Sec. 39.05.010. Employment of persons not citizens prohibited. [Repealed, § 29 ch 208 SLA 1975.]

Sec. 39.05.020. Appointment of department heads.

The governor shall appoint the head of each principal executive department in the state government. Each appointment is subject to confirmation by a majority of the members of the legislature in joint session.

History. (§ 4 ch 64 SLA 1959; am § 1 ch 82 SLA 1975; am § 37 ch 94 SLA 1980)

Cross references. —

For power of governor to appoint members of boards and commissions, see Alaska Const., art. III, § 26.

Sec. 39.05.030. Service at governor’s pleasure.

Each principal executive officer serves at the pleasure of the governor.

History. (§ 4 ch 64 SLA 1959)

Sec. 39.05.035. Commission of office.

After each appointment of a state officer, the governor shall execute a commission, which states that the person to whom it is issued is appointed and sets out the office to and the term for which the officer is appointed. The attorney general shall prescribe the form of the commission.

History. (§ 11-1-5 ACLA 1949)

Revisor’s notes. —

Formerly AS 39.05.120 . Renumbered in 1984.

Sec. 39.05.040. Oaths for executive officers, boards.

The principal executive officer of each department and the member of each board within the state government shall take, sign, and file the oath of office required by the constitution before entering upon the duties of office.

History. (§ 25 ch 64 SLA 1959)

Cross references. —

For oath of office, see Alaska Const., art. XII, § 5 and AS 39.05.045 .

Collateral references. —

63C Am. Jur. 2d, Public Officers and Employees, § 121 et seq.

67 C.J.S., Officers and Public Employees, §§ 70-72.

Sec. 39.05.045. Oaths for other employees.

A public officer or employee of the state, before entering upon the duties of office, shall take and sign the following oath or affirmation:

“I do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of Alaska, and that I will faithfully discharge my duties as . . . . . . . . . . . . . . . to the best of my ability.”

History. (§ 1 ch 162 SLA 1959)

Revisor’s notes. —

Formerly AS 39.05.130 . Renumbered in 1984.

Collateral references. —

63C Am. Jur. 2d, Public Officers and Employees, § 121 et seq.

67 C.J.S., Officers and Public Employees, §§ 70-72.

Sec. 39.05.050. Surety bonds.

The principal executive officer of each department and subordinate officials shall furnish corporate surety bonds in the instance and amount required by law or determined by the governor upon recommendation of the commissioner of administration. The state shall pay the cost of the bond. The attorney general shall approve the form of the bond.

History. (§ 26 ch 64 SLA 1959)

Cross references. —

For official bonds, see AS 39.15.

Sec. 39.05.053. Terms of office.

The term of office of a position or membership ends on March 1 of the year when the position’s or membership’s term expires except as otherwise provided in a law relating to positions or memberships on a specific board or commission.

History. (§ 12 ch 80 SLA 1996)

Cross references. —

For appointment and term of office, see AS 08.01.035 .

Sec. 39.05.055. Staggered initial terms.

The terms of the initially appointed members of a board, commission, council, or other multi-member body that will have a continuing existence shall be set by the governor as follows:

1. in the case of three-member boards, for one, two and three years;
2. in the case of four-member boards, for one, two, three and four years;
3. in the case of five-member boards, for one, two, three, four and five years;
4. in the case of six-member boards, two members serve for one year, two for two years, and two for three years;
5. in the case of seven-member boards, two members serve for one year, two for two years, and three for three years;
6. in the case of eight-member boards, two members serve for one year, two for two years, two for three years, and two for four years;
7. in the case of nine-member boards, three members serve for one year, three for two years, and three for three years;
8. in the case of 10-member boards, two members serve for one year, two for two years, two for three years, two for four years, and two for five years.

History. (§ 55 ch 21 SLA 1985)

Sec. 39.05.060. Appointment, qualifications, and terms of office of members of departmental boards, councils, or commissions.

1. Each member of the following shall be a citizen of the United States:
   1. Local Boundary Commission;
   2. Alcoholic Beverage Control Board.
2. The governor shall appoint each member on the basis of interest in public affairs, good judgment, knowledge and ability in the field of action of the department for which appointed, and with a view to providing diversity of interest and points of view in the membership.  Appointments are subject to confirmation by a majority of the members of the legislature in joint session.
3. [Repealed, § 56 ch 21 SLA 1985.]
4. A vacancy occurring during a term of office is filled in the same manner as the original appointment is made and, except as provided in AS 39.05.080 (4), is filled for the balance of the unexpired term. Except as otherwise provided by law, each member holds office at the pleasure of the governor notwithstanding the member’s term.

History. (§ 6 ch 64 SLA 1959; am § 2 ch 34 SLA 1960; am § 2 ch 89 SLA 1964; am § 2 ch 90 SLA 1967; am § 10 ch 96 SLA 1967; am § 1 ch 107 SLA 1969; am § 30 ch 46 SLA 1970; am § 2 ch 121 SLA 1971; am § 36 ch 124 SLA 1975; am §§ 34 — 36 ch 206 SLA 1975; am § 72 ch 59 SLA 1982; am §§ 56, 57 ch 21 SLA 1985; am § 67 ch 14 SLA 1987; am § 116 ch 4 FSSLA 1992; am § 7 ch 121 SLA 1992; am § 13 ch 43 SLA 1994; am § 16 ch 61 SLA 1995; am § 13 ch 80 SLA 1996)

Sec. 39.05.065. Qualifications of members of the Board of Education and Early Development.

1. Each member of the Board of Education and Early Development shall be a citizen of the United States and have been a resident of Alaska for at least three years.
2. A member of the Board of Education and Early Development may also be a member of a district school board.

History. (§ 11 ch 96 SLA 1967; am § 19 ch 26 SLA 1980)

Revisor’s notes. —

In 2000, “Board of Education and Early Development” was substituted for “Board of Education” in accordance with sec. 104, ch. 21, SLA 2000.

Cross references. —

For appointment of members of Board of Education, see AS 14.07.085 ; for a description of districts of the state public school system, see AS 14.12.010 .

Sec. 39.05.070. Purpose of AS 39.05.070 — 39.05.200.

It is the purpose of AS 39.05.070 — 39.05.200 to provide procedural uniformity in the exercise of appointive powers conferred by the legislature to eliminate, insofar as possible, recess or interim appointments except in the event of death, resignation, inability to act, or other removal from office and the exercise, insofar as possible, of appointive powers only when the legislature is in session.

History. (§ 1 ch 64 SLA 1955)

Sec. 39.05.080. Procedure for all appointments.

Except as otherwise provided in a law relating to the positions or memberships on a specific board or commission, appointment to a position or membership shall be made in the following manner:

1. Each governor shall present to the legislature the names of the persons appointed by that governor; each governor may present the name of a person appointed by a previous governor; only presentment that occurs during the time that the legislature is in regular session constitutes presentment under this section. The governor shall, within the first 15 days after the legislature convenes in regular session, present to the legislature for confirmation the names of the following persons: (A) persons appointed to a position or membership who have not previously been confirmed by the legislature, and (B) persons to be appointed to fill a position or membership the term of which will expire on or before March 1 during that session of the legislature. If an appointment is made after the first 15 days after the convening of the regular session but while the legislature is in regular session, the governor shall immediately present to the legislature for confirmation the name of the person appointed.
2. When appointments are presented to the legislature for confirmation,
   1. the presiding officer of each house shall assign the name of each appointee to a standing committee of that house for a hearing, report, and recommendation; standing committees of the two houses assigned the same person’s name for consideration may meet jointly to consider the qualifications of the person appointed and may issue either a separate or a joint report and recommendation concerning that person; then
   2. the legislature shall, before the end of the regular session in which the appointments are presented, in joint session assembled, act on the appointments by confirming or declining to confirm by a majority vote of all of the members the appointments presented.
3. When the legislature declines to confirm an appointment, the legislature shall notify the governor of its action and a vacancy in the position or membership exists which the governor shall fill by making a new appointment. The governor may not appoint again the same person whose confirmation was refused for the same position or membership during the regular session of the legislature at which confirmation was refused. The person whose name is refused for appointment by the legislature may not thereafter be appointed to the same position or membership during the interim between regular legislative sessions. Failure of the legislature to act to confirm or decline to confirm an appointment during the regular session in which the appointment was presented is tantamount to a declination of confirmation on the day the regular session adjourns.
4. Pending confirmation or rejection of appointment by the legislature, persons appointed shall exercise the functions, have the powers, and be charged with the duties prescribed by law for the appointive positions or membership. However, the duration of an appointment made during the time period between regular sessions of the legislature by a person who is not still the governor on the first day of the next regular session ends on the date during the next regular session that the sitting governor presents for confirmation an appointment to the office. For the purpose of applying laws that limit the number of terms or parts of terms that may be served by a member of a board or commission, the part of the term of office that is served under an interim appointment immediately before the member is reappointed under this paragraph is considered to be merged with the part of the term of office that is served immediately after reappointment so that the two periods of service constitute only one part of a term. The duration of an appointment made during a regular session of the legislature and not presented to the legislature by the governor during that session ends no later than the last day of that session. The duration of an appointment made during an interim by a governor who is not in office at the beginning of the next regular session of the legislature ends no later than the last day of that regular session unless the governor who is in office during that session presents the person’s name for confirmation. The same governor may not appoint the same person to the same position or membership if the person’s appointment ends because of the governor’s failure to present the person’s name for confirmation.

History. (§ 4 ch 64 SLA 1955; am §§ 1 — 3 ch 1 SLA 1964; am § 1 ch 2 SLA 1967; am § 1 ch 65 SLA 1974; am § 2 ch 82 SLA 1975; am § 14 ch 80 SLA 1996; am § 1 ch 45 SLA 2002; am § 16 ch 34 SLA 2007)

Cross references. —

For temporary provisions relating to confirmation of appointments presented by the governor to the legislature during the second regular session of the Thirty-First Alaska State Legislature, see § 1, ch. 9, SLA 2020 in the 2020 Temporary and Special Acts.

Sec. 39.05.090. Time limits in AS 39.05.080.

The time limitations concerning the submission and resubmission of names as prescribed in AS 39.05.080 do not apply to those appointments that by law require recommendations by professional groups.

History. (§ 3 ch 64 SLA 1955)

Sec. 39.05.100. Qualifications for appointment.

1. A person appointed to a board or commission of the state government shall be and have been before the last general election, (1) a registered voter in the state, if the appointment is made at large or (2) a registered voter from the judicial district, if the appointment is made from a specific judicial district. The student member of the Board of Regents of the University of Alaska appointed under AS 14.40.150(b) , the student member of the Alaska Commission on Postsecondary Education appointed under AS 14.42.015(d) , and a member of the Alaska Human Relations Commission appointed under AS 44.19.600 , are exempt from the requirement of this subsection if the member was not old enough to be a registered voter in the last general election.
2. A member of a board or commission of the state government who ceases to reside in the state during the member’s term terminates membership on the board or commission.  For the purposes of this section, the acceptance of employment outside the state for a six-month period or longer, or physical absence from the state for one year or longer, or registration as a voter in a municipal, county, district, state, or national election in a voting precinct outside the state is considered as discontinuing residence in the state.

History. (§ 5 ch 64 SLA 1955; am § 1 ch 167 SLA 1957; am § 68 ch 14 SLA 1987; am §§ 10, 11 ch 16 SLA 1990; am E.O. No. 84 § 6 (1993))

Revisor’s notes. —

In 2008, in subsection (a), “AS 14.42.015(d) ” was substituted for “AS 14.42.015(e) ” to reflect the 2008 relettering of AS 14.42.015(e) .

Opinions of attorney general. —

An individual is eligible for appointment to a state board or commission where his voter registration was administratively cancelled and he has not reregistered to vote. 1987 Alaska AG Lexis 255; 1987-1 Op (Inf.) Atty Gen. Alas 367.

Where the governor has appointed a person to a state board or commission and that appointee has been confirmed by the legislature, that person is in fact a member of the board or commission even though the appointee’s voter registration was administratively cancelled. 1987 Alaska AG Lexis 255; 1987-1 Op (Inf.) Atty Gen. Alas 367.

Collateral references. —

63C Am. Jur. 2d, Public Officers and Employees, §§ 48 to 84.

Sec. 39.05.110. [Renumbered as AS 39.05.200.]

Sec. 39.05.120. [Renumbered as AS 39.05.035.]

Sec. 39.05.130. [Renumbered as AS 39.05.045.]

Sec. 39.05.150. Information not to be requested of or volunteered by applicant for state employment. [Repealed, § 2 ch 237 SLA 1970.]

Sec. 39.05.200. Definitions.

In this chapter,

1. “confirmation” means confirmation or approval by the legislature of a name submitted for appointment to a position or membership;
2. “position or membership” means an executive position or membership on a state board, commission, authority, council, or committee that by law requires appointment by the governor and confirmation by the legislature.

History. (§ 2 ch 64 SLA 1955; am §§ 73, 74 ch 59 SLA 1982)

Revisor’s notes. —

Formerly AS 39.05.110 . Renumbered in 1984.

Sec. 39.10.010. [Renumbered as AS 39.90.020.]

Sec. 39.15.010. Form, amount, and conditions.

The official bond of an officer or employee of the state required by statute or regulation under authority of law shall be in a form joint and several, and made payable to the state in the penal sum and with the conditions required by law.

History. (§ 11-2-1 ACLA 1949)

Cross references. —

For surety bonds furnished by the principal executive officer of each department and subordinate officials, see AS 39.05.050 .

Sec. 39.15.020. Obligation and effect.

Bonds of state officers and employees are in force and obligatory upon the principal and sureties for breach of the condition of the bond committed during the time the officer or employee discharges the duties of or holds the office or appointment. Each bond is considered in force and obligatory upon the principal and sureties for the faithful discharge of all duties required of the officer or employee by any law enacted after the execution of the bond and this condition shall be set out in the bond.

History. (§ 11-2-2 ACLA 1949)

Sec. 39.15.030. Action on bond.

An official bond executed by a state officer or employee is in force and obligatory upon the principal and sureties to and for the state, and for the use and benefit of all persons injured or aggrieved by the wrongful act or default of the officer or employee in the official capacity or employment of the official or employee. A person injured or aggrieved may bring suit on the bond in the person’s name.

History. (§ 11-2-3 ACLA 1949)

Collateral references. —

63C Am. Jur. 2d, Public Officers and Employees, § 483 et seq.

What period of limitation governs in an action against a public officer and the surety on his official bond, 18 ALR2d 1176.

Sec. 39.15.040. Recovery on defective bond.

If a bond does not contain the matter or condition required by law, or there is a defect in the approval or filing of the bond, the bond is not void and the obligor and the obligor’s sureties are bound to the state or party interested, and the state or party may, by action instituted in any court of competent jurisdiction, suggest the defect and recover a proper and equitable demand from the obligor and surety.

History. (§ 11-2-4 ACLA 1949)

Sec. 39.15.050. Procedure when bond becomes insufficient.

1. If a surety on the bond dies, removes from the state, becomes insolvent or insufficient, or the penalty of the bond becomes insufficient, the Department of Administration shall, on its own motion or on the showing of a person supported by an affidavit, summon the officer or employee to appear before it at a stated time, not less than 15 days after service of the summons, and show cause why the officer or employee should not execute a new bond with good and sufficient sureties.
2. If the officer or employee after notice fails to appear at the time appointed, the department shall hear and determine the matter in the absence of the officer or employee. If the department is of the opinion that the bond is insufficient, it shall require a new bond with sureties and in the amount considered necessary.
3. The new bond shall be executed and filed within the time the department orders.  If the officer or employee fails to execute and file a new bond within the time prescribed, the office or appointment of the officer or employee becomes vacant as provided by AS 39.15.100 .  The new bond has the same force and obligation upon the principal and surety and subjects the officer and the surety to the same liabilities prescribed for an original bond of an officer and employee.

History. (§ 11-2-5 ACLA 1949)

Sec. 39.15.060. Number of sureties.

Unless expressly provided otherwise, each official bond shall have at least two individual sureties or one corporate surety.

History. (§ 11-2-6 ACLA 1949)

Collateral references. —

12 Am. Jur. 2d, Bonds, § 18.

Sec. 39.15.070. Justification of sureties.

The officer charged with the duty of approving official bonds of officers and employees may not approve a bond unless the surety on the bond is a surety company qualified to do business in the state, or unless each individual surety justifies before an officer authorized to administer oaths that the surety is

1. a resident and freeholder within the state; and
2. worth double the amount for which the surety becomes surety over and above all debts and liabilities in property located in the state that is not exempt from seizure and sale under execution.

History. (§ 11-2-7 ACLA 1949; am § 16 ch 2 SLA 1964)

Revisor’s notes. —

Rewritten and reorganized for clarity in 1987.

Sec. 39.15.080. Release of sureties.

A surety on an official bond may be released from liability accruing after proceedings are taken under AS 39.15.090 .

History. (§ 11-2-8 ACLA 1949)

Collateral references. —

63C Am. Jur. 2d, Public Officers and Employees, § 361.

Sec. 39.15.090. Proceedings for release of sureties.

A surety desiring to be released from liability on a bond shall file with the Department of Administration a statement in writing, signed by the surety or someone on the surety’s behalf, setting out the name of the principal and the office, position, or appointment of the principal, the amount for which the surety is liable, and the surety’s desire to be released from further liability. A notice containing a copy of the statement shall be served personally on the officer or employee. If the officer or employee is not in the state, the notice may be served by publication for 30 days in a newspaper printed at the capital.

History. (§ 11-2-9 ACLA 1949)

Sec. 39.15.100. Failure to file new bond.

1. If a state officer or employee fails to file a new bond within 15 days from the date of personal service or within 30 days from the date of the first insertion of a publication, the office becomes vacant and the officer or employee forfeits the office.
2. The office shall be filled as in other cases of vacancy.  The person applying for release from liability on the bond is not liable on it after the office becomes vacant.

History. (§ 11-2-10 ACLA 1949)

Sec. 39.20.010. Annual salary of governor.

1. The annual salary of the governor shall be in accordance with AS 39.23.
2. [Repealed, § 7 ch 53 SLA 2005.]
3. [Repealed, § 7 ch 53 SLA 2005.]

History. (§ 1 ch 39 SLA 1959; am § 1 ch 115 SLA 1965; am § 4 ch 101 SLA 1969; am § 4 ch 193 SLA 1970; am § 5 ch 34 SLA 1974; am § 7 ch 148 SLA 1976; am § 9 ch 263 SLA 1976; am §§ 6, 21 ch 3 SLA 1980; am § 2 ch 87 SLA 1985; am § 1 ch 2 TSSLA 2000; am §§ 1, 7 ch 53 SLA 2005; am § 6 ch 21 SLA 2008)

Revisor’s notes. —

Under secs. 26 and 28(2), ch. 21, SLA 2008, the amendment to this section made by sec. 6, ch. 21, SLA 2008, took effect July 1, 2009, which was the effective date of the provision of ch. 12, SLA 2009 that fully funded the salary recommendation of the State Officers Compensation Commission dated January 10, 2009.

Collateral references. —

63C Am. Jur. 2d, Public Officers and Employees, §§ 7, 275-294, 433-438.

67 C.J.S., Officers and Public Employees, § 374 et seq.

Sec. 39.20.020. Date of entitlement of governor’s salary.

The governor is entitled to receive the salary established for the office effective from the date on which the oath of office is taken by the governor.

History. (§ 2 ch 39 SLA 1959)

Sec. 39.20.030. Annual salary of lieutenant governor.

1. The annual salary of the lieutenant governor shall be in accordance with AS 39.23.
2. [Repealed, § 7 ch 53 SLA 2005.]
3. [Repealed, § 7 ch 53 SLA 2005.]

History. (§ 1 ch 40 SLA 1959; am § 2 ch 115 SLA 1965; am § 1 ch 123 SLA 1967; am § 5 ch 101 SLA 1969; am § 5 ch 193 SLA 1970; am § 6 ch 34 SLA 1974; am § 8 ch 148 SLA 1976; am § 10 ch 263 SLA 1976; am §§ 7, 22 ch 3 SLA 1980; am § 3 ch 87 SLA 1985; am § 2 ch 2 TSSLA 2000; am §§ 2, 7 ch 53 SLA 2005; am § 7 ch 21 SLA 2008)

Revisor’s notes. —

Under secs. 26 and 28(2), ch. 21, SLA 2008, the amendment to this section made by sec. 7, ch. 21, SLA 2008, took effect July 1, 2009, which was the effective date of the provision of ch. 12, SLA 2009 that fully funded the salary recommendation of the State Officers Compensation Commission dated January 10, 2009.

Sec. 39.20.040. Date of entitlement of lieutenant governor’s salary.

The lieutenant governor is entitled to receive the salary established for the office effective from the date on which the oath of office is taken by the lieutenant governor.

History. (§ 2 ch 40 SLA 1959)

Sec. 39.20.050. Exclusive compensation.

The compensation fixed by law for the governor and lieutenant governor is in full for all services rendered by each of them in any official capacity or employment whatsoever during their respective terms of office, and shall be paid throughout their respective terms of office unless the office becomes vacant.

History. (§ 1 ch 160 SLA 1960)

Sec. 39.20.060. Exclusion of governor and lieutenant governor from personnel laws.

Notwithstanding the provisions of any other law, the governor and lieutenant governor are not considered employees of the state for the purpose of state personnel laws relating to hours of employment, annual leave, sick leave, overtime, compensatory time, and travel allowances. This section does not deprive the governor and lieutenant governor of the right to participate in the state retirement system or in state group insurance plans.

History. (§ 2 ch 160 SLA 1960)

Sec. 39.20.070. Subsequent legislation relating to AS 39.20.050 and 39.20.060.

AS 39.20.050 and 39.20.060 are not superseded or modified by any subsequent legislation except to the extent that the legislation does so expressly.

History. (§ 3 ch 160 SLA 1960)

Sec. 39.20.080. Salary of executive department head and deputy.

1. The monthly salary of the head of each principal executive department of the state shall be in accordance with AS 39.23.
2. The monthly salary of a deputy head of a principal executive department of the state is equal to a step in Range 28 of the salary schedule in AS 39.27.011 .
3. Except as provided by a general law applicable to all officers of the state, the compensation of the head of each principal executive department of the state may not be reduced during the executive’s tenure in office.

History. (§ 1 ch 105 SLA 1959; am § 1 ch 128 SLA 1962; am § 3 ch 115 SLA 1965; am § 1 ch 156 SLA 1966; am § 2 ch 123 SLA 1967; am § 6 ch 101 SLA 1969; am § 6 ch 193 SLA 1970; am § 37 ch 71 SLA 1972; am § 7 ch 34 SLA 1974; am § 5 ch 205 SLA 1975; am § 9 ch 148 SLA 1976; am § 11 ch 263 SLA 1976; am §§ 8, 9, 15, 23, 24 ch 3 SLA 1980; am § 3 ch 53 SLA 2005; am §§ 8, 9 ch 21 SLA 2008)

Revisor’s notes. —

Under secs. 26 and 28(2), ch. 21, SLA 2008, the amendment to this section made by sec. 8, ch. 21, SLA 2008, took effect July 1, 2009, which was the effective date of the provision of ch. 12, SLA 2009 that fully funded the salary recommendation of the State Officers Compensation Commission dated January 10, 2009.

Administrative Code. —

For pay, see 2 AAC 7, art. 8.

Editor’s notes. —

Chapter 205, SLA 1975, which amended this section, was submitted to the voters by referendum and was rejected.

Sec. 39.20.090. Salaries and expenses.

The salaries and expenses of officers, boards, commissions, and bureaus established by the laws of the state shall be paid from appropriations made for that purpose, as other expenses of the state are paid.

History. (§ 11-3-8 ACLA 1949)

Sec. 39.20.100. Fees, mileage or compensation. [Repealed, § 75 ch 59 SLA 1982.]

Sec. 39.20.110. Per diem allowance.

Officials and employees of the state agencies, while traveling on official business and away from their designated post of duty, shall be allowed, instead of their actual expenses for subsistence and all fees or tips, a per diem allowance to be prescribed by the commissioner of administration under the regulatory authority set out in AS 39.20.160 , and in consultation with the head of the agency concerned.

History. (§ 4 ch 60 SLA 1957; am § 1 ch 99 SLA 1960; am § 1 ch 105 SLA 1970; am § 10 ch 47 SLA 1974)

Sec. 39.20.120. Allowable expenses.

Except as provided in AS 39.20.110 — 39.20.170 , only actual and necessary traveling expenses shall be allowed to an official or employee.

History. (§ 5 ch 60 SLA 1957)

Sec. 39.20.130. Mileage allowance.

Officials and employees of state agencies shall, under regulations adopted by the commissioner of administration, and whenever the mode of transportation is authorized or approved as more advantageous to the state, be paid an amount, instead of actual expenses of transportation, not to exceed a mileage allowance set by the commissioner of administration for the use of privately-owned automobiles or airplanes, when engaged in official travel inside or outside their designated posts of duty or places of service. In addition to the mileage allowance, there may be allowed reimbursement for the actual cost of ferry fares, and bridge, road, and tunnel tolls. When two or more officials or employees are traveling in the same direction, and it is possible to share a privately-owned automobile or airplane, the mileage permitted shall be allowed only once.

History. (§ 6 ch 60 SLA 1957; am § 11 ch 47 SLA 1974)

Sec. 39.20.140. Travel costs and travel outside the state.

1. The Department of Administration may not pay an official or employee for per diem or transportation costs unless the travel is clearly necessary to benefit the state.
2. The Department of Administration may not reimburse an official or employee or pay for more than the lowest tourist class fare for the most direct route unless
   1. tourist class accommodation is not available;
   2. waiting for tourist class accommodation would occasion a delay harmful to the state; or
   3. the Department of Administration finds that travel by tourist class accommodation is not in the best interest of the state, and authorizes other accommodation.
3. When the Department of Administration authorizes more expensive travel under (b)(3) of this section, it shall file a justification for that authorization with the travel voucher. When fares other than tourist class are authorized under (b) of this section, the Department of Administration may not reimburse the official or employee or pay for more than the lowest first class fare available.
4. Officials and employees are authorized to travel only the least number of days necessary to transact the business involved, to secure return passage, and to return.
5. Every official and employee shall, unless otherwise authorized by law to travel outside the state, obtain prior approval for travel outside the state from the head of the official’s or employee’s department or from an immediate supervisor, or from the Department of Administration if the official or employee is not within a department or is not under the direct supervision of an official or supervisor. If an employee deviates materially from the travel authorized under this section, the employee must obtain approval for the deviation from the person who approved the travel before the Department of Administration may reimburse the employee for the travel.

History. (§ 7 ch 60 SLA 1957; am § 1 ch 83 SLA 1962)

Sec. 39.20.150. Advances and recovery.

1. An agency may advance, through proper disbursing methods, to a person entitled to per diem or mileage allowance under AS 39.20.110 — 39.20.170 the sums considered advisable considering the character and probable duration of the travel to be performed.
2. Sums advanced and not used for allowable travel expense are recoverable by setoff against salary due, or otherwise, from the person to whom advanced, or the person’s estate, by deduction from any amount due from the state, or by other legal methods of recovery that may be necessary.

History. (§ 8 ch 60 SLA 1957)

Sec. 39.20.160. Regulations.

The fixing and payment under AS 39.20.110 — 39.20.170 of travel and per diem allowances and of advances and recovery and reimbursement of travel expenses shall be in accordance with regulations adopted by the commissioner of administration. The regulations shall be uniform for all officials and employees, and all agencies and departments. The regulations shall also govern the use of public transportation facilities by officials and employees. The regulations relate to the internal management of state agencies and their adoption is not subject to AS 44.62 (Administrative Procedure Act).

History. (§ 9 ch 60 SLA 1957; am § 2 ch 13 SLA 1963)

Cross references. —

For legislative per diem, see AS 24.10.130 .

Sec. 39.20.170. Construction of AS 39.20.110 — 39.20.170.

AS 39.20.110 — 39.20.170 may not be construed to modify or repeal a law providing for the travel expenses of the governor, or members of the legislature, or members of boards or commissions of the state government.

History. (§ 10 ch 60 SLA 1957)

Sec. 39.20.180. Transportation and per diem expenses for members of boards, commissions, etc.

Except as otherwise provided by law, the provisions in this section relating to per diem and transportation govern exclusively with respect to a member of a state board, commission, committee, judicial council, or other similar body of persons of the state organized or established under the authority of law, but excluding any other state employee other than a legislator, who is otherwise entitled by law to receive from the state payments for expenses of transportation, and for reimbursement or for per diem in lieu of reimbursement for other expenses incident to duties as such member:

1. for transportation, the member is entitled either to the use of state transportation requests, or to be reimbursed for expenses of transportation to the same extent, in the same manner, and under the same conditions as provided for state officials and employees by the provisions of AS 39.20.110 — 39.20.170 ;
2. for reimbursement for other expenses, the member is entitled to a per diem allowance prescribed by the commissioner of administration under the regulatory authority set out in AS 39.20.160 for each day or portion of a day spent in actual meeting or on authorized official business incident to duties as a member.

History. (§ 1 ch 130 SLA 1953; am § 1 ch 34 SLA 1960; am § 1 ch 37 SLA 1962; am § 5 ch 136 SLA 1967; am § 12 ch 47 SLA 1974; am § 31 ch 85 SLA 1988)

Cross references. —

For coverage of state board and commission members under the Worker’s Compensation Act, see AS 23.30.242 .

Opinions of attorney general. —

The Alaska Power Authority may reimburse a member only for (1) time spent actually meeting or (2) time spent on authorized official business incident to his duties as a member. April 19, 1984 Op. Att’y Gen.

To recover an allowance for nonmeeting activity, an occupational licensing board member must be engaged in an activity within the scope of the applicable board’s powers. November 6, 1984 Op. Att’y Gen.

An occupational licensing board member cannot receive a per diem allowance for conducting an activity that should be performed by division personnel; any activity approved must be specifically defined by statute as a board duty and should be an activity that cannot be accomplished within the confines of a board meeting. If the task can be performed during a meeting, then per diem should not be paid for time unnecessarily spent by a board member outside a board meeting. It is important, of course, for budgetary reasons, that board activity for which per diem compensation is sought be kept to a minimum. November 6, 1984 Op. Att’y Gen.

Sec. 39.20.185. Per diem prohibited in community of residence.

A state official or employee who is a member of the judicial council or a state official or employee appointed by the governor to a state board, commission, or committee established under the authority of law is not entitled to per diem when the meeting or other business takes place in the community of which the member is a resident.

History. (§ 1 ch 139 SLA 1968)

Sec. 39.20.190. Definitions.

In AS 39.20.110 — 39.20.190 ,

1. “employee” or “state employee” means a person employed by a state agency;
2. “official” or “state official” means the appointive head of a state agency;
3. “official travel” means travel inside or outside the state on official business of the state, for which payment or reimbursement is expected or authorized;
4. “per diem allowance” means a daily flat rate of payment instead of actual expenses;
5. “state agency,” “agency,” or “department” means department, office, institution, board, commission, bureau, division, or other administrative unit forming the state government;
6. “subsistence” means lodging, meals, and other necessary expenses incidental to the personal sustenance or comfort of the traveler;
7. “traveler” means the official or employee engaged in official travel for the state.

History. (§ 3 ch 60 SLA 1957; am § 12 ch 168 SLA 1990)

Sec. 39.20.200. Computation of personal leave.

