00                 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 38                                                               
01 "An Act relating to supplemental employee benefits; and providing for an effective                                      
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 39.30.170(a) is amended to read:                                                                   
05 (a)  An employer in the teachers' retirement system (AS 14.25) or the                                               
06 Public Employees' Retirement System of Alaska (AS 39.35) that does not                                              
07 participate in the federal social security system may become a participating                                        
08 employer in the employee benefits program under AS 39.30.150 - 39.30.180;                                           
09 however, an employee who is a member of the teachers' retirement system may                                         
10       choose not to participate in the employee benefits program under AS 39.30.150 -                               
11       39.30.180 [, IF                                                                                               
12                 (1)  THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN                                                        
13       THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND                                                       
14                 (2)  THE EMPLOYER                                                                                       

01                      (A)  IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS                                                         
02            NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL                                                              
03            SOCIAL SECURITY SYSTEM; OR                                                                                   
04                      (B)  WITHDRAWS FROM MEMBERSHIP IN THE                                                              
05            FEDERAL SOCIAL SECURITY SYSTEM].                                                                             
06    * Sec. 2. AS 39.30.180(3) is amended to read:                                                                      
07                 (3)  "participating employer" means                                                                     
08                      (A)  the State of Alaska; [AND]                                                                    
09                      (B)  an employer who                                                                           
10                           (i)  [WHO] is an employer as defined in AS 14.25.220,                                     
11                 14.25.590, AS 39.35.680, or 39.35.990; and                                                  
12                           (ii)  does not participate [WHO HAS NEVER                                                 
13                 PARTICIPATED IN OR HAS WITHDRAWN FROM                                                                   
14                 PARTICIPATION] in the federal social security system [; AND                                             
15                           (iii)  WHOSE PARTICIPATION IN THE                                                             
16                 SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN                                                          
17                 APPROVED BY THE COMMISSIONER].                                                                          
18    * Sec. 3. This Act takes effect July 1, 2025.