. 3, ch. 06 146, SLA 1980, until amended by sec. 12, ch. 106, SLA 1988, is amended to read: 07 (a) When the administrator determines that the cost of living has increased and 08 that the financial condition of the retirement fund permits, the administrator shall 09 increase benefit payments to persons receiving benefits under this plan. For 10 purposes of this subsection, the financial condition of the fund would only permit 11 an increase in benefits when the ratio of total fund assets to the accrued liability 12 meets or exceeds 110 percent. In this subsection, "accrued liability" means the 13 present value of all member benefits accrued by member service in this plan 14 [SYSTEM]. 15 * Sec. 18. AS 14.25.143(a), as that subsection read following amendment by sec. 12, ch. 16 106, SLA 1988, until amended by sec. 12, ch. 97, SLA 1990, is amended to read: 17 (a) When the administrator determines that the cost of living has increased and 18 that the financial condition of the retirement fund [SYSTEM] permits, the 19 administrator shall increase benefit payments to persons receiving benefits under this 20 plan. For purposes of this subsection, the financial condition of the fund would 21 only permit an increase in benefits when the ratio of total fund assets to the 22 accrued liability meets or exceeds 110 percent. In this subsection, "accrued 23 liability" means the present value of all member benefits accrued by member 24 service in this plan [SYSTEM]. 25 * Sec. 19. AS 14.25.145 is amended to read: 26 Sec. 14.25.145. Interest on individual accounts. Interest shall be credited to 27 each teacher's account at the end of each school year at the rate prescribed by the 28 board [REGULATION] for that year. 29 * Sec. 20. AS 14.25.150 is amended by adding a new subsection to read: 30 (c) A member who has received a refund of contributions in accordance with 31 this section forfeits corresponding credited service under AS 14.25.009 - 14.25.220.
01 * Sec. 21. AS 14.25.173(c) is amended to read: 02 (c) At least quarterly, [AT EACH REGULARLY SCHEDULED MEETING 03 OF THE TEACHERS' RETIREMENT BOARD,] the administrator shall report to the 04 commissioner of administration [BOARD] on all situations since the administrator's 05 last report in which an adjustment has been prohibited under (b) of this section. If the 06 commissioner of administration [BOARD] finds that there is reason to believe that 07 one or more of the conditions set out in (b) of this section have not been met, the 08 administrator shall notify the member or beneficiary that an adjustment will be made 09 to recover the overpayment. A member or beneficiary who receives notice of 10 adjustment under this subsection may file a request with the commissioner of 11 administration [APPEAL TO THE BOARD] for a waiver of the adjustment under 12 AS 14.25.175. An adjustment that requires the repayment of benefits may not be 13 required while the waiver request [APPEAL] is pending. 14 * Sec. 22. AS 14.25.175(a) is amended to read: 15 (a) Upon request [APPEAL] by an affected member or beneficiary under (b) 16 of this section, the commissioner of administration [BOARD] may waive an 17 adjustment or a portion of an adjustment made under AS 14.25.173 if, in the opinion 18 of the commissioner of administration [BOARD], 19 (1) the adjustment or portion of the adjustment will cause undue 20 hardship to the member or beneficiary; 21 (2) the adjustment was not the result of erroneous information supplied 22 by the member or beneficiary; 23 (3) before the adjustment was made, the member or beneficiary 24 received confirmation from the administrator that the member's or beneficiary's 25 records were correct; and 26 (4) the member or beneficiary had no reasonable grounds to believe 27 the records were incorrect before the adjustment was made. 28 * Sec. 23. AS 14.25.175(b) is amended to read: 29 (b) In order to obtain consideration of a waiver under this section, the affected 30 member or beneficiary shall file a request with [MUST APPEAL TO] the 31 commissioner of administration [BOARD] in writing within 30 days after receipt of
01 notice that the records have been adjusted. The ruling of the commissioner of 02 administration [BOARD] shall be in writing. 03 * Sec. 24. AS 14.25.175(c) is repealed and reenacted to read: 04 (c) A ruling of the commissioner of administration to deny a waiver under (b) 05 of this section may be appealed to the office of administrative hearings. 06 * Sec. 25. AS 14.25.175(d) is amended to read: 07 (d) The office of administrative hearings [BOARD] may reverse the 08 commissioner of administration's decision to deny a waiver and may impose 09 conditions on granting a waiver that it considers equitable. These conditions may 10 include requiring the member or beneficiary to make additional contributions to the 11 plan [SYSTEM]. 12 * Sec. 26. AS 14.25.220(2) is amended to read: 13 (2) "actuarial adjustment" means the adjustment necessary to obtain 14 equality in value of the aggregate expected payments under two different forms of 15 pension payments, considering expected mortality and interest earnings on the basis of 16 assumptions, factors, and methods specified in regulations issued under the plan 17 [SYSTEM] that are formally adopted [UNDER AS 14.25.022] by the board and that 18 clearly preclude employer discretion in the determination of the amount of any 19 member's benefit; 20 * Sec. 27. AS 14.25.220(3) is amended to read: 21 (3) "administrator" means the [PERSON APPOINTED BY THE] 22 commissioner of administration or the commissioner's designee under AS 14.25.003 23 [AS 14.25.015]; 24 * Sec. 28. AS 14.25.220(9) is amended to read: 25 (9) "board" means the Alaska Retirement Management [ALASKA 26 TEACHERS' RETIREMENT] Board established under AS 37.10.210 [AS 14.25.035]; 27 * Sec. 29. AS 14.25.220(40) is amended to read: 28 (40) "supplemental contribution account" means the account 29 maintained by the plan [SYSTEM] to record the supplemental contributions of each 30 member, including interest and adjustments to the account [IN ACCORDANCE 31 WITH AS 14.25.170];
01 * Sec. 30. AS 14.25.220(42) is amended to read: 02 (42) "teacher" and "member" are used interchangeably under this 03 chapter and mean a person eligible to participate in the system and who is covered by 04 the system, limited to 05 (A) a certificated full-time or part-time elementary or 06 secondary teacher, a certificated school nurse, or a certificated person in a 07 position requiring a teaching certificate as a condition of employment in a 08 public school of the state, the Department of Education and Early 09 Development, or the Department of Labor and Workforce Development; 10 (B) a full-time or part-time teacher of the University of Alaska 11 or a person occupying a full-time administrative position at the University of 12 Alaska that requires academic standing; the approval of the administrator must 13 be obtained before an administrative position qualifies for membership in the 14 system; however, a teacher or administrative person at the university who is 15 participating in a [THE OPTIONAL] university retirement program under 16 AS 14.40.661 - 14.40.799 is not a member under this system; 17 (C) a state legislator who elects membership under 18 AS 14.25.040(b); 19 * Sec. 31. AS 14.25.220 is amended by adding a new paragraph to read: 20 (46) "plan" means the retirement benefit plan established under 21 AS 14.25.009 - 14.25.220. 22 * Sec. 32. AS 14.25 is amended by adding new sections to read: 23 Article 3. Teachers First Hired on or after July 1, 2005. 24 Sec. 14.25.310. Applicability of AS 14.25.310 - 14.25.590. The provisions of 25 AS 14.25.310 - 14.25.590 apply only to teachers who first become members on or 26 after July 1, 2005, or to members who transfer into the defined contribution plan under 27 AS 14.25.540. 28 Sec. 14.25.320. Defined contribution retirement plan established. (a) A 29 defined contribution retirement plan for teachers of the state is created. 30 (b) The defined contribution retirement plan includes a plan in which savings 31 are accumulated in an individual account for the exclusive benefit of the member or
01 beneficiaries. The plan is established effective July 1, 2005, at which time 02 contributions by employers and members begin. 03 (c) The defined contribution retirement plan is intended to qualify under 26 04 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified retirement plan 05 established and maintained by the state for its employees and for the employees of 06 school districts and regional educational attendance areas in the state. 07 (d) An amendment to the defined contribution retirement plan does not 08 provide a person with a vested right to a benefit if the Internal Revenue Service 09 determines that the amendment will result in disqualification of the plan under the 10 Internal Revenue Code. 11 Sec. 14.25.330. Membership. (a) A teacher who first becomes a member on 12 or after July 1, 2005, shall participate in the plan as a member of the defined 13 contribution retirement plan. 14 (b) A teacher who is participating in a university retirement program under 15 AS 14.40.661 - 14.40.799 may not participate as a member of the defined contribution 16 retirement plan. 17 Sec. 14.25.340. Contributions by members. (a) Each member shall 18 contribute to the member's individual account an amount equal to eight percent of the 19 member's compensation from July 1 to the following June 30. 20 (b) Subject to the limitations on contributions under AS 14.25.380, a member 21 may elect to make additional contributions to the member's individual account. 22 (c) The employer shall deduct the contribution from the member's 23 compensation at the end of each payroll period, and the contribution shall be credited 24 by the administrator to the member's individual account. The contributions shall be 25 deducted from member's compensation before the computation of applicable federal 26 taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A 27 member may not have the option of making the payroll deduction directly in cash 28 instead of having the contribution picked up by the employer. 29 Sec. 14.25.345. Employment contributions mandatory. (a) Contributions 30 of members shall be made by payroll deductions. Each member shall be considered to 31 consent to payroll deductions. It is of no consequence that a payroll deduction may
01 cause the compensation paid in cash to a member to be reduced below the minimum 02 required by law. 03 (b) Payment of a member's compensation, less payroll deductions, is a full and 04 complete discharge and satisfaction of all claims and demands by the member relating 05 to remuneration of services during the period covered by the payment, except with 06 respect to the benefits provided under the plan. 07 Sec. 14.25.350. Contributions by employers. (a) An employer shall 08 contribute to each member's individual account an amount equal to 4.5 percent of the 09 member's compensation from July 1 to the following June 30. 10 (b) An employer shall also contribute an amount equal to 1.75 percent of each 11 member's compensation from July 1 to the following June 30 to pay for retiree major 12 medical insurance. This contribution shall be paid into the group health and life 13 benefits fund established by the commissioner of administration under AS 39.30.095 14 and shall be accounted for in accordance with regulations established by the 15 commissioner. 16 (c) An employer shall also make contributions to the health reimbursement 17 arrangement plan under AS 39.30.300. 18 Sec. 14.25.360. Rollover contributions and distributions. (a) A teacher 19 entering the plan may elect, at the time and in the manner prescribed by the 20 administrator, to have all or part of a direct rollover distribution from an eligible 21 retirement plan owned by the member paid directly into the member's individual 22 account. 23 (b) Rollover contributions do not count as a purchase of membership service 24 for the purpose of determining years of service. 25 (c) A distributee may elect, at the time and in the manner prescribed by the 26 administrator, to have all or part of a direct rollover distribution paid directly to an 27 eligible retirement plan specified by the distributee in the direct rollover. 28 (d) In this section, 29 (1) "direct rollover" means the payment of an eligible rollover 30 distribution by the plan to an eligible retirement plan specified by a distributee who is 31 eligible to elect a direct rollover;
01 (2) "distributee" means a member, or a beneficiary who is the 02 surviving spouse of the member, or an alternate payee; 03 (3) "eligible retirement plan" means 04 (A) a conduit individual retirement account described in 26 05 U.S.C. 408(d)(3)(A); 06 (B) an annuity plan described in 26 U.S.C. 403(a); 07 (C) a qualified trust described in 26 U.S.C. 401(a); 08 (D) an annuity plan described in 26 U.S.C. 403(b); or 09 (E) a governmental plan described in 26 U.S.C. 457(b); 10 (4) "eligible rollover distribution" means a distribution of all or part of 11 a total account to a distributee, except for 12 (A) a distribution that is one of a series of substantially equal 13 installments payable not less frequently than annually over the life expectancy 14 of the distributee or the joint and last survivor life expectancy of the distributee 15 and the distributee's designated beneficiary, as defined in 26 U.S.C. 401(a)(9); 16 (B) a distribution that is one of a series of substantially equal 17 installments payable not less frequently than annually over a specified period 18 of 10 years or more; 19 (C) a distribution that is required under 26 U.S.C. 401(a)(9); 20 (D) the portion of any distribution that is not includable in 21 gross income; 22 (E) a distribution that is on account of hardship; and 23 (F) other distributions that are reasonably expected to total less 24 than $200 during a year. 25 Sec. 14.25.370. Transmittal of contributions. All contributions deducted in 26 accordance with AS 14.25.310 - 14.25.590 shall be transmitted to the plan for deposit 27 in the trust fund as soon as administratively feasible, but in no event later than 15 days 28 following the close of the payroll period. 29 Sec. 14.25.380. Limitations on contributions. Notwithstanding any other 30 provisions of this plan, the annual additions to each member's individual account 31 under this plan and under all defined contribution plans of the employer required to be
01 aggregated with the contributions from this plan under the provisions of 26 U.S.C. 415 02 may not exceed, for any limitation year, the amount permitted under 26 U.S.C. 415 at 03 any time. If the amount of a member's defined contribution plan contributions exceeds 04 the limitation of 26 U.S.C. 415(c) for any limitation year, the administrator shall take 05 any necessary remedial action to correct an excess contribution. The provisions of 26 06 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified 07 defined contribution plans of governmental employees are incorporated as part of the 08 terms and conditions of the plan. 09 Sec. 14.25.390. Vesting. (a) A participating member is immediately and 10 fully vested in that member's contributions and related earnings. 11 (b) A member is fully vested in the employer contributions made on that 12 member's behalf, and related earnings, after five years of service. A member is 13 partially vested in the employer contributions made on that member's behalf, and the 14 related earnings, in the ratio of 15 (1) 25 percent with two years of service; 16 (2) 50 percent with three years of service; and 17 (3) 75 percent with four years of service. 18 Sec. 14.25.400. Investment of individual accounts. (a) The board shall 19 provide a range of investment options and permit a participant to exercise investment 20 control over the participant's assets in the member's individual account as provided in 21 this section. If a participant exercises control over the assets in the individual account, 22 the participant is not considered a fiduciary for any reason on the basis of exercising 23 that control. 24 (b) A participant may direct investment of plan funds held in an account 25 among available investment funds in accordance with rules established by the board. 26 (c) A participant may elect to change or transfer all or a portion of the 27 participant's existing account balance among available investment funds not more 28 often than once each day in accordance with the rules established by the administrator. 29 Only the last election received by the administrator before the transmittal of 30 contributions to the trust fund for allocation to the individual account will be used to 31 direct the investment of the contributions received.
01 (d) Except to the extent clearly set out in the terms of the investment plans 02 offered by the employer to the employee, the employer is not liable to the participant 03 for investment losses if the prudent investment standard has been met. 04 (e) The employer, administrator, state, board, or a person or entity who is 05 otherwise a fiduciary is not liable by reason for any participant's investment loss that 06 results from the participant's directing the investment of plan assets allocated to the 07 participant's account. 08 (f) To the extent that a member's individual account has been divided as 09 provided in a qualified domestic relations order between participants, each participant 10 shall be treated as the holder of a separate individual account for purposes of 11 investment yields, decisions, transfers, and time limitations imposed by this section. 12 Sec. 14.25.410. Distribution election at termination. (a) A member is 13 eligible to elect distribution of the member's account in accordance with this section 14 60 days after termination of employment. 15 (b) Notwithstanding (a) of this section, distribution of all or a portion of the 16 individual account of a member may take place before the 60th day after the 17 termination of employment with the approval of the administrator if the member 18 makes a written request for a distribution under this subsection. The member's spouse 19 must consent to the request in writing if the member is married. Distribution of an 20 individual account may only be made on account of an immediate and heavy financial 21 need of the member for the following reasons and in the amount the need is 22 demonstrated for 23 (1) medical care described in 26 U.S.C. 213(d) incurred by the 24 member, the member's spouse, or the member's dependent, or necessary to obtain that 25 medical care; 26 (2) the purchase of a principal residence for the member; 27 (3) postsecondary education tuition and related educational fees for the 28 next 12-month period for the member, the member's spouse, or a dependent of the 29 member; in this paragraph, "dependent" has the meaning given in 26 U.S.C. 152; 30 (4) prevention of the eviction of the member from the member's 31 principal residence or foreclosure on the mortgage of the member's principal
01 residence; or 02 (5) any need prescribed by the United States Department of the 03 Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of 04 general applicability that satisfies the safe harbor definition of hardship under 05 regulations adopted under 26 U.S.C. 401(k). 06 (c) If a member dies before benefits commence, the member's beneficiary is 07 immediately eligible to elect distribution of the member's share of the member's 08 individual account. 09 (d) Distributions are payable to an alternate payee in accordance with the 10 terms and conditions of a qualified domestic relations order that is received and 11 approved by the administrator as specified in AS 14.25.460. 12 (e) Distributions that are being paid to a member may not be affected by the 13 member's subsequent reemployment with the employer. Upon reemployment, a new 14 individual account shall be established for the member to which any future 15 contributions shall be allocated. Upon subsequent termination of employment, the 16 member's new individual account shall be distributed in accordance with this section. 17 Sec. 14.25.420. Forms of distribution. (a) A participant may elect to receive 18 distribution of the participant's share of the individual account in a 19 (1) lump sum payment, which is a single payment of the entire balance 20 in the account; 21 (2) periodic lump sum payment, which is a payment of a portion of the 22 balance in the account, not more than twice each year; 23 (3) period certain annuity payment, which is an annuity payable in a 24 fixed number of monthly installments for a duration of 60, 120, or 180 months; 25 (4) life annuity with a period certain payment, which is an annuity 26 payable until the later of the first day of the month in which the annuitant's death 27 occurs, or the date on which the payment of a fixed number of monthly installments is 28 completed; the period certain for installments is 120 or 180 months; 29 (5) single life annuity payment, which is an annuity payable monthly 30 until the first of the month in which the annuitant's death occurs; or 31 (6) joint and survivor annuity payment, which is an annuity payable
01 monthly to the member until the first of the month in which the member's death 02 occurs; after the member's death, a survivor annuity equal to 50 percent or 100 percent 03 of the member's benefit, as previously elected by the member, shall be paid monthly to 04 the joint annuitant for the remainder of the survivor's lifetime. 05 (b) Upon the death of an annuitant whose payments have commenced, an 06 annuitant's beneficiary shall receive further payments only to the extent provided in 07 accordance with the form of payment that was being made to the annuitant. The 08 remaining portion of the interest shall continue to be distributed at least as rapidly as 09 under the method of distribution being used before the annuitant's death. 10 (c) If a participant dies before the distribution commencement date, 11 distribution of the participant's entire interest to a beneficiary shall be payable in any 12 form other than a joint and survivor annuity. 13 (d) If an unmarried member or other participant fails to elect a form of 14 payment before the distribution commencement date, the account shall be paid to a 15 beneficiary in the form of a lump sum to the extent required by the minimum 16 distribution requirements set out in the Internal Revenue Code. If a married member 17 fails to elect a form of payment before the distribution commencement date, the 18 account shall be paid in the form of a 50 percent joint and survivor annuity, with the 19 member's spouse as the joint annuitant. 20 Sec. 14.25.430. Manner of electing distributions. (a) Any election or any 21 alteration or revocation of a prior election by a participant for any purpose under this 22 plan shall be on forms or made in a manner prescribed for that purpose by the plan 23 administrator. To be effective, the forms required or the required action for any 24 purpose under this plan must be completed and received in accordance with 25 regulations adopted by the commissioner of administration. 26 (b) At any time, but not less than seven days before the distribution 27 commencement date, a member, alternate payee, or beneficiary may change 28 (1) the form of payment election; 29 (2) an election to commence benefits; or 30 (3) the joint annuitant designation. 31 (c) Changes in elections are not allowed on or after seven days before the
01 distribution commencement date. 02 Sec. 14.25.440. Distribution requirements. (a) Payments to a participant 03 shall commence as soon as administratively feasible following the distribution 04 commencement date. The distribution commencement date is the first date on which 05 one of the following occurs: 06 (1) a member meets the requirements of AS 14.25.410 and has made a 07 complete application for payment under AS 14.25.430; 08 (2) a participant has elected to defer receipt of the account to a date 09 specified, the date has been attained, and the participant has made a complete 10 application for payment; 11 (3) a member attains normal retirement age and has not made an 12 application for payment or elected to defer receipt of the account to a date later than 13 normal retirement age; 14 (4) a member's beneficiary does not make an application for benefits 15 and five years have elapsed since the member's death; 16 (5) notwithstanding (a) of this section, a participant whose account has 17 a balance of $1,000 or less meets the requirements of AS 14.25.410, at which time the 18 participant must take payment of the participant's account. 19 (b) The entire interest of a participant must be distributed or must begin to be 20 distributed not later than the member's required beginning date. 21 (c) If a member dies after the distribution of the member's interest has begun 22 but before the distribution has been completed, the remaining portion of the interest 23 shall continue to be distributed at least as rapidly as under the method of distribution 24 being used before the member's death. 25 (d) If a member has made a distribution election and dies before the 26 distribution of the member's interest begins, distribution of the member's entire interest 27 shall be completed by December 31 of the calendar year containing the fifth 28 anniversary of the member's death. However, if any portion of the member's interest 29 is payable to a designated beneficiary, distributions may be made over the life of the 30 designated beneficiary or over a period certain not greater than the life expectancy of 31 the designated beneficiary, commencing on or before December 31 of the calendar
01 year immediately following the calendar year in which the member died, and, if the 02 designated beneficiary is the member's surviving spouse, the date distributions are 03 required to begin may not be earlier than the later of December 31 of the calendar year 04 (1) immediately following the calendar year in which the member died, or (2) in which 05 the member would have attained 70 1/2 years of age, whichever is earlier. If the 06 surviving spouse dies after the member but before payments to the spouse have begun, 07 the provisions of this subsection apply as if the surviving spouse were the member. 08 An amount paid to a child of the member shall be treated as if it were paid to the 09 surviving spouse if the amount becomes payable to the surviving spouse when the 10 child reaches the age of majority. 11 (e) If a member has not made a distribution election before the member's 12 death, the member's designated beneficiary must elect the method of distribution not 13 later than December 31 of the calendar year (1) in which distributions would be 14 required to begin under this section, or (2) that contains the fifth anniversary of the 15 date of death of the member, whichever is earlier. If the member does not have a 16 designated beneficiary or if the designated beneficiary does not elect a method of 17 distribution, distribution of the member's entire interest must be completed by 18 December 31 of the calendar year containing the fifth anniversary of the member's 19 death. 20 (f) For purposes of (b) of this section, distribution of a member's interest is 21 considered to begin (1) on the member's required beginning date, or (2) if the 22 designated beneficiary is the member's surviving spouse and the surviving spouse dies 23 after the member but before payments to the spouse have begun, on the date 24 distribution is required to begin to the surviving spouse. If distribution in the form of 25 an annuity irrevocably commences to the member before the required beginning date, 26 the date distribution is considered to begin is the date that the distribution actually 27 commences. 28 (g) Notwithstanding any contrary provisions of AS 14.25.310 - 14.25.590, the 29 requirements of this section apply to all distributions of a member's interest and take 30 precedence over any inconsistent provisions of AS 14.25.310 - 14.25.590. 31 (h) All distributions required under this section are determined and made in
01 accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, 02 including any minimum distribution incidental benefit requirement. 03 (i) In this section, 04 (1) "designated beneficiary" means the individual who is designated as 05 the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations 06 adopted under that statute; 07 (2) "required beginning date" means the first day of April of the 08 calendar year following the calendar year in which the member either attains 70 1/2 09 years of age or actually terminates employment, whichever is later. 10 Sec. 14.25.450. Designation of beneficiary. (a) Each participant shall have 11 the right to designate a beneficiary and shall have the right, at any time, to revoke the 12 designation or to substitute another beneficiary, subject to the following limitation: if 13 a married member elects a nonspouse beneficiary, the value of the benefit payable to 14 the beneficiary may not exceed 50 percent of the member's portion of the account 15 balance, and the member's spouse shall automatically be considered the beneficiary for 16 the remaining 50 percent of the account balance, unless the spouse consents to the 17 beneficiary designation in a writing that is notarized or witnessed by the administrator. 18 If the spouse consents in this manner, a married member may designate a nonspouse 19 beneficiary for the entire benefit or any portion of the benefit as part of an available 20 form of payment contained in this plan, 21 (1) except to the extent a qualified domestic relations order filed with 22 the administrator provides for payment to a former spouse or other dependent of the 23 member; or 24 (2) unless the member filed a revocation of beneficiary accompanied 25 by a written consent to the revocation from the present spouse and each person entitled 26 under the order; however, consent of the present spouse is not required if the member 27 and the present spouse had been married for less than one year on the date of the 28 member's death and if the member established when filing the revocation that the 29 member and the present spouse were not cohabiting. 30 (b) Except as provided in (a) of this section, the member may change or 31 revoke the designation without notice to the beneficiary or beneficiaries at any time.