1. Officers and employees of the state who are first employed before July 1, 2013, in a position for which leave may accrue are entitled to personal leave with pay that accrues as follows:
   1. two days for each full monthly pay period in the case of officers and employees with less than two years of service;
   2. two and one-quarter days for each full monthly pay period in the case of officers and employees with two but less than five years of service;
   3. two and one-half days for each full monthly pay period in the case of officers and employees with five but less than 10 years of service;
   4. three days for each full monthly pay period in the case of officers and employees with 10 years or more of service.
2. Personal leave accrued by an officer or employee during each pay period shall be converted monthly to a cash value by multiplying the hours accrued during the pay periods in that month by the officer’s or employee’s annualized hourly rate of pay for the pay period. The resulting amount shall be added to the cash value amounts calculated for previous pay periods. The total of all of the cash values is the cash value of the officer’s or employee’s personal leave balance.
3. Officers and employees of the state who are first employed on or after July 1, 2013, in a position for which leave may accrue are entitled to personal leave with pay that accrues as follows:
   1. one and three-quarters days for each full monthly pay period in the case of officers and employees with less than two years of service;
   2. two days for each full monthly pay period in the case of officers and employees with two but less than five years of service;
   3. two and one-quarter days for each full monthly pay period in the case of officers and employees with five but less than 10 years of service;
   4. two and one-half days for each full monthly pay period in the case of officers and employees with 10 but less than 15 years of service;
   5. three days for each full monthly pay period in the case of officers and employees with 15 years or more of service.

History. (§ 11-5-6 a ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 10 ch 148 SLA 1976; am § 1 ch 136 SLA 1978; am § 9 ch 4 FSSLA 1996; am §§ 4, 5 ch 47 SLA 2013)

Administrative Code. —

For leave rules, see 2 AAC 8.

Effect of amendments. —

The 2013 amendment, effective July 1, 2013, in the introductory language of (a), inserted “who are first employed before July 1, 2013, in a position for which leave may accrue”, in (a)(4), inserted “of” preceding “service”; added (c).

Editor’s notes. —

Section 43, ch. 4, FSSLA 1996 provides that, for the purposes of implementing subsection (b), “the beginning total cash value of an officer’s or employee’s personal leave balance on July 1, 1996 is calculated by multiplying the officer’s or employee’s personal leave balance as of June 30, 1996 by the officer’s or employee’s annualized hourly rate of pay on July 1, 1996.” Section 44, ch. 4, FSSLA 1996 provides that nothing in that Act, which added subsection (b), “modifies or terminates the terms of a collective bargaining agreement in effect on July 1, 1996.” Under § 45, ch. 4, FSSLA 1996, the provisions of that act, which added subsection (b), are not severable, notwithstanding AS 01.10.030 .

Legislative history reports. —

For governor’s transmittal letter concerning the 2013 changes to this section made in secs. 4 and 5, ch. 47, SLA 2013 (SB 95), see 2013 Senate Journal 888 — 890.

Sec. 39.20.210. Determining years of service.

In determining years of service for the purpose of computing personal leave, all service with the Territory and State of Alaska is included. A change in the rate of accrual of personal leave by an officer or employee takes effect upon the beginning of the monthly pay period following the monthly pay period in which the officer or employee completes the prescribed period of service.

History. (§ 11-5-6 b ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 2 ch 136 SLA 1978)

Sec. 39.20.220. Requirement that employment be continuous.

Notwithstanding AS 39.20.200 , an officer or employee is entitled to personal leave only after having been employed currently for a continuous period of 30 days under one or more appointments without break in service. When an officer or employee completes a period of continuous employment of 30 days, an amount of personal leave is credited to the officer or employee equal to the amount which, but for this section, would have accrued under AS 39.20.200 during the period.

History. (§ 11-5-6 c ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 3 ch 136 SLA 1978)

Sec. 39.20.225. Use of personal leave.

1. An officer or employee may take personal leave at any time business permits upon permission by the head of the department or agency for which the officer or employee works.
2. An officer or employee may take personal leave for medical reasons, regardless of whether business permits, upon permission by the head of the department or agency for which the officer or employee works.  A department or agency head shall grant personal leave for medical reasons if the department or agency head is satisfied that the officer or employee is absent for medical reasons.  The taking of personal leave for medical reasons shall be reduced by the amount of wage continuation payments made under AS 23.30 (Alaska Workers’ Compensation Act). The following constitute “medical reasons” and are subject to the conditions noted:
   1. medical disability of an officer or employee is a medical reason for taking personal leave.  A department or agency head may require a doctor’s certificate showing the disability if the absence exceeds three consecutive working days;
   2. medical disability of a member of an officer’s or employee’s immediate family is a medical reason for taking personal leave if the disability is such that the attendance of the officer or employee is required. A department or agency head may require a doctor’s certificate showing the disability if the absence exceeds three consecutive working days;
   3. a medical condition of an officer or employee that makes presence at work a danger to the health of fellow employees is a medical reason for taking personal leave.  A department or agency head may require a doctor’s certificate showing the condition if the absence exceeds three consecutive working days;
   4. pregnancy and childbirth or the placement of a child, other than the employee’s stepchild, with the employee for adoption is a medical reason for an officer or employee to take personal leave;
   5. death of a member of an officer’s or employee’s immediate family is a medical reason for taking personal leave. No more than five days of personal leave may be taken for this purpose.
3. Except as otherwise provided in this section, each officer or employee shall, during each 12-month period, take at least 10 days of personal leave. If the officer or employee does not take at least 10 days of personal leave during a 12-month period, the difference between 10 days and the amount of personal leave taken shall be canceled without pay unless the department or agency head certifies in writing that the officer or employee was denied the opportunity to take 10 days of personal leave during the 12-month period.

History. (§ 4 ch 136 SLA 1978; am § 8 ch 96 SLA 1992; am § 6 ch 47 SLA 2013)

Administrative Code. —

For leave, see 2 AAC 7, art. 11.

For leave rules, see 2 AAC 8.

Effect of amendments. —

The 2013 amendment, effective December 16, 2013, in (c), substituted “Except as otherwise provided in this section, each officer or employee” for “Each officer and employee”, substituted “10 days” for “five days” four times.

Legislative history reports. —

For governor’s transmittal letter concerning the 2013 changes to this section made in sec. 6, ch. 47, SLA 2013 (SB 95), see 2013 Senate Journal 888 — 890.

Sec. 39.20.230. When annual leave may be taken. [Repealed, § 15 ch 136 SLA 1978. For current law see AS 39.20.225.]

Sec. 39.20.240. Accumulation of personal leave.

1. Except as provided in AS 39.20.225(c) and this section, personal leave that is not taken by an officer or employee during a 12-month period accumulates for use in succeeding 12-month periods.
2. Notwithstanding (a) of this section, an officer or employee may not accumulate more than 1,000 hours of personal leave at the end of each 12-month period for use in succeeding 12-month periods.
3. The personnel board may adopt regulations to allow an exemption from the requirements of (b) of this section if the department or agency head certifies in writing that the officer or employee accumulated more than 1,000 hours of leave at the end of a 12-month period because the officer or employee was denied the opportunity to use personal leave.
4. Each officer or employee who has a balance of accumulated personal leave in excess of 400 hours on December 16, 2013, shall, until that balance becomes 400 hours or less,
   1. be exempt from the limitation under (b) of this section; and
   2. take at least 15 days of personal leave during each 12-month period.
5. Unless the head of an agency or department certifies in writing that an officer or employee of the agency or department who is subject to the requirements of (d) of this section was denied the opportunity to take at least 15 days of personal leave during a 12-month period, 15 days of personal leave minus the number of days of personal leave that was taken by the officer or employee shall be subtracted from the accrued personal leave balance of the officer or employee. The leave subtracted from accrued personal leave shall be canceled without pay.

History. (§ 11-5-6 e ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 1 ch 37 SLA 1967; am § 1 ch 31 SLA 1971; am § 1 ch 151 SLA 1972; am § 5 ch 136 SLA 1978; am §§ 7, 8 ch 47 SLA 2013)

Effect of amendments. —

The 2013 amendment, effective December 16, 2013, in (a), inserted “and this section,” following “provided in AS 39.20.225(c) ”; added (b) through (e).

Legislative history reports. —

For governor’s transmittal letter concerning the 2013 changes to this section made in ch. 47, SLA 2013 (SB 95), see 2013 Senate Journal 888 — 890.

Sec. 39.20.245. Donation of leave.

1. An officer or employee may donate one or more days of personal leave a year to the memorial education revolving loan fund, or to an education loan account in the fund, under AS 14.43.250 — 14.43.325 .  The commissioner of administration shall pay to the account of the memorial education revolving loan fund, or to an education loan account in the fund, an amount equal to the value of the day or days of personal leave contributed by the officer or employee.
2. An officer or employee, with the approval of the person authorizing the employment, may donate accrued personal or annual leave to another officer or employee only for use as leave for medical reasons. The official responsible for employee accounts shall debit the donor’s personal or annual leave account and credit the donee’s personal leave account, or sick leave account, as appropriate, for medical reasons only, by converting the donated leave into cash value at the donor’s rate of pay and reconverting the cash value to hours of leave at the donee’s rate of pay. Leave donated under this subsection is not leave taken by the donor for purposes of AS 39.20.225(c) . An employee who is covered by a collective bargaining agreement may donate leave to or receive donations of leave from an employee or officer who is not covered by a collective bargaining agreement, notwithstanding AS 39.20.310 (7) and (8).

History. (§ 2 ch 33 SLA 1969; am § 23 ch 136 SLA 1974; am § 6 ch 136 SLA 1978; am § 1 ch 75 SLA 1981; am § 1 ch 1 SLA 1985; am § 2 ch 80 SLA 2008)

Revisor’s notes. —

In 2001, in accordance with § 45, ch. 85, SLA 2001, in subsection (a) “education” was substituted for “scholarship” and “an education loan account” was substituted for “a scholarship account.”

Administrative Code. —

For leave rules, see 2 AAC 8.

Sec. 39.20.250. Terminal leave.

1. Terminal leave for unused personal leave shall be allowed upon separation from service. The payment equals the cash value of the officer’s or employee’s personal leave balance at the time of separation from state service.
2. [Repealed, § 20 ch 4 FSSLA 1996.]
3. The payment authorized by this section is not considered salary or compensation except for purposes of taxation.

History. (§ 11-5-6 f ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 7 ch 136 SLA 1978; am § 1 ch 16 SLA 1979; am §§ 10, 20 ch 4 FSSLA 1996)

Administrative Code. —

For leave rules, see 2 AAC 8.

Editor’s notes. —

Section 43, ch. 4, FSSLA 1996 provides that, for the purposes of implementing the amendments to subsection (a) made by § 10, ch. 4, FSSLA 1996, “the beginning total cash value of an officer’s or employee’s personal leave balance on July 1, 1996 is calculated by multiplying the officer’s or employee’s personal leave balance as of June 30, 1996 by the officer’s or employee’s annualized hourly rate of pay on July 1, 1996.” Section 44, ch. 4, FSSLA 1996 provides that nothing in that Act, which amended subsection (a), “modifies or terminates the terms of a collective bargaining agreement in effect on July 1, 1996.” Under § 45, ch. 4, FSSLA 1996, the provisions of that act, which amended subsection (a), are not severable, notwithstanding AS 01.10.030 .

Opinions of attorney general. —

Application to judicial and permanent legislative employees of the general laws of the state covering leave, including the Department of Administration’s regulation on terminal leave, does not infringe upon the power of the judicial and legislative branches to supervise, hire, or discharge personnel, or the power to determine employee salaries. April 9, 1985 Op. Att’y Gen.

Sec. 39.20.255. Conversion of accrued annual leave to personal leave.

An officer or employee who has accrued annual leave shall have that annual leave transferred to the officer’s or employee’s personal leave account.

History. (§ 8 ch 136 SLA 1978)

Administrative Code. —

For leave rules, see 2 AAC 8.

Sec. 39.20.256. Transfer of accrued medical leave.

1. An officer or employee who has accrued medical leave shall have 40 percent of that medical leave transferred to the officer’s or employee’s personal leave account and 60 percent of that medical leave transferred to a medical leave bank. Banked medical leave may be taken only in accordance with this section.
2. An officer or employee may not take any banked medical leave unless the officer or employee
   1. has no accrued personal leave; and
   2. has a medical disability exceeding 10 consecutive working days in duration; or
   3. has a medical disability exceeding 30 consecutive working days in duration.
3. Once the requirements of (b) and (d) of this section have been met, an officer or employee may take banked medical leave until the medical disability is terminated or the banked medical leave is exhausted. If an officer or employee qualifies for banked medical leave under (b)(3) of this section, the banked medical leave may be taken for all working days of the medical disability following the 10th working day of the disability.
4. When leave is taken under (b)(1) and (2) of this section, a department or agency head may require a doctor’s certificate showing the disability.  When leave is taken under (b)(3) of this section, the officer or employee must submit a doctor’s certificate showing the disability.
5. The taking of leave under this section shall be reduced by the amount of wage continuation payments made under AS 23.30 (Alaska Workers’ Compensation Act).
6. Upon an officer’s or employee’s separation from state service, the officer’s or employee’s banked medical leave shall be canceled without pay.

History. (§ 8 ch 136 SLA 1978; am §§ 1 — 3 ch 52 SLA 1979)

Administrative Code. —

For leave rules, see 2 AAC 8.

Sec. 39.20.260. Medical leave. [Repealed, § 15 ch 136 SLA 1978. For current law see AS 39.20.225(b).]

Sec. 39.20.270. Court leave.

Notwithstanding AS 39.20.310 (6), court leave shall be granted to an employee who is classified as full time, whether permanent, nonpermanent, or temporary. An officer or employee called to serve as a juror or subpoenaed as a witness is entitled to administrative leave with pay, but compensation received by the employee or to which the employee is entitled, whichever is greater, for service as a juror or witness shall be deducted from pay to which the employee is entitled as a state officer or employee.

History. (§ 11-5-6 h ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 1 ch 39 SLA 1984; am § 3 ch 80 SLA 2008)

Sec. 39.20.275. Leave for organ or bone marrow donation.

1. Notwithstanding AS 39.20.310 (1) — (3) and (6) — (8), paid administrative leave of not more than 80 hours and not less than 40 hours, unless the employee requests fewer hours, shall be granted under this section to an employee who requests leave to make a personal organ or bone marrow donation. Paid administrative leave may include time spent on a screening process to determine whether the employee is a compatible donor.
2. The director of personnel in the Department of Administration shall adopt regulations to implement this section.
3. Nothing in this section authorizes employees to request leave for contribution to or for withdrawal from a leave pool.
4. In this section, “employee” means a paid employee of the executive, judicial, or legislative branch of state government, a state public corporation or council established by law, or the University of Alaska, whether the employee is a permanent, nonpermanent, or temporary employee, who is employed for an average of 30 or more scheduled hours each week.

History. (§ 4 ch 80 SLA 2008)

Sec. 39.20.280. Maternity leave. [Repealed, § 2 ch 67 SLA 1974. For current law see AS 39.20.225(b)(4).]

Sec. 39.20.290. Definition of days of leave.

The days of leave provided for in AS 39.20.200 — 39.20.330 mean days upon which an officer or employee would otherwise work and receive pay, and are exclusive of holidays.

History. (§ 11-5-6 j ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960)

Sec. 39.20.295. Special regulations on leave period.

In accord with the procedures established in AS 39.20.320 , the Department of Administration shall adopt regulations defining and establishing a uniform beginning and a uniform concluding date for the 12-month periods applicable to leave use and accumulation by officers and employees of state government.

History. (§ 2 ch 151 SLA 1972)

Sec. 39.20.300. Personal and banked medical leave transfers with officer or employee.

When an officer or employee terminates employment with one department, office, institution, or agency of the state government and is employed by another department, office, institution, or agency of the state government without break in service, accumulated personal leave and banked medical leave also transfer and shall be credited to the officer or employee in the employing department, office, institution, or agency.

History. (§ 11-5-6 k ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 9 ch 136 SLA 1978)

Sec. 39.20.305. Family and health leave.

1. An officer or employee of the state who is otherwise qualified to take leave of absence may take family leave because of a serious health condition for a total of 18 workweeks during any 24-month period. An otherwise qualified officer or employee may take family leave because of pregnancy and childbirth or adoption for a total of 18 workweeks within a 12-month period; the right to take leave for this reason expires on the date one year after the birth or placement of the child. An officer or employee taking leave under this section shall use accrued paid leave until the officer or employee has only five days of paid leave remaining. The officer or employee may choose whether to retain a balance of five days of paid leave and take the remaining leave as unpaid leave or whether to exhaust the paid leave balance. After reducing accrued paid leave as required by this subsection, the officer or employee may take leave without pay for the balance of the family leave. If the employee is entitled to a longer period of time under AS 39.20.500 , then the longer period applies. An eligible employee is entitled to take family leave
   1. because of pregnancy and the birth of a child of the employee or the placement of a child, other than the employee’s stepchild, with the employee for adoption; the department or agency may require that an employee using family leave under this paragraph take the leave in a single block of time;
   2. in order to care for the employee’s child, spouse, or parent who has a serious health condition; in this paragraph, “child” includes the employee’s biological, adopted, or foster child, stepchild, or legal ward; and
   3. because of the employee’s own serious health condition.
2. If the necessity for family leave under (a) of this section is foreseeable based on an expected birth or adoption or on planned medical treatment or supervision, the employee shall provide the employee’s department or agency head with prior notice of the expected need for leave in a manner that is reasonable and practicable. If the necessity for leave under this section is foreseeable based on planned medical treatment or supervision, the employee shall also make a reasonable effort to schedule the treatment or supervision so as not to disrupt unduly the operations of the state department or agency, subject to the approval of the health care provider of the employee or the employee’s child, spouse, or parent.
3. Notwithstanding (a) of this section, if a parent or child of two employees employed by the state has a serious health condition, the state is not required to grant family leave to both employees simultaneously.
4. In this section, “child,” “health care provider,” “parent,” and “serious health condition” have the meanings given in AS 39.20.550 .

History. (§ 9 ch 96 SLA 1992)

Revisor’s notes. —

In 2002, “AS 39.20.500 ” was substituted for “AS 23.10.500 ” in subsection (a), and “AS 39.20.550 ” was substituted for “AS 23.10.550” in subsection (d) to reflect the 2002 renumbering of AS 23.10.500 and 23.10.550.

Collateral references. —

Who is eligible employee under § 101(2) of Family and Medical Leave Act (29 U.S.C.A. § 2611(2)), 166 ALR Fed. 569.

Adequacy of notice to employer of need for leave under Federal Family and Medical Act of 1993, 184 ALR Fed. 171.

Sec. 39.20.310. Exceptions.

Except as provided in AS 39.20.275 , AS 39.20.200 — 39.20.330 do not apply to

1. members of the state legislature, the governor, the lieutenant governor, and justices and judges of the supreme and superior courts and of the court of appeals, but nothing in AS 39.20.200 — 39.20.330 may be construed to diminish the salaries fixed by law for these officers by reason of absence from duty on account of illness or otherwise;
2. magistrates serving the state on less than a full-time basis;
3. officers, members of the teaching staff, and employees of the University of Alaska;
4. persons employed in a professional capacity to make a temporary and special inquiry, study, or examination as authorized by the governor, the legislature, or a legislative committee;
5. members of boards, commissions, and authorities who are not otherwise employed by the state;
6. temporary employees hired for periods of less than 12 consecutive months;
7. persons employed by the division of marine transportation as masters and members of the crews operating the state ferry system who are covered by collective bargaining agreements as provided in AS 23.40.040 , except as expressly provided by law;
8. persons employed by the state who are covered by collective bargaining agreements as provided in AS 23.40.210 , except as expressly provided by law.

History. (§ 11-5-61 ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 1 ch 134 SLA 1961; am § 4 ch 93 SLA 1962; am § 3 ch 24 SLA 1966; am § 1 ch 62 SLA 1972; am § 10 ch 136 SLA 1978; am § 26 ch 12 SLA 1980; am § 76 ch 59 SLA 1982; am §§ 2, 3 ch 1 SLA 1985; am § 5 ch 80 SLA 2008)

Administrative Code. —

For leave rules, see 2 AAC 8.

Sec. 39.20.320. Adoption of regulations.

The director of the division of personnel in the Department of Administration shall prepare and submit regulations necessary to carry out the intent of AS 39.20.200 — 39.20.330 . These regulations must include provisions for crediting and, if necessary, converting accrued leave when an officer or employee transfers, without break in service, between a department or agency of the state government where the officer or employee is subject to AS 39.20.200 — 39.20.330 and a department or agency of the state government where the officer or employee is not subject to AS 39.20.200 — 39.20.330. These regulations shall be submitted to the commissioner of administration. The commissioner of administration shall review the regulations and submit them to the personnel board. The regulations, or any part of the regulations, have the force and effect of law 30 days after they are submitted to the personnel board if not disapproved by the personnel board. Amendments to the regulations shall be prepared and submitted in the same manner, and have the force and effect of law 30 days after they are submitted to the personnel board, if not disapproved by the personnel board. The regulations adopted under AS 39.20.200 — 39.20.330 relate to the internal management of state agencies and their adoption is not subject to the provisions of AS 44.62 (Administrative Procedure Act).

History. (§ 11-5-6 m ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 11 ch 136 SLA 1978; am § 77 ch 59 SLA 1982)

Administrative Code. —

For leave rules, see 2 AAC 8.

Sec. 39.20.330. Departments to keep leave records.

Each department, office, institution, or agency of the state government shall keep for its files a complete leave record, covering each of its officers and employees, on forms prepared and supplied by the Department of Administration. These records are subject to annual audit and approval by the director of personnel of the Department of Administration.

History. (§ 11-5-6 n ACLA 1949; am § 1 ch 182 SLA 1957; am § 1 ch 145 SLA 1960; am § 12 ch 136 SLA 1978)

Sec. 39.20.340. Leave of absence for reserve or auxiliary members of armed forces.

1. An employee of the state, or a political subdivision, with the approval of the city council or borough assembly, who is a member of a reserve or auxiliary component of the United States Armed Forces is entitled to a leave of absence without loss of pay, time or efficiency rating on all days during which the employee is ordered to training duty, as distinguished from active duty, with troops or at field exercises, or for instruction, or when under direct military control in the performance of a search and rescue mission. The leave of absence may not exceed 16 1/2 working days in any 12-month period.
2. If an employee is called to active duty by the governor, an employee otherwise qualified under (a) of this section is entitled to five days leave of absence without loss of pay, time, or efficiency rating.

History. (§ 1 ch 20 SLA 1951; am § 1 ch 154 SLA 1970; am § 4 ch 151 SLA 1972; am § 1 ch 49 SLA 1976)

Revisor’s notes. —

Chapter 49, SLA 1976 changed “12-month period” back to “calendar year” in the last sentence of subsection (a). As this change was the result of drafting error, “12-month period” has been retained.

Sec. 39.20.345. Continuation of pay and benefits for certain members of the reserve and auxiliary units of the armed forces.

1. Notwithstanding any contrary provision of law, the governor, through the issuance of an administrative order, may authorize state employees who are members of a reserve or auxiliary component of the armed forces of the United States, including the organized militia of Alaska, consisting of the Alaska National Guard, the Alaska Naval Militia, and the Alaska State Defense Force, and who are called to active duty by the appropriate state or federal authority to continue to receive the equivalent of their state compensation and some or all of their state benefits.
2. The Department of Administration shall implement an order issued by the governor under this section. The Department of Administration may adopt emergency regulations to implement an order issued by the governor under this section, including regulations regarding the scope of compensation and benefits and any allocation between the state and the state employee of contributions relating to the benefits. Emergency regulations adopted under this section
   1. are not subject to AS 44.62 (Administrative Procedure Act); and
   2. take effect immediately unless the Department of Administration specifies another date.
3. In this section, “benefits” includes credited service in a state retirement system, membership in the supplemental employee benefits system under AS 39.30.150 — 39.30.180 , and group life and health insurance provided under AS 39.30.090 — 39.30.095 or under a collective bargaining agreement.

History. (§ 1 ch 65 SLA 2003)

Cross references. —

For applicability of this section to state employees covered by collective bargaining agreements in effect on June 12, 2003, see § 2, ch. 65, SLA 2003, in the 2003 Temporary and Special Acts.

Sec. 39.20.350. Restoration of reserve members to former positions.

A member of a reserve component of the United States Armed Forces employed by the state, a political subdivision, or a municipal corporation with the approval of the city council, who is ordered to duty by proper authority, shall, when relieved from duty, be restored to the position the employee held when ordered to duty.

History. (§ 2 ch 20 SLA 1951)

Cross references. —

For Uniformed Services Employment and Reemployment Rights Act of 1994, see 38 U.S.C. 4301 et seq.

Sec. 39.20.360. Order of payment.

All unpaid compensation due to a deceased employee of the state at the time of death shall be paid to the person or persons surviving at the date of death, in the following order of precedence, and the payment is a bar to recovery by any other person of amounts so paid:

1. to the beneficiary or beneficiaries designated by the employee in writing to receive the compensation filed with Department of Administration at the time of death; if more than one beneficiary is designated, each shall share equally unless the employee specifies a different allocation or preference;
2. if there is no beneficiary designated, to the surviving spouse;
3. if there is no beneficiary or surviving spouse, to the employee’s child or children and descendants of deceased children by representation;
4. if none of the above, to the employee’s parents, or the survivor of them;
5. if none of the above, to the legal representative of the employee’s estate, or if there is none, to the person determined to be entitled under the laws of the employee’s domicile.

History. (§ 1 ch 72 SLA 1964)

Sec. 39.20.370. Inapplicability of provisions to certain benefits, funds, or interest.

AS 39.20.360 — 39.20.400 do not apply to any benefit, refund, or interest payable under the Public Employees’ Retirement System applicable to the decedent’s service or to an amount the disposition of which is otherwise expressly prescribed by state law.

History. (§ 1 ch 72 SLA 1964)

Revisor’s notes. —

In 1991, the reference in this section to AS 39.20.360 was substituted for a reference to AS 39.20.310 to correct a manifest error in ch. 72, SLA 1964.

Cross references. —

For the Public Employees’ Retirement System, see AS 39.35.

Sec. 39.20.380. Change or revocation of designation.

The employee may change or revoke a designation made under AS 39.20.360 — 39.20.400 at any time without notice to the beneficiary by written notice filed with the Department of Administration.

History. (§ 1 ch 72 SLA 1964)

Revisor’s notes. —

In 1991, the reference in this section to AS 39.20.360 — 39.20.400 was substituted for a reference to “this chapter” to correct a manifest error in ch. 72, SLA 1964.

Sec. 39.20.390. Employees to be informed.

Each department shall inform its employees of the provisions of AS 39.20.360 — 39.20.400 .

History. (§ 1 ch 72 SLA 1964)

Revisor’s notes. —

In 1991, the reference in this section to AS 39.20.360 — 39.20.400 was substituted for a reference to “this chapter” to correct a manifest error in ch. 72, SLA 1964.

Sec. 39.20.400. Definitions.

In AS 39.20.360 — 39.20.400 ,

1. “employee” means a person entitled to receive unpaid compensation from the state;
2. “unpaid compensation” means the pay, salary, or allowances, or other compensation due on account of the services of the decedent for the state.

History. (§ 1 ch 72 SLA 1964)

Revisor’s notes. —

In 1991, the reference in this section to AS 39.20.360 was substituted for a reference to AS 39.20.310 to correct a manifest error in ch. 72, SLA 1964.

Sec. 39.20.500. Employment benefits and privileges for health and family care.

1. An employer shall grant an employee whose health is affected by pregnancy, childbirth, or a related medical condition the same employment benefits and privileges that the employer grants to other employees with similar ability to work who are not so affected, including allowing the employee to take disability or sick leave or other accrued leave that the employer makes available to temporarily disabled employees.
2. An employee is eligible to take family leave if the employee has been employed by the employer for at least 35 hours a week for at least six consecutive months or for at least 17 1/2 hours a week for at least 12 consecutive months immediately preceding the leave. The leave may be unpaid leave. However, the employee may choose to substitute, or the employer may require the employee to substitute, accrued paid leave to which the employee is entitled. An employer shall permit an eligible employee to take family leave because of a serious health condition for a total of 18 workweeks during any 24-month period. An employer shall permit an eligible employee to take family leave because of pregnancy and childbirth or adoption for a total of 18 workweeks within a 12-month period; the right to take leave for this reason expires on the date one year after the birth or placement of the child. If the employee is entitled to a longer period of time under (a) of this section, then the longer period applies. An eligible employee is entitled to take family leave
   1. because of pregnancy and the birth of a child of the employee or the placement of a child, other than the employee’s stepchild, with the employee for adoption; an employer may require that an employee using family leave under this paragraph take the leave in a single block of time;
   2. in order to care for the employee’s child, spouse, or parent who has a serious health condition; in this paragraph, “child” includes the employee’s biological, adopted, or foster child, stepchild, or legal ward; and
   3. because of the employee’s own serious health condition.
3. Notwithstanding (b) of this section, if a parent or child of two employees employed by the same employer has a serious health condition, the employer is not required to grant family leave to both employees simultaneously.
4. During the time that an employee is on leave under this section, the employer shall maintain coverage under any group health plan at the level and under the conditions that coverage would have been provided if the employee had been employed continuously from the date the leave began to the date the employee returns from leave under (e) of this section. However, the employer may require that the employee pay all or part of the costs for maintaining health insurance coverage during a period of unpaid leave.
5. Unless the employer’s business circumstances have changed to make it impossible or unreasonable, when an employee returns from leave under this section, the employer shall restore the employee
   1. to the position of employment held by the employee when the leave began; or
   2. to a substantially similar position with substantially similar benefits, pay, and other terms and conditions of employment.
6. This section does not apply to an employer’s small employment facility if the total number of employees employed within 50 road miles of the small employment facility, including those employed at the facility, was fewer than 21 during the 20 consecutive workweeks in which the employer employed at least 21 employees at all business facilities.

History. (§ 6 ch 96 SLA 1992)

Revisor’s notes. —

Formerly AS 23.10.500 . Renumbered in 2002.

Collateral references. —

Adequacy of notice to employer of need for leave under Federal Family and Medical Leave Act 1993, 184 ALR Fed. 171.

Sec. 39.20.510. Employee notice.

If the necessity for leave under AS 39.20.500 is foreseeable based on an expected birth or adoption or on planned medical treatment or supervision, the employee shall provide the employer with prior notice of the expected need for leave in a manner that is reasonable and practicable. If the necessity for leave under that section is foreseeable based on planned medical treatment or supervision, the employee shall also make a reasonable effort to schedule the treatment or supervision so as not to disrupt unduly the operations of the employer, subject to the approval of the health care provider of the employee or the employee’s child, spouse, or parent.

History. (§ 6 ch 96 SLA 1992)

Revisor’s notes. —

Formerly AS 23.10.510. Renumbered in 2002, at which time “AS 39.20.500 ” was substituted for “AS 23.10.500 ” to reflect the 2002 renumbering of AS 23.10.500 .

Sec. 39.20.520. Employee transfer.

1. A pregnant employee may request a transfer to a suitable position under this section. An employer may not fill the position with a person other than the requesting employee until the employer has offered the position to the employee and the employee has refused the offer. A position is suitable if
   1. it is an existing unfilled position in the same administrative division in which the employee is currently employed and is less strenuous or less hazardous than the employee’s current position;
   2. transfer to the position is recommended by a licensed health care provider;
   3. the employee is qualified and immediately able to perform the duties of the position; and
   4. the transfer will not subject the employer to legal liability under a collective bargaining contract or employment contract.
2. An employer shall compensate an employee who receives a transfer under this section at a rate at least equal to the lesser of the rate, as adjusted by changes to compensation that apply generally to the work force, at which
   1. the employee was compensated immediately before requesting the transfer; or
   2. the position into which the employee transfers is compensated.

