| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | - | ||
| 2 | + | SB0088B -1- CSSB 88(L&C) | |
| 3 | 3 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 4 | 4 | ||
| 5 | - | 33-LS0505\ | |
| 5 | + | 33-LS0505\D | |
| 6 | 6 | ||
| 7 | 7 | ||
| 8 | 8 | ||
| 9 | 9 | ||
| 10 | - | CS FOR SENATE BILL NO. 88( | |
| 10 | + | CS FOR SENATE BILL NO. 88(L&C) | |
| 11 | 11 | ||
| 12 | 12 | IN THE LEGISLATURE OF THE STATE OF ALASKA | |
| 13 | 13 | ||
| 14 | - | THIRTY-THIRD LEGISLATURE - | |
| 14 | + | THIRTY-THIRD LEGISLATURE - FIRST SESSION | |
| 15 | 15 | ||
| 16 | - | BY THE SENATE | |
| 16 | + | BY THE SENATE LABOR AND COMMERCE COMMITTEE | |
| 17 | 17 | ||
| 18 | - | Offered: 1/ | |
| 19 | - | Referred: | |
| 18 | + | Offered: 5/1/23 | |
| 19 | + | Referred: Finance | |
| 20 | 20 | ||
| 21 | 21 | Sponsor(s): SENATORS GIESSEL, Bishop, Stevens, Kiehl, Kawasaki, Tobin, Wielechowski, Gray-Jackson, | |
| 22 | - | Dunbar, Claman | |
| 22 | + | Dunbar, Claman | |
| 23 | 23 | A BILL | |
| 24 | 24 | ||
| 25 | 25 | FOR AN ACT ENTITLED | |
| 26 | 26 | ||
| 27 | 27 | "An Act relating to the Public Employees' Retirement System of Alaska and the 1 | |
| 28 | 28 | teachers' retirement system; providing certain employees an opportunity to choose 2 | |
| 29 | 29 | between the defined benefit and defined contribution plans of the Public Employees' 3 | |
| 30 | 30 | Retirement System of Alaska and the teachers' retirement system; and providing for an 4 | |
| 31 | 31 | effective date." 5 | |
| 32 | 32 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6 | |
| 33 | 33 | * Section 1. AS 14.25.009 is repealed and reenacted to read: 7 | |
| 34 | 34 | Sec. 14.25.009. Applicability of AS 14.25.009 - 14.25.220. The provisions of 8 | |
| 35 | 35 | AS 14.25.009 - 14.25.220 apply to teachers who are eligible to be members of the 9 | |
| 36 | 36 | defined benefit retirement plan under AS 14.25.009 - 14.25.220 and are not members 10 | |
| 37 | 37 | of the defined contribution retirement plan under AS 14.25.310 - 14.25.590. 11 | |
| 38 | 38 | * Sec. 2. AS 14.25.040(a) is amended to read: 12 | |
| 39 | 39 | (a) A teacher or member contracting for service with a participating | |
| 40 | - | 13 33-LS0505\ | |
| 41 | - | CSSB 88( | |
| 40 | + | 13 33-LS0505\D | |
| 41 | + | CSSB 88(L&C) -2- SB0088B | |
| 42 | 42 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 43 | 43 | ||
| 44 | 44 | employer is subject to AS 14.25.009 - 14.25.220 unless the [UNLESS A] teacher or 1 | |
| 45 | 45 | member 2 | |
| 46 | 46 | (1) participates in a university retirement program under AS 14.40.661 3 | |
| 47 | 47 | - 14.40.799; 4 | |
| 48 | 48 | (2) became a member after June 30, 2006, and before July 1, 2024, 5 | |
| 49 | 49 | is eligible to participate in the defined contribution retirement plan under 6 | |
| 50 | 50 | AS 14.25.310 - 14.25.590, and does not elect to participate in the defined benefit 7 | |
| 51 | 51 | retirement plan under AS 14.25.009 - 14.25.220; or 8 | |
| 52 | 52 | (3) has elected under former AS 14.25.540 to participate in the plan 9 | |
| 53 | 53 | established in AS 14.25.310 - 14.25.590 and does not elect to participate in the 10 | |
| 54 | 54 | defined benefit retirement plan under AS 14.25.009 - 14.25.220 [, A TEACHER 11 | |
| 55 | 55 | OR MEMBER CONTRACTING FOR SERVICE WITH A PARTICIPATING 12 | |
| 56 | 56 | EMPLOYER IS SUBJECT TO AS 14.25.009 - 14.25.220]. 13 | |
| 57 | 57 | * Sec. 3. AS 14.25.040 is amended by adding new subsections to read: 14 | |
| 58 | 58 | (f) An active member of this plan who is also employed in a position in the 15 | |
| 59 | 59 | public employees' retirement plan under AS 39.35.095 - 39.35.680 may elect to 16 | |
| 60 | 60 | participate solely in this plan if 17 | |
| 61 | 61 | (1) the member directs the public employees' retirement plan employer 18 | |
| 62 | 62 | in writing to 19 | |
| 63 | 63 | (A) pay into this plan the employer contributions required for a 20 | |
| 64 | 64 | member under AS 14.25.009 - 14.25.220; and 21 | |
| 65 | 65 | (B) deduct from the member's salary and pay into this plan 22 | |
| 66 | 66 | (i) the employee contributions required for a member 23 | |
| 67 | 67 | under AS 14.25.009 - 14.25.220; and 24 | |
| 68 | 68 | (ii) an amount equal to the difference between the total 25 | |
| 69 | 69 | employer and state contributions required for a member under 26 | |
| 70 | 70 | AS 14.25.009 - 14.25.220 and the employer contributions that would be 27 | |
| 71 | 71 | required under AS 39.35.095 - 39.35.680 if the member participated in 28 | |
| 72 | 72 | that plan; and 29 | |
| 73 | 73 | (2) the member provides written notice to the administrator. 30 | |
| 74 | - | (g) An active member of this plan who elects to participate solely in this plan 31 33-LS0505\ | |
| 75 | - | ||
| 74 | + | (g) An active member of this plan who elects to participate solely in this plan 31 33-LS0505\D | |
| 75 | + | SB0088B -3- CSSB 88(L&C) | |
| 76 | 76 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 77 | 77 | ||
| 78 | 78 | under (f) of this section may not, while participating solely in this plan, receive 1 | |
| 79 | 79 | credited service for benefit eligibility for service performed in a position in the public 2 | |
| 80 | 80 | employees' retirement plan. 3 | |
| 81 | - | (h) A teacher who became a member | |
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| 86 | - | ( | |
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| 97 | - | AS 14.25 | |
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| 109 | - | CSSB 88( | |
| 81 | + | (h) A teacher who became a member after June 30, 2006, and before July 1, 4 | |
| 82 | + | 2024, is subject to AS 14.25.009 - 14.25.220 and is not eligible to participate in the 5 | |
| 83 | + | defined contribution retirement plan established in AS 14.25.310 - 14.25.590 if the 6 | |
| 84 | + | teacher 7 | |
| 85 | + | (1) is not employed by an employer on July 1, 2024; 8 | |
| 86 | + | (2) is reemployed by an employer after July 1, 2024; and 9 | |
| 87 | + | (3) has, before the date of reemployment, received 10 | |
| 88 | + | (A) a distribution, other than a rollover distribution, of the 11 | |
| 89 | + | entire balance in the teacher's individual account in the defined contribution 12 | |
| 90 | + | retirement plan; or 13 | |
| 91 | + | (B) a rollover distribution of the entire balance in the teacher's 14 | |
| 92 | + | individual account in the defined contribution retirement plan under 15 | |
| 93 | + | AS 14.25.310 - 14.25.590 and has not within 120 days of reemployment had 16 | |
| 94 | + | all or part of a direct rollover distribution from an eligible retirement plan 17 | |
| 95 | + | owned by the teacher paid directly into the teacher's individual account under 18 | |
| 96 | + | AS 14.25.310 - 14.25.590. 19 | |
| 97 | + | * Sec. 4. AS 14.25 is amended by adding a new section to read: 20 | |
| 98 | + | Sec. 14.25.044. Election of defined benefit retirement plan by reemployed 21 | |
| 99 | + | teachers. (a) A teacher may make a one-time election to participate in the defined 22 | |
| 100 | + | benefit retirement plan under AS 14.25.009 - 14.25.220 if the teacher 23 | |
| 101 | + | (1) was first hired after June 30, 2006, and before July 1, 2024; 24 | |
| 102 | + | (2) is not employed by an employer on July 1, 2024; 25 | |
| 103 | + | (3) is reemployed by an employer after July 1, 2024; and 26 | |
| 104 | + | (4) before the date of reemployment, 27 | |
| 105 | + | (A) has not received a distribution of the entire balance in the 28 | |
| 106 | + | teacher's individual account under the defined contribution retirement plan 29 | |
| 107 | + | under AS 14.25.310 - 14.25.590; or 30 | |
| 108 | + | (B) has received a rollover distribution of the entire balance in 31 33-LS0505\D | |
| 109 | + | CSSB 88(L&C) -4- SB0088B | |
| 110 | 110 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 111 | 111 | ||
| 112 | - | under AS 14.25.310 - 14.25.590 | |
| 113 | - | ||
| 114 | - | the teacher | |
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| 138 | - | ||
| 139 | - | - 14.25.220, | |
| 140 | - | ||
| 141 | - | ||
| 142 | - | ||
| 143 | - | ||
| 112 | + | the teacher's individual account in the plan under AS 14.25.310 - 14.25.590 1 | |
| 113 | + | and has within 120 days of reemployment had all or part of a direct rollover 2 | |
| 114 | + | distribution from an eligible retirement plan owned by the teacher paid directly 3 | |
| 115 | + | into the teacher's individual account under AS 14.25.310 - 14.25.590. 4 | |
| 116 | + | (b) An election under (a) of this section may be made not more than 120 days 5 | |
| 117 | + | after the date of reemployment. A reemployed teacher electing to participate under (a) 6 | |
| 118 | + | of this section shall use the balance of the member's individual account in the plan 7 | |
| 119 | + | under AS 14.25.310 - 14.25.590, including any rollover contributions, to purchase 8 | |
| 120 | + | credited service in the plan under AS 14.25.009 - 14.25.220. An election made under 9 | |
| 121 | + | (a) of this section must be made in writing in the manner prescribed by the 10 | |
| 122 | + | administrator. An election made by a teacher who is married is not effective unless the 11 | |
| 123 | + | election is signed by the teacher's spouse. The administrator shall provide a teacher 12 | |
| 124 | + | who is eligible to make an election under (a) of this section with information about the 13 | |
| 125 | + | potential consequences of the teacher's election, including calculations to illustrate the 14 | |
| 126 | + | effect of moving the teacher's retirement plan from a defined contribution retirement 15 | |
| 127 | + | plan to a defined benefit retirement plan. 16 | |
| 128 | + | (c) An election made under (a) of this section to participate in the plan under 17 | |
| 129 | + | AS 14.25.009 - 14.25.220 is irrevocable. On the effective date of the election, the 18 | |
| 130 | + | teacher shall be enrolled as a member of the plan, and the teacher's participation in the 19 | |
| 131 | + | plan shall be governed by the applicable provisions of the plan. The teacher's 20 | |
| 132 | + | enrollment in the plan is retroactive to the date of hire. 21 | |
| 133 | + | (d) When a teacher makes an election under this section, the administrator 22 | |
| 134 | + | shall cause the total amount of the teacher's member and employer contributions to the 23 | |
| 135 | + | plan under AS 14.25.310 - 14.25.590, with investment earnings and losses through the 24 | |
| 136 | + | day of the teacher's election to participate as a member in the plan under AS 14.25.009 25 | |
| 137 | + | - 14.25.220, to be actuarially calculated and, subject to (f) of this section, transferred 26 | |
| 138 | + | to the retirement fund in the plan under AS 14.25.009 - 14.25.220. On the effective 27 | |
| 139 | + | date of the teacher's participation in the plan under AS 14.25.009 - 14.25.220, the 28 | |
| 140 | + | teacher shall be credited with service in the plan. The board shall determine the cost of 29 | |
| 141 | + | the teacher's actual service time based on the teacher's accrued actuarial liability of 30 | |
| 142 | + | pension benefits in the plan, and credit the teacher with service time equal to the value 31 33-LS0505\D | |
| 143 | + | SB0088B -5- CSSB 88(L&C) | |
| 144 | 144 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 145 | 145 | ||
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| 152 | - | securities | |
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| 159 | - | ||
| 160 | - | transfer 15 | |
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| 172 | - | under AS | |
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| 174 | - | ||
| 175 | - | pay for service credit | |
| 176 | - | ||
| 177 | - | CSSB 88( | |
| 146 | + | actuarially calculated and transferred to the retirement fund in the plan under 1 | |
| 147 | + | AS 14.25.009 - 14.25.220. The board shall adopt regulations establishing transfer 2 | |
| 148 | + | procedures. The transfer may not occur later than 60 days after the date the 3 | |
| 149 | + | administrator receives the teacher's election, unless the major financial markets for 4 | |
| 150 | + | securities available for a transfer are seriously disrupted by an unforeseen event that 5 | |
| 151 | + | also causes the suspension of trading on any national securities exchange in the 6 | |
| 152 | + | country where the securities were issued. In that event, the 60-day period may be 7 | |
| 153 | + | extended by a resolution of the board. A transfer is not commissionable or subject to 8 | |
| 154 | + | other fees and may be in the form of cash or a security as determined by the board. A 9 | |
| 155 | + | security shall be valued on the date of receipt in the teacher's account. 10 | |
| 156 | + | (e) When making a transfer under (d) of this section, or for a reemployed 11 | |
| 157 | + | teacher entering the plan under AS 14.25.040(h), the administrator shall transfer an 12 | |
| 158 | + | amount equal to the decrease in the accrued actuarial liability of the death and 13 | |
| 159 | + | disability trust in the plan established under 14.25.310 - 14.25.590 resulting from the 14 | |
| 160 | + | transfer as of the date of transfer, based on the most recent actuarial valuation of the 15 | |
| 161 | + | death and disability trust, from the death and disability trust in the plan established 16 | |
| 162 | + | under 14.25.310 - 14.25.590 to the retirement fund in the plan under AS 14.25.009 - 17 | |
| 163 | + | 14.25.220. 18 | |
| 164 | + | (f) If the value actuarially calculated under (d) of this section is insufficient to 19 | |
| 165 | + | pay for service credit equal to the teacher's actual service time, the administrator shall 20 | |
| 166 | + | allow the teacher the option of purchasing service credit in an amount up to the 21 | |
| 167 | + | amount needed to eliminate the insufficiency; however, if that value exceeds the 22 | |
| 168 | + | amount needed to pay for service credit equal to the teacher's actual service, the 23 | |
| 169 | + | administrator shall cause the excess to remain in the teacher's individual account in the 24 | |
| 170 | + | plan under AS 14.25.310 - 14.25.590. The excess may not be used to purchase 25 | |
| 171 | + | additional service credit in the plan under AS 14.25.009 - 14.25.220. When a 26 | |
| 172 | + | reemployed teacher enters the plan under AS 14.25.040(h), the administrator shall 27 | |
| 173 | + | allow the teacher to pay for a period of service credit up to the teacher's actual service. 28 | |
| 174 | + | When a teacher elects to purchase service credit under this section and does not 29 | |
| 175 | + | immediately pay for the service credit purchased, an indebtedness is established. 30 | |
| 176 | + | Interest as prescribed by regulation accrues on a teacher's indebtedness. Indebtedness 31 33-LS0505\D | |
| 177 | + | CSSB 88(L&C) -6- SB0088B | |
| 178 | 178 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 179 | 179 | ||
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| 187 | - | AS 14.25. | |
| 188 | - | ||
| 189 | - | under AS 14.25. | |
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| 180 | + | that exists at the time the teacher is appointed to retirement necessitates an actuarial 1 | |
| 181 | + | adjustment to the benefits payable due to service in the defined contribution retirement 2 | |
| 182 | + | plan. 3 | |
| 183 | + | (g) Actuarial assumptions about the plan under AS 14.25.009 - 14.25.220 4 | |
| 184 | + | must be based on the most recent actuarial valuation of the plan, except that the 5 | |
| 185 | + | retirement rates are computed at 25 percent of the retirement rates used in the most 6 | |
| 186 | + | recent actuarial valuation of the retirement fund plus 75 percent of the retirement rates 7 | |
| 187 | + | used in the most recent actuarial valuation of the plan under AS 14.25.310 - 14.25.590. 8 | |
| 188 | + | (h) The provisions of this section are subject to the requirements of the 9 | |
| 189 | + | Internal Revenue Code and the limitations under AS 14.25.010, 14.25.181, 10 | |
| 190 | + | 14.25.320(c) and (d), and 14.25.490. 11 | |
| 191 | + | * Sec. 5. AS 14.25.048(b) is amended to read: 12 | |
| 192 | + | (b) An employee or former employee who first became a member of the 13 | |
| 193 | + | plan before July 1, 2006, may receive credit for retroactive membership service for 14 | |
| 194 | + | employment before June 5, 1988, if the employee or former employee met the 15 | |
| 195 | + | requirements listed in (a) of this section at the time of the employment. To receive 16 | |
| 196 | + | credit for the retroactive membership service, the employee or former employee shall 17 | |
| 197 | + | claim the service and pay the retroactive contributions required under former 18 | |
| 198 | + | AS 14.25.061. However, an employee or former employee may not receive retroactive 19 | |
| 199 | + | credit under this subsection if the employee received credited service under AS 39.35 20 | |
| 200 | + | for the employment. 21 | |
| 201 | + | * Sec. 6. AS 14.25.048(c) is amended to read: 22 | |
| 202 | + | (c) An employee or former employee who first became a member of the 23 | |
| 203 | + | plan before July 1, 2006, and who received credit under AS 39.35 for service that 24 | |
| 204 | + | qualifies under (a) of this section may elect to transfer those periods of employment to 25 | |
| 205 | + | the plan. To receive credit for retroactive membership service under this subsection, 26 | |
| 206 | + | the employee or former employee shall claim the service and pay the retroactive 27 | |
| 207 | + | contributions required under former AS 14.25.061. 28 | |
| 208 | + | * Sec. 7. AS 14.25.050(a) is amended to read: 29 | |
| 209 | + | (a) Except as provided in (c) and (e) of this section, beginning January 1, 30 | |
| 210 | + | 1991, each member shall contribute to the plan an amount equal to 8.65 percent of the 31 33-LS0505\D | |
| 211 | + | SB0088B -7- CSSB 88(L&C) | |
| 212 | 212 | New Text Underlined [DELETED TEXT BRACKETED] | |
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| 222 | - | the | |
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| 227 | - | member's base salary | |
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| 235 | - | THE | |
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| 245 | - | CSSB 88( | |
| 214 | + | member's base salary accrued from July 1 to the following June 30. [THE 1 | |
| 215 | + | EMPLOYER SHALL DEDUCT THE CONTRIBUTION FROM THE MEMBER'S 2 | |
| 216 | + | SALARY AT THE END OF EACH PAYROLL PERIOD, AND THE 3 | |
| 217 | + | CONTRIBUTION SHALL BE CREDITED BY THE PLAN TO THE MEMBER 4 | |
| 218 | + | CONTRIBUTION ACCOUNT. THE CONTRIBUTIONS SHALL BE DEDUCTED 5 | |
| 219 | + | FROM EMPLOYEE COMPENSATION BEFORE THE COMPUTATION OF 6 | |
| 220 | + | APPLICABLE FEDERAL TAXES AND SHALL BE TREATED AS EMPLOYER 7 | |
| 221 | + | CONTRIBUTIONS UNDER 26 U.S.C. 414(h)(2). A MEMBER MAY NOT HAVE 8 | |
| 222 | + | THE OPTION OF MAKING THE PAYROLL DEDUCTION DIRECTLY IN CASH 9 | |
| 223 | + | INSTEAD OF HAVING THE CONTRIBUTION PICKED UP BY THE 10 | |
| 224 | + | EMPLOYER.] 11 | |
| 225 | + | * Sec. 8. AS 14.25.050 is amended by adding new subsections to read: 12 | |
| 226 | + | (e) A member who first participates in the plan after June 30, 2006, shall 13 | |
| 227 | + | contribute to the plan an amount equal to eight percent of the member's base salary 14 | |
| 228 | + | accrued from July 1 to the following June 30. The board may, from time to time, 15 | |
| 229 | + | adjust the contribution under this subsection to an amount that, 16 | |
| 230 | + | (1) if decreased, is not less than eight percent of the member's base 17 | |
| 231 | + | salary; and 18 | |
| 232 | + | (2) if increased, is not more than 12 percent of the member's base 19 | |
| 233 | + | salary. 20 | |
| 234 | + | (f) The employer shall deduct a contribution under this section from the 21 | |
| 235 | + | member's salary at the end of each payroll period, and the contribution shall be 22 | |
| 236 | + | credited by the plan to the member contribution account. The contributions shall be 23 | |
| 237 | + | deducted from member compensation before the computation of applicable federal 24 | |
| 238 | + | taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A 25 | |
| 239 | + | member may not have the option of making the payroll deduction directly in cash 26 | |
| 240 | + | instead of having the contribution picked up by the employer. 27 | |
| 241 | + | (g) The board may increase the member contribution rate under (e) of this 28 | |
| 242 | + | section if the board determines that the portion of the liability of the plan that is 29 | |
| 243 | + | attributable to all members who first became members of the plan after June 30, 2006, 30 | |
| 244 | + | is funded below 90 percent. Before increasing the member contribution rate under (e) 31 33-LS0505\D | |
| 245 | + | CSSB 88(L&C) -8- SB0088B | |
| 246 | 246 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 247 | 247 | ||
| 248 | - | (2) if increased, is not more than 12 percent of the member's base 1 | |
| 249 | - | salary. 2 | |
| 250 | - | (f) The employer shall deduct a contribution under this section from the 3 | |
| 251 | - | member's salary at the end of each payroll period, and the contribution shall be 4 | |
| 252 | - | credited by the plan to the member contribution account. The contributions shall be 5 | |
| 253 | - | deducted from member compensation before the computation of applicable federal 6 | |
| 254 | - | taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A 7 | |
| 255 | - | member may not have the option of making the payroll deduction directly in cash 8 | |
| 256 | - | instead of having the contribution picked up by the employer. 9 | |
| 257 | - | (g) The board shall increase the member contribution under (e) of this section 10 | |
| 258 | - | if the board determines that, unless the contribution is increased, the portion of the 11 | |
| 259 | - | liability of the plan that is attributable to all members who first became members of 12 | |
| 260 | - | the plan after June 30, 2006, will be funded below 90 percent. The board may not 13 | |
| 261 | - | increase the member contribution unless the board increases the employer contribution 14 | |
| 262 | - | under AS 14.25.070(a)(2) by an equal amount. The board may decrease the 15 | |
| 263 | - | contribution under (e) of this section if the board determines that, after the 16 | |
| 264 | - | contribution is decreased, the portion of the liability of the plan that is attributable to 17 | |
| 265 | - | all members who first became members of the plan after June 30, 2006, will be funded 18 | |
| 266 | - | above 90 percent. The board may not decrease the member contribution unless the 19 | |
| 267 | - | board decreases the employer contribution under AS 14.25.070(a)(2) by an equal 20 | |
| 268 | - | amount. 21 | |
| 269 | - | * Sec. 9. AS 14.25.065(b) is amended to read: 22 | |
| 270 | - | (b) The contributions of employers under AS 14.25.070 must be transmitted to 23 | |
| 271 | - | the plan for deposit in the retirement fund and the Alaska retiree health care trust at the 24 | |
| 272 | - | close of each pay period. If the contributions are not submitted within the prescribed 25 | |
| 273 | - | time limit, interest must be assessed on the outstanding contributions at [ONE AND 26 | |
| 274 | - | ONE-HALF TIMES] the most recent actuarially determined rate of earnings for the 27 | |
| 275 | - | plan from the date that contributions were originally due. Amounts due from an 28 | |
| 276 | - | employer and interest as prescribed in this section may be claimed by the 29 | |
| 277 | - | administrator from any agency of the state or political subdivi | |
| 278 | - | sion that has in its 30 | |
| 279 | - | possession funds of the employer or that is authorized to disburse funds to the 31 33-LS0505\T | |