01 If a member designates more than one beneficiary, each shares equally unless the 02 member specifies a different allocation or preference. The designation of a 03 beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a 04 beneficiary shall be made on a form provided by the administrator and is not effective 05 until filed with the administrator. 06 (c) If a member fails to designate a beneficiary, or if no designated beneficiary 07 survives the member, the death benefit shall be paid 08 (1) to the surviving spouse or, if there is none surviving; 09 (2) to the surviving children of the member in equal parts or, if there 10 are none surviving; 11 (3) to the surviving parents in equal parts or, if there are none 12 surviving; 13 (4) to the estate. 14 (d) A person claiming entitlement to benefits payable under AS 14.25.310 - 15 14.25.590 as a consequence of a member's death shall provide the administrator with a 16 marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. 17 Documents establishing entitlement may be filed with the administrator immediately 18 after a change in the member's marital status. If the administrator does not receive 19 notification of a claim before the date 10 days after the member's death, the person 20 claiming entitlement is not entitled to receive from the division of retirement and 21 benefits any benefit already paid by the administrator. 22 Sec. 14.25.460. Rights under qualified domestic relations order. (a) 23 Notwithstanding the nonalienation provisions in AS 14.25.500(a), the administrator 24 may direct that benefits be paid to someone other than a member or beneficiary under 25 a valid qualified domestic relations order that is executed by the judge of a competent 26 court in accordance with applicable state law and that has been accepted by the 27 administrator. 28 (b) The administrator shall determine whether an order meets the requirements 29 of this section within a reasonable period after receiving an order. The administrator 30 shall notify the member and any alternate payee that an order has been received and 31 indicate to the member and any alternate payee when the order is accepted. A separate
01 account for the alternate payee portion shall be established as soon as administratively 02 feasible after the order has been accepted by the administrator. 03 Sec. 14.25.470. Eligibility to elect medical benefits. (a) A member is 04 eligible to elect the medical benefits under AS 14.25.480 if the member 05 (1) has at least 30 years of service; or 06 (2) is 65 years of age and has at least 10 years of service. 07 (b) A member's surviving spouse is eligible to elect medical benefits under 08 AS 14.25.480 if the member had elected, or was eligible to elect, medical benefits at 09 the time of the member's death. 10 (c) A member shall elect or reject medical benefits on the forms and in the 11 manner prescribed by the administrator. The decision to elect or reject benefits is 12 irrevocable. 13 (d) Election of the retiree major medical insurance plan is not required in 14 order to elect participation in the health reimbursement arrangement. 15 (e) A person eligible to elect medical benefits is not required to participate in 16 the health reimbursement arrangement in order to elect participation in the retiree 17 major medical insurance plan. 18 (f) An eligible person shall make the irrevocable election to participate or not 19 participate in the retiree major medical insurance by reaching 70 1/2 years of age, or 20 upon termination of employment, whichever is later. 21 Sec. 14.25.480. Medical benefits. (a) The medical benefits available to 22 eligible persons are access to the retiree major medical insurance plan and to the 23 health reimbursement arrangement under AS 39.30.300. Access to the retiree major 24 medical insurance plan means that an eligible person may not be denied insurance 25 coverage except for failure to pay the required premium. 26 (b) Retiree major medical insurance plan coverage elected by an eligible 27 member under this section covers the eligible member, the spouse of the eligible 28 member, and the dependent children of the eligible member. 29 (c) Retiree major medical insurance plan coverage elected by a surviving 30 spouse of an eligible member under this section covers the surviving spouse and the 31 dependent children of the eligible member who are dependent on the surviving spouse.
01 (d) Major medical insurance coverage takes effect on the first day of the 02 month following the date of the administrator's approval of the election and stops 03 when the person who elects coverage dies or fails to make a required premium 04 payment. 05 (e) The coverage for persons 65 years of age or older is the same as that 06 available for persons under 65 years of age. The benefits payable to those persons 65 07 years of age or older supplement any benefits provided under the federal old age, 08 survivors and disability insurance program. 09 (f) The medical and optional insurance premiums owed by the person who 10 elects coverage may be deducted from the health reimbursement arrangement. If the 11 amount of the health reimbursement arrangement becomes insufficient to pay the 12 premiums, the person who elects coverage under (a) of this section shall pay the 13 premiums directly. 14 (g) The cost of premiums for retiree major medical insurance coverage for an 15 eligible member or surviving spouse who is 16 (1) not eligible for Medicare is an amount equal to the full monthly 17 group premiums for retiree major medical insurance coverage; 18 (2) eligible for Medicare, is the following percentage of the premium 19 amounts established for retirees who are eligible for Medicare: 20 (A) 30 percent if the member had 10 or more, but less than 15, 21 years of service; 22 (B) 25 percent if the member had 15 or more, but less than 20, 23 years of service; 24 (C) 20 percent if the member had 20 or more, but less than 25, 25 years of service; 26 (D) 15 percent if the member had 25 or more, but less than 30, 27 years of service; 28 (E) 10 percent if the member had 30 or more years of service. 29 (h) The eligibility for retiree major medical insurance coverage for an 30 alternate payee under a qualified domestic relations order shall be determined based 31 on the eligibility of the member to elect coverage. The alternate payee shall pay the
01 full monthly premium for retiree major medical insurance coverage. 02 (i) A person who is entitled to retiree major medical insurance coverage shall 03 (1) be informed by the administrator in writing 04 (A) that the health insurance coverage available to retired 05 members may be different from the health insurance coverage provided to 06 employees; 07 (B) of time limits for selecting optional health insurance 08 coverage and whether the election is irrevocable; and 09 (2) indicate in writing on a form provided by the administrator that the 10 person has received the information required by this subsection and whether the 11 person has chosen to receive optional health insurance coverage. 12 (j) The monthly group premiums for retiree major medical insurance coverage 13 are established by the administrator in accordance with AS 39.30.095. Nothing in 14 AS 14.25.310 - 14.25.590 guarantees a person who elects coverage under (a) of this 15 section a monthly group premium rate for retiree major medical insurance coverage 16 other than the premium in effect for the month in which the premium is due for 17 coverage for that month. 18 (k) In this section, "health reimbursement arrangement" means the plan 19 established in AS 39.30.300. 20 Sec. 14.25.490. Amendment and termination of plan. (a) The state has the 21 right to amend the plan at any time and from time to time, in whole or in part, 22 including the right to make retroactive amendments referred to in 26 U.S.C. 401(b). 23 (b) The plan administrator may not modify or amend the plan retroactively in 24 such a manner as to reduce the benefits of any member accrued to date under the plan 25 by reason of contributions made before the modification or amendment except to the 26 extent that the reduction is permitted by the Internal Revenue Code. 27 (c) The state may, in its discretion, terminate the plan in whole or part at any 28 time without liability for the termination. If the plan is terminated, all investments 29 remain in force until all individual accounts have been completely distributed under 30 the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer. 31 (d) Any contribution made by an employer to the plan because of a mistake of
01 fact must be returned to the employer by the administrator within one year after the 02 contribution or discovery, whichever is later. 03 Sec. 14.25.500. Exclusive benefit. (a) The corpus or income of the assets 04 held in trust as required by the plan may not be diverted or used for other than the 05 exclusive benefit of the participants. 06 (b) If plan benefits are provided through the distribution of annuity or 07 insurance contracts, any refunds or credits in excess of plan benefits due to dividends, 08 earnings, or other experience rating credits, or surrender or cancellation credits, shall 09 be paid to the trust fund. 10 (c) The assets of the plan may not be used to pay premiums or contributions of 11 the employer under another plan maintained by the employer. 12 Sec. 14.25.510. Nonguarantee of returns, rates, or benefit amounts. The 13 plan created by AS 14.25.310 - 14.25.590 is a defined contribution plan, not a defined 14 benefit plan. The amount of money in the account of a participant depends on the 15 amount of contributions and the rate of return from investments of the account that 16 varies over time. If benefits are paid in the form of an annuity, the benefit amount 17 payable is dependent on the amount of money in the account and the interest rates 18 applied and service fees charged by the annuity payor at the time benefits are first 19 paid. Nothing in this plan guarantees a participant 20 (1) a rate of return or interest rate other than that actually earned by the 21 account of the participant, less applicable administrative expenses; or 22 (2) an annuity based on interest rates or service charges other than 23 interest rates available from and service charges by the annuity payor in effect at the 24 time the annuity is paid. 25 Sec. 14.25.520. Nonguarantee of employment. The provisions of 26 AS 14.25.310 - 14.25.590 are not a contract of employment between an employer and 27 an employee, nor do they confer a right of an employee to be continued in the 28 employment of an employer, nor are they a limitation of the right of an employer to 29 discharge an employee with or without cause. 30 Sec. 14.25.530. Fraud. A person who knowingly makes a false statement or 31 falsifies or permits to be falsified a record of this plan in an attempt to defraud the plan
01 is guilty of a class A misdemeanor. 02 Sec. 14.25.540. Transfer into defined contribution retirement plan by 03 nonvested members of defined benefit retirement plan. (a) Subject to (g) of this 04 section, an active member of the defined benefit retirement plan of the teachers' 05 retirement system is eligible to participate in the defined contribution retirement plan 06 established under AS 14.25.310 - 14.25.590 if that member has not vested. 07 Participation in the defined contribution retirement plan is in lieu of participation in 08 the defined benefit retirement plan established under AS 14.25.009 - 14.25.220. 09 (b) A member who has vested in a defined benefit retirement plan is not 10 eligible to transfer under this section. 11 (c) Each eligible member who elects to participate in the defined contribution 12 retirement plan shall have transferred to a new account the present value of the 13 member contribution account balance held in trust for the member under the defined 14 benefit retirement plan of the teachers' retirement system. A matching employer 15 contribution shall be made on behalf of that employee to the new account. Upon a 16 transfer, all service credit previously earned under the defined benefit retirement plan 17 shall be nullified for purposes of entitlement to a future benefit under the defined 18 benefit retirement plan but shall be credited for purposes of eligibility to elect medical 19 benefits under AS 14.25.470. An eligible member whose accounts are subject to a 20 qualified domestic relations order may not make an election to participate in the 21 defined contribution retirement plan under this subsection unless the qualified 22 domestic relations order is amended or vacated and court-certified copies of the order 23 are received by the administrator. 24 (d) As directed by the participant, the board shall transfer or cause to be 25 transferred the appropriate amounts to the designated account. The board shall 26 establish transfer procedures by regulation, but the actual transfer may not be later 27 than 30 days after the effective date of the member's participation in the defined 28 contribution retirement plan unless the major financial markets for securities available 29 for a transfer are seriously disrupted by an unforeseen event that also causes the 30 suspension of trading on any national securities exchange in the country where the 31 securities were issued. In that event, the 30-day period of time may be extended by a
01 resolution of the board of trustees. Transfers are not commissionable or subject to 02 other fees and may be in the form of securities or cash as determined by the board. 03 Securities shall be valued as of the date of receipt in the participant's account. 04 (e) If the board or the administrator receives notification from the United 05 States Department of the Treasury, Internal Revenue Service, that this section or a 06 portion of this section will cause the retirement system under this chapter, or a portion 07 of the retirement system under this chapter, to be disqualified for tax purposes under 08 the Internal Revenue Code, the portion that will cause the disqualification does not 09 apply, and the board and the administrator shall notify the presiding officers of the 10 legislature. 11 (f) The election to participate in the defined contribution retirement plan must 12 be made in writing on forms and in the manner prescribed by the administrator. 13 Before accepting an election to participate in the defined contribution retirement plan, 14 the administrator must provide the employee planning on making an election to 15 participate in the defined contribution retirement plan with information, including 16 calculations to illustrate the effect of moving the employee's retirement plan from the 17 defined benefit retirement plan to the defined contribution retirement plan as well as 18 other information to clearly inform the employee of the potential consequences of the 19 employee's election. An election made under this subsection to participate in the 20 defined contribution retirement plan is irrevocable. Upon making the election, the 21 participant shall be enrolled as a member of the defined contribution retirement plan, 22 the member's participation in the plan shall be governed by the provisions of 23 AS 14.25.310 - 14.25.590, and the member's participation in the defined benefit 24 retirement plan under AS 14.25.009 - 14.25.220 shall terminate. The participant's 25 enrollment in the defined contribution retirement plan shall be effective the first day of 26 the month after the administrator receives the completed enrollment forms. An 27 election made by an eligible member who is married is not effective unless the 28 election is signed by the individual's spouse. 29 (g) A member may make an election under this section only if the member's 30 employer participates in both the defined benefits retirement plan and the defined 31 contribution retirement plan and consents to transfers under this section. The
01 employer shall notify the administrator if the employer consents to allowing the 02 employer's members to choose to transfer from the defined benefits retirement plan to 03 the defined contribution retirement plan under this section. An employer's notice to 04 allow transfers is irrevocable and applicable to all eligible employees of the employer. 05 (h) In this section, 06 (1) "defined benefit retirement plan" means the retirement plan 07 established in AS 14.25.009 - 14.25.220; 08 (2) "defined contribution retirement plan" means the retirement plan 09 established in AS 14.25.310 - 14.25.590. 10 Sec. 14.25.550. Membership in teachers' and public employees' 11 retirement systems. A person who is employed at least half-time in the public 12 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990) during the 13 same period that the person is employed at least half-time in a position in the teachers' 14 defined contribution retirement plan (AS 14.25.310 - 14.25.590) shall receive credited 15 service under each plan for half-time employment. However, the amount of credited 16 service a person receives under the public employees' defined contribution retirement 17 plan during a school year may not exceed the amount necessary, when added to the 18 amount of credited service earned during the school year under the teachers' defined 19 contribution retirement plan, to equal one year of credited service. 20 Sec. 14.25.560. Legislators who have been teachers. (a) A state legislator 21 who was an active member of the defined contribution plan under other sections of 22 AS 14.25.310 - 14.25.590 within the 12 months immediately preceding election to 23 office may, subject to the requirements of (b) of this section, elect to be an active 24 member of the teachers' defined contribution retirement plan for as long as the state 25 legislator serves continuously as a state legislator if, within 90 days after taking the 26 oath of office, 27 (1) the state legislator directs the employer in writing to 28 (A) pay into this plan the employer contributions required for a 29 member under AS 14.25.310 - 14.25.590; and 30 (B) deduct from the state legislator's salary and pay into this 31 plan
01 (i) the employee contributions required for a member 02 under AS 14.25.310 - 14.25.590; and 03 (ii) an amount equal to the difference between the total 04 employer and state contributions required for a member under 05 AS 14.25.310 - 14.25.590 and the employer contributions that would be 06 required under the public employees' defined contribution retirement 07 plan (AS 39.35.700 - 39.35.990) if the legislator were covered under 08 that plan; and 09 (2) notice is given the administrator in writing. 10 (b) A state legislator is not entitled to elect membership under (a) of this 11 section if the state legislator is covered for the same period of service under the public 12 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990). An 13 election of membership under (a) of this section is retroactive to the date the state 14 legislator took the oath of office. A state legislator may not receive membership credit 15 under (a) of this section for legislative service performed before the legislative session 16 during which the state legislator elected membership under (a) of this section. In order 17 to continue in membership service under (a) of this section, the state legislator must 18 earn at least 0.3 years of membership service under other sections of AS 14.25.310 - 19 14.25.590 during each five-year period. 20 Sec. 14.25.570. Participation by National Education Association 21 employees. An employee or former employee of the National Education Association 22 of Alaska may participate in the teachers' defined contribution retirement plan under 23 AS 14.25.310 - 14.25.590 if the employee or former employee possesses or is eligible 24 to possess a teacher certificate under AS 14.20.020. 25 Sec. 14.25.580. Participation by Special Education Service Agency 26 employees. An employee of the Special Education Service Agency may participate in 27 the system under this chapter if the employee possesses or is eligible to possess a 28 teacher certificate under AS 14.20.020. 29 Sec. 14.25.590. Definitions. In AS 14.25.310 - 14.25.590, unless the context 30 requires otherwise, 31 (1) "administrator" has the meaning given in AS 14.25.220;
01 (2) "alternate payee" means a person entitled to a portion of the 02 distribution from an individual account under a qualified domestic relations order; 03 (3) "annuitant" means a member, beneficiary or alternate payee who is 04 receiving a benefit under this plan; 05 (4) "beneficiary" means the person or persons entitled to receive 06 benefits that may be due from the plan upon the death of the member or alternate 07 payee; 08 (5) "board" has the meaning given in AS 14.25.220; 09 (6) "calendar year" has the meaning given in AS 39.35.680; 10 (7) "compensation" 11 (A) means 12 (i) the total remuneration earned by an employee for 13 personal services rendered, including cost-of-living differentials, as 14 reported on the employee's Federal Income Tax Withholding Statement 15 (Form W-2) from the employer for the calendar year; 16 (ii) the member contribution to the teachers' retirement 17 system under AS 14.25.340; 18 (B) does not include retirement benefits, severance pay or other 19 separation bonuses, welfare benefits, per diem, expense allowances, workers' 20 compensation payments, payments for leave not used whether those leave 21 payments are scheduled payments, lump-sum payments, donations, or cash-ins, 22 any remuneration contributed by the employer for or on account of the 23 employee under this plan or under any other qualified or nonqualified 24 employee benefit plan, any remuneration not specifically included above 25 which would have been excluded under 26 U.S.C. 3121(a) (Internal Revenue 26 Code) if the employer had remained in the Federal Social Security System, or 27 any remuneration paid by the employer in excess of the Social Security 28 Taxable Wage Base for the calendar year; 29 (C) notwithstanding (B) of this paragraph, includes any amount 30 that is contributed by the employer under a salary reduction agreement and that 31 is not includible in the gross income of the employee under 26 U.S.C. 125,
01 132(f)(4), 402(e)(3), 402(h)(1)(B) or 403(b) (Internal Revenue Code); the 02 annual compensation limitation for the member, which is so taken into account 03 for those purposes, may not exceed $200,000, as adjusted for the cost of living 04 in accordance with 26 U.S.C. 401(a)(17)(B) (Internal Revenue Code), with the 05 limitation for a fiscal year being the limitation in effect for the calendar year 06 within which the fiscal year begins; 07 (8) "dependent child" has the meaning given in AS 14.25.220; 08 (9) "distribution commencement date" has the meaning given in 09 AS 14.25.440(a); 10 (10) "employer" means a public school district, the Board of Regents 11 of the University of Alaska, the Department of Education and Early Development, or 12 the regional resource centers; 13 (11) "fund" means the assets of the plan; 14 (12) "individual account" means the total maintained by the plan in an 15 investment account within the trust fund, established for each member for the purposes 16 of allocation of the member's contributions, employer contributions on behalf of the 17 member, and earnings credited to each of those contributions, investment gains and 18 losses, and expenses, as well as reporting of the member's benefit under the plan; 19 (13) "Internal Revenue Code" has the meaning given in AS 14.25.220; 20 (14) "investment funds" means those separate funds that are provided 21 within and that make up the trust fund and that are established for the purpose of 22 directing investment through the exercise of the sole control of a member, beneficiary, 23 or alternate payee under the terms of the plan and trust agreement; 24 (15) "limitation year" means the year for which contributions are made 25 to a member's individual account as reported to the Internal Revenue Service under the 26 limits described in 26 U.S.C. 415(c); 27 (16) "member" means an employee of an employer or a former 28 employee of an employer who retains a right to benefits under the plan; 29 (17) "membership service" means full-time or part-time employment 30 with an employer in the plan; 31 (18) "normal retirement age" means 65 years of age;