History. (§ 6 ch 96 SLA 1992)

Revisor’s notes. —

Formerly AS 23.10.520. Renumbered in 2002.

Administrative Code. —

For appointments, see 2 AAC 7, art. 5.

Sec. 39.20.530. Application to other laws.

1. The provisions of AS 39.20.500 — 39.20.550 do not affect any other provision of law relating to sex discrimination, pregnancy, or parenthood.
2. The provisions of AS 39.20.500 — 39.20.550 are subject to collective bargaining. However, except as provided in (c) of this section, a collective bargaining contract that does not contain benefit provisions at least as beneficial to the employee as those provided by AS 39.20.500 — 39.20.550 shall be considered to contain the benefit provisions of those statutes.
3. The commissioner of education and early development may approve a collective bargaining agreement entered into between a school district or a regional educational attendance area and a bargaining organization representing certificated employees that does not meet the leave requirements of AS 39.20.500 — 39.20.550 , if the district or attendance area establishes to the satisfaction of the commissioner that a variance from the requirements of AS 39.20.500 — 39.20.550 is necessary to avoid a hardship on the school district based on the lack of qualified, available substitute teachers to replace teachers on leave under AS 39.20.500 — 39.20.550 or the lack of available housing for replacement teachers who do not live in the community.

History. (§ 6 ch 96 SLA 1992)

Revisor’s notes. —

Formerly AS 23.10.530. Renumbered in 2002, at which time “AS 39.20.500 — 39.20.550 ” was substituted for “AS 23.10.500 — 23.10.550” throughout this section to reflect the 2002 renumbering of AS 23.10.500 — 23.10.550.

In 1999, “commissioner of education” was changed to “commissioner of education and early development” in (c) of this section in accordance with § 89, ch. 58, SLA 1999.

Sec. 39.20.540. Investigation and conciliation of complaints.

1. A person aggrieved by a denial of a right or privilege granted by AS 39.20.500 — 39.20.540 may file a complaint with the Department of Labor and Workforce Development.
2. The Department of Labor and Workforce Development shall informally, promptly, and impartially investigate the matters set out in a filed complaint. If the investigator determines that the allegations are supported by substantial evidence, the investigator shall immediately try to eliminate the denial of rights or privileges by conference, conciliation, and persuasion.

History. (§ 6 ch 96 SLA 1992)

Revisor’s notes. —

Formerly AS 23.10.540. Renumbered in 2002, at which time “AS 39.20.500 — 39.20.540 ” was substituted for “AS 23.10.500 — 23.10.540” to reflect the 2002 renumbering of AS 23.10.500 — 23.10.540, and “of labor and workforce development” was inserted after both occurrences of “department” in order to retain the applicability of the definition of “department” in AS 23.90.900 .

Sec. 39.20.550. Definitions.

In AS 39.20.500 — 39.20.550 ,

1. “child” means an individual who is
   1. under 18 years of age; or
   2. 18 years of age or older and incapable of self-care because of mental or physical disability;
2. “employer” means the state and a political subdivision of the state that employed at least 21 employees in the state for each working day during any period of 20 consecutive workweeks in the preceding two calendar years; “employer” does not include a regional Native housing authority created under AS 18.55.995 — 18.55.998 ;
3. “health care provider” means a dentist licensed under AS 08.36, a physician licensed under AS 08.64, or a psychologist licensed under AS 08.86;
4. “parent” means a biological or adoptive parent, a parent-in-law, or a stepparent;
5. “serious health condition” means an illness, injury, impairment, or physical or mental condition that involves
   1. inpatient care in a hospital, hospice, or residential health care facility; or
   2. continuing treatment or continuing supervision by a health care provider;
6. “small employment facility” means a facility of an employer that did not employ 21 or more employees during any period of 20 consecutive workweeks in the preceding two calendar years;
7. “state” includes the University of Alaska, the Alaska Railroad, and the executive, legislative, and judicial branches of state government including public and quasi-public corporations and authorities established by law.

History. (§ 6 ch 96 SLA 1992)

Revisor’s notes. —

Formerly AS 23.10.550. Renumbered in 2002, at which time “AS 39.20.500 — 39.20.550 ” was substituted for “AS 23.10.500 — 23.10.550” to reflect the 2002 renumbering of AS 23.10.500 — 23.10.550.

Secs. 39.23.010 — 39.23.130. Alaska Salary Commission. [Repealed, § 37 ch 3 SLA 1980.]

Secs. 39.23.200 — 39.23.400. Compensation commission established; prohibitions against state or municipal service; compensation; staff; duties of the commission; filing with lieutenant governor and certification; policy of the legislature; administrative procedure act; definition. [Repealed, § 16 ch 21 SLA 2008.]

Sec. 39.23.500. Compensation commission established.

1. The State Officers Compensation Commission is established. The commission is composed of five members who are state residents appointed by the governor. One member shall be appointed from a list of two or more candidates submitted by the president of the senate. One member shall be appointed from a list of two or more candidates submitted by the speaker of the house of representatives. Members serve for staggered terms of four years. Except as provided in AS 39.05.080 (4), a vacancy shall be filled for the balance of the unexpired term. A commission member may serve not more than two complete consecutive terms.
2. The commission shall annually elect a member to chair its meetings. A majority of the commission members constitutes a quorum to transact business. The affirmative vote of three members is required to approve the commission’s recommendations on compensation.
3. The commission shall meet at the call of the chair. Notice of a meeting shall be mailed to each member at least 20 days before the date scheduled for the meeting.
4. The commission shall meet to discuss its findings and recommendations at least twice before submitting its final report to the presiding officers of each house of the legislature and the governor.
5. For budgetary purposes, the commission shall be established in the Department of Administration.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.510. Prohibitions against state or municipal service.

1. During membership on the commission, a member of the commission may not
   1. be employed by the state, including the University of Alaska;
   2. serve as a member of another state board, commission, or authority; or
   3. hold elective state or municipal office.
2. A member of the commission may not, in the four years preceding that member’s appointment, have served in an office or position for which the commission shall submit a recommendation under AS 39.23.540 .

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.520. Compensation.

Members of the commission serve without compensation but are entitled to per diem and travel expenses authorized for members of boards and commissions under AS 39.20.180 .

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.530. Staff.

The director of personnel in the Department of Administration shall serve as ex officio secretary to the commission and provide research, technical, and administrative services.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.540. Duties of the commission.

1. The commission shall review the salaries, benefits, and allowances of members of the legislature, the governor, the lieutenant governor, and each principal executive department head and prepare a report on its findings at least once every two years, but not more frequently than every year. The commission shall notify the legislature that the report is available.
2. The commission may request reports or studies from any state agency as to the rate and form of compensation, benefits, and allowances for legislators, the governor, the lieutenant governor, and each executive department head. A state agency from which a report or a study is requested shall furnish it within a period of time prescribed by the commission.
3. By November 15, the commission shall prepare its preliminary findings and recommendations for compensation of state officers that is reasonable and equitable. The commission shall give reasonable public notice of its preliminary findings and recommendations, solicit public comments, and give due regard to the public comments, before submitting a final report under (d) of this section.
4. The commission shall make available to the governor and presiding officers of each house of the legislature a final report of its findings and recommendations as to the rate and form of compensation, benefits, and allowances for legislators, the governor, the lieutenant governor, and each principal executive department head during the first 10 days of a legislative session. Subject to AS 24.10.130(b) and (g) of this section, and unless a bill disapproving all the recommendations for all officers listed in this section is enacted into law within 60 days after the recommendations are submitted to the governor and presiding officers of each house of the legislature, a recommendation as to the compensation, benefits, and allowances for
   1. a legislator has the force of law and becomes effective on the first day of the next regular legislative session; and
   2. the governor, the lieutenant governor, and each principal executive department head has the force of law and becomes effective on the first day of the fiscal year following the fiscal year in which the recommendation is submitted.
5. The commission may prepare amendments to the report submitted under (d) of this section and notify the legislature that the amendments are available.
6. A commission member who does not concur in the proposed or final recommendations may attach written objections to the commission’s report of its findings and recommendations.
7. A recommendation under this section increasing the compensation, benefits, and allowances of a public officer is not effective unless all recommended increases included in the final report under (d) of this section are fully funded by appropriations.

History. (§ 10 ch 21 SLA 2008; am § 12 ch 61 SLA 2018)

Cross references. —

For 2014 legislative rejection of commission’s salary recommendations for the governor, lieutenant governor, and department heads, see ch. 4, SLA 2014.

Effect of amendments. —

The 2018 amendment, effective July 20, 2018, in the second sentence in the introductory language in (d), inserted “AS 24.10.130(b) and” following “Subject to”. Although the 2018 amendment was to have taken effect July 1, 2018, under sec. 17, ch. 61, SLA 2018, the governor did not sign the bill until July 19, 2018, and so the actual effective date of the amendment was July 20, 2018, under AS 01.10.070(d) .

Editor's notes. —

For provision relating to the severability of the 2018 amendment to this section, see sec. 15, ch. 61, SLA 2018, in the 2018 Temporary and Special Acts.

Sec. 39.23.550. Recommendations relating to compensation.

1. A recommendation of the commission may not have the effect of reducing the compensation or benefits of the governor and lieutenant governor who are in office or an executive department head who is appointed on or before the effective date of the commission’s recommendation.
2. The commission may recommend reduction in compensation for individuals who become governor, lieutenant governor, or an executive department head after the effective date of the commission’s recommendation.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.560. Recommendations relating to benefits.

The recommendations of the commission relating to benefits may not include any recommendation relating to health, retirement, disability, or death benefits under AS 39.30 and AS 39.35 for members of the legislature, the governor, the lieutenant governor, and each principal executive department head.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.570. Filing with lieutenant governor and certification.

The commission shall, on transmitting its final recommendations for the compensation of legislators, the governor, the lieutenant governor, and each principal executive department head to the legislature, file the recommendations in the office of the lieutenant governor. When the recommendations become effective, the commission shall certify the copy of the recommendations on file in the office of the lieutenant governor.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.580. Policy of the legislature.

It is the policy of the legislature that the commission recommend an equitable rate and form of compensation, benefits, and allowances for legislators.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.590. Administrative Procedure Act inapplicable.

AS 44.62 (Administrative Procedure Act) does not apply to proceedings of the commission.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.23.599. Definition.

In AS 39.23.500 — 39.23.599 , “commission” means the State Officers Compensation Commission.

History. (§ 10 ch 21 SLA 2008)

Sec. 39.25.010. Purpose of chapter.

1. It is the purpose of this chapter to establish a system of personnel administration based upon the merit principle and adapted to the requirements of the state to the end that persons best qualified to perform the functions of the state will be employed, and that an effective career service will be encouraged, developed, and maintained.
2. The merit principle of employment includes the following:
   1. recruiting, selecting, and advancing employees on the basis of their relative ability, knowledge, and skills, including open consideration of qualified applicants for initial appointment;
   2. regular integrated salary programs based on the nature of the work performed;
   3. retention of employees with permanent status on the basis of the adequacy of their performance, reasonable efforts of temporary duration for correction in inadequate performance, and separation for cause;
   4. equal treatment of applicants and employees with regard only to consideration within the merit principles of employment; and
   5. selection and retention of an employee’s position secure from political influences.

History. (§ 1 ch 144 SLA 1960; am § 1 ch 46 SLA 1980)

Sec. 39.25.020. Appointing authorities.

1. The authority to appoint to positions in the state service is as follows:
   1. the legislature is the appointing authority for all officers and employees of the legislature and the legislative agencies, but the authority to make appointments may be delegated;
   2. the governor is the appointing authority for all officers and employees of the executive branch, but the authority to make appointments may be delegated;
   3. the chief justice of the supreme court is the appointing authority for all administrative and clerical personnel of the state judicial system, but the authority to make appointments may be delegated;
   4. the board of regents is the appointing authority for all employees of the University of Alaska, but the authority to make appointments may be delegated.
2. Unless a waiver is granted by the commissioner of administration, an appointing authority may not appoint a person to state service if the person has been convicted under AS 11.56.845 . Before granting a waiver under this subsection, the commissioner shall give notice in writing to the Legislative Budget and Audit Committee of the intent to grant a waiver.

History. (§ 8 ch 144 SLA 1960; am § 3 ch 67 SLA 2003)

Revisor’s notes. —

In 2005, in subsection (b), “AS 11.56.845 ” was substituted for “AS 11.56.870 ” to reflect the 2005 renumbering of AS 11.56.870 .

Sec. 39.25.030. Division of personnel and board.

There is established within the Department of Administration a division of personnel. There is established within the division of personnel a personnel board.

History. (§ 9 ch 144 SLA 1960)

Sec. 39.25.040. Director of personnel.

The head of the division of personnel is the director of personnel appointed by the commissioner of administration and responsible to the commissioner of administration for the execution of the duties and responsibilities imposed by this chapter and the rules adopted under this chapter. The director of personnel shall have at least three years of practical working experience in the field of personnel administration.

History. (§ 10 ch 144 SLA 1960; am § 3 ch 82 SLA 1975; am § 1 ch 112 SLA 1982)

Sec. 39.25.050. Powers and duties of director.

1. The director of personnel shall direct and supervise the administrative and technical activities of the division of personnel. In addition to the other duties imposed on the director, the director shall
   1. administer this chapter and the personnel rules;
   2. encourage and exercise leadership in the development of effective personnel administration in the state government;
   3. develop, in cooperation with appointing authorities and others, programs for the improvement of employee effectiveness and morale;
   4. attend meetings of the personnel board and serve as secretary for the board;
   5. establish and maintain a roster of employees subject to this chapter;
   6. prepare the rules, not inconsistent with this chapter, that are required to implement and administer this chapter;
   7. perform other lawful acts that the director considers necessary or desirable to carry out the purposes of this chapter;
   8. administer the equal employment opportunity program under AS 39.28.
2. The director of personnel may contract with municipalities, private organizations, and other persons to provide personnel research or personnel training services for them and charge a fee for doing so.

History. (§ 14 ch 144 SLA 1960; am § 53 ch 36 SLA 1990; am E.O. No. 104 § 3 (2003))

Administrative Code. —

For appointments, see 2 AAC 7, art. 5.

For personnel evaluation and training, see 2 AAC 7, art. 7.

Sec. 39.25.060. Personnel board.

1. The personnel board is composed of three members appointed by the governor and confirmed by the legislature meeting in joint session.  The term of office of a member is six years.  A vacancy in an unexpired term shall be filled by appointment by the governor for the remainder of the term.  The appointment is subject to confirmation in the same manner as a full-term appointment.
2. Members of the board may not be employees of the state.  Not more than two members of the board may be members of the same political party.
3. A board member may be removed by the governor only for cause.
4. A member of the board may receive a per diem allowance and transportation expenses incurred in carrying out the member’s duties.

History. (§ 11 ch 144 SLA 1960; am § 2 ch 112 SLA 1982; am § 105 ch 6 SLA 1984; am § 2 ch 87 SLA 1986)

Cross references. —

For per diem and travel expenses, see AS 39.20.180 .

Sec. 39.25.070. Powers and duties of personnel board.

In addition to the other duties imposed by this chapter, the personnel board shall

1. approve or disapprove amendments to the personnel rules in accordance with AS 39.25.140 ;
2. consider and act upon recommendations for the extension of the partially exempt service and the classified service as provided in AS 39.25.130 ;
3. hear and determine appeals by employees in the classified service as provided in AS 39.25.170 ;
4. establish its own rules of procedure; two members constitute a quorum for the transaction of business and two affirmative votes are required for final action on matters acted upon by the board;
5. elect a chair from its membership;
6. have the power to administer oaths, subpoena witnesses, and compel the production of books and papers pertinent to a hearing authorized by this chapter;
7. employ staff members, who shall be in the classified service;
8. carry out its powers and duties under AS 39.52.

History. (§ 15 ch 144 SLA 1960; am §§ 3, 4 ch 112 SLA 1982; am § 3 ch 87 SLA 1986; am § 66 ch 74 SLA 1998)

Administrative Code. —

For classification, see 2 AAC 7, art. 1.

For recruitment and examination, see 2 AAC 7, art. 2.

For appointments, see 2 AAC 7, art. 5.

For probationary periods, see 2 AAC 7, art. 6.

For personnel evaluation and training, see 2 AAC 7, art. 7.

For pay, see 2 AAC 7, art. 8.

For separation and demotion, see 2 AAC 7, art. 9.

For disputes: hearings and appeals, see 2 AAC 7, art. 10.

Sec. 39.25.080. Personnel records confidential; exceptions.

1. State personnel records, including employment applications and examination and other assessment materials, are confidential and are not open to public inspection except as provided in this section.
2. The following information is available for public inspection, subject to reasonable regulations on the time and manner of inspection:
   1. the names and position titles of all state employees;
   2. the position held by a state employee;
   3. prior positions held by a state employee;
   4. whether a state employee is in the classified, partially exempt, or exempt service;
   5. the dates of appointment and separation of a state employee;
   6. the compensation authorized for a state employee; and
   7. whether a state employee has been dismissed or disciplined for a violation of AS 39.25.160(l) (interference or failure to cooperate with the Legislative Budget and Audit Committee).
3. A state employee has the right to examine the employee’s own personnel files and may authorize others to examine those files.
4. An applicant for state employment who appeals an examination score may review written examination questions relating to the examination unless the questions are to be used in future examinations.
5. In addition to any access to state personnel records authorized under (b) of this section, state personnel records shall promptly be made available to the child support services agency created in AS 25.27.010 or the child support enforcement agency of another state. If the record is prepared or maintained in an electronic data base, it may be supplied by providing the requesting agency with access to the data base or a copy of the information in the data base and a statement certifying its contents. The agency receiving information under this subsection may use the information only for child support purposes authorized under law.

History. (§ 18 ch 144 SLA 1960; am § 5 ch 112 SLA 1982; am § 143 ch 87 SLA 1997; am § 1 ch 111 SLA 2000; am § 4 ch 67 SLA 2003)

Revisor’s notes. —

In 2004, “child support enforcement agency created in AS 25.27.010 ” was changed to “child support services agency created in AS 25.27.010 ” in (e) of this section in accordance with § 12(a), ch. 107, SLA 2004.

Administrative Code. —

For recruitment and examination, see 2 AAC 7, art. 2.

For records, see 21 AAC 10, art. 3.

Editor’s notes. —

The delayed repeal of (e) of this section by § 148(c), ch. 87, SLA 1997, as amended by § 53, ch. 132, SLA 1998, which was to take effect July 1, 2001, was repealed by § 15, ch. 54, SLA 2001.

Opinions of attorney general. —

Insofar as the ombudsman has a legitimate governmental interest in access and he is not the “public,” the ombudsman may be allowed access to personnel files, but only upon his assurance that the contents of the files will not, under any circumstances except an order of a court of competent jurisdiction, become public in whole or in part. February 28, 1984 Op. Att’y Gen.

Sec. 39.25.090. Coverage of chapter.

This chapter and the rules adopted under it apply to all positions in

1. the classified service; and
2. the exempt and partially exempt service as specifically provided.

History. (§ 3 ch 144 SLA 1960; am § 6 ch 112 SLA 1982)

Sec. 39.25.100. Classified service.

The classified service consists of all positions in the state service not included in the exempt service or in the partially exempt service.

History. (§ 4 ch 144 SLA 1960)

Sec. 39.25.110. Exempt service.

Unless otherwise provided by law, the following positions in the state service constitute the exempt service and are exempt from the provisions of this chapter and the rules adopted under it:

1. persons elected to public office by popular vote or appointed to fill vacancies in elected offices;
2. justices, judges, magistrates, and employees of the judicial branch including employees of the judicial council;
3. employees of the state legislature and its agencies;
4. the head of each principal department in the executive branch;
5. officers and employees of the University of Alaska;
6. certificated teachers and noncertificated employees employed by a regional educational attendance area established and organized under AS 14.08.031 — 14.08.041 to teach in, administer, or operate schools under the control of a regional educational attendance area school board;
7. certificated teachers employed by the Department of Education and Early Development as correspondence teachers, teachers in skill centers operated by the Department of Education and Early Development or by the Department of Labor and Workforce Development, or in Mt. Edgecumbe School;
8. patients and inmates employed in state institutions;
9. persons employed in a professional capacity to make a temporary or special inquiry, study or examination as authorized by the governor;
10. members of boards, commissions, or authorities;
11. the officers and employees of the following boards, commissions, and authorities:
    1. [Repealed, § 13 ch 43 SLA 1994.]
    2. Alaska Permanent Fund Corporation;
    3. Alaska Industrial Development and Export Authority;
    4. Alaska Commercial Fisheries Entry Commission;
    5. Alaska Commission on Postsecondary Education;
    6. Alaska Aerospace Corporation;
    7. [Repealed, § 23 ch 11 SLA 2013.]
    8. Alaska Gasline Development Corporation and subsidiaries of the Alaska Gasline Development Corporation;
12. the executive secretary and legal counsel of the Alaska Municipal Bond Bank Authority;
13. the state medical examiner, deputy medical examiner, and assistant medical examiners appointed under AS 12.65.015 and pharmacists and physicians licensed to practice in this state and employed by the Department of Health and Social Services or by the Department of Corrections;
14. petroleum engineers and petroleum geologists employed in a professional capacity by the Department of Natural Resources and by the Alaska Oil and Gas Conservation Commission;
15. [Repealed, § 1 ch 32 SLA 1999.]
16. persons employed by the division of marine transportation as masters and members of the crews of vessels who operate the state ferry system and who are covered by a collective bargaining agreement provided in AS 23.40.040 ;
17. officers and employees of the state who reside in foreign countries;
18. employees of the Alaska Seafood Marketing Institute;
19. emergency firefighting personnel employed by the Department of Natural Resources for a fire emergency or for fire prevention and related activities conducted under AS 41.15.030 ;
20. employees of the Office of the Governor and the office of the lieutenant governor, including the staff of the governor’s mansion;
21. [Repealed, § 47 ch 99 SLA 2004.]
22. youth employed by the Department of Natural Resources under the Youth Employment and Student Intern programs;
23. [Repealed, § 6 ch 28 SLA 2003.]
24. students employed by the state institutions in which the students are enrolled;
25. [Repealed, § 8 ch 2 SLA 2004.]
26. investment officers in the Department of Revenue;
27. [Repealed, § 10 ch 29 SLA 1999.]
28. persons engaged in employment or pre-employment training programs operated by the Department of Military and Veterans’ Affairs;
29. [Repealed, § 9 ch 115 SLA 1989.]
30. a person employed as an actuary or assistant actuary by the division of insurance in the Department of Commerce, Community, and Economic Development;
31. [Repealed, § 91 ch 163 SLA 2004.]
32. a participant in the Alaska temporary assistance program under AS 47.27 who holds a temporary position with the state in order to obtain job training or experience;
33. a person employed as a convener under AS 44.62.730 or as a facilitator under AS 44.62.760 related to a negotiated regulation making process under AS 44.62.710 — 44.62.800 ;
34. the chief executive officer and employees of the Alaska Mental Health Trust Authority employed under AS 47.30.026(b) ;
35. the assistant adjutant general for space and missile defense appointed under AS 26.05.185 ;
36. the victims’ advocate established under AS 24.65.010 and the advocate’s staff;
37. employees of the Alaska mental health trust land unit established under AS 44.37.050 ;
38. the executive director of the Council on Domestic Violence and Sexual Assault established under AS 18.66.010 ;
39. the executive director and employees of the Knik Arm Bridge and Toll Authority under AS 19.75.051 and 19.75.061 ;
40. the chair of the Workers’ Compensation Appeals Commission (AS 23.30.007 );
41. the Alaska Gasline Inducement Act coordinator appointed under AS 43.90.250 ;
42. oil and gas audit masters employed in a professional capacity by the Department of Revenue and the Department of Natural Resources to collect oil and gas revenue by developing policy, conducting studies, drafting proposed regulations, enforcing regulations, and directing audits by oil and gas revenue auditors;
43. the in-state gasline project coordinator appointed under AS 38.34.010 ;
44. the executive director and employees of the Alaska State Council on the Arts employed under AS 44.27.054 and 44.27.055 ;
45. utilities analyst masters employed in a professional capacity by the Regulatory Commission of Alaska under AS 42.04.050(a) .

History. (am E.O. No. 72 § 2 (1989); § 5 ch 144 SLA 1960; am § 1 ch 48 SLA 1961; am § 1 ch 133 SLA 1961; am § 3 ch 93 SLA 1962; am § 3 ch 24 SLA 1966; am § 31 ch 46 SLA 1970; am § 65 ch 69 SLA 1970; am § 13 ch 113 SLA 1970; am § 3 ch 78 SLA 1971; am § 18 ch 78 SLA 1974; am § 42 ch 127 SLA 1974; am § 2 ch 32 SLA 1975; am § 2 ch 79 SLA 1975; am § 37 ch 124 SLA 1975; am § 1 ch 157 SLA 1976; am § 3 ch 90 SLA 1978; am § 7 ch 18 SLA 1980; am § 43 ch 106 SLA 1980; am § 10 ch 131 SLA 1980; am § 4 ch 148 SLA 1980; am § 4 ch 106 SLA 1981; am §§ 2, 3 ch 37 SLA 1982; am § 7 ch 112 SLA 1982; am § 1 ch 11 SLA 1983; am § 1 ch 103 SLA 1984; am § 58 ch 21 SLA 1985; am § 1 ch 50 SLA 1985; am § 69 ch 14 SLA 1987; am § 1 ch 61 SLA 1987; am § 2 ch 37 SLA 1988; am § 2 ch 78 SLA 1988; am § 26 ch 141 SLA 1988; am § 11 ch 95 SLA 1989; am §§ 7, 9 ch 115 SLA 1989; am § 10 ch 88 SLA 1991; am § 1 ch 17 SLA 1992; am § 4 ch 47 SLA 1993; am § 13 ch 43 SLA 1994; am § 111 ch 62 SLA 1995; am § 17 ch 103 SLA 1996; am § 25 ch 107 SLA 1996; am § 6 ch 108 SLA 1996; am § 1 ch 121 SLA 1996; am § 4 ch 117 SLA 1998; am § 10 ch 29 SLA 1999; am § 1 ch 32 SLA 1999; am § 1 ch 15 SLA 2001; am § 2 ch 30 SLA 2001; am § 20 ch 92 SLA 2001; am § 3 2002 Ballot Measure No. 3; am § 1 ch 27 SLA 2002; am § 2 ch 91 SLA 2002; am § 6 ch 28 SLA 2003; am § 5 ch 49 SLA 2003; am § 3 ch 77 SLA 2003; am § 8 ch 2 SLA 2004; am § 91 ch 163 SLA 2004; am § 69 ch 10 FSSLA 2005; am § 1 ch 48 SLA 2006; am § 10 ch 1 SSSLA 2007; am § 4 ch 22 SLA 2007; am § 50 ch 41 SLA 2009; am § 5 ch 47 SLA 2009; am § 6 ch 7 SLA 2010; am §§ 14, 23 ch 11 SLA 2013; am § 9 ch 47 SLA 2013; am § 1 ch 16 SLA 2017; am § 2 ch 24 SLA 2019)

Revisor’s notes. —

Former paragraph (29) was enacted as (28). Renumbered in 1989. Paragraph (32) was enacted as (31); renumbered in 1996. Paragraphs (35) and (36) were enacted as (34); renumbered in 2001.

In 1999, “Department of Commerce and Economic Development” was changed to “Department of Community and Economic Development” in paragraph (30) in accordance with § 88, ch. 58, SLA 1999, and “Department of Education” was changed to “Department of Education and Early Development” in paragraph (7) in accordance with § 89, ch. 58, SLA 1999.

Paragraph (38) was enacted as paragraph (37) and renumbered in 2002.

In 2003, in paragraph (39), “AS 19.75.051 and 19.75.061 ” was substituted for “AS 44.90.051 and 44.90.061” to reflect the 2003 renumbering of AS 44.90.051 and 44.90.061.

In 2004, in paragraph (30) of this section, “Department of Community and Economic Development” was changed to “Department of Commerce, Community, and Economic Development”, in accordance with § 3, ch. 47, SLA 2004.

In 2009, under § 2, ch. 60, SLA 2009, in paragraph (11) of this section “Alaska Aerospace Corporation” was substituted for “Alaska Aerospace Development Corporation”.

Cross references. —

For statement of legislative intent regarding the oil and gas revenue audit master positions authorized by paragraph (42) of this section, see § 69, ch. 1, SSSLA 2007.

Effect of amendments. —

The 2010 amendment, effective April 27, 2010, added paragraph (43).

The first 2013 amendment, effective May 22, 2013, repealed (11)(G); added (11)(H).

The second 2013 amendment, effective July 1, 2013, in (14), deleted “, except for those employed in the division of geological and geophysical surveys in the department of natural resources” at the end.

The 2017 amendment, effective July 1, 2017, added (44).

The 2019 amendment, effective November 27, 2019, added (45).

Editor’s notes. —

Section 7, ch. 117, SLA 1998, which was to repeal paragraph (33) of this section effective July 1, 2003, was repealed by § 2, ch. 44, SLA 2003.

Legislative history reports. —

For governor’s transmittal letter for ch. 1, SSSLA 2007 (HB 2001), presenting, among other matter, a proposal relating to classification of petroleum revenue auditors under the State Personnel Act, see 2007 House Journal 1547 — 1550.

For governor’s transmittal letter concerning the 2013 changes to this section made in ch. 47, SLA 2013 (SB 95), see 2013 Senate Journal 888 — 890.

Opinions of attorney general. —

Staff administering the Alaska Military Youth Academy are members of the classified service, and are not in the exempt service, because they are not “persons engaged” in the employment training program, as required by subsection (28). Oct. 13, 2000, Op. Att’y Gen.

Sec. 39.25.120. Partially exempt service.

1. Positions in the partially exempt service are included in the position classification plan established under this chapter and are compensated according to the pay plan under AS 39.27.011 .
2. A person holding a position in the partially exempt service is not required to complete an assessment and is not eligible for a hearing by the personnel board in case of dismissal, demotion, or suspension. Positions in the partially exempt service are specifically exempt from the rules established under AS 39.25.150 (3) — (10), (12), (13), and (16).
3. The following positions in the state service constitute the partially exempt service:
   1. deputy and assistant commissioners of the principal departments of the executive branch, including the assistant adjutant general of the Department of Military and Veterans’ Affairs;
   2. the directors of the major divisions of the principal departments of the executive branch and the regional directors of the Department of Transportation and Public Facilities;
   3. attorney members of the staff of the Department of Law, of the public defender agency, and of the office of public advocacy in the Department of Administration;
   4. one private secretary for each head of a principal department in the executive branch;
   5. employees of councils, boards, or commissions established by statute in the Office of the Governor or the office of the lieutenant governor, unless a different classification is provided by statute;
   6. not more than two special assistants to the commissioner of each of the principal departments of the executive branch, but the number may be increased if the partially exempt service is extended under AS 39.25.130 to include the additional special assistants;
   7. the principal executive officer of the following boards, councils, or commissions:
      1. Alaska Public Broadcasting Commission;
      2. Professional Teaching Practices Commission;
      3. Parole Board;
      4. Board of Nursing;
      5. Real Estate Commission;
      6. Alaska Royalty Oil and Gas Development Advisory Board;
      7. Alaska State Council on the Arts;
      8. Alaska Police Standards Council;
      9. Alaska Commission on Aging;
      10. Alaska Mental Health Board;
      11. State Medical Board;
      12. Governor’s Council on Disabilities and Special Education;
      13. Advisory Board on Alcoholism and Drug Abuse;
      14. Statewide Suicide Prevention Council;
      15. State Board of Registration for Architects, Engineers, and Land Surveyors;
      16. Alaska Health Care Commission;
      17. Board of Pharmacy;
   8. Alaska Pioneers’ Home and Alaska Veterans’ Home managers;
   9. hearing examiners in the Department of Revenue;
   10. the comptroller in the division of treasury, Department of Revenue;
   11. airport managers in the Department of Transportation and Public Facilities employed at the Anchorage and Fairbanks International Airports;
   12. the deputy director of the division of insurance in the Department of Commerce, Community, and Economic Development;
   13. the executive director and staff of the Alaska Public Offices Commission;
   14. the rehabilitation administrator of the division of workers’ compensation;
   15. guards employed by the Department of Public Safety for emergencies;
   16. marine pilot coordinator of the Board of Marine Pilots;
   17. guards employed by the Department of Corrections, other than in state correctional facilities, to carry out the responsibility of the commissioner of corrections under AS 33.30.071(b) ;
   18. hearing officers and administrative law judges of the Regulatory Commission of Alaska;
   19. the compact administrator appointed under AS 33.36.130 ;
   20. the chief administrative law judge and administrative law judges of the office of administrative hearings;
   21. the executive secretary of the Board of Public Accountancy.