| 280 | - | SB0088C -9- CSSB 88(FIN) | |
| 248 | + | of this section, the board shall determine an amount sufficient to address the plan's 1 | |
| 249 | + | past service liability attributable to all members who first became members of the plan 2 | |
| 250 | + | after June 30, 2006. An increase to the member contribution rate may raise not more 3 | |
| 251 | + | than 50 percent of the amount sufficient to address the plan's past service liability 4 | |
| 252 | + | attributable to all members who first became members of the plan after June 30, 2006. 5 | |
| 253 | + | The board may decrease the rate under (e) of this section if the board determines that 6 | |
| 254 | + | the portion of the liability of the plan that is attributable to all members who first 7 | |
| 255 | + | became members of the plan after June 30, 2006, is funded above 90 percent. 8 | |
| 256 | + | * Sec. 9. AS 14.25.065(b) is amended to read: 9 | |
| 257 | + | (b) The contributions of employers under AS 14.25.070 must be transmitted to 10 | |
| 258 | + | the plan for deposit in the retirement fund and the Alaska retiree health care trust at the 11 | |
| 259 | + | close of each pay period. If the contributions are not submitted within the prescribed 12 | |
| 260 | + | time limit, interest must be assessed on the outstanding contributions at [ONE AND 13 | |
| 261 | + | ONE-HALF TIMES] the most recent actuarially determined rate of earnings for the 14 | |
| 262 | + | plan from the date that contributions were originally due. Amounts due from an 15 | |
| 263 | + | employer and interest as prescribed in this section may be claimed by the 16 | |
| 264 | + | administrator from any agency of the state or political subdivision that has in its 17 | |
| 265 | + | possession funds of the employer or that is authorized to disburse funds to the 18 | |
| 266 | + | employer that are not restricted by statute or appropriation to a specific purpose. The 19 | |
| 267 | + | amount claimed shall be certified by the administrator as sufficient to pay the 20 | |
| 268 | + | contributions and interest due from the employer. The amount claimed shall be 21 | |
| 269 | + | submitted to the administrator for deposit in the retirement fund and the Alaska retiree 22 | |
| 270 | + | health care trust. 23 | |
| 271 | + | * Sec. 10. AS 14.25.070(a) is amended to read: 24 | |
| 272 | + | (a) Each employer shall contribute to the system every payroll period the 25 | |
| 273 | + | lesser of 26 | |
| 274 | + | (1) an amount calculated by applying a rate of 12.56 percent to the 27 | |
| 275 | + | total of all base salaries paid by the employer to active members of the system and to 28 | |
| 276 | + | members who are retired from the plan and reemployed under AS 14.20.136, 29 | |
| 277 | + | including any adjustments to contributions required by AS 14.25.173(a); or 30 | |
| 278 | + | (2) an amount calculated by applying a rate established by the 31 33-LS0505\D | |
| 279 | + | SB0088B -9- CSSB 88(L&C) | |
| 281 | 280 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 282 | 281 | ||
| 283 | - | ||
| 284 | - | ||
| 285 | - | contributions | |
| 286 | - | ||
| 287 | - | ||
| 288 | - | ||
| 289 | - | ||
| 290 | - | ||
| 291 | - | ( | |
| 292 | - | ||
| 293 | - | ||
| 294 | - | ||
| 295 | - | ( | |
| 296 | - | ||
| 297 | - | ||
| 298 | - | ||
| 299 | - | ||
| 300 | - | to | |
| 301 | - | ||
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| 305 | - | ||
| 306 | - | ||
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| 310 | - | ||
| 311 | - | ||
| 312 | - | ||
| 313 | - | ||
| 314 | - | CSSB 88( | |
| 282 | + | board under AS 37.10.220 to the total of all base salaries paid by the employer to 1 | |
| 283 | + | active members of the system and to members who are retired from the plan and 2 | |
| 284 | + | reemployed under AS 14.20.136, including any adjustments to contributions 3 | |
| 285 | + | required by AS 14.25.173(a); the rate must be at least 12 percent and be sufficient 4 | |
| 286 | + | to pay the actuarially determined employer normal cost, all contributions 5 | |
| 287 | + | required under AS 14.25.350 and AS 39.30.370, and past service cost for 6 | |
| 288 | + | members of the system. 7 | |
| 289 | + | * Sec. 11. AS 14.25.070 is amended by adding a new subsection to read: 8 | |
| 290 | + | (i) If the legislature appropriates funds for the purpose of decreasing an 9 | |
| 291 | + | employer's contribution, the employer's contribution under (a) of this section shall 10 | |
| 292 | + | decrease by that amount. 11 | |
| 293 | + | * Sec. 12. AS 14.25.075(a) is amended to read: 12 | |
| 294 | + | (a) An employee who is eligible to purchase credited service under 13 | |
| 295 | + | AS 14.25.047 or 14.25.048, a member who is eligible to purchase credited service 14 | |
| 296 | + | under former AS 14.25.061 or under AS 14.25.048, 14.25.050, 14.25.060, 15 | |
| 297 | + | [14.25.061,] 14.25.100, or 14.25.107, or a teacher who is eligible to purchase credited 16 | |
| 298 | + | service under AS 14.20.345, AS 14.25.044, 14.25.050 [AS 14.25.050], or 14.25.105, 17 | |
| 299 | + | in lieu of making payments directly to the plan, may elect to have the member's 18 | |
| 300 | + | employer make payments as provided in this section. 19 | |
| 301 | + | * Sec. 13. AS 14.25.075(b) is amended to read: 20 | |
| 302 | + | (b) A member may elect to have the employer make payments for all or any 21 | |
| 303 | + | portion of the amounts payable for the member's purchase of credited service through 22 | |
| 304 | + | a salary reduction program as follows: 23 | |
| 305 | + | (1) the amounts paid under a salary reduction program are in lieu of 24 | |
| 306 | + | contributions by the member making the election; the electing member's salary or 25 | |
| 307 | + | other compensation shall be reduced by the amount paid by the employer under this 26 | |
| 308 | + | subsection; 27 | |
| 309 | + | (2) the member shall make an irrevocable election under this 28 | |
| 310 | + | subsection to purchase credited service as permitted in former AS 14.25.061 or in 29 | |
| 311 | + | AS 14.20.345, AS 14.25.044, 14.25.047 [AS 14.25.047], 14.25.048, 14.25.050, 30 | |
| 312 | + | 14.25.060, [14.25.061,] 14.25.100, 14.25.105, or 14.25.107 before the member's 31 33-LS0505\D | |
| 313 | + | CSSB 88(L&C) -10- SB0088B | |
| 315 | 314 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 316 | 315 | ||
| 317 | - | ||
| 318 | - | ||
| 319 | - | ||
| 320 | - | ||
| 321 | - | ||
| 322 | - | ||
| 323 | - | ||
| 324 | - | ||
| 325 | - | ||
| 326 | - | ( | |
| 327 | - | ||
| 328 | - | ||
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| 330 | - | ||
| 331 | - | ||
| 332 | - | ||
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| 334 | - | ||
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| 336 | - | ||
| 337 | - | ||
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| 340 | - | ||
| 341 | - | ||
| 342 | - | ||
| 343 | - | ||
| 344 | - | ||
| 345 | - | ||
| 346 | - | ||
| 347 | - | ||
| 348 | - | ||
| 316 | + | termination of employment; the irrevocable election must specify the number of 1 | |
| 317 | + | payroll periods that deductions will be made from the member's compensation and the 2 | |
| 318 | + | dollar amount of deductions for each payroll period during the specified number of 3 | |
| 319 | + | payroll periods; the deductions made under this paragraph cease upon the earlier of the 4 | |
| 320 | + | member's termination of employment with the employer or the member's death; 5 | |
| 321 | + | amounts paid by an employer under (f) of this section may not be applied toward the 6 | |
| 322 | + | payment of the dollar amount of the deductions representing the portion of the credited 7 | |
| 323 | + | service that is being purchased by the member through payroll deduction in 8 | |
| 324 | + | accordance with the member's irrevocable election under this paragraph; 9 | |
| 325 | + | (3) amounts paid by an employer under this subsection shall be treated 10 | |
| 326 | + | as employer contributions for the purpose of determining tax treatment under 26 11 | |
| 327 | + | U.S.C. (Internal Revenue Code); the amounts paid by the employer under this section 12 | |
| 328 | + | may not be included in the member's gross income for income tax purposes until those 13 | |
| 329 | + | amounts are distributed by refund or retirement benefit payments. 14 | |
| 330 | + | * Sec. 14. AS 14.25.075(i) is amended to read: 15 | |
| 331 | + | (i) On satisfaction of the eligibility requirements of former AS 14.25.061 or 16 | |
| 332 | + | of AS 14.20.345, AS 14.25.044, 14.25.047 [AS 14.25.047], 14.25.048, 14.25.050, 17 | |
| 333 | + | 14.25.060, [14.25.061,] 14.25.100, 14.25.105, or 14.25.107, the requirements of this 18 | |
| 334 | + | section, and the administrative filing requirements specified by the administrator, the 19 | |
| 335 | + | plan shall adjust the member's credited service history and add any additional service 20 | |
| 336 | + | credits acquired. 21 | |
| 337 | + | * Sec. 15. AS 14.25 is amended by adding a new section to read: 22 | |
| 338 | + | Sec. 14.25.086. Contributions for member who first became a member 23 | |
| 339 | + | after June 30, 2006. Contributions made by an employer under AS 14.25.070 and 24 | |
| 340 | + | 14.25.085 for a member who first became a member after June 30, 2006, other than 25 | |
| 341 | + | contributions separately computed for medical benefits under AS 14.25.087, and the 26 | |
| 342 | + | member's contribution account must be deposited in a sub-trust of the retirement fund 27 | |
| 343 | + | established by the board. 28 | |
| 344 | + | * Sec. 16. AS 14.25.087 is amended to read: 29 | |
| 345 | + | Sec. 14.25.087. Contributions for medical benefits. Contributions made by 30 | |
| 346 | + | an employer under AS 14.25.070 and 14.25.085 must [SHALL] be separately 31 33-LS0505\D | |
| 347 | + | SB0088B -11- CSSB 88(L&C) | |
| 349 | 348 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 350 | 349 | ||
| 351 | - | ||
| 352 | - | ||
| 353 | - | ||
| 354 | - | ||
| 355 | - | ||
| 356 | - | ||
| 357 | - | ||
| 358 | - | ||
| 359 | - | ||
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| 362 | - | ||
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| 365 | - | ||
| 366 | - | ||
| 367 | - | ||
| 368 | - | ||
| 369 | - | ||
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| 372 | - | ||
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| 374 | - | ||
| 375 | - | ||
| 376 | - | ||
| 377 | - | ||
| 378 | - | ||
| 379 | - | ( | |
| 380 | - | ||
| 381 | - | ||
| 382 | - | CSSB 88( | |
| 350 | + | computed for benefits provided by AS 14.25.168, 14.25.171, and AS 39.30.400. The 1 | |
| 351 | + | contributions computed for benefits provided under 2 | |
| 352 | + | (1) AS 14.25.168 must [AND SHALL] be deposited in the Alaska 3 | |
| 353 | + | retiree health care trust established under AS 39.30.097(a); 4 | |
| 354 | + | (2) AS 14.25.171 must be deposited in the Alaska retiree health 5 | |
| 355 | + | care trust established under AS 39.30.097(b); and 6 | |
| 356 | + | (3) AS 39.30.400 must be deposited in the teachers' and public 7 | |
| 357 | + | employees' retiree health reimbursement arrangement plan trust fund 8 | |
| 358 | + | established under AS 39.30.340. 9 | |
| 359 | + | * Sec. 17. AS 14.25.110(a) is amended to read: 10 | |
| 360 | + | (a) Subject to AS 14.25.167, 11 | |
| 361 | + | (1) a member who first became a member of the plan before July 1, 12 | |
| 362 | + | 2006, is eligible for a normal retirement benefit if the member 13 | |
| 363 | + | (A) [(1)] was first hired before July 1, 1975, has attained the 14 | |
| 364 | + | age of 55 years, and has at least 15 years of credited service, the last five of 15 | |
| 365 | + | which have been membership service, or is otherwise vested in the plan; 16 | |
| 366 | + | (B) [(2)] has attained the age of 60 years and has at least eight 17 | |
| 367 | + | years of membership service; 18 | |
| 368 | + | (C) [(3)] has attained the age of 60 years, has at least five years 19 | |
| 369 | + | of membership service, and has Alaska BIA service which, when added to the 20 | |
| 370 | + | membership service, will equal at least eight years; 21 | |
| 371 | + | (D) [(4)] has at least 25 years of credited service, the last five 22 | |
| 372 | + | of which have been membership service; 23 | |
| 373 | + | (E) [(5)] has at least 20 years of membership service; 24 | |
| 374 | + | (F) [(6)] has at least 20 years of combined membership service 25 | |
| 375 | + | and Alaska BIA service, the last five of which have been membership service; 26 | |
| 376 | + | or 27 | |
| 377 | + | (G) [(7)] has, for each of 20 school years, 28 | |
| 378 | + | (i) [(A)] at least one-half year of membership service as 29 | |
| 379 | + | a part-time teacher; 30 | |
| 380 | + | (ii) [(B)] one full year of membership service as a full-31 33-LS0505\D | |
| 381 | + | CSSB 88(L&C) -12- SB0088B | |
| 383 | 382 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 384 | 383 | ||
| 385 | - | ||
| 386 | - | ||
| 387 | - | ||
| 388 | - | of | |
| 389 | - | ||
| 390 | - | ( | |
| 391 | - | of | |
| 392 | - | ( | |
| 393 | - | ||
| 394 | - | ||
| 395 | - | ||
| 396 | - | ( | |
| 397 | - | ||
| 398 | - | a | |
| 399 | - | ||
| 400 | - | ||
| 401 | - | ( | |
| 402 | - | ||
| 403 | - | ||
| 404 | - | ||
| 405 | - | (A) | |
| 406 | - | years of | |
| 407 | - | ||
| 408 | - | [ | |
| 409 | - | ||
| 410 | - | ||
| 411 | - | ||
| 412 | - | and | |
| 413 | - | ||
| 414 | - | ||
| 415 | - | ( | |
| 416 | - | ||
| 384 | + | time teacher; or 1 | |
| 385 | + | (iii) [(C)] any combination of service qualified under 2 | |
| 386 | + | this subparagraph; 3 | |
| 387 | + | (2) a member who first became a member of the plan after 4 | |
| 388 | + | June 30, 2006, is eligible for a normal retirement benefit if the member 5 | |
| 389 | + | (A) has attained the age of 60 years and has at least five 6 | |
| 390 | + | years of membership service; or 7 | |
| 391 | + | (B) has at least 30 years of membership service 8 | |
| 392 | + | [PARAGRAPH]. 9 | |
| 393 | + | * Sec. 18. AS 14.25.110(b) is amended to read: 10 | |
| 394 | + | (b) Subject to AS 14.25.167, a member is eligible for an early retirement 11 | |
| 395 | + | benefit upon completing the service requirements in (a)(1)(A) [(a)(1)] of this section 12 | |
| 396 | + | and attaining the age of 50 years or upon completing the service requirements in 13 | |
| 397 | + | (a)(1)(B) or (C) [(a)(2) OR (3)] of this section and attaining the age of 55 years. 14 | |
| 398 | + | * Sec. 19. AS 14.25.110(d) is amended to read: 15 | |
| 399 | + | (d) The monthly amount of a retirement benefit 16 | |
| 400 | + | (1) for a member who first became a member of the plan before 17 | |
| 401 | + | July 1, 2006, and who has paid the full amount of any indebtedness is one-twelfth of 18 | |
| 402 | + | the member's average base salary during any three school years of membership service 19 | |
| 403 | + | multiplied by 20 | |
| 404 | + | (A) [(1)] two percent of the years of credited service earned 21 | |
| 405 | + | before June 30, 1990, including credited fractional years, and the years of 22 | |
| 406 | + | credited service through a total of 20 years; plus 23 | |
| 407 | + | (B) [(2)] two and one-half percent of the years of credited 24 | |
| 408 | + | service earned after June 30, 1990, that are more than 20 years of total credited 25 | |
| 409 | + | service; 26 | |
| 410 | + | (2) for a member who first became a member of the plan after 27 | |
| 411 | + | June 30, 2006, and who has paid the full amount of any indebtedness is one-28 | |
| 412 | + | twelfth of the member's average base salary during any five school years of 29 | |
| 413 | + | membership service multiplied by 30 | |
| 414 | + | (A) two percent of the years of credited service through a 31 33-LS0505\D | |
| 415 | + | SB0088B -13- CSSB 88(L&C) | |
| 417 | 416 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 418 | 417 | ||
| 419 | - | ||
| 420 | - | ||
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| 432 | - | ||
| 433 | - | (A) | |
| 434 | - | ||
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| 447 | - | ||
| 448 | - | ||
| 449 | - | ||
| 450 | - | CSSB 88( | |
| 418 | + | total of 10 years; plus 1 | |
| 419 | + | (B) two and one-quarter percent of the years over 10 years 2 | |
| 420 | + | of total credited service through 20 years; plus 3 | |
| 421 | + | (C) two and one-half percent of the years of credited service 4 | |
| 422 | + | that are more than 20 years of total credited service. 5 | |
| 423 | + | * Sec. 20. AS 14.25.142(a) is amended to read: 6 | |
| 424 | + | (a) While residing in the state, a person who first became a member of the 7 | |
| 425 | + | plan before July 1, 2006, who is receiving a benefit under AS 14.25.009 - 14.25.220, 8 | |
| 426 | + | and who is at least 65 years of age or a person who first became a member of the 9 | |
| 427 | + | plan before July 1, 2006, and who is receiving a disability benefit under 10 | |
| 428 | + | AS 14.25.009 - 14.25.220 is entitled to receive a monthly cost-of-living allowance in 11 | |
| 429 | + | addition to the basic benefit. The amount of this allowance is 10 percent of the basic 12 | |
| 430 | + | benefit. 13 | |
| 431 | + | * Sec. 21. AS 14.25.143(a) is amended to read: 14 | |
| 432 | + | (a) Once each year, the administrator shall increase benefit payments to 15 | |
| 433 | + | eligible disabled members, to persons age 60 or older receiving benefits under this 16 | |
| 434 | + | plan in the preceding calendar year, and to persons who have received benefits under 17 | |
| 435 | + | this plan for at least five [EIGHT] years who are not otherwise eligible for an increase 18 | |
| 436 | + | under this section. 19 | |
| 437 | + | * Sec. 22. AS 14.25.143(b) is amended to read: 20 | |
| 438 | + | (b) Subject to (g) and (h) of this section, the [THE] increase in benefit 21 | |
| 439 | + | payments applies to total benefit payments except for the cost-of-living allowance 22 | |
| 440 | + | under AS 14.25.142. The amount of the increase is a percentage of the current benefit 23 | |
| 441 | + | equal to 24 | |
| 442 | + | (1) the lesser of 75 percent of the increase in the cost of living in the 25 | |
| 443 | + | preceding calendar year or nine percent, for recipients who on July 1 are at least 65 26 | |
| 444 | + | years old and for members receiving disability benefits; and 27 | |
| 445 | + | (2) the lesser of 50 percent of the increase in the cost of living in the 28 | |
| 446 | + | preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 29 | |
| 447 | + | less than 65 years old or for recipients who on July 1 are less than 60 years old but 30 | |
| 448 | + | who have received benefits from the plan for at least eight years. 31 33-LS0505\D | |
| 449 | + | CSSB 88(L&C) -14- SB0088B | |
| 451 | 450 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 452 | 451 | ||
| 453 | - | ||
| 454 | - | this | |
| 455 | - | ||
| 456 | - | ||
| 457 | - | ( | |
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| 469 | - | ( | |
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| 484 | - | ||
| 452 | + | * Sec. 23. AS 14.25.143 is amended by adding new subsections to read: 1 | |
| 453 | + | (g) Subject to (h) of this section, the amount of an increase for members who 2 | |
| 454 | + | first became members of the plan after June 30, 2006, and do not meet the eligibility 3 | |
| 455 | + | requirements for a permanent fund dividend in effect on July 1, 2024, under 4 | |
| 456 | + | AS 43.23.005(a) is equal to one-half of the applicable percentage under (b) of this 5 | |
| 457 | + | section. 6 | |
| 458 | + | (h) If the board determines that the portion of the liability of the plan that is 7 | |
| 459 | + | attributable to all members who first became members of the plan after June 30, 2006, 8 | |
| 460 | + | is funded below 90 percent, the board may reduce the amount of the increase 9 | |
| 461 | + | determined under (b) or (g) of this section that is payable to a member who first 10 | |
| 462 | + | became a member after June 30, 2006. At any time, the board may terminate a 11 | |
| 463 | + | reduction made under this subsection. 12 | |
| 464 | + | * Sec. 24. AS 14.25.168(a) is amended to read: 13 | |
| 465 | + | (a) Except as provided in AS 14.25.171 and (c) of this section, the following 14 | |
| 466 | + | persons are entitled to major medical insurance coverage under this section: 15 | |
| 467 | + | (1) for teachers first hired before July 1, 1990, 16 | |
| 468 | + | (A) a teacher who is receiving a monthly benefit from the plan 17 | |
| 469 | + | and who has elected coverage; 18 | |
| 470 | + | (B) the spouse and dependent children of the teacher described 19 | |
| 471 | + | in (A) of this paragraph; 20 | |
| 472 | + | (C) the surviving spouse of a deceased teacher who is receiving 21 | |
| 473 | + | a monthly benefit from the plan and who has elected coverage; 22 | |
| 474 | + | (D) the dependent children of a deceased teacher who are 23 | |
| 475 | + | dependent on the surviving spouse described in (C) of this paragraph; 24 | |
| 476 | + | (2) for teachers first hired [ON OR] after June 30 [JULY 1], 1990, 25 | |
| 477 | + | (A) a teacher who is receiving a monthly benefit from the plan 26 | |
| 478 | + | and who has elected coverage for the teacher; 27 | |
| 479 | + | (B) the spouse of the teacher described in (A) of this paragraph 28 | |
| 480 | + | if the teacher elected coverage for the spouse; 29 | |
| 481 | + | (C) the dependent children of the teacher described in (A) of 30 | |
| 482 | + | this paragraph if the teacher elected coverage for the dependent children; 31 33-LS0505\D | |
| 483 | + | SB0088B -15- CSSB 88(L&C) | |
| 485 | 484 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 486 | 485 | ||
| 487 | - | ( | |
| 488 | - | and who has elected coverage; 2 | |
| 489 | - | ( | |
| 490 | - | in ( | |
| 491 | - | ||
| 492 | - | a | |
| 493 | - | ||
| 494 | - | ||
| 495 | - | ||
| 496 | - | ||
| 497 | - | ||
| 498 | - | ||
| 499 | - | if the | |
| 500 | - | ||
| 501 | - | ||
| 502 | - | ( | |
| 503 | - | ||
| 504 | - | ( | |
| 505 | - | ||
| 506 | - | ||
| 507 | - | ||
| 508 | - | ||
| 509 | - | ||
| 510 | - | ||
| 511 | - | ||
| 512 | - | ||
| 513 | - | this section | |
| 514 | - | ||
| 515 | - | ||
| 516 | - | ||
| 517 | - | ||
| 518 | - | CSSB 88( | |
| 486 | + | (D) the surviving spouse of a deceased teacher who is receiving 1 | |
| 487 | + | a monthly benefit from the plan and who has elected coverage; 2 | |
| 488 | + | (E) the dependent children of a deceased teacher who are 3 | |
| 489 | + | dependent on the surviving spouse described in (D) of this paragraph if the 4 | |
| 490 | + | surviving spouse has elected coverage for the dependent children. 5 | |
| 491 | + | * Sec. 25. AS 14.25 is amended by adding a new section to read: 6 | |
| 492 | + | Sec. 14.25.171. Medical benefit; eligibility of employees first hired after 7 | |
| 493 | + | June 30, 2006; surviving spouses and dependents. (a) A teacher who first became a 8 | |
| 494 | + | member of the plan after June 30, 2006, receives a monthly benefit from the plan, 9 | |
| 495 | + | retired directly from the plan, and has elected benefits under this section is entitled to 10 | |
| 496 | + | medical benefits under this section. A member who applies for medical benefits under 11 | |
| 497 | + | this section shall apply on the forms and in the manner prescribed by the 12 | |
| 498 | + | administrator. A member is eligible to retire from the plan if the member has been an 13 | |
| 499 | + | active member for at least 12 months before application for retirement and the member 14 | |
| 500 | + | (1) has at least 30 years of service; or 15 | |
| 501 | + | (2) reaches the age set for Medicare eligibility and has at least 10 years 16 | |
| 502 | + | of service. 17 | |