01 (19) "participant" means the person who has a vested right to an 02 individual account, such as a member, an alternate payee if the account is subject to a 03 qualified domestic relations order, the member's beneficiary if the member is 04 deceased, or an alternate payee's beneficiary if the alternate payee is deceased; 05 (20) "plan" means the retirement benefit plan established under 06 AS 14.25.310 - 14.25.590; 07 (21) "prudent investment standard" means the degree of care, skill, 08 prudence, and diligence under the circumstances then prevailing that a prudent person 09 acting in a like capacity and familiar with such matters would use in the conduct of an 10 enterprise of a like character and with like aims; 11 (22) "qualified domestic relations order" means a divorce or 12 dissolution judgment under AS 25.24, including an order approving a property 13 settlement, that 14 (A) creates or recognizes the existence of an alternate payee's 15 right to, or assigns to an alternate payee the right to, receive all or a portion of 16 the individual account, or the benefits payable with respect to a member; 17 (B) sets out the name and last known mailing address, if any, of 18 the member and of each alternate payee covered by the order; 19 (C) sets out the amount or percentage of the member's benefit, 20 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 21 manner in which that amount or percentage is to be determined; 22 (D) sets out the number of payments or period to which the 23 order applies; 24 (E) sets out the retirement plan to which the order applies; 25 (F) does not require any type or form of benefit or any option 26 not otherwise provided by AS 14.25.310 - 14.25.590; 27 (G) does not require an increase of benefits in excess of the 28 amount provided by AS 14.25.310 - 14.25.590; and 29 (H) does not require the payment, to an alternate payee, of 30 benefits that are required to be paid to another alternate payee under another 31 order previously determined to be a qualified domestic relations order;
01 (23) "retiree" means an eligible person who has elected to receive the 02 medical benefits under AS 14.25.480; 03 (24) "retirement fund" or "fund" means the fund in which the assets of 04 the plan, including income and interest derived from the investment of money, are 05 deposited and held; 06 (25) "school year" has the meaning given in AS 14.25.220; 07 (26) "system" has the meaning given in AS 14.25.220; 08 (27) "teacher" and "member" are used interchangeably under 09 AS 14.25.310 - 14.25.590 and mean a person eligible to participate in the plan and 10 who is covered by the plan, limited to 11 (A) a certificated full-time or part-time elementary or 12 secondary teacher, a certificated school nurse, or a certificated person in a 13 position requiring a teaching certificate as a condition of employment in a 14 public school of the state, the Department of Education and Early 15 Development, or the Department of Labor and Workforce Development; 16 (B) a full-time or part-time teacher of the University of Alaska 17 or a person occupying a full-time administrative position at the University of 18 Alaska that requires academic standing; the approval of the administrator must 19 be obtained before an administrative position qualifies for membership in the 20 plan; however, a teacher or administrative person at the university who is 21 participating in a university retirement program under AS 14.40.661 - 22 14.40.799 is not a member under this plan; 23 (28) "year of service" means service during the dates set for the school 24 year; partial-year service credit is given for membership service as follows: 25 (A) during any school year, 26 (i) less than nine days, no credit; 27 (ii) nine days or more but less than 27 days, 0.1 years; 28 (iii) 27 days or more but less than 45 days, 0.2 years; 29 (iv) 45 days or more but less than 63 days, 0.3 years; 30 (v) 63 days or more but less than 81 days, 0.4 years; 31 (vi) 81 days or more but less than 100 days, 0.5 years;
01 (vii) 100 days or more but less than 118 days, 0.6 years; 02 (viii) 118 days or more but less than 136 days, 0.7 03 years; 04 (ix) 136 days or more but less than 154 days, 0.8 years; 05 (x) 154 days or more but less than 172 days, 0.9 years; 06 (xi) 172 days or more, 1.0 years; 07 (B) service performed on a part-time basis of half time or more 08 shall be credited in proportion to the amount of credit that would have been 09 received for service performed on a full-time basis. 10 * Sec. 33. AS 14.40.280(c) is amended to read: 11 (c) Except as provided by (b) of this section, the monetary gifts, bequests, or 12 endowments that are made to the University of Alaska shall be managed and invested 13 by the Board of Regents. In carrying out its management and investment 14 responsibilities under this subsection, the Board of Regents has the same power and 15 obligations to carry out duties with respect to the endowments of the University of 16 Alaska as are provided to and required of the Alaska Retirement Management 17 [STATE PENSION INVESTMENT] Board under AS 37.10.210 [AS 14.25.180]. 18 * Sec. 34. AS 14.40.400(b) is amended to read: 19 (b) The Board of Regents is the fiduciary of the fund. The Board of Regents 20 shall account for and invest the fund. In carrying out its investment responsibilities 21 under this subsection, the Board of Regents has the same powers and duties with 22 respect to the fund as are provided to and required of the Alaska Retirement 23 Management [STATE PENSION INVESTMENT] Board under AS 37.10.210 24 [AS 14.25.180]. 25 * Sec. 35. AS 14.40.661 is amended to read: 26 Sec. 14.40.661. Authority of board. (a) The board may establish and 27 maintain [AN OPTIONAL] university retirement programs [PROGRAM] for 28 eligible employees in which retirement, health, and death benefits are provided 29 through the purchase of annuity contracts, either fixed, variable, or a combination of 30 fixed and variable. Participation in a university retirement [THE] program is in 31 place of participation in a state retirement system. The university may establish
01 retirement programs for new employees in a participating position at any time. 02 Retirement programs may be optional or mandatory. 03 (b) The board shall 04 (1) provide for the administration of the retirement programs 05 [PROGRAM], including procedures for resolving complaints from participating 06 employees; 07 (2) designate the company or companies to which payment of the 08 contributions required under AS 14.40.691 may be made, after considering the 09 (A) nature and extent of the rights and benefits that the 10 contracts will provide to employees who elect to participate and to their 11 beneficiaries; 12 (B) relation of the contractual rights and benefits to the 13 contributions to be made under AS 14.40.661 - 14.40.799; 14 (C) suitability of the contractual rights and benefits to the needs 15 and interests of employees who [ELECTING TO] participate and to the 16 interest of the university in the employment and retention of employees; 17 (D) ability of the designated company or companies to provide 18 rights and benefits under the contracts; and 19 (E) efficacy of the contracts in the recruitment and retention of 20 faculty and administrators; 21 (3) take other actions required to ensure that the retirement programs 22 comply with applicable provisions of 26 U.S.C. 401 - 417 [PROGRAM 23 QUALIFIES AS A QUALIFIED TRUST UNDER 26 U.S.C. 401(a)] (Internal 24 Revenue Code). 25 * Sec. 36. AS 14.40.661 is amended by adding a new subsection to read: 26 (c) The university retirement programs established under this section are not 27 subject to bargaining under AS 23.40.070 - 23.40.260 (Public Employment Relations 28 Act). 29 * Sec. 37. AS 14.40.671(b) is amended to read: 30 (b) An election under (a) of this section to participate in a university 31 retirement [THE] program is irrevocable. The election shall be made in writing on a
01 form provided by the board and approved for the state by the commissioner of 02 administration. The form must be filed with the university not [BOARD NO] later 03 than 30 days after the date on which the employee is notified by the university that 04 the employee is [FIRST BECOMES] eligible to participate in the program. A copy of 05 the form shall be delivered to the appropriate state retirement system. The election 06 becomes irrevocable on the date it is received by the board. 07 * Sec. 38. AS 14.40.671(c) is amended to read: 08 (c) Participation in a university retirement [THE ELECTION TO 09 PARTICIPATE IN THE] program constitutes a waiver of all rights and benefits under 10 the state retirement systems earned on or after the effective date of the election if the 11 participation is optional, or the effective date of the participation if the 12 participation is mandatory, and while the employee is participating in a university 13 retirement [THE] program. 14 * Sec. 39. AS 14.40.671(d) is amended to read: 15 (d) Except as provided in (e) of this section, if a nonvested member of a state 16 retirement system participates [ELECTS TO PARTICIPATE] in a university 17 retirement [THE] program, the employee may choose to transfer the amount in the 18 employee's contribution account to a university retirement [THE] program. If the 19 employee chooses to transfer the account, the appropriate state retirement system shall 20 pay to the university on behalf of the employee an amount equal to the balance in the 21 account. The payment must be made within 45 days after notice of the employee's 22 decision to transfer the employee's contribution account to a university 23 retirement program [THE ELECTION] is received by the state retirement system. 24 The financial officer of the university shall [IMMEDIATELY] pay the amount 25 received to the designated company or companies for the benefit of the employee as 26 soon as possible. An employee who transfers assets under this subsection may not 27 reclaim the corresponding service in the state retirement system if the employee is 28 reemployed under the state retirement system. 29 * Sec. 40. AS 14.40.671(e) is amended to read: 30 (e) An employee whose rights to transfer assets out of a state retirement 31 system are subject to a qualified domestic relations order is entitled to transfer assets
01 from the state retirement system to a university retirement [THE] program only if 02 the requirements for receiving a refund under AS 14.25.150(b), 14.25.360, [OR] 03 AS 39.35.200(c), or 39.35.760, as appropriate, are met. 04 * Sec. 41. AS 14.40.671(f) is amended to read: 05 (f) If a vested member of a state retirement system participates [ELECTS TO 06 PARTICIPATE] in a university retirement [THE] program, the employee ceases to 07 be an active member of the state retirement system on the effective date of the 08 participation in a university retirement [THE] program. The employee retains all 09 benefits accrued in the state retirement system. 10 * Sec. 42. AS 14.40.671(g) is amended to read: 11 (g) An employee who does not [ELECT TO] participate in a university 12 retirement [THE] program under this section becomes or remains a member of the 13 appropriate state retirement system. 14 * Sec. 43. AS 14.40.671 is amended by adding new subsections to read: 15 (h) Notwithstanding (a) of this section, the university may establish a 16 mandatory retirement program for new employees. 17 (i) Notwithstanding (b) of this section, the university may offer an employee 18 who made an election not to participate in an optional university retirement program at 19 the time the employee was eligible to participate in the program an option to enroll in 20 a different university retirement program first established by the university after the 21 effective date of this subsection. 22 * Sec. 44. AS 14.40.681 is amended to read: 23 Sec. 14.40.681. Retirement system membership. An [ELIGIBLE] employee 24 participating [ELECTING TO PARTICIPATE] in a university retirement [THE] 25 program may not participate in a state retirement system during the time the employee 26 is employed in a participating position. If the employee is later employed in a position 27 covered by a state retirement system that is not a participating position, the employee 28 may not continue to participate in a university retirement [THE] program and shall 29 begin to participate in the state retirement system. 30 * Sec. 45. AS 14.40.691(c) is amended to read: 31 (c) The board may specify that contributions required by this section are made
01 by a reduction in salary under 26 U.S.C. 403(b) or 26 U.S.C. 414(h)(2) (Internal 02 Revenue Code). 03 * Sec. 46. AS 14.40.701 is amended to read: 04 Sec. 14.40.701. Benefits. Payment of benefits to participants of the program 05 is the responsibility of the company or companies designated by the board and is not 06 the responsibility of the board, the university, or the state. The benefits are payable to 07 participants or their beneficiaries in accordance with the terms of the applicable 08 retirement plan document [ANNUITY CONTRACT OR CONTRACTS. 09 HOWEVER, RETIREMENT BENEFITS MUST BE PAID IN THE FORM OF A 10 LIFETIME INCOME. EXCEPT FOR DEATH BENEFITS, A SINGLE-SUM CASH 11 PAYMENT IS NOT PERMITTED UNDER THIS SECTION]. 12 * Sec. 47. AS 14.40.799(3) is amended to read: 13 (3) "contribution account" means the member contribution account 14 under AS 14.25.009 - 14.25.220, the individual account under AS 14.25.310 - 15 14.25.590, [AS 14.25 OR] the employee contribution account under AS 39.35.095 - 16 39.35.680, or the individual account under AS 39.35.700 - 39.35.990 [AS 39.35], 17 whichever is appropriate; 18 * Sec. 48. AS 14.40.799(5) is amended to read: 19 (5) "participating position" means a position that is a permanent 20 position that is at least a .5 full-time appointment and is included in the applicable 21 retirement plan document [AS 22 (A) A FACULTY APPOINTMENT; OR 23 (B) AN ADMINISTRATOR AND THE POSITION HAS 24 BEEN DESIGNATED BY THE BOARD FOR INCLUSION IN THE 25 PROGRAM]; 26 * Sec. 49. AS 14.40.799(6) is amended to read: 27 (6) "program" means a [THE OPTIONAL] university retirement 28 program; 29 * Sec. 50. AS 14.40.799 is amended by adding a new paragraph to read: 30 (8) "university" means the University of Alaska. 31 * Sec. 51. AS 22.25.048(c) is amended to read:
01 (c) The Alaska Retirement Management [STATE PENSION 02 INVESTMENT] Board is the fiduciary of the fund and has the same powers and 03 duties under this section in regard to the judicial retirement trust fund as are provided 04 in AS 37.10.210 [AS 14.25.180]. 05 * Sec. 52. AS 22.25.900(1) is amended to read: 06 (1) "actuarial equivalent" means the adjustment necessary to obtain 07 equality in value of the aggregate expected payments under two different forms of 08 pension payments, considering expected mortality and interest earnings on the basis of 09 assumptions, factors, and methods specified in regulations issued under the system 10 that are formally adopted [UNDER AS 22.25.027] by the Alaska Retirement 11 Management Board [COMMISSIONER OF ADMINISTRATION] that clearly 12 preclude employer discretion in the determination of the amount of any justice's, 13 judge's, or member's benefit; 14 * Sec. 53. AS 26.05.226(a) is amended to read: 15 (a) The Department of Military and Veterans' Affairs shall contribute to the 16 Alaska National Guard and Alaska Naval Militia retirement system the amounts 17 determined by the Alaska Retirement Management Board [COMMISSIONER OF 18 ADMINISTRATION] as necessary to 19 (1) fund the system based on the actuarial requirements of the system 20 as established by the Alaska Retirement Management Board [COMMISSIONER 21 OF ADMINISTRATION]; and 22 (2) administer the system. 23 * Sec. 54. AS 26.05.228(c) is amended to read: 24 (c) The Alaska Retirement Management [STATE PENSION 25 INVESTMENT] Board is the fiduciary of the fund and has the same powers and 26 duties under this section in regard to the fund as are provided under AS 37.10.220 27 [AS 14.25.180]. 28 * Sec. 55. AS 36.30.015(f) is amended to read: 29 (f) The board of directors of the Alaska Housing Finance Corporation, 30 notwithstanding AS 18.56.088, and the board of directors of the Knik Arm Bridge and 31 Toll Authority under AS 19.75.111, shall adopt regulations under AS 44.62
01 (Administrative Procedure Act) and the board of trustees of the Alaska Retirement 02 Management [STATE PENSION INVESTMENT] Board shall adopt regulations 03 under AS 37.10.240 to govern the procurement of supplies, services, professional 04 services, and construction for the respective public corporation and board. The 05 regulations must reflect competitive bidding principles and provide vendors 06 reasonable and equitable opportunities to participate in the procurement process and 07 must include procurement methods to meet emergency and extraordinary 08 circumstances. Notwithstanding the other provisions of this subsection, the Alaska 09 Housing Finance Corporation, the Knik Arm Bridge and Toll Authority, and the 10 Alaska Retirement Management [STATE PENSION INVESTMENT] Board shall 11 comply with AS 36.30.170(b). 12 * Sec. 56. AS 36.30.990(1) is amended to read: 13 (1) "agency" 14 (A) means a department, institution, board, commission, 15 division, authority, public corporation, the Alaska Pioneers' Home, the Alaska 16 Veterans' Home, or other administrative unit of the executive branch of state 17 government; 18 (B) does not include 19 (i) the University of Alaska; 20 (ii) the Alaska Railroad Corporation; 21 (iii) the Alaska Housing Finance Corporation; 22 (iv) a regional Native housing authority created under 23 AS 18.55.996 or a regional electrical authority created under 24 AS 18.57.020; 25 (v) the Department of Transportation and Public 26 Facilities, in regard to the repair, maintenance, and reconstruction of 27 vessels, docking facilities, and passenger and vehicle transfer facilities 28 of the Alaska marine highway system; 29 (vi) the Alaska Aerospace Development Corporation; 30 (vii) the Alaska Retirement Management [STATE 31 PENSION INVESTMENT] Board;
01 (viii) the Alaska Seafood Marketing Institute; 02 * Sec. 57. AS 37.10.071(d) is amended to read: 03 (d) In exercising investment, custodial, or depository powers or duties under 04 this section, the fiduciary or the fiduciary's designee is liable for a breach of a duty 05 that is assigned or delegated under this section, or under [AS 14.25.180,] 06 AS 14.40.255, 14.40.280(c), 14.40.400(b), AS 37.10.070, AS 37.14.110(c), 37.14.160, 07 or 37.14.170 [, OR AS 39.35.080]. However, the fiduciary or the designee is not 08 liable for a breach of a duty that has been delegated to another person if the delegation 09 is prudent under the applicable standard of prudence set out in statute or if the duty is 10 assigned by law to another person, except to the extent that the fiduciary or designee 11 (1) knowingly participates in, or knowingly undertakes to conceal, an 12 act or omission of another person knowing that the act or omission is a breach of that 13 person's duties under this chapter; 14 (2) by failure to comply with this section in the administration of 15 specific responsibilities, enables another person to commit a breach of duty; or 16 (3) has knowledge of a breach of duty by another person, unless the 17 fiduciary or designee makes reasonable efforts under the circumstances to remedy the 18 breach. 19 * Sec. 58. AS 37.10.071(f) is amended to read: 20 (f) In this section, "fiduciary of a state fund" or "fiduciary" means 21 (1) the commissioner of revenue for investments under AS 37.10.070; 22 or 23 (2) with respect to the Alaska Retirement Management [STATE 24 PENSION INVESTMENT] Board, for investments of the collective funds that it 25 manages and administers [UNDER OR SUBJECT TO AS 14.25.180], 26 (A) each trustee who serves on the board of trustees; and 27 (B) any other person who exercises control or authority with 28 respect to management or disposition of assets for which the board is 29 responsible or who gives investment advice to the board; or 30 (3) the person or body provided by law to manage the investments for 31 investments not subject to [AS 14.25.180 OR] AS 37.10.070.
01 * Sec. 59. AS 37.10.210 is repealed and reenacted to read: 02 Sec. 37.10.210. Alaska Retirement Management Board. (a) The Alaska 03 Retirement Management Board is established in the Department of Revenue. The 04 board's primary mission is to serve as the trustee of the assets of the state's retirement 05 systems, the State of Alaska Supplemental Annuity Plan, and the deferred 06 compensation program for state employees. Consistent with standards of prudence, 07 the board has the fiduciary obligation to manage and invest these assets in a manner 08 that is sufficient to meet the liabilities and pension obligations of the systems, plan, 09 and program. The board may, with the approval of the commissioner of revenue and 10 upon agreement with the responsible fiduciary, manage and invest other state funds so 11 long as the activity does not interfere with the board's primary mission. In making 12 investments, the board shall exercise the powers and duties of a fiduciary of a state 13 fund under AS 37.10.071. 14 (b) The Alaska Retirement Management Board consists of nine trustees. The 15 commissioner of administration and the commissioner of revenue shall serve on the 16 board. The governor shall appoint seven additional trustees who meet the eligibility 17 requirements for an Alaska permanent fund dividend and who are professionally 18 credentialed or have recognized competence in investment management, finance, 19 banking, economics, accounting, pension administration, or actuarial analysis as 20 follows: 21 (1) three trustees shall be appointed from the general public; a trustee 22 appointed under this paragraph may not hold another state office, position, or 23 employment and may not be a member or beneficiary of a retirement system managed 24 by the board; 25 (2) one trustee shall be employed as a finance officer for a political 26 subdivision participating in the public employees' retirement system; 27 (3) one trustee shall be employed as a finance officer for a political 28 subdivision participating in the teachers' retirement system; 29 (4) one trustee shall be a member of the public employees' retirement 30 system; 31 (5) one trustee shall be a member of the teachers' retirement system.
