00                            HOUSE BILL NO. 129                                                                          
01 "An Act establishing a past service cost offset account for required past service cost                                  
02 offset payments owed by employers other than the state to the public employees' pension                                 
03 fund; and providing for an effective date."                                                                             
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 39.35 is amended by adding a new section to read:                                                  
06            Sec. 39.35.287. Past service cost offset account. (a) The public employees'                                
07       pension fund past service cost offset account is established in the state treasury. The                           
08       Department of Administration shall administer the account. The legislature may                                    
09       appropriate money to the account.                                                                                 
10            (b)  The administrator shall pay from the account into the pension fund, on                                  
11       behalf of each employer, other than the state, under the defined contribution retirement                          
12       plan established in AS 39.35.700 - 39.35.990, the employer past service cost offset                               
13       contributions determined under (c) of this section for that year, not to exceed the                               
14       blended employer past service cost rate. The amount shall be determined by actuarial                              

01       method.                                                                                                           
02            (c)  The administration shall determine contributions for each employer under                                
03       (b) of this section by applying the employer's past service cost rate, up to an amount                            
04       equal to the blended employer past service cost rate, as calculated on the employer's                             
05       entire wage base, to the average salary of all employees of the employer multiplied by                            
06       the number of employees of that employer who are members of the public employees'                                 
07       defined contribution retirement plan in AS 39.35.700 - 39.35.990.                                                 
08            (d)  Unless the context requires otherwise, in this section,                                                 
09                 (1)  "account" means the public employees' pension fund past service                                  
10       cost offset account;                                                                                              
11                 (2)  "blended employer past service cost rate" means the average past                                   
12       service cost rate of all employers, other than the state, in the public employees' defined                        
13       contribution plan established in AS 39.35.700 - 39.35.990 and the defined benefit                                 
14       retirement plan established in AS 39.35.095 - 39.35.680;                                                          
15                 (3)  "past service cost" means the amount of an annual payment made                                     
16       over a stipulated number of years to amortize the unfunded liability of the pension                               
17       fund under AS 39.35.095 - 39.35.680;                                                                              
18                 (4)  "past service cost rate" means the annual payment as a percentage                                  
19       of total wage base of employee salary required to pay the past service cost as an                                 
20       amortized contribution in percentage over a stipulated number of years;                                           
21                 (5)  "unfunded liability" means the excess of the accrued liability over                                
22       the assets of the pension fund under AS 39.35.095 - 39.35.680.                                                    
23    * Sec. 2. This Act takes effect July 1, 2007.