History. (§ 6 ch 144 SLA 1960; am § 2 ch 48 SLA 1961; am § 2 ch 133 SLA 1961; am § 4 ch 5 SLA 1966; am § 3 ch 104 SLA 1969; am § 2 ch 109 SLA 1969; am § 4 ch 78 SLA 1971; am § 9 ch 47 SLA 1974; am § 4 ch 82 SLA 1975; am § 10 ch 207 SLA 1975; am § 2 ch 157 SLA 1976; am § 19 ch 263 SLA 1976; am E.O. No. 39 § 6 (1977); am § 1 ch 103 SLA 1978; am § 2 ch 108 SLA 1978; am E.O. No. 41 § 3 (1980); am E.O. No. 42 §§ 3, 4 (1980); am E.O. No. 43 § 4 (1980); am E.O. No. 44 § 5 (1980); am E.O. No. 45 § 3 (1980); am E.O. No. 46 § 4 (1980); am § 18 ch 115 SLA 1980; am § 3 ch 79 SLA 1981; am § 4 ch 110 SLA 1981; am E.O. No. 48 § 3 (1981); am § 4 ch 50 SLA 1982; am § 26 ch 93 SLA 1982; am § 8 ch 112 SLA 1982; am 1983 Initiative Proposal No. 2, § 6; am § 106 ch 6 SLA 1984; am § 15 ch 55 SLA 1984; am § 2 ch 103 SLA 1984; am E.O. No. 58 § 18 (1984); am § 59 ch 21 SLA 1985; am § 54 ch 37 SLA 1986; am § 2 ch 84 SLA 1986; am § 5 ch 48 SLA 1987; am § 12 ch 98 SLA 1988; am § 1 ch 107 SLA 1988; am § 33 ch 141 SLA 1988; am E.O. No. 69 § 22 (1988); am E.O. No. 79 § 2 (1991); am § 13 ch 66 SLA 1991; am § 28 ch 89 SLA 1991; am § 21 ch 6 SLA 1993; am E.O. No. 83 § 20 (1993); am § 18 ch 5 FSSLA 1994; am § 3 ch 92 SLA 1995; am § 43 ch 30 SLA 1996; am E.O. No. 94 § 2 (1996); am §§ 4, 24 ch 25 SLA 1999; am §§ 43, 84 ch 58 SLA 1999; am § 2 ch 111 SLA 2000; am § 1 ch 84 SLA 2001; am § 3 ch 27 SLA 2002; am § 4 ch 61 SLA 2002; am § 10 ch 59 SLA 2004; am § 4 ch 66 SLA 2004; am § 58 ch 163 SLA 2004; am § 70 ch 10 FSSLA 2005; am § 3 ch 96 SLA 2010; am § 2 ch 9 SLA 2011; am § 15 ch 66 SLA 2018)

Revisor’s notes. —

In 1992, under § 6, ch. 13, SLA 1992, and AS 01.05.031 , “Governor’s Council on Disabilities and Special Education” was substituted for “Governor’s Council for the Handicapped and Gifted.”

Subsection (c) was reorganized in 1999 and 2002 to reflect the repeals and additions of various paragraphs.

In 2004, in paragraph (c)(12) of this section, “Department of Community and Economic Development” was changed to “Department of Commerce, Community, and Economic Development”, in accordance with § 3, ch. 47, SLA 2004.

Administrative Code. —

For emergency guards, see 13 AAC 62.

Effect of amendments. —

The 2010 amendment, effective June 22, 2010, in (c)(7), added (P).

The 2011 amendment, effective August 15, 2011, added (c)(21).

The 2018 amendment, effective July 25, 2018, added (c)(7)(Q).

Sec. 39.25.130. Extension of partially exempt and classified services.

1. The personnel board, upon written recommendation of the commissioner of administration, may extend the partially exempt service to include any position in the classified service that, in the judgment of the board,
   1. involves principal responsibility for the determination of policy;
   2. involves principal responsibility for the way in which policies are carried out; or
   3. involves responsibilities and duties of a type not susceptible to the ordinary recruiting and assessment procedures.
2. Positions may not be included in the partially exempt service under this section if the inclusion is inconsistent with federal requirements for state agencies supported in whole or in part by federal funds.
3. The personnel board, upon written recommendation of the commissioner of administration, may extend the classified service to include any position in the partially exempt service.

History. (§ 7 ch 144 SLA 1960; am §§ 9, 10 ch 112 SLA 1982; am § 3 ch 111 SLA 2000)

Sec. 39.25.140. Amendment of personnel rules.

1. The director of personnel shall prepare and submit to the commissioner of administration any proposed amendments to the personnel rules for all positions and employees subject to this chapter.
2. The commissioner of administration shall review the amendments and submit them to the personnel board.
3. At least 30 days before the adoption, amendment, or repeal of a personnel rule, the secretary to the personnel board shall provide notice that the personnel board has the proposed action under consideration.  The notice shall be
   1. posted in public buildings throughout the state;
   2. published in one or more newspapers of general circulation throughout the state;
   3. mailed to each person or group that filed a request for notice of proposed action with the secretary to the personnel board;
   4. furnished to each member of the legislature and to the Legislative Affairs Agency.
4. The rules may provide for exemptions and modifications that are necessary to assure the continuity of federal grants to agencies supported in whole or in part by federal contributions.
5. The rules adopted under this chapter relate to the internal management of state agencies and their adoption is not subject to AS 44.62 (the Administrative Procedure Act).  The rules shall be published in the Alaska Administrative Register and Code for informational purposes.
6. Failure to mail notice to a person as required in this section does not invalidate an action taken by the personnel board.
7. An amendment to the personnel rules takes effect 30 days after it is approved by the personnel board.  The board, if requested to do so, may hold a public hearing on a proposed amendment.

History. (§ 12 ch 144 SLA 1960; am § 5 ch 5 SLA 1966; am §§ 11—13 ch 112 SLA 1982)

Cross references. —

For Administrative Procedure Act, see AS 44.62.

Administrative Code. —

For classification, see 2 AAC 7, art. 1.

For recruitment and examination, see 2 AAC 7, art. 2.

For appointments, see 2 AAC 7, art. 5.

For probationary periods, see 2 AAC 7, art. 6.

For personnel evaluation and training, see 2 AAC 7, art. 7.

For pay, see 2 AAC 7, art. 8.

For separation and demotion, see 2 AAC 7, art. 9.

For disputes: hearings and appeals, see 2 AAC 7, art. 10.

Sec. 39.25.150. Scope of the rules.

The personnel rules must provide for

1. the preparation, maintenance, and revision, by the director of personnel, subject to approval of the commissioner of administration and the personnel board, of a position classification plan for all positions in the classified and partially exempt services; the position classification plan must include
   1. a grouping together of all positions into classes on the basis of duties and responsibilities;
   2. an appropriate title, a description of the duties and responsibilities, training and experience qualifications, and other necessary specifications for each class of positions;
2. the preparation, maintenance, revision, and administration by the director of personnel of a pay plan for all positions in the classified and partially exempt services; the pay plan (A) shall be based upon the position classification plan; (B) must provide for fair and reasonable compensation for services rendered, and reflect the principle of like pay for like work; (C) may be amended, approved, or disapproved by the legislature in regular or special session; after the pay plan is in effect, a salary or wage payment may not be made to a state employee covered by the plan unless the payment is in accordance with this chapter and the rules adopted under this chapter or unless the payment is in accordance with a valid agreement entered into in accordance with AS 23.40;
3. the use of employee selection methods, including open competitive assessment devices, when appropriate, that will fairly evaluate the capacity and fitness of the person assessed to discharge the duties of the position in which employment is sought;
4. the formulation of a list for appointment and promotion to a position;
5. the procedure for filling positions; the rule adopted under this paragraph may include procedures providing a preference for local residents when appropriate;
6. promotions from within the state service when there are qualified candidates in the state service; vacancies shall be filled by promotion whenever practicable and in the best interest of the state service, and promotion shall be by competitive assessment whenever possible; in considering promotions, the applicants’ qualifications, performance records, seniority, and conduct shall be evaluated;
7. a period of probation not to exceed one year before an appointment to a position becomes permanent, unless the period of probation is extended as set out in a collective bargaining agreement under AS 23.40; however, a permanent employee receiving a promotional appointment retains permanent status in the service and job class from which appointed for the duration of the probationary period and may be demoted to a former class without right of appeal, notwithstanding AS 39.25.170 , but, if the employee is dismissed from the service, the appeal rights under AS 39.25.170 apply;
8. nonpermanent and emergency appointments to positions in the state service in accordance with AS 39.25.195 — 39.25.200 ;
9. provisional appointment without competitive assessment when the recruitment and assessment procedures have not identified qualified candidates in sufficient number;
10. transfers from one department to another and from another merit system jurisdiction to the state service;
11. transfers from one area of the state to another;
12. the reinstatement of a person who resigns in good standing;
13. layoffs for reason of lack of money or work, abolition of positions, or material changes in duties or organization; both performance and seniority records shall be considered in the development of layoff orders;
14. the development, maintenance, and use of employee performance records;
15. the establishment of disciplinary measures, which may include disciplinary suspension without pay;
16. the procedures for review of disputed personnel actions, for resolving employee and interagency grievances, and for resolving grievances of the general public concerning the operation of the state personnel system;
17. hours of work for all employees in the state service;
18. methods and procedures covering overtime work and pay;
19. the granting of employment preference rights, not within the area of promotion, to a veteran, former prisoner of war, or member of the national guard under AS 39.25.159 ;
20. the employment of persons in permanent positions on a part-time basis of 15 hours or more a week, including the employment of two persons to fill one permanent full-time position; these employees shall be designated as permanent part-time employees;
21. the granting of employment preference to individuals with severe disabilities; this includes the right to provisional appointment without competitive assessment for periods of up to four months and the granting of eligibility to an individual with a severe disability provisionally appointed under the rules who demonstrates ability to perform the job for permanent appointment without competitive assessment; provisional employment under this paragraph may not exceed four months during a 12-month period; “individual with a severe disability,” as used in this paragraph, means an individual certified by the director of the division of vocational rehabilitation to be severely disabled;
22. the establishment of programs facilitating the employment of disadvantaged persons;
23. the delegation, when feasible, of personnel responsibilities and duties to the principal departments of the executive branch;
24. the establishment of a transition period of up to 12 months for an employee to be reappointed to a classified position if the employee’s position is withdrawn from the partially exempt or exempt service and placed in the classified service;
25. a procedure allowing an applicant who is a veteran, former prisoner of war, or member of the national guard under AS 39.25.159 to substitute military work experience or training for a nonmilitary work experience or training requirement of a position if the military experience or training meets or exceeds the position requirement;
26. other rules and administrative regulations, not inconsistent with this chapter, that are necessary for its enforcement.

History. (§ 13 ch 144 SLA 1960; am § 1 ch 130 SLA 1961; am § 1 ch 147 SLA 1962; am § 1 ch 117 SLA 1966; am § 1 ch 33 SLA 1967; am § 3 ch 226 SLA 1970; am § 1 ch 39 SLA 1971; am § 3 ch 42 SLA 1971; am § 1 ch 21 SLA 1973; am § 1 ch 27 SLA 1976; am § 1 ch 4 SLA 1978; am § 2 ch 67 SLA 1979; am § 38 ch 94 SLA 1980; am §§ 1, 2 ch 89 SLA 1982; am § 14 ch 112 SLA 1982; am § 1 ch 7 SLA 1987; am § 2 ch 127 SLA 1988; am § 1 ch 42 SLA 1990; am § 4 ch 111 SLA 2000; am § 1 ch 118 SLA 2002; am § 5 ch 21 SLA 2009; am § 1 ch 12 SLA 2020)

Cross references. —

For the pay plan prepared under (2) of this section, see AS 39.27.011 .

For legislative direction that, notwithstanding paragraph (2) of this section, the Department of Administration develop a distinct position classification plan and a distinct pay plan for oil and gas auditors and their immediate supervisors who work under direction of the oil and gas revenue audit master positions authorized by AS 39.25.110 (42), see § 70, ch. 1, SSSLA 2007.

Revisor's notes. —

Paragraph (25) was enacted as (26), renumber in 2020.

Administrative Code. —

For classification, see 2 AAC 7, art. 1.

For recruitment and examination, see 2 AAC 7, art. 2.

For appointments, see 2 AAC 7, art. 5.

For probationary periods, see 2 AAC 7, art. 6.

For personnel evaluation and training, see 2 AAC 7, art. 7.

For pay, see 2 AAC 7, art. 8.

For separation and demotion, see 2 AAC 7, art. 9.

For disputes: hearings and appeals, see 2 AAC 7, art. 10.

For leave, see 2 AAC 7, art. 11.

Effect of amendments. —

The 2020 amendment, effective July 19, 2020, added paragraph (26) [now (25)].

Sec. 39.25.153. Departmental personnel officers.

1. If a principal department of the executive branch has a personnel officer, the personnel officer shall be employed by and located within that department.
2. [Repealed, § 16 ch 111 SLA 2000.]
3. [Repealed, § 16 ch 111 SLA 2000.]
4. [Repealed, § 16 ch 111 SLA 2000.]

History. (§ 14 ch 207 SLA 1975; am § 15 ch 112 SLA 1982; am § 16 ch 111 SLA 2000)

Sec. 39.25.155. Vocational substitution program.

1. It is the purpose of this section to establish a liberal system under which Alaskan residents not employed by the state who do not meet the minimum educational or experience criteria for state employment may demonstrate their abilities and achieve temporary or permanent state employee status.  This program is intended for use primarily in remote or underemployed areas where the opportunity to gain required hiring qualifications does not exist, but where there is a local need for employees with certain vocational skills.  The provisions of this section apply notwithstanding the provisions of AS 39.25.150 (3).
2. The director of personnel shall establish vocational standards as alternatives for educational or experience levels now required for nonprofessional occupational areas under the state personnel system and incorporate these alternatives into the state classification plan.
3. Applicants shall be placed on lists for the vocational classification indicated in their applications based on an assessment of their vocational ability and place of residence.
4. The director of personnel shall establish rates of pay for the selected vocational substitution classifications in relation to the beginning entry classification pay rates. However, vocational substitution personnel may not be classified lower than one pay range below the range to which the classified position is allocated.
5. The director of personnel shall embody a concept combined of vocational ability, place of residence, local hire, and area unemployment in the personnel rules to accomplish the intent of this section.
6. Applicants selected under this section are subject to the provisions of AS 39.25.160 .
7. [Repealed, § 19 ch 67 SLA 1983.]

History. (§ 1 ch 14 SLA 1971; am § 19 ch 67 SLA 1983; am §§ 5, 6 ch 111 SLA 2000)

Sec. 39.25.157. Position descriptions.

The division of personnel, in consultation with the appropriate department or agency, shall require the preparation of and shall maintain a position description for each position in the classified service. The position description shall describe the essential functions of the position and the actual skills and abilities required to perform the tasks assigned to the position. A general requirement for physical abilities may not be imposed on a job classification unless each position within the class requires the use of the physical ability.

History. (§ 2 ch 86 SLA 1988)

Sec. 39.25.158. Reemployment rights for injured state employees.

1. An injured employee is eligible for reemployment rights under this section if the employee requests to return to work for the state within 30 days after receipt of a release from a physician indicating that the employee is able to return to full or modified work.
2. After an employee requests to return to work, the reemployment benefits administrator of the division of workers’ compensation or the director of vocational rehabilitation in the Department of Labor and Workforce Development shall review the request and certify that the employee is able to return to work under (c), (d), (e), or (f) of this section, or defer certification until the employee completes retraining under (f) of this section.
3. If the reemployment benefits administrator or the director of vocational rehabilitation certifies that the employee is able to perform the tasks assigned to the employee’s former position, the agency shall reemploy the employee within 30 days after receipt of the certification unless the position no longer exists. If a permanent, probationary, or provisional employee is currently employed in the position, the agency shall cause a vacancy under the layoff provisions of AS 39.25.150 (13).
4. If the employee is not eligible for reemployment under (c) of this section but is able to perform the essential functions of the position, then the agency shall reemploy the employee in the position after making a reasonable accommodation to the physical and mental limitations of the employee unless the position no longer exists. Reasonable accommodation may include imposing work restrictions on the tasks performed by the employee, making job or site modifications necessary to permit the employee to perform the tasks of the position, removing institutional and architectural barriers, and providing additional support services.
5. If the employee is not eligible for reemployment under (c) or (d) of this section and if the agency has a vacant position for which the employee is qualified that is comparable in wage to the position the employee previously held, then the agency shall offer the employee the position. If the employee is unable to perform the essential functions of a comparable position within the agency, then the employee is entitled to reemployment in a comparable position for which the employee is qualified with another agency if the position is vacant and the employee is able to perform the essential functions of that position.
6. If the agency and other agencies in the state are unable to reemploy the employee in a position at a wage comparable to the employee’s previous wage, the employee may request reemployment at a lower wage or accept retraining under AS 23.30.041 . After completing the training the employee may request reemployment in a position for which the employee has been retrained in the agency. If the agency cannot offer reemployment, the employee may request reemployment in a position for which the employee has been retrained with another agency.
7. An agency may refuse to reemploy or continue the employment of a former employee if reasonable accommodation imposes an undue hardship on the operation of the agency’s program or if, after reasonable efforts at accommodation, the injured employee cannot perform the essential functions of the position in a manner that would not endanger the health or safety of
   1. the employee because the job imposes an imminent and substantial degree of risk to the employee; or
   2. others to a greater extent than if a nonhandicapped person performed the job.
8. Factors an agency may consider in determining undue hardship under (g) of this section include the current number of employees in the section or office, number and type of facilities, size of budget, nature and cost of the accommodation needed, and the type, composition, and structure of the work force.
9. Notwithstanding any other provision of law, if an injured employee requests reemployment under (e) or (f) of this section and if the employee is able to perform the essential functions of the position, the state may not hire another person for that position except an employee in layoff status for that job class.
10. A collective bargaining agreement under AS 23.40.070 — 23.40.260 may not include terms contrary to this section.
11. In this section,
    1. “agency” includes a department, division, office, agency, board, commission, authority, or other organizational unit of the executive branch of state government;
    2. “comparable wage” means a wage equivalent to at least the state minimum wage under AS 23.10.065 or 75 percent of the worker’s gross hourly wage at the time of injury, whichever is greater;
    3. “injured employee” or “employee” means a permanent, probationary, or provisional employee of an agency in the classified service whose injury is a compensable injury or condition under AS 23.30.

History. (§ 2 ch 86 SLA 1988; am § 44 ch 58 SLA 1999)

Administrative Code. —

For appointments, see 2 AAC 7, art. 5.

Appeal moot. —

Employee's appeal of an administrative decision denying the employee a rehire preference was properly dismissed as moot because (1) the employee was granted the preference, (2) the employee did not timely appeal the denial of the employee's claims for back pay and retraining costs within 30 days, and (3) a strict enforcement of appellate rules would not result in surprise or unfair prejudice, since the employee, as a pro se litigant, ignored the trial court's advice about how to appeal. O'Donnoghue v. State, — P.3d — (Alaska Aug. 1, 2018) (memorandum decision).

Sec. 39.25.159. Employment preference for veterans and former prisoners of war.

1. A veteran or former prisoner of war who possesses the necessary qualifications for a position or job classification applied for under this chapter is entitled to an employment preference as follows:
   1. in an assessment using numerical ratings, points equal to five percent of the points available from the assessment device or devices shall be added to the passing score of a veteran, and points equal to 10 percent of the points available from the assessment device or devices shall be added to the passing score of a disabled veteran or former prisoner of war;
   2. in an assessment not using numerical ratings, consideration shall be afforded to a veteran; additionally, an opportunity to interview for the position shall be afforded to a disabled veteran or a former prisoner of war.
2. [Repealed, § 2 ch 56 SLA 1993.]
3. A member of the national guard who possesses the necessary qualifications for a position or job classification applied for under this chapter is entitled to an employment preference as follows:
   1. in an assessment using numerical ratings, points equal to five percent of the points available from the assessment device or devices shall be added to the passing score of a member of the national guard;
   2. in an assessment not using numerical ratings, consideration shall be afforded to a member of the national guard.
4. A person may receive an employment preference under only one of the categories described in (a) or (c) of this section. A person may use the preference without limitation when being considered for a position for which persons who are not currently state employees are being considered. If the recruitment for a position is limited to state employees, preference under (a) or (c) of this section may not be counted. If a position in the classified service is eliminated, employees shall be released in accordance with rules adopted under AS 39.25.150 (13). In the case of a comparison of employees with equal qualifications on the factors adopted under AS 39.25.150 (13), a veteran, former prisoner of war, or member of the national guard shall be given preference over a person who is not a veteran, former prisoner of war, or member of the national guard, and the veteran, former prisoner of war, or member of the national guard shall be kept on the job.
5. Subsections (a), (c), and (d) of this section may not be interpreted to amend the terms of a collective bargaining agreement.
6. In this section,
   1. “consideration” means reviewing a person’s entire application in order to determine whether the person should be selected, rejected, or admitted to further steps in the assessment or selection process;
   2. “disabled veteran” means a veteran who is entitled to compensation under laws administered by the United States Department of Veterans Affairs, a person who was honorably discharged or released from active duty because of a service-connected disability, or a person who was disabled in the line of duty while serving in the Alaska Territorial Guard;
   3. “member of the national guard” means a person who
      1. is presently serving as a member in good standing in the national guard; or
      2. was released from service in the national guard under honorable conditions;
   4. “prisoner of war” means a person who has been a prisoner of war during a declared war or other conflict as determined by the Department of Defense under federal regulations;
   5. “veteran” means a person
      1. with 181 days or more active service in the armed forces of the United States who has been honorably discharged after having served during any period
         1. between April 6, 1917, and December 1, 1919, between September 16, 1940, and December 31, 1947, between June 27, 1950, and October 14, 1976, between August 2, 1990, and January 2, 1992, beginning September 11, 2001, and ending on the day prescribed by Presidential proclamation or by law as the last date of Operation Iraqi Freedom, or during any time period listed in 5 U.S.C. 2108(1); or
         2. in which the person was awarded a campaign badge, expedition medal, the Purple Heart, or an award or decoration for heroism or gallantry in action;
      2. who served 181 days or more in the Alaska Territorial Guard.

History. (§ 2 ch 42 SLA 1990; am § 18 ch 93 SLA 1991; am §§ 1, 2 ch 56 SLA 1993; am §§ 1, 2 ch 7 SLA 1999; am §§ 7 — 9 ch 111 SLA 2000; am §§ 6 — 9 ch 21 SLA 2009; am § 7 ch 102 SLA 2014; am § 3 ch 71 SLA 2018)

Revisor’s notes. —

Enacted as AS 39.25.150(b)—(d). Renumbered in 1990.

Subsection (c) was enacted as (d). Relettered in 1999, at which time former (c) was relettered as (d) and the reference to “(c)” in subsection (a) was substituted for “(d)” in conformity with these changes. Subsections (d) and (e) were enacted as (e) and (f), respectively. Relettered in 2009, at which time former (d) was relettered as (f).

Paragraph (f)(1) was enacted as (d)(4); renumbered as (d)(1) in 2000, at which time former (d)(1) — (3) were renumbered as (d)(2) — (4). Paragraph (f)(3) was enacted as (d)(5); renumbered in 2009, at which time former (d)(3) and (4) were renumbered as (f)(4) and (5).

Cross references. —

For governor’s transmittal letter for ch. 102, SLA 2014, amending paragraph (f)(5), see 2014 Senate Journal 1469 — 1470.

Administrative Code. —

For recruitment and examination, see 2 AAC 7, art. 2.

Effect of amendments. —

The 2014 amendment, effective July 29, 2014, in (f)(5)(A)(i), inserted the language beginning “, between August 2, 1990” to the end of the subsubparagraph.

The 2018 amendment, effective October 27, 2018, rewrote (f)(3), which read “(3) ‘member of the national guard’ means a person who is presently serving as a member of the Alaska National Guard and who has at least eight years of service in the Alaska National Guard.”

Sec. 39.25.160. Prohibitions generally.

1. A classified employee may not take an active part in the management of a political party above the precinct level.
2. A person may not give, render, pay, offer, solicit, or accept money, services, or other valuable thing in connection with securing or making an appointment, promotion, or advantage in a position in the classified service.
3. A person may not require an assessment, subscription, contribution, or service for a political party from a state employee.
4. A person may not seek or attempt to use a political party endorsement in connection with an appointment or promotion in the classified service.
5. An employee in the classified, partially exempt, or exempt service who seeks nomination or becomes a candidate for state or national elective political office shall immediately resign any position held in the state service. The employee’s position becomes vacant on the date the employee files a declaration of candidacy for state or national elective office. This subsection applies to employees in the exempt service, except those listed below, notwithstanding AS 39.25.110 . This subsection does not apply to
   1. justices, judges, magistrates, and employees of the judicial branch, including employees of the judicial council;
   2. the governor or the lieutenant governor;
   3. a member of the legislature;
   4. an employee seeking election as a delegate to a constitutional convention;
   5. officers and employees of the University of Alaska;
   6. certificated teachers and noncertificated employees employed by a regional educational attendance area established and organized under AS 14.08.031 — 14.08.041 to teach in, administer, or operate schools under the control of a regional educational attendance area school board;
   7. certificated teachers employed as correspondence teachers, teachers in skill centers operated by the Department of Education and Early Development, or teachers at Mt. Edgecumbe School;
   8. members of boards and commissions and authorities if the member is not entitled to compensation other than per diem and travel for service on the board, commission, or authority;
   9. emergency firefighting personnel employed by the Department of Natural Resources for a fire emergency or for fire prevention and related activities conducted under AS 41.15.030 ;
   10. youth employed by the Department of Natural Resources under the Youth Employment and Student Intern programs;
   11. students employed by the state institutions in which the students are enrolled;
   12. persons engaged in employment or pre-employment training programs operated by the Department of Military and Veterans’ Affairs;
   13. a participant in the Alaska temporary assistance program under AS 47.27 who holds a temporary position with the state in order to obtain job training or experience.
6. Action affecting the employment status of a state employee or an applicant for state service, including appointment, promotion, demotion, suspension, or removal, may not be taken or withheld on the basis of unlawful discrimination due to race, religion, color, national origin, age, disability, sex, marital status, change in marital status, pregnancy, or parenthood. In addition, action affecting the employment status of an employee in the classified service, including appointment, promotion, demotion, suspension, or removal, may not be taken or withheld for a reason not related to merit.
7. Action affecting the employment status of an employee in the classified service or an applicant for a position in the classified service, including appointment, promotion, demotion, suspension, or removal, may not be taken or withheld on the basis of unlawful discrimination due to political beliefs.
8. A person may not knowingly make a false statement, mark, rating, or report with regard to an assessment, certification, or appointment made under this chapter or in any manner commit a fraud preventing the impartial execution of this chapter and the personnel rules adopted under this chapter.
9. A person may not obstruct the right of another person to assessment, eligibility, certification, appointment, or promotion under this chapter.
10. A state employee, whether in the classified, partially exempt, or exempt service, may not campaign on behalf of a political candidate on government time. This subsection does not prohibit the employees of the division of elections from carrying out duties related to elections or the members and employees of the commission on judicial conduct from carrying out duties relating to the evaluation of justices and judges. This subsection does not apply to the governor and lieutenant governor and members of the legislature.
11. A person may not be employed in the classified, partially exempt, or exempt service unless the person has complied with the military selective service registration requirements imposed under 50 U.S.C. App. 453 (Military Selective Service Act), if those requirements were applicable to the person. Notwithstanding AS 39.25.110 , this subsection applies to employees in the exempt service except
    1. a justice, a judge, or a magistrate;
    2. the governor or the lieutenant governor;
    3. a member of the legislature;
    4. a person appointed under art. III, sec. 25, or art. III, sec. 26, Constitution of the State of Alaska.
12. A state employee may not intentionally (1) fail to give, or (2) direct, order, threaten, restrain, coerce, force, or prevent another person from giving, full cooperation to the legislative auditor or the legislative fiscal analyst in assembling or furnishing requested information to the Legislative Budget and Audit Committee or its staff if the person did not reasonably believe that the action or failure to act was legally justified. Violation of this subsection constitutes just cause for dismissal or other appropriate disciplinary action.

History. (§ 19 ch 144 SLA 1960; am § 38 ch 71 SLA 1972; am § 1 ch 15 SLA 1975; am § 16 ch 112 SLA 1982; am §§ 67, 68 ch 74 SLA 1998; am §§ 10, 11 ch 111 SLA 2000; am § 4 ch 89 SLA 2002; am § 5 ch 67 SLA 2003; am § 7 ch 114 SLA 2003; am § 20 ch 25 SLA 2006; am § 29 ch 22 SLA 2015)

Revisor’s notes. —

In 1999, in (e) of this section, “Department of Education” was changed to “Department of Education and Early Development” in accordance with § 89, ch. 58, SLA 1999.

In 2003, in the last sentence of subsection ( l ), “this section” was changed to “this subsection” to correct a manifest error in ch. 67, SLA 2003.

Cross references. —

For offense of hindering the legislative budget and audit committee, see AS 11.56.845 .

Effect of amendments. —

The 2015 amendment, effective May 15, 2015, in (c)(1), substituted “justices” for “a justice” at the beginning.

Editor’s notes. —

Under § 6, ch. 89, SLA 2002, subsection (k) applies to a person who seeks employment with the state on or after January 1, 2004.

Subsection (k) of this section refers to 50 U.S.C. App 453 which was renumbered in 2015 as 50 U.S.C. 3802 by the U.S. House of Representatives, Office of Law Revision Counsel.

Sec. 39.25.170. Hearings and appeals upon dismissal, demotion, or suspension.

1. An employee in the classified service who is dismissed, demoted, or suspended for more than 30 working days in a 12-month period shall be notified in writing by the employer of the action and the reason for it and may be heard publicly by the personnel board and may be represented by counsel at the hearing. In order to be heard, the complainant shall request a hearing within 15 days of dismissal, demotion, or suspension.
2. If the board finds that the action complained of was taken for a political, racial, or religious reason, or in violation of this chapter or the rules adopted under this chapter, the officer or employee shall be reinstated to the position without loss of pay or leave benefit for the period of dismissal, demotion, or suspension.  In all other cases, the board shall report its findings and recommendations to both parties.