01 (c) The trustees, other than the two commissioners, shall serve for staggered 02 terms of three years and may be reappointed to the board for a total of three 03 consecutive terms. A person who has served three consecutive terms may not be 04 reappointed to the board for at least one year. 05 (d) The governor may, by written notice to the trustee, remove a trustee for 06 cause. After a trustee receives written notice of removal, the trustee may not 07 participate in board business and may not be counted for purposes of establishing a 08 quorum. 09 (e) A vacancy on the board of trustees shall be promptly filled. A person 10 filling a vacancy holds office for the balance of the unexpired term of the person's 11 predecessor, and the balance of the unexpired term served is not included in the three- 12 term limitation under (c) of this section. A vacancy on the board does not impair the 13 authority of a quorum of the board to exercise all the powers and perform all the duties 14 of the board. 15 (f) Five trustees constitute a quorum for the transaction of business and the 16 exercise of the powers and duties of the board. 17 (g) A trustee may not designate another person to serve on the board in the 18 absence of the trustee. 19 (h) The board shall provide annual training to its members on the duties and 20 powers of a fiduciary of a state fund and other training as necessary to keep the 21 members of the board educated about pension management and investment. 22 (i) The board shall elect a trustee to serve as chair and a trustee to serve as 23 vice-chair for one-year terms. A trustee may be reelected to serve additional terms as 24 chair or vice-chair. 25 * Sec. 60. AS 37.10 is amended by adding a new section to read: 26 Sec. 37.10.215. Attorney general. The attorney general is the legal counsel 27 for the board and shall advise the board and represent it in a legal proceeding. 28 * Sec. 61. AS 37.10.220 is repealed and reenacted to read: 29 Sec. 37.10.220. Powers and duties of the board. (a) The board shall 30 (1) hold regular and special meetings at the call of the chair or of at 31 least five members; meetings are open to the public, and the board shall keep a full
01 record of all its proceedings; 02 (2) after reviewing recommendations from the Department of 03 Revenue, adopt investment policies for each of the funds entrusted to the board; 04 (3) determine the appropriate investment objectives for the defined 05 benefit plans established under the teachers' retirement system under AS 14.25 and the 06 public employees' retirement system under AS 39.35; 07 (4) provide a range of investment options and establish the rules by 08 which participants can direct their investments among those options with respect to 09 accounts established under 10 (A) AS 14.25.340 and 14.25.350 (teachers' retirement system 11 defined contribution individual accounts); 12 (B) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 13 Annuity Plan); 14 (C) AS 39.35.730 - 39.35.750 (public employees' retirement 15 system defined contribution individual accounts); and 16 (D) AS 39.45.010 - 39.45.060 (public employees' deferred 17 compensation program); 18 (5) establish the rate of interest that shall be annually credited to each 19 member's individual contribution account in accordance with AS 14.25.145 and 20 AS 39.35.100 and the rate of interest that shall be annually credited to each member's 21 account in the health reimbursement arrangement plan under AS 39.30.300 - 22 39.30.495; the rate of interest shall be adopted on the basis of the probable effective 23 rate of interest on a long-term basis, and the rate may be changed from time to time; 24 (6) adopt a contribution surcharge as necessary under AS 39.35.160(c); 25 (7) coordinate with the retirement system administrator to have an 26 annual actuarial valuation of each retirement system prepared to determine system 27 assets, accrued liabilities, and funding ratios and to certify to the appropriate 28 budgetary authority of each employer in the system 29 (A) an appropriate contribution rate for normal costs; and 30 (B) an appropriate contribution rate for liquidating any past 31 service liability;
01 (8) review actuarial assumptions prepared and certified by a member 02 of the American Academy of Actuaries and conduct experience analyses of the 03 retirement systems not less than once every four years, except for health cost 04 assumptions, which shall be reviewed annually; the results of all actuarial assumptions 05 prepared under this paragraph shall be reviewed and certified by a second member of 06 the American Academy of Actuaries before presentation to the board; 07 (9) contract for an independent audit of the state's actuary not less than 08 once every four years; 09 (10) contract for an independent audit of the state's performance 10 consultant not less than once every four years; 11 (11) obtain an external performance review to evaluate the investment 12 policies of each fund entrusted to the board and report the results of the review to the 13 appropriate fund fiduciary; 14 (12) by the first day of each regular legislative session, report to the 15 governor, the legislature, and the individual employers participating in the state's 16 retirement systems on the financial condition of the systems in regard to 17 (A) the valuation of trust fund assets and liabilities; 18 (B) current investment policies adopted by the board; 19 (C) a summary of assets held in trust listed by the categories of 20 investment; 21 (D) the income and expenditures for the previous fiscal year; 22 (E) the return projections for the next calendar year; 23 (F) one-year, three-year, five-year, and 10-year investment 24 performance for each of the funds entrusted to the board; and 25 (G) other statistical data necessary for a proper understanding 26 of the financial status of the systems; 27 (13) submit quarterly updates of the investment performance reports to 28 the Legislative Budget and Audit Committee; and 29 (14) develop an annual operating budget. 30 (b) The board may 31 (1) employ outside investment advisors to review investment policies;
01 (2) enter into an agreement with the fiduciary of another state fund in 02 order to assume the management and investment of those assets; 03 (3) contract for other services necessary to execute the board's powers 04 and duties; 05 (4) enter into confidentiality agreements that would exempt records 06 from AS 40.25.110 and 40.25.120 if the records contain information that could affect 07 the value of investment by the board or that could impair the ability of the board to 08 acquire, maintain, or dispose of investments. 09 (c) Expenses for the board and the operations of the board shall be paid from 10 the retirement fund. 11 * Sec. 62. AS 37.10.250 is amended to read: 12 Sec. 37.10.250. Compensation of trustees. Trustees, other than trustees who 13 are employees of the state, [OR] a political subdivision of the state, or a school 14 district or regional educational attendance area in the state, receive an honorarium 15 of $150 for each day spent at a meeting of the board or at a meeting of a subcommittee 16 of the board or at a public meeting as a representative of the board, including a day in 17 which a trustee travels to or from a meeting. Trustees who are state employees are 18 entitled to administrative leave for service as a trustee. Trustees who are employees of 19 a political subdivision of the state or a school district or regional educational 20 attendance area in the state are entitled to leave benefits provided by their employers 21 comparable to those provided to state employees for service as a trustee. Trustees are 22 entitled to per diem and travel expenses authorized for boards and commissions under 23 AS 39.20.180. 24 * Sec. 63. AS 37.10.270(a) is amended to read: 25 (a) The board may [SHALL] appoint an investment advisory council 26 composed of at least three and not more than five members. Members of the council 27 shall possess experience and expertise in financial investments and management of 28 investment portfolios for public, corporate, or union pension benefit funds, 29 foundations, or endowments. 30 * Sec. 64. AS 37.10.390 is amended to read: 31 Sec. 37.10.390. Definitions. In AS 37.10.210 - 37.10.390, unless the context
01 otherwise requires, 02 (1) "board" means the board of trustees of the Alaska Retirement 03 Management [STATE PENSION INVESTMENT] Board; 04 (2) "fund" means the fund or funds composed of the assets of each 05 of the retirement systems administered and managed by the board; 06 (3) "recognized competence" means a minimum of 10 years' 07 professional experience working or teaching in the field of investment 08 management, finance, banking, economics, accounting, pension administration, 09 or actuarial analysis; 10 (4) "retirement systems" or "systems" means the teachers' retirement 11 system, the judicial retirement system, the Alaska National Guard and Alaska Naval 12 Militia retirement system, [AND] the public employees' retirement system, the State 13 of Alaska teachers' and public employees' retiree health reimbursement 14 arrangement plan, and the elected public officers' retirement system under 15 former AS 39.37. 16 * Sec. 65. AS 37.14.160 is amended to read: 17 Sec. 37.14.160. Duties of the commissioner of revenue. The commissioner 18 of revenue is the treasurer of the trust fund created in AS 37.14.110 and shall 19 (1) in carrying out investment duties under this section, exercise the 20 same powers and duties established for the Alaska Retirement Management [STATE 21 PENSION INVESTMENT] Board in AS 37.10.210 [AS 14.25.180(c)]; 22 (2) deposit the principal and income from investments in separate 23 principal and income accounts for the fund; 24 (3) invest and maintain accounting records that distinguish between the 25 principal and income of the fund; 26 (4) provide reports to the board established under AS 37.14.120 on the 27 condition and investment performance of the fund. 28 * Sec. 66. AS 37.14.210(4) is amended to read: 29 (4) invest and reinvest the assets of the trust as provided in this section 30 and as provided for the investment of funds under [AS 14.25.180(c) AND] 31 AS 37.14.170;
01 * Sec. 67. AS 37.14.520(4) is amended to read: 02 (4) invest and reinvest the assets of the fund as provided in this section 03 and as provided for the investment of funds under [AS 14.25.180(c) AND] 04 AS 37.14.170; 05 * Sec. 68. AS 37.14.610 is amended to read: 06 Sec. 37.14.610. Duties of the commissioner. The commissioner of revenue 07 has the power and duty to 08 (1) act as official custodian of the cash and investments belonging to 09 the Arctic Winter Games Team Alaska trust by securing adequate and safe custodial 10 facilities; 11 (2) exercise the same powers and duties as those established for the 12 Alaska Retirement Management [STATE PENSION INVESTMENT] Board in 13 AS 37.10.210 [AS 14.25.180(b) AND (c)]; 14 (3) invest the assets of the trust in a manner likely to yield at least five 15 percent real rate of return over time; 16 (4) maintain accounting records of the trust in accordance with 17 investment accounting principles; 18 (5) enter into and enforce contracts or agreements considered 19 necessary for the investment purposes of the trust; 20 (6) report annually to the board of directors of the Arctic Winter 21 Games Team Alaska the condition and performance of the trust; 22 (7) monitor use of trust money by the Arctic Winter Games Team 23 Alaska; and 24 (8) do all acts that the commissioner of revenue considers necessary or 25 proper in administering the assets of the trust. 26 * Sec. 69. AS 39.30.090(a) is amended to read: 27 (a) The Department of Administration may obtain a policy or policies of group 28 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 29 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 30 employees of other participating governmental units, or persons entitled to coverage 31 under AS 23.15.136, subject to the following conditions:
01 (1) A group insurance policy shall provide one or more of the 02 following benefits: life insurance, accidental death and dismemberment insurance, 03 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 04 dental expense insurance, audiovisual insurance, or other medical care insurance. 05 (2) Each eligible employee of the state, the spouse and the unmarried 06 children chiefly dependent on the eligible employee for support, and each eligible 07 employee of another participating governmental unit shall be covered by the group 08 policy, unless exempt under regulations adopted by the commissioner of 09 administration. 10 (3) A governmental unit may participate under a group policy if 11 (A) its governing body adopts a resolution authorizing 12 participation, and payment of required premiums; 13 (B) a certified copy of the resolution is filed with the 14 Department of Administration; and 15 (C) the commissioner of administration approves the 16 participation in writing. 17 (4) In procuring a policy of group health or group life insurance as 18 provided under this section or excess loss insurance as provided in AS 39.30.091, the 19 Department of Administration shall comply with the dual choice requirements of 20 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 21 transact business in the state under AS 21.09, a hospital or medical service corporation 22 authorized to transact business in this state under AS 21.87, or a health maintenance 23 organization authorized to operate in this state under AS 21.86. An excess loss 24 insurance policy may be obtained from a life or health insurer authorized to transact 25 business in this state under AS 21.09 or from a hospital or medical service corporation 26 authorized to transact business in this state under AS 21.87. 27 (5) The Department of Administration shall make available bid 28 specifications for desired insurance benefits or for administration of benefit claims and 29 payments to (A) all insurance carriers authorized to transact business in this state 30 under AS 21.09 and all hospital or medical service corporations authorized to transact 31 business under AS 21.87 who are qualified to provide the desired benefits; and (B) to
01 insurance carriers authorized to transact business in this state under AS 21.09, hospital 02 or medical service corporations authorized to transact business under AS 21.87, and 03 third-party administrators licensed to transact business in this state and qualified to 04 provide administrative services. The specifications shall be made available at least 05 once every five years. The lowest responsible bid submitted by an insurance carrier, 06 hospital or medical service corporation, or third-party administrator with adequate 07 servicing facilities shall govern selection of a carrier, hospital or medical service 08 corporation, or third-party administrator under this section or the selection of an 09 insurance carrier or a hospital or medical service corporation to provide excess loss 10 insurance as provided in AS 39.30.091. 11 (6) If the aggregate of dividends payable under the group insurance 12 policy exceeds the governmental unit's share of the premium, the excess shall be 13 applied by the governmental unit for the sole benefit of the employees. 14 (7) A person receiving benefits under AS 14.25.110, AS 22.25, 15 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 16 effect under this section at the time of termination of employment with the state or 17 participating governmental unit. 18 (8) A person electing to have insurance under (7) of this subsection 19 shall pay the cost of this insurance. 20 (9) For each permanent part-time employee electing coverage under 21 this section, the state shall contribute one-half the state contribution rate for permanent 22 full-time state employees, and the permanent part-time employee shall contribute the 23 other one-half. 24 (10) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 25 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 26 and eligible dependents under this section. The level of coverage for persons over 65 27 shall be the same as that available before reaching age 65 except that the benefits 28 payable shall be supplemental to any benefits provided under the federal old age, 29 survivors, and disability insurance program. A person electing to have insurance 30 under this paragraph shall pay the cost of the insurance. The commissioner of 31 administration shall adopt regulations implementing this paragraph.
01 (11) A person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 02 or former AS 39.37 may obtain long-term care insurance for that person and eligible 03 dependents under this section. A person who elects insurance under this paragraph 04 shall pay the cost of the insurance premium. The commissioner of administration 05 shall adopt regulations to implement this paragraph. 06 (12) Each licensee holding a current operating agreement for a vending 07 facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 08 applies to governmental units other than the state. 09 * Sec. 70. AS 39.30.095(d) is amended to read: 10 (d) If the commissioner of administration determines that there is more money 11 in the fund than the amount needed to pay premiums, benefits, and administrative 12 costs for the current fiscal year, the surplus, or so much of it as the commissioner of 13 administration considers advisable, may be invested by the commissioner of revenue 14 in the same manner as retirement funds are invested under AS 37.10.210 and 15 37.10.220 [AS 14.25.180]. 16 * Sec. 71. AS 39.30.150(b) is amended to read: 17 (b) Employees of the division of marine transportation included in 18 AS 39.35.095 - 39.35.680 [THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM] 19 through the process of collective bargaining under AS 39.35.680(21)(D) may, under 20 the terms of a collective bargaining agreement, utilize contributions made under (a) of 21 this section on their behalf to offset the costs of inclusion in the public employees' 22 retirement system; however, 23 (1) the state is placed under no obligation to continue making 24 contributions under this section if the state resumes participation in the federal social 25 security system; 26 (2) the bargaining agreement must provide a mechanism for satisfying 27 any residual liabilities that might exist if the state resumes participation in the federal 28 social security system; and 29 (3) funds contributed under (a) of this section on behalf of employees 30 who are not covered by maritime union contracts may not be obligated or expended to 31 pay any costs associated with the inclusion of marine transportation employees in
01 AS 39.35.095 - 39.35.680 [THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM]. 02 * Sec. 72. AS 39.30 is amended by adding a new section to read: 03 Sec. 39.30.151. Administrator. The commissioner of administration or the 04 commissioner's designee is the administrator of the system. 05 * Sec. 73. AS 39.30 is amended by adding a new section to read: 06 Sec. 39.30.154. Powers and duties of the administrator. The administrator 07 has the same powers and duties with regard to the plan as those set out in 08 AS 14.25.004. 09 * Sec. 74. AS 39.30.155 is repealed and reenacted to read: 10 Sec. 39.30.155. Management and investment of fund. The Alaska 11 Retirement Management Board is the fiduciary of the fund and has the same powers 12 and duties under this section in regard to the fund as are provided under AS 37.10.210. 13 * Sec. 75. AS 39.30.160(a) is amended to read: 14 (a) The Department of Administration shall, in accordance with policies 15 prescribed by regulations of the Alaska Retirement Management [PUBLIC 16 EMPLOYEES RETIREMENT] Board, provide to employees for whom special 17 individual employee benefit accounts are established under AS 39.30.150 the 18 following benefit options: 19 (1) supplemental health benefits; [,] 20 (2) supplemental death benefits; [,] 21 (3) supplemental disability benefits; [,] and 22 (4) supplemental dependent care benefits. 23 * Sec. 76. AS 39.30.160(e) is amended to read: 24 (e) Regulations adopted by the board [PUBLIC EMPLOYEES 25 RETIREMENT BOARD] implementing AS 39.30.150 and this section are not subject 26 to AS 44.62 (Administrative Procedure Act). 27 * Sec. 77. AS 39.30.175(a) is amended to read: 28 (a) The board [ALASKA STATE PENSION INVESTMENT BOARD] is the 29 fiduciary of the mandatory receipts, under AS 39.30.150(a), of the employee benefits 30 program established under AS 39.30.150 - 39.30.180 and has the same powers and 31 duties concerning the management and investment in regard to those receipts as are
01 provided under AS 37.10.210 [AS 14.25.180]. 02 * Sec. 78. AS 39.30.180 is amended by adding a new paragraph to read: 03 (3) "board" means the board of trustees of the Alaska Retirement 04 Management Board established under AS 37.10.210. 05 * Sec. 79. AS 39.30 is amended by adding new sections to read: 06 Article 5. State of Alaska Teachers' and Public Employees' Retiree Health 07 Reimbursement Arrangement Plan. 08 Sec. 39.30.300. State of Alaska Teachers' and Public Employees' Retiree 09 Health Reimbursement Arrangement Plan established. The State of Alaska 10 Teachers' and Public Employees' Retiree Health Reimbursement Arrangement Plan is 11 established for teachers who first become members of the defined contribution plan of 12 the teachers' retirement system under AS 14.25.310 - 14.25.590 on or after July 1, 13 2005, and employees of the state, political subdivisions of the state, and public 14 organizations of the state who first become members of the defined contribution plan 15 of the public employees' retirement system under AS 39.35.700 - 39.35.990 on or after 16 July 1, 2005. 17 Sec. 39.30.310. Purpose and effective date. (a) The purpose of the plan is to 18 allow medical care expenses to be reimbursed from individual savings accounts 19 established for eligible persons. 20 (b) The plan becomes effective July 1, 2005, at which time contributions by 21 employers begin. 22 Sec. 39.30.320. Attorney general. The attorney general of the state is the 23 legal counsel for the plan and shall advise the administrator and represent the plan in a 24 legal proceeding. 25 Sec. 39.30.330. Administrator. The commissioner of administration or the 26 commissioner's designee is the administrator of the plan. 27 Sec. 39.30.340. Powers and duties of the administrator. The administrator 28 shall establish a teachers' and public employees' retiree health reimbursement 29 arrangement plan trust fund in which the assets of the plan shall be deposited and held. 30 The administrator has the same powers and duties with regard to the plan and the trust 31 fund as provided in AS 14.25.004.
01 Sec. 39.30.350. Employer contribution fund. The fund established under 02 AS 39.30.340 is an employer contribution fund. The value of the fund reflects 03 employer contributions, expenses, and investment gains and losses. Employee 04 contributions to the fund are not permitted. 05 Sec. 39.30.360. Management and investment of the fund. The Alaska 06 Retirement Management Board is the fiduciary of the fund and has the same powers 07 and duties under this section in regard to the fund as are provided under AS 37.10.220. 08 Sec. 39.30.370. Contributions by employers. For each member of the plan, 09 an employer shall contribute to the teachers' and public employees' retiree health 10 reimbursement arrangement plan trust fund an amount equal to two percent of the 11 employer's average annual employee compensation. The administrator shall maintain 12 a record for each member to account for employer contributions on behalf of that 13 member. The board shall establish by regulation the rate of interest to be applied 14 annually to the amount in a member's individual account. 15 Sec. 39.30.380. Termination of employment. A person who terminates 16 employment before meeting the eligibility requirements of AS 14.25.470 or 17 AS 39.35.870 loses any right to the contributions made on behalf of the person to the 18 teachers' and public employees' retiree health reimbursement arrangement trust fund. 19 If a person returns to employment with a participating employer within five years after 20 the date of termination, the person's account balance shall be restored in the amount 21 recorded on the date of termination from the trust, without interest or other adjustment. 22 Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the 23 eligibility requirements of AS 14.25.470 and AS 39.35.870 are eligible for 24 reimbursements from the individual account established for a member under the plan. 25 A person who is the dependent child of an eligible member is eligible for 26 reimbursements if the eligible member and surviving spouse have both died so long as 27 the person meets the definition of dependent child. 28 Sec. 39.30.400. Benefits payable from the individual account. (a) The 29 administrator may deduct the cost of monthly premiums from the individual account 30 for retiree major medical insurance on behalf of an eligible person who elected retiree 31 major medical insurance under AS 14.25.480 or AS 39.35.880.
