CSHB 47(FIN): "An Act requiring certain municipalities with a population that decreased by more than 25 percent between 2000 and 2010 that participate in the defined benefit retirement plan of the Public Employees' Retirement System of Alaska to contribute to the system an amount calculated by applying a rate of 22 percent of the total of all base salaries paid by the municipality to employees of the municipality who are active members of the system during a payroll period; authorizing the administrator of the defined benefit retirement plan of the Public Employees' Retirement System of Alaska to reduce the rate of interest payable by certain municipalities that are delinquent in transmitting employee and employer contributions to the retirement plan; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 47(FIN) 01 "An Act requiring certain municipalities with a population that decreased by more than 02 25 percent between 2000 and 2010 that participate in the defined benefit retirement plan 03 of the Public Employees' Retirement System of Alaska to contribute to the system an 04 amount calculated by applying a rate of 22 percent of the total of all base salaries paid 05 by the municipality to employees of the municipality who are active members of the 06 system during a payroll period; authorizing the administrator of the defined benefit 07 retirement plan of the Public Employees' Retirement System of Alaska to reduce the 08 rate of interest payable by certain municipalities that are delinquent in transmitting 09 employee and employer contributions to the retirement plan; and providing for an 10 effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 39.35.004 is amended by adding a new subsection to read:
01 (d) The administrator is authorized to determine the rate of interest assessed 02 under AS 39.35.610(c). 03 * Sec. 2. AS 39.35.255(a) is amended to read: 04 (a) Each employer shall contribute to the system every payroll period an 05 amount calculated by applying a rate of 22 percent of the greater of the total of all base 06 salaries 07 (1) paid by the employer to employees who are active members of the 08 system, including any adjustments to contributions required by AS 39.35.520; or 09 (2) paid by the employer to employees who were active members of 10 the system during the corresponding payroll period for the fiscal year ending 11 (A) June 30, 2008; or 12 (B) June 30, 2012, if that total is less than the total under 13 (A) of this paragraph, and the employer is a municipality in which the 14 population decreased by more than 25 percent between 2000 and 2010, 15 according to the decennial census conducted by the United States Bureau 16 of the Census. 17 * Sec. 3. AS 39.35.610(a) is amended to read: 18 (a) The contributions of an employer and the contributions of its employees 19 shall be transmitted to the administrator as soon as practicable after the close of the 20 payroll period for which the contributions are made. Subject to (c) of this section, if 21 [IF] an employer is delinquent in transferring the contributions for more than 15 days, 22 interest shall be assessed on the outstanding contributions at one and one-half times 23 the most recent actuarially determined rate of earnings for the retirement plan from the 24 date that the contributions were originally due. 25 * Sec. 4. AS 39.35.610 is amended by adding a new subsection to read: 26 (c) If an employer delinquent in transferring a contribution is a municipality in 27 which the population decreased by more than 25 percent between 2000 and 2010, 28 according to the decennial census conducted by the United States Bureau of the 29 Census, the administrator may assess interest on the outstanding contribution at a rate 30 less than the rate required in (a) of this section. 31 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).