| 503 | + | (b) The member's surviving spouse is eligible to elect medical benefits if the 18 | |
| 504 | + | member had retired or was eligible for retirement and medical benefits at the time of 19 | |
| 505 | + | the member's death. 20 | |
| 506 | + | (c) The medical benefits available to eligible persons are access to the retiree 21 | |
| 507 | + | major medical insurance plan and access to the health reimbursement arrangement 22 | |
| 508 | + | plan under AS 39.30.300. Access to the retiree major medical insurance plan means 23 | |
| 509 | + | that an eligible person may not be denied insurance coverage except for failure to pay 24 | |
| 510 | + | the required premium. 25 | |
| 511 | + | (d) Retiree major medical insurance plan coverage elected by an eligible 26 | |
| 512 | + | member under this section covers the eligible member, the spouse of the eligible 27 | |
| 513 | + | member, and the dependent children of the eligible member. 28 | |
| 514 | + | (e) Retiree major medical insurance plan coverage elected by a surviving 29 | |
| 515 | + | spouse of an eligible member under this section covers the surviving spouse and the 30 | |
| 516 | + | dependent children of the eligible member who are dependent on the surviving spouse. 31 33-LS0505\D | |
| 517 | + | CSSB 88(L&C) -16- SB0088B | |
| 519 | 518 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 520 | 519 | ||
| 521 | - | of service. 1 | |
| 522 | - | (b) The member's surviving spouse is eligible to elect medical benefits if the 2 | |
| 523 | - | member had retired or was eligible for retirement and medical benefits at the time of 3 | |
| 524 | - | the member's death. 4 | |
| 525 | - | (c) The medical benefits available to eligible persons are access to the retiree 5 | |
| 526 | - | major medical insurance plan and access to the health reimbursement arrangement 6 | |
| 527 | - | plan under AS 39.30.300. Access to the retiree major medical insurance plan means 7 | |
| 528 | - | that an eligible person may not be denied insurance coverage except for failure to pay 8 | |
| 529 | - | the required premium. 9 | |
| 530 | - | (d) Retiree major medical insurance plan coverage elected by an eligible 10 | |
| 531 | - | member under this section covers the eligible member, the spouse of the eligible 11 | |
| 532 | - | member, and the dependent children of the eligible member. 12 | |
| 533 | - | (e) Retiree major medical insurance plan coverage elected by a surviving 13 | |
| 534 | - | spouse of an eligible member under this section covers the surviving spouse and the 14 | |
| 535 | - | dependent children of the eligible member who are dependent on the surviving spouse. 15 | |
| 536 | - | (f) Participation in the retiree major medical insurance plan is not required in 16 | |
| 537 | - | order to participate in the health reimbursement arrangement plan. 17 | |
| 538 | - | (g) A person eligible for medical benefits under this section is not required to 18 | |
| 539 | - | participate in the health reimbursement arrangement plan in order to participate in the 19 | |
| 540 | - | retiree major medical insurance plan. 20 | |
| 541 | - | (h) A person who is eligible for medical benefits under this section must make 21 | |
| 542 | - | the irrevocable election to participate or not participate in the retiree major medical 22 | |
| 543 | - | insurance plan on or before the date the person reaches 70 1/2 years of age or when the 23 | |
| 544 | - | person applies for retirement and medical benefits, whichever is later. 24 | |
| 545 | - | (i) Major medical insurance coverage takes effect on the first day of the month 25 | |
| 546 | - | following the date of the administrator's approval of the election and stops when the 26 | |
| 547 | - | person who elects coverage dies or fails to make a required premium payment. 27 | |
| 548 | - | (j) The coverage for persons 65 years of age or older is the same as that 28 | |
| 549 | - | available for persons under 65 years of age. The benefits payable to those persons 65 29 | |
| 550 | - | years of age or older supplement any benefits provided under the federal old age, 30 | |
| 551 | - | survivors, and disability insurance program. 31 33-LS0505\T | |
| 552 | - | SB0088C -17- CSSB 88(FIN) | |
| 520 | + | (f) Participation in the retiree major medical insurance plan is not required in 1 | |
| 521 | + | order to participate in the health reimbursement arrangement plan. 2 | |
| 522 | + | (g) A person eligible for medical benefits under this section is not required to 3 | |
| 523 | + | participate in the health reimbursement arrangement plan in order to participate in the 4 | |
| 524 | + | retiree major medical insurance plan. 5 | |
| 525 | + | (h) A person who is eligible for medical benefits under this section must make 6 | |
| 526 | + | the irrevocable election to participate or not participate in the retiree major medical 7 | |
| 527 | + | insurance plan on or before the date the person reaches 70 1/2 years of age or when the 8 | |
| 528 | + | person applies for retirement and medical benefits, whichever is later. 9 | |
| 529 | + | (i) Major medical insurance coverage takes effect on the first day of the month 10 | |
| 530 | + | following the date of the administrator's approval of the election and stops when the 11 | |
| 531 | + | person who elects coverage dies or fails to make a required premium payment. 12 | |
| 532 | + | (j) The coverage for persons 65 years of age or older is the same as that 13 | |
| 533 | + | available for persons under 65 years of age. The benefits payable to those persons 65 14 | |
| 534 | + | years of age or older supplement any benefits provided under the federal old age, 15 | |
| 535 | + | survivors, and disability insurance program. 16 | |
| 536 | + | (k) The medical and optional insurance premiums owed by the person who 17 | |
| 537 | + | elects coverage may be deducted from the health reimbursement arrangement plan. If 18 | |
| 538 | + | the amount of the health reimbursement arrangement plan becomes insufficient to pay 19 | |
| 539 | + | the premiums, the person who elects coverage under (a) of this section shall pay the 20 | |
| 540 | + | premiums directly. 21 | |
| 541 | + | (l) The cost of premiums for retiree major medical insurance coverage under 22 | |
| 542 | + | this section for an eligible member or surviving spouse who is 23 | |
| 543 | + | (1) not eligible for Medicare is an amount equal to the full monthly 24 | |
| 544 | + | group premiums for retiree major medical insurance coverage; 25 | |
| 545 | + | (2) eligible for Medicare is the following percentage of the premium 26 | |
| 546 | + | amounts established for retirees who are eligible for Medicare: 27 | |
| 547 | + | (A) 30 percent if the member had 10 or more, but less than 15, 28 | |
| 548 | + | years of service; 29 | |
| 549 | + | (B) 25 percent if the member had 15 or more, but less than 20, 30 | |
| 550 | + | years of service; | |
| 551 | + | 31 33-LS0505\D | |
| 552 | + | SB0088B -17- CSSB 88(L&C) | |
| 553 | 553 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 554 | 554 | ||
| 555 | - | ( | |
| 556 | - | ||
| 557 | - | ||
| 558 | - | ||
| 559 | - | ||
| 560 | - | ( | |
| 561 | - | ||
| 562 | - | ||
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| 564 | - | ( | |
| 565 | - | ||
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| 568 | - | ||
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| 570 | - | ( | |
| 571 | - | ||
| 572 | - | ( | |
| 573 | - | ||
| 574 | - | ||
| 575 | - | ||
| 576 | - | ||
| 577 | - | ||
| 578 | - | ||
| 579 | - | ( | |
| 580 | - | ||
| 581 | - | coverage | |
| 582 | - | ( | |
| 583 | - | ||
| 584 | - | ||
| 585 | - | ( | |
| 586 | - | CSSB 88( | |
| 555 | + | (C) 20 percent if the member had 20 or more, but less than 25, 1 | |
| 556 | + | years of service; 2 | |
| 557 | + | (D) 15 percent if the member had 25 or more, but less than 30, 3 | |
| 558 | + | years of service; 4 | |
| 559 | + | (E) 10 percent if the member had 30 or more years of service. 5 | |
| 560 | + | (m) The eligibility for retiree major medical insurance coverage for an 6 | |
| 561 | + | alternate payee under a qualified domestic relations order shall be determined based 7 | |
| 562 | + | on the eligibility of the member to elect coverage. The alternate payee shall pay the 8 | |
| 563 | + | full monthly premium for retiree major medical insurance coverage. 9 | |
| 564 | + | (n) The administrator shall 10 | |
| 565 | + | (1) inform a person entitled to retiree major medical insurance 11 | |
| 566 | + | coverage under this section in writing 12 | |
| 567 | + | (A) that the health insurance coverage available to retired 13 | |
| 568 | + | members may be different from the health insurance coverage provided to 14 | |
| 569 | + | employees; 15 | |
| 570 | + | (B) of time limits for selecting optional health insurance 16 | |
| 571 | + | coverage; and 17 | |
| 572 | + | (C) whether the election is irrevocable; and 18 | |
| 573 | + | (2) require that a person entitled to retiree major medical insurance 19 | |
| 574 | + | coverage under this section indicate in writing on a form provided by the administrator 20 | |
| 575 | + | whether the person has chosen to receive optional health insurance coverage. 21 | |
| 576 | + | (o) The monthly group premiums for retiree major medical insurance coverage 22 | |
| 577 | + | under this section are established by the administrator in accordance with 23 | |
| 578 | + | AS 39.30.095. Nothing in this chapter guarantees a person who elects coverage under 24 | |
| 579 | + | (a) of this section a monthly group premium rate for retiree major medical insurance 25 | |
| 580 | + | coverage other than the premium in effect for the month in which the premium is due 26 | |
| 581 | + | for coverage for that month. 27 | |
| 582 | + | (p) In this section, "health reimbursement arrangement plan" means the State 28 | |
| 583 | + | of Alaska Teachers' and Public Employees' Retiree Health Reimbursement 29 | |
| 584 | + | Arrangement Plan established in AS 39.30.300. 30 | |
| 585 | + | * Sec. 26. AS 14.25.220(5) is amended to read: 31 33-LS0505\D | |
| 586 | + | CSSB 88(L&C) -18- SB0088B | |
| 587 | 587 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 588 | 588 | ||
| 589 | - | ||
| 590 | - | ( | |
| 591 | - | ||
| 592 | - | ||
| 593 | - | ||
| 594 | - | ||
| 595 | - | ||
| 596 | - | ||
| 597 | - | ||
| 598 | - | ||
| 599 | - | ||
| 600 | - | ||
| 601 | - | ||
| 602 | - | ||
| 603 | - | ||
| 604 | - | ||
| 605 | - | ||
| 606 | - | ||
| 607 | - | ||
| 608 | - | ||
| 609 | - | base salary; | |
| 610 | - | ||
| 611 | - | ||
| 612 | - | ||
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| 615 | - | ||
| 616 | - | ||
| 617 | - | ||
| 618 | - | ||
| 619 | - | ||
| 620 | - | ||
| 589 | + | (5) "average base salary" means, 1 | |
| 590 | + | (A) for a teacher who first became a member before July 1, 2 | |
| 591 | + | 2006, the result obtained by dividing the sum of the member's three highest 3 | |
| 592 | + | years' base salary by three, or if a member does not have three years base 4 | |
| 593 | + | salary, then by dividing the sum of all base salaries by the number of years of 5 | |
| 594 | + | base salary; the base salary for a year in which credit is granted for disability 6 | |
| 595 | + | totaling more than one-third of a year may not be used in the computation of 7 | |
| 596 | + | the average base salary; the base salary in a school year for which the member 8 | |
| 597 | + | receives compensation for less than two-thirds of a year may not be used in the 9 | |
| 598 | + | computation of the average base salary; if compensation is received for more 10 | |
| 599 | + | than two-thirds of a year, the full base salary for that school year shall be used 11 | |
| 600 | + | in the computation of the average base salary; 12 | |
| 601 | + | (B) for a teacher who first became a member after June 30, 13 | |
| 602 | + | 2006, the result obtained by dividing the sum of the member's five highest 14 | |
| 603 | + | years' base salary by five, or if a member does not have five years' base 15 | |
| 604 | + | salary, then by dividing the sum of all base salaries by the number of 16 | |
| 605 | + | years of base salary; the base salary for a year in which credit is granted 17 | |
| 606 | + | for disability totaling more than one-third of a year may not be used in the 18 | |
| 607 | + | computation of the average base salary; the base salary in a school year 19 | |
| 608 | + | for which the member receives compensation for less than two-thirds of a 20 | |
| 609 | + | year may not be used in the computation of the average base salary; if 21 | |
| 610 | + | compensation is received for more than two-thirds of a year, the full base 22 | |
| 611 | + | salary for that school year shall be used in the computation of the average 23 | |
| 612 | + | base salary; 24 | |
| 613 | + | * Sec. 27. AS 14.25.220(6) is amended to read: 25 | |
| 614 | + | (6) "base salary" 26 | |
| 615 | + | (A) means the total remuneration payable under contract for a 27 | |
| 616 | + | full year of membership service, including addenda to the contract and, for a 28 | |
| 617 | + | member who elects to participate solely in this plan under AS 14.25.040(f), 29 | |
| 618 | + | remuneration paid by the public employees' retirement plan employer, 30 | |
| 619 | + | but, for a member first hired on or after July 1, 1996, does not include 31 33-LS0505\D | |
| 620 | + | SB0088B -19- CSSB 88(L&C) | |
| 621 | 621 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 622 | 622 | ||
| 623 | - | ||
| 624 | - | ||
| 625 | - | ||
| 626 | - | ||
| 627 | - | ||
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| 629 | - | ||
| 630 | - | ||
| 631 | - | ||
| 632 | - | ( | |
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| 636 | - | ||
| 637 | - | ||
| 638 | - | ||
| 639 | - | ||
| 640 | - | ||
| 641 | - | ||
| 642 | - | * Sec. | |
| 643 | - | ( | |
| 644 | - | who | |
| 645 | - | ||
| 646 | - | ||
| 647 | - | ||
| 648 | - | ||
| 649 | - | ||
| 650 | - | ( | |
| 651 | - | ||
| 652 | - | ||
| 653 | - | ||
| 654 | - | CSSB 88( | |
| 623 | + | remuneration in excess of the limitations set out in 26 U.S.C. 401(a)(17); 1 | |
| 624 | + | (B) has the same meaning as "compensation" under 2 | |
| 625 | + | AS 39.35.680(9) when applied to a state legislator who elects membership 3 | |
| 626 | + | under AS 14.25.040(b); 4 | |
| 627 | + | * Sec. 28. AS 14.25.220(46) is amended to read: 5 | |
| 628 | + | (46) "vested member" or "vested teacher" means an active member 6 | |
| 629 | + | who [HAS COMPLETED EITHER] 7 | |
| 630 | + | (A) first became a member before July 1, 2006, and has 8 | |
| 631 | + | completed 9 | |
| 632 | + | (i) 15 years of service, the last five of which have been 10 | |
| 633 | + | membership service, for a member first hired before July 1, 1975; 11 | |
| 634 | + | (ii) [(B)] eight years of membership service; 12 | |
| 635 | + | (iii) [(C)] five years of membership and three years of 13 | |
| 636 | + | BIA service; or 14 | |
| 637 | + | (iv) [(D)] 12 school years of part-time membership 15 | |
| 638 | + | service or 12 school years in each of which the member earned either 16 | |
| 639 | + | part-time or full-time membership service; 17 | |
| 640 | + | (B) first became a member after June 30, 2006, and has 18 | |
| 641 | + | completed five years of membership service; 19 | |
| 642 | + | * Sec. 29. AS 14.25.220 is amended by adding a new paragraph to read: 20 | |
| 643 | + | (48) "first became a member after June 30, 2006" includes a member 21 | |
| 644 | + | who elected under former AS 14.25.540 to participate in the defined contribution 22 | |
| 645 | + | retirement plan under AS 14.25.310 - 14.25.590 and who elects to participate in the 23 | |
| 646 | + | defined benefit retirement plan under AS 14.25.009 - 14.25.220. 24 | |
| 647 | + | * Sec. 30. AS 14.25.310 is amended to read: 25 | |
| 648 | + | Sec. 14.25.310. Applicability of AS 14.25.310 - 14.25.590. The provisions of 26 | |
| 649 | + | AS 14.25.310 - 14.25.590 apply only to 27 | |
| 650 | + | (1) teachers who first become members [ON OR] after June 30, 2006, 28 | |
| 651 | + | and before July 1, 2024, and who are eligible but do not elect to participate in a 29 | |
| 652 | + | defined benefit retirement plan under AS 14.25.009 - 14.25.220 or AS 39.35.095 - 30 | |
| 653 | + | 39.35.680; and 31 33-LS0505\D | |
| 654 | + | CSSB 88(L&C) -20- SB0088B | |
| 655 | 655 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 656 | 656 | ||
| 657 | - | ||
| 658 | - | ||
| 659 | - | ||
| 660 | - | ||
| 661 | - | ||
| 662 | - | ||
| 663 | - | AS 14.25. | |
| 664 | - | AS 14.25.310 | |
| 665 | - | ||
| 666 | - | ||
| 667 | - | Sec. | |
| 668 | - | ||
| 669 | - | ||
| 670 | - | ||
| 671 | - | ||
| 672 | - | ||
| 673 | - | ( | |
| 674 | - | ||
| 675 | - | ||
| 676 | - | ||
| 677 | - | ||
| 678 | - | ||
| 679 | - | ||
| 680 | - | ||
| 681 | - | ||
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| 683 | - | ||
| 684 | - | ||
| 685 | - | ||
| 686 | - | ||
| 687 | - | ||
| 688 | - | ||
| 657 | + | (2) teachers [JULY 1, 2006, TO MEMBERS WHO ARE 1 | |
| 658 | + | EMPLOYED BY EMPLOYERS THAT DO NOT PARTICIPATE IN THE 2 | |
| 659 | + | DEFINED BENEFIT RETIREMENT PLAN ESTABLISHED UNDER AS 14.25.009 3 | |
| 660 | + | - 14.25.220, TO FORMER MEMBERS UNDER AS 14.25.220, OR TO MEMBER S] 4 | |
| 661 | + | who transferred [TRANSFER] into the defined contribution retirement plan under 5 | |
| 662 | + | former AS 14.25.540 and do not elect to participate in the defined benefit 6 | |
| 663 | + | retirement plan under AS 14.25.009 - 14.25.220. 7 | |
| 664 | + | * Sec. 31. AS 14.25.310 is amended by adding a new subsection to read: 8 | |
| 665 | + | (b) An employer that participates in the plan shall also participate in the 9 | |
| 666 | + | defined benefit retirement plan under AS 14.25.009 - 14.25.220. 10 | |
| 667 | + | * Sec. 32. AS 14.25.330(a) is amended to read: 11 | |
| 668 | + | (a) A teacher who first becomes a member [ON OR] after June 30, 2006, and 12 | |
| 669 | + | before July 1, 2024, and who does not participate in a defined benefit retirement 13 | |
| 670 | + | plan under AS 14.25.009 - 14.25.220 or AS 39.35.095 - 39.35.680 is [JULY 1, 2006, 14 | |
| 671 | + | SHALL PARTICIPATE IN THE PLAN AS] a member of the defined contribution 15 | |
| 672 | + | retirement plan. 16 | |
| 673 | + | * Sec. 33. AS 14.25.490(a) is amended to read: 17 | |
| 674 | + | (a) Subject to art. XII, sec. 7, Constitution of the State of Alaska, the 18 | |
| 675 | + | [THE] state may [HAS THE RIGHT TO] amend the plan at any time and from time to 19 | |
| 676 | + | time, in whole or in part, including the right to make retroactive amendments referred 20 | |
| 677 | + | to in 26 U.S.C. 401(b). 21 | |
| 678 | + | * Sec. 34. AS 14.25.490(b) is amended to read: 22 | |
| 679 | + | (b) The plan administrator may not modify or amend the plan retroactively [IN 23 | |
| 680 | + | SUCH A MANNER AS] to reduce [THE] benefits accrued by a [OF ANY] member 24 | |
| 681 | + | [ACCRUED TO DATE UNDER THE PLAN BY REASON OF CONTRIBUTIONS 25 | |
| 682 | + | MADE] before the modification or amendment except to the extent that the reduction 26 | |
| 683 | + | is permitted by art. XII, sec. 7, Constitution of the State of Alaska, and the Internal 27 | |
| 684 | + | Revenue Code. 28 | |
| 685 | + | * Sec. 35. AS 14.25.490(c) is amended to read: 29 | |
| 686 | + | (c) Subject to art. XII, sec. 7, Constitution of the State of Alaska, and the 30 | |
| 687 | + | Internal Revenue Code, the [THE] state may [, IN ITS DISCRETION,] terminate the 31 33-LS0505\D | |
| 688 | + | SB0088B -21- CSSB 88(L&C) | |
| 689 | 689 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 690 | 690 | ||
| 691 | - | retirement plan. 1 | |
| 692 | - | * Sec. 33. AS 14.25.490(a) is amended to read: 2 | |
| 691 | + | plan in whole or part [AT ANY TIME] without liability for the termination. If the plan 1 | |
| 692 | + | is terminated, all investments at the time of termination remain in force until all 2 | |
| 693 | + | individual accounts have been completely distributed under the plan. After [, AND, 3 | |
| 694 | + | AFTER] all plan liabilities are satisfied, excess assets of the plan revert to the 4 | |
| 695 | + | employer. 5 | |
| 696 | + | * Sec. 36. AS 14.25.490(d) is repealed and reenacted to read: 6 | |
| 697 | + | (d) Within one year after determining that a contribution to the plan by an 7 | |
| 698 | + | employer was the result of a mistake of fact, the administrator shall return the 8 | |
| 699 | + | contribution to the employer. 9 | |
| 700 | + | * Sec. 37. AS 37.10.220(a) is amended to read: 10 | |
| 701 | + | (a) The board shall 11 | |
| 702 | + | (1) hold regular and special meetings at the call of the chair or of at 12 | |
| 703 | + | least five members; meetings are open to the public, and the board shall keep a full 13 | |
| 704 | + | record of all its proceedings; 14 | |
| 705 | + | (2) after reviewing recommendations from the Department of 15 | |
| 706 | + | Revenue, adopt investment policies for each of the funds entrusted to the board; 16 | |
| 707 | + | (3) determine the appropriate investment objectives for the defined 17 | |
| 708 | + | benefit plans established under the teachers' retirement system under AS 14.25 and the 18 | |
| 709 | + | public employees' retirement system under AS 39.35; 19 | |
| 710 | + | (4) assist in prescribing the policies for the proper operation of the 20 | |
| 711 | + | systems and take other actions necessary to carry out the intent and purpose of the 21 | |
| 712 | + | systems in accordance with AS 37.10.210 - 37.10.390; 22 | |
| 713 | + | (5) provide a range of investment options and establish the rules by 23 | |
| 714 | + | which participants can direct their investments among those options with respect to 24 | |
| 715 | + | accounts established under 25 | |
| 716 | + | (A) AS 14.25.340 - 14.25.350 (teachers' retirement system 26 | |
| 717 | + | defined contribution individual accounts); 27 | |
| 718 | + | (B) AS 39.30.150 - 39.30.180 (State of Alaska Supplementary 28 | |
| 719 | + | Annuity Plan); 29 | |
| 720 | + | (C) AS 39.35.730 - 39.35.750 (public employees' retirement 30 | |
| 721 | + | system defined contribution individual accounts); and 31 33-LS0505\D | |
| 722 | + | CSSB 88(L&C) -22- SB0088B | |
| 723 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 724 | + | ||
| 725 | + | (D) AS 39.45.010 - 39.45.060 (public employees' deferred 1 | |
| 726 | + | compensation program); 2 | |
| 727 | + | (6) establish the rate of interest that shall be annually credited to each 3 | |
| 728 | + | member's individual contribution account in accordance with AS 14.25.145 and 4 | |
| 729 | + | AS 39.35.100 and the rate of interest that shall be annually credited to each member's 5 | |
| 730 | + | account in the health reimbursement arrangement plan under AS 39.30.300 - 6 | |
| 731 | + | 39.30.495; the rate of interest shall be adopted on the basis of the probable effective 7 | |
| 732 | + | rate of interest on a long-term basis, and the rate may be changed from time to time; 8 | |
| 733 | + | (7) adopt a contribution surcharge as necessary under AS 39.35.160(c); 9 | |
| 734 | + | (8) coordinate with the retirement system administrator to have an 10 | |
| 735 | + | annual actuarial valuation of each retirement system prepared to determine system 11 | |
| 736 | + | assets, accrued liabilities, and funding ratios and to certify to the appropriate 12 | |
| 737 | + | budgetary authority of each employer in the system 13 | |
| 738 | + | (A) an appropriate contribution rate for normal costs; [AND] 14 | |
| 739 | + | (B) an appropriate contribution rate for liquidating any past 15 | |
| 740 | + | service liability; in this subparagraph, the appropriate contribution rate for 16 | |
| 741 | + | liquidating the past service liability of the defined benefit retirement plan under 17 | |