01 (b) Upon application of an eligible person, the administrator shall reimburse to 02 the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d). 03 Reimbursement is limited to the medical expenses of 04 (1) an eligible member, the spouse of an eligible member, and the 05 dependent children of an eligible member; or 06 (2) a surviving spouse and the dependent children of an eligible 07 member dependent on the surviving spouse. 08 (c) When the member's individual account balance is exhausted, the insurance 09 premium deductions under (a) of this section and the reimbursement of medical care 10 expenses under (b) of this section end. 11 (d) If all eligible persons die before exhausting the member's individual 12 account, the account balance shall revert to the plan. 13 Sec. 39.30.410. Exemption from taxation and process. (a) Contributions 14 and other amounts held in the plan on behalf of a member or other person who is or 15 may become eligible for benefits under the plan may be used only to reimburse 16 eligible medical expenses, are exempt from Alaska state and municipal taxes and 17 federal taxes to the extent allowed under the Internal Revenue Code, and are not 18 subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or 19 charge of any kind, either voluntary or involuntary, before they are received by the 20 person entitled to the amount under the terms of the plan. Any attempt to anticipate, 21 alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any 22 right to amounts accrued in the plan is void. However, a member's right to receive 23 benefits may be assigned 24 (1) under a qualified domestic relations order; or 25 (2) to a trust or similar legal device that meets the requirements for a 26 Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4). 27 (b) Notwithstanding AS 09.38.065, contributions and other amounts held in 28 the plan and benefits payable under this plan are exempt from garnishment, execution, 29 or levy. 30 Sec. 39.30.420. Amendment and termination of plan. (a) The state has the 31 right to amend the plan at any time and from time to time, in whole or in part,
01 including the right to make retroactive amendments referred to in 26 U.S.C. 401(b). 02 (b) The plan administrator may not modify or amend the plan retroactively in 03 such a manner as to reduce the benefits of any member accrued to date under the plan 04 by reason of contributions made before the modification or amendment except to the 05 extent that the reduction is permitted by the Internal Revenue Code. 06 (c) The state may, in its discretion, terminate the plan in whole or part at any 07 time without liability for the termination. If the plan is terminated, all investments 08 remain in force until all individual accounts have been completely distributed under 09 the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer. 10 (d) Any contribution made by an employer to the plan because of a mistake of 11 fact must be returned to the employer by the administrator within one year after the 12 contribution or discovery, whichever is later. 13 Sec. 39.30.430. Exclusive benefit. (a) The corpus or income of the assets 14 held in trust as required by the plan may not be diverted or used for other than the 15 exclusive benefit of the participants. 16 (b) The assets of the plan may not be used to pay premiums or contributions of 17 the employer under another plan maintained by the employer. 18 Sec. 39.30.495. Definitions. Unless the context requires otherwise, in 19 AS 39.30.300 - 39.30.495 20 (1) "administrator" means the commissioner of administration or the 21 commissioner's designee; 22 (2) "board" means the Alaska Retirement Management Board 23 established under AS 37.10.210; 24 (3) "compensation" has the meaning given in AS 14.25.590; 25 (4) "eligible person" means a person who meets the eligibility 26 requirements of AS 14.25.470 or AS 39.35.870; 27 (5) "dependent child" has the meaning given in AS 39.35.680; 28 (6) "employer" has the meaning given in AS 14.25.590 for employers 29 of teachers in the defined contribution plan established in AS 14.25.310 - 14.25.590 30 and has the meaning given in AS 39.35.990 for employers of public employees in the 31 defined contribution plan established in AS 39.35.700 - 39.35.990;
01 (7) "fund" means the assets of the teachers' and public employees' 02 retiree health reimbursement arrangement plan trust fund; 03 (8) "individual account" means the record established by the 04 administrator for individual employees under the teachers' and public employees' 05 retiree health reimbursement arrangement plan; 06 (9) "member" means a member of the defined contribution plan of the 07 teachers' retirement system in AS 14.25.310 - 14.25.590 or a member of the public 08 employees' retirement system in AS 39.35.700 - 39.35.990; 09 (10) "plan" means the State of Alaska Teachers' and Public Employees' 10 Retiree Health Reimbursement Arrangement Plan established in AS 39.30.300; 11 (11) "qualified domestic relations order" has the meaning given in 12 AS 14.25.220. 13 * Sec. 80. AS 39.35 is amended by adding new sections to read: 14 Article 1. Administration of the Public Employees' Retirement System of Alaska. 15 Sec. 39.35.001. Purpose. The purpose of this chapter is to encourage 16 qualified personnel to enter and remain in service with participating employers by 17 establishing plans for the payment of retirement, disability, and death benefits to or on 18 behalf of the members. 19 Sec. 39.35.002. Attorney general. The attorney general of the state is the 20 legal counsel for the system and shall advise the administrator and represent the 21 system in a legal proceeding. 22 Sec. 39.35.003. Administrator. (a) The commissioner of administration or 23 the commissioner's designee is the administrator of the system. 24 (b) The commissioner of administration shall adopt regulations to govern the 25 operation of the system. 26 Sec. 39.35.004. Powers and duties of the administrator. (a) The 27 administrator shall 28 (1) establish and maintain an adequate system of accounts; 29 (2) transmit the funds deposited in the system to the retirement fund 30 established and maintained by the Alaska Retirement Management Board; 31 (3) approve or disapprove claims for retirement benefits;
01 (4) make payments for the various purposes specified; 02 (5) submit periodic reports or statements of account that are needed; 03 (6) issue a statement of account to an employee not less than once each 04 year showing the amount of the employee's contributions to the applicable plan in the 05 system; 06 (7) formulate and recommend to the commissioner of administration 07 regulations to govern the operation of the system; 08 (8) as soon as possible after the close of each fiscal year, and not later 09 than six months after the close of each fiscal year, send to the governor and the 10 legislature an annual statement on the operations of each of the plans in the system 11 containing 12 (A) a balance sheet; 13 (B) a statement of income and expenditures for the year; 14 (C) a report on valuation of trust fund assets; 15 (D) a summary of assets held in the trust fund listed by the 16 categories of investment, as provided by the Alaska Retirement Management 17 Board; 18 (E) other statistical financial data that are necessary for proper 19 understanding of the financial condition of the system as a whole and each plan 20 in the system and the result of its operations; 21 (9) engage an independent certified public accountant to conduct an 22 annual audit of each plan's accounts and the annual report of the system's financial 23 condition and activity; 24 (10) report to the Legislative Budget and Audit Committee concerning 25 the condition and administration of each plan and distribute the report to the members 26 of each plan in the system; 27 (11) publish an information handbook for each plan in the system at 28 intervals that the administrator considers appropriate; 29 (12) meet at least annually with the board to review the condition and 30 management of the retirement systems and to review significant changes to policies, 31 regulations or benefits; and
01 (13) do whatever else may be necessary to carry out the purposes of 02 each plan in the system. 03 (b) The administrator is authorized to charge uniform fees to members' 04 accounts to cover the ongoing cost of operating each plan in the system. 05 (c) The administrator is authorized to contract with public and private entities 06 to provide record keeping, benefits payments, and other functions necessary for the 07 administration of each plan in the system. 08 Sec. 39.35.005. Regulations. (a) Regulations adopted by the commissioner 09 of administration under this chapter relate to the internal management of state 10 agencies, and the adoption of these regulations is not subject to AS 44.62 11 (Administrative Procedure Act). 12 (b) Notwithstanding (a) of this section, a regulation adopted under this chapter 13 shall be published in the Alaska Administrative Register and Code for informational 14 purposes. 15 (c) Each regulation adopted under this chapter must conform to the style and 16 format requirements of the drafting manual for administrative regulations that is 17 published under AS 44.62.050. 18 (d) At least 30 days before the adoption, amendment, or repeal of a regulation 19 under this chapter, the commissioner shall provide notice of the action that is being 20 considered. The notice shall be 21 (1) posted in public buildings throughout the state; 22 (2) published in one or more newspapers of general circulation in each 23 judicial district of the state; 24 (3) mailed to each person or group that has filed a request for notice of 25 proposed action with the commissioner; and 26 (4) furnished to each member of the legislature and to the Legislative 27 Affairs Agency. 28 (e) Failure to mail notice to a person as required under (d)(3) of this section 29 does not invalidate an action taken by the commissioner. 30 (f) The commissioner may hold a public hearing on a proposed regulation. 31 (g) A regulation adopted under this chapter takes effect 30 days after adoption
01 by the commissioner. 02 (h) Notwithstanding the other provisions of this section, a regulation may be 03 adopted, amended, or repealed, effective immediately, as an emergency regulation by 04 the commissioner. For an emergency regulation to be effective the commissioner 05 must find that the adoption, amendment, or repeal of the regulation is necessary for the 06 immediate preservation of the orderly operation of the system. The commissioner 07 shall, within 10 days after adoption of an emergency regulation, give notice of the 08 adoption under (d) of this section. 09 (i) In this section, "regulation" has the meaning given in AS 44.62.640(a). 10 Sec. 39.35.006. Appeals. An employer, member, annuitant, or beneficiary 11 may appeal a decision made by the administrator to the office of administrative 12 hearings established under AS 44.64. An aggrieved party may appeal a final decision 13 to the superior court. 14 Sec. 39.35.007. Investment management of retirement system funds. The 15 Alaska Retirement Management Board established under 37.10.210 is the fiduciary of 16 the system funds. 17 Sec. 39.35.008. Definitions. In AS 39.35.001 - 39.35.008, 18 (1) "commissioner" means the commissioner of administration; 19 (2) "plan" means the retirement plan established in AS 39.35.095 - 20 39.35.680 or the retirement plan established in AS 39.35.700 - 39.35.990; 21 (3) "system" means all retirement plans established under the public 22 employees' retirement system. 23 * Sec. 81. AS 39.35 is amended by adding a new section to read: 24 Article 2. Public Employees First Hired before July 1, 2005. 25 Sec. 39.35.095. Applicability of AS 39.35.095 - 39.35.680 to employees first 26 hired before July 1, 2005. The following provisions of this chapter apply only to 27 members first hired before July 1, 2005: AS 39.35.095 - 39.35.680. 28 * Sec. 82. AS 39.35.100 is amended to read: 29 Sec. 39.35.100. Accounting. (a) The commissioner of administration shall 30 establish and maintain an adequate system of accounts and records for the plan 31 [SYSTEM]. The accounts and records shall be integrated with the accounts, records,
01 and procedures of the employers to the end that they operate most effectively and at 02 minimum expense, and that duplication of records and accounts is avoided. 03 (b) All income of the pension fund and all disbursements made by the fund 04 shall be credited or charged, whichever is appropriate, to the following accounts: 05 (1) An individual account shall be maintained for each employee to 06 record the amount of the employee's mandatory contributions collected under 07 AS 39.35.160(a). As of the last day of each calendar year and each fiscal year 08 beginning with June 30, 1969, this account shall be credited with interest, by applying 09 [ONE HALF OF] the prescribed rate of interest as determined by the board to the 10 balance in the account as of that date. Within one year following retirement, the 11 amount actuarially determined as necessary to fully fund the benefits to be received 12 shall be transferred first from the employee contribution account and, after the 13 employee contribution account has been exhausted, then from the employer 14 contribution account into the retirement reserve account. 15 (2) An individual account shall be maintained for each employee to 16 record the amount of the employee's voluntary contributions. As of the last day of 17 each calendar year and each fiscal year beginning with June 30, 1969, this account 18 shall be credited with interest, by applying [ONE HALF OF] the prescribed rate of 19 interest as determined by the board to the balance in the account as of that date. 20 Amounts that, before termination of employment, are withdrawn by an employee from 21 the employee's savings account shall be charged to that account. Upon retirement, the 22 amount actuarially determined as necessary to fully fund the benefits to be received 23 shall be transferred first from the employee savings account and, after the employee 24 savings account has been exhausted, then from the employer contribution account into 25 the retirement reserve account. 26 (3) A separate account for each employer shall be maintained. The 27 account shall be credited with contributions of the employer. This account shall be 28 charged with the employer's actuarial charge for pension, death benefits, and other 29 benefits paid under this plan [SYSTEM] to or on behalf of the employee of the 30 employer. After an allowance for interest credited to employee contribution accounts 31 and employee savings accounts, the investment income of the pension fund shall be
01 allocated to the retirement reserve account and to each employer asset share account 02 according to the ratio that the average of the assets in the account as of the beginning 03 and as of the end of the fiscal year bears to the total of the average balance of the 04 retirement reserve account and all employer accounts. 05 (4) An expense account shall be maintained for the plan [SYSTEM]. 06 This account shall be charged with all disbursements representing administrative 07 expenses incurred by the plan [SYSTEM]. At the end of the year the expense account 08 shall be allocated to each employer in accordance with (3) of this subsection. 09 Expenditures from this account shall be included in the governor's budget for each 10 fiscal year and are subject to approval by the legislature. 11 * Sec. 83. AS 39.35 is amended by adding a new section to article 1 to read: 12 Sec. 39.35.115. Defined benefit retirement plan. (a) A defined benefit 13 retirement plan for employees of the state, political subdivisions, and public 14 organizations is created. The plan becomes effective January 1, 1961, at which time 15 contributions by the employers and members begin. 16 (b) The retirement plan established by AS 39.35.095 - 39.35.680 is intended to 17 qualify under 26 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified 18 retirement plan established and maintained by the state for its employees and for the 19 employees of political subdivisions, public corporations, and public organizations of 20 the state, and for the employees of other employers whose participation is authorized 21 by AS 39.35.095 - 39.35.680 and who participate in this plan. 22 (c) An amendment to AS 39.35.095 - 39.35.680 does not provide a person 23 with a vested right to a benefit if the Internal Revenue Service determines that the 24 amendment will result in disqualification of the plan under the Internal Revenue Code. 25 * Sec. 84. AS 39.35.120 is amended to read: 26 Sec. 39.35.120. Commencement of participation. (a) An employee of the 27 state shall be included in this system upon commencement of employment with the 28 state, or on January 1, 1961, whichever is later. Unless an employee participates in a 29 [HAS ELECTED TO PARTICIPATE IN THE OPTIONAL] university retirement 30 program under AS 14.40.661 - 14.40.799, an employee of a political subdivision or 31 public organization that becomes an employer shall be included in the system on the
01 effective date of the employer's participation or the date of the employee's 02 commencement of employment with the employer, whichever is later. 03 (b) Inclusion in the system is a condition of employment for an employee 04 except as otherwise provided for 05 (1) an elected official; 06 (2) an employee making an election under AS 39.35.150(b); and 07 (3) an employee of the university who participates in a [HAS 08 ELECTED TO PARTICIPATE IN THE OPTIONAL] university retirement program 09 under AS 14.40.661 - 14.40.799. 10 * Sec. 85. AS 39.35.131 is amended to read: 11 Sec. 39.35.131. Membership in teachers' and public employees' 12 retirement systems. (a) A person who is employed at least half-time in the plan 13 [SYSTEM] during the same period that the person is employed at least half-time in a 14 position in the teachers' retirement plan [SYSTEM] under AS 14.25.009 - 14.25.220 15 [AS 14.25] shall receive credited service under each plan [SYSTEM] for half-time 16 employment. However, the amount of credited service a person receives under the 17 plan [SYSTEM] during a school year may not exceed the amount necessary, when 18 added to the amount of credited service earned during the school year under the 19 teachers' retirement system, to equal one year of credited service. 20 (b) A person who was employed at least half-time in a position in the teachers' 21 retirement plan [SYSTEM] under AS 14.25.009 - 14.25.220 [AS 14.25] in the same 22 period that the person was employed at least half-time in a position in this plan 23 [SYSTEM] may claim credited service in both plan [SYSTEMS] for employment 24 before May 31, 1989. To obtain this credited service, the person shall claim the 25 service and verify the period of half-time employment. When eligibility for half-time 26 service credit has been established, an indebtedness shall be determined to the 27 retirement plan [SYSTEM] in which the person did not participate. The amount of 28 the indebtedness is the full actuarial cost of providing benefits for the credited service 29 claimed. Interest as prescribed by regulation accrues on that indebtedness beginning 30 on the later of July 1, 1989, or the date on which the member is first eligible to claim 31 the service. Any outstanding indebtedness existing at the time the person retires will
01 require an actuarial adjustment to the benefits payable based on that service. 02 * Sec. 86. AS 39.35.158 is amended to read: 03 Sec. 39.35.158. Administrative director of courts. An administrative 04 director of the Alaska court system who withdraws from the judicial retirement system 05 under AS 22.25.012 is eligible for membership in the plan [SYSTEM] and shall 06 receive credited service in the plan [SYSTEM] for service rendered as administrative 07 director. To be eligible for membership in the plan [SYSTEM] under this subsection, 08 the administrative director must contribute to the plan [SYSTEM] 09 (1) the amount the director would have contributed if the director had 10 been a member during the director's period of membership in the judicial retirement 11 system; and 12 (2) any contributions for services as administrative director refunded 13 by the plan [SYSTEM] at the time the director became a member of the judicial 14 retirement system. 15 * Sec. 87. AS 39.35.160(a) is amended to read: 16 (a) Beginning July 1, 2005 [JANUARY 1, 1987], each peace officer or fire 17 fighter shall contribute to the plan a percentage [SYSTEM AN AMOUNT EQUAL 18 TO SEVEN AND ONE-HALF PERCENT] of the peace officer's or fire fighter's 19 compensation as determined under AS 39.35.162. Except as provided in (d) of this 20 section, beginning July 1, 2005 [JANUARY 1, 1987], each other employee shall 21 contribute to the system a percentage [AN AMOUNT EQUAL TO SIX AND 22 THREE-QUARTERS PERCENT] of the employee's compensation as determined 23 under AS 39.35.162. The contributions shall be deducted by the employer at the end 24 of each payroll period. The contributions shall be deducted from employee 25 compensation before computation of applicable federal taxes, and the contributions 26 shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may 27 not have the option of making the payroll deduction directly instead of having the 28 contribution picked up by the employer. 29 * Sec. 88. AS 39.35 is amended by adding a new section to read: 30 Sec. 39.35.162. Calculation of employee contribution rate. (a) Each peace 31 officer or fire fighter shall contribute a percentage of the peace officer's or fire fighter's
01 compensation to be determined annually in advance by the administrator. Each other 02 employee shall contribute a percentage of the employee's compensation to be 03 determined annually in advance by the administrator. The employee contribution rate 04 is the greater of 05 (1) 7.5 percent for a peace officer or fire fighter; 06 (2) 6.75 percent for each other employee; or 07 (3) one-half of the normal cost rate actuarially calculated to fund the 08 benefits expected to be earned by active members during the fiscal year. 09 (b) The normal cost rate for peace officers or fire fighters and the employee 10 contribution rate for other employees shall be separately calculated based on the 11 actuarially calculated costs for each group of employees. 12 (c) Notwithstanding (a) of this section, the employee contribution rate may not 13 increase more than one-half of a percentage point annually. 14 * Sec. 89. AS 39.35.165(a) is amended to read: 15 (a) An employee who is eligible to purchase credited service under 16 AS 39.35.310, 39.35.330, 39.35.340, 39.35.342, 39.35.345, [39.35.350,] 39.35.360, or 17 39.35.370, a member who is eligible to purchase credited service under AS 39.35.375, 18 or an elected public official who is eligible to purchase credited service under 19 AS 39.35.381 is an employee for purposes of this section. An employee may, in lieu 20 of making payments directly to the plan, elect to have the employee's employer make 21 payments as provided in this section. 22 * Sec. 90. AS 39.35.165(b) is amended to read: 23 (b) An employee may elect to have the employer make payments for all or any 24 portion of the amounts payable for the employee's purchase of credited service 25 through a salary reduction program as follows: 26 (1) the amounts paid under a salary reduction program are in lieu of 27 contributions by the employee making the election; the electing employee's salary or 28 other compensation shall be reduced by the amount paid by the employer under this 29 subsection; 30 (2) the employee shall make an irrevocable election under this section 31 to purchase credited service as permitted in AS 39.35.310, 39.35.330, 39.35.340,
01 39.35.342, 39.35.345, [39.35.350,] 39.35.360, 39.35.370, 39.35.375, or 39.35.381 and 02 before the employee's termination of employment; the irrevocable election must 03 specify the number of payroll periods that deductions will be made from the 04 employee's compensation and the dollar amount of deductions for each payroll period 05 during the specified number of payroll periods; the deductions made under this 06 paragraph cease upon the earlier of the member's termination of employment with the 07 employer or the member's death; amounts paid by an employer under (f) of this 08 section may not be applied toward the payment of the dollar amount of the deductions 09 representing the portion of the credited service that is being purchased by the member 10 through payroll deduction in accordance with the member's irrevocable election under 11 this subsection; 12 (3) amounts paid by an employer under this subsection shall be treated 13 as employer contributions for the purpose of determining tax treatment under the 14 Internal Revenue Code; the amounts paid by the employer under this section may not 15 be included in the member's gross income for income tax purposes until those amounts 16 are distributed by refund or retirement benefit payments. 17 * Sec. 91. AS 39.35.165(f) is amended to read: 18 (f) The commissioner may accept rollover contributions from a member [AND 19 DIRECT TRANSFERS, AS DESCRIBED IN THIS SUBSECTION, FOR THE 20 PURCHASE, IN WHOLE OR IN PART, OF CREDITED SERVICE FOR THE 21 REINSTATEMENT, IN WHOLE OR IN PART, OF FORFEITED CREDITED 22 SERVICE UNDER AS 39.35.350]. A rollover contribution [OR TRANSFER] as 23 described in this subsection shall also be treated as employer contributions for the 24 purpose of determining tax treatment under the Internal Revenue Code and may be 25 made by any one or a combination of the following methods: 26 (1) subject to the limitations prescribed in 26 U.S.C. 401(a)(3) and 26 27 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more 28 retirement programs of another employer that are qualified under 26 U.S.C. 401(a) or 29 accepting rollovers directly from a member; 30 (2) subject to the limitations prescribed in 26 U.S.C. 408(d)(3)(A)(ii), 31 accepting from a member conduit rollover contributions that are received by the