History. (§ 16 ch 144 SLA 1960)

Administrative Code. —

For pay, see 2 AAC 7, art. 8.

For disputes: hearings and appeals, see 2 AAC 7, art. 10.

Sec. 39.25.175. Subpoena authority.

A subpoena shall be issued at the request of a party to a proceeding begun under AS 39.25.170 .

History. (§ 17 ch 112 SLA 1982)

Sec. 39.25.176. Effect of failure to respond or obey.

1. If a person refuses to respond to a subpoena issued under AS 39.25.175 , or refuses to testify at a hearing authorized by AS 39.25.170 , the personnel board may apply to the superior court for an order requiring the person to respond to the subpoena or to testify.
2. Failure to obey the order of the superior court requiring response to a subpoena or testimony at a hearing may be punished as contempt of court.

History. (§ 17 ch 112 SLA 1982)

Revisor’s notes. —

Enacted as subsections (b) and (c) of AS 39.25.175 . Renumbered in 1982.

Sec. 39.25.178. Employee political rights.

A state employee may

1. be a member of a national, state, or local political party;
2. take part in a political campaign;
3. express political opinions; however, while engaged on official business, a state employee may not display or distribute partisan political material;
4. register party preference;
5. serve as a voting or nonvoting delegate to a party convention;
6. be appointed, nominated, or elected to nonpartisan public office in a local government unit; and
7. make contributions to a political party or a candidate for public office.

History. (§ 19 ch 112 SLA 1982)

Sec. 39.25.180. Status of present employees. [Repealed, § 78 ch 59 SLA 1982; § 20 ch 112 SLA 1982.]

Sec. 39.25.181. [Renumbered as AS 39.25.990.]

Sec. 39.25.190. [Renumbered as AS 39.25.910.]

Sec. 39.25.195. Appointment of nonpermanent employees.

1. An individual may not be appointed as a nonpermanent employee in the state service without prior written approval of the director except as an emergency employee.
2. An appointment to state service, except an emergency appointment, shall be made from the list of applicants qualified for the position unless, in appropriate circumstances, the director has waived this requirement.
3. An appointment of a nonpermanent employee may not be made unless the request for authorization is approved by the director, adequate money is available for the anticipated duration of the appointment, and the director determines that the hiring department or agency has certified that
   1. the legislature has appropriated money for the work in question knowing that it is to be performed by a nonpermanent employee;
   2. there is an immediate need to fill an authorized, permanent position and it is impractical either to establish or recruit for the position within a reasonable time;
   3. an immediate need exists and the director determines that the hiring department or agency could not reasonably have been expected to anticipate and meet that need through the creation of a permanent position; or
   4. a program or project exists and the director determines that the need for employees can most appropriately be met through the use of program or project employees.
4. The director may not authorize the appointment of a nonpermanent employee if the director determines that
   1. the need for the nonpermanent employee can practicably be met through establishing and filling an authorized permanent position;
   2. the need for the nonpermanent employee would be more appropriately met through an emergency appointment; or
   3. the need for the nonpermanent employee is not immediate and could reasonably have been anticipated and met by the appointing authority through the creation and filling of a permanent position.
5. A nonpermanent employee may not be placed on the state payroll unless the director has first approved the personnel action for the employee’s appointment.
6. This section does not prevent the director from adopting regulations to provide for timely substitution for permanent employees on medical or personal leave or other situations in which the appointment of an emergency or permanent employee would be inappropriate or when delay in making a temporary replacement would cause serious disruption.
7. A department or agency may not use nonpermanent employees to perform a given work assignment for more than 120 calendar days in a 12-month period.  A department or agency may not employ any individual as a nonpermanent employee for more than 120 calendar days in a 12-month period.  In appropriate circumstances the director may authorize an extension of the limit imposed by this subsection if the director finds that there is an immediate need for the extension.  The limit imposed by this subsection does not apply to program or project employees or to substitutes appointed under (f) of this section.
8. A hiring department or agency shall certify to the director within 15 working days following the appointment its reasons for appointing an emergency employee.

History. (§ 4 ch 67 SLA 1979; am § 74 ch 21 SLA 1995; am § 13 ch 6 SLA 1998; am §§ 12, 13 ch 111 SLA 2000)

Cross references. —

For legislative intent and findings related to AS 39.25.195 — 39.25.200 , see § 1, ch. 67, SLA 1979.

Administrative Code. —

For appointments, see 2 AAC 7, art. 5.

For leave, see 2 AAC 7, art. 11.

Sec. 39.25.196. Local hiring exception.

1. Notwithstanding the provisions of AS 39.25.195 , a hiring department or agency may grant a preference to local residents in the appointment of nonpermanent employees or in the appointment of permanent employees to perform seasonal work assignments of 180 calendar days or less in a 12-month period. If there are no local residents on the applicable list of applicants qualified for a nonpermanent or a permanent seasonal position or if the local residents on the applicable list of applicants qualified for the position are unavailable, the hiring department or agency may obtain referrals of qualified job applicants for these positions from the job service office of the Department of Labor and Workforce Development serving the area and, from those applicants, select a qualified person who is a local resident for the position.
2. Appointment of a nonpermanent employee in accordance with (a) of this section does not require the prior written approval of the director under AS 39.25.195 .

History. (§ 3 ch 89 SLA 1982; am § 14 ch 111 SLA 2000)

Revisor’s notes. —

Enacted as AS 39.25.181 . Renumbered in 1982.

In 1999, in (a) of this section, “Department of Labor” was changed to read “Department of Labor and Workforce Development” in accordance with § 90, ch. 58, SLA 1999.

Administrative Code. —

For recruitment and examination, see 2 AAC 7, art. 2.

Sec. 39.25.197. Termination of nonpermanent employees.

When the director determines that an employee has been appointed as a result of a false certification under AS 39.25.195 , the director shall immediately notify the head of the affected department or agency in writing and the department or agency shall terminate the employee from state service within one working day after receipt of notice.

History. (§ 4 ch 67 SLA 1979)

Sec. 39.25.198. Civil liability.

A person who makes a false certificate under AS 39.25.195 is personally liable in a civil action to an individual terminated under AS 39.25.197 for any resultant damages and for punitive damages of an amount not to exceed three times the gross monthly salary at which the nonpermanent employee was appointed.

History. (§ 4 ch 67 SLA 1979)

Sec. 39.25.200. Definitions.

In AS 39.25.195 — 39.25.200 ,

1. “certified” means signed by the head of a department or agency or by a responsible person designated by the head of a department or agency;
2. “director” means the director of the division of personnel;
3. “emergency employee” means an employee appointed for a period not to exceed 30 calendar days, whose appointment was made under conditions requiring immediate action to carry on work that is required in the public interest;
4. “nonpermanent employee” means a person who is employed in state service in a position that is not in the exempt or partially exempt service and who is not a permanent or an emergency employee;
5. “permanent employee” means an employee who has been appointed to an authorized, permanent full-time or part-time or permanent seasonal position in the classified service and who is in the process of completing or has successfully completed the required probationary service in that position;
6. “program or project employee” means a nonpermanent employee, including a student intern, who is employed in state service with prior written understanding that employment in that position will continue for at most the duration of a specified program or project that is not a regular and continuing function of a department or agency and that has an established probable date of termination.

History. (§ 4 ch 67 SLA 1979; am § 79 ch 59 SLA 1982)

Sec. 39.25.210. [Renumbered as AS 39.25.900.]

Sec. 39.25.220. [Renumbered as AS 39.25.995.]

Sec. 39.25.900. Penalties.

1. A person who wilfully violates a provision of this chapter or of the personnel rules adopted under this chapter is guilty of a misdemeanor.
2. A state employee who is convicted of a misdemeanor under this chapter or the personnel rules adopted under this chapter immediately forfeits the employee’s office or position.

History. (§ 20 ch 144 SLA 1960)

Revisor’s notes. —

Formerly AS 39.25.210 . Renumbered in 1995.

Cross references. —

For provision that the crime defined in this section is a class A misdemeanor, see AS 11.81.250(c) ; for fines and sentences for class A misdemeanors, see AS 12.55.035 and 12.55.135 .

Sec. 39.25.910. Conflict with federal requirements.

If any part of this chapter conflicts with federal requirements that are a condition precedent to the allocation of federal funds to the state, the conflicting part of this chapter is inoperative solely to the extent of the conflict and with respect to the agency directly affected, and does not affect the operation of the remainder of this chapter in its application.

History. (§ 22 ch 144 SLA 1960)

Revisor’s notes. —

Formerly AS 39.25.190 . Renumbered in 1995.

Sec. 39.25.990. Definitions.

In this chapter,

1. “fraud” means for a person to knowingly
   1. create or confirm another’s false impression which the person does not believe to be true, including false impressions as to law or value and false impressions as to intention or other state of mind;
   2. fail to correct another’s false impression which the person previously has created or confirmed;
   3. prevent another from acquiring pertinent information;
2. “knowingly” means for a person to be aware with respect to conduct or to a circumstance described by a provision of law that the person’s conduct is of that nature or that the circumstance exists; when knowledge of the existence of a particular fact is required, that knowledge is established if a person is aware of a substantial probability of its existence, unless the person actually believes it does not exist;
3. “precinct” means the territory within which resident voters may cast votes at one polling place;
4. “state employee” means a person employed by the state who is paid a wage or salary, but does not include a person hired by the state to work as an independent contractor or a person who is in the custody of the state.

History. (§ 18 ch 112 SLA 1982)

Revisor’s notes. —

Formerly AS 39.25.181 . Renumbered in 1995.

Sec. 39.25.995. Short title.

This chapter may be cited as the State Personnel Act.

History. (§ 2 ch 144 SLA 1960)

Revisor’s notes. —

Formerly AS 39.25.220 . Renumbered in 1995.

Sec. 39.26.010. State employees protected against certain conduct.

1. A department, agency, official, officer, or person employed by the state may not directly or indirectly
   1. require or coerce any employee of the state to participate in any way in any activity or undertaking unless the activity or undertaking is related to the performance of official duties;
   2. require or coerce any employee of the state to make any report concerning any of the employee’s activities or undertakings unless the activity or undertaking is related to the performance of the employee’s official duties;
   3. except as directly related to the performance of the employee’s official duties, require or coerce any employee of the state to submit to any interrogation or examination or psychological test which is designed to elicit information concerning
      1. the employee’s personal relationship with any person connected by blood or marriage;
      2. the employee’s religious beliefs or practices;
      3. sexual matters;
      4. the employee’s political affiliation or philosophy;
   4. coerce any employee of the state to invest or contribute earnings in any manner or for any purpose;
   5. restrict or attempt to restrict after-working-hour statements, pronouncements or other activities, not otherwise prohibited by law or personnel rule, of any employee of the state, if the employee does not purport to speak or act in an official capacity.
2. The heads of the administrative departments of the state may adopt internal management regulations for their respective departments, specifying exceptions to (a)(5) of this section. These regulations shall be submitted for approval to the personnel board provided for in AS 39.25.060 .
3. The provisions of (a) of this section do not diminish the authority of an authorized law enforcement agency to conduct criminal investigations of state employees suspected of being involved in criminal activity.

History. (§ 1 ch 102 SLA 1971)

Collateral references. —

Discharge on ground of political views or conduct as affecting right to unemployment compensation, 29 ALR4th 287.

Validity of statutes restricting political activities of public officers or employees, 51 ALR4th 702.

Sec. 39.26.015. Required regulations for dress codes and appearance standards.

Dress codes and appearance standards adopted by a department, division, agency, official, or other employee of the state, that are to be applied to state employees shall be in the form of a regulation subject to legislative review under AS 44.62 (Administrative Procedure Act).

History. (§ 1 ch 13 SLA 1976)

Administrative Code. —

For appearance, see 13 AAC 65.

For operations, see 22 AAC 5, art. 3.

Sec. 39.26.020. Application of chapter.

This chapter applies to those state employees in the classified and partially exempt services.

History. (§ 1 ch 102 SLA 1971; am § 2 ch 13 SLA 1976)

Sec. 39.27.010. Basic salary schedule. [Repealed, § 12 ch 80 SLA 1978.]

Sec. 39.27.011. Salary schedule.

1. The following monthly basic salary schedule is approved as the pay plan for classified and partially exempt employees in the executive branch of the state government who are not members of a collective bargaining unit established under the authority of AS 23.40.070 — 23.40.260 (Public Employment Relations Act) and for employees of the legislature under AS 24:
2. [Repealed, § 38 ch 3 SLA 1980.]
3. If a state officer or employee is appointed a deputy department head or a division director and, at the time of appointment, the officer or employee is receiving a salary higher than that set for the position to which appointment has been made, the officer or employee is entitled to continue receiving the higher salary. This subsection does not apply to the salary of a person appointed to a position other than a deputy department head or a division director.
4. The commissioner of administration shall adopt the regulations required under AS 22.05.140(d) , AS 22.07.090(c) , AS 22.10.190(d) , and AS 22.15.220(e) . The regulations relate to the internal management of state agencies and their adoption is not subject to AS 44.62 (Administrative Procedure Act). The regulations shall be published in the Alaska Administrative Register and Code for informational purposes.
5. Effective July 1, 2014, the amounts set out in the salary schedule contained in (a) of this section are increased by one percent.
6. Effective July 1, 2015, the amounts set out in the salary schedule contained in (a) of this section, as increased under (e) of this section, are increased by 2.5 percent.
7. [Repealed, § 8 ch 2 TSSLA 2000.]
8. Pay increments, computed at the rate of 3.25 percent of the employee’s base salary, shall be provided after an employee has remained in the final step within a given range for two years, and every two years thereafter, if, at the time the employee becomes eligible for the increment, the employee’s current annual rating by the employee’s supervisors is designated as “good” or higher.
9. Pay increments provided for in (h) of this section are approved under AS 39.25.150 (2) as an amendment to the pay plan for employees of the state.
10. Subsections (h) and (i) of this section apply to employees of the legislature only if the committee responsible for adopting employment policies concerning the employee adopts a written policy that (h) and (i) of this section apply. Subsections (h) and (i) of this section apply to the employees of the office of the ombudsman only if the ombudsman adopts a policy that (h) and (i) of this section apply. Subsections (h) and (i) of this section apply to the employees of the office of victims’ rights only if the victims’ advocate adopts a policy that (h) and (i) of this section apply.
11. Notwithstanding (a) — (j) of this section, the governor or a designee of the governor may, on a case-by-case basis, authorize for a partially exempt employee in the executive branch a higher pay than Step F. The authorization must be based on a determination that the action serves a critical governmental interest of the state, the employee possesses exceptional qualifications, recruitment difficulties exist, or the action is necessary due to competitive salaries in the relevant labor market. A determination made under this subsection must be in writing.

Range Step Step Step Step Step Step No. A B C D E F 5 2,151 2,211 2,273 2,339 2,408 2,471 6 2,273 2,339 2,408 2,471 2,543 2,619 7 2,408 2,471 2,543 2,619 2,698 2,785 8 2,543 2,619 2,698 2,785 2,864 2,951 9 2,698 2,785 2,864 2,951 3,046 3,133 10 2,864 2,951 3,046 3,133 3,229 3,323 11 3,046 3,133 3,229 3,323 3,436 3,545 12 3,229 3,323 3,436 3,545 3,665 3,790 13 3,436 3,545 3,665 3,790 3,922 4,061 14 3,665 3,790 3,922 4,061 4,204 4,363 15 3,922 4,061 4,204 4,363 4,503 4,672 16 4,204 4,363 4,503 4,672 4,841 5,011 17 4,503 4,672 4,841 5,011 5,184 5,361 18 4,841 5,011 5,184 5,361 5,527 5,737 19 5,184 5,361 5,527 5,737 5,917 6,133 20 5,527 5,737 5,917 6,133 6,318 6,551 21 5,917 6,133 6,318 6,551 6,752 6,997 22 6,318 6,551 6,752 6,997 7,225 7,483 23 6,752 6,997 7,225 7,483 7,733 8,022 24 7,225 7,483 7,733 8,022 8,289 8,569 25 7,733 8,022 8,289 8,569 8,879 9,210 26 8,022 8,289 8,569 8,879 9,210 9,541 27 8,289 8,569 8,879 9,210 9,541 9,900 28 8,569 8,879 9,210 9,541 9,900 10,244 29 8,879 9,210 9,541 9,900 10,244 10,606 30 9,210 9,541 9,900 10,244 10,606 10,979

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History. (§ 12 ch 148 SLA 1976; am § 1 ch 92 SLA 1977; am §§ 1, 10 ch 80 SLA 1978; am §§ 1, 16, 30, 31, 38 ch 3 SLA 1980; am § 1 ch 50 SLA 1982; am § 1 ch 83 SLA 1983; am § 4 ch 87 SLA 1985; am § 7 ch 21 SLA 1987; am § 1 ch 46 SLA 1990; am §§ 9, 10 ch 19 SLA 1991; am § 11 ch 4 FSSLA 1996; am §§ 3 — 5, 8 ch 2 TSSLA 2000; am §§ 4 — 6 ch 53 SLA 2005; am §§ 11 — 14 ch 21 SLA 2008; am §§ 1 — 3 ch 56 SLA 2010; am §§ 10 — 12, 14 ch 47 SLA 2013)

Cross references. —

For salary adjustments comparable to those made in the salary schedule in (a) of this section to employees of the executive branch who are in the exempt service, not members of collective bargaining units, and not otherwise covered by this section, see § 4, ch. 56, SLA 2010, in the 2010 Temporary and Special Acts, and to judicial officers and employees of the judicial branch, see § 5, ch. 56, SLA 2010, in the 2010 Temporary and Special Acts. For salary increases for certain employees of the University of Alaska payable “in accordance with the compensation policy of the Board of Regents of the University of Alaska,” see § 6, ch. 56, SLA 2010, in the 2010 Temporary and Special Acts.

For language authorizing adoption of compensation policies like the pay increments authorized by (h) and (i) of this section for noncovered exempt officers and employees of the executive branch, see § 19(b), ch. 21, SLA 2008, in the 2008 Temporary and Special Acts. For language authorizing adoption of those pay increment policies for certain employees of the judicial branch, see § 20(b), ch. 21, SLA 2008, in the 2008 Temporary and Special Acts.

For transition provisions related to (h) and (i) of this section, see §§ 23 and 24, ch. 21, SLA 2008, in the 2008 Temporary and Special Acts.

For applicability of the 2013 changes to (a), (e), and (f) of this section to public officers in the exempt service under AS 39.25.110 who are not members of a collective bargaining unit established under AS 23.40.070 — 23.40.260 (Public Employment Relations Act) or otherwise covered by (a) of this section, see sec. 20, ch. 47, SLA 2013 in the 2013 Temporary and Special Acts.

For applicability of the 2013 changes to (a), (e), and (f) of this section to permanent and temporary employees and magistrates in the judicial branch, and to judges and justices, see sec. 21, ch. 47, SLA 2013 in the 2013 Temporary and Special Acts.

For salary increases for certain employees of the University of Alaska payable “in accordance with the compensation policy of the Board of Regents of the University of Alaska” see sec. 22, ch. 47, SLA 2013 in the 2013 Temporary and Special Acts.

For applicability of (k) of this section, see sec. 23, ch. 47, SLA 2013 in the 2013 Temporary and Special Acts.

Administrative Code. —

For adjustments to judicial salaries, see 2 AAC 6.

For pay, see 2 AAC 7, art. 8.

Effect of amendments. —

The 2013 amendment, effective July 1, 2013, rewrote (a), changing the salary amounts in the schedule; in (e), substituted “July 1, 2014” for “July 1, 2011” and “one percent” for “two percent”; in (f), substituted “July 1, 2015” for “July 1, 2012” and “2.5 percent” for “two percent”; added (k); and effective July 1, 2015, substituted “3.25 percent” for “3.75 percent” in (h).

Editor’s notes. —

Section 25, ch. 21, SLA 2008, makes the 2008 repeal and reenactment of (a) of this section retroactive to July 1, 2007.

Legislative history reports. —

For transition provisions related to (h) and (i) of this section, see §§ 23 and 24, ch. 21, SLA 2008, in the 2008 Temporary and Special Acts.

For governor’s transmittal letter for ch. 21, SLA 2008 (HB 417), relating to compensation of certain public officials, officers, and employees not covered by collective bargaining agreements, see 2008 House Journal 2146 — 2148.

For governor’s transmittal letter for ch. 56, SLA 2010 (HB 421), relating to compensation of certain public officials, officers, and employees not covered by collective bargaining agreements, see 2010 House Journal 1904.

For governor’s transmittal letter concerning the 2013 changes to this section made in ch. 47, SLA 2013 (SB 95), see 2013 Senate Journal 888 — 890.

Opinions of attorney general. —

Interpreting the longevity pay increments provided for by former AS 39.27.022 , so as to suggest that these increments may not be salary steps and, therefore, employees receiving these longevity increments who are promoted to a higher job series are not entitled to the salary increases required by Personnel Rule 9.02.13 and article 7 of the agreement between the state of Alaska and Alaska Public Employees Association covering the general government unit would be at variance with the legislative intent expressed in that section. September 11, 1974 Op. Att’y Gen.

A partially exempt deputy department head is eligible to receive longevity step increases while serving in that position. Mar. 24, 1999, Op. Att’y Gen.

Sec. 39.27.012. Temporary salary schedules.

The director of the division of personnel may establish salary schedules providing lesser amounts than those in the basic salary schedule in order to meet salary limit requirements for receipt and expenditure of federal funds. Salary rates established under authority of this section do not affect the salaries of employees provided for by a collective bargaining agreement negotiated under the authority of AS 23.40.070 — 23.40.260 (Public Employment Relations Act).

History. (§ 2 ch 138 SLA 1975; am § 44 ch 30 SLA 1996)

Revisor’s notes. —

Section 6, ch. 138, SLA 1975, provided that this section would be repealed on the effective date of a pay schedule adopted under a section enacted by a particular bill. However, that bill did not become law.

Sec. 39.27.015. Cost-of-living adjustments. [Repealed, § 12 ch 80 SLA 1978.]

Sec. 39.27.020. Geographic pay differentials.

1. The following geographic pay differentials established as a percentage above the basic salary schedule provided in AS 39.27.011 are approved as an amendment to the basic salary schedule provided in AS 39.27.011 :
2. If an employee’s duty station is not included in (a) of this section and is not in a foreign country, the commissioner of administration shall establish by regulation the appropriate geographic pay differential. The regulations are not subject to AS 44.62 (Administrative Procedure Act).
3. The commissioner of administration shall establish geographic pay differentials for positions in foreign countries. The differentials shall be adjusted annually, effective July 1, to maintain equity between salaries for positions in foreign countries and salaries for positions in the state.

Duty Station Geographic PayDifferential Anchor Point 0 Anchorage 0 Anchorage International Airport 0 Aniak 50 Anvik 50 Auke Bay 5 Barrow 50 Bethel 50 Camp Carroll 0 Cantwell 0 Chena River 3 Chignik 50 Chitina 0 Cold Bay 50 Coldfoot Camp 37 Cooper Landing 0 Cordova 11 Craig 0 Crown Point 0 Deadhorse 50 Delta Junction 0 Denali 0 Dillingham 37 Douglas 5 Dutch Harbor 60 Eagle 0 Eagle River 0 Eielson Air Force Base 3 Elfin Cove 0 Elmendorf Air Force Base 0 Emmonak 50 Fairbanks 3 Finger Lake 0 Fort Richardson 0 Fort Wainwright 3 Fort Yukon 37 Gakona 0 Galena 37 Girdwood 0 Glennallen 0 Gustavus 0 Haines 0 Harding Lake 3 Healy 0 Homer 0 Hoonah 0 Iliamna 50 Juneau 5 Kaltag 50 Kenai 0 Ketchikan 0 King Cove 50 King Salmon 50 Klawock 0 Kodiak 11 Kotzebue 60 Mackenzie Point 0 Matanuska 0 McGrath 37 Mount Edgecumbe 5 Nancy 0 Nenana 0 Nikiski 0 Ninilchik 0 Nome 37 Northway 0 Palmer 0 Pelican 0 Petersburg 0 Port Alsworth 50 Port Moller 50 Saint Mary’s 50 Sand Point 50 Selawik 60 Seward 0 Sitka 5 Skagway 0 Soldotna 0 Sterling 0 Sutton 0 Talkeetna 0 Tazlina 0 Tenakee Springs 0 Tok 0 Trapper Creek 0 Unalakleet 50 Unalaska 60 Valdez 11 Wasilla 0 Whittier 0 Willow 0 Wrangell 0 Yakutat 0 Other states 0

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History. (§ 1 ch 158 SLA 1966; am § 8 ch 101 SLA 1969; am § 2 ch 87 SLA 1971; am § 3 ch 47 SLA 1974; am § 3 ch 138 SLA 1975; am § 13 ch 148 SLA 1976; am §§ 32, 33 ch 3 SLA 1980; am § 45 ch 30 SLA 1996; am § 15 ch 47 SLA 2013)

Revisor’s notes. —

Section 6, ch. 138, SLA 1975, provided that this section would be repealed on the effective date of a pay schedule adopted under a section enacted by a particular bill. However, that bill did not become law.

Cross references. —

For transition provisions relating to application of the geographic pay differential to certain state employees employed on July 1, 2013, see sec. 24, ch. 47, SLA 2013 in the 2013 Temporary and Special Acts.

Effect of amendments. —

The 2013 amendment, effective July 1, 2013, rewrote the section.

Legislative history reports. —

For governor’s transmittal letter concerning the 2013 changes to this section, see 2013 Senate Journal 888 — 890.

Sec. 39.27.022. Pay increments for longevity in state service. [Repealed, § 17 ch 21 SLA 2008.]

Sec. 39.27.025. Swing and graveyard shift differentials.

1. Classified and partially exempt state employees who regularly work a “swing” shift beginning between 12:00 noon and 7:59 p.m. are entitled to a one-step increase over their normal pay established by this chapter.
2. Classified and partially exempt state employees who regularly work a “graveyard” shift beginning between 8:00 p.m. and 3:59 a.m. are entitled to a two-step increase over their normal pay established by this chapter.

History. (§ 3 ch 87 SLA 1971)

Sec. 39.27.030. Geographic pay differential survey.

Subject to appropriation, the director of the division of personnel shall conduct a survey, at least every five years, to review the geographic pay differentials under AS 39.27.020 . The survey may address factors the director determines are relevant to review state salary schedules, entitlements for beneficiaries of state programs, and payments for state service providers. The survey must reflect the cost of living for duty stations in the state or outside of the state by using the cost of living in Anchorage, Alaska, as a base.

History. (§ 1 ch 226 SLA 1970; am §§ 1, 2, 4 ch 42 SLA 1971; am § 12 ch 4 FSSLA 1996; am § 86 ch 21 SLA 2000; am § 16 ch 47 SLA 2013)

Cross references. —

For gathering data reflecting the cost of living in various election districts, see AS 44.31.020 (4).

Effect of amendments. —

The 2013 amendment, effective July 1, 2013, rewrote the section.

Editor’s notes. —

Under § 45, ch. 4, FSSLA 1996, the provisions of that act, which amended this section, are not severable, notwithstanding AS 01.10.030 .

Legislative history reports. —

For governor’s transmittal letter concerning the 2013 changes to this section made in sec. 16, ch. 47, SLA 2013 (SB 95), see 2013 Senate Journal 888 — 890.

Sec. 39.27.035. Preparation and submission of pay schedules. [Repealed, § 20 ch 4 FSSLA 1996.]

Sec. 39.27.040. University salary survey. [Repealed, § 20 ch 4 FSSLA 1996.]

Sec. 39.27.045. Definition. [Repealed, § 19 ch 47 SLA 2013.]

Sec. 39.28.010. Administration of equal employment opportunity program.

The director of personnel shall administer the equal employment opportunity program for the executive branch of state government to assure compliance with this chapter.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.020. Powers and duties of the director of personnel regarding the administration of the equal employment opportunity program.

1. The director of the division of personnel shall
   1. assist state officials to carry out their equal employment opportunity responsibilities, including promoting the recruitment, employment, training, and retention of members of protected classes, and recommend solutions to any problems identified;
   2. train state managers and supervisors in their equal employment opportunity and affirmative action responsibilities and offer orientation programs to employees to inform them of their rights and responsibilities under this chapter;
   3. monitor records of personnel actions, develop auditing and reporting systems to acquire statistical information, and prepare federal and state reports concerning the composition of the work force;
   4. prepare and submit the affirmative action plan for employment in the executive branch of state government to the governor;
   5. prepare guidelines for the affirmative action programs of agencies and review, audit, and make recommendations concerning the programs;
   6. ensure that agencies comply with the affirmative action plan and with the agency affirmative action program;
   7. implement standards by which performance evaluations of supervisors reflect compliance with affirmative action plans and objectives, including the granting or denial of merit increases;
   8. assist the division of labor relations in collective bargaining negotiations between the state and employee bargaining organizations to ensure that each collective bargaining agreement negotiated by the state ensures equal employment opportunity;
   9. file quarterly reports with the governor and the legislature concerning agency compliance with and progress in its affirmative action program, the affirmative action plan, state and federal equal employment opportunity laws and regulations;
   10. accept, investigate, and resolve complaints of discrimination from employees, previous employees, or applicants for employment;
   11. serve as primary liaison between the executive branch and state and federal agencies, minority and women’s organizations, and community groups concerned with equal employment opportunity; and
   12. prepare and submit an annual report to the governor and the legislature by February 15 on the progress and problem areas in the equal employment opportunity program and the implementation of the affirmative action plan.
2. The director of personnel may
   1. recommend legislative or administrative action to the governor, through the commissioner of administration, relating to equal employment opportunity and affirmative action matters;
   2. require the purging of the records of a complaint of unlawful discrimination from the personnel file of an employee who has filed a complaint of unlawful discrimination;
   3. forbid an agency to hire or promote employees based on a discriminatory employment practice;
   4. require an agency to reverse a personnel action including a hiring decision if the director finds that the action was based on a discriminatory employment practice;
   5. require an agency to change its selection procedures if the director finds that the procedures violate state or federal laws prohibiting employment discrimination; and
   6. when there is reason to believe that an employee has violated this subsection, require the agency to investigate and to impose discipline if the investigation reveals facts warranting it.
3. A collective bargaining agreement adopted under AS 23.40.070 — 23.40.260 (Public Employment Relations Act) must be consistent with principles of equal employment opportunity and affirmative action. This chapter supersedes the provisions of AS 39.25 (State Personnel Act).

History. (E.O. No. 104 § 2 (2003))

Revisor’s notes. —

In 2003, following the section catchline, “(a)” was inserted to correct a manifest error in Executive Order 104.

Sec. 39.28.030. Administrative regulations.

The department shall adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out the division of personnel’s duties under this chapter.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.040. Affirmative action plan.

The department shall establish an equal employment opportunity program and adopt annually an affirmative action plan for the executive branch of state government. The plan remains in effect until the department establishes a subsequent plan. The director of personnel shall work with each agency to enhance equal employment opportunity.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.050. Compliance with affirmative action plan.

1. Each agency shall comply with the affirmative action plan. Each commissioner or executive head of an agency shall adopt an affirmative action program to implement the plan within the agency. At the request of the director of personnel, a state official shall report to the director of personnel about agency employment practices and activities to implement and comply with the plan or program.
2. When the director of personnel finds that an agency has violated the affirmative action plan or its affirmative action program, the director of personnel may
   1. suspend the hiring authority of the agency; and
   2. impose mandatory affirmative action measures on the agency to bring the agency into compliance.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.055. Individuals with disabilities.