| 742 | + | AS 14.25.009 - 14.25.220 or the past service liability of the defined benefit 18 | |
| 743 | + | retirement plan under AS 39.35.095 - 39.35.680 must be determined by a level 19 | |
| 744 | + | percent of pay method based on amortization of the past service liability for a 20 | |
| 745 | + | closed term of 25 years; 21 | |
| 746 | + | (C) an appropriate monthly employer contribution rate 22 | |
| 747 | + | under AS 14.25.070 and AS 39.35.255; and 23 | |
| 748 | + | (D) appropriate adjustments, if any, under AS 14.25.050(e) 24 | |
| 749 | + | and AS 39.35.160(e); 25 | |
| 750 | + | (9) review actuarial assumptions prepared and certified by a member 26 | |
| 751 | + | of the American Academy of Actuaries and conduct experience analyses of the 27 | |
| 752 | + | retirement systems not less than once every four years, except for health cost 28 | |
| 753 | + | assumptions, which shall be reviewed annually; the results of all actuarial assumptions 29 | |
| 754 | + | prepared under this paragraph shall be reviewed and certified by a second member of 30 | |
| 755 | + | the American Academy of Actuaries before presentation to the board; 31 33-LS0505\D | |
| 756 | + | SB0088B -23- CSSB 88(L&C) | |
| 757 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 758 | + | ||
| 759 | + | (10) contract for an independent audit of the state's actuary not less 1 | |
| 760 | + | than once every four years; 2 | |
| 761 | + | (11) contract for an independent audit of the state's performance 3 | |
| 762 | + | consultant not less than once every four years; 4 | |
| 763 | + | (12) obtain an external performance review to evaluate the investment 5 | |
| 764 | + | policies of each fund entrusted to the board and report the results of the review to the 6 | |
| 765 | + | appropriate fund fiduciary; 7 | |
| 766 | + | (13) by the first day of each regular legislative session, report to the 8 | |
| 767 | + | governor, the legislature, and the individual employers participating in the state's 9 | |
| 768 | + | retirement systems on the financial condition of the systems in regard to 10 | |
| 769 | + | (A) the valuation of trust fund assets and liabilities; 11 | |
| 770 | + | (B) current investment policies adopted by the board; 12 | |
| 771 | + | (C) a summary of assets held in trust listed by the categories of 13 | |
| 772 | + | investment; 14 | |
| 773 | + | (D) the income and expenditures for the previous fiscal year; 15 | |
| 774 | + | (E) the return projections for the next calendar year; 16 | |
| 775 | + | (F) one-year, three-year, five-year, and 10-year investment 17 | |
| 776 | + | performance for each of the funds entrusted to the board; and 18 | |
| 777 | + | (G) other statistical data necessary for a proper understanding 19 | |
| 778 | + | of the financial status of the systems; 20 | |
| 779 | + | (14) submit quarterly updates of the investment performance reports to 21 | |
| 780 | + | the Legislative Budget and Audit Committee; 22 | |
| 781 | + | (15) develop an annual operating budget; [AND] 23 | |
| 782 | + | (16) administer pension forfeitures required under AS 37.10.310 using 24 | |
| 783 | + | the procedures of AS 44.62 (Administrative Procedure Act); 25 | |
| 784 | + | (17) establish one or more sub-trusts of the pension fund to hold 26 | |
| 785 | + | employer contributions, employee contributions, assets, and earnings attributable 27 | |
| 786 | + | to members of the defined benefit retirement plan under AS 14.25.009 - 14.25.220 28 | |
| 787 | + | or the defined benefit retirement plan under AS 39.35.095 - 39.35.680 who first 29 | |
| 788 | + | became members of the respective plan after June 30, 2006; and 30 | |
| 789 | + | (18) account for and track employer contributions, employee 31 33-LS0505\D | |
| 790 | + | CSSB 88(L&C) -24- SB0088B | |
| 791 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 792 | + | ||
| 793 | + | contributions, assets, and earnings in each trust fund or sub-trust attributable to 1 | |
| 794 | + | members who first became members after June 30, 2006, of the defined benefit 2 | |
| 795 | + | retirement plan under AS 14.25.009 - 14.25.220 and members who first became 3 | |
| 796 | + | members after June 30, 2006, of the defined benefit retirement plan under 4 | |
| 797 | + | AS 39.35.095 - 39.35.680; employer contributions that exceed those assigned to 5 | |
| 798 | + | members who first became members after June 30, 2006, of the defined benefit 6 | |
| 799 | + | retirement plan under AS 14.25.009 - 14.25.220 and members who first became 7 | |
| 800 | + | members after June 30, 2006, of the defined benefit retirement plan under 8 | |
| 801 | + | AS 39.35.095 - 39.35.680 shall be transferred or retained in trusts or sub-trusts 9 | |
| 802 | + | with liability allocated toward employer normal costs for members who became 10 | |
| 803 | + | members of the respective defined benefit retirement plan before July 1, 2024, 11 | |
| 804 | + | past service costs, the State of Alaska Teachers' and Public Employees' Retiree 12 | |
| 805 | + | Health Reimbursement Arrangement Plan under AS 39.30.300 - 39.30.495, and 13 | |
| 806 | + | employer contributions under AS 14.25.350 and AS 39.35.750. 14 | |
| 807 | + | * Sec. 38. AS 37.10.220(b) is amended to read: 15 | |
| 808 | + | (b) The board may 16 | |
| 809 | + | (1) employ outside investment advisors to review investment policies; 17 | |
| 810 | + | (2) enter into an agreement with the fiduciary of another state fund in 18 | |
| 811 | + | order to assume the management and investment of those assets; 19 | |
| 812 | + | (3) contract for other services necessary to execute the board's powers 20 | |
| 813 | + | and duties; 21 | |
| 814 | + | (4) enter into confidentiality agreements that would exempt records 22 | |
| 815 | + | from AS 40.25.110 and 40.25.120 if the records contain information that could affect 23 | |
| 816 | + | the value of investment by the board or that could impair the ability of the board to 24 | |
| 817 | + | acquire, maintain, or dispose of investments; 25 | |
| 818 | + | (5) adjust the amount of the increase in benefits payable to a 26 | |
| 819 | + | member who first became a member after June 30, 2006, as provided under 27 | |
| 820 | + | AS 14.25.143 and AS 39.35.475; 28 | |
| 821 | + | (6) adjust contribution rates under AS 14.25.050(e) and 29 | |
| 822 | + | AS 39.35.160(e). 30 | |
| 823 | + | * Sec. 39. AS 39.30.090(a) is amended to read: 31 33-LS0505\D | |
| 824 | + | SB0088B -25- CSSB 88(L&C) | |
| 825 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 826 | + | ||
| 827 | + | (a) The Department of Administration may obtain a policy or policies of group 1 | |
| 828 | + | insurance covering state employees, persons entitled to coverage under AS 14.25.168, 2 | |
| 829 | + | 14.25.171, 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.537, 39.35.880, or former 3 | |
| 830 | + | AS 39.37.145, employees of other participating governmental units, or persons 4 | |
| 831 | + | entitled to coverage under AS 23.15.136, subject to the following conditions: 5 | |
| 832 | + | (1) a group insurance policy shall provide one or more of the following 6 | |
| 833 | + | benefits: life insurance, accidental death and dismemberment insurance, weekly 7 | |
| 834 | + | indemnity insurance, hospital expense insurance, surgical expense insurance, dental 8 | |
| 835 | + | expense insurance, audiovisual insurance, or other medical care insurance; 9 | |
| 836 | + | (2) each eligible employee of the state, the spouse and the unmarried 10 | |
| 837 | + | children chiefly dependent on the eligible employee for support, and each eligible 11 | |
| 838 | + | employee of another participating governmental unit shall be covered by the group 12 | |
| 839 | + | policy, unless exempt under regulations adopted by the commissioner of 13 | |
| 840 | + | administration; 14 | |
| 841 | + | (3) a governmental unit may participate under a group policy if 15 | |
| 842 | + | (A) its governing body adopts a resolution authorizing 16 | |
| 843 | + | participation and payment of required premiums; 17 | |
| 844 | + | (B) a certified copy of the resolution is filed with the 18 | |
| 845 | + | Department of Administration; and 19 | |
| 846 | + | (C) the commissioner of administration approves the 20 | |
| 847 | + | participation in writing; 21 | |
| 848 | + | (4) in procuring a policy of group health or group life insurance as 22 | |
| 849 | + | provided under this section or excess loss insurance as provided in AS 39.30.091, the 23 | |
| 850 | + | Department of Administration shall comply with the dual choice requirements of 24 | |
| 851 | + | AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 25 | |
| 852 | + | transact business in the state under AS 21.09, a hospital or medical service corporation 26 | |
| 853 | + | authorized to transact business in this state under AS 21.87, or a health maintenance 27 | |
| 854 | + | organization authorized to operate in this state under AS 21.86; an excess loss 28 | |
| 855 | + | insurance policy may be obtained from a life or health insurer authorized to transact 29 | |
| 856 | + | business in this state under AS 21.09 or from a hospital or medical service corporation 30 | |
| 857 | + | authorized to transact business in this state under AS 21.87; 31 33-LS0505\D | |
| 858 | + | CSSB 88(L&C) -26- SB0088B | |
| 859 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 860 | + | ||
| 861 | + | (5) the Department of Administration shall make available bid 1 | |
| 862 | + | specifications for desired insurance benefits or for administration of benefit claims and 2 | |
| 863 | + | payments to (A) all insurance carriers authorized to transact business in this state 3 | |
| 864 | + | under AS 21.09 and all hospital or medical service corporations authorized to transact 4 | |
| 865 | + | business under AS 21.87 who are qualified to provide the desired benefits; and (B) 5 | |
| 866 | + | insurance carriers authorized to transact business in this state under AS 21.09, hospital 6 | |
| 867 | + | or medical service corporations authorized to transact business under AS 21.87, and 7 | |
| 868 | + | third-party administrators licensed to transact business in this state and qualified to 8 | |
| 869 | + | provide administrative services; the specifications shall be made available at least once 9 | |
| 870 | + | every five years; the lowest responsible bid submitted by an insurance carrier, hospital 10 | |
| 871 | + | or medical service corporation, or third-party administrator with adequate servicing 11 | |
| 872 | + | facilities shall govern selection of a carrier, hospital or medical service corporation, or 12 | |
| 873 | + | third-party administrator under this section or the selection of an insurance carrier or a 13 | |
| 874 | + | hospital or medical service corporation to provide excess loss insurance as provided in 14 | |
| 875 | + | AS 39.30.091; 15 | |
| 876 | + | (6) if the aggregate of dividends payable under the group insurance 16 | |
| 877 | + | policy exceeds the governmental unit's share of the premium, the excess shall be 17 | |
| 878 | + | applied by the governmental unit for the sole benefit of the employees; 18 | |
| 879 | + | (7) a person receiving benefits under AS 14.25.110, AS 22.25, 19 | |
| 880 | + | AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 20 | |
| 881 | + | effect under this section at the time of termination of employment with the state or 21 | |
| 882 | + | participating governmental unit; 22 | |
| 883 | + | (8) a person electing to have insurance under (7) of this subsection 23 | |
| 884 | + | shall pay the cost of this insurance; 24 | |
| 885 | + | (9) for each permanent part-time employee electing coverage under 25 | |
| 886 | + | this section, the state shall contribute one-half the state contribution rate for permanent 26 | |
| 887 | + | full-time state employees, and the permanent part-time employee shall contribute the 27 | |
| 888 | + | other one-half; 28 | |
| 889 | + | (10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 29 | |
| 890 | + | or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 30 | |
| 891 | + | and eligible dependents under this section; the level of coverage for persons over 65 31 33-LS0505\D | |
| 892 | + | SB0088B -27- CSSB 88(L&C) | |
| 893 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 894 | + | ||
| 895 | + | shall be the same as that available before reaching age 65 except that the benefits 1 | |
| 896 | + | payable shall be supplemental to any benefits provided under the federal old age, 2 | |
| 897 | + | survivors, and disability insurance program; a person electing to have insurance under 3 | |
| 898 | + | this paragraph shall pay the cost of the insurance; the commissioner of administration 4 | |
| 899 | + | shall adopt regulations implementing this paragraph; 5 | |
| 900 | + | (11) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 6 | |
| 901 | + | or former AS 39.37 may obtain long-term care insurance for that person and eligible 7 | |
| 902 | + | dependents under this section; a person who elects insurance under this paragraph 8 | |
| 903 | + | shall pay the cost of the insurance premium; the commissioner of administration shall 9 | |
| 904 | + | adopt regulations to implement this paragraph; 10 | |
| 905 | + | (12) each licensee holding a current operating agreement for a vending 11 | |
| 906 | + | facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 12 | |
| 907 | + | applies to governmental units other than the state. 13 | |
| 908 | + | * Sec. 40. AS 39.30.097(b) is amended to read: 14 | |
| 909 | + | (b) The commissioner of administration is authorized to prefund medical 15 | |
| 910 | + | benefits provided by AS 14.25.171, 14.25.480 [AS 14.25.480], AS 39.30.300, 16 | |
| 911 | + | AS 39.35.537, and 39.35.880 [AS 39.35.880] by establishing an irrevocable trust that 17 | |
| 912 | + | is exempt from federal income tax under 26 U.S.C. 115 and subject to the applicable 18 | |
| 913 | + | financial reporting, disclosure, and actuarial requirements of the Governmental 19 | |
| 914 | + | Accounting Standards Board. 20 | |
| 915 | + | * Sec. 41. AS 39.30.300 is amended to read: 21 | |
| 916 | + | Sec. 39.30.300. State of Alaska Teachers' and Public Employees' Retiree 22 | |
| 917 | + | Health Reimbursement Arrangement Plan established. The State of Alaska 23 | |
| 918 | + | Teachers' and Public Employees' Retiree Health Reimbursement Arrangement Plan is 24 | |
| 919 | + | established for 25 | |
| 920 | + | (1) teachers who first become members of the [DEFINED 26 | |
| 921 | + | CONTRIBUTION PLAN OF THE] teachers' retirement system under AS 14.25.009 - 27 | |
| 922 | + | 14.25.590 [AS 14.25.310 - 14.25.590 ON OR] after June 30, 2006 [JULY 1, 2006], 28 | |
| 923 | + | and teachers who elected under former AS 14.25.540 to participate in the plan 29 | |
| 924 | + | under AS 14.25.310 - 14.25.590; and 30 | |
| 925 | + | (2) employees of the state, political subdivisions of the state, and 31 33-LS0505\D | |
| 926 | + | CSSB 88(L&C) -28- SB0088B | |
| 927 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 928 | + | ||
| 929 | + | public organizations of the state who first become members [OF THE DEFINED 1 | |
| 930 | + | CONTRIBUTION PLAN] of the Public Employees' Retirement System of Alaska 2 | |
| 931 | + | (AS 39.35) [PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER 3 | |
| 932 | + | AS 39.35.700 - 39.35.990 ON OR] after June 30, 2006, and employees of the state, 4 | |
| 933 | + | political subdivisions of the state, and public organizations of the state who 5 | |
| 934 | + | elected under former AS 39.35.940 to participate in the plan established under 6 | |
| 935 | + | AS 39.35.700 - 39.35.990 [JULY 1, 2006]. 7 | |
| 936 | + | * Sec. 42. AS 39.30.380 is amended to read: 8 | |
| 937 | + | Sec. 39.30.380. Termination of employment. A person who terminates 9 | |
| 938 | + | employment before meeting the eligibility requirements of AS 14.25.171, 14.25.470, 10 | |
| 939 | + | AS 39.35.537, or 39.35.870 [AS 14.25.470 OR AS 39.35.870] loses any right to the 11 | |
| 940 | + | contributions made on behalf of the person to the teachers' and public employees' 12 | |
| 941 | + | retiree health reimbursement arrangement trust fund. If a person returns to 13 | |
| 942 | + | employment with a participating employer by December 31 of the year in which the 14 | |
| 943 | + | person reaches 65 years of age, the person's account balance shall be restored in the 15 | |
| 944 | + | amount recorded on the date of termination from the trust, adjusted for inflation at the 16 | |
| 945 | + | rate of the Consumer Price Index for Anchorage, Alaska. The earlier period of 17 | |
| 946 | + | employment with a participating employer shall be credited toward eligibility for 18 | |
| 947 | + | medical benefits. 19 | |
| 948 | + | * Sec. 43. AS 39.30.390 is amended to read: 20 | |
| 949 | + | Sec. 39.30.390. Eligibility and reimbursement. Persons who meet the 21 | |
| 950 | + | eligibility requirements of AS 14.25.171, 14.25.470, AS 39.35.537, or 39.35.870 22 | |
| 951 | + | [AS 14.25.470 AND AS 39.35.870] are eligible for reimbursements from the 23 | |
| 952 | + | individual account established for a member under the plan, except members do not 24 | |
| 953 | + | have to retire directly from the system. A person who is the dependent child of an 25 | |
| 954 | + | eligible member is eligible for reimbursements if the eligible member and surviving 26 | |
| 955 | + | spouse have both died so long as the person meets the definition of dependent child. 27 | |
| 956 | + | * Sec. 44. AS 39.30.400(a) is amended to read: 28 | |
| 957 | + | (a) The administrator may deduct the cost of monthly premiums from the 29 | |
| 958 | + | individual account for retiree major medical insurance on behalf of an eligible person 30 | |
| 959 | + | who elected retiree major medical insurance under AS 14.25.171, 14.25.480, 31 33-LS0505\D | |
| 960 | + | SB0088B -29- CSSB 88(L&C) | |
| 961 | + | New Text Underlined [DELETED TEXT BRACKETED] | |
| 962 | + | ||
| 963 | + | AS 39.35.537, or 39.35.880 [AS 14.25.480 OR AS 39.35.880]. 1 | |
| 964 | + | * Sec. 45. AS 39.30.420(a) is amended to read: 2 | |
| 693 | 965 | (a) Subject to art. XII, sec. 7, Constitution of the State of Alaska, the 3 | |
| 694 | 966 | [THE] state may [HAS THE RIGHT TO] amend the plan at any time and from time to 4 | |
| 695 | 967 | time, in whole or in part, including the right to make retroactive amendments referred 5 | |
| 696 | 968 | to in 26 U.S.C. 401(b). 6 | |
| 697 | - | * Sec. | |
| 969 | + | * Sec. 46. AS 39.30.420(b) is amended to read: 7 | |
| 698 | 970 | (b) The plan administrator may not modify or amend the plan retroactively [IN 8 | |
| 699 | 971 | SUCH A MANNER AS] to reduce [THE] benefits accrued by a [OF ANY] member 9 | |
| 700 | 972 | [ACCRUED TO DATE UNDER THE PLAN BY REASON OF CONTRIBUTIONS 10 | |
| 701 | 973 | MADE] before the modification or amendment except to the extent that the reduction 11 | |
| 702 | 974 | is permitted by art. XII, sec. 7, Constitution of the State of Alaska, and the Internal 12 | |
| 703 | 975 | Revenue Code. 13 | |
| 704 | - | * Sec. | |
| 976 | + | * Sec. 47. AS 39.30.420(c) is amended to read: 14 | |
| 705 | 977 | (c) Subject to art. XII, sec. 7, Constitution of the State of Alaska, and the 15 | |
| 706 | 978 | Internal Revenue Code, the [THE] state may [, IN ITS DISCRETION,] terminate the 16 | |
| 707 | 979 | plan in whole or part [AT ANY TIME] without liability for the termination. If the plan 17 | |
| 708 | 980 | is terminated, all investments at the time of termination remain in force until all 18 | |
| 709 | 981 | individual accounts have been completely distributed under the plan. After [, AND, 19 | |
| 710 | 982 | AFTER] all plan liabilities are satisfied, excess assets of the plan revert to the 20 | |
| 711 | 983 | employer. 21 | |
| 712 | - | * Sec. | |
| 984 | + | * Sec. 48. AS 39.30.420(d) is repealed and reenacted to read: 22 | |
| 713 | 985 | (d) Within one year after determining that a contribution to the plan by an 23 | |
| 714 | 986 | employer was the result of a mistake of fact, the administrator shall return the 24 | |
| 715 | 987 | contribution to the employer. 25 | |
| 716 | - | * Sec. | |
| 717 | - | ( | |
| 718 | - | ||
| 719 | - | ||
| 720 | - | ||
| 721 | - | ( | |
| 722 | - | CSSB 88( | |
| 988 | + | * Sec. 49. AS 39.30.495(5) is amended to read: 26 | |
| 989 | + | (5) "eligible person" means a person who meets the eligibility 27 | |
| 990 | + | requirements of AS 14.25.171, 14.25.470, AS 39.35.537, or 39.35.870 [AS 14.25.470 28 | |
| 991 | + | OR AS 39.35.870]; 29 | |
| 992 | + | * Sec. 50. AS 39.30.495(6) is amended to read: 30 | |
| 993 | + | (6) "employer" has the meaning given in AS 14.25.220 for employers 31 33-LS0505\D | |
| 994 | + | CSSB 88(L&C) -30- SB0088B | |
| 723 | 995 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 724 | 996 | ||
| 725 | - | ||
| 726 | - | ||
| 727 | - | ||
| 728 | - | ||
| 729 | - | ||
| 730 | - | ||
| 731 | - | ||
| 732 | - | ( | |
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| 737 | - | ||
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| 740 | - | ||
| 741 | - | ||
| 742 | - | ||
| 743 | - | ( | |
| 744 | - | ||
| 745 | - | AS 39.35. | |
| 746 | - | ||
| 747 | - | ||
| 748 | - | ||
| 749 | - | ( | |
| 750 | - | ||
| 751 | - | ||
| 752 | - | ||
| 753 | - | ||
| 754 | - | ( | |
| 755 | - | ( | |
| 756 | - | ||
| 997 | + | of teachers in the defined benefit retirement plan established in AS 14.25.009 - 1 | |
| 998 | + | 14.25.220, has the meaning given in AS 14.25.590 for employers of teachers in the 2 | |
| 999 | + | defined contribution plan established in AS 14.25.310 - 14.25.590, has the meaning 3 | |
| 1000 | + | given in AS 39.35.680 for employers of public employees in the defined benefit 4 | |
| 1001 | + | retirement plan established in AS 39.35.095 - 39.35.680, and has the meaning given 5 | |
| 1002 | + | in AS 39.35.990 for employers of public employees in the defined contribution plan 6 | |
| 1003 | + | established in AS 39.35.700 - 39.35.990; 7 | |
| 1004 | + | * Sec. 51. AS 39.30.495(9) is amended to read: 8 | |
| 1005 | + | (9) "member" means a member of the State of Alaska Teachers' and 9 | |
| 1006 | + | Public Employees' Retiree Health Reimbursement Arrangement Plan established 10 | |
| 1007 | + | in AS 39.30.300 - 39.30.495 [DEFINED CONTRIBUTION PLAN OF THE 11 | |
| 1008 | + | TEACHERS' RETIREMENT SYSTEM IN AS 14.25.310 - 14.25.590 OR A 12 | |
| 1009 | + | MEMBER OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM IN 13 | |
| 1010 | + | AS 39.35.700 - 39.35.990]; 14 | |
| 1011 | + | * Sec. 52. AS 39.35.095 is amended to read: 15 | |
| 1012 | + | Sec. 39.35.095. Applicability of AS 39.35.095 - 39.35.680. The 16 | |
| 1013 | + | [FOLLOWING] provisions of AS 39.35.095 - 39.35.680 [THIS CHAPTER] apply 17 | |
| 1014 | + | only to members first hired 18 | |
| 1015 | + | (1) before July 1, 2006, who have not elected under former 19 | |
| 1016 | + | AS 39.35.940 to participate in the defined contribution retirement plan under 20 | |
| 1017 | + | AS 39.35.700 - 39.35.990; 21 | |
| 1018 | + | (2) after June 30, 2006, and before July 1, 2024, who are former 22 | |
| 1019 | + | members of the defined contribution retirement plan under AS 39.35.700 - 23 | |
| 1020 | + | 39.35.990; or 24 | |
| 1021 | + | (3) on or after July 1, 2024 [: AS 39.35.095 - 39.35.680]. 25 | |
| 1022 | + | * Sec. 53. AS 39.35.095 is amended by adding a new subsection to read: 26 | |
| 1023 | + | (b) An employee who became a member after June 30, 2006, and before 27 | |
| 1024 | + | July 1, 2024, is subject to AS 39.35.095 - 39.35.680 if the employee 28 | |
| 1025 | + | (1) is not employed by an employer on July 1, 2024; 29 | |
| 1026 | + | (2) is reemployed by an employer after July 1, 2024; and 30 | |
| 1027 | + | (3) has, before the date of reemployment, received 31 33-LS0505\D | |