01 employee from one or more conduit rollover individual retirement accounts previously 02 established by the member; 03 (3) subject to the limitations prescribed in 26 U.S.C. 403(b)(13), 04 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 05 member, on or after January 1, 2002, from a tax sheltered annuity described in 26 06 U.S.C. 403(b); 07 (4) subject to the limitations prescribed in 26 U.S.C. 457(e)(17), 08 accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the 09 member, on or after January 1, 2002, from an eligible deferred compensation plan of a 10 tax-exempt organization or a state or local government described in 26 U.S.C. 457(b); 11 (5) accepting direct trustee-to-trustee transfer from an account 12 established for the benefit of the member in AS 39.30.150 - 39.30.180 (Alaska 13 Supplemental Annuity Plan). 14 * Sec. 92. AS 39.35.165(g) is amended to read: 15 (g) Payments made under this section shall be applied to reduce the 16 employee's outstanding indebtedness described in AS 39.35.310, 39.35.330, 17 39.35.340, 39.35.342, 39.35.345, [39.35.350,] 39.35.360, 39.35.370, 39.35.375, or 18 39.35.381 at the time that the contributions are received by the plan. 19 * Sec. 93. AS 39.35.165(i) is amended to read: 20 (i) On satisfaction of the eligibility requirements of AS 39.35.310, 39.35.330, 21 39.35.340, 39.35.341, 39.35.345, [39.35.350,] 39.35.360, 39.35.370, 39.35.375, or 22 39.35.381, the requirements of this section, and the administrative filing requirements 23 specified by the commissioner, the plan shall adjust the employee's credited service 24 history and add any additional service credits acquired. 25 * Sec. 94. AS 39.35.200 is amended by adding a new subsection to read: 26 (d) An employee who receives a refund of contributions in accordance with 27 this section forfeits corresponding credited service under AS 39.35.095 - 39.35.680. 28 * Sec. 95. AS 39.35.270 is amended to read: 29 Sec. 39.35.270. Amount of employer's contributions. The amount of each 30 employer's contributions shall be determined by applying the employer's contribution 31 rate, as certified by the board, to the total compensation paid to the active employees
01 of the employer for each payroll period and by including any adjustments to 02 contributions required by AS 39.35.520(a). This amount shall be remitted by the 03 employer to the administrator in accordance with AS 39.35.610. 04 * Sec. 96. AS 39.35.270 is amended by adding a new subsection to read: 05 (b) When added to the member contribution rate calculated under 06 AS 39.35.162, the employer contribution may not be less than the rate required, as 07 actuarially calculated, to fully fund the future liabilities of active members. 08 * Sec. 97. AS 39.35.340(f) is amended to read: 09 (f) An employee may not [CANNOT] be credited with a period of active 10 military service in the armed forces of the United States under this section if credit for 11 that military service was granted under AS 14.25.009 - 14.25.220 [AS 14.25]. 12 * Sec. 98. AS 39.35.340(h) is amended to read: 13 (h) The combined period of military service claimed under this section and 14 under AS 14.25.009 - 14.25.220 [AS 14.25] may not exceed five years. 15 * Sec. 99. AS 39.35.360(i) is amended to read: 16 (i) An employee who completes three years of credited service with an 17 employer, for which the employee makes contributions required by AS 39.35.095 - 18 39.35.680 [THIS CHAPTER], is entitled to credited service on a year-for-year basis 19 for service credited in the Civil Service Retirement System, rendered as an employee 20 of an Alaska Bureau of Indian Affairs (BIA) school, other than service as a teacher. 21 When eligibility for retroactive credited service under this subsection has been 22 established, an indebtedness of the employee to the plan [SYSTEM] shall be 23 determined as follows: (1) the employee's actual annual compensation, or the 24 calculated annual compensation for an employee who works fewer than 12 months, for 25 the most recent calendar year in which service is rendered to an employer before the 26 calendar year in which the employee first becomes eligible to claim service under this 27 subsection, multiplied by (2) the number of years of service in Alaska BIA schools 28 that is credited under this subsection, and this product multiplied by (3) six percent for 29 employees first eligible to claim this service before January 1, 1987, or eight and one- 30 half percent for employees first eligible to claim this service on or after January 1, 31 1987. Interest as prescribed by regulation accrues on the indebtedness beginning on
01 the date the employee may first claim the retroactive credited service. Any 02 outstanding indebtedness that exists at the time the employee retires requires an 03 actuarial adjustment to the benefits that are based on retroactive credited service under 04 this subsection. A retirement benefit payable under this subsection for Alaska BIA 05 service shall be reduced by an amount equal to the retirement benefits paid to the 06 member by the United States government for the same service. 07 * Sec. 100. AS 39.35.360(l) is amended to read: 08 (l) An administrative director of the Alaska Court System who withdraws 09 from the judicial retirement system under AS 22.25.012(b) is eligible for membership 10 in the plan [PUBLIC EMPLOYEES' RETIREMENT SYSTEM] and shall receive 11 credited service in this plan [SYSTEM] for service rendered as administrative 12 director. To be eligible for membership in this plan [SYSTEM] under this subsection, 13 the administrative director must contribute to the plan [SYSTEM] 14 (1) the amount that would have been contributed if the administrative 15 director had been a member during the period of the membership in the judicial 16 retirement system; and 17 (2) any contributions for service as administrative director refunded 18 from the plan [PUBLIC EMPLOYEES' RETIREMENT SYSTEM] at the time the 19 administrative director became a member of the judicial retirement system. 20 * Sec. 101. AS 39.35.370(g) is amended to read: 21 (g) When an employee who was employed as a dispatcher in a state trooper 22 office or in a police or fire department in the plan [PUBLIC EMPLOYEES' 23 RETIREMENT SYSTEM] applies for appointment to retirement, the employee may 24 convert the credited service for that position to credited service as a peace officer by 25 claiming the service as peace officer service. An employee who has converted 26 credited service to peace officer service under this subsection shall be treated as a 27 peace officer for purposes of AS 39.35.095 - 39.35.680 [THIS CHAPTER]. When the 28 member claims this credited service as peace officer service, an indebtedness of the 29 member to the plan [SYSTEM] shall be established. The indebtedness is equal to the 30 full actuarial cost of the conversion of the credited service to treatment as peace 31 officer service. Any outstanding indebtedness that exists at the time the member is
01 appointed to retirement shall [WILL] require an actuarial adjustment to the benefits 02 payable based upon the conversion of the credited service. 03 * Sec. 102. AS 39.35.375(a) is amended to read: 04 (a) An active or inactive member who has never been vested in this plan 05 [SYSTEM] or in the teachers' retirement plan [SYSTEM] under AS 14.25.009 - 06 14.25.220 [AS 14.25], who has at least two years of credited service in this plan 07 [SYSTEM], and who has membership service in the teachers' retirement system may 08 claim credited service in this plan [SYSTEM] in an amount equal to the membership 09 service the member has in the teachers' retirement system. The claimed credited 10 service may be added to service earned under AS 39.35.095 - 39.35.680 [THIS 11 CHAPTER] to enable the member to qualify for a public service benefit under this 12 section. The member may not claim credited service for membership service for 13 which the member has received a refund under AS 14.25.150 unless the member fully 14 pays the indebtedness as established under AS 14.25.063. The member may not claim 15 credited service in this plan [SYSTEM] based on unused sick leave under 16 AS 14.25.115. 17 * Sec. 103. AS 39.35.375(b) is amended to read: 18 (b) To claim credited service under this section, the member shall file a 19 written request with the administrator when the member applies to retire. The 20 administrator shall determine the full actuarial cost of benefits based on the member's 21 total credited service and shall transfer from the teachers' retirement system to this 22 plan [SYSTEM] an amount equal to the sum of the member contributions and any 23 indebtedness payments to the teachers' retirement system and the employer 24 contributions to the teachers' retirement system made on behalf of the employee 25 together with interest earned on those contributions and indebtedness payments. If the 26 amount to be transferred, when combined with the amount of employee contributions 27 and indebtedness payments to this plan [SYSTEM] and the amount of employer 28 contributions on behalf of the employee in this plan [SYSTEM], and interest earned 29 on contributions and indebtedness payments for the employee, is less than the full 30 actuarial cost computed under this subsection, an indebtedness to the plan [SYSTEM] 31 equal to the amount of the difference is established. Interest as prescribed by
01 regulation accrues on the indebtedness. The member must pay any outstanding 02 indebtedness existing at the time the member applies for retirement in full before the 03 member is appointed to retirement under this section. 04 * Sec. 104. AS 39.35.375(c) is amended to read: 05 (c) A member is entitled to receive a public service benefit under this section 06 if the member has at least a total of five years credited service under AS 39.35.095 - 07 39.35.680 [THIS CHAPTER] and credited service from the teachers' retirement plan 08 under AS 14.25.009 - 14.25.220 [SYSTEM] claimed under this section. A public 09 service benefit shall be calculated using the higher of the average monthly 10 compensation for service in this plan [SYSTEM] or the average base salary for 11 service in the teachers' retirement plan under AS 14.25.009 - 14.25.220 [SYSTEM]. 12 The amount of the benefit shall be calculated in accordance with AS 39.35.370(c). 13 * Sec. 105. AS 39.35.375(d) is amended to read: 14 (d) Credited service earned under either this plan [SYSTEM] or the teachers' 15 retirement system that has been claimed for a public service benefit under this section 16 may not be used for any other purpose. A member who claims credited service under 17 this section loses all rights to benefits under AS 14.25 based on the claimed credited 18 service. A member may not claim credited service under this section unless the 19 member claims all of the membership service the member has in the teachers' 20 retirement system. A public service benefit does not constitute a normal or early 21 retirement benefit for purposes of qualifying for a conditional service retirement 22 benefit under AS 14.25.125 or AS 39.35.385. 23 * Sec. 106. AS 39.35.375(f) is amended to read: 24 (f) Notwithstanding AS 14.25.063 and AS 39.35.350, a former member of the 25 teachers' retirement system who is an active member or inactive member of this plan 26 [SYSTEM] may reinstate, under this section, membership service earned under 27 AS 14.25 for which the member received a refund of contributions. 28 * Sec. 107. AS 39.35.375(f) is amended to read: 29 (f) Notwithstanding AS 14.25.063 [AND AS 39.35.350], a former member of 30 the teachers' retirement system who is an active member or inactive member of this 31 plan may reinstate, under this section, membership service earned under AS 14.25 for
01 which the member received a refund of contributions. 02 * Sec. 108. AS 39.35.375(g) is amended to read: 03 (g) If a member retires under this section and subsequently returns to work for 04 an employer under this plan [SYSTEM] or the teachers' retirement system, benefits 05 under this section shall cease during the period of reemployment and shall 06 recommence when the reemployment is ended. The credited service earned during the 07 period of reemployment may not be added to the credited service claimed for a public 08 service benefit under this section. If a member vests and meets the other eligibility 09 requirements under this system or the teachers' retirement system during the 10 reemployment, the member is entitled to a benefit under AS 14.25.009 - 14.25.220 11 [AS 14.25] or 39.35.095 - 39.35.680 [AS 39.35], as appropriate. 12 * Sec. 109. AS 39.35.375 is amended by adding a new subsection to read: 13 (h) In this section, 14 (1) "teachers' retirement system" and "teachers' retirement system 15 under AS 14.25" means the teachers' retirement plan established in AS 14.25.009 - 16 14.25.220; 17 (2) "membership service earned under AS 14.25" means membership 18 service earned under AS 14.25.009 - 14.25.220. 19 * Sec. 110. AS 39.35.381(a) is amended to read: 20 (a) An elected public officer is eligible for a public officer benefit if the officer 21 is retired under AS 14.25.009 - 14.25.220 [AS 14.25 (TEACHERS' RETIREMENT 22 SYSTEM)]. Only fully paid credited service as an elected public officer of a 23 municipality or other political subdivision, earned while the municipality or political 24 subdivision was an employer under this plan [SYSTEM] and while the person was 25 employed full-time under AS 14.25.009 - 14.25.220 [AS 14.25], may be counted 26 under this section. 27 * Sec. 111. AS 39.35.385(f) is amended to read: 28 (f) Subject to AS 39.35.450, an employee is eligible for a normal retirement 29 benefit at age 60 or an early retirement benefit at age 55 if the employee was first 30 hired as a legislative employee before May 30, 1987, and has at least 120 [60] days of 31 credited service as an employee of the legislature, other than as an employee of the
01 Office of the Ombudsman or the office of victims' rights, during each of five 02 legislative sessions. An employee who was first hired as a legislative employee on or 03 after May 30, 1987, and is otherwise eligible under this subsection must have at least 04 120 [80] days of credited service during each of five legislative sessions to receive 05 benefits under this subsection. 06 * Sec. 112. AS 39.35.410(f) is amended to read: 07 (f) An employee is not entitled to an occupational disability benefit unless the 08 employee files an application for it with the administrator within 90 days of the date of 09 terminating employment. If the employee is unable to meet a filing requirement of 10 this subsection, it may be waived by the commissioner [PUBLIC EMPLOYEES' 11 RETIREMENT BOARD] if there are extraordinary circumstances that resulted in the 12 employee's inability to meet the filing requirement. [THE BOARD MAY 13 DELEGATE THE AUTHORITY TO WAIVE A FILING DEADLINE UNDER THIS 14 SUBSECTION TO THE ADMINISTRATOR.] 15 * Sec. 113. AS 39.35.475(a), as that subsection read following amendment by sec. 34, ch. 16 146, SLA 1980, until amended by sec. 41, ch. 82, SLA 1986, is amended to read: 17 (a) When the administrator determines that the cost of living has increased and 18 that the financial condition of the retirement fund permits, the administrator [HE] 19 shall increase benefit payments to persons receiving benefits under this plan. For 20 purposes of this subsection, the financial condition of the fund would only permit 21 an increase in benefits when the ratio of total fund assets to the accrued liability 22 meets or exceeds 110 percent. In this subsection, "accrued liability" means the 23 present value of all member benefits accrued by member service in this plan 24 [SYSTEM]. 25 * Sec. 114. AS 39.35.485(a) is amended to read: 26 (a) An employee who is eligible for a benefit calculated in accordance with 27 AS 39.35.370(c) is entitled to a benefit of at least $25 a month for each year of 28 credited service, not including adjustments made under AS 39.35.340 for military 29 service, [AS 39.35.350 FOR REINSTATEMENT OF CREDITED SERVICE,] 30 AS 39.35.360 for credit for earlier service, AS 39.35.370(c) for early retirement, 31 AS 39.35.420 for nonoccupational death benefits, AS 39.35.450 for the survivor's
01 option, former AS 39.35.460 for the level income option, AS 39.35.475 for the post- 02 retirement pension adjustment, and AS 39.35.480 for the cost of living. 03 * Sec. 115. AS 39.35.680(2) is amended to read: 04 (2) "actuarial adjustment" means the adjustment necessary to obtain 05 equality in value of the aggregate expected payments under two different forms of 06 pension payments, considering expected mortality and interest earnings on the basis of 07 assumptions, factors, and methods specified in regulations issued under this plan 08 [SYSTEM] that are formally adopted [UNDER AS 39.35.042] by the board that 09 clearly preclude employer discretion in the determination of the amount of any 10 member's benefit; 11 * Sec. 116. AS 39.35.680(6) is amended to read: 12 (6) "board" means the Alaska Retirement Management [PUBLIC 13 EMPLOYEES RETIREMENT] Board; 14 * Sec. 117. AS 39.35.680(21) is amended to read: 15 (21) "member" or "employee" 16 (A) means a person eligible to participate in the system and 17 who is covered by the system; 18 (B) includes 19 (i) an active member; 20 (ii) an inactive member; 21 (iii) a vested member; 22 (iv) a deferred vested member; 23 (v) a nonvested member; 24 (vi) a disabled member; 25 (vii) a retired member; 26 (viii) an elected public officer under AS 39.35.381; 27 (C) does not include 28 (i) former members; 29 (ii) persons compensated on a contractual or fee basis; 30 (iii) casual or emergency workers or nonpermanent 31 employees as defined in AS 39.25.200;
01 (iv) persons covered by the Alaska Teachers' 02 Retirement System except as provided under AS 39.35.131 and 03 39.35.381, or persons covered by a [THE OPTIONAL] university 04 retirement program; 05 (v) employees of the division of marine transportation 06 engaged in operating the state ferry system who are covered by a union 07 or group retirement system to which the state makes contributions; 08 (vi) justices of the supreme court or judges of the court 09 of appeals or of the superior or district courts of Alaska; 10 (vii) the administrative director of courts appointed 11 under art. IV, sec. 16 of the state constitution unless the director 12 becomes a member under AS 39.35.158; 13 (viii) members of the elected public officers' retirement 14 system (former AS 39.37); and 15 (ix) contractual employees of the legislative branch of 16 state government under AS 24.10.060(f); 17 (D) may include employees of the division of marine 18 transportation excluded under (C)(v) of this paragraph provided that 19 (i) the State of Alaska formally agrees to their inclusion 20 through the process of collective bargaining; and 21 (ii) no collective bargaining agreement has the effect of 22 obligating contributions made by the state under AS 39.30.150 in the 23 event the state resumes participation in the federal social security 24 system; 25 * Sec. 118. AS 39.35.680(34) is amended to read: 26 (34) "qualified domestic relations order" means a divorce or 27 dissolution judgment under AS 25.24, including an order approving a property 28 settlement, that 29 (A) creates or recognizes the existence of an alternate payee's 30 right to, or assigns to an alternate payee the right to, receive all or a portion of 31 employee contribution account or the benefits payable with respect to an
01 employee; 02 (B) sets out the name and last known mailing address, if any, of 03 the employee and of each alternate payee covered by the order; 04 (C) sets out the amount or percentage of the employee's benefit, 05 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 06 manner in which that amount or percentage is to be determined; 07 (D) sets out the number of payments or period to which the 08 order applies; 09 (E) sets out the retirement plan [SYSTEM] to which the order 10 applies; 11 (F) does not require any type or form of benefit or any option 12 not otherwise provided by AS 39.35.095 - 39.35.680 [THIS CHAPTER]; 13 (G) does not require an increase of benefits in excess of the 14 amount provided by AS 39.35.095 - 39.35.680 [THIS CHAPTER], determined 15 on the basis of actuarial value; and 16 (H) 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. 119. AS 39.35.680 is amended by adding new paragraphs to read: 20 (41) "commissioner" means the commissioner of administration; 21 (42) "plan" means the retirement plan established in AS 39.35.095 - 22 39.35.680. 23 * Sec. 120. AS 39.35 is amended by adding new sections to read: 24 Article 9. Employees First Hired on or after July 1, 2005. 25 Sec. 39.35.700. Applicability of AS 39.35.700 - 39.35.990. The provisions of 26 AS 39.35.700 - 39.35.990 apply only to members first hired on or after July 1, 2005 or 27 to members who transfer into the defined contribution plan under AS 39.35.940. 28 Sec. 39.35.710. Defined contribution retirement plan established; federal 29 qualification requirements. (a) A defined contribution retirement plan is established 30 for employees of the state or a political subdivision or public organization of the state. 31 (b) The defined contribution retirement plan is a plan in which savings are
01 accumulated in an individual retirement account for the exclusive benefit of the 02 member or beneficiaries. The plan is established effective July 1, 2005, at which time 03 contributions by employers and members begin. 04 (c) The retirement plan established by AS 39.35.700 - 39.35.990 is intended to 05 qualify under 26 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified 06 retirement plan established and maintained by the state for its employees, for the 07 employees of political subdivisions, public corporations, and public organizations of 08 the state, and for the employees of other employers whose participation is authorized 09 by AS 39.35.700 - 39.35.990 and who participate in the plan set out in AS 39.35.700 - 10 39.35.990. 11 (d) An amendment to AS 39.35.700 - 39.35.990 does not provide a person 12 with a vested right to a benefit if the Internal Revenue Service determines that the 13 amendment will result in disqualification of the plan under the Internal Revenue Code. 14 Sec. 39.35.720. Membership. An employee who becomes a member on or 15 after July 1, 2005, shall participate in the plan set out in AS 39.35.700 - 39.35.990. 16 Sec. 39.35.730. Contributions by members. (a) Each member shall 17 contribute to the member's individual account an amount equal to eight percent of the 18 member's compensation from July 1 to the following June 30. 19 (b) Subject to the limitations on contributions under AS 39.35.780, a member 20 may elect to make additional contributions to the member's individual account. 21 (c) The employer shall deduct the contribution from the member's 22 compensation at the end of each payroll period, and the contribution shall be credited 23 by the plan to the member's individual account. The contributions shall be deducted 24 from member's compensation before the computation of applicable federal taxes and 25 shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may 26 not have the option of making the payroll deduction directly in cash instead of having 27 the contribution picked up by the employer. 28 Sec. 39.35.740. Employment contributions mandatory. Contributions of 29 employees shall be made by payroll deductions. Every included employee shall be 30 considered to consent to payroll deductions. It is of no consequence that a payroll 31 deduction may cause the compensation paid in cash to an employee to be reduced
01 below the minimum required by law. Payment of an employee's compensation, less 02 payroll deductions, is a full and complete discharge and satisfaction of all claims and 03 demands by the employee relating to remuneration of services during the period 04 covered by the payment, except with respect to the benefits provided under the plan. 05 Sec. 39.35.750. Contributions by employers. (a) An employer shall 06 contribute to each member's individual account an amount equal to 4.5 percent of the 07 member's compensation from July 1 to the following June 30. 08 (b) An employer shall also contribute an amount equal to 1.75 percent of each 09 member's compensation from July 1 to the following June 30 to pay for retiree major 10 medical insurance. This contribution shall be paid into the group health and life 11 benefits fund established by the commissioner of administration under AS 39.30.095 12 and shall be accounted for in accordance with regulations established by the 13 commissioner. 14 (c) An employer shall also make contributions to the health reimbursement 15 arrangement plan under AS 39.30.300. 16 Sec. 39.35.760. Rollover contributions and distributions. (a) An employee 17 entering the plan may elect, at the time and in the manner prescribed by the 18 administrator, to have all or part of a direct rollover distribution from an eligible 19 retirement plan owned by the member paid directly into the member's individual 20 account. 21 (b) Rollover contributions do not count as a purchase of membership service 22 for the purpose of determining years of service. 23 (c) A distributee may elect, at the time and in the manner prescribed by the 24 administrator, to have all or part of an eligible rollover distribution paid directly to an 25 eligible retirement plan specified by the distributee in the direct rollover. 26 (d) In this section, 27 (1) "direct rollover" means the payment of an eligible rollover 28 distribution by the plan to an eligible retirement plan specified by a distributee who is 29 eligible to elect a direct rollover; 30 (2) "distributee" means a member, or a beneficiary who is the 31 surviving spouse of the member, or an alternate payee;
01 (3) "eligible retirement plan" means 02 (A) a conduit individual retirement account described in 26 03 U.S.C. 408(d)(3)(A); 04 (B) an annuity plan described in 26 U.S.C. 403(a); 05 (C) a qualified trust described in 26 U.S.C. 401(a); 06 (D) an annuity plan described in 26 U.S.C. 403(b); or 07 (E) a governmental plan described in 26 U.S.C. 457(b); 08 (4) "eligible rollover distribution" means a distribution of all or part of 09 a total account to a distributee, except for 10 (A) a distribution that is one of a series of substantially equal 11 installments payable not less frequently than annually over the life expectancy 12 of the distributee or the joint and last survivor life expectancy of the distributee 13 and the distributee's designated beneficiary, as defined in 26 U.S.C. 401(a)(9); 14 (B) a distribution that is one of a series of substantially equal 15 installments payable not less frequently than annually over a specified period 16 of 10 years or more; 17 (C) a distribution that is required under 26 U.S.C. 401(a)(9); 18 (D) the portion of any distribution that is not includable in 19 gross income; 20 (E) a distribution that is on account of hardship; and 21 (F) other distributions that are reasonably expected to total less 22 than $200 during a year. 23 Sec. 39.35.770. Transmittal of contributions. All contributions deducted in 24 accordance with AS 39.35.700 - 39.35.990 shall be transmitted to the plan for deposit 25 in the trust fund as soon as administratively feasible, but in no event later than 15 days 26 following the close of the payroll period. 27 Sec. 39.35.780. Limitations on contributions. Notwithstanding any other 28 provisions of this plan, the annual additions to each member's individual account 29 under this plan and under all defined contribution plans of the employer required to be 30 aggregated with the contributions from this plan under the provisions of 26 U.S.C. 415 31 may not exceed, for any limitation year, the amount permitted under 26 U.S.C. 415 at