1. When administering requirements of this chapter related to the vocational training, vocational rehabilitation, or employment placement of an individual with a disability who can reasonably be expected to benefit in terms of employability from the provision of vocational rehabilitation services, the department’s primary objective and preferred outcome is to help the individual become gainfully employed in an integrated workplace where individuals with disabilities work with and alongside of individuals without disabilities.
2. Nothing in this section requires the hiring of an individual with a disability.
3. In this section,
   1. “gainfully employed” means employed full time or part time for compensation that is
      1. at or above the minimum wage; and
      2. not less than the compensation paid by the employer for the same or similar work performed by an individual who is not disabled;
   2. “individual with a disability” means an individual who has a physical or mental impairment that substantially limits one or more major life activities and that constitutes or results in a substantial barrier to employment.

History. (§ 4 ch 19 SLA 2014)

Revisor’s notes. —

This section was enacted as AS 39.28.040(b) — (d) by sec 4, ch. 19, SLA 2014 and was renumbered in 2014 at which time subsections (b) — (d) were relettered as (a) — (c).

Effective dates. —

Section 4, ch. 19, SLA 2014, which enacted this section, took effect on August 27, 2014.

Sec. 39.28.060. Employment discrimination complaints.

1. The division of personnel shall accept complaints of employment discrimination in the executive branch of state government and shall confer with the complainant and the agency involved to bring about an informal resolution of a complaint.
2. An agency shall notify the division of personnel when the agency receives a complaint alleging employment discrimination.
3. The director of personnel may not make public the records of a complaint or investigation under this chapter.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.070. Retaliation prohibited.

1. An agency, officer, or state employee may not directly or indirectly refuse to hire, transfer, or promote, or dismiss, demote, suspend, lay off, or otherwise discipline a person for filing a complaint with the division of personnel for a failure to comply with affirmative action or equal employment opportunity or for assisting the division of personnel in an investigation of a complaint.
2. A person who knowingly violates this section is liable for a civil penalty of not more than $1,000.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.080. Access to confidential records.

The director of personnel may have access to all data, records, and reports necessary to carry out its functions under this chapter. The director of personnel may not make public information designated as confidential by AS 39.25.080 or another law. However, the director of personnel may make public statistical information compiled from confidential records.

History. (E.O. No. 104 § 2 (2003))

Sec. 39.28.200. Definitions.

In this chapter, unless the context requires otherwise,

1. “agency” means a department, office, agency, public corporation, board, commission, authority, or other organizational unit of the executive branch;
2. “department” means the Department of Administration;
3. “director of personnel” means the director of personnel appointed under AS 39.25.040 ;
4. “division of personnel” means the division of personnel established by AS 39.25.030 ;
5. “employment in the executive branch of state government” includes employment as a permanent, probationary, provisional, nonpermanent, or temporary employee in the classified, partially exempt, or exempt services in the executive branch of state government;
6. “member of a protected class” means a person protected by federal or state laws that prohibit discrimination in employment or a person who experiences or has experienced difficulty in obtaining employment or advancement in employment because of another factor not related to merit.

History. (E.O. No. 104 § 2 (2003))

Revisor’s notes. —

Enacted as AS 39.27.900. Renumbered in 2003.

Sec. 39.30.010. Federal territorial agreement.

1. The director of finance, with the approval of the governor, may on behalf of the territory enter into an agreement with the Federal Security Administrator, consistent with AS 39.30.010 — 39.30.080 , for the purpose of extending the benefits of the federal old age and survivors insurance system to employees of the territory or a political subdivision with respect to services specified in the agreement that constitute employment.
2. The agreement may contain provisions relating to coverage, benefits, contributions, effective date, modification and termination of the agreement, administration, and other appropriate provisions that the parties agree upon, but, except as may be otherwise required under the Social Security Act as to the services to be covered, the agreement shall provide in effect that
   1. benefits will be provided for employees whose services are covered by the agreement, and their dependents and survivors, on the same basis as though the services constituted employment within the meaning of 42 U.S.C. 401 — 433 (Title II, Social Security Act);
   2. the territory will pay to the secretary of the treasury, as may be prescribed under 42 U.S.C. 301 — 1397f (Social Security Act), contributions with respect to wages equal to the sum of the taxes that would be imposed by 26 U.S.C. 3101 and 3111 (Federal Insurance Contributions Act) if the services covered by the agreement constituted employment within the meaning of that act;
   3. the agreement shall be effective with respect to services in employment covered by the agreement performed from the date specified in it or, as to services to which the agreement is extended by a modification to it, from the date specified in the modification;
   4. all services that constitute employment and are performed in the employ of the territory by employees of the territory shall be covered by the agreement; and
   5. all services which (A) constitute employment, (B) are performed in the employ of a political subdivision of the territory, and (C) are covered by a plan which conforms to the agreement and is approved as set out in AS 39.30.030 shall be covered by the agreement.

History. (§ 3 ch 95 SLA 1951; am § 1 ch 125 SLA 1951; am § 1 ch 89 SLA 1957)

Revisor’s notes. —

This section gave the territory the legal authority to enter into an agreement extending the coverage of the federal Social Security Act to employees of the territory. The agreement was entered into on September 26, 1951, and is continued in effect by § 2, art. XV of the state constitution continuing contracts of the territory and making the state legal successor to the territory. Since the agreement is in effect, the term “territory” has not been changed to “state” in this section. However, in AS 39.30.020 — 39.30.080 , which relate to the continuing coverage of the agreement, the change from “territory” to “state” has been made.

Section 7, Chapter 58, SLA 1979, provided for an election to decide if the state should withdraw from the federal Social Security System. The election was held in September, 1979, and the state employees voted to withdraw. Withdrawal from the federal Social Security System was subsequently accomplished. Consequently, the agreement in this section no longer has any application to employees of the state.

Cross references. —

For the supplemental benefits program that replaces Social Security for state employees, see AS 39.30.150 — 39.30.180 .

Collateral references. —

70A Am. Jur. 2d, Social Security and Medicare, § 1 et seq.

81 C.J.S. Social Security, § 1 et seq.

Sec. 39.30.020. Contributions by employees.

1. An employee whose services are covered by an agreement under AS 39.30.010 shall pay for the period of coverage, into the state treasury, contributions equal to the amount of tax that would be imposed by 26 U.S.C. 3101 (Federal Insurance Contributions Act) if the services constituted employment within the meaning of that Act.
2. The contribution shall be collected by deducting the amount of the contribution from wages. Failure to make deduction does not relieve the employee from liability for the contribution.
3. If more or less than the correct amount of the contribution is paid or deducted, an adjustment or, if adjustment is impracticable, a refund shall be made without interest, in the manner prescribed by the department.

History. (§ 4 ch 95 SLA 1951; am § 1 ch 64 SLA 1968; am § 80 ch 59 SLA 1982)

Sec. 39.30.030. Plans for coverage of employees of political subdivisions.

1. A political subdivision of the state may submit for approval by the department a plan for extending the benefits of 42 U.S.C. 401 — 433 (Title II, Social Security Act) to its employees. A plan and an amendment to the plan shall be approved by the department if it finds that the plan or amendment
   1. conforms with the requirements prescribed in regulations of the department;
   2. conforms with the requirements of the Social Security Act and with the agreement entered into under AS 39.30.010 ;
   3. provides that services that constitute employment and are performed in the employ of the political subdivision by employees are covered by it;
   4. specifies the source from which the funds necessary to make the payments required by (d) and (e) of this section are expected to be derived and contains reasonable assurance that the source will be adequate for the purpose;
   5. provides for those methods of administration of the plan by the political subdivision that the department finds are necessary for the proper and efficient administration of the plan;
   6. provides that the political subdivision will make reports that the department requires, and will comply with requirements of the department or the Federal Security Administrator to assure the correctness and verification of the reports; and
   7. authorizes the department to terminate the plan in its entirety in its discretion if it finds that there is a failure to comply substantially with a provision in the plan at the time and upon the notice and conditions provided by regulations of the department that are consistent with the Social Security Act.
2. The department may not refuse to approve a plan submitted by a political subdivision under (a) of this section, and may not terminate an approved plan, without reasonable notice and opportunity for hearing to the political subdivision affected.
3. A political subdivision that has an approved plan shall pay contributions into the state treasury at the rates specified in the agreement and at the time which the department prescribes by regulation.
4. A political subdivision required to make payments under (c) of this section may, in consideration of the employee’s retention in, or entry into, employment after March 23, 1951, impose upon each of its employees, as to services that are covered by an approved plan, a contribution with respect to the employee’s wages, not exceeding the amount of tax that would be imposed by 26 U.S.C. 3101 (Federal Insurance Contributions Act) if the services constituted employment within the meaning of that act, and may deduct the amount of this contribution from the employee’s wages.  Contributions so collected shall be paid into the state treasury in partial discharge of the liability of the political subdivision or instrumentality under (c) of this section.  Failure to deduct the contribution does not relieve the employee or employer of liability for it.
5. A delinquent payment due under (c) of this section, with interest at the rate of six percent a year, may be recovered by action against the political subdivision liable for it or may, at the request of the department, be deducted from any other money payable to the political subdivision by a department or agency of the state.

History. (§ 5 ch 95 SLA 1951; am §§ 2, 3 ch 64 SLA 1968)

Revisor’s notes. —

In 1987, “(c)” was substituted for “(1)” in the second sentence of subsection (d) in order to correct a manifest error in the 1962 recodification.

Sec. 39.30.040. Deposits and withdrawals.

1. Unless otherwise provided by law, there shall be deposited in the state treasury in trust all contributions collected under AS 39.30.010 — 39.30.080 .
2. The department has power, authority, and jurisdiction over this trust and may perform all acts whether or not specifically designated that are necessary to the administration of this trust.
3. This trust shall be used and administered exclusively for the purpose of AS 39.30.010 — 39.30.080 .  Withdrawals may be made only for
   1. payment of amounts required to be paid to the secretary of the treasury by an agreement entered into under AS 39.30.010 ;
   2. payment of the refunds provided for in AS 39.30.020(c) ; and
   3. refunds of overpayments, not otherwise adjustable, made by a political subdivision or instrumentality.

History. (§ 6 ch 95 SLA 1951; am § 4 ch 64 SLA 1968)

Sec. 39.30.050. Administrative costs.

The department shall collect from each participating political subdivision its respective pro rata share of the expenses incurred in the administration of AS 39.30.010 — 39.30.080 . The amounts collected from participating political subdivisions, together with money appropriated by the state for covering the state’s share of administrative costs, shall be deposited in an FICA administration fund and are not allocable to any other purpose. Expenditures from the FICA administration fund shall be included in the governor’s budget for each fiscal year and are subject to appropriation by the legislature. At the time of preparation of the governor’s annual budget the department shall review the FICA administration fund and adjust the rate of assessment on political subdivisions so as to prevent the accumulation of more money than is needed to administer AS 39.30.010 — 39.30.080 .

History. (§ 7 ch 95 SLA 1951; am § 1 ch 13 SLA 1960)

Sec. 39.30.060. Regulations.

The department shall adopt and publish the regulations not inconsistent with AS 39.30.010 — 39.30.080 that it finds necessary or appropriate to the efficient administration of its functions under AS 39.30.010 — 39.30.080 .

History. (§ 8 ch 95 SLA 1951)

Sec. 39.30.070. Studies and reports. [Repealed, § 35 ch 126 SLA 1994.]

Sec. 39.30.080. Definitions.

In AS 39.30.010 — 39.30.080 ,

1. “department” means the Department of Administration;
2. “employee” includes an officer of a political subdivision of the state;
3. “employment” means any service performed by an employee of a political subdivision of the state, except (A) service that in the absence of an agreement entered into under AS 39.30.010 — 39.30.080 would constitute “employment” as defined in the Social Security Act; or (B) service that under the Social Security Act may not be included in an agreement between the state and the Federal Security Administrator entered into under AS 39.30.010 — 39.30.080 ;
4. “Federal Insurance Contributions Act” means subchapter A of chapter 9 of the Federal Internal Revenue Code as amended;
5. “Federal Security Administrator” includes an individual to whom the Federal Security Administrator has delegated any functions under the Social Security Act with respect to coverage under that act of employees of states and territories and their political subdivisions;
6. “political subdivision” includes an instrumentality of the state or of a political subdivision, or of the state and a political subdivision, but only if the instrumentality is a juristic entity legally separate and distinct from the state or the political subdivision and only if its employees are not, by virtue of their relation to the juristic entity, employees of the state or the political subdivision;
7. “Social Security Act” means the Act of Congress approved August 14, 1935, chapter 531, 49 Stat. 620, cited as the “Social Security Act,” including regulations and requirements issued under it, and its amendments;
8. “wages” means remuneration for employment, including the cash value of remuneration paid in any medium other than cash, except that “wages” does not include that part of remuneration that, even if it were for “employment” within the meaning of the Federal Insurance Contributions Act, would not constitute “wages” within the meaning of that Act.

History. (§ 2 ch 95 SLA 1951; am §§ 82, 83 ch 59 SLA 1982)

Editor’s notes. —

The Federal Insurance Contributions Act, referred to in paragraph (4), may be found in 26 U.S.C. §§ 3101 — 3125.

The Social Security Act, referred to in paragraph (7), may be found in 42 U.S.C. §§ 301 — 1397f.

Sec. 39.30.090. Procurement of group insurance.

1. The Department of Administration may obtain a policy or policies of group insurance covering state employees, persons entitled to coverage under AS 14.25.168 , 14.25.480 , AS 22.25.090 , AS 39.35.535 , 39.35.880 , or former AS 39.37.145, employees of other participating governmental units, or persons entitled to coverage under AS 23.15.136 , subject to the following conditions:
   1. a group insurance policy shall provide one or more of the following benefits: life insurance, accidental death and dismemberment insurance, weekly indemnity insurance, hospital expense insurance, surgical expense insurance, dental expense insurance, audiovisual insurance, or other medical care insurance;
   2. each eligible employee of the state, the spouse and the unmarried children chiefly dependent on the eligible employee for support, and each eligible employee of another participating governmental unit shall be covered by the group policy, unless exempt under regulations adopted by the commissioner of administration;
   3. a governmental unit may participate under a group policy if
      1. its governing body adopts a resolution authorizing participation and payment of required premiums;
      2. a certified copy of the resolution is filed with the Department of Administration; and
      3. the commissioner of administration approves the participation in writing;
   4. in procuring a policy of group health or group life insurance as provided under this section or excess loss insurance as provided in AS 39.30.091 , the Department of Administration shall comply with the dual choice requirements of AS 21.86.310 , and shall obtain the insurance policy from an insurer authorized to transact business in the state under AS 21.09, a hospital or medical service corporation authorized to transact business in this state under AS 21.87, or a health maintenance organization authorized to operate in this state under AS 21.86; an excess loss insurance policy may be obtained from a life or health insurer authorized to transact business in this state under AS 21.09 or from a hospital or medical service corporation authorized to transact business in this state under AS 21.87;
   5. the Department of Administration shall make available bid specifications for desired insurance benefits or for administration of benefit claims and payments to (A) all insurance carriers authorized to transact business in this state under AS 21.09 and all hospital or medical service corporations authorized to transact business under AS 21.87 who are qualified to provide the desired benefits; and (B) insurance carriers authorized to transact business in this state under AS 21.09, hospital or medical service corporations authorized to transact business under AS 21.87, and third-party administrators licensed to transact business in this state and qualified to provide administrative services; the specifications shall be made available at least once every five years; the lowest responsible bid submitted by an insurance carrier, hospital or medical service corporation, or third-party administrator with adequate servicing facilities shall govern selection of a carrier, hospital or medical service corporation, or third-party administrator under this section or the selection of an insurance carrier or a hospital or medical service corporation to provide excess loss insurance as provided in AS 39.30.091 ;
   6. if the aggregate of dividends payable under the group insurance policy exceeds the governmental unit’s share of the premium, the excess shall be applied by the governmental unit for the sole benefit of the employees;
   7. a person receiving benefits under AS 14.25.110 , AS 22.25, AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in effect under this section at the time of termination of employment with the state or participating governmental unit;
   8. a person electing to have insurance under (7) of this subsection shall pay the cost of this insurance;
   9. for each permanent part-time employee electing coverage under this section, the state shall contribute one-half the state contribution rate for permanent full-time state employees, and the permanent part-time employee shall contribute the other one-half;
   10. a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for that person and eligible dependents under this section; the level of coverage for persons over 65 shall be the same as that available before reaching age 65 except that the benefits payable shall be supplemental to any benefits provided under the federal old age, survivors, and disability insurance program; a person electing to have insurance under this paragraph shall pay the cost of the insurance; the commissioner of administration shall adopt regulations implementing this paragraph;
   11. a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person and eligible dependents under this section; a person who elects insurance under this paragraph shall pay the cost of the insurance premium; the commissioner of administration shall adopt regulations to implement this paragraph;
   12. each licensee holding a current operating agreement for a vending facility under AS 23.15.010 — 23.15.210 shall be covered by the group policy that applies to governmental units other than the state.
2. In this section,
   1. “eligible employee” means
      1. an employee who has served in permanent full-time or part-time employment with the same governmental unit for 30 days or more, except an emergency or temporary employee;
      2. an elected or appointed official of a governmental unit, effective upon taking the oath of office; and
      3. a contractual employee of the legislative branch of state government under AS 24.10.060(f) if the employee’s personal services contract provides that the employee is entitled to coverage;
   2. “governmental unit” means the state, a municipality, school district, or other political subdivision of the state, and the North Pacific Fishery Management Council;
   3. “insurance”, “insurance carrier” and “insurance policy” include health care services, health care service contractors and contracts, and health maintenance organizations.

History. (§§ 1, 2 ch 151 SLA 1955; am § 1 ch 168 SLA 1959; am §§ 1, 2 ch 105 SLA 1965; am § 1 ch 70 SLA 1968; am § 66 ch 69 SLA 1970; am § 1 ch 123 SLA 1970; am § 1 ch 159 SLA 1972; am §§ 1, 2 ch 46 SLA 1973; am §§ 13, 14 ch 47 SLA 1974; am §§ 2, 3 ch 27 SLA 1976; am § 2 ch 86 SLA 1977; am § 39 ch 177 SLA 1978; am § 1 ch 55 SLA 1979; am § 1 ch 62 SLA 1981; am § 37 ch 137 SLA 1982; am § 1 ch 46 SLA 1984; am §§ 13, 14 ch 82 SLA 1986; am § 2 ch 38 SLA 1990; am §§ 2, 3 ch 95 SLA 1990; am §§ 67 — 69 ch 63 SLA 1993; am § 106 ch 56 SLA 1996; am § 3 ch 22 SLA 1998; am § 69 ch 9 FSSLA 2005; am § 30 ch 22 SLA 2015)

Revisor’s notes. —

Subsection (b) was formerly AS 39.30.100 . Renumbered in 1987.

Cross references. —

For the purpose of the 1978 amendatory act, see § 1, ch. 177, SLA 1978 as amended by § 7, ch. 46, SLA 1982, in the 1982 Temporary and Special Acts and Resolves. For limited enrollment period for certain previously ineligible persons to apply for coverage under paragraph (7) of this section, see § 2, ch. 46, SLA 1984 in the Temporary and Special Acts. For legislative intent concerning the 1998 amendment to paragraph (b)(1), see § 1, ch. 22, SLA 1998 in the 1998 Temporary and Special Acts.

Administrative Code. —

For employment-related benefits for same-sex partners of state employees and retirees under the state’s retirement systems, see 2 AAC 38.

For long-term care insurance, see 2 AAC 39, art. 1.

For dental-vision-audio insurance, see 2 AAC 39, art. 2.

For major medical insurance, see 2 AAC 39, art. 3.

Effect of amendments. —

The 2015 amendment, effective May 15, 2015, made stylistic changes throughout.

Editor’s notes. —

Section 87, ch. 63, SLA 1993 provides “[i]f any section of this bill is found to violate the single subject rule it is severed from the rest of the bill.”

Opinions of attorney general. —

Because health insurance deals with the economic interests of employees and does not deal with fundamental policy, because this section, the group insurance statute, authorizes the Department of Administration to obtain “a policy or policies”, and because this section does not specify what levels of coverage or benefits must be included in the policy (or policies) obtained, the issue of group life and health insurance benefits is negotiable under the Public Employment Relations Act (AS 23.40.070 — 23.40.260 ). Jan. 23, 1978 Op. Att’y Gen.

To the extent the cost of negotiated group life and health insurance coverage exceeds what the state would have paid under its employer-sponsored plan, the negotiated coverage is subject to legislative approval under AS 23.40.215 . Jan. 23, 1978 Op. Att’y Gen.

Sec. 39.30.091. Authorization for self-insurance and excess loss insurance.

Notwithstanding AS 21.86.310 or AS 39.30.090 , the Department of Administration may provide, by means of self-insurance, one or more of the benefits listed in AS 39.30.090 (a)(1) for state employees eligible for the benefits by law or under a collective bargaining agreement and for persons receiving benefits under AS 14.25, AS 22.25, AS 39.35, or former AS 39.37, and their dependents. The department shall procure any necessary excess loss insurance under AS 39.30.090.

History. (§ 69 ch 63 SLA 1993; am § 27 ch 68 SLA 2000)

Editor’s notes. —

Section 87, ch. 63, SLA 1993 provides “[i]f any section of this bill is found to violate the single subject rule it is severed from the rest of the bill.”

Sec. 39.30.095. Group health and life benefits fund.

1. The commissioner of administration shall establish the group health and life benefits fund as a special account in the general fund to provide for group life and health insurance under AS 39.30.090 and 39.30.160 or for self-insurance arrangements under AS 39.30.091 . The commissioner shall maintain accounts and records for the fund. The fund consists of employer contributions, employee contributions, appropriations from the legislature, and income earned on investment of the fund as provided in (d) of this section.
2. After obtaining the advice of an actuary, the commissioner of administration shall determine the amount necessary to provide benefits under AS 39.30.090 , 39.30.091 , and 39.30.160 and, subject to (e) of this section, shall set the rate of employer contribution and employee contribution, if any. With money in the fund, the commissioner of administration shall pay premiums, claims, and administrative costs required under the insurance policies in effect under AS 39.30.090 and 39.30.160 , or required under self-insurance arrangements in effect under AS 39.30.091 .
3. The commissioner of administration or the designee of the commissioner is administrator of the fund. The commissioner may contract with
   1. an insurer authorized to transact business in this state under AS 21.09, or a hospital or medical service corporation authorized to transact business in this state under AS 21.87 to reimburse the state for the cost of administering group insurance provided under AS 39.30.090 and 39.30.160 ; and
   2. a life or health insurer authorized to transact business in the state under AS 21.09, a hospital or medical service corporation authorized to transact business in this state under AS 21.87, or a third-party administrator licensed to transact business in this state for the administration of benefit claims and payments under AS 39.30.091 .
4. If the commissioner of administration determines that there is more money in the fund than the amount needed to pay premiums, benefits, and administrative costs for the current fiscal year, the surplus, or so much of it as the commissioner of administration considers advisable, may be invested by the commissioner of revenue in the same manner as retirement funds are invested under AS 37.10.220 .
5. Notwithstanding (b) of this section, the rate of employer contribution to provide hospital, surgical, dental, audiovisual, and other medical care benefits under AS 39.30.091 is $515 monthly beginning July 1, 2000; $575 monthly beginning July 1, 2001; and $630 monthly beginning July 1, 2002, for the following employees and officials:
   1. employees in the executive branch of the state government, including the governor and lieutenant governor, who are not members of a collective bargaining unit established under the authority of AS 23.40.070 — 23.40.260 (Public Employment Relations Act);
   2. officials and employees of the legislative branch of state government under AS 24;
   3. employees in the judicial branch of state government, including magistrates and other judicial officers, who are not members of a collective bargaining unit established under AS 23.40.070 — 23.40.260 (Public Employment Relations Act).
6. In this section, “fund” means the group health and life benefits fund.

History. (§ 38 ch 137 SLA 1982; am § 57 ch 138 SLA 1986; am §§ 27, 28 ch 141 SLA 1988; am §§ 70 — 73 ch 63 SLA 1993; am § 107 ch 56 SLA 1996; am §§ 6, 7 ch 2 TSSLA 2000; am § 70 ch 9 FSSLA 2005)

Revisor’s notes. —

Subsection (e) was enacted as (f). Relettered in 2000, at which time former subsection (e) was relettered as (f) and a conforming amendment was made in subsection (b).

Editor’s notes. —

Section 87, ch. 63, SLA 1993 provides “[i]f any section of this bill is found to violate the single subject rule it is severed from the rest of the bill.”

Sec. 39.30.096. Accounting and disposition of fees. [Repealed, § 28 ch 90 SLA 1991.]

Sec. 39.30.097. Alaska retiree health care trusts.

1. The commissioner of administration is authorized to prefund medical benefits provided by AS 14.25.168 , AS 22.25.090 , and AS 39.35.535 by establishing an irrevocable trust that is exempt from federal income tax under 26 U.S.C. 115 and subject to the applicable financial reporting, disclosure, and actuarial requirements of the Governmental Accounting Standards Board.
2. The commissioner of administration is authorized to prefund medical benefits provided by AS 14.25.480 , AS 39.30.300 , and AS 39.35.880 by establishing an irrevocable trust that is exempt from federal income tax under 26 U.S.C. 115 and subject to the applicable financial reporting, disclosure, and actuarial requirements of the Governmental Accounting Standards Board.
3. The plans and assets of the Alaska retiree health care trusts shall be under the governance and investment authority of the Alaska Retirement Management Board, which shall serve as trustee of the trust as provided in AS 37.10.210 . The commissioner of administration or the commissioner’s designee shall serve as administrator of the Alaska retiree health care trusts.
4. All employer contributions, appropriations, earnings, and reserves for the payment of retiree medical obligations shall be credited to the retiree health care trusts. The prefunded amounts shall be available without fiscal year limitations for retiree medical benefits and administration costs. The amounts remaining in the trusts, if any, after retiree medical benefits and administration costs have been paid in any year shall be retained in the trusts for future payments until the satisfaction of all employer liabilities under the trusts for retiree medical benefits. All prefunded amounts shall be used solely for the payment of retiree medical benefits and administration costs and for no other purpose.
5. The assets of the Alaska retiree health care trusts may be pooled, for investment purposes, with assets of the retirement systems, so long as such assets are accounted for separately.

History. (§ 50 ch 20 SLA 2007)

Cross references. —

For provision directing the commissioner of administration to transfer to the retiree health care trusts established under this section the funds that have been deposited in the group health and life benefits fund under AS 39.30.095 , including funds in the retiree health insurance fund and retiree health benefit funds that may be held in other accounts, see § 118, ch. 20, SLA 2007, in the 2007 Temporary and Special Acts.

Legislative history reports. —

For governor’s transmittal letter for ch. 20, SLA 2007 (SB 123), proposing needed corrections and clarifications of statutes enacted as part of the 2005 legislation establishing defined contributions retirement plans and making related amendments to defined benefit retirement plans and to retiree medical and health care benefits to be administered under this section, see 2007 Senate Journal 567 — 570.

Sec. 39.30.098. Regulations.

The commissioner of administration may adopt regulations to implement AS 39.30.090 — 39.30.097 . Regulations adopted by the commissioner under this section relate to the internal management of state agencies, and their adoption is not subject to AS 44.62 (Administrative Procedure Act).

History. (§ 50 ch 20 SLA 2007)

Sec. 39.30.100. [Renumbered as AS 39.30.090(b).]

Sec. 39.30.130. Special hazard insurance.

Upon the request of any state department, the Department of Administration may procure insurance, in addition to workers’ compensation insurance, for employees of the department against accidental death or dismemberment occasioned by special hazards in connection with their employment.

History. (§ 1 ch 227 SLA 1970)

Sec. 39.30.150. Contributions.

1. In place of contributions to the federal social security system that would have been required on behalf of an employee had the participating employer belonged to the social security system, the participating employer shall contribute an amount equal to 6.13 percent of the wages of the employee up to the taxable wage base then in effect in the social security system. This contribution shall be paid into an individual employee annuity account in the Department of Administration under the terms of the State of Alaska Supplemental Annuity Plan. The department shall pay 6.13 percent of the wages of the employee up to the taxable wage base then in effect in the social security system into the individual employee annuity account established under this subsection. This wage reduction shall be treated as an employer contribution under 26 U.S.C. 414(h)(2). All costs of establishing and administering the programs established under AS 39.30.150 — 39.30.180 shall be paid from the contributions made to the individual employee annuity accounts under this section.
2. Employees of the division of marine transportation included in AS 39.35.095 — 39.35.680 through the process of collective bargaining under AS 39.35.680 (22)(D) may, under the terms of a collective bargaining agreement, utilize contributions made under (a) of this section on their behalf to offset the costs of inclusion in the public employees’ retirement system; however,
   1. the state is placed under no obligation to continue making contributions under this section if the state resumes participation in the federal social security system;
   2. the bargaining agreement must provide a mechanism for satisfying any residual liabilities that might exist if the state resumes participation in the federal social security system; and
   3. funds contributed under (a) of this section on behalf of employees who are not covered by maritime union contracts may not be obligated or expended to pay any costs associated with the inclusion of marine transportation employees in AS 39.35.095 — 39.35.680.
3. An employee may voluntarily elect additional wage reductions to be paid into special individual employee benefit accounts in the Department of Administration. Money in these accounts may only be used to purchase benefits selected by the employee under the supplemental benefits plan established by the administrator.

History. (§ 5 ch 58 SLA 1979; am §§ 2, 3 ch 135 SLA 1980; am §§ 16, 17 ch 146 SLA 1980; am §§ 1, 2 ch 55 SLA 1988; am § 71 ch 9 FSSLA 2005)

Revisor’s notes. —

In 2005, in subsection (b), “AS 39.35.680 (22)(D)” was substituted for “AS 39.35.680 (21)(D)” to reflect the 2005 renumbering of AS 39.35.680(21).

Legislative history reports. —

For governor’s transmittal letter on SSHB 252, from which ch. 55, SLA 1988 derives, see 1988 House Journal 2151-2153.

Sec. 39.30.151. Administrator.

The commissioner of administration or the commissioner’s designee is the administrator of the system.

History. (§ 72 ch 9 FSSLA 2005)

Sec. 39.30.153. Repayment of contributions.

Upon termination of employment the amount held on behalf of a terminating employee in the employee’s individual employee annuity account shall be paid to the employee under the terms of the State of Alaska Supplemental Annuity Plan.

History. (§ 39 ch 137 SLA 1982; am § 3 ch 55 SLA 1988)

Editor’s notes. —

Section 8, ch. 55, SLA 1988 provides that the amendments made to this section by ch. 55, SLA 1988 apply only “to contributions due the month after a determination is obtained that amendment of the plan in accordance with this Act will not adversely affect the deferral of taxes.”

Legislative history reports. —

For governor’s transmittal letter on SSHB 252, from which ch. 55, SLA 1988 derives, see 1988 House Journal 2151-2153.

Sec. 39.30.154. Powers and duties of the administrator.

The administrator has the same powers and duties with regard to the plan as those set out in AS 14.25.003 and 14.25.004 .

History. (§ 73 ch 9 FSSLA 2005; am § 51 ch 20 SLA 2007)

Sec. 39.30.155. Management and investment of fund.

The Alaska Retirement Management Board is the fiduciary of the fund and has the same powers and duties under this section in regard to the fund as are provided under AS 37.10.220 .