| 1028 | + | SB0088B -31- CSSB 88(L&C) | |
| 757 | 1029 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 758 | 1030 | ||
| 759 | - | ||
| 760 | - | ||
| 761 | - | ||
| 762 | - | ||
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| 776 | - | ||
| 777 | - | ||
| 778 | - | ||
| 779 | - | ( | |
| 780 | - | ||
| 781 | - | ||
| 782 | - | ( | |
| 783 | - | ||
| 784 | - | ||
| 785 | - | (A) | |
| 786 | - | ||
| 787 | - | ||
| 788 | - | ||
| 789 | - | ||
| 790 | - | CSSB 88( | |
| 1031 | + | (A) a distribution, other than a rollover distribution, of the 1 | |
| 1032 | + | entire balance in the member's individual account in the defined contribution 2 | |
| 1033 | + | retirement plan; or 3 | |
| 1034 | + | (B) a rollover distribution of the entire balance in the member's 4 | |
| 1035 | + | individual account in the defined contribution retirement plan and has not 5 | |
| 1036 | + | within 120 days of reemployment had all or part of a direct rollover 6 | |
| 1037 | + | distribution from an eligible retirement plan owned by the member paid 7 | |
| 1038 | + | directly into the member's individual account. 8 | |
| 1039 | + | * Sec. 54. AS 39.35.100(b) is amended to read: 9 | |
| 1040 | + | (b) An individual account shall be maintained for each employee to record the 10 | |
| 1041 | + | amount of the employee's mandatory contributions collected under AS 39.35.160 11 | |
| 1042 | + | [AS 39.35.160(a)]. As of the last day of each calendar year and of each fiscal year, this 12 | |
| 1043 | + | account shall be credited with interest by applying the prescribed rate of interest, as 13 | |
| 1044 | + | determined by the board, to the balance in the account as of that date. When the 14 | |
| 1045 | + | employee is appointed to retirement, the amount held in the individual account shall 15 | |
| 1046 | + | be used first to fully finance the benefits paid. Once this account has been exhausted, 16 | |
| 1047 | + | the plan shall fully finance the benefits paid that were not financed by the employee's 17 | |
| 1048 | + | individual account. 18 | |
| 1049 | + | * Sec. 55. AS 39.35 is amended by adding a new section to article 3 to read: 19 | |
| 1050 | + | Sec. 39.35.159. Election of defined benefit retirement plan by reemployed 20 | |
| 1051 | + | employees. (a) An employee may make a one-time election to participate in the plan 21 | |
| 1052 | + | under AS 39.35.095 - 39.35.680 if the employee 22 | |
| 1053 | + | (1) was first hired after June 30, 2006, and before July 1, 2024; 23 | |
| 1054 | + | (2) is not employed by an employer on July 1, 2024; 24 | |
| 1055 | + | (3) is reemployed by an employer after July 1, 2024; and 25 | |
| 1056 | + | (4) before the date of reemployment, 26 | |
| 1057 | + | (A) has not received a distribution of the entire balance in the 27 | |
| 1058 | + | employee's individual account under the defined contribution retirement plan 28 | |
| 1059 | + | established in AS 39.35.700 - 39.35.990; or 29 | |
| 1060 | + | (B) has received a rollover distribution of the entire balance in 30 | |
| 1061 | + | the member's individual account in the defined contribution retirement plan 31 33-LS0505\D | |
| 1062 | + | CSSB 88(L&C) -32- SB0088B | |
| 791 | 1063 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 792 | 1064 | ||
| 793 | - | ||
| 794 | - | ||
| 795 | - | ||
| 796 | - | ( | |
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| 798 | - | ( | |
| 799 | - | ||
| 800 | - | ||
| 801 | - | ||
| 802 | - | ||
| 803 | - | ||
| 804 | - | ||
| 805 | - | ||
| 806 | - | ||
| 807 | - | benefit retirement plan | |
| 808 | - | ||
| 809 | - | ||
| 810 | - | ||
| 811 | - | ||
| 812 | - | ||
| 813 | - | ||
| 814 | - | ||
| 815 | - | ||
| 816 | - | ||
| 817 | - | ||
| 818 | - | AS 39.35.095 - | |
| 819 | - | ||
| 820 | - | ||
| 821 | - | ||
| 822 | - | ||
| 823 | - | ||
| 824 | - | ||
| 1065 | + | and has within 120 days of reemployment had all or part of a direct rollover 1 | |
| 1066 | + | distribution from an eligible retirement plan owned by the member paid 2 | |
| 1067 | + | directly into the member's individual account. 3 | |
| 1068 | + | (b) An election under (a) of this section may be made not more than 120 days 4 | |
| 1069 | + | after the date of reemployment. A reemployed employee electing to participate under 5 | |
| 1070 | + | (a) of this section shall use the balance of the employee's individual account in the 6 | |
| 1071 | + | plan under AS 39.35.700 - 39.35.990, including any rollover contributions, to 7 | |
| 1072 | + | purchase credited service in the plan under AS 39.35.095 - 39.35.680. An election 8 | |
| 1073 | + | made under (a) of this section must be made in writing in the manner prescribed by the 9 | |
| 1074 | + | administrator. An election made by an employee who is married is not effective unless 10 | |
| 1075 | + | the election is signed by the employee's spouse. The administrator shall provide an 11 | |
| 1076 | + | employee who is eligible to make an election under (a) of this section with 12 | |
| 1077 | + | information about the potential consequences of the employee's election, including 13 | |
| 1078 | + | calculations to illustrate the effect of moving the employee's retirement plan from a 14 | |
| 1079 | + | defined contribution retirement plan to a defined benefit retirement plan. 15 | |
| 1080 | + | (c) An election made under (a) of this section to participate in the plan under 16 | |
| 1081 | + | AS 39.35.095 - 39.35.680 is irrevocable. On the effective date of the election, an 17 | |
| 1082 | + | eligible employee shall be enrolled as a member of the plan, and the employee's 18 | |
| 1083 | + | participation in the plan shall be governed by the applicable provisions of the plan. 19 | |
| 1084 | + | The employee's enrollment in the plan is retroactive to the date of hire. 20 | |
| 1085 | + | (d) When an eligible employee makes an election under this section, the 21 | |
| 1086 | + | administrator shall cause the total amount of the employee's employee and employer 22 | |
| 1087 | + | contributions to the plan under AS 39.35.700 - 39.35.990, with investment earnings 23 | |
| 1088 | + | and losses through the day of the employee's election to participate as a member in the 24 | |
| 1089 | + | plan under AS 39.35.095 - 39.35.680, to be actuarially calculated and, subject to (f) of 25 | |
| 1090 | + | this section, transferred to the pension fund in the plan under AS 39.35.095 - 26 | |
| 1091 | + | 39.35.680. On the effective date of the employee's participation in the plan under 27 | |
| 1092 | + | AS 39.35.095 - 39.35.680, the employee shall be credited with service in the plan. The 28 | |
| 1093 | + | board shall determine the cost of the employee's actual service time based on the 29 | |
| 1094 | + | employee's accrued actuarial liability of pension benefits in the plan, and credit the 30 | |
| 1095 | + | employee with service time equal to the value actuarially calculated and transferred to 31 33-LS0505\D | |
| 1096 | + | SB0088B -33- CSSB 88(L&C) | |
| 825 | 1097 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 826 | 1098 | ||
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| 830 | - | ||
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| 839 | - | ||
| 840 | - | AS | |
| 841 | - | ||
| 842 | - | AS 39.35. | |
| 843 | - | ||
| 844 | - | ||
| 845 | - | ||
| 846 | - | ||
| 847 | - | ||
| 848 | - | ||
| 849 | - | ||
| 850 | - | ||
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| 854 | - | ||
| 855 | - | ||
| 856 | - | ||
| 857 | - | ||
| 858 | - | CSSB 88( | |
| 1099 | + | the pension fund in the plan under AS 39.35.095 - 39.35.680. The board shall adopt 1 | |
| 1100 | + | regulations establishing transfer procedures. The transfer may not occur later than 60 2 | |
| 1101 | + | days after the date the administrator receives the employee's election, unless the major 3 | |
| 1102 | + | financial markets for securities available for a transfer are seriously disrupted by an 4 | |
| 1103 | + | unforeseen event that also causes the suspension of trading on any national securities 5 | |
| 1104 | + | exchange in the country where the securities were issued. In that event, the 60-day 6 | |
| 1105 | + | period may be extended by a resolution of the board. A transfer is not commissionable 7 | |
| 1106 | + | or subject to other fees and may be in the form of cash or a security as determined by 8 | |
| 1107 | + | the board. A security shall be valued on the date of receipt in the employee's account. 9 | |
| 1108 | + | (e) When making a transfer under (d) of this section, or for a reemployed 10 | |
| 1109 | + | employee entering the plan under AS 39.35.095(b), the administrator shall transfer an 11 | |
| 1110 | + | amount equal to the decrease in the accrued actuarial liability of the death and 12 | |
| 1111 | + | disability trust in the plan under AS 39.35.700 - 39.35.990 resulting from the transfer 13 | |
| 1112 | + | as of the date of transfer, based on the most recent actuarial valuation of the death and 14 | |
| 1113 | + | disability trust, from the death and disability trust in the plan under AS 39.35.700 - 15 | |
| 1114 | + | 39.35.990 to the pension fund in the plan under AS 39.35.095 - 39.35.680. 16 | |
| 1115 | + | (f) If the value actuarially calculated under (d) of this section is insufficient to 17 | |
| 1116 | + | pay for service credit equal to the employee's actual service, the administrator shall 18 | |
| 1117 | + | allow the employee the option of purchasing service credit in an amount up to the 19 | |
| 1118 | + | amount needed to eliminate the insufficiency; however, if that value exceeds the 20 | |
| 1119 | + | amount needed to pay for service credit equal to the employee's actual service, the 21 | |
| 1120 | + | administrator shall cause the excess to remain in the employee's individual account in 22 | |
| 1121 | + | the plan under AS 39.35.700 - 39.35.990. The excess may not be used to purchase 23 | |
| 1122 | + | additional service credit in the plan under AS 39.35.095 - 39.35.680. When a 24 | |
| 1123 | + | reemployed employee enters the plan under AS 39.35.095(b), the administrator shall 25 | |
| 1124 | + | allow the employee to pay for a period of service credit up to the employee's actual 26 | |
| 1125 | + | service. When an employee elects to purchase service credit under this section and 27 | |
| 1126 | + | does not immediately pay for the service credit purchased, an indebtedness is 28 | |
| 1127 | + | established. Interest as prescribed by regulation accrues on an employee's 29 | |
| 1128 | + | indebtedness. Indebtedness that exists at the time the employee is appointed to 30 | |
| 1129 | + | retirement necessitates an actuarial adjustment to the benefits payable due to service in 31 33-LS0505\D | |
| 1130 | + | CSSB 88(L&C) -34- SB0088B | |
| 859 | 1131 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 860 | 1132 | ||
| 861 | - | (3) a governmental unit may participate under a group policy if 1 | |
| 862 | - | (A) its governing body adopts a resolution authorizing 2 | |
| 863 | - | participation and payment of required premiums; 3 | |
| 864 | - | (B) a certified copy of the resolution is filed with the 4 | |
| 865 | - | Department of Administration; and 5 | |
| 866 | - | (C) the commissioner of administration approves the 6 | |
| 867 | - | participation in writing; 7 | |
| 868 | - | (4) in procuring a policy of group health or group life insurance as 8 | |
| 869 | - | provided under this section or excess loss insurance as provided in AS 39.30.091, the 9 | |
| 870 | - | Department of Administration shall comply with the dual choice requirements of 10 | |
| 871 | - | AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 11 | |
| 872 | - | transact business in the state under AS 21.09, a hospital or medical service corporation 12 | |
| 873 | - | authorized to transact business in this state under AS 21.87, or a health maintenance 13 | |
| 874 | - | organization authorized to operate in this state under AS 21.86; an excess loss 14 | |
| 875 | - | insurance policy may be obtained from a life or health insurer authorized to transact 15 | |
| 876 | - | business in this state under AS 21.09 or from a hospital or medical service corporation 16 | |
| 877 | - | authorized to transact business in this state under AS 21.87; 17 | |
| 878 | - | (5) the Department of Administration shall make available bid 18 | |
| 879 | - | specifications for desired insurance benefits or for administration of benefit claims and 19 | |
| 880 | - | payments to (A) all insurance carriers authorized to transact business in this state 20 | |
| 881 | - | under AS 21.09 and all hospital or medical service corporations authorized to transact 21 | |
| 882 | - | business under AS 21.87 who are qualified to provide the desired benefits; and (B) 22 | |
| 883 | - | insurance carriers authorized to transact business in this state under AS 21.09, hospital 23 | |
| 884 | - | or medical service corporations authorized to transact business under AS 21.87, and 24 | |
| 885 | - | third-party administrators licensed to transact business in this state and qualified to 25 | |
| 886 | - | provide administrative services; the specifications shall be made available at least once 26 | |
| 887 | - | every five years; the lowest responsible bid submitted by an insurance carrier, hospital 27 | |
| 888 | - | or medical service corporation, or third-party administrator with adequate servicing 28 | |
| 889 | - | facilities shall govern selection of a carrier, hospital or medical service corporation, or 29 | |
| 890 | - | third-party administrator under this section or the selection of an insurance carrier or a 30 | |
| 891 | - | hospital or medical service corporation to provide excess loss insurance as provided in | |
| 892 | - | 31 33-LS0505\T | |
| 893 | - | SB0088C -27- CSSB 88(FIN) | |
| 1133 | + | the defined contribution retirement plan. 1 | |
| 1134 | + | (g) Actuarial assumptions about the plan under AS 39.35.095 - 39.35.680 2 | |
| 1135 | + | must be based on the most recent actuarial valuation of the plan, except that the 3 | |
| 1136 | + | retirement rates are computed at 25 percent of the retirement rates used in the most 4 | |
| 1137 | + | recent actuarial valuation of the pension fund for the plan plus 75 percent of the 5 | |
| 1138 | + | retirement rates used in the most recent actuarial valuation of the plan under 6 | |
| 1139 | + | AS 39.35.700 - 39.35.990. 7 | |
| 1140 | + | (h) The provisions of this section are subject to the requirements of the 8 | |
| 1141 | + | Internal Revenue Code and the limitations under AS 39.35.115, 39.35.678, 9 | |
| 1142 | + | 39.35.710(c) and (d), and 39.35.895. In this subsection, "Internal Revenue Code" has 10 | |
| 1143 | + | the meaning given in AS 39.35.990. 11 | |
| 1144 | + | * Sec. 56. AS 39.35.160(a) is amended to read: 12 | |
| 1145 | + | (a) Subject to (e) of this section, beginning [BEGINNING] January 1, 1987, 13 | |
| 1146 | + | each peace officer or firefighter shall contribute to the plan an amount equal to seven 14 | |
| 1147 | + | and one-half percent of the peace officer's or firefighter's compensation, and, except [. 15 | |
| 1148 | + | EXCEPT] as provided in (d) - (e) [(d)] of this section, beginning January 1, 1987, 16 | |
| 1149 | + | each other employee shall contribute to the plan an amount equal to six and three-17 | |
| 1150 | + | quarters percent of the employee's compensation. [THE CONTRIBUTIONS SHALL 18 | |
| 1151 | + | BE DEDUCTED BY THE EMPLOYER AT THE END OF EACH PAYROLL 19 | |
| 1152 | + | PERIOD. THE CONTRIBUTIONS SHALL BE DEDUCTED FROM EMPLOYEE 20 | |
| 1153 | + | COMPENSATION BEFORE COMPUTATION OF APPLICABLE FEDERAL 21 | |
| 1154 | + | TAXES, AND THE CONTRIBUTIONS SHALL BE TREATED AS EMPLOYER 22 | |
| 1155 | + | CONTRIBUTIONS UNDER 26 U.S.C. 414(h)(2). A MEMBER MAY NOT HAVE 23 | |
| 1156 | + | THE OPTION OF MAKING THE PAYROLL DEDUCTION DIRECTLY INSTEAD 24 | |
| 1157 | + | OF HAVING THE CONTRIBUTION PICKED UP BY THE EMPLOYER.] 25 | |
| 1158 | + | * Sec. 57. AS 39.35.160 is amended by adding new subsections to read: 26 | |
| 1159 | + | (e) An employee who first participates in the plan after June 30, 2006, shall 27 | |
| 1160 | + | contribute to the plan an amount equal to eight percent of the employee's 28 | |
| 1161 | + | compensation. The board may, from time to time, adjust the employee contribution 29 | |
| 1162 | + | under this subsection to an amount that, 30 | |
| 1163 | + | (1) if decreased, is not less than eight percent of the employee's 31 33-LS0505\D | |
| 1164 | + | SB0088B -35- CSSB 88(L&C) | |
| 894 | 1165 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 895 | 1166 | ||
| 896 | - | ||
| 897 | - | ( | |
| 898 | - | ||
| 899 | - | ||
| 900 | - | ||
| 901 | - | ||
| 902 | - | ||
| 903 | - | ||
| 904 | - | ||
| 905 | - | ||
| 906 | - | ||
| 907 | - | ||
| 908 | - | ||
| 909 | - | ||
| 910 | - | ||
| 911 | - | ||
| 912 | - | ||
| 913 | - | ||
| 914 | - | ||
| 915 | - | ||
| 916 | - | ||
| 917 | - | ||
| 918 | - | ( | |
| 919 | - | ||
| 920 | - | ||
| 921 | - | ||
| 922 | - | ||
| 923 | - | ||
| 924 | - | ||
| 925 | - | ||
| 926 | - | ||
| 927 | - | CSSB 88( | |
| 1167 | + | compensation; and 1 | |
| 1168 | + | (2) if increased, is not more than 12 percent of the employee's 2 | |
| 1169 | + | compensation. 3 | |
| 1170 | + | (f) Contributions under (a) and (e) of this section shall be deducted by the 4 | |
| 1171 | + | employer at the end of each payroll period. The contributions shall be deducted from 5 | |
| 1172 | + | employee compensation before computation of applicable federal taxes, and the 6 | |
| 1173 | + | contributions shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A 7 | |
| 1174 | + | member may not have the option of making the payroll deduction directly instead of 8 | |
| 1175 | + | having the contribution picked up by the employer. 9 | |
| 1176 | + | (g) The board may increase the employee contribution rate under (e) of this 10 | |
| 1177 | + | section if the board determines that the portion of the liability of the plan that is 11 | |
| 1178 | + | attributable to employees who first participate in the plan after June 30, 2006, is 12 | |
| 1179 | + | funded below 90 percent. Before increasing the member contribution rate under (e) of 13 | |
| 1180 | + | this section, the board shall determine an amount sufficient to address the plan's past 14 | |
| 1181 | + | service liability attributable to all members who first became members of the plan 15 | |
| 1182 | + | after June 30, 2006. An increase to the employee contribution rate may raise not more 16 | |
| 1183 | + | than 50 percent of the amount sufficient to address the plan's past service liability 17 | |
| 1184 | + | attributable to all members who first became members of the plan after June 30, 2006. 18 | |
| 1185 | + | The board may decrease the rate under (e) of this section if the board determines that 19 | |
| 1186 | + | the portion of the liability of the plan that is attributable to all members who first 20 | |
| 1187 | + | became members of the plan after June 30, 2006, is funded above 90 percent. 21 | |
| 1188 | + | * Sec. 58. AS 39.35.165(a) is amended to read: 22 | |
| 1189 | + | (a) An employee who is eligible to purchase credited service under 23 | |
| 1190 | + | AS 39.35.159, 39.35.310 [AS 39.35.310], 39.35.330, 39.35.340, 39.35.342, 39.35.345, 24 | |
| 1191 | + | 39.35.360, or 39.35.370, a member who is eligible to purchase credited service under 25 | |
| 1192 | + | AS 39.35.375, or an elected public official who is eligible to purchase credited service 26 | |
| 1193 | + | under AS 39.35.381 is an employee for purposes of this section. An employee may, in 27 | |
| 1194 | + | lieu of making payments directly to the plan, elect to have the employee's employer 28 | |
| 1195 | + | make payments as provided in this section. 29 | |
| 1196 | + | * Sec. 59. AS 39.35.165(b) is amended to read: 30 | |
| 1197 | + | (b) An employee may elect to have the employer make payments for all or any 31 33-LS0505\D | |
| 1198 | + | CSSB 88(L&C) -36- SB0088B | |
| 928 | 1199 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 929 | 1200 | ||
| 930 | - | ||
| 931 | - | ||
| 932 | - | ||
| 933 | - | ||
| 934 | - | ||
| 935 | - | ||
| 936 | - | ( | |
| 937 | - | ||
| 938 | - | ||
| 939 | - | ||
| 940 | - | ||
| 941 | - | ||
| 942 | - | ||
| 943 | - | ||
| 944 | - | ||
| 945 | - | ||
| 946 | - | ||
| 947 | - | ||
| 948 | - | ||
| 949 | - | ||
| 950 | - | ||
| 951 | - | ||
| 952 | - | ||
| 953 | - | ||
| 954 | - | ||
| 955 | - | ||
| 956 | - | ||
| 957 | - | ||
| 958 | - | ||
| 959 | - | ||
| 960 | - | (AS 39.35 | |
| 961 | - | ||
| 1201 | + | portion of the amounts payable for the employee's purchase of credited service 1 | |
| 1202 | + | through a salary reduction program as follows: 2 | |
| 1203 | + | (1) the amounts paid under a salary reduction program are in lieu of 3 | |
| 1204 | + | contributions by the employee making the election; the electing employee's salary or 4 | |
| 1205 | + | other compensation shall be reduced by the amount paid by the employer under this 5 | |
| 1206 | + | subsection; 6 | |
| 1207 | + | (2) the employee shall make an irrevocable election under this section 7 | |
| 1208 | + | to purchase credited service as permitted in AS 39.35.159, 39.35.310 [AS 39.35.310], 8 | |
| 1209 | + | 39.35.330, 39.35.340, 39.35.342, 39.35.345, 39.35.360, 39.35.370, 39.35.375, or 9 | |
| 1210 | + | 39.35.381 and before the employee's termination of employment; the irrevocable 10 | |
| 1211 | + | election must specify the number of payroll periods that deductions will be made from 11 | |
| 1212 | + | the employee's compensation and the dollar amount of deductions for each payroll 12 | |
| 1213 | + | period during the specified number of payroll periods; the deductions made under this 13 | |
| 1214 | + | paragraph cease upon the earlier of the member's termination of employment with the 14 | |
| 1215 | + | employer or the member's death; amounts paid by an employer under (f) of this 15 | |
| 1216 | + | section may not be applied toward the payment of the dollar amount of the deductions 16 | |
| 1217 | + | representing the portion of the credited service that is being purchased by the member 17 | |
| 1218 | + | through payroll deduction in accordance with the member's irrevocable election under 18 | |
| 1219 | + | this subsection; 19 | |
| 1220 | + | (3) amounts paid by an employer under this subsection shall be treated 20 | |
| 1221 | + | as employer contributions for the purpose of determining tax treatment under the 21 | |
| 1222 | + | Internal Revenue Code; the amounts paid by the employer under this section may not 22 | |
| 1223 | + | be included in the member's gross income for income tax purposes until those amounts 23 | |
| 1224 | + | are distributed by refund or retirement benefit payments. 24 | |
| 1225 | + | * Sec. 60. AS 39.35.165(g) is amended to read: 25 | |
| 1226 | + | (g) Payments made under this section shall be applied to reduce the 26 | |
| 1227 | + | employee's outstanding indebtedness described in AS 39.35.159, 39.35.310 27 | |
| 1228 | + | [AS 39.35.310], 39.35.330, 39.35.340, 39.35.342, 39.35.345, 39.35.360, 39.35.370, 28 | |
| 1229 | + | 39.35.375, or 39.35.381 at the time that the contributions are received by the plan. 29 | |
| 1230 | + | * Sec. 61. AS 39.35.165(i) is amended to read: 30 | |
| 1231 | + | (i) On satisfaction of the eligibility requirements of AS 39.35.159, 39.35.310 31 33-LS0505\D | |
| 1232 | + | SB0088B -37- CSSB 88(L&C) | |
| 962 | 1233 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 963 | 1234 | ||
| 964 | - | AS 39.35. | |
| 965 | - | ||
| 966 | - | ||
| 967 | - | ||
| 968 | - | * Sec. | |
| 969 | - | ||
| 970 | - | ||
| 971 | - | ||
| 972 | - | ||
| 973 | - | ||
| 974 | - | ||
| 975 | - | AS 39. | |
| 976 | - | ||
| 977 | - | ||
| 978 | - | ||
| 979 | - | ||
| 980 | - | ||
| 981 | - | ||