01 any time. If the amount of a member's defined contribution plan contributions exceeds 02 the limitation of 26 U.S.C. 415(c) for any limitation year, the administrator shall take 03 any necessary remedial action to correct an excess contribution. The provisions of 26 04 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified 05 defined contribution plans of governmental employees are incorporated as part of the 06 terms and conditions of the plan. 07 Sec. 39.35.790. Vesting. (a) A participating member is immediately and 08 fully vested in that member's contributions and related earnings. 09 (b) A member shall be fully vested in the employer contributions made on that 10 member's behalf, and related earnings, after five years of service. A member is 11 partially vested in the employer contributions made on that member's behalf, and the 12 related earnings, in the ratio of 13 (1) 25 percent with two years of service; 14 (2) 50 percent with three years of service; and 15 (3) 75 percent with four years of service. 16 Sec. 39.35.800. Investment of individual accounts. (a) The board shall 17 provide a range of investment options and permit a participant to exercise investment 18 control over the participant's assets in the member's individual account as provided in 19 this section. If a participant exercises control over the assets in the individual account, 20 the participant is not considered a fiduciary for any reason on the basis of exercising 21 that control. 22 (b) A participant may direct investment of plan funds held in an account 23 among available investment funds in accordance with rules established by the board. 24 (c) A participant may elect to change or transfer all or a portion of the 25 participant's existing account balance among available investment funds not more 26 often than once each day in accordance with the rules established by the administrator. 27 Only the last election received by the administrator before the transmittal of 28 contributions to the trust fund for allocation to the individual account shall be used to 29 direct the investment of the contributions received. 30 (d) Except to the extent clearly set out in the terms of the investment plans 31 offered by the employer to the employee, the employer is not liable to the participant
01 for investment losses if the prudent investment standard has been met. 02 (e) The employer, administrator, state, board, or a person or entity who is 03 otherwise a fiduciary is not liable by reason for any participant's investment loss that 04 results from the participant's directing the investment of plan assets allocated to the 05 participant's account. 06 (f) To the extent that a member's individual account has been divided as 07 provided in a qualified domestic relations order between participants, each participant 08 shall be treated as the holder of a separate individual account for purposes of 09 investment yields, decisions, transfers, and time limitations imposed by this section. 10 Sec. 39.35.810. Distribution election at termination. (a) A member is 11 eligible to elect distribution of the member's account in accordance with this section 12 60 days after termination of employment. 13 (b) Notwithstanding (a) of this section, distribution of all or a portion of the 14 individual account of a member may take place before the 60th day after the 15 termination of employment with the approval of the administrator if the member 16 makes a written request for a distribution under this subsection. The member's spouse 17 must consent to the request in writing if the member is married. Distribution of an 18 individual account may only be made on account of an immediate and heavy financial 19 need of the member for the following reasons and in the amount the need is 20 demonstrated for 21 (1) medical care described in 26 U.S.C. 213(d) incurred by the 22 member, the member's spouse, or the member's dependent, or necessary to obtain that 23 medical care; 24 (2) the purchase of a principal residence for the member; 25 (3) postsecondary education tuition and related educational fees for the 26 next 12-month period for the member, the member's spouse, or a dependent of the 27 member; in this paragraph, "dependent" has the meaning given in 26 U.S.C. 152; 28 (4) prevention of the eviction of the member from the member's 29 principal residence or foreclosure on the mortgage of the member's principal 30 residence; or 31 (5) any need prescribed by the United States Department of the
01 Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of 02 general applicability that satisfies the safe harbor definition of hardship under 03 regulations adopted under 26 U.S.C. 401(k). 04 (c) If a member dies before benefits commence, the member's beneficiary is 05 immediately eligible to elect distribution of the member's share of the member's 06 individual account. 07 (d) Distributions are payable to an alternate payee in accordance with the 08 terms and conditions of a qualified domestic relations order that is received and 09 approved by the administrator as specified in AS 39.35.860. 10 (e) Distributions that are being paid to a member may not be affected by the 11 member's subsequent reemployment with the employer. Upon reemployment, a new 12 individual account shall be established for the member to which any future 13 contributions shall be allocated. Upon subsequent termination of employment, the 14 member's new individual account shall be distributed in accordance with this section. 15 Sec. 39.35.820. Forms of distribution. (a) A participant may elect to receive 16 the participant's share of the individual account in a 17 (1) lump sum payment, which is a single payment of the entire balance 18 in the account; 19 (2) periodic lump sum payment, which is a payment of a portion of the 20 balance in the account, not more than twice each year; 21 (3) period certain annuity payment, which is an annuity payable in a 22 fixed number of monthly installments for a duration of 60, 120, or 180 months; 23 (4) life annuity with a period certain payment, which is an annuity 24 payable until the later of the first day of the month in which the annuitant's death 25 occurs, or the date on which the payment of a fixed number of monthly installments is 26 completed; the period certain for installments is 120 or 180 months; 27 (5) single life annuity payment, which is an annuity payable monthly 28 until the first of the month in which the annuitant's death occurs; or 29 (6) joint and survivor annuity payment, which is an annuity payable 30 monthly to the member until the first of the month in which the member's death 31 occurs; after the member's death, a survivor annuity equal to 50 percent or 100 percent
01 of the member's benefit, as previously elected by the member, shall be paid monthly to 02 the joint annuitant for the remainder of the survivor's lifetime. 03 (b) Upon the death of an annuitant whose payments have commenced, an 04 annuitant's beneficiary shall receive further payments only to the extent provided in 05 accordance with the form of payment that was being made to the annuitant. The 06 remaining portion of the interest shall continue to be distributed at least as rapidly as 07 under the method of distribution being used before the annuitant's death. 08 (c) If a participant dies before the distribution commencement date, 09 distribution of the participant's entire interest to a beneficiary shall be payable in any 10 form other than a joint and survivor annuity. 11 (d) If an unmarried member or other participant fails to elect a form of 12 payment before the distribution commencement date, the account shall be paid to a 13 beneficiary in the form of a lump sum to the extent required by the minimum 14 distribution requirements set out in the Internal Revenue Code. If a married member 15 fails to elect a form of payment before the distribution commencement date, the 16 account shall be paid in the form of a 50 percent joint and survivor annuity, with the 17 member's spouse as the joint annuitant. 18 Sec. 39.35.830. Manner of electing distributions. (a) Any election or any 19 alteration or revocation of a prior election by a participant for any purpose under this 20 plan shall be on forms or made in a manner prescribed for that purpose by the plan 21 administrator. To be effective, the forms required or the required action for any 22 purpose under this plan must be completed and received in accordance with 23 regulations adopted by the commissioner of administration. 24 (b) At any time, but not less than seven days before the benefit 25 commencement date, a member, alternate payee, or beneficiary may change 26 (1) the form of payment election; 27 (2) an election to commence benefits; or 28 (3) the joint annuitant designation. 29 (c) Changes in elections are not allowed on or after seven days before the 30 benefit commencement date. 31 Sec. 39.35.840. Distribution requirements. (a) Payments to a participant
01 shall commence as soon as administratively feasible following the distribution 02 commencement date. The distribution commencement date is the first date on which 03 one of the following occurs: 04 (1) a member meets the requirements of AS 39.35.810 and has made a 05 complete application for payment under AS 39.35.830; 06 (2) a participant has elected to defer receipt of the account to a date 07 specified, the date has been attained, and the participant has made a complete 08 application for payment; 09 (3) a member attains normal retirement age and has not made an 10 application for payment or elected to defer receipt of the account to a date later than 11 normal retirement age; 12 (4) a member's beneficiary does not make an application for benefits 13 and five years have elapsed since the member's death; 14 (5) notwithstanding (a) of this section, a participant whose account has 15 a balance of $1,000 or less meets the requirements of AS 39.35.810, at which time the 16 participant must take payment of the participant's account. 17 (b) The entire interest of a member must be distributed or must begin to be 18 distributed not later than the member's required beginning date. 19 (c) If a member dies after the distribution of the member's interest has begun 20 but before the distribution has been completed, the remaining portion of the interest 21 shall continue to be distributed at least as rapidly as under the method of distribution 22 being used before the member's death. 23 (d) If a member has made a distribution election and dies before the 24 distribution of the member's interest begins, distribution of the member's entire interest 25 shall be completed by December 31 of the calendar year containing the fifth 26 anniversary of the member's death. However, if any portion of the member's interest 27 is payable to a designated beneficiary, distributions may be made over the life of the 28 designated beneficiary or over a period certain not greater than the life expectancy of 29 the designated beneficiary, commencing on or before December 31 of the calendar 30 year immediately following the calendar year in which the member died, and, if the 31 designated beneficiary is the member's surviving spouse, the date distributions are
01 required to begin may not be earlier than the later of December 31 of the calendar year 02 (1) immediately following the calendar year in which the member died, or (2) in which 03 the member would have attained 70 1/2 years of age, whichever is earlier. If the 04 surviving spouse dies after the member but before payments to the spouse have begun, 05 the provisions of this subsection apply as if the surviving spouse were the member. 06 An amount paid to a child of the member shall be treated as if it were paid to the 07 surviving spouse if the amount becomes payable to the surviving spouse when the 08 child reaches the age of majority. 09 (e) If a member has not made a distribution election before the member's 10 death, the member's designated beneficiary must elect the method of distribution not 11 later than December 31 of the calendar year (1) in which distributions would be 12 required to begin under this section, or (2) that contains the fifth anniversary of the 13 date of death of the member, whichever is earlier. If the member does not have a 14 designated beneficiary or if the designated beneficiary does not elect a method of 15 distribution, distribution of the member's entire interest must be completed by 16 December 31 of the calendar year containing the fifth anniversary of the member's 17 death. 18 (f) For purposes of (b) of this section, distribution of a member's interest is 19 considered to begin (1) on the member's required beginning date, or (2) if the 20 designated beneficiary is the member's surviving spouse and the surviving spouse dies 21 after the member but before payments to the spouse have begun, on the date 22 distribution is required to begin to the surviving spouse. If distribution in the form of 23 an annuity irrevocably commences to the member before the required beginning date, 24 the date distribution is considered to begin is the date that the distribution actually 25 commences. 26 (g) Notwithstanding any contrary provisions of AS 39.35.700 - 39.35.990, the 27 requirements of this section apply to all distributions of a member's interest and take 28 precedence over any inconsistent provisions of AS 39.35.700 - 39.35.990. 29 (h) All distributions required under this section are determined and made in 30 accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, 31 including any minimum distribution incidental benefit requirement.
01 (i) In this section, 02 (1) "designated beneficiary" means the individual who is designated as 03 the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations 04 adopted under that statute; 05 (2) "required beginning date" means the first day of April of the 06 calendar year following the calendar year in which the member either attains 70 1/2 07 years of age or actually terminates employment, whichever is later. 08 Sec. 39.35.850. Designation of beneficiary. (a) Each participant shall have 09 the right to designate a beneficiary and shall have the right, at any time, to revoke the 10 designation or to substitute another beneficiary, subject to the following limitation: if a 11 married member elects a nonspouse beneficiary, the value of the benefit payable to the 12 beneficiary may not exceed 50 percent of the member's portion of the account balance, 13 and the member's spouse shall automatically be considered the beneficiary for the 14 remaining 50 percent of the account balance, unless the spouse consents to the 15 beneficiary designation in a writing that is notarized or witnessed by the administrator. 16 If the spouse consents in this manner, a married member may designate a nonspouse 17 beneficiary for the entire benefit or any portion the benefit as part of an available form 18 of payment contained in this plan, 19 (1) except to the extent a qualified domestic relations order filed with 20 the administrator provides for payment to a former spouse or other dependent of the 21 member; or 22 (2) unless the member filed a revocation of beneficiary accompanied 23 by a written consent to the revocation from the present spouse and each person entitled 24 under the order; however, consent of the present spouse is not required if the member 25 and the present spouse had been married for less than one year on the date of the 26 member's death and if the member established when filing the revocation that the 27 member and the present spouse were not cohabiting. 28 (b) Except as provided in (a) of this section, the member may change or 29 revoke the designation without notice to the beneficiary or beneficiaries at any time. 30 If a member designates more than one beneficiary, each shares equally unless the 31 member specifies a different allocation or preference. The designation of a
01 beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a 02 beneficiary shall be made on a form provided by the administrator and is not effective 03 until filed with the administrator. 04 (c) If a member fails to designate a beneficiary, or if no designated beneficiary 05 survives the member, the death benefit shall be paid 06 (1) to the surviving spouse or, if there is none surviving; 07 (2) to the surviving children of the member in equal parts or, if there 08 are none surviving; 09 (3) to the surviving parents in equal parts or, if there are none 10 surviving; 11 (4) to the estate. 12 (d) A person claiming entitlement to benefits payable under AS 39.35.700 - 13 39.35.990 as a consequence of a member's death shall provide the administrator with a 14 marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. 15 Documents establishing entitlement may be filed with the administrator immediately 16 after a change in the member's marital status. If the administrator does not receive 17 notification of a claim before the date 10 days after the member's death, the person 18 claiming entitlement is not entitled to receive from the division of retirement and 19 benefits any benefit already paid by the administrator. 20 Sec. 39.35.860. Rights under qualified domestic relations order. (a) 21 Notwithstanding the nonalienation provisions in AS 39.35.900(a), the plan 22 administrator may direct that benefits be paid to someone other than a member or 23 beneficiary under a valid qualified domestic relations order that is executed by the 24 judge of a competent court in accordance with applicable state law and that has been 25 accepted by the administrator. 26 (b) The administrator shall determine whether an order meets the requirements 27 of this section within a reasonable period after receiving an order. The administrator 28 shall notify the member and any alternate payee that an order has been received and 29 indicate to the member and any alternate payee when the order is accepted. A separate 30 account for the alternate payee portion shall be established as soon as administratively 31 feasible after the order has been accepted by the administrator.
01 Sec. 39.35.870. Eligibility to elect medical benefits. (a) A member is 02 eligible to elect the medical benefits under AS 39.35.880 if the member 03 (1) has at least 25 years of service as a peace officer or fire fighter or at 04 least 30 years of service for all other employees; or 05 (2) is 65 years of age and has at least 10 years of service. 06 (b) A member's surviving spouse is eligible to elect medical benefits under 07 AS 39.35.880 if the member had elected, or was eligible to elect medical benefits at 08 the time of the member's death. 09 (c) Members shall elect or reject medical benefits on the forms and in the 10 manner prescribed by the administrator. The decision to elect or reject benefits is 11 irrevocable. 12 (d) Election of the retiree major medical insurance plan is not required in 13 order to elect participation in the health reimbursement arrangement. 14 (e) A person eligible to elect medical benefits is not required to participate in 15 the health reimbursement arrangement in order to elect participation in the retiree 16 major medical insurance plan. 17 (f) An eligible person must make the irrevocable election to participate or not 18 participate in the retiree major medical insurance by reaching 70 1/2 years of age, or 19 upon termination of employment, whichever is later. 20 Sec. 39.35.880. Medical benefits. (a) The medical benefits available to 21 eligible persons are access to the retiree major medical insurance plan and to the 22 health reimbursement arrangement under AS 39.30.300. Access to the retiree major 23 medical insurance plan means that an eligible person may not be denied insurance 24 coverage except for failure to pay the required premium. 25 (b) Retiree major medical insurance plan coverage elected by an eligible 26 member under this section covers the eligible member, the spouse of the eligible 27 member, and the dependent children of the eligible member. 28 (c) Retiree major medical insurance plan coverage elected by a surviving 29 spouse of an eligible member under this section covers the surviving spouse and the 30 dependent children of the eligible member who are dependent on the surviving spouse. 31 (d) Major medical insurance coverage takes effect on the first day of the
01 month following the date of the administrator's approval of the election and stops 02 when the person who elects coverage dies or fails to make a required premium 03 payment. 04 (e) The coverage for persons 65 years of age or older is the same as that 05 available for persons under 65 years of age. The benefits payable to those persons 65 06 years of age or older supplement any benefits provided under the federal old age, 07 survivors and disability insurance program. 08 (f) The medical and optional insurance premiums owed by the person who 09 elects coverage may be deducted from the health reimbursement arrangement. If the 10 amount of the health reimbursement arrangement becomes insufficient to pay the 11 premiums, the person who elects coverage under (a) of this section shall pay the 12 premiums directly. 13 (g) The cost of premiums for retiree major medical insurance coverage for an 14 eligible member or surviving spouse who is 15 (1) not eligible for Medicare is an amount equal to the full monthly 16 group premiums for retiree major medical insurance coverage; 17 (2) eligible for Medicare is the following percentage of the premium 18 amounts established for retirees who are eligible for Medicare: 19 (A) 30 percent if the member had 10 or more, but less than 15, 20 years of service; 21 (B) 25 percent if the member had 15 or more, but less than 20, 22 years of service; 23 (C) 20 percent if the member had 20 or more, but less than 25, 24 years of service; 25 (D) 15 percent if the member had 25 or more, but less than 30, 26 years of service; 27 (E) 10 percent if the member had 30 or more years of service. 28 (h) The eligibility for retiree major medical insurance coverage for an 29 alternate payee under a qualified domestic relations order shall be determined based 30 on the eligibility of the member to elect coverage. The alternate payee shall pay the 31 full monthly premium for retiree major medical insurance coverage.
01 (i) A person who is entitled to retiree major medical insurance coverage shall 02 (1) be informed by the administrator in writing 03 (A) that the health insurance coverage available to retired 04 members may be different from the health insurance coverage provided to 05 employees; 06 (B) of time limits for selecting optional health insurance 07 coverage and whether the election is irrevocable; and 08 (2) indicate in writing on a form provided by the administrator that the 09 person has received the information required by this subsection and whether the 10 person has chosen to receive optional health insurance coverage. 11 (j) The monthly group premiums for retiree major medical insurance coverage 12 are established by the administrator in accordance with AS 39.30.095. Nothing in 13 AS 39.35.700 - 39.35.990 guarantees a person who elects coverage under (a) of this 14 section a monthly group premium rate for retiree major medical insurance coverage 15 other than the premium in effect for the month in which the premium is due for 16 coverage for that month. 17 (k) In this section, "health reimbursement arrangement" means the plan 18 established in AS 39.30.300. 19 Sec. 39.35.890. Amendment and termination of plan. (a) The state has the 20 right to amend the plan at any time and from time to time, in whole or in part, 21 including the right to make retroactive amendments referred to in 26 U.S.C. 401(b). 22 (b) The plan administrator may not modify or amend the plan retroactively in 23 such a manner as to reduce the benefits of any member accrued to date under the plan 24 by reason of contributions made before the modification or amendment except to the 25 extent that the reduction is permitted by the Internal Revenue Code. 26 (c) The state may, in its discretion, terminate the plan in whole or part at any 27 time without liability for the termination. If the plan is terminated, all investments 28 remain in force until all individual accounts have been completely distributed under 29 the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer. 30 (d) Any contribution made by an employer to the plan because of a mistake of 31 fact must be returned to the employer by the administrator within one year after the
01 contribution or discovery, whichever is later. 02 Sec. 39.35.900. Exclusive benefit. (a) The corpus or income of the assets 03 held in trust as required by the plan may not be diverted or used for other than the 04 exclusive benefit of the participants. 05 (b) If plan benefits are provided through the distribution of annuity or 06 insurance contracts, any refunds or credits in excess of plan benefits due to dividends, 07 earnings, or other experience rating credits, or surrender or cancellation credits, shall 08 be paid to the trust fund. 09 (c) The assets of the plan may not be used to pay premiums or contributions of 10 the employer under another plan maintained by the employer. 11 Sec. 39.35.910. Nonguarantee of returns, rates, or benefit amounts. The 12 plan created by AS 39.35.700 - 39.35.990 is a defined contribution plan, not a defined 13 benefit plan. The amount of money in the account of a participant depends on the 14 amount of contributions and the rate of return from investments of the account that 15 varies over time. If benefits are paid in the form of an annuity, the benefit amount 16 payable is dependent on the amount of money in the account and the interest rates 17 applied and service fees charged by the annuity payor at the time benefits are first 18 paid. Nothing in this plan guarantees a participant 19 (1) a rate of return or interest rate other than that actually earned by the 20 account of the participant, less applicable administrative expenses; or 21 (2) an annuity based on interest rates or service charges other than 22 interest rates available from and service charges by the annuity payor in effect at the 23 time the annuity is paid. 24 Sec. 39.35.920. Nonguarantee of employment. The provisions of 25 AS 39.35.700 - 39.35.990 are not a contract of employment between an employer and 26 an employee, nor do they confer a right of an employee to be continued in the 27 employment of an employer, nor are they a limitation of the right of an employer to 28 discharge an employee with or without cause. 29 Sec. 39.35.930. Fraud. A person who knowingly makes a false statement or 30 falsifies or permits to be falsified a record of this plan in an attempt to defraud the plan 31 is guilty of a class A misdemeanor.