History. (§ 18 ch 146 SLA 1980; am § 74 ch 9 FSSLA 2005)

Administrative Code. —

For supplemental benefits system, see 2 AAC 37, art. 3.

Sec. 39.30.160. Benefits.

1. The Department of Administration shall, in accordance with policies prescribed by regulations adopted by the commissioner, provide to employees for whom special individual employee benefit accounts are established under AS 39.30.150(c) the following benefit options:
   1. supplemental health benefits;
   2. supplemental death benefits;
   3. supplemental disability benefits; and
   4. supplemental dependent care benefits.
2. An employee may select the types and amounts of supplemental benefits to be purchased with the money deposited in the employee’s special individual employee benefit accounts under AS 39.30.150 . The selection for employees described in AS 39.30.150 (a) must be from the benefit options listed in (a) of this section.
3. [Repealed, § 9 ch 55 SLA 1988.]
4. [Repealed, § 40 ch 146 SLA 1980.]
5. Regulations adopted by the commissioner implementing AS 39.30.150 and this section are not subject to AS 44.62 (Administrative Procedure Act).

History. (§ 5 ch 58 SLA 1979; am §§ 4, 5 ch 135 SLA 1980; am §§ 19 — 22, 40 ch 146 SLA 1980; am §§ 4, 5, 9 ch 55 SLA 1988; am §§ 75 — 77 ch 9 FSSLA 2005; am §§ 52, 53 ch 20 SLA 2007)

Administrative Code. —

For supplemental benefits system, see 2 AAC 37, art. 3.

Legislative history reports. —

For governor’s transmittal letter of SSHB 252, from which ch. 55, SLA 1988 derives, see 1988 House Journal 2151-2153.

Sec. 39.30.162. Safeguard of money.

1. Except as provided in the State of Alaska Supplemental Annuity Plan, amounts held on behalf of, or payable to, an employee or other person who is or who might become eligible for benefits under the plan are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or involuntary, before being received by the person entitled to the amount under the terms of the plan. An attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of a right to amounts held under the plan is void.
2. Except as provided in AS 09.38.065 , amounts held on behalf of, or payable to, an employee or other person who is or who might become eligible for benefits under the plan are exempt from garnishment, execution, or levy.

History. (§ 6 ch 55 SLA 1988)

Legislative history reports. —

For governor’s transmittal letter on SSHB 252, from which ch. 55, SLA 1988 derives, see 1988 House Journal 2151-2153.

Sec. 39.30.165. Appeals.

A final decision made under AS 39.30.150 — 39.30.180 is subject to appeal under AS 44.64.

History. (§ 54 ch 20 SLA 2007)

Sec. 39.30.170. Participation in program.

1. An employer may become a participating employer in the employee benefits program under AS 39.30.150 — 39.30.180 , if
   1. the employer participates as an employer in the public employees’ retirement system under AS 39.35; and
   2. the employer
      1. is eligible for membership in but has never elected to become a member of the federal social security system; or
      2. withdraws from membership in the federal social security system.
2. In order to become a participating employer, the employer shall file a request with the commissioner.  The request may be made only after adoption of a resolution by the legislative body of a municipality, if the employer is a municipality, or by the board of directors, if the employer is a public organization, and after approval of the resolution by the official required by law to approve the resolution.  A certified copy of the resolution shall be filed with the commissioner.
3. The commissioner shall approve the request if the commissioner finds that the employer has never participated in the federal social security system or has withdrawn from participation in the federal social security system.
4. The employer may begin participation as a participating employer covered by AS 39.30.150 — 39.30.180 on the date designated by the commissioner.

History. (§ 1 ch 135 SLA 1980; § 23 ch 146 SLA 1980)

Sec. 39.30.175. Investment of benefit program receipts.

1. The board is the fiduciary of the mandatory receipts, under AS 39.30.150(a) , of the employee benefits program established under AS 39.30.150 — 39.30.180 and has the same powers and duties concerning the management and investment in regard to those receipts as are provided under AS 37.10.220 .
2. The board may provide a range of investment options and permit a participant or beneficiary of the program to exercise control over the assets in the individual employee annuity account established under AS 39.30.150(a) . If the board offers investment options, and if a participant or beneficiary exercises control over the assets in the individual employee annuity account,
   1. the participant or beneficiary is not considered a fiduciary for any reason on the basis of exercising that control; and
   2. a person who is otherwise a fiduciary is not liable under this section for any loss, or by reason of any breach, that results from the individual’s exercise of control.
3. If the board is considering entering into a contract or modifying an existing contract concerning the management or investment of the mandatory receipts of the supplemental employee benefits program, the board shall consult with the commissioner of administration before making a decision on the issue.
4. The board shall develop a contingency plan that addresses the board’s response to possible future investment problems.
5. Except to the extent clearly set out in the terms of the plan document offered by the employer to the employee, the employer is not liable to the employee for investment losses if the prudent investment standard has been met.
6. [Repealed, § 132 ch 9 FSSLA 2005.]

History. (§ 14 ch 31 SLA 1992; am §§ 78, 132 ch 9 FSSLA 2005)

Sec. 39.30.180. Definitions.

In AS 39.30.150 — 39.30.180 ,

1. “board” means the board of trustees of the Alaska Retirement Management Board established under AS 37.10.210 ;
2. “commissioner” means the commissioner of the Department of Administration;
3. “participating employer” means
   1. the State of Alaska; and
   2. an employer
      1. who is an employer as defined in AS 39.35.680 ;
      2. who has never participated in or has withdrawn from participation in the federal social security system; and
      3. whose participation in the supplemental employee benefit program has been approved by the commissioner.

History. (§ 1 ch 135 SLA 1980; § 23 ch 146 SLA 1980; am § 79 ch 9 FSSLA 2005)

Revisor’s notes. —

Paragraph (1) was enacted as paragraph (3) and renumbered in 2005, at which time former paragraphs (1) and (2) were renumbered as (2) and (3).

Sec. 39.30.300. State of Alaska Teachers’ and Public Employees’ Retiree Health Reimbursement Arrangement Plan established.

The State of Alaska Teachers’ and Public Employees’ Retiree Health Reimbursement Arrangement Plan is established for teachers who first become members of the defined contribution plan of the teachers’ retirement system under AS 14.25.310 — 14.25.590 on or after July 1, 2006, and employees of the state, political subdivisions of the state, and public organizations of the state who first become members of the defined contribution plan of the public employees’ retirement system under AS 39.35.700 — 39.35.990 on or after July 1, 2006.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.310. Purpose and effective date.

1. The purpose of the plan is to allow medical care expenses to be reimbursed from individual savings accounts established for eligible persons.
2. The plan becomes effective July 1, 2006, at which time contributions by employers begin.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.320. Attorney general.

The attorney general of the state is the legal counsel for the plan and shall advise the administrator and represent the plan in a legal proceeding.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.330. Administrator.

The commissioner of administration or the commissioner’s designee is the administrator of the plan.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.335. Appeals.

A final decision made under AS 39.30.300 — 39.30.495 is subject to appeal under AS 44.64.

History. (§ 55 ch 20 SLA 2007)

Sec. 39.30.340. Powers and duties of the administrator.

The administrator shall establish a teachers’ and public employees’ retiree health reimbursement arrangement plan trust fund in which the assets of the plan shall be deposited and held. The retiree health reimbursement arrangement plan trust fund may be a sub-trust of the Alaska retiree health care trust established under AS 39.30.097(b) . The administrator has the same powers and duties with regard to the plan and the trust fund as provided in AS 14.25.003 and 14.25.004 .

History. (§ 80 ch 9 FSSLA 2005; am § 56 ch 20 SLA 2007)

Sec. 39.30.350. Employer contribution fund.

The fund established under AS 39.30.340 is an employer contribution fund. The value of the fund reflects employer contributions, expenses, and investment gains and losses. Employee contributions to the fund are not permitted.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.360. Management and investment of the fund.

The Alaska Retirement Management Board is the fiduciary of the fund and has the same powers and duties under this section in regard to the fund as are provided under AS 37.10.220 .

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.370. Contributions by employers.

For each member of the plan, an employer shall contribute to the teachers’ and public employees’ retiree health reimbursement arrangement plan trust fund an amount equal to three percent of the average annual compensation of all employees of all employers in the teachers’ retirement system and public employees’ retirement system. The administrator shall maintain a record for each member to account for employer contributions on behalf of that member. The board shall establish by regulation the rate of interest to be applied annually to the amount in a member’s individual account.

History. (§ 80 ch 9 FSSLA 2005; am § 57 ch 20 SLA 2007)

Sec. 39.30.380. Termination of employment.

A person who terminates employment before meeting the eligibility requirements of AS 14.25.470 or AS 39.35.870 loses any right to the contributions made on behalf of the person to the teachers’ and public employees’ retiree health reimbursement arrangement trust fund. If a person returns to employment with a participating employer by December 31 of the year in which the person reaches 65 years of age, the person’s account balance shall be restored in the amount recorded on the date of termination from the trust, adjusted for inflation at the rate of the Consumer Price Index for Anchorage, Alaska. The earlier period of employment with a participating employer shall be credited toward eligibility for medical benefits.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.390. Eligibility and reimbursement.

Persons who meet the eligibility requirements of AS 14.25.470 and AS 39.35.870 are eligible for reimbursements from the individual account established for a member under the plan, except members do not have to retire directly from the system. A person who is the dependent child of an eligible member is eligible for reimbursements if the eligible member and surviving spouse have both died so long as the person meets the definition of dependent child.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.400. Benefits payable from the individual account.

1. The administrator may deduct the cost of monthly premiums from the individual account for retiree major medical insurance on behalf of an eligible person who elected retiree major medical insurance under AS 14.25.480 or AS 39.35.880 .
2. Upon application of an eligible person, the administrator shall reimburse to the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d). Reimbursement is limited to the medical expenses of
   1. an eligible member, the spouse of an eligible member, and the dependent children of an eligible member; or
   2. a surviving spouse and the dependent children of an eligible member dependent on the surviving spouse.
3. When the member’s individual account balance is exhausted, the insurance premium deductions under (a) of this section and the reimbursement of medical care expenses under (b) of this section end.
4. If all eligible persons die before exhausting the member’s individual account, the account balance shall revert to the plan.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.410. Exemption from taxation and process.

1. Contributions and other amounts held in the plan on behalf of a member or other person who is or may become eligible for benefits under the plan may be used only to reimburse eligible medical expenses, are exempt from Alaska state and municipal taxes and federal taxes to the extent allowed under the Internal Revenue Code, and are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or involuntary, before they are received by the person entitled to the amount under the terms of the plan. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any right to amounts accrued in the plan is void. However, a member’s right to receive benefits may be assigned
   1. under a qualified domestic relations order; or
   2. to a trust or similar legal device that meets the requirements for a Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4).
2. Notwithstanding AS 09.38.065 , contributions and other amounts held in the plan and benefits payable under this plan are exempt from garnishment, execution, or levy.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.420. Amendment and termination of plan.

1. The state has the right to amend the plan at any time and from time to time, in whole or in part, including the right to make retroactive amendments referred to in 26 U.S.C. 401(b).
2. The plan administrator may not modify or amend the plan retroactively in such a manner as to reduce the benefits of any member accrued to date under the plan by reason of contributions made before the modification or amendment except to the extent that the reduction is permitted by the Internal Revenue Code.
3. The state may, in its discretion, terminate the plan in whole or part at any time without liability for the termination. If the plan is terminated, all investments remain in force until all individual accounts have been completely distributed under the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer.
4. Any contribution made by an employer to the plan because of a mistake of fact must be returned to the employer by the administrator within one year after the contribution or discovery, whichever is later.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.430. Exclusive benefit.

1. The corpus or income of the assets held in trust as required by the plan may not be diverted or used for other than the exclusive benefit of the participants.
2. The assets of the plan may not be used to pay premiums or contributions of the employer under another plan maintained by the employer.

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.30.440. Report to the Legislature on Health Care Cost-Saving Measures.

The Department of Administration shall provide an annual report to the legislature regarding the cost-saving measures it has implemented by regulation appropriate to current and future retirees in the health care system.

History. (§ 142 ch 9 FSSLA 2005)

Revisor’s notes. —

This section was enacted as sec. 142, ch. 9, FSSLA 2005, and codified in 2005.

Sec. 39.30.495. Definitions.

Unless the context requires otherwise, in AS 39.30.300 — 39.30.495 ,

1. “administrator” means the commissioner of administration or the commissioner’s designee;
2. “board” means the Alaska Retirement Management Board established under AS 37.10.210 ;
3. “compensation” has the meaning given in AS 14.25.590 ;
4. “dependent child” has the meaning given in AS 39.35.680 ;
5. “eligible person” means a person who meets the eligibility requirements of AS 14.25.470 or AS 39.35.870 ;
6. “employer” has the meaning given in AS 14.25.590 for employers of teachers in the defined contribution plan established in AS 14.25.310 — 14.25.590 and has the meaning given in AS 39.35.990 for employers of public employees in the defined contribution plan established in AS 39.35.700 — 39.35.990 ;
7. “fund” means the assets of the teachers’ and public employees’ retiree health reimbursement arrangement plan trust fund;
8. “individual account” means the record established by the administrator for individual employees under the teachers’ and public employees’ retiree health reimbursement arrangement plan;
9. “member” means a member of the defined contribution plan of the teachers’ retirement system in AS 14.25.310 — 14.25.590 or a member of the public employees’ retirement system in AS 39.35.700 — 39.35.990 ;
10. “plan” means the State of Alaska Teachers’ and Public Employees’ Retiree Health Reimbursement Arrangement Plan established in AS 39.30.300 ;
11. “qualified domestic relations order” has the meaning given in AS 14.25.220 .

History. (§ 80 ch 9 FSSLA 2005)

Sec. 39.35.001. Purpose.

The purpose of this chapter is to encourage qualified personnel to enter and remain in service with participating employers by establishing plans for the payment of retirement, disability, and death benefits to or on behalf of the members.

History. (§ 81 ch 9 FSSLA 2005)

Sec. 39.35.002. Attorney general.

The attorney general of the state is the legal counsel for the system and shall advise the administrator and represent the system in a legal proceeding.

History. (§ 81 ch 9 FSSLA 2005)

Sec. 39.35.003. Administrator.

1. The commissioner of administration or the commissioner’s designee is the administrator of the system.
2. The commissioner of administration shall adopt regulations to govern the operation of the system.

History. (§ 81 ch 9 FSSLA 2005)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

For employment-related benefits for same-sex partners of state employees and retirees under the state’s retirement systems, see 2 AAC 38.

Sec. 39.35.004. Powers and duties of the administrator.

1. The administrator shall
   1. establish and maintain an adequate system of accounts;
   2. transmit the funds deposited in the system to the retirement fund established and maintained by the Alaska Retirement Management Board;
   3. approve or disapprove claims for retirement benefits;
   4. make payments for the various purposes specified;
   5. submit periodic reports or statements of account that are needed;
   6. issue a statement of account to an employee not less than once each year showing the amount of the employee’s contributions to the applicable plan in the system;
   7. formulate and recommend to the commissioner of administration regulations to govern the operation of the system;
   8. as soon as possible after the close of each fiscal year, and not later than six months after the close of each fiscal year, send to the governor and the legislature an annual statement on the operations of each of the plans in the system containing
      1. a balance sheet;
      2. a statement of income and expenditures for the year;
      3. a report on valuation of trust fund assets;
      4. a summary of assets held in the trust fund listed by the categories of investment, as provided by the Alaska Retirement Management Board;
      5. other statistical financial data that are necessary for proper understanding of the financial condition of the system as a whole and each plan in the system and the result of its operations;
   9. engage an independent certified public accountant to conduct an annual audit of each plan’s accounts and the annual report of the system’s financial condition and activity;
   10. report to the Legislative Budget and Audit Committee concerning the condition and administration of each plan and distribute the report to the members of each plan in the system;
   11. publish an information handbook for each plan in the system at intervals that the administrator considers appropriate;
   12. meet at least annually with the board to review the condition and management of the retirement systems and to review significant changes to policies, regulations or benefits; and
   13. do whatever else may be necessary to carry out the purposes of each plan in the system.
2. The administrator is authorized to charge uniform fees to members’ accounts to cover the ongoing cost of operating each plan in the system.
3. The administrator is authorized to contract with public and private entities to provide record keeping, benefits payments, and other functions necessary for the administration of each plan in the system.
4. The administrator is authorized to determine the rate of interest assessed under AS 39.35.610(c) .

History. (§ 81 ch 9 FSSLA 2005; am § 1 ch 49 SLA 2018)

Effect of amendments. —

The 2018 amendment, effective June 30, 2018, added (d).

Sec. 39.35.005. Regulations.

1. Regulations adopted by the commissioner of administration under this chapter relate to the internal management of state agencies, and the adoption of these regulations is not subject to AS 44.62 (Administrative Procedure Act).
2. Notwithstanding (a) of this section, a regulation adopted under this chapter shall be published in the Alaska Administrative Register and Code for informational purposes.
3. Each regulation adopted under this chapter must conform to the style and format requirements of the drafting manual for administrative regulations that is published under AS 44.62.050 .
4. At least 30 days before the adoption, amendment, or repeal of a regulation under this chapter, the commissioner shall provide notice of the action that is being considered. The notice shall be
   1. posted in public buildings throughout the state;
   2. published in one or more newspapers of general circulation in each judicial district of the state;
   3. mailed to each person or group that has filed a request for notice of proposed action with the commissioner; and
   4. furnished to each member of the legislature and to the Legislative Affairs Agency.
5. Failure to mail notice to a person as required under (d)(3) of this section does not invalidate an action taken by the commissioner.
6. The commissioner may hold a public hearing on a proposed regulation.
7. A regulation adopted under this chapter takes effect 30 days after adoption by the commissioner.
8. Notwithstanding the other provisions of this section, a regulation may be adopted, amended, or repealed, effective immediately, as an emergency regulation by the commissioner. For an emergency regulation to be effective, the commissioner must find that the adoption, amendment, or repeal of the regulation is necessary for the immediate preservation of the orderly operation of the system. The commissioner shall, within 10 days after adoption of an emergency regulation, give notice of the adoption under (d) of this section.
9. In this section, “regulation” has the meaning given in AS 44.62.640(a) .

History. (§ 81 ch 9 FSSLA 2005)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

For employment-related benefits for same-sex partners of state employees and retirees under the state’s retirement systems, see 2 AAC 38.

Sec. 39.35.006. Appeals.

An employer, member, annuitant, or beneficiary may appeal a decision made by the administrator to the office of administrative hearings established under AS 44.64. An aggrieved party may appeal a final decision to the superior court.

History. (§ 81 ch 9 FSSLA 2005)

Sec. 39.35.007. Investment management of retirement system funds.

The Alaska Retirement Management Board established under AS 37.10.210 is the fiduciary of the system funds.

History. (§ 81 ch 9 FSSLA 2005)

Sec. 39.35.008. Definitions.

In AS 39.35.001 — 39.35.008 ,

1. “commissioner” means the commissioner of administration;
2. “plan” means the retirement plan established in AS 39.35.095 — 39.35.680 or the retirement plan established in AS 39.35.700 — 39.35.990 ;
3. “system” means all retirement plans established under the public employees’ retirement system.

History. (§§ 81, 82 ch 9 FSSLA 2005)

Sec. 39.35.010. Purpose and effective date; federal qualification requirements. [Repealed, § 132 ch 9 FSSLA 2005.]

Sec. 39.35.011. Exclusive benefit.

The corpus or income of the assets held in trust as required by the plan may not be diverted to or used for other than the exclusive benefit of the members or their beneficiaries.

History. (§ 28 ch 59 SLA 2002)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Secs. 39.35.020 — 39.35.047. Administration; Public Employees Retirement Board; Powers and duties of board; Regulations; Hearings. [Repealed, § 132 ch 9 FSSLA 2005.]

Sec. 39.35.050. Administrator. [Repealed, § 50 ch 13 SLA 1980 and § 116(a) ch 20 SLA 2007.]

Sec. 39.35.060. Duties of the administrator. [Repealed, § 132 ch 9 FSSLA 2005.]

Sec. 39.35.070. Duty of employers to furnish records.

Each employer shall furnish the administrator with records concerning the periods of service, dates of birth, compensation, new entrants into service, death, withdrawals, and other employee data necessary for the proper and effective operation of the system.

History. (§ 33 b ch 143 SLA 1960; am § 7 ch 1 SLA 1974)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Secs. 39.35.080, 39.35.090. Duties of the Alaska State Pension Investment Board; Attorney general. [Repealed, § 132 ch 9 FSSLA 2005.]

Sec. 39.35.095. Applicability of AS 39.35.095 — 39.35.680.

The following provisions of this chapter apply only to members first hired before July 1, 2006: AS 39.35.095 — 39.35.680 .

History. (§ 83 ch 9 FSSLA 2005)

Sec. 39.35.100. Accounting.

1. The commissioner shall establish and maintain an adequate system of accounts and records for the plan. The accounts and records shall be integrated with the accounts, records, and procedures of the employers to the end that they operate most effectively and at minimum expense, and that duplication of records and accounts is avoided.
2. An individual account shall be maintained for each employee to record the amount of the employee’s mandatory contributions collected under AS 39.35.160(a) . As of the last day of each calendar year and of each fiscal year, this account shall be credited with interest by applying the prescribed rate of interest, as determined by the board, to the balance in the account as of that date. When the employee is appointed to retirement, the amount held in the individual account shall be used first to fully finance the benefits paid. Once this account has been exhausted, the plan shall fully finance the benefits paid that were not financed by the employee’s individual account.
3. An individual account shall be maintained for each employee to record the amount of the employee’s voluntary contributions to an employee savings account under AS 39.35.180 . As of the last day of each calendar year and of each fiscal year, this account shall be credited with interest by applying the prescribed rate of interest, as determined by the board, to the balance in the account as of that date. Amounts that, before termination of employment, are withdrawn by an employee from the employee’s savings account shall be charged to that account. When an employee is appointed to retirement, the amount held in the employee’s savings account shall be paid in accordance with AS 39.35.395 .

History. (§ 36 ch 143 SLA 1960; am §§ 1, 2 ch 35 SLA 1969; am §§ 2, 3 ch 109 SLA 1970; am §§ 8 — 10 ch 1 SLA 1974; am § 18 ch 128 SLA 1977; am §§ 42, 43 ch 137 SLA 1982; am § 84 ch 9 FSSLA 2005; am § 8 ch 13 SLA 2008; am §§ 10, 11 ch 35 SLA 2008)

Editor’s notes. —

Under §§ 10 and 11, ch. 35, SLA 2008, from May 23, 2008 until July 1, 2008, former (b) (3) and (4) of this section contained an exception for AS 39.35.255(f) (which was enacted as AS 39.35.270(d)).

Sec. 39.35.110. Investments. [Repealed, § 33 ch 141 SLA 1988.]

Sec. 39.35.115. Defined benefit retirement plan.

1. A defined benefit retirement plan for employees of the state, political subdivisions, and public organizations is created. The plan becomes effective January 1, 1961, at which time contributions by the employers and members begin.
2. The retirement plan established by AS 39.35.095 — 39.35.680 is intended to qualify under 26 U.S.C. 401(a) and 414(d) (Internal Revenue Code) as a qualified retirement plan established and maintained by the state for its employees and for the employees of political subdivisions, public corporations, and public organizations of the state, and for the employees of other employers whose participation is authorized by AS 39.35.095 — 39.35.680 and who participate in this plan.
3. An amendment to AS 39.35.095 — 39.35.680 does not provide a person with a vested right to a benefit if the Internal Revenue Service determines that the amendment will result in disqualification of the plan under the Internal Revenue Code.
4. The retirement plan established by AS 39.35.095 — 39.35.680 is a joint contributory plan.
5. If, upon termination of the plan, all liabilities are satisfied, any excess assets shall be deposited in the general fund, subject to the approval of the termination by the Internal Revenue Service.

History. (§ 85 ch 9 FSSLA 2005; am § 58 ch 20 SLA 2007; am § 3 ch 52 SLA 2014)

Effect of amendments. —

The 2014 amendment, effective June 24, 2014, in (e), substituted “be deposited in the general fund” for “revert to the employers as determined by the administrator”.

Legislative history reports. —

For governor’s transmittal letter for ch. 20, SLA 2007 (SB 123), proposing needed corrections and clarifications of statutes enacted as part of the 2005 legislation establishing defined contributions retirement plans and making related amendments to defined benefit retirement plans, see 2007 Senate Journal 567 — 570.

Sec. 39.35.120. Commencement of participation.

1. An employee of the state shall be included in this plan upon commencement of employment with the state, or on January 1, 1961, whichever is later. Unless an employee participates in a university retirement program under AS 14.40.661 — 14.40.799 , an employee of a political subdivision or public organization that becomes an employer shall be included in the plan on the effective date of the employer’s participation or the date of the employee’s commencement of employment with the employer, whichever is later.
2. Inclusion in the plan is a condition of employment for an employee except as otherwise provided for
   1. an elected official;
   2. [Repealed by § 12 ch 57 SLA 2001, as amended by § 10 ch 50 SLA 2005, effective July 1, 2009.]
   3. an employee of the university who participates in a university retirement program under AS 14.40.661 — 14.40.799 .

History. (§ 4 ch 143 SLA 1960; am § 1 ch 155 SLA 1966; am § 28 ch 13 SLA 1980; am § 27 ch 146 SLA 1980; am § 5 ch 104 SLA 1989; am §§ 7, 12 ch 57 SLA 2001; am § 7 ch 97 SLA 2001; am § 21 ch 92 SLA 2004; am § 86 ch 9 FSSLA 2005)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Cross references. —

For the intent of the legislature concerning the amendments to this section made by ch. 97, SLA 2001, see § 1, ch. 97, SLA 2001 in the 2001 Temporary and Special Acts.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

Section 13, ch. 97, SLA 2001 provides that the amendments to this section made by ch. 97, SLA 2001 do “not modify the terms of a contract between the state and a nonprofit regional corporation in existence on the effective date of this Act.” The effective date of § 7, ch. 97, SLA 2001, which amended this section, was March 1, 2002.

Opinions of attorney general. —

Given subsection (b) of this section and AS 39.35.170 , which make inclusion in the public employees retirement system (AS 39.35) a condition of employment for state employees and contributions to it mandatory, the conclusion is that the legislature intended the statutory provisions of the public employees retirement system to apply to all state employees, and benefits under the public employees retirement system may not be negotiated under the Public Employment Relations Act (AS 23.40.070 — 23.40.260 ). January 23, 1978 Op. Att’y Gen.

Sec. 39.35.125. Participation of elected officials.

1. An elected official of the state or of a political subdivision of the state if the political subdivision has elected under AS 39.35.600 — 39.35.650 to designate elected officials in the classifications of employees entitled to participate in the plan is included in the plan unless the official files a written waiver of coverage with the administrator. A waiver under this subsection waives coverage of future employment as an elected official, regardless of any change of employer. An elected official may file a waiver under this subsection at any time after election to office, including the period before taking the oath of office. An elected official may revoke a waiver under this subsection by filing a written revocation with the administrator. A revocation under this subsection operates prospectively only, and the elected official may not receive credited service for service as an elected official while the waiver was in effect. There is no limit on the number of times an elected official may file a waiver or revocation under this subsection.
2. Service as an elected official before January 1, 1981, with an employer may be included retroactively as credited service with the plan if the elected official or former elected official makes retroactive contributions equal to what the official would have made if the elected official or former elected official had been included in the plan when the oath of office as an elected official was taken, plus accrued interest from July 1, 1984. The rate used to calculate the retroactive contributions may not be less than the rate in effect on January 1, 1961. An elected official or former elected official may not receive credited service under this subsection for any period in which the elected official or former elected official was receiving a retirement benefit from the plan. An elected official or former elected official receiving a retirement benefit from the plan on January 1, 1981, is not eligible to claim credited service under this subsection unless the elected official or former elected official is reemployed as an active member. Service as an elected official with an employer constitutes employment as an active member as long as a waiver of coverage under (a) of this section is not in effect.
3. An elected official included in the plan and that person’s employer are liable for contributions whenever that person is an elected official unless a waiver of coverage under (a) of this section is in effect.

History. (§ 2 ch 155 SLA 1966; am § 3 ch 159 SLA 1972; am § 1 ch 254 SLA 1976; am § 19 ch 128 SLA 1977; am §§ 8, 9 ch 82 SLA 1979; am § 28 ch 146 SLA 1980; am § 44 ch 137 SLA 1982; am § 1 ch 170 SLA 1984; am § 87 ch 21 SLA 2000; am § 34 ch 68 SLA 2000; am § 9 ch 13 SLA 2008)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Editor’s notes. —

Section 46, ch. 146, SLA 1980 provides: “AS 39.35.125 (a), as reenacted in § 28 of this Act, applies to an elected official holding office on or after January 1, 1981, even though he may have assumed office before that date.”

Legislative history reports. —

For purpose of the amendment made by sec. 87, ch. 21, SLA 2000 (CSHB 435(JUD)), see 2000 House Journal Supp. No. 10 (July 19, 2000).

Sec. 39.35.127. Participation of village public safety officers. [Repealed, § 30 ch 92 SLA 2004.]

Sec. 39.35.130. Termination of participation. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.131. Membership in teachers’ and public employees’ retirement systems.

1. A person who is employed at least half-time in the plan during the same period that the person is employed at least half-time in a position in the teachers’ retirement plan under AS 14.25.009 — 14.25.220 shall receive credited service under each plan for half-time employment. However, the amount of credited service a person receives under the plan during a school year may not exceed the amount necessary, when added to the amount of credited service earned during the school year under the teachers’ retirement plan, to equal one year of credited service.
2. A person who was employed at least half-time in a position in the teachers’ retirement plan under AS 14.25.009 — 14.25.220 in the same period that the person was employed at least half-time in a position in this plan may claim credited service in both plans for employment before May 31, 1989. To obtain this credited service, the person shall claim the service and verify the period of half-time employment. When eligibility for half-time service credit has been established, an indebtedness shall be determined to the retirement plan in which the person did not participate. The amount of the indebtedness is the full actuarial cost of providing benefits for the credited service claimed. Interest as prescribed by regulation accrues on that indebtedness beginning on the later of July 1, 1989, or the date on which the member is first eligible to claim the service. Any outstanding indebtedness existing at the time the person retires will require an actuarial adjustment to the benefits payable based on that service.

History. (§ 2 ch 58 SLA 1989; am § 87 ch 9 FSSLA 2005)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Sec. 39.35.140. Re-employment of former employees. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.150. Re-employment of retired employees.

1. If a retired employee subsequently becomes an active member, benefit payments may not be made during the period of re-employment.  During the period of re-employment, deductions from the employee’s salary shall be made in accordance with AS 39.35.160 .  Upon subsequent retirement, the retired employee is entitled to receive an additional pension based on the credited service and the average monthly compensation earned during the period of re-employment in accordance with AS 39.35.370 .
2. [Repealed by § 12 ch 57 SLA 2001, as amended by § 6 ch 15 SLA 2003 and § 10 ch 50 SLA 2005, effective July 1, 2009.]
3. [Repealed, § 12 ch 57 SLA 2001, as amended by § 6 ch 15 SLA 2003 and § 10 ch 50 SLA 2005, effective July 1, 2009.]
4. If the initial benefit payments to which the retired member is eligible have been reduced because the member retired early under AS 39.35.370(b) or increased because the member elected to receive a level income option benefit under former AS 39.35.460 , the member shall also receive an incremental benefit based on the amount of the reduction imposed by AS 39.35.370(b) or the increase under former AS 39.35.460 on the first benefit and the length of time that the employee was reemployed and not receiving retirement benefits. The amount of the incremental benefit is equal to the difference between the normal retirement benefit to which the member would have been entitled had the member taken a normal retirement and the early retirement benefit or benefit under the level income option that the member has been receiving based on the member’s initial period of employment multiplied by the total number of months that the member did not receive retirement benefits because of reemployment and that amount actuarially adjusted to be paid over the expected lifetime of the member. In the case of a member who selected benefits under the level income option, the total number of months may not include any month in which the member was 65 years of age or older.
5. A member who retired under AS 39.35.370(a) and participated in a retirement incentive program under ch. 26, SLA 1986; ch. 89, SLA 1989; ch. 65, SLA 1996; ch. 4, FSSLA 1996; or ch. 92, SLA 1997, who is subsequently reemployed as a commissioner may become an active member without losing the incentive credit provided under the applicable retirement incentive plan and is not subject to any related reemployment indebtedness.
6. [Repealed, § 12 ch 50 SLA 2005.]
7. [Repealed, § 12 ch 50 SLA 2005.]
8. [Repealed, § 12 ch 50 SLA 2005.]