| 982 | - | ||
| 983 | - | ||
| 984 | - | ||
| 985 | - | amount | |
| 986 | - | ||
| 987 | - | ||
| 988 | - | ||
| 989 | - | ||
| 990 | - | ||
| 991 | - | ||
| 992 | - | ||
| 993 | - | ||
| 994 | - | ||
| 995 | - | CSSB 88( | |
| 1235 | + | [AS 39.35.310], 39.35.330, 39.35.340, 39.35.341, 39.35.345, 39.35.360, 39.35.370, 1 | |
| 1236 | + | 39.35.375, or 39.35.381, the requirements of this section, and the administrative filing 2 | |
| 1237 | + | requirements specified by the commissioner, the plan shall adjust the employee's 3 | |
| 1238 | + | credited service history and add any additional service credits acquired. 4 | |
| 1239 | + | * Sec. 62. AS 39.35.255(a) is amended to read: 5 | |
| 1240 | + | (a) Each employer, except as provided in (h) of this section, shall contribute to 6 | |
| 1241 | + | the system every payroll period the lesser of 7 | |
| 1242 | + | (1) an amount calculated by applying a rate of 22 percent of the greater 8 | |
| 1243 | + | of the total of all base salaries 9 | |
| 1244 | + | (A) [(1)] paid by the employer to employees who are active 10 | |
| 1245 | + | members of the system, including any adjustments to contributions required by 11 | |
| 1246 | + | AS 39.35.520; or 12 | |
| 1247 | + | (B) [(2)] paid by the employer to employees who were active 13 | |
| 1248 | + | members of the system during the corresponding payroll period for the fiscal 14 | |
| 1249 | + | year ending 15 | |
| 1250 | + | (i) [(A)] June 30, 2008; or 16 | |
| 1251 | + | (ii) [(B)] June 30, 2012, if that total is less than the total 17 | |
| 1252 | + | under (i) of this subparagraph [(A) OF THIS PARAGRAPH], and the 18 | |
| 1253 | + | employer is a municipality in which the population decreased by more 19 | |
| 1254 | + | than 25 percent between 2000 and 2010, according to the decennial 20 | |
| 1255 | + | census conducted by the United States Bureau of the Census; or 21 | |
| 1256 | + | (2) an amount calculated by applying a rate established by the 22 | |
| 1257 | + | board under AS 37.10.220 to the total of all base salaries paid by the employer to 23 | |
| 1258 | + | active members of the system; the rate must be at least 12 percent and be 24 | |
| 1259 | + | sufficient to pay the actuarially determined employer normal cost, all 25 | |
| 1260 | + | contributions required under AS 39.30.370 and AS 39.35.750, and past service 26 | |
| 1261 | + | cost for members of the system. 27 | |
| 1262 | + | * Sec. 63. AS 39.35.255 is amended by adding a new subsection to read: 28 | |
| 1263 | + | (j) If the legislature appropriates funds for the purpose of decreasing an 29 | |
| 1264 | + | employer's contribution, the employer's contribution under (a) of this section shall 30 | |
| 1265 | + | decrease by that amount. 31 33-LS0505\D | |
| 1266 | + | CSSB 88(L&C) -38- SB0088B | |
| 996 | 1267 | New Text Underlined [DELETED TEXT BRACKETED] | |
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| 1017 | - | * Sec. | |
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| 1028 | - | ||
| 1029 | - | ||
| 1269 | + | * Sec. 64. AS 39.35 is amended by adding a new section to read: 1 | |
| 1270 | + | Sec. 39.35.281. Contributions for employee who first became a member 2 | |
| 1271 | + | after June 30, 2006. Contributions made by an employer under AS 39.35.255 and 3 | |
| 1272 | + | 39.35.280 for an employee who first became a member after June 30, 2006, other than 4 | |
| 1273 | + | contributions separately computed for medical benefits under AS 14.25.087, and the 5 | |
| 1274 | + | employee's contribution account must be deposited in a sub-trust of the pension fund 6 | |
| 1275 | + | established by the board. 7 | |
| 1276 | + | * Sec. 65. AS 39.35.282 is amended to read: 8 | |
| 1277 | + | Sec. 39.35.282. Contributions for medical benefits. Contributions made by 9 | |
| 1278 | + | an employer under AS 39.35.255 and 39.35.280 must [SHALL] be separately 10 | |
| 1279 | + | computed for benefits provided by AS 39.35.535, 39.35.537, and AS 39.30.400. The 11 | |
| 1280 | + | contributions computed for benefits provided under 12 | |
| 1281 | + | (1) AS 39.35.535 must [AND SHALL] be deposited in the Alaska 13 | |
| 1282 | + | retiree health care trust established under AS 39.30.097(a); 14 | |
| 1283 | + | (2) AS 39.35.537 must be deposited in the Alaska retiree health 15 | |
| 1284 | + | care trust established under AS 39.30.097(b); and 16 | |
| 1285 | + | (3) AS 39.30.400 must be deposited in the teachers' and public 17 | |
| 1286 | + | employees' retiree health reimbursement arrangement plan trust fund 18 | |
| 1287 | + | established under AS 39.30.340. 19 | |
| 1288 | + | * Sec. 66. AS 39.35.340(i) is amended to read: 20 | |
| 1289 | + | (i) Notwithstanding (d) of this section, a member who retires as a peace officer 21 | |
| 1290 | + | or firefighter may elect to use five or fewer years of credited service granted under this 22 | |
| 1291 | + | section in computing years of credited service under AS 39.35.535(c) or 39.35.537. 23 | |
| 1292 | + | When eligibility for credited service for military service has been established and an 24 | |
| 1293 | + | election under this subsection has been made, an indebtedness in addition to the 25 | |
| 1294 | + | indebtedness determined under (b) of this section shall be determined for each year of 26 | |
| 1295 | + | military service used under this subsection, in an amount based on the increase, if any, 27 | |
| 1296 | + | in the present value of future benefits for that year as determined by the department. 28 | |
| 1297 | + | * Sec. 67. AS 39.35.345(d) is amended to read: 29 | |
| 1298 | + | (d) An employee may choose whether the credited service granted under this 30 | |
| 1299 | + | section is used to satisfy the credited service requirements for normal retirement under 31 33-LS0505\D | |
| 1300 | + | SB0088B -39- CSSB 88(L&C) | |
| 1030 | 1301 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1031 | 1302 | ||
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| 1051 | - | AS | |
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| 1061 | - | ||
| 1062 | - | ||
| 1063 | - | CSSB 88( | |
| 1303 | + | AS 39.35.370(a)(1)(B) or (C), 39.35.370(a)(2)(B), (C), or (D), [AS 39.35.370(a)(2) 1 | |
| 1304 | + | OR (3)] or 39.35.385(f) or is only used for the calculation of benefits. An election 2 | |
| 1305 | + | under this subsection is irrevocable and applies to all temporary credited service that 3 | |
| 1306 | + | the employee has accrued when the employee retires. An election under this 4 | |
| 1307 | + | subsection does not change the date that an employee is considered to have 5 | |
| 1308 | + | commenced participation in the plan under AS 39.35.120. 6 | |
| 1309 | + | * Sec. 68. AS 39.35.370(a) is amended to read: 7 | |
| 1310 | + | (a) Subject to AS 39.35.450, a terminated employee 8 | |
| 1311 | + | (1) who first became a member before July 1, 2006, is eligible for a 9 | |
| 1312 | + | normal retirement benefit 10 | |
| 1313 | + | (A) [(1)] at age 60 with at least five years of credited service; 11 | |
| 1314 | + | (B) [(2)] with at least 20 years of credited service as a peace 12 | |
| 1315 | + | officer or firefighter; or 13 | |
| 1316 | + | (C) [(3)] with at least 30 years of credited service; 14 | |
| 1317 | + | (2) who first became a member after June 30, 2006, is eligible for a 15 | |
| 1318 | + | normal retirement benefit 16 | |
| 1319 | + | (A) at age 60 with at least five years of credited service; 17 | |
| 1320 | + | (B) at age 55 with at least 20 years of credited service as a 18 | |
| 1321 | + | peace officer or firefighter; 19 | |
| 1322 | + | (C) at age 50 with at least 25 years of credited service as a 20 | |
| 1323 | + | peace officer or firefighter; or 21 | |
| 1324 | + | (D) with at least 30 years of credited service [FOR ALL 22 | |
| 1325 | + | OTHER EMPLOYEES]. 23 | |
| 1326 | + | * Sec. 69. AS 39.35.381(e) is amended to read: 24 | |
| 1327 | + | (e) A person who retires under this section is not entitled to disability or death 25 | |
| 1328 | + | benefits under AS 39.35.400 - 39.35.440, a minimum benefit under AS 39.35.485, or 26 | |
| 1329 | + | to medical benefits under AS 39.35.535 or 39.35.537. Service earned under this 27 | |
| 1330 | + | section may not be used for vesting under AS 39.35.095 - 39.35.680. 28 | |
| 1331 | + | * Sec. 70. AS 39.35.475(b) is amended to read: 29 | |
| 1332 | + | (b) Subject to (g) and (h) of this section, the [THE] increase in benefit 30 | |
| 1333 | + | payments applies to total benefit payments except for the cost-of-living allowance 31 33-LS0505\D | |
| 1334 | + | CSSB 88(L&C) -40- SB0088B | |
| 1064 | 1335 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1065 | 1336 | ||
| 1066 | - | AS 39.35. | |
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| 1087 | - | * Sec. | |
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| 1090 | - | ||
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| 1092 | - | ||
| 1093 | - | ||
| 1094 | - | ||
| 1095 | - | ||
| 1096 | - | ||
| 1097 | - | ||
| 1337 | + | under AS 39.35.480. The amount of the increase is a percentage of the current benefit 1 | |
| 1338 | + | equal to 2 | |
| 1339 | + | (1) the lesser of 75 percent of the increase in the cost of living in the 3 | |
| 1340 | + | preceding calendar year or nine percent, for recipients who on July 1 are at least 65 4 | |
| 1341 | + | years old and for members receiving disability benefits; and 5 | |
| 1342 | + | (2) the lesser of 50 percent of the increase in the cost of living in the 6 | |
| 1343 | + | preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 7 | |
| 1344 | + | less than 65 years old or for recipients who are less than 60 years old on July 1 but 8 | |
| 1345 | + | who have received benefits from the plan for at least five years. 9 | |
| 1346 | + | * Sec. 71. AS 39.35.475 is amended by adding new subsections to read: 10 | |
| 1347 | + | (g) Subject to (h) of this section, the amount of an increase for members who 11 | |
| 1348 | + | first became members of the plan after June 30, 2006, and do not meet the eligibility 12 | |
| 1349 | + | requirements for a permanent fund dividend in effect on July 1, 2024, under 13 | |
| 1350 | + | AS 43.23.005(a) is equal to one-half of the applicable percentage under (b) of this 14 | |
| 1351 | + | section. 15 | |
| 1352 | + | (h) If the board determines that the portion of the liability of the plan that is 16 | |
| 1353 | + | attributable to all members who first became members of the plan after June 30, 2006, 17 | |
| 1354 | + | is funded below 90 percent, the board may reduce the amount of the increase 18 | |
| 1355 | + | determined under (b) or (g) of this section that is payable to a member who first 19 | |
| 1356 | + | became a member after June 30, 2006. At any time, the board may terminate a 20 | |
| 1357 | + | reduction made under this subsection. 21 | |
| 1358 | + | * Sec. 72. AS 39.35.480(a) is amended to read: 22 | |
| 1359 | + | (a) While residing in the state, a person who first became a member of the 23 | |
| 1360 | + | plan before July 1, 2006, who is receiving a benefit under AS 39.35.095 - 39.35.680, 24 | |
| 1361 | + | and who is 65 years of age or older or a person who first became a member of the 25 | |
| 1362 | + | plan before July 1, 2006, and who is receiving a disability benefit is entitled to 26 | |
| 1363 | + | receive a monthly cost-of-living allowance in addition to the basic benefit. The 27 | |
| 1364 | + | amount of this allowance shall be $50 or 10 percent of the basic benefit, whichever is 28 | |
| 1365 | + | greater. 29 | |
| 1366 | + | * Sec. 73. AS 39.35.535(a) is amended to read: 30 | |
| 1367 | + | (a) Except as provided in (d) and (g) of this section, the following persons are 31 33-LS0505\D | |
| 1368 | + | SB0088B -41- CSSB 88(L&C) | |
| 1098 | 1369 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1099 | 1370 | ||
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| 1102 | - | ||
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| 1113 | - | the | |
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| 1130 | - | ||
| 1131 | - | CSSB 88( | |
| 1371 | + | entitled to major medical insurance coverage under this section: 1 | |
| 1372 | + | (1) for employees first hired before July 1, 1986, 2 | |
| 1373 | + | (A) an employee who is receiving a monthly benefit from the 3 | |
| 1374 | + | plan and who has elected coverage; 4 | |
| 1375 | + | (B) the spouse and dependent children of the employee 5 | |
| 1376 | + | described in (A) of this paragraph; 6 | |
| 1377 | + | (C) the surviving spouse of a deceased employee who is 7 | |
| 1378 | + | receiving a monthly benefit from the plan and who has elected coverage; 8 | |
| 1379 | + | (D) the dependent children of a deceased employee who are 9 | |
| 1380 | + | dependent on the surviving spouse described in (C) of this paragraph; 10 | |
| 1381 | + | (2) for members first hired [ON OR] after June 30 [JULY 1], 1986, 11 | |
| 1382 | + | (A) an employee who is receiving a monthly benefit from the 12 | |
| 1383 | + | plan and who has elected coverage for the employee; 13 | |
| 1384 | + | (B) the spouse of the employee described in (A) of this 14 | |
| 1385 | + | paragraph if the employee elected coverage for the spouse; 15 | |
| 1386 | + | (C) the dependent children of the employee described in (A) of 16 | |
| 1387 | + | this paragraph if the employee elected coverage for the dependent children; 17 | |
| 1388 | + | (D) the surviving spouse of a deceased employee who is 18 | |
| 1389 | + | receiving a monthly benefit from the plan and who has elected coverage; 19 | |
| 1390 | + | (E) the dependent children of a deceased employee who are 20 | |
| 1391 | + | dependent on the surviving spouse described in (D) of this paragraph if the 21 | |
| 1392 | + | surviving spouse has elected coverage for the dependent children. 22 | |
| 1393 | + | * Sec. 74. AS 39.35.535(c) is amended to read: 23 | |
| 1394 | + | (c) A benefit recipient who became a member before July 1, 2006, or the 24 | |
| 1395 | + | surviving spouse of the member may elect major medical insurance coverage in 25 | |
| 1396 | + | accordance with regulations and under the following conditions: 26 | |
| 1397 | + | (1) a person, other than a disabled member or a disabled member who 27 | |
| 1398 | + | is appointed to normal retirement, shall [MUST] pay an amount equal to the full 28 | |
| 1399 | + | monthly group premium for retiree major medical insurance coverage if the person is 29 | |
| 1400 | + | (A) younger than 60 years of age and has less than 30 | |
| 1401 | + | (i) 25 years of credited service as a peace officer under 31 33-LS0505\D | |
| 1402 | + | CSSB 88(L&C) -42- SB0088B | |
| 1132 | 1403 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1133 | 1404 | ||
| 1134 | - | eligible employee shall be enrolled as a member of the plan, and the employee's 1 | |
| 1135 | - | participation in the plan shall be governed by the applicable provisions of the plan. 2 | |
| 1136 | - | The employee's enrollment in the plan is retroactive to the date of hire. 3 | |
| 1137 | - | (d) When an eligible employee makes an election under this section, the 4 | |
| 1138 | - | administrator shall cause the total amount of the employee's employee and employer 5 | |
| 1139 | - | contributions to the plan under AS 39.35.700 - 39.35.990, with investment earnings 6 | |
| 1140 | - | and losses through the day of the employee's election to participate as a member in the 7 | |
| 1141 | - | plan under AS 39.35.095 - 39.35.680, to be actuarially calculated and, subject to (f) of 8 | |
| 1142 | - | this section, transferred to the pension fund in the plan under AS 39.35.095 - 9 | |
| 1143 | - | 39.35.680. On the effective date of the employee's participation in the plan under 10 | |
| 1144 | - | AS 39.35.095 - 39.35.680, the employee shall be credited with service in the plan. The 11 | |
| 1145 | - | board shall determine the cost of the employee's actual service time based on the 12 | |
| 1146 | - | employee's accrued actuarial liability of pension benefits in the plan, and credit the 13 | |
| 1147 | - | employee with service time equal to the value actuarially calculated and transferred to 14 | |
| 1148 | - | the pension fund in the plan under AS 39.35.095 - 39.35.680. The board shall adopt 15 | |
| 1149 | - | regulations establishing transfer procedures. The transfer may not occur later than 60 16 | |
| 1150 | - | days after the date the administrator receives the employee's election, unless the major 17 | |
| 1151 | - | financial markets for securities available for a transfer are seriously disrupted by an 18 | |
| 1152 | - | unforeseen event that also causes the suspension of trading on any national securities 19 | |
| 1153 | - | exchange in the country where the securities were issued. In that event, the 60-day 20 | |
| 1154 | - | period may be extended by a resolution of the board. A transfer is not commissionable 21 | |
| 1155 | - | or subject to other fees and may be in the form of cash or a security as determined by 22 | |
| 1156 | - | the board. A security shall be valued on the date of receipt in the employee's account. 23 | |
| 1157 | - | (e) When making a transfer under (d) of this section or a transfer for a 24 | |
| 1158 | - | reemployed employee subject to the plan under AS 39.35.095(b), the administrator 25 | |
| 1159 | - | shall transfer 26 | |
| 1160 | - | (1) an amount equal to the decrease in the accrued actuarial liability of 27 | |
| 1161 | - | the death and disability trust in the plan under AS 39.35.700 - 39.35.990 resulting 28 | |
| 1162 | - | from the transfer as of the date of transfer, based on the most recent actuarial valuation 29 | |
| 1163 | - | of the death and disability trust, from the death and disability trust in the plan under 30 | |
| 1164 | - | AS 39.35.700 - 39.35.990 to the pension fund in the plan under AS 39.35.095 - | |
| 1165 | - | 31 33-LS0505\T | |
| 1166 | - | SB0088C -35- CSSB 88(FIN) | |
| 1405 | + | AS 39.35.360 and 39.35.370; or 1 | |
| 1406 | + | (ii) 30 years of credited service under AS 39.35.360 and 2 | |
| 1407 | + | 39.35.370 that is not service as a peace officer; or 3 | |
| 1408 | + | (B) of any age and has less than 10 years of credited service; 4 | |
| 1409 | + | (2) a person is not required to make premium payments for retiree 5 | |
| 1410 | + | major medical coverage if the person 6 | |
| 1411 | + | (A) is a disabled member; 7 | |
| 1412 | + | (B) is a disabled member who is appointed to normal 8 | |
| 1413 | + | retirement; 9 | |
| 1414 | + | (C) is 60 years of age or older and has at least 10 years of 10 | |
| 1415 | + | credited service; or 11 | |
| 1416 | + | (D) has at least 12 | |
| 1417 | + | (i) 25 years of credited service as a peace officer under 13 | |
| 1418 | + | AS 39.35.360 and 39.35.370; or 14 | |
| 1419 | + | (ii) 30 years of credited service under AS 39.35.360 and 15 | |
| 1420 | + | 39.35.370 not as a peace officer. 16 | |
| 1421 | + | * Sec. 75. AS 39.35.535 is amended by adding a new subsection to read: 17 | |
| 1422 | + | (g) A benefit recipient who first became a member after June 30, 2006, or a 18 | |
| 1423 | + | surviving spouse who is eligible under AS 39.35.537(b), is not eligible for benefits 19 | |
| 1424 | + | under this section but may elect medical benefits under AS 39.35.537. 20 | |
| 1425 | + | * Sec. 76. AS 39.35 is amended by adding a new section to read: 21 | |
| 1426 | + | Sec. 39.35.537. Medical benefit; eligibility of employees first hired after 22 | |
| 1427 | + | June 30, 2006; surviving spouses and dependents. (a) An employee who first 23 | |
| 1428 | + | became a member of the plan after June 30, 2006, receives a monthly benefit from the 24 | |
| 1429 | + | plan, retired directly from the plan, and has elected benefits under this section is 25 | |
| 1430 | + | entitled to medical benefits under this section. A member who applies for medical 26 | |
| 1431 | + | benefits under this section shall apply on the forms and in the manner prescribed by 27 | |
| 1432 | + | the administrator. A member is eligible to retire from the plan if the member has been 28 | |
| 1433 | + | an active member for at least 12 months before application for retirement and the 29 | |
| 1434 | + | member 30 | |
| 1435 | + | (1) is at least 31 33-LS0505\D | |
| 1436 | + | SB0088B -43- CSSB 88(L&C) | |
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| 1198 | - | ||
| 1199 | - | ||
| 1200 | - | CSSB 88( | |
| 1439 | + | (A) 50 years of age and has at least 25 years of membership 1 | |
| 1440 | + | service as a peace officer or firefighter; 2 | |
| 1441 | + | (B) 55 years of age and has at least 20 years of membership 3 | |
| 1442 | + | service as a peace officer or firefighter; 4 | |
| 1443 | + | (2) has at least 30 years of membership; or 5 | |
| 1444 | + | (3) reaches the age set for Medicare eligibility and has at least 10 years 6 | |
| 1445 | + | of membership service. 7 | |
| 1446 | + | (b) The member's surviving spouse is eligible to elect medical benefits if the 8 | |
| 1447 | + | member had retired or was eligible for retirement and medical benefits at the time of 9 | |
| 1448 | + | the member's death. 10 | |
| 1449 | + | (c) The medical benefits available to eligible persons are access to the retiree 11 | |
| 1450 | + | major medical insurance plan and access to the health reimbursement arrangement 12 | |
| 1451 | + | plan under AS 39.30.300. Access to the retiree major medical insurance plan means 13 | |
| 1452 | + | that an eligible person may not be denied insurance coverage except for failure to pay 14 | |
| 1453 | + | the required premium. 15 | |
| 1454 | + | (d) Retiree major medical insurance plan coverage elected by an eligible 16 | |
| 1455 | + | member under this section covers the eligible member, the spouse of the eligible 17 | |
| 1456 | + | member, and the dependent children of the eligible member. 18 | |
| 1457 | + | (e) Retiree major medical insurance plan coverage elected by a surviving 19 | |
| 1458 | + | spouse of an eligible member under this section covers the surviving spouse and the 20 | |
| 1459 | + | dependent children of the eligible member who are dependent on the surviving spouse. 21 | |
| 1460 | + | (f) Participation in the retiree major medical insurance plan is not required in 22 | |
| 1461 | + | order to participate in the health reimbursement arrangement plan. 23 | |
| 1462 | + | (g) A person eligible for medical benefits under this section is not required to 24 | |
| 1463 | + | participate in the health reimbursement arrangement plan in order to participate in the 25 | |
| 1464 | + | retiree major medical insurance plan. 26 | |
| 1465 | + | (h) A person who is eligible for medical benefits under this section must make 27 | |
| 1466 | + | the irrevocable election to participate or not participate in the retiree major medical 28 | |
| 1467 | + | insurance plan on or before the date the person reaches 70 1/2 years of age or when the 29 | |
| 1468 | + | person applies for retirement and medical benefits, whichever is later. 30 | |
| 1469 | + | (i) Major medical insurance coverage takes effect on the first day of the month 31 33-LS0505\D | |
| 1470 | + | CSSB 88(L&C) -44- SB0088B | |
| 1201 | 1471 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1202 | 1472 | ||
| 1203 | - | ||
| 1204 | - | ||
| 1205 | - | ||
| 1206 | - | ||
| 1207 | - | the | |
| 1208 | - | ||
| 1209 | - | ( | |
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| 1221 | - | OF | |
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| 1227 | - | ||
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| 1232 | - | ||
| 1233 | - | ||
| 1234 | - | ||
| 1473 | + | following the date of the administrator's approval of the election and stops when the 1 | |
| 1474 | + | person who elects coverage dies or fails to make a required premium payment. 2 | |
| 1475 | + | (j) The coverage for persons 65 years of age or older is the same as that 3 | |