01 Sec. 39.35.940. Transfer into defined contribution plan by nonvested 02 members of defined benefit plan. (a) Subject to (g) of this section, an active 03 member of the defined benefit retirement plan of the public employees' retirement 04 system is eligible to participate in the defined contribution retirement plan established 05 under AS 39.35.700 - 39.35.990, if that member has not vested. Participation in the 06 defined contribution retirement plan is in lieu of participation in the defined benefit 07 retirement plan established under AS 39.35.095 - 39.35.680. 08 (b) A member who has vested in a defined benefit retirement plan is not 09 eligible to transfer under this section. 10 (c) Each eligible member who elects to participate in the defined contribution 11 retirement plan shall have transferred to a new account the present value of the 12 member contribution account balance held in trust for the member under the defined 13 benefit retirement plan of the public employees' retirement system. A matching 14 employer contribution shall be made on behalf of that employee to the new account. 15 Upon a transfer, all service credit previously earned under the defined benefit 16 retirement plan shall be nullified for purposes of entitlement to a future benefit under 17 the defined benefit retirement plan but shall be credited for purposes of eligibility to 18 elect medical benefits under AS 39.35.870. An eligible member whose accounts are 19 subject to a qualified domestic relations order may not make an election to participate 20 in the defined contribution retirement plan under this subsection unless the qualified 21 domestic relations order is amended or vacated and court-certified copies of the order 22 are received by the administrator. 23 (d) As directed by the participant, the board shall transfer or cause to be 24 transferred the appropriate amounts to the designated account. The board shall 25 establish transfer procedures by regulation, but the actual transfer may not be later 26 than 30 days after the effective date of the member's participation in the defined 27 contribution retirement plan unless the major financial markets for securities available 28 for a transfer are seriously disrupted by an unforeseen event that also causes the 29 suspension of trading on any national securities exchange in the country where the 30 securities were issued. In that event, the 30-day period of time may be extended by a 31 resolution of the board of trustees. Transfers are not commissionable or subject to
01 other fees and may be in the form of securities or cash as determined by the board. 02 Securities shall be valued as of the date of receipt in the participant's account. 03 (e) If the board or the administrator receives notification from the United 04 States Department of the Treasury, Internal Revenue Service, that this section or a 05 portion of this section will cause the retirement system under this chapter, or a portion 06 of the retirement system under this chapter, to be disqualified for tax purposes under 07 the Internal Revenue Code, the portion that will cause the disqualification does not 08 apply, and the board and the administrator shall notify the presiding officers of the 09 legislature. 10 (f) The election to participate in the defined contribution retirement plan must 11 be made in writing on forms and in the manner prescribed by the administrator. 12 Before accepting an election to participate in the defined contribution retirement plan, 13 the administrator must provide the employee planning on making an election to 14 participate in the defined contribution retirement plan with information, including 15 calculations to illustrate the effect of moving the employee's retirement plan from the 16 defined benefit retirement plan to the defined contribution retirement plan as well as 17 other information to clearly inform the employee of the potential consequences of the 18 employee's election. An election made under this subsection to participate in the 19 defined contribution retirement plan is irrevocable. Upon making the election, the 20 participant shall be enrolled as a member of the defined contribution retirement plan, 21 the member's participation in the plan shall be governed by the provisions of 22 AS 39.35.700 - 39.35.990, and the member's participation in the defined benefit 23 retirement plan under AS 39.35.115 shall terminate. The participant's enrollment in 24 the defined contribution retirement plan shall be effective the first day of the month 25 after the administrator receives the completed enrollment forms. An election made by 26 an eligible member who is married is not effective unless the election is signed by the 27 individual's spouse. 28 (g) A member may make an election under this section only if the member's 29 employer participates in both the defined benefits retirement plan and the defined 30 contribution retirement plan and consents to transfers under this section. The 31 employer shall notify the administrator if the employer consents to allowing the
01 employer's members to choose to transfer from the defined benefits retirement plan to 02 the defined contribution retirement plan under this section. An employer's notice to 03 allow transfers is irrevocable and applicable to all eligible employees of the employer. 04 (h) In this section, 05 (1) "defined benefit retirement plan" means the retirement plan 06 established in AS 39.35.095 - 39.35.680; 07 (2) "defined contribution retirement plan" means the retirement plan 08 established in AS 39.35.700 - 39.35.990. 09 Sec. 39.35.950. Request by political subdivision to participate and 10 adoption of resolution. A municipality or other political subdivision of the state may 11 request to become an employer in this plan. The request shall be made after adoption 12 of a resolution by the legislative body of the political subdivision and after approval of 13 the resolution by the person required by law to approve the resolution. A certified 14 copy of the resolution shall be filed with the administrator. If the administrator 15 approves the request for participation, the political subdivision is an employer of the 16 plan. 17 Sec. 39.35.955. Request by public organization to participate and 18 adoption of resolution. A public organization may request to become an employer in 19 this plan. The request shall be made after adoption of a resolution by the governing 20 body of the public organization. A certified copy of the resolution shall be filed with 21 the administrator. If the administrator approves the request for participation, the 22 public organization is an employer of the plan. 23 Sec. 39.35.960. Membership in teachers' and public employees' 24 retirement systems. A person who is employed at least half-time in the public 25 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990) during the 26 same period that the person is employed at least half-time in a position in the teachers' 27 defined contribution retirement plan (AS 14.25.310 - 14.25.590) shall receive credited 28 service under each plan for half-time employment. However, the amount of credited 29 service a person receives under the public employees' defined contribution retirement 30 plan during a school year may not exceed the amount necessary, when added to the 31 amount of credited service earned during the school year under the teachers' defined
01 contribution retirement plan, to equal one year of credited service. 02 Sec. 39.35.965. Army and air national guard employees. A regular full- 03 time civilian employee of the Alaska Army National Guard and Air National Guard 04 whose entire salary is paid from allotted federal funds is included in the public 05 employees' defined contribution retirement plan (AS 39.35.700 - 39.35.990) if the 06 federal or state government pays the employer's contributions. If the amount that the 07 federal government may legally contribute to the plan is lower than the required 08 employer's contribution, the state government shall contribute the difference. If the 09 employer's contributions are not paid when due, service credit for the period of 10 delinquency may not be granted until the contributions are paid. 11 Sec. 39.35.970. North Pacific Fishery Management Council employees. 12 An employee of the North Pacific Fishery Management Council appointed under 16 13 U.S.C. 1852(f)(1) (Sec. 302(f)(1) of P.L. 94-265) whose compensation is paid from 14 allotted federal funds is included in the public employees' defined contribution 15 retirement plan (AS 39.35.700 - 39.35.990) if the council pays the employer's 16 contributions. If the employer's contributions are not paid when due, credited service 17 for the period of delinquency may not be granted until the contributions are paid. 18 Sec. 39.35.990. Definitions. In AS 39.35.700 - 39.35.990, unless the context 19 requires otherwise, 20 (1) "administrator" means the commissioner of administration or the 21 commissioner's designee; 22 (2) "alternate payee" means the person for whom an amount has been 23 separated into an account under a qualified domestic relations order; 24 (3) "annuitant" means a member, beneficiary, or alternate payee who is 25 receiving a benefit under this plan; 26 (4) "beneficiary" means the person or persons entitled under the 27 provisions of this plan to receive benefits after the death of a member or alternate 28 payee; 29 (5) "board" has the meaning given in AS 39.35.680; 30 (6) "calendar year" has the meaning given in AS 39.35.680; 31 (7) "compensation"
01 (A) means 02 (i) the total remuneration earned by an employee for 03 personal services rendered, including cost-of-living differentials, as 04 reported on the employee's Federal Income Tax Withholding Statement 05 (Form W-2) from the employer for the calendar year; 06 (ii) the member contribution to the public employees' 07 retirement system under AS 39.35.730, employee deferrals under 08 AS 39.45.010, the wage reduction amount contributed to the Alaska 09 Supplemental Annuity Plan under AS 39.30.150(a), and the wage 10 reduction amount contributed to the Alaska Supplemental Benefit Plan 11 under AS 39.30.150(c), as those statutes may be amended from time to 12 time; 13 (B) does not include retirement benefits, severance pay or other 14 separation bonuses, welfare benefits, per diem, expense allowances, workers' 15 compensation payments, payments for leave not used whether those leave 16 payments are scheduled payments, lump-sum payments, donations, or cash-ins, 17 any remuneration contributed by the employer for or on account of the 18 employee under this plan or under any other qualified or nonqualified 19 employee benefit plan, any remuneration not specifically included above 20 which would have been excluded under 26 U.S.C. 3121(a) (Internal Revenue 21 Code) if the employer had remained in the Federal Social Security System, or 22 any remuneration paid by the employer in excess of the Social Security 23 Taxable Wage Base for the calendar year; 24 (C) notwithstanding (B) of this paragraph, includes any amount 25 that is contributed by the employer under a salary reduction agreement and that 26 is not includible in the gross income of the employee under 26 U.S.C. 125, 27 132(f)(4), 402(e)(3), 402(h)(1)(B) or 403(b) (Internal Revenue Code); the 28 annual compensation limitation for the member, which is so taken into account 29 for those purposes, may not exceed $200,000, as adjusted for the cost of living 30 in accordance with 26 U.S.C. 401(a)(17)(B) (Internal Revenue Code), with the 31 limitation for a fiscal year being the limitation in effect for the calendar year
01 within which the fiscal year begins; 02 (8) "dependent child" has the meaning given in AS 39.35.680; 03 (9) "distribution commencement date" has the meaning given in 04 AS 39.35.840(a); 05 (10) "employer" means 06 (A) the State of Alaska; or 07 (B) a political subdivision or public organization of the state 08 that participates in the plan; 09 (11) "fund" means the assets of the plan; 10 (12) "individual account" means the total maintained by the plan in an 11 investment account within the trust fund, established for each member for the purposes 12 of allocation of the member's contributions, the employer's contributions on behalf of 13 the member, and earnings credited to each of those contributions, investment gains 14 and losses, and expenses; as well as reporting of the member's benefit under the plan; 15 (13) "Internal Revenue Code" means the Internal Revenue Code of 16 1986, as amended; 17 (14) "investment funds" means those separate funds that are provided 18 within and that make up the trust fund and that are established for the purpose of 19 directing investment through the exercise of the sole control of a member, beneficiary, 20 or alternate payee under the terms of the plan and trust agreement; 21 (15) "limitation year" means the year for which contributions are made 22 to a member's individual account as reported to the Internal Revenue Service and as 23 meets the limits described in 26 U.S.C. 415(c); 24 (16) "member" means an employee of an employer or former 25 employee of an employer who retains a right to benefits under the plan; 26 (17) "membership service" means full-time or part-time employment 27 with an employer in the plan; 28 (18) "normal retirement age" means 65 years of age; 29 (19) "participant" means the person who has a vested right to an 30 individual account, such as a member, an alternate payee if the account is subject to a 31 qualified domestic relations order, the member's beneficiary if the member is
01 deceased, or an alternate payee's beneficiary if the alternate payee is deceased; 02 (20) "peace officer" or "fire fighter" has the meaning given in 03 AS 39.35.680; 04 (21) "plan" means the retirement plan established in AS 39.35.700 - 05 39.35.990; 06 (22) "prudent investment standard" means the degree of care, skill, 07 prudence, and diligence under the circumstances then prevailing that a prudent person 08 acting in a like capacity and familiar with such matters would use in the conduct of an 09 enterprise of a like character and with like aims; 10 (23) "qualified domestic relations order" means a divorce or 11 dissolution judgment under AS 25.24, including an order approving a property 12 settlement, that 13 (A) creates or recognizes the existence of an alternate payee's 14 right to, or assigns to an alternate payee the right to, receive all or a portion of 15 an individual account or the benefits payable with respect to a member; 16 (B) sets out the name and last known mailing address, if any, of 17 the member and of each alternate payee covered by the order; 18 (C) sets out the amount or percentage of the member's benefit, 19 or of any survivor's benefit, to be paid to the alternate payee, or sets out the 20 manner in which that amount or percentage is to be determined; 21 (D) sets out the number of payments or period to which the 22 order applies; 23 (E) sets out the retirement plan to which the order applies; 24 (F) does not require any type or form of benefit or any option 25 not otherwise provided by AS 39.35.700 - 39.35.990; 26 (G) does not require an increase of benefits in excess of the 27 amount provided by AS 39.35.700 - 39.35.990; and 28 (H) does not require the payment to an alternate payee of 29 benefits that are required to be paid to another alternate payee under another 30 order previously determined to be a qualified domestic relations order; 31 (24) "retiree" means an eligible person who has elected to receive
01 medical benefits under AS 39.35.880; 02 (25) "surviving spouse" means the spouse of an employee who has 03 been married to the employee for at least one year at the time of the employee's death; 04 (26) "system" has the meaning given in AS 39.35.680; 05 (27) "year of service" means the equivalent of 52 weeks of permanent 06 full-time employment, which may consist of a combination of permanent full-time or 07 permanent part-time membership service; in this paragraph, "permanent full-time" and 08 "permanent part-time" have the meanings given in AS 39.35.680. 09 * Sec. 121. AS 39.45.030(a) is amended to read: 10 (a) The Alaska Retirement Management [STATE PENSION 11 INVESTMENT] Board is authorized, subject to contracts with individual employees, 12 to invest the funds held under a deferred compensation program. The board has the 13 same powers and duties concerning the management and investment in regard to those 14 funds as are provided under AS 37.10.220 [AS 14.25.180]. 15 * Sec. 122. AS 39.45.030(g) is amended to read: 16 (g) In this section, "board" means the Alaska Retirement Management 17 [STATE PENSION INVESTMENT] Board. 18 * Sec. 123. AS 39.45.060 is amended by adding a new paragraph to read: 19 (2) "board" means the trustees of the Alaska Retirement Management 20 Board established under AS 37.10.210. 21 * Sec. 124. AS 39.50.200(a)(9) is amended to read: 22 (9) "public official" means 23 (A) a judicial officer; 24 (B) the governor or the lieutenant governor; 25 (C) a person hired or appointed in a department in the 26 executive branch as 27 (i) the head or deputy head of the department; 28 (ii) the director or deputy director of a division; 29 (iii) a special assistant to the head of the department; 30 (iv) a person serving as the legislative liaison for the 31 department;
01 (D) an assistant to the governor or the lieutenant governor; 02 (E) the chair or a member of a state commission or board 03 [OTHER THAN PHYSICIAN MEMBERS OR ALTERNATES OF THE 04 ALASKA TEACHERS' RETIREMENT BOARD APPOINTED UNDER 05 AS 14.25.035(a)(2) OR OF THE PUBLIC EMPLOYEES' RETIREMENT 06 BOARD APPOINTED UNDER AS 39.35.030(d);] 07 (F) state investment officers and the state comptroller in the 08 Department of Revenue; 09 (G) [REPEALED 10 (H)] the chief procurement officer appointed under 11 AS 36.30.010; 12 (H) [(I)] the executive director of the Alaska Workforce 13 Investment Board; and 14 (I) [(J)] each appointed or elected municipal officer; 15 * Sec. 125. AS 39.50.200(b)(54) is amended to read: 16 (54) Alaska Retirement Management [STATE PENSION 17 INVESTMENT] Board (AS 37.10.210); 18 * Sec. 126. AS 44.25.020(2) is amended to read: 19 (2) collect, account for, have custody of, invest, and manage all state 20 funds and all revenues of the state except revenues incidental to a program of licensing 21 and regulation carried on by another state department, funds managed and invested by 22 the Alaska Retirement Management [STATE PENSION INVESTMENT] Board, 23 and as otherwise provided by law; 24 * Sec. 127. AS 44.25.028(a) is amended to read: 25 (a) The commissioner of revenue may designate employees of the Department 26 of Revenue who are subject to the provisions of AS 39.50 because of their 27 responsibility for participating in the management or investment of the funds for 28 which the Alaska Retirement Management [STATE PENSION INVESTMENT] 29 Board is responsible. 30 * Sec. 128. AS 44.25.028(b) is amended to read: 31 (b) If an officer or employee of the Department of Revenue with responsibility
01 for funds for which the Alaska Retirement Management [STATE PENSION 02 INVESTMENT] Board is responsible acquires, owns, or controls an interest, direct or 03 indirect, in an entity or project in which assets under the control of the board are 04 invested, the officer or employee shall immediately disclose the interest to the board. 05 The disclosure is a matter of public record and shall be included in the minutes of the 06 board meeting next following the disclosure. The commissioner shall adopt 07 regulations to restrict officers and employees of the department from having a 08 substantial interest in an entity or project in which assets under the control of the board 09 are invested. 10 * Sec. 129. AS 44.64.030(a) is amended by adding new paragraphs to read: 11 (36) AS 14.25.006 (teachers' retirement system); 12 (37) AS 39.35.006 (public employees' retirement system). 13 * Sec. 130. AS 14.25.012(a), 14.25.015, 14.25.020, 14.25.022, 14.25.030, 14.25.035, 14 14.25.037, 14.25.170, 14.25.175(e), 14.25.180, 14.25.190, 14.25.220(41); AS 39.30.175(f); 15 AS 39.35.010, 39.35.011, 39.35.020, 39.35.030, 39.35.040, 39.35.042, 39.35.047, 39.35.060, 16 39.35.080, 39.35.090, 39.35.520(c), 39.35.522(c), 39.35.522(e); AS 39.45.025; 17 AS 39.50.200(b)(23), and 39.50.200(b)(29) are repealed. 18 * Sec. 131. AS 14.25.061(c), 14.25.062; and AS 39.35.350 are repealed. 19 * Sec. 132. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITION: INITIAL STAGGERED TERMS OF TRUSTEES OF THE 22 ALASKA RETIREMENT MANAGEMENT BOARD. Notwithstanding AS 37.10.210(c), as 23 repealed and reenacted by sec. 59 of this Act, the terms of the initially appointed trustees of 24 the Alaska Retirement Management Board who are not commissioners shall be set by the 25 governor to achieve staggered terms in the manner provided for nine-member boards by 26 AS 39.05.055(7). 27 * Sec. 133. The uncodified law of the State of Alaska is amended by adding a new section 28 to read: 29 TERMS OF MEMBERS OF THE ALASKA TEACHERS' RETIREMENT BOARD, 30 AND THE PUBLIC EMPLOYEES' RETIREMENT BOARD. The terms of all board 31 members appointed to the Alaska Teachers' Retirement Board, and the Public Employees'
01 Retirement Board expire on the effective date of this section. 02 * Sec. 134. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TERMS OF MEMBERS OF THE ALASKA STATE PENSION INVESTMENT 05 BOARD. The terms of all board members appointed to the Alaska State Pension Investment 06 Board expire on September 30, 2005. 07 * Sec. 135. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 TRANSITION OF DUTIES BETWEEN ALASKA STATE PENSION 10 INVESTMENT BOARD AND THE ALASKA RETIREMENT MANAGEMENT BOARD. 11 (a) After the effective date of this section and until September 30, 2005, the Alaska State 12 Pension Investment Board shall continue to exercise the powers and duties assigned in this 13 Act to the Alaska Retirement Management Board. The Alaska State Pension Investment 14 Board shall take actions to facilitate the transition of duties formerly assigned to the Alaska 15 State Pension Investment Board to the duties assigned in this Act to the Alaska Retirement 16 Management Board. A member of the Alaska Retirement Management Board appointed to 17 serve as a trustee before September 30, 2005, shall be invited to observe and train with the 18 Alaska State Pension Investment Board. 19 (b) The Alaska Retirement Management Board may not assume the duties and 20 responsibilities assigned to the Alaska Retirement Management Board in this Act until 21 October 1, 2005. 22 * Sec. 136. The uncodified law of the State of Alaska is amended by adding a new section 23 to read: 24 TRANSITION. Hearings and other proceedings pending under a law amended or 25 repealed by this Act or in connection with functions transferred by this Act continue in effect 26 and may be continued and completed notwithstanding a transfer or amendment or repeal 27 provided for in this Act. Orders and regulations issued or adopted under authority of a law 28 amended or repealed by this Act remain in effect for the term issued, or until revoked, 29 vacated, or otherwise modified under the provisions of this Act. Contracts, rights, liabilities, 30 and obligations created by or under a law amended or repealed by this Act, and in effect on 31 the effective date of this section, remain in effect notwithstanding this Act's taking effect.
01 Records, equipment, appropriations, funds, and other property of boards or agencies of the 02 state whose functions are transferred under this Act shall be transferred to implement the 03 provisions of this Act. 04 * Sec. 137. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 TRANSITION: REGULATIONS. (a) The Department of Administration and the 07 Department of Revenue may proceed to develop and adopt regulations required to implement 08 this Act. 09 (b) Regulations adopted by the Department of Administration and the Department of 10 Revenue under this Act relate to the internal management of a state agency, and the adoption 11 of the regulations is not subject to AS 44.62 (Administrative Procedure Act). 12 * Sec. 138. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 REPORT TO THE LEGISLATURE BY ALASKA RETIREMENT MANAGEMENT 15 BOARD. It is the intent of the legislature that there will be a moratorium after the effective 16 date of this Act on legislation affecting all public employees' retirement plans until the Alaska 17 Retirement Management Board can present a report to the legislature containing the board's 18 assessment and recommendations as provided in this section. The Alaska Retirement 19 Management Board shall report to the legislature 120 days after all members are appointed to 20 the board, or 15 days after the first day of the first regular legislative session following the 21 effective date of this section, whichever is first. The report must include the board's 22 (1) preliminary assessment of the financial health of all public employees' 23 retirement plans and all teachers' retirement plans; 24 (2) assessment of the actuarial services purchased by the board; 25 (3) recommendations for additional legislative or administrative policy to 26 improve the financial health of the retirement plans; 27 (4) short-term and long-term recommendations for addressing the unfunded 28 liability of the retirement plans; and 29 (5) recommendations for legislative procedures regarding fiscal notes for new 30 legislation affecting the retirement plans. 31 * Sec. 139. The uncodified law of the State of Alaska is amended by adding a new section
01 to read: 02 INSTRUCTION REGARDING ALASKA TEACHERS' RETIREMENT SYSTEM 03 BOARD, ALASKA PUBLIC EMPLOYEES' RETIREMENT SYSTEM BOARD, AND 04 ALASKA STATE PENSION INVESTMENT BOARD. Wherever in the Alaska Statutes and 05 the Alaska Administrative Code the terms "Alaska Teachers' Retirement System Board," 06 "Alaska Public Employees' Retirement System Board," or "Alaska State Pension Investment 07 Board" are used, they shall be read as "Alaska Retirement Management Board" when to do so 08 would be consistent with the changes made by this Act. 09 * Sec. 140. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 SPECIFIC INSTRUCTIONS TO REVISOR OF STATUTES CONCERNING 12 SPECIFIC REFERENCES. (a) The revisor of statutes shall change references to "this 13 chapter" to "AS 14.25.009 - 14.25.220" in the following statutes: AS 14.25.040(b), 14 14.25.040(c), 14.25.045(a), 14.25.047, 14.25.061(a), 14.25.062, 14.25.063(a), 14.25.075(c), 15 14.25.105, 14.25.107, 14.25.110(k), 14.25.142, 14.25.150(b), 14.25.153, 14.25.160(h), 16 14.25.165(f), 14.25.166, 14.25.177, 14.25.195, 14.25.200(b), 14.25.205, and 14.25.210, and 17 in 14.25.220 in each place that the phrase appears. 18 (b) The revisor of statutes shall change the reference to "board" to "administrator" in 19 the following statutes: AS 14.25.075 and 14.25.130(f). 20 (c) The revisor of statutes shall change the reference to "system" to "plan" in the 21 following statutes: AS 14.25.040(b), 14.25.040(c), 14.25.045, 14.25.047, 14.25.055, 22 14.25.060, 14.25.061(a), 14.25.062, 14.25.063(a), 14.25.065, 14.25.070, 14.25.075(c), 23 14.25.075(d), 14.25.075(g), 14.25.075(h), 14.25.075(i), 14.25.100(a), 14.25.105(c), 24 14.25.107, 14.25.110, 14.25.125(c), 14.25.143, 14.25.163, 14.25.165(i), 14.25.167(g), 25 14.25.168, 14.25.169, 14.25.173(a), 14.25.173(d), 14.25.181, 14.25.200, 14.25.210, 26 14.25.220(1), 14.25.220(4), 14.25.220(7), 14.25.220(14), 14.25.220(20), 14.25.220(22), 27 14.25.220(23), 14.25.220(31), 14.25.220(34), 14.25.220(36), 14.25.220(37), 14.25.220(42); 28 AS 39.35.120, 39.35.125, 39.35.160, 39.35.165(a), 39.35.165(c), 39.35.165(d), 39.35.165(e), 29 39.35.165(g), 39.35.165(h), 39.35.165(i), 39.35.170, 39.35.180, 39.35.195(b), 39.35.195(c), 30 39.35.250, 39.35.280, 39.35.300(c), 39.35.310(a), 39.35.310(c), 39.35.340(a), 39.35.342(a), 31 39.35.342(d), 39.35.345(a), 39.35.345(d), 39.35.360(a), 39.35.360(g), 39.35.360(h),
01 39.35.360(k), 39.35.370(f), 39.35.370(h), 39.35.370(i), 39.35.370(j), 39.35.370(k), 02 39.35.371(i), 39.35.381(b), 39.35.381(g), 39.35.385(c), 39.35.400(e), 39.35.450(g), 03 39.35.475(a), 39.35.475(b), 39.35.475(d), 39.35.500(a), 39.35.505, 39.35.520(a), 04 39.35.520(d), 39.35.522(d), 39.35.527(a), 39.35.527(b), 39.35.530, 39.35.535(a), 05 39.35.535(d), 39.35.550, 39.35.560, 39.35.570, 39.35.580, 39.35.590, 39.35.600, 39.35.610, 06 39.35.620(a), 39.35.620(h), 39.35.650, 39.35.670, 39.35.675(a), 39.35.680(1), 39.35.680(5), 07 39.35.680(9), 39.35.680(12), 39.35.680(15), 39.35.680(16), 39.35.680(17), 39.35.680(20), 08 39.35.680(21)(A), 39.35.680(29), 39.35.680(32), 39.35.680(33), and 39.35.680(35). 09 (d) The revisor of statutes shall change the reference to "board" to "commissioner" in 10 the following statutes: AS 39.35.290, 39.35.522(a), 39.35.522(b), and 39.35.522(d). 11 (e) The revisor of statutes shall change references to "this chapter" to "AS 39.35.095 - 12 39.35.680" in the following statutes: AS 39.35.165, 39.35.200, 39.35.250, 39.35.300, 13 39.35.340, 39.35.350, 39.35.360, 39.35.370, 39.35.371, 39.35.375, 39.35.381, 39.35.480, 14 39.35.490, 39.35.495, 39.35.505, 39.35.530, 39.35.546, 39.35.547, 39.35.615(c), 15 39.35.620(e), 39.35.660, 39.35.675(b), 39.35.677, and 39.35.680. 16 (f) The revisor of statutes shall renumber AS 39.35.690 to follow AS 39.35.990. 17 * Sec. 141. The uncodified law of the State of Alaska is amended by adding a new section 18 to read: 19 IMPLEMENTATION OF SECTIONS 139 AND 140 OF THIS ACT. Under 20 AS 01.05.031, the revisor of statutes shall implement secs. 139 and 140 of this Act in the 21 Alaska Statutes, and, under AS 44.62.125(b)(6), the regulations attorney shall implement secs. 22 139 and 140 of this Act in the administrative code. 23 * Sec. 142. Sections 11, 12, 14, 15, 20, 89 - 94, 107, 114, and 131 of this Act take effect 24 June 30, 2010. 25 * Sec. 143. Section 141 of this Act takes effect immediately under AS 01.10.070(c). 26 * Sec. 144. Except as provided in secs. 142 and 143 of this Act, this Act takes effect July 1, 27 2005.