| 1476 | + | available for persons under 65 years of age. The benefits payable to those persons 65 4 | |
| 1477 | + | years of age or older supplement any benefits provided under the federal old age, 5 | |
| 1478 | + | survivors, and disability insurance program. 6 | |
| 1479 | + | (k) The medical and optional insurance premiums owed by the person who 7 | |
| 1480 | + | elects coverage may be deducted from the health reimbursement arrangement plan. If 8 | |
| 1481 | + | the amount of the health reimbursement arrangement plan becomes insufficient to pay 9 | |
| 1482 | + | the premiums, the person who elects coverage under (a) of this section shall pay the 10 | |
| 1483 | + | premiums directly. 11 | |
| 1484 | + | (l) The cost of premiums for retiree major medical insurance coverage under 12 | |
| 1485 | + | this section for an eligible member or surviving spouse who is 13 | |
| 1486 | + | (1) not eligible for Medicare is an amount equal to the full monthly 14 | |
| 1487 | + | group premiums for retiree major medical insurance coverage; 15 | |
| 1488 | + | (2) eligible for Medicare is the following percentage of the premium 16 | |
| 1489 | + | amounts established for retirees who are eligible for Medicare: 17 | |
| 1490 | + | (A) 30 percent if the member had 10 or more, but less than 15, 18 | |
| 1491 | + | years of service; 19 | |
| 1492 | + | (B) 25 percent if the member had 15 or more, but less than 20, 20 | |
| 1493 | + | years of service; 21 | |
| 1494 | + | (C) 20 percent if the member had 20 or more, but less than 25, 22 | |
| 1495 | + | years of service; 23 | |
| 1496 | + | (D) 15 percent if the member had 25 or more, but less than 30, 24 | |
| 1497 | + | years of service; 25 | |
| 1498 | + | (E) 10 percent if the member had 30 or more years of service. 26 | |
| 1499 | + | (m) The eligibility for retiree major medical insurance coverage for an 27 | |
| 1500 | + | alternate payee under a qualified domestic relations order shall be determined based 28 | |
| 1501 | + | on the eligibility of the member to elect coverage. The alternate payee shall pay the 29 | |
| 1502 | + | full monthly premium for retiree major medical insurance coverage. 30 | |
| 1503 | + | (n) The administrator shall 31 33-LS0505\D | |
| 1504 | + | SB0088B -45- CSSB 88(L&C) | |
| 1235 | 1505 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1236 | 1506 | ||
| 1237 | - | ||
| 1238 | - | ||
| 1239 | - | ||
| 1240 | - | ||
| 1241 | - | ||
| 1242 | - | ||
| 1243 | - | ||
| 1244 | - | ||
| 1245 | - | ||
| 1246 | - | under | |
| 1247 | - | ||
| 1248 | - | ||
| 1249 | - | ||
| 1250 | - | ||
| 1251 | - | ||
| 1252 | - | ||
| 1253 | - | ||
| 1254 | - | ||
| 1255 | - | ||
| 1256 | - | ||
| 1257 | - | ||
| 1258 | - | ||
| 1259 | - | ||
| 1260 | - | ( | |
| 1261 | - | ||
| 1262 | - | ||
| 1263 | - | ||
| 1264 | - | ||
| 1265 | - | ||
| 1266 | - | ||
| 1267 | - | ||
| 1268 | - | CSSB 88( | |
| 1507 | + | (1) inform a person entitled to retiree major medical insurance 1 | |
| 1508 | + | coverage under this section in writing 2 | |
| 1509 | + | (A) that the health insurance coverage available to retired 3 | |
| 1510 | + | members may be different from the health insurance coverage provided to 4 | |
| 1511 | + | employees; 5 | |
| 1512 | + | (B) of time limits for selecting optional health insurance 6 | |
| 1513 | + | coverage; and 7 | |
| 1514 | + | (C) whether the election is irrevocable; and 8 | |
| 1515 | + | (2) require that a person entitled to retiree major medical insurance 9 | |
| 1516 | + | coverage under this section indicate in writing on a form provided by the administrator 10 | |
| 1517 | + | whether the person has chosen to receive optional health insurance coverage. 11 | |
| 1518 | + | (o) The monthly group premiums for retiree major medical insurance coverage 12 | |
| 1519 | + | under this section are established by the administrator in accordance with 13 | |
| 1520 | + | AS 39.30.095. Nothing in this chapter guarantees a person who elects coverage under 14 | |
| 1521 | + | (a) of this section a monthly group premium rate for retiree major medical insurance 15 | |
| 1522 | + | coverage other than the premium in effect for the month in which the premium is due 16 | |
| 1523 | + | for coverage for that month. 17 | |
| 1524 | + | (p) In this section, "health reimbursement arrangement plan" means the State 18 | |
| 1525 | + | of Alaska Teachers' and Public Employees' Retiree Health Reimbursement 19 | |
| 1526 | + | Arrangement Plan established in AS 39.30.300. 20 | |
| 1527 | + | * Sec. 77. AS 39.35.610(a) is amended to read: 21 | |
| 1528 | + | (a) The contributions of an employer and the contributions of its employees 22 | |
| 1529 | + | shall be transmitted to the administrator as soon as practicable after the close of the 23 | |
| 1530 | + | payroll period for which the contributions are made. Subject to (c) of this section, if an 24 | |
| 1531 | + | employer is delinquent in transferring the contributions for more than 15 days, interest 25 | |
| 1532 | + | shall be assessed on the outstanding contributions at [ONE AND ONE-HALF TIMES] 26 | |
| 1533 | + | the most recent actuarially determined rate of earnings for the retirement plan from the 27 | |
| 1534 | + | date that the contributions were originally due. 28 | |
| 1535 | + | * Sec. 78. AS 39.35.680(4) is amended to read: 29 | |
| 1536 | + | (4) "average monthly compensation" means the result obtained by 30 | |
| 1537 | + | dividing the compensation earned by an employee during a considered period by the 31 33-LS0505\D | |
| 1538 | + | CSSB 88(L&C) -46- SB0088B | |
| 1269 | 1539 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1270 | 1540 | ||
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| 1272 | - | ||
| 1273 | - | ||
| 1274 | - | ||
| 1275 | - | ||
| 1276 | - | ||
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| 1278 | - | ||
| 1279 | - | ||
| 1280 | - | ||
| 1281 | - | ||
| 1282 | - | this | |
| 1283 | - | ||
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| 1288 | - | ||
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| 1295 | - | [ | |
| 1296 | - | ||
| 1297 | - | ||
| 1298 | - | ||
| 1299 | - | ||
| 1300 | - | ||
| 1301 | - | ||
| 1302 | - | ||
| 1541 | + | number of months, including fractional months, for which compensation was earned; 1 | |
| 1542 | + | an employee must have at least 115 days of credited service in the last payroll year in 2 | |
| 1543 | + | order for that year to be used as part of the consecutive payroll years; the considered 3 | |
| 1544 | + | period consists of 4 | |
| 1545 | + | (A) for employees first hired before July 1, 1996, the three 5 | |
| 1546 | + | consecutive payroll years during the period of credited service that yield the 6 | |
| 1547 | + | highest average; 7 | |
| 1548 | + | (B) for employees first hired [ON OR] after June 30 [JULY 1], 8 | |
| 1549 | + | 1996, the five consecutive payroll years during the period of credited service 9 | |
| 1550 | + | that yield the highest average; 10 | |
| 1551 | + | (C) if the employee does not have the number of consecutive 11 | |
| 1552 | + | payroll years required by (A) or (B) of this paragraph, the actual number of 12 | |
| 1553 | + | months, including fractional months, that the employee worked; 13 | |
| 1554 | + | (D) for an employee who has made an election under 14 | |
| 1555 | + | AS 39.35.300(c) or 39.35.310(c), the actual number of months, including 15 | |
| 1556 | + | fractional months, that the employee worked; 16 | |
| 1557 | + | (E) for a peace officer or firefighter hired before July 1, 2006 17 | |
| 1558 | + | [AT ANY TIME], the three consecutive payroll years during the period of 18 | |
| 1559 | + | credited service that yield the highest average; 19 | |
| 1560 | + | * Sec. 79. AS 39.35.680(18) is amended to read: 20 | |
| 1561 | + | (18) "employer" means 21 | |
| 1562 | + | (A) the State of Alaska; 22 | |
| 1563 | + | (B) a political subdivision or public organization of the state 23 | |
| 1564 | + | that participates in the plan based on a resolution to participate in the plan that 24 | |
| 1565 | + | was approved by the administrator [ON OR BEFORE JULY 1, 2006]; or 25 | |
| 1566 | + | (C) a political subdivision or public organization of the state 26 | |
| 1567 | + | that, as a result of consolidation or reorganization [THAT OCCURS ON OR 27 | |
| 1568 | + | AFTER JULY 1, 2006], assumes liability under the plan of a political 28 | |
| 1569 | + | subdivision or public organization described in (B) of this paragraph; 29 | |
| 1570 | + | * Sec. 80. AS 39.35.680 is amended by adding a new paragraph to read: 30 | |
| 1571 | + | (44) "first became a member after June 30, 2006," includes a member 31 33-LS0505\D | |
| 1572 | + | SB0088B -47- CSSB 88(L&C) | |
| 1303 | 1573 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1304 | 1574 | ||
| 1305 | - | ||
| 1306 | - | ||
| 1307 | - | ||
| 1308 | - | ||
| 1309 | - | AS 39.35. | |
| 1310 | - | ||
| 1311 | - | members | |
| 1312 | - | ||
| 1313 | - | ||
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| 1315 | - | ||
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| 1318 | - | ||
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| 1321 | - | ||
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| 1324 | - | ||
| 1325 | - | * Sec. | |
| 1326 | - | ||
| 1327 | - | ||
| 1328 | - | ||
| 1329 | - | ||
| 1330 | - | ||
| 1331 | - | ||
| 1332 | - | ||
| 1333 | - | the | |
| 1334 | - | ||
| 1335 | - | ||
| 1336 | - | CSSB 88( | |
| 1575 | + | who elected under former AS 39.35.940 to participate in the plan under AS 39.35.700 1 | |
| 1576 | + | - 39.35.990 and who elects to participate in the defined benefit retirement plan under 2 | |
| 1577 | + | AS 39.35.095 - 39.35.680. 3 | |
| 1578 | + | * Sec. 81. AS 39.35.700 is amended to read: 4 | |
| 1579 | + | Sec. 39.35.700. Applicability of AS 39.35.700 - 39.35.990. The provisions of 5 | |
| 1580 | + | AS 39.35.700 - 39.35.990 apply only to 6 | |
| 1581 | + | (1) members first hired [ON OR] after June 30, 2006, and before 7 | |
| 1582 | + | July 1, 2024, who do not participate in a defined benefit retirement plan under 8 | |
| 1583 | + | AS 14.25.009 - 14.25.220 or AS 39.35.095 - 39.35.680; and 9 | |
| 1584 | + | (2) [JULY 1, 2006, TO] members [WHO ARE EMPLOYED BY 10 | |
| 1585 | + | EMPLOYERS THAT DO NOT PARTICIPATE IN THE DEFINED BENEFIT 11 | |
| 1586 | + | RETIREMENT PLAN ESTABLISHED UNDER AS 39.35.095 - 39.35.680, TO 12 | |
| 1587 | + | FORMER MEMBERS AS DEFINED IN AS 39.35.680, OR TO MEMBERS] who 13 | |
| 1588 | + | transferred [TRANSFER] into the defined contribution retirement plan under former 14 | |
| 1589 | + | AS 39.35.940 and do not elect to participate in the defined benefit retirement plan 15 | |
| 1590 | + | under AS 39.35.095 - 39.35.680. 16 | |
| 1591 | + | * Sec. 82. AS 39.35.700 is amended by adding a new subsection to read: 17 | |
| 1592 | + | (b) A public organization as defined in AS 39.35.680 or a municipality or 18 | |
| 1593 | + | other political subdivision of the state that participates in the plan shall also participate 19 | |
| 1594 | + | in the defined benefit retirement plan under AS 39.35.095 - 39.35.680. 20 | |
| 1595 | + | * Sec. 83. AS 39.35.720 is amended to read: 21 | |
| 1596 | + | Sec. 39.35.720. Membership. An employee who becomes a member [ON OR] 22 | |
| 1597 | + | after June 30, 2006, and before July 1, 2024, who does not participate in a defined 23 | |
| 1598 | + | benefit retirement plan under AS 14.25.009 - 14.25.220 or AS 39.35.095 - 24 | |
| 1599 | + | 39.35.680 [JULY 1, 2006,] shall participate in the plan set out in AS 39.35.700 - 25 | |
| 1600 | + | 39.35.990. 26 | |
| 1601 | + | * Sec. 84. AS 39.35.895(a) is amended to read: 27 | |
| 1602 | + | (a) Subject to art. XII, sec. 7, Constitution of the State of Alaska, the 28 | |
| 1603 | + | [THE] state may [HAS THE RIGHT TO] amend the plan at any time and from time to 29 | |
| 1604 | + | time, in whole or in part, including the right to make retroactive amendments referred 30 | |
| 1605 | + | to in 26 U.S.C. 401(b). 31 33-LS0505\D | |
| 1606 | + | CSSB 88(L&C) -48- SB0088B | |
| 1337 | 1607 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1338 | 1608 | ||
| 1339 | - | ||
| 1340 | - | ||
| 1341 | - | ||
| 1342 | - | ||
| 1343 | - | ||
| 1344 | - | ||
| 1345 | - | ||
| 1346 | - | Sec. 39.35. | |
| 1347 | - | ||
| 1348 | - | ||
| 1349 | - | ||
| 1350 | - | ||
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| 1361 | - | ( | |
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| 1363 | - | ||
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| 1365 | - | ||
| 1366 | - | ||
| 1367 | - | ||
| 1368 | - | ||
| 1369 | - | ||
| 1370 | - | ||
| 1609 | + | * Sec. 85. AS 39.35.895(b) is amended to read: 1 | |
| 1610 | + | (b) The plan administrator may not modify or amend the plan retroactively [IN 2 | |
| 1611 | + | SUCH A MANNER AS] to reduce [THE] benefits accrued by a [OF ANY] member 3 | |
| 1612 | + | [ACCRUED TO DATE UNDER THE PLAN BY REASON OF CONTRIBUTIONS 4 | |
| 1613 | + | MADE] before the modification or amendment except to the extent that the reduction 5 | |
| 1614 | + | is permitted by art. XII, sec. 7, Constitution of the State of Alaska, and the Internal 6 | |
| 1615 | + | Revenue Code. 7 | |
| 1616 | + | * Sec. 86. AS 39.35.895(c) is amended to read: 8 | |
| 1617 | + | (c) Subject to art. XII, sec. 7, Constitution of the State of Alaska, and the 9 | |
| 1618 | + | Internal Revenue Code, the [THE] state may [, IN ITS DISCRETION,] terminate the 10 | |
| 1619 | + | plan in whole or part [AT ANY TIME] without liability for the termination. If the plan 11 | |
| 1620 | + | is terminated, all investments at the time of termination remain in force until all 12 | |
| 1621 | + | individual accounts have been completely distributed under the plan. After [, AND, 13 | |
| 1622 | + | AFTER] all plan liabilities are satisfied, excess assets of the plan revert to the 14 | |
| 1623 | + | employer. 15 | |
| 1624 | + | * Sec. 87. AS 39.35.895(d) is repealed and reenacted to read: 16 | |
| 1625 | + | (d) Within one year after determining that a contribution to the plan by an 17 | |
| 1626 | + | employer was the result of a mistake of fact, the administrator shall return the 18 | |
| 1627 | + | contribution to the employer. 19 | |
| 1628 | + | * Sec. 88. AS 14.25.012(c), 14.25.061, 14.25.540; and AS 39.35.940 are repealed. 20 | |
| 1629 | + | * Sec. 89. The uncodified law of the State of Alaska is amended by adding a new section to 21 | |
| 1630 | + | read: 22 | |
| 1631 | + | TRANSITION: RETIREMENT PLAN ELECTION. (a) A teacher who was first hired 23 | |
| 1632 | + | after June 30, 2006, and before July 1, 2024, and who, on July 1, 2024, is a member of the 24 | |
| 1633 | + | defined contribution retirement plan of the teachers' retirement system may, before 25 | |
| 1634 | + | November 1, 2024, make a one-time election to participate in the defined benefit retirement 26 | |
| 1635 | + | plan and to transfer all contributions that have been made or should be made to the defined 27 | |
| 1636 | + | contribution retirement plan for service the member completes before the effective date of the 28 | |
| 1637 | + | member's participation in the defined benefit retirement plan. The transferred contributions 29 | |
| 1638 | + | shall be used to purchase credited service in the defined benefit retirement plan on an actuarial 30 | |
| 1639 | + | equivalent basis determined by the Alaska Retirement Management Board established under 31 33-LS0505\D | |
| 1640 | + | SB0088B -49- CSSB 88(L&C) | |
| 1371 | 1641 | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1372 | 1642 | ||
| 1373 | - | (a) Subject to AS 39.35.450, a terminated employee 1 | |
| 1374 | - | (1) who first became a member before July 1, 2006, is eligible for a 2 | |
| 1375 | - | normal retirement benefit 3 | |
| 1376 | - | (A) [(1)] at age 60 with at least five years of credited service; 4 | |
| 1377 | - | (B) [(2)] with at least 20 years of credited service as a peace 5 | |
| 1378 | - | officer or firefighter; or 6 | |
| 1379 | - | (C) [(3)] with at least 30 years of credited service; 7 | |
| 1380 | - | (2) who first became a member after June 30, 2006, is eligible for a 8 | |
| 1381 | - | normal retirement benefit 9 | |
| 1382 | - | (A) at age 60 with at least five years of credited service; 10 | |
| 1383 | - | (B) at age 55 with at least 20 years of credited service as a 11 | |
| 1384 | - | peace officer or firefighter; 12 | |
| 1385 | - | (C) at age 50 with at least 25 years of credited service as a 13 | |
| 1386 | - | peace officer or firefighter; or 14 | |
| 1387 | - | (D) with at least 30 years of credited service [FOR ALL 15 | |
| 1388 | - | OTHER EMPLOYEES]. 16 | |
| 1389 | - | * Sec. 72. AS 39.35.381(e) is amended to read: 17 | |
| 1390 | - | (e) A person who retires under this section is not entitled to disability or death 18 | |
| 1391 | - | benefits under AS 39.35.400 - 39.35.440, a minimum benefit under AS 39.35.485, or 19 | |
| 1392 | - | to medical benefits under AS 39.35.535 or 39.35.537. Service earned under this 20 | |
| 1393 | - | section may not be used for vesting under AS 39.35.095 - 39.35.680. 21 | |
| 1394 | - | * Sec. 73. AS 39.35.475(b) is amended to read: 22 | |
| 1395 | - | (b) Subject to (g) and (h) of this section, the [THE] increase in benefit 23 | |
| 1396 | - | payments applies to total benefit payments except for the cost-of-living allowance 24 | |
| 1397 | - | under AS 39.35.480. The amount of the increase is a percentage of the current benefit 25 | |
| 1398 | - | equal to 26 | |
| 1399 | - | (1) the lesser of 75 percent of the increase in the cost of living in the 27 | |
| 1400 | - | preceding calendar year or nine percent, for recipients who on July 1 are at least 65 28 | |
| 1401 | - | years old and for members receiving disability benefits; and 29 | |
| 1402 | - | (2) the lesser of 50 percent of the increase in the cost of living in the 30 | |
| 1403 | - | preceding calendar year or six percent, for recipients who on July 1 are at least 60 but 31 33-LS0505\T | |
| 1404 | - | CSSB 88(FIN) -42- SB0088C | |
| 1405 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1406 | - | ||
| 1407 | - | less than 65 years old or for recipients who are less than 60 years old on July 1 but 1 | |
| 1408 | - | who have received benefits from the plan for at least five years. 2 | |
| 1409 | - | * Sec. 74. AS 39.35.475 is amended by adding new subsections to read: 3 | |
| 1410 | - | (g) Subject to (h) of this section, the amount of an increase for members who 4 | |
| 1411 | - | first became members of the plan after June 30, 2006, and do not meet the eligibility 5 | |
| 1412 | - | requirements for a permanent fund dividend in effect on July 1, 2024, under 6 | |
| 1413 | - | AS 43.23.005(a) is equal to one-half of the applicable percentage under (b) of this 7 | |
| 1414 | - | section. 8 | |
| 1415 | - | (h) If the board determines that the portion of the liability of the plan that is 9 | |
| 1416 | - | attributable to all members who first became members of the plan after June 30, 2006, 10 | |
| 1417 | - | is funded below 90 percent, the board may reduce the amount of the increase 11 | |
| 1418 | - | determined under (b) or (g) of this section that is payable to a member who first 12 | |
| 1419 | - | became a member after June 30, 2006. At any time, the board may terminate a 13 | |
| 1420 | - | reduction made under this subsection. 14 | |
| 1421 | - | * Sec. 75. AS 39.35.480(a) is amended to read: 15 | |
| 1422 | - | (a) While residing in the state, a person who first became a member of the 16 | |
| 1423 | - | plan before July 1, 2006, who is receiving a benefit under AS 39.35.095 - 39.35.680, 17 | |
| 1424 | - | and who is 65 years of age or older or a person who first became a member of the 18 | |
| 1425 | - | plan before July 1, 2006, and who is receiving a disability benefit is entitled to 19 | |
| 1426 | - | receive a monthly cost-of-living allowance in addition to the basic benefit. The 20 | |
| 1427 | - | amount of this allowance shall be $50 or 10 percent of the basic benefit, whichever is 21 | |
| 1428 | - | greater. 22 | |
| 1429 | - | * Sec. 76. AS 39.35.535(a) is amended to read: 23 | |
| 1430 | - | (a) Except as provided in (d) and (g) of this section, the following persons are 24 | |
| 1431 | - | entitled to major medical insurance coverage under this section: 25 | |
| 1432 | - | (1) for employees first hired before July 1, 1986, 26 | |
| 1433 | - | (A) an employee who is receiving a monthly benefit from the 27 | |
| 1434 | - | plan and who has elected coverage; 28 | |
| 1435 | - | (B) the spouse and dependent children of the employee 29 | |
| 1436 | - | described in (A) of this paragraph; 30 | |
| 1437 | - | (C) the surviving spouse of a deceased employee who is 31 33-LS0505\T | |
| 1438 | - | SB0088C -43- CSSB 88(FIN) | |
| 1439 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1440 | - | ||
| 1441 | - | receiving a monthly benefit from the plan and who has elected coverage; 1 | |
| 1442 | - | (D) the dependent children of a deceased employee who are 2 | |
| 1443 | - | dependent on the surviving spouse described in (C) of this paragraph; 3 | |
| 1444 | - | (2) for members first hired [ON OR] after June 30 [JULY 1], 1986, 4 | |
| 1445 | - | (A) an employee who is receiving a monthly benefit from the 5 | |
| 1446 | - | plan and who has elected coverage for the employee; 6 | |
| 1447 | - | (B) the spouse of the employee described in (A) of this 7 | |
| 1448 | - | paragraph if the employee elected coverage for the spouse; 8 | |
| 1449 | - | (C) the dependent children of the employee described in (A) of 9 | |
| 1450 | - | this paragraph if the employee elected coverage for the dependent children; 10 | |
| 1451 | - | (D) the surviving spouse of a deceased employee who is 11 | |
| 1452 | - | receiving a monthly benefit from the plan and who has elected coverage; 12 | |
| 1453 | - | (E) the dependent children of a deceased employee who are 13 | |
| 1454 | - | dependent on the surviving spouse described in (D) of this paragraph if the 14 | |
| 1455 | - | surviving spouse has elected coverage for the dependent children. 15 | |
| 1456 | - | * Sec. 77. AS 39.35.535(c) is amended to read: 16 | |
| 1457 | - | (c) A benefit recipient who became a member before July 1, 2006, or the 17 | |
| 1458 | - | surviving spouse of the member may elect major medical insurance coverage in 18 | |
| 1459 | - | accordance with regulations and under the following conditions: 19 | |
| 1460 | - | (1) a person, other than a disabled member or a disabled member who 20 | |
| 1461 | - | is appointed to normal retirement, shall [MUST] pay an amount equal to the full 21 | |
| 1462 | - | monthly group premium for retiree major medical insurance coverage if the person is 22 | |
| 1463 | - | (A) younger than 60 years of age and has less than 23 | |
| 1464 | - | (i) 25 years of credited service as a peace officer under 24 | |
| 1465 | - | AS 39.35.360 and 39.35.370; or 25 | |
| 1466 | - | (ii) 30 years of credited service under AS 39.35.360 and 26 | |
| 1467 | - | 39.35.370 that is not service as a peace officer; or 27 | |
| 1468 | - | (B) of any age and has less than 10 years of credited service; 28 | |
| 1469 | - | (2) a person is not required to make premium payments for retiree 29 | |
| 1470 | - | major medical coverage if the person 30 | |
| 1471 | - | (A) is a disabled member; 31 33-LS0505\T | |
| 1472 | - | CSSB 88(FIN) -44- SB0088C | |
| 1473 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1474 | - | ||
| 1475 | - | (B) is a disabled member who is appointed to normal 1 | |
| 1476 | - | retirement; 2 | |
| 1477 | - | (C) is 60 years of age or older and has at least 10 years of 3 | |
| 1478 | - | credited service; or 4 | |
| 1479 | - | (D) has at least 5 | |
| 1480 | - | (i) 25 years of credited service as a peace officer under 6 | |
| 1481 | - | AS 39.35.360 and 39.35.370; or 7 | |
| 1482 | - | (ii) 30 years of credited service under AS 39.35.360 and 8 | |
| 1483 | - | 39.35.370 not as a peace officer. 9 | |
| 1484 | - | * Sec. 78. AS 39.35.535 is amended by adding a new subsection to read: 10 | |
| 1485 | - | (g) A benefit recipient who first became a member after June 30, 2006, or a 11 | |
| 1486 | - | surviving spouse who is eligible under AS 39.35.537(b), is not eligible for benefits 12 | |
| 1487 | - | under this section but may elect medical benefits under AS 39.35.537. 13 | |
| 1488 | - | * Sec. 79. AS 39.35 is amended by adding a new section to read: 14 | |
| 1489 | - | Sec. 39.35.537. Medical benefit; eligibility of employees first hired after 15 | |
| 1490 | - | June 30, 2006; surviving spouses and dependents. (a) An employee who first 16 | |
| 1491 | - | became a member of the plan after June 30, 2006, receives a monthly benefit from the 17 | |
| 1492 | - | plan, retired directly from the plan, and has elected benefits under this section is 18 | |
| 1493 | - | entitled to medical benefits under this section. A member who applies for medical 19 | |
| 1494 | - | benefits under this section shall apply on the forms and in the manner prescribed by 20 | |
| 1495 | - | the administrator. A member is eligible to retire from the plan if the member has been 21 | |
| 1496 | - | an active member for at least 12 months before application for retirement and the 22 | |
| 1497 | - | member 23 | |
| 1498 | - | (1) is at least 24 | |
| 1499 | - | (A) 50 years of age and has at least 25 years of membership 25 | |
| 1500 | - | service as a peace officer or firefighter; 26 | |
| 1501 | - | (B) 55 years of age and has at least 20 years of membership 27 | |
| 1502 | - | service as a peace officer or firefighter; 28 | |
| 1503 | - | (2) has at least 30 years of membership; or 29 | |
| 1504 | - | (3) reaches the age set for Medicare eligibility and has at least 10 years 30 | |
| 1505 | - | of membership service. 31 33-LS0505\T | |
| 1506 | - | SB0088C -45- CSSB 88(FIN) | |
| 1507 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1508 | - | ||
| 1509 | - | (b) The member's surviving spouse is eligible to elect medical benefits if the 1 | |
| 1510 | - | member had retired or was eligible for retirement and medical benefits at the time of 2 | |
| 1511 | - | the member's death. 3 | |
| 1512 | - | (c) The medical benefits available to eligible persons are access to the retiree 4 | |
| 1513 | - | major medical insurance plan and access to the health reimbursement arrangement 5 | |
| 1514 | - | plan under AS 39.30.300. Access to the retiree major medical insurance plan means 6 | |
| 1515 | - | that an eligible person may not be denied insurance coverage except for failure to pay 7 | |
| 1516 | - | the required premium. 8 | |
| 1517 | - | (d) Retiree major medical insurance plan coverage elected by an eligible 9 | |
| 1518 | - | member under this section covers the eligible member, the spouse of the eligible 10 | |
| 1519 | - | member, and the dependent children of the eligible member. 11 | |
| 1520 | - | (e) Retiree major medical insurance plan coverage elected by a surviving 12 | |
| 1521 | - | spouse of an eligible member under this section covers the surviving spouse and the 13 | |
| 1522 | - | dependent children of the eligible member who are dependent on the surviving spouse. 14 | |
| 1523 | - | (f) Participation in the retiree major medical insurance plan is not required in 15 | |
| 1524 | - | order to participate in the health reimbursement arrangement plan. 16 | |
| 1525 | - | (g) A person eligible for medical benefits under this section is not required to 17 | |
| 1526 | - | participate in the health reimbursement arrangement plan in order to participate in the 18 | |
| 1527 | - | retiree major medical insurance plan. 19 | |
| 1528 | - | (h) A person who is eligible for medical benefits under this section must make 20 | |
| 1529 | - | the irrevocable election to participate or not participate in the retiree major medical 21 | |
| 1530 | - | insurance plan on or before the date the person reaches 70 1/2 years of age or when the 22 | |
| 1531 | - | person applies for retirement and medical benefits, whichever is later. 23 | |
| 1532 | - | (i) Major medical insurance coverage takes effect on the first day of the month 24 | |
| 1533 | - | following the date of the administrator's approval of the election and stops when the 25 | |
| 1534 | - | person who elects coverage dies or fails to make a required premium payment. 26 | |
| 1535 | - | (j) The coverage for persons 65 years of age or older is the same as that 27 | |
| 1536 | - | available for persons under 65 years of age. The benefits payable to those persons 65 28 | |
| 1537 | - | years of age or older supplement any benefits provided under the federal old age, 29 | |
| 1538 | - | survivors, and disability insurance program. 30 | |
| 1539 | - | (k) The medical and optional insurance premiums owed by the person who 31 33-LS0505\T | |
| 1540 | - | CSSB 88(FIN) -46- SB0088C | |
| 1541 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1542 | - | ||
| 1543 | - | elects coverage may be deducted from the health reimbursement arrangement plan. If 1 | |
| 1544 | - | the amount of the health reimbursement arrangement plan becomes insufficient to pay 2 | |
| 1545 | - | the premiums, the person who elects coverage under (a) of this section shall pay the 3 | |
| 1546 | - | premiums directly. 4 | |
| 1547 | - | (l) The cost of premiums for retiree major medical insurance coverage under 5 | |
| 1548 | - | this section for an eligible member or surviving spouse who is 6 | |
| 1549 | - | (1) not eligible for Medicare is an amount equal to the full monthly 7 | |
| 1550 | - | group premiums for retiree major medical insurance coverage; 8 | |
| 1551 | - | (2) eligible for Medicare is the following percentage of the premium 9 | |
| 1552 | - | amounts established for retirees who are eligible for Medicare: 10 | |
| 1553 | - | (A) 30 percent if the member had 10 or more, but less than 15, 11 | |
| 1554 | - | years of service; 12 | |
| 1555 | - | (B) 25 percent if the member had 15 or more, but less than 20, 13 | |
| 1556 | - | years of service; 14 | |
| 1557 | - | (C) 20 percent if the member had 20 or more, but less than 25, 15 | |
| 1558 | - | years of service; 16 | |
| 1559 | - | (D) 15 percent if the member had 25 or more, but less than 30, 17 | |
| 1560 | - | years of service; 18 | |
| 1561 | - | (E) 10 percent if the member had 30 or more years of service. 19 | |
| 1562 | - | (m) The eligibility for retiree major medical insurance coverage for an 20 | |
| 1563 | - | alternate payee under a qualified domestic relations order shall be determined based 21 | |
| 1564 | - | on the eligibility of the member to elect coverage. The alternate payee shall pay the 22 | |
| 1565 | - | full monthly premium for retiree major medical insurance coverage. 23 | |
| 1566 | - | (n) The administrator shall 24 | |
| 1567 | - | (1) inform a person entitled to retiree major medical insurance 25 | |
| 1568 | - | coverage under this section in writing 26 | |
| 1569 | - | (A) that the health insurance coverage available to retired 27 | |
| 1570 | - | members may be different from the health insurance coverage provided to 28 | |
| 1571 | - | employees; 29 | |
| 1572 | - | (B) of time limits for selecting optional health insurance 30 | |
| 1573 | - | coverage; and 31 33-LS0505\T | |
| 1574 | - | SB0088C -47- CSSB 88(FIN) | |
| 1575 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1576 | - | ||
| 1577 | - | (C) whether the election is irrevocable; and 1 | |
| 1578 | - | (2) require that a person entitled to retiree major medical insurance 2 | |
| 1579 | - | coverage under this section indicate in writing on a form provided by the administrator 3 | |
| 1580 | - | whether the person has chosen to receive optional health insurance coverage. 4 | |
| 1581 | - | (o) The monthly group premiums for retiree major medical insurance coverage 5 | |
| 1582 | - | under this section are established by the administrator in accordance with 6 | |
| 1583 | - | AS 39.30.095. Nothing in this chapter guarantees a person who elects coverage under 7 | |
| 1584 | - | (a) of this section a monthly group premium rate for retiree major medical insurance 8 | |
| 1585 | - | coverage other than the premium in effect for the month in which the premium is due 9 | |
| 1586 | - | for coverage for that month. 10 | |
| 1587 | - | (p) In this section, "health reimbursement arrangement plan" means the State 11 | |
| 1588 | - | of Alaska Teachers' and Public Employees' Retiree Health Reimbursement 12 | |
| 1589 | - | Arrangement Plan established in AS 39.30.300. 13 | |
| 1590 | - | * Sec. 80. AS 39.35.610(a) is amended to read: 14 | |
| 1591 | - | (a) The contributions of an employer and the contributions of its employees 15 | |
| 1592 | - | shall be transmitted to the administrator as soon as practicable after the close of the 16 | |
| 1593 | - | payroll period for which the contributions are made. Subject to (c) of this section, if an 17 | |
| 1594 | - | employer is delinquent in transferring the contributions for more than 15 days, interest 18 | |
| 1595 | - | shall be assessed on the outstanding contributions at [ONE AND ONE-HALF TIMES] 19 | |
| 1596 | - | the most recent actuarially determined rate of earnings for the retirement plan from the 20 | |
| 1597 | - | date that the contributions were originally due. 21 | |
| 1598 | - | * Sec. 81. AS 39.35.680(4) is amended to read: 22 | |
| 1599 | - | (4) "average monthly compensation" means the result obtained by 23 | |
| 1600 | - | dividing the compensation earned by an employee during a considered period by the 24 | |
| 1601 | - | number of months, including fractional months, for which compensation was earned; 25 | |
| 1602 | - | an employee must have at least 115 days of credited service in the last payroll year in 26 | |
| 1603 | - | order for that year to be used as part of the consecutive payroll years; the considered 27 | |
| 1604 | - | period consists of 28 | |
| 1605 | - | (A) for employees first hired before July 1, 1996, the three 29 | |
| 1606 | - | consecutive payroll years during the period of credited service that yield the 30 | |
| 1607 | - | highest average; | |
| 1608 | - | 31 33-LS0505\T | |
| 1609 | - | CSSB 88(FIN) -48- SB0088C | |
| 1610 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1611 | - | ||
| 1612 | - | (B) for employees first hired [ON OR] after June 30 [JULY 1], 1 | |
| 1613 | - | 1996, the five consecutive payroll years during the period of credited service 2 | |
| 1614 | - | that yield the highest average; 3 | |
| 1615 | - | (C) if the employee does not have the number of consecutive 4 | |
| 1616 | - | payroll years required by (A) or (B) of this paragraph, the actual number of 5 | |
| 1617 | - | months, including fractional months, that the employee worked; 6 | |
| 1618 | - | (D) for an employee who has made an election under 7 | |
| 1619 | - | AS 39.35.300(c) or 39.35.310(c), the actual number of months, including 8 | |
| 1620 | - | fractional months, that the employee worked; 9 | |
| 1621 | - | (E) for a peace officer or firefighter hired before July 1, 2006 10 | |
| 1622 | - | [AT ANY TIME], the three consecutive payroll years during the period of 11 | |
| 1623 | - | credited service that yield the highest average; 12 | |
| 1624 | - | * Sec. 82. AS 39.35.680(18) is amended to read: 13 | |
| 1625 | - | (18) "employer" means 14 | |
| 1626 | - | (A) the State of Alaska; 15 | |
| 1627 | - | (B) a political subdivision or public organization of the state 16 | |
| 1628 | - | that participates in the plan based on a resolution to participate in the plan that 17 | |
| 1629 | - | was approved by the administrator [ON OR BEFORE JULY 1, 2006]; or 18 | |
| 1630 | - | (C) a political subdivision or public organization of the state 19 | |
| 1631 | - | that, as a result of consolidation or reorganization [THAT OCCURS ON OR 20 | |
| 1632 | - | AFTER JULY 1, 2006], assumes liability under the plan of a political 21 | |
| 1633 | - | subdivision or public organization described in (B) of this paragraph; 22 | |
| 1634 | - | * Sec. 83. AS 39.35.680 is amended by adding a new paragraph to read: 23 | |
| 1635 | - | (44) "first became a member after June 30, 2006" and "first became a 24 | |
| 1636 | - | member of the plan after June 30, 2006" include a member who elected under former 25 | |
| 1637 | - | AS 39.35.940 to participate in the plan under AS 39.35.700 - 39.35.990 and who 26 | |
| 1638 | - | elects to participate in the defined benefit retirement plan under AS 39.35.095 - 27 | |
| 1639 | - | 39.35.680. 28 | |
| 1640 | - | * Sec. 84. AS 39.35.700 is amended to read: 29 | |
| 1641 | - | Sec. 39.35.700. Applicability of AS 39.35.700 - 39.35.990. The provisions of 30 | |
| 1642 | - | AS 39.35.700 - 39.35.990 apply only to 31 33-LS0505\T | |
| 1643 | - | SB0088C -49- CSSB 88(FIN) | |
| 1644 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1645 | - | ||
| 1646 | - | (1) members first hired [ON OR] after June 30, 2006, and before 1 | |
| 1647 | - | July 1, 2024, who do not participate in a defined benefit retirement plan under 2 | |
| 1648 | - | AS 14.25.009 - 14.25.220 or AS 39.35.095 - 39.35.680; and 3 | |
| 1649 | - | (2) [JULY 1, 2006, TO] members [WHO ARE EMPLOYED BY 4 | |
| 1650 | - | EMPLOYERS THAT DO NOT PARTICIPATE IN THE DEFINED BENEFIT 5 | |
| 1651 | - | RETIREMENT PLAN ESTABLISHED UNDER AS 39.35.095 - 39.35.680, TO 6 | |
| 1652 | - | FORMER MEMBERS AS DEFINED IN AS 39.35.680, OR TO MEMBERS] who 7 | |
| 1653 | - | transferred [TRANSFER] into the defined contribution retirement plan under former 8 | |
| 1654 | - | AS 39.35.940 and do not elect to participate in the defined benefit retirement plan 9 | |
| 1655 | - | under AS 39.35.095 - 39.35.680. 10 | |
| 1656 | - | * Sec. 85. AS 39.35.700 is amended by adding a new subsection to read: 11 | |
| 1657 | - | (b) A public organization as defined in AS 39.35.680 or a municipality or 12 | |
| 1658 | - | other political subdivision of the state that participates in the plan shall also participate 13 | |
| 1659 | - | in the defined benefit retirement plan under AS 39.35.095 - 39.35.680. 14 | |
| 1660 | - | * Sec. 86. AS 39.35.720 is amended to read: 15 | |
| 1661 | - | Sec. 39.35.720. Membership. An employee who becomes a member [ON OR] 16 | |
| 1662 | - | after June 30, 2006, and before July 1, 2024, who does not participate in a defined 17 | |
| 1663 | - | benefit retirement plan under AS 14.25.009 - 14.25.220 or AS 39.35.095 - 18 | |
| 1664 | - | 39.35.680 [JULY 1, 2006,] shall participate in the plan set out in AS 39.35.700 - 19 | |
| 1665 | - | 39.35.990. 20 | |
| 1666 | - | * Sec. 87. AS 39.35.895(a) is amended to read: 21 | |
| 1667 | - | (a) Subject to art. XII, sec. 7, Constitution of the State of Alaska, the 22 | |
| 1668 | - | [THE] state may [HAS THE RIGHT TO] amend the plan at any time and from time to 23 | |
| 1669 | - | time, in whole or in part, including the right to make retroactive amendments referred 24 | |
| 1670 | - | to in 26 U.S.C. 401(b). 25 | |
| 1671 | - | * Sec. 88. AS 39.35.895(b) is amended to read: 26 | |
| 1672 | - | (b) The plan administrator may not modify or amend the plan retroactively [IN 27 | |
| 1673 | - | SUCH A MANNER AS] to reduce [THE] benefits accrued by a [OF ANY] member 28 | |
| 1674 | - | [ACCRUED TO DATE UNDER THE PLAN BY REASON OF CONTRIBUTIONS 29 | |
| 1675 | - | MADE] before the modification or amendment except to the extent that the reduction 30 | |
| 1676 | - | is permitted by art. XII, sec. 7, Constitution of the State of Alaska, and the Internal 31 33-LS0505\T | |
| 1677 | - | CSSB 88(FIN) -50- SB0088C | |
| 1678 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1679 | - | ||
| 1680 | - | Revenue Code. 1 | |
| 1681 | - | * Sec. 89. AS 39.35.895(c) is amended to read: 2 | |
| 1682 | - | (c) Subject to art. XII, sec. 7, Constitution of the State of Alaska, and the 3 | |
| 1683 | - | Internal Revenue Code, the [THE] state may [, IN ITS DISCRETION,] terminate the 4 | |
| 1684 | - | plan in whole or part [AT ANY TIME] without liability for the termination. If the plan 5 | |
| 1685 | - | is terminated, all investments at the time of termination remain in force until all 6 | |
| 1686 | - | individual accounts have been completely distributed under the plan. After [, AND, 7 | |
| 1687 | - | AFTER] all plan liabilities are satisfied, excess assets of the plan revert to the 8 | |
| 1688 | - | employer. 9 | |
| 1689 | - | * Sec. 90. AS 39.35.895(d) is repealed and reenacted to read: 10 | |
| 1690 | - | (d) Within one year after determining that a contribution to the plan by an 11 | |
| 1691 | - | employer was the result of a mistake of fact, the administrator shall return the 12 | |
| 1692 | - | contribution to the employer. 13 | |
| 1693 | - | * Sec. 91. AS 14.25.012(c), 14.25.061, 14.25.540; and AS 39.35.940 are repealed. 14 | |
| 1694 | - | * Sec. 92. The uncodified law of the State of Alaska is amended by adding a new section to 15 | |
| 1695 | - | read: 16 | |
| 1696 | - | TRANSITION: RETIREMENT PLAN ELECTION. (a) A teacher who became a 17 | |
| 1697 | - | member of the defined contribution retirement plan of the teachers' retirement system after 18 | |
| 1698 | - | June 30, 2006, and before July 1, 2024, and who, on July 1, 2024, is a member employed by 19 | |
| 1699 | - | an employer in the defined contribution retirement plan of the teachers' retirement system 20 | |
| 1700 | - | may, before January 1, 2025, make a one-time election to participate in the defined benefit 21 | |
| 1701 | - | retirement plan and to transfer all contributions that have been made or should be made to the 22 | |
| 1702 | - | defined contribution retirement plan for service the member completes before the effective 23 | |
| 1703 | - | date of the member's participation in the defined benefit retirement plan. The transferred 24 | |
| 1704 | - | contributions shall be used to purchase credited service in the defined benefit retirement plan 25 | |
| 1705 | - | on an actuarial equivalent basis determined by the Alaska Retirement Management Board 26 | |
| 1706 | - | established under AS 37.10.210. The provisions of AS 14.25.044 apply to an election made 27 | |
| 1707 | - | under this subsection. 28 | |
| 1708 | - | (b) An employee who became a member of the defined contribution retirement plan 29 | |
| 1709 | - | of the public employees' retirement system after June 30, 2006, and before July 1, 2024, and 30 | |
| 1710 | - | who, on July 1, 2024, is a member employed by an employer in the defined contribution 31 33-LS0505\T | |
| 1711 | - | SB0088C -51- CSSB 88(FIN) | |
| 1712 | - | New Text Underlined [DELETED TEXT BRACKETED] | |
| 1713 | - | ||
| 1714 | - | retirement plan of the public employees' retirement system may, before January 1, 2025, make 1 | |
| 1715 | - | a one-time election to participate in the defined benefit retirement plan under AS 39.35.095 - 2 | |
| 1716 | - | 39.35.680 and to transfer all contributions that have been made or should be made to the 3 | |
| 1717 | - | defined contribution retirement plan for service the member completes before the effective 4 | |
| 1718 | - | date of the member's participation in the defined benefit retirement plan. The transferred 5 | |
| 1719 | - | contributions shall be used to purchase credited service in the defined benefit retirement plan 6 | |
| 1720 | - | on an actuarial equivalent basis determined by the Alaska Retirement Management Board 7 | |
| 1721 | - | established under AS 37.10.210. The provisions of AS 39.35.159 apply to an election made 8 | |
| 1722 | - | under this subsection. 9 | |
| 1723 | - | * Sec. 93. The uncodified law of the State of Alaska is amended by adding a new section to 10 | |
| 1724 | - | read: 11 | |
| 1725 | - | ADOPTION OF REGULATIONS. (a) The Alaska Retirement Management Board 12 | |
| 1726 | - | may adopt regulations necessary to implement secs. 37 and 38 of this Act. Regulations 13 | |
| 1727 | - | adopted by the Alaska Retirement Management Board under this Act relate to the internal 14 | |
| 1728 | - | management of a state agency and are not subject to AS 44.62 (Administrative Procedure Act) 15 | |
| 1729 | - | under AS 37.10.240. 16 | |
| 1730 | - | (b) The commissioner of administration may adopt regulations necessary to 17 | |
| 1731 | - | implement secs. 1 - 36 and 39 - 92 of this Act. Regulations adopted by the commissioner of 18 | |
| 1732 | - | administration under this Act relate to the internal management of a state agency and are not 19 | |
| 1733 | - | subject to AS 44.62 (Administrative Procedure Act) under AS 14.25.005, AS 39.30.098, and 20 | |
| 1734 | - | AS 39.35.005. 21 | |
| 1735 | - | (c) Regulations adopted under this section may not take effect before the effective 22 | |
| 1736 | - | date of the law being implemented by the regulation. 23 | |
| 1737 | - | * Sec. 94. Section 93 of this Act takes effect immediately under AS 01.10.070(c). 24 | |
| 1738 | - | * Sec. 95. Except as provided in sec. 94 of this Act, this Act takes effect July 1, 2024. 25 | |
| 1643 | + | AS 37.10.210. The provisions of AS 14.25.044 apply to an election made under this 1 | |
| 1644 | + | subsection. 2 | |
| 1645 | + | (b) An employee who was first hired after June 30, 2006, and before July 1, 2024, and 3 | |
| 1646 | + | who, on July 1, 2024, is a member of the defined contribution retirement plan of the public 4 | |
| 1647 | + | employees' retirement system may, before November 1, 2024, make a one-time election to 5 | |
| 1648 | + | participate in the defined benefit retirement plan under AS 39.35.095 - 39.35.680 and to 6 | |
| 1649 | + | transfer all contributions that have been made or should be made to the defined contribution 7 | |
| 1650 | + | retirement plan for service the member completes before the effective date of the member's 8 | |
| 1651 | + | participation in the defined benefit retirement plan. The transferred contributions shall be used 9 | |
| 1652 | + | to purchase credited service in the defined benefit retirement plan on an actuarial equivalent 10 | |
| 1653 | + | basis determined by the Alaska Retirement Management Board established under 11 | |
| 1654 | + | AS 37.10.210. The provisions of AS 39.35.159 apply to an election made under this 12 | |
| 1655 | + | subsection. 13 | |
| 1656 | + | * Sec. 90. The uncodified law of the State of Alaska is amended by adding a new section to 14 | |
| 1657 | + | read: 15 | |
| 1658 | + | ADOPTION OF REGULATIONS. (a) The Alaska Retirement Management Board 16 | |
| 1659 | + | may adopt regulations necessary to implement secs. 37 and 38 of this Act. Regulations 17 | |
| 1660 | + | adopted by the Alaska Retirement Management Board under this Act relate to the internal 18 | |
| 1661 | + | management of a state agency and are not subject to AS 44.62 (Administrative Procedure Act) 19 | |
| 1662 | + | under AS 37.10.240. 20 | |
| 1663 | + | (b) The commissioner of administration may adopt regulations necessary to 21 | |
| 1664 | + | implement secs. 1 - 36 and 39 - 89 of this Act. Regulations adopted by the commissioner of 22 | |
| 1665 | + | administration under this Act relate to the internal management of a state agency and are not 23 | |
| 1666 | + | subject to AS 44.62 (Administrative Procedure Act) under AS 14.25.005, AS 39.30.098, and 24 | |
| 1667 | + | AS 39.35.005. 25 | |
| 1668 | + | (c) Regulations adopted under this section may not take effect before the effective 26 | |
| 1669 | + | date of the law being implemented by the regulation. 27 | |
| 1670 | + | * Sec. 91. Section 90 of this Act takes effect immediately under AS 01.10.070(c). 28 | |
| 1671 | + | * Sec. 92. Except as provided in sec. 91 of this Act, this Act takes effect July 1, 2024. 29 |