History. (§ 7 ch 143 SLA 1960; am § 4 ch 109 SLA 1970; am § 4 ch 159 SLA 1972; am § 11 ch 1 SLA 1974; am § 20 ch 128 SLA 1977; am § 35 ch 68 SLA 2000; am §§ 8, 9, 12 ch 57 SLA 2001; am §§ 4 — 6 ch 15 SLA 2003; am §§ 7, 8, 12 ch 50 SLA 2005)

Cross references. —

For legislative findings relating to the 2005 amendment of subsection (b) and enactment of subsections (f) — (h), see sec. 1, ch. 50, SLA 2005 in the 2005 Temporary and Special Acts. For provision applicable to a retired teacher who was rehired and made an election under (b) or (e) of this section before November 3, 2004, see § 15(a) and (c), ch. 50, SLA 2005. For provision applicable to a retired teacher who was rehired and made an election under (b) or (e) of this section on or after November 3, 2004, see § 15(b) and (c), ch. 50, SLA 2005.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Legislative history reports. —

For governor’s transmittal letter for ch. 15, SLA 2003 (HB 140), see 2003 House Journal 340 — 341.

Opinions of attorney general. —

A retired state employee was considered “re-employed” by the state on a “regular full-time basis” if he were elected to the state legislature. 1965 Op. Att’y Gen., No. 4, issued prior to the 1977 amendment. But see AS 39.35.125 .

A former territorial employee, retired under the Public Employees Retirement Act of 1949, was entitled to receive both his salary as a legislator and his retirement benefits while he served in the state legislature. 1965 Op. Att’y Gen., No. 4, issued prior to the 1977 amendment.

Any Public Employee Retirement System (PERS) member who became a member after July 1, 1977, who retires, returns to work, and re-retires, will receive two pensions, as calculated under this section. Any PERS member who became a member prior to July 1, 1977, will receive pension benefits as calculated under the pre-1977 version of this section. Sept. 12, 1999, Op Att’y Gen.

Sec. 39.35.153. Army and air national guard employees.

A regular full-time civilian employee of the Alaska Army National Guard and Air National Guard, whose entire salary is paid from allotted federal funds, is included in this system, if the federal or state government pays the employer’s contributions. If the amount that the federal government may legally contribute to the system is lower than the required employer’s contribution, the state government shall contribute the difference. If the employer’s contributions are not paid when due, service credit for the period of delinquency may not be granted until the contributions are paid.

History. (§ 1 ch 53 SLA 1965)

Sec. 39.35.154. North Pacific Fishery Management Council employees.

An employee of the North Pacific Fishery Management Council appointed under 16 U.S.C. 1852(f)(1) (§ 302(f)(1) of P.L. 94-265), whose compensation is paid from allotted federal funds, is included in the system if the council pays the employer’s contributions. If the employer’s contributions are not paid when due, credited service for the period of delinquency may not be granted until the contributions are paid.

History. (§ 1 ch 86 SLA 1977)

Legislative history reports. —

For report on ch. 86, SLA 1977 (CSSB 135), see 1977 House Journal, p. 1206; 1977 Senate Journal, p. 535.

Secs. 39.35.155 and 39.35.157. Former magistrates; Tokyo office employees. [Repealed, § 60 ch 21 SLA 1985.]

Sec. 39.35.158. Administrative director of courts.

An administrative director of the Alaska court system who withdraws from the judicial retirement system under AS 22.25.012 is eligible for membership in the plan and shall receive credited service in the plan for service rendered as administrative director. To be eligible for membership in the plan under this subsection, the administrative director must contribute to the plan

1. the amount the director would have contributed if the director had been a member during the director’s period of membership in the judicial retirement system; and
2. any contributions for services as administrative director refunded by the plan at the time the director became a member of the judicial retirement system.

History. (§ 30 ch 146 SLA 1980; am § 88 ch 9 FSSLA 2005)

Sec. 39.35.160. Amount of employee contributions.

1. Beginning January 1, 1987, each peace officer or firefighter shall contribute to the plan an amount equal to seven and one-half percent of the peace officer’s or firefighter’s compensation. Except as provided in (d) of this section, beginning January 1, 1987, each other employee shall contribute to the plan an amount equal to six and three-quarters percent of the employee’s compensation. The contributions shall be deducted by the employer at the end of each payroll period. The contributions shall be deducted from employee compensation before computation of applicable federal taxes, and the contributions shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the option of making the payroll deduction directly instead of having the contribution picked up by the employer.
2. [Repealed, § 6 ch 135 SLA 1980 and § 39 ch 146 SLA 1980.]
3. An employee who has made an election under AS 39.35.300(c) or 39.35.310(c) to have the employee’s years of service as a noncertificated employee of a state boarding school, of a school district or regional educational attendance area, of the special education service agency, or of the Alaska Vocational Technical Center determined by reference to AS 14.25.220 shall pay a contribution surcharge for that service. The amount of the surcharge is the difference between the amount the employer would have had to contribute under AS 39.35.255 — 39.35.290 for the employee when treating the employee’s credited service as service earned under AS 39.35.300(c) or 39.35.310(c) less the amount the employer would have had to contribute under AS 39.35.255 — 39.35.290 without treating the employee’s credited service as service earned under AS 39.35.300(c) or 39.35.310(c).
4. The employer of a member who is employed by a school district, a regional educational attendance area, or a state boarding school who is assaulted while on the job and who, as a result of a physical injury from the assault, is placed on unpaid leave of absence or is receiving benefits under AS 23.30, shall pay the member’s contributions under this section while the member is, as a result of the on-the-job injury, on unpaid leave or receiving the benefits under AS 23.30.

History. (§ 8 a ch 143 SLA 1960; am § 2 ch 235 SLA 1968; am § 3 ch 35 SLA 1969; am § 5 ch 109 SLA 1970; am § 5 ch 159 SLA 1972; am § 2 ch 58 SLA 1979; § 6 ch 135 SLA 1980; am § 39 ch 146 SLA 1980; am § 15 ch 82 SLA 1986; am § 1 ch 22 SLA 1999; am §§ 4, 5 ch 52 SLA 2000; am § 36 ch 68 SLA 2000; am § 30 ch 59 SLA 2002; am § 10 ch 13 SLA 2008)

Revisor’s notes. —

In 1989, the term “fire fighter” was substituted for “fireman” in this section under § 60, ch. 50, SLA 1989.

Subsection (d) was enacted as (c). Relettered in 2000, at which time a conforming amendment was made in subsection (a).

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Cross references. —

For a provision relating to ch. 52, SLA 2000, which amended subsection (a) and enacted subsection (d), see sec. 7, ch. 52, SLA 2000 in the 2000 Temporary and Special Acts.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

Section 2, ch. 123, SLA 1976, and § 1, ch. 58, SLA 1979, contained amendments to subsection (a) of this section. Both Acts provided that the amendments take effect only if approved by a majority of the votes cast in special elections conducted by the Department of Administration among the active members of the Public Employees’ Retirement System. The amendments were rejected.

Sec. 39.35.165. Purchase of credited service.

1. An employee who is eligible to purchase credited service under AS 39.35.310 , 39.35.330 , 39.35.340 , 39.35.342 , 39.35.345 , 39.35.360 , or 39.35.370 , a member who is eligible to purchase credited service under AS 39.35.375 , or an elected public official who is eligible to purchase credited service under AS 39.35.381 is an employee for purposes of this section. An employee may, in lieu of making payments directly to the plan, elect to have the employee’s employer make payments as provided in this section.
2. An employee may elect to have the employer make payments for all or any portion of the amounts payable for the employee’s purchase of credited service through a salary reduction program as follows:
   1. the amounts paid under a salary reduction program are in lieu of contributions by the employee making the election; the electing employee’s salary or other compensation shall be reduced by the amount paid by the employer under this subsection;
   2. the employee shall make an irrevocable election under this section to purchase credited service as permitted in AS 39.35.310 , 39.35.330 , 39.35.340 , 39.35.342 , 39.35.345 , 39.35.360 , 39.35.370 , 39.35.375 , or 39.35.381 and before the employee’s termination of employment; the irrevocable election must specify the number of payroll periods that deductions will be made from the employee’s compensation and the dollar amount of deductions for each payroll period during the specified number of payroll periods; the deductions made under this paragraph cease upon the earlier of the member’s termination of employment with the employer or the member’s death; amounts paid by an employer under (f) of this section may not be applied toward the payment of the dollar amount of the deductions representing the portion of the credited service that is being purchased by the member through payroll deduction in accordance with the member’s irrevocable election under this subsection;
   3. amounts paid by an employer under this subsection shall be treated as employer contributions for the purpose of determining tax treatment under the Internal Revenue Code; the amounts paid by the employer under this section may not be included in the member’s gross income for income tax purposes until those amounts are distributed by refund or retirement benefit payments.
3. Unless otherwise provided, employee contributions paid by the employer under this section are treated for all other purposes under the plan in the same manner and to the same extent as employee contributions that are not paid by an employer under this section and AS 39.35.160 . The plan may assess interest or administrative charges attributable to any salary reduction election made under this section. The interest or administrative charges shall be added to the contribution that is made to the plan by the employee each payroll period, and that is paid by the employer. The interest or administrative charges may not be treated as employee contributions for any purposes under AS 39.35.095 — 39.35.680 , and an employee or an employee’s beneficiary does not have a right to the return of the interest or administrative charges. Interest assessed under this section shall be at the rate specified by regulations adopted by the board.
4. For plan fiscal years beginning on or after July 1, 2001, the requirements of AS 39.35.370(i) may not be applied to reduce the amount of credited service that may be purchased under this section by an employee who first becomes an employee of the plan before July 1, 2001, to an amount that is less than the amount of credited service allowed to be purchased with the application of any of the limits prescribed in 26 U.S.C. 415.
5. Contributions to the plan to purchase credited service do not qualify for treatment under this section if recognition of that service would cause an employee to receive a retirement benefit for the same service from the plan and from one or more other retirement plans or systems of the state.
6. The board may accept rollover contributions from a member. A rollover contribution as described in this subsection shall also be treated as employer contributions for the purpose of determining tax treatment under the Internal Revenue Code and may be made by any one or a combination of the following methods:
   1. subject to the limitations prescribed in 26 U.S.C. 401(a)(3) and 26 U.S.C. 402(c), accepting eligible rollover distributions directly from one or more eligible retirement plans as defined by 26 U.S.C. 402(c)(8)(B);
   2. subject to the limitations prescribed in 26 U.S.C. 403(b)(13), accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the member, on or after January 1, 2002, from a tax sheltered annuity described in 26 U.S.C. 403(b);
   3. subject to the limitations prescribed in 26 U.S.C. 457(e)(17), accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the member, on or after January 1, 2002, from an eligible deferred compensation plan of a tax-exempt organization or a state or local government described in 26 U.S.C. 457(b);
   4. accepting direct trustee-to-trustee transfer from an account established for the benefit of the member in AS 39.30.150 — 39.30.180 (Alaska Supplemental Annuity Plan).
7. Payments made under this section shall be applied to reduce the employee’s outstanding indebtedness described in AS 39.35.310 , 39.35.330 , 39.35.340 , 39.35.342 , 39.35.345 , 39.35.360 , 39.35.370 , 39.35.375 , or 39.35.381 at the time that the contributions are received by the plan.
8. If an employee retires before all payments are made under this section, the plan shall calculate the employee’s benefits based only on the payments actually made with respect to the credited service purchased.
9. On satisfaction of the eligibility requirements of AS 39.35.310 , 39.35.330 , 39.35.340 , 39.35.341, 39.35.345 , 39.35.360 , 39.35.370 , 39.35.375 , or 39.35.381 , the requirements of this section, and the administrative filing requirements specified by the commissioner, the plan shall adjust the employee’s credited service history and add any additional service credits acquired.
10. After an election is made under this section, the election is binding on and irrevocable for the employee and the employee’s employer during the employee’s remaining period of current employment, and the employee does not have the option of choosing to receive the contributed amounts directly in cash.

History. (§ 31 ch 59 SLA 2002; am §§ 22, 23, 32 ch 92 SLA 2004; am §§ 89 — 93 ch 9 FSSLA 2005; am §§ 59, 60 ch 20 SLA 2007)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, in this section “plan” was substituted for “system” and “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter”.

Editor’s notes. —

Section 91, ch. 9, FSSLA 2005 was to have amended subsection (f) effective June 30, 2010, but § 91, ch. 9, FSSLA 2005 was repealed by § 116(c), ch. 20, SLA 2007, effective June 7, 2007.

Sec. 39.35.170. Employment contributions mandatory.

Contributions of employees shall be made by payroll deductions. Every included employee shall be considered to consent to payroll deductions. It is of no consequence that a payroll deduction may cause the compensation paid in cash to an employee to be reduced below the minimum required by law. Payment of an employee’s compensation, less payroll deductions, is a full and complete discharge and satisfaction of all claims and demands by the employee relating to remuneration of services during the period covered by the payment, except with respect to the benefits provided under the plan.

History. (§ 8 b ch 143 SLA 1960; am § 3 ch 155 SLA 1966)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Opinions of attorney general. —

Given AS 39.35.120(b) and this section, which make inclusion in the public employees retirement system (AS 39.35) a condition of employment for state employees and contributions to it mandatory, the conclusion is that the legislature intended the statutory provisions of the public employees retirement system to apply to all state employees, and benefits under the public employees retirement system may not be negotiated under the Public Employment Relations Act (AS 23.40.070 — 23.40.260 ). January 23, 1978 Op. Att’y Gen.

Sec. 39.35.180. Voluntary contributions by employee.

In addition to the mandatory contributions required of an employee under AS 39.35.170 , an employee may, during each calendar year of participating in the plan, voluntarily contribute to an employee savings account an amount not to exceed five percent of the employee’s compensation for that year.

History. (§ 8 c ch 143 SLA 1960)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.190. Disposition of contributions. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.195. Rollover distributions and rollover contributions.

1. A distributee may elect, at the time and in the manner prescribed by the administrator, to have all or part of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in the direct rollover.
2. Except as provided by AS 39.35.165(f) , the plan does not accept contributions of eligible rollover distributions.
3. In this section,
   1. “direct rollover” means the payment of an eligible rollover distribution by the plan to an eligible retirement plan specified by a distributee who is eligible to elect a direct rollover;
   2. “distributee” means a member or a beneficiary who is the surviving spouse of the member or an alternate payee;
   3. “eligible retirement plan” means
      1. an individual retirement account described in 26 U.S.C. 408(a);
      2. an individual retirement annuity defined in 26 U.S.C. 408(b);
      3. an annuity plan described in 26 U.S.C. 403(a);
      4. a qualified trust described in 26 U.S.C. 401(a);
      5. on and after January 1, 2002, an annuity plan described in 26 U.S.C. 403(b);
      6. on or after January 1, 2002, a governmental plan described in 26 U.S.C. 457(b); or
      7. on or after January 1, 2008, a Roth IRA described in 26 U.S.C. 408A;
   4. “eligible rollover distribution” means a distribution of all or part of a total account to a distributee, except for
      1. a distribution that is one of a series of substantially equal installments payable not less frequently than annually over the life expectancy of the distributee or the joint and last survivor life expectancy of the distributee and the distributee’s designated beneficiary, as defined in 26 U.S.C. 401(a)(9);
      2. a distribution that is one of a series of substantially equal installments payable not less frequently than annually over a specified period of 10 years or more;
      3. a distribution that is required under 26 U.S.C. 401(a)(9);
      4. the portion of any distribution that is not includable in gross income; however, a portion under this subparagraph may be transferred only to an individual retirement account or annuity described in 26 U.S.C. 408(a) or (b), to a qualified plan described in 26 U.S.C. 401(a) or 403(a), or to an annuity contract described in 26 U.S.C. 403(b), that agrees to separately account for amounts transferred, including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not includable in gross income; and
      5. other distributions that are reasonably expected to total less than $200 during a year.

History. (§ 32 ch 59 SLA 2002; am §§ 61 — 64 ch 20 SLA 2007)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Sec. 39.35.200. Refund upon termination of employment for reason other than death.

1. Except as provided in (c) of this section, an inactive employee, not on leave-without-pay status or layoff status, is entitled to receive a refund of the balance of the employee contribution account.
2. An employee who is reemployed with an employer and whose contributions have not been refunded before reemployment is not eligible for a refund.
3. An employee who is terminated and is a vested employee, deferred vested employee, or who is entitled to benefits under AS 39.35.385 , and who is married at the time of application for a refund or whose rights to a refund are subject to a qualified domestic relations order is entitled to receive a refund of the balance of the employee contribution account only if the employee’s present spouse and each person entitled under the order consent to the refund in writing on a form provided by the administrator.  The administrator may waive written consent from the person entitled to benefits under the order if the administrator determines that the person cannot be located or for other reasons established by regulation. The administrator may waive written consent from the spouse if the administrator determines that
   1. the employee was not married to the spouse during any period of the employee’s employment with an employer;
   2. the spouse has no rights under AS 39.35.095 — 39.35.680 because of the terms of a qualified domestic relations order;
   3. the spouse cannot be located;
   4. the employee and spouse have been married for less than two years and the member establishes that they are not cohabiting; or
   5. other reasons established by regulation exist.
4. An employee who receives a refund of contributions in accordance with this section forfeits corresponding credited service under AS 39.35.095 — 39.35.680 .

History. (§ 9 a ch 143 SLA 1960; am § 12 ch 1 SLA 1974; am § 1 ch 81 SLA 1976; am § 22 ch 128 SLA 1977; am § 45 ch 137 SLA 1982; am §§ 32, 33 ch 117 SLA 1986; am § 24 ch 92 SLA 2004; am § 94 ch 9 FSSLA 2005)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Secs. 39.35.210, 39.35.220. Refunds. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.230. Refund upon death of retired employee.

Upon the death of a retired employee, the employee’s beneficiary shall be paid

1. the excess of the balance in the employee contribution account of the deceased employee as of the date of the beginning of the employee’s pension payments over the sum of the pension payments previously received by the employee, but this amount may not be paid if a joint and survivor option under AS 39.35.450 is in effect or if a surviving spouse’s pension under AS 39.35.440 is payable; and
2. the remaining payments purchased by the balance in the employee savings account of the deceased employee as of the date the employee retired.

History. (§ 9 d ch 143 SLA 1960; am § 107 ch 127 SLA 1974)

Sec. 39.35.240. Withdrawal of voluntary contributions.

An active employee may withdraw a savings account only if the employee receives the consent of the administrator. The administrator may permit a withdrawal before termination of employment only in cases of financial need.

History. (§ 9 e ch 143 SLA 1960; am § 23 ch 128 SLA 1977)

Sec. 39.35.250. Calculation of employer’s contribution rate; deposit of contributions. [Repealed, § 24 ch 13 SLA 2008.]

Sec. 39.35.255. Contributions by employers.

1. Each employer, except as provided in (h) of this section, shall contribute to the system every payroll period an amount calculated by applying a rate of 22 percent of the greater of the total of all base salaries
   1. paid by the employer to employees who are active members of the system, including any adjustments to contributions required by AS 39.35.520 ; or
   2. paid by the employer to employees who were active members of the system during the corresponding payroll period for the fiscal year ending
      1. June 30, 2008; or
      2. June 30, 2012, if that total is less than the total under (A) of this paragraph, and the employer is a municipality in which the population decreased by more than 25 percent between 2000 and 2010, according to the decennial census conducted by the United States Bureau of the Census.
2. The administrator shall allocate contributions received for full payment of
   1. the actuarially determined employer normal cost for the plan; and
   2. all contributions required by AS 39.30.370 and AS 39.35.750 for the fiscal year.
3. If, after allocation of contributions under (b) of this section, a portion of the employer contributions remains, the administrator shall apply that remaining portion toward payment of the past service liability of the plan.
4. Notwithstanding (a) of this section, the annual employer contribution rate may not be less than the rate sufficient to allow payment of the employer normal cost and the employer contributions required under AS 39.30.370 and AS 39.35.750 .
5. An employer of a retired member rehired under AS 39.35.150 shall include that member’s base salary when calculating the contribution amount established in (a) of this section.
6. All or a portion of the employer’s share of any accrued actuarial liability to the plan may be prepaid in a lump sum. The commissioner may, by regulation, establish a minimum amount for the lump sum payment of a portion. The commissioner shall charge to the employer appropriate and reasonable costs to the plan attributable to a lump sum payment that are not greater than administrative costs applied to other employer contributions. If a lump sum payment is made, the payment shall be accounted for separately in accordance with regulations adopted by the commissioner. The regulations must provide for crediting to each lump sum payment account all earnings and losses received from investment of that payment. The lump sum payment shall be used solely to offset contributions under this section required of the employer that made the payment or on whose behalf the payment was made, taking into account earnings and losses from its investment. A lump sum payment made by or on behalf of an employer under this subsection, together with all earnings and losses from investment of that payment, may not be considered in calculating that employer’s share of any discretionary payment authorized by the state that benefits multiple employers.
7. If all or a portion of the employer’s share of any accrued actuarial liability to the plan is prepaid in a lump sum under (f) of this section, the administrator shall calculate a revised employer contribution rate for that employer in recognition of that prepayment not more than 30 days following the prepayment.
8. Notwithstanding any other provision of this section, the state as an employer shall contribute to the system every payroll period an amount sufficient to pay the actuarially determined employer normal cost, all contributions required under AS 39.30.370 and AS 39.35.750 , and past service cost for members at the contribution rate adopted by the board under AS 37.10.220 for the fiscal year for that payroll period.
9. In this section, “normal cost” means the cost of providing the benefits expected to be credited, with respect to service, to all active members of the plan during the year beginning after the last valuation date.

History. (§ 11 ch 13 SLA 2008; am § 2 ch 49 SLA 2018; am §§ 1, 2 ch 9 SLA 2021)

Revisor’s notes. —

Subsections (f) and (g) were enacted as AS 39.35.270(d) and (e) in sec. 12, ch. 35, SLA 2008 and renumbered in 2008, at which time an internal reference in subsection (g) was conformed and the subsection enacted as (f) was relettered as (h).

Subsection (h) was enacted as (i). Relettered in 2021, at which time former subsection (h) was relettered to subsection (i).

Effect of amendments. —

The 2018 amendment, effective June 30, 2018, added (a)(1)(B), and made related changes.

The 2021 amendment, effective July 1, 2021, in (a), in the introductory language, inserted “, except as provided in (i) [now (h)] of this section,” following “Each employer”; added (i) [now (h)].

Legislative history reports. —

For governor’s transmittal letter for ch. 9, SLA 2021 (SB 55), which amended (a) and added (h) of this section, see 2021 Senate Journal 69 — 71.

Sec. 39.35.260. Annual calculation. [Repealed, § 24 ch 13 SLA 2008.]

Sec. 39.35.270. Amount of employer’s contributions. [Repealed, § 24 ch 13 SLA 2008.]

Sec. 39.35.280. Additional state contributions.

In addition to the contributions that the state is required to make under AS 39.35.255 as an employer, the state shall contribute to the plan each July 1 or, if funds are not available on July 1, as soon after July 1 as funds become available, an amount for the ensuing fiscal year that, when combined with the total employer contributions that the administrator estimates will be allocated under AS 39.35.255(c) , is sufficient to pay the plan’s past service liability at the contribution rate adopted by the board under AS 37.10.220 for that fiscal year.

History. (§ 10 d ch 143 SLA 1960; am § 12 ch 13 SLA 2008)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Cross references. —

For protection of damage awards from reduction on account of contributions under this section, see AS 09.17.070(f) .

Sec. 39.35.282. Contributions for medical benefits.

Contributions made by an employer under AS 39.35.255 and 39.35.280 shall be separately computed for benefits provided by AS 39.35.535 and shall be deposited in the Alaska retiree health care trust established under AS 39.30.097(a) .

History. (§ 13 ch 13 SLA 2008)

Sec. 39.35.285. Employers of village public safety officers. [Repealed, § 30 ch 92 SLA 2004.]

Sec. 39.35.290. Regulations governing transmittal of employer contributions.

The commissioner shall adopt regulations to ensure the orderly and efficient transmittal of employer contributions.

History. (§ 10 e ch 143 SLA 1960)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “commissioner” was substituted for “board” in this section.

Sec. 39.35.300. Employment with the state.

1. An active employee is entitled to credited service for periods of employment with the state after January 1, 1961, regardless of the office, department, division, or agency of the state in which the person was employed. For purposes of AS 39.35.095 — 39.35.680 , the University of Alaska is not an office, department, division, or agency of the state. Service credit may not be granted under AS 39.35.095 — 39.35.680 for service that is creditable under the teachers’ retirement system, AS 14.25, or for a person’s service as a public officer, as defined in AS 39.52.960 , a legislator, or a legislative director, if the service occurs on or after the date the person commits a criminal offense from which a pension forfeiture under AS 37.10.310 results.
2. A permanent part-time employee of the state receives credited service on a pro rata basis to that which would have been earned as a permanent full-time employee.
3. A noncertificated employee of the Alaska Vocational Technical Center or a state boarding school who first becomes a member of the plan on or after July 1, 1999, may, within 90 days after the employee first joins the plan, make an election under this subsection to have the years of service that the employee earns as a noncertificated employee determined using the table for service on or after July 1, 1969, that is set out in the definition of “year of service” in AS 14.25.220 . A noncertificated employee of the Alaska Vocational Technical Center or a state boarding school who is an active member of the plan on July 1, 1999, may, within 180 days after July 1, 1999, make the election. A member of the plan who is an inactive member on July 1, 1999, and who is later employed as a noncertificated employee of the Alaska Vocational Technical Center or a state boarding school may, within 90 days after beginning the subsequent employment, make the election. An election under this subsection is irrevocable except as provided in (d) of this section and shall be made in writing on a form provided by the administrator. The election applies to the employee’s service earned for the school year in which the election is accepted by the administrator and applies to all subsequent employment as a noncertificated employee of a state boarding school, a school district or regional educational attendance area, the special education service agency, or the Alaska Vocational Technical Center. An employee who makes an election under this subsection shall pay the contribution surcharge as set out in AS 39.35.160(c) .
4. A noncertificated employee who has made an election under (c) of this section and who thereafter changes employment status from working for less than a full year, whether part-time or full time, to working for a full year, whether part-time or full-time, may, between July 1 and September 30, revoke the election and cease payment of the contribution surcharge. A revocation under this subsection is retroactive to July 1 of the school year, as defined in AS 14.25.220 , in which the revocation is made.
5. A noncertificated employee who has not made an election under (c) of this section who changes employment status from working for a full year, whether part-time or full-time, to working for less than a full year, whether part-time or full-time, may, between July 1 and September 30, make the election and begin paying the contribution surcharge. The election is retroactive to July 1 of the school year, as defined in AS 14.25.220 , in which the election is made.

History. (§ 11 ch 143 SLA 1960; am § 4 ch 155 SLA 1966; am § 4 ch 27 SLA 1976; am § 26 ch 128 SLA 1977; am § 29 ch 13 SLA 1980; am § 2 ch 22 SLA 1999; am §§ 37, 38 ch 68 SLA 2000; am § 51 ch 47 SLA 2007)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in (c) of this section and “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter”.

Administrative Code. —

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Sec. 39.35.310. Employment with other employers.

1. An active employee is entitled to credited service for periods of employment with a political subdivision or a public organization beginning with the effective date of the employer’s participation in the plan.  The employee is also entitled to credited service for periods of employment as designated in the employer’s participation agreement.
2. A permanent part-time employee of a political subdivision or a public organization receives credited service on a basis proportionate to that which would have been earned as a permanent full-time employee.
3. A noncertificated employee of a school district, a regional educational attendance area, or the special education service agency who first becomes a member of the plan on or after July 1, 1999, may, within 90 days after the employee first joins the plan, make an election under this subsection to have the years of service that the employee earns as a noncertificated employee determined using the table for service on or after July 1, 1969, that is set out in the definition of “year of service” in AS 14.25.220 . A noncertificated employee of a school district, a regional educational attendance area, or the special education service agency who is an active member of the plan on July 1, 1999, may, within 180 days after July 1, 1999, make the election. A member of the plan who is an inactive member on July 1, 1999, and who later is employed as a noncertificated employee of a school district, a regional educational attendance area, or the special education service agency may, within 90 days after beginning the subsequent employment, make the election. An election under this subsection is irrevocable except as provided in (d) of this section and shall be made in writing on a form provided by the administrator. The election applies to the employee’s service earned for the school year in which the election is accepted by the administrator and applies to all subsequent employment as a noncertificated employee of a state boarding school, a school district or regional educational attendance area, the special education service agency, or the Alaska Vocational Technical Center. An employee who makes an election under this subsection shall pay the contribution surcharge as set out in AS 39.35.160(c) .
4. A noncertificated employee who has made an election under (c) of this section and who thereafter changes employment status from working for less than a full year, whether part-time or full-time, to working for a full year, whether part-time or full-time, may, between July 1 and September 30, revoke the election and cease payment of the contribution surcharge. A revocation under this subsection is retroactive to the beginning of the school year, as defined in AS 14.25.220 , in which the revocation was made.
5. A noncertificated employee who has not made an election under (c) of this section who changes employment status from working for a full year, whether part-time or full-time, to working for less than a full year may, between July 1 and September 30, make the election and begin paying the contribution surcharge. The election is retroactive to July 1 of the school year, as defined in AS 14.25.220 , in which the election was made.

History. (§ 12 ch 143 SLA 1960; am § 27 ch 128 SLA 1977; am § 30 ch 13 SLA 1980; am § 3 ch 22 SLA 1999; am §§ 39, 40 ch 68 SLA 2000)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Sec. 39.35.320. Transfers between employers. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.330. Leave of absence.

1. A leave of absence with pay authorized by an employer is not considered as interrupting employment.  If the employee is a permanent part-time employee, credited service shall be granted on a basis proportionate to that which would have been earned as a permanent full-time employee.
2. A leave or leaves of absence without pay exceeding 10 accumulated working days in any calendar year or layoff status authorized by an employer shall be considered as an interruption of employment and credited service may not be granted.
3. Notwithstanding (b) of this section, an employee who takes more than 10 days leave of absence without pay in a calendar year because the employee is unable to work due to an on-the-job injury or occupational illness for which the employee is receiving benefits under AS 23.30 may elect to receive credited service for the time on leave of absence without pay status. When an employee elects to receive credited service under this subsection, an indebtedness is established. The amount of the indebtedness is equal to the contributions that the employee would have made if the employee had been working, less the sum of contributions that the employee made for those periods of time and an amount equal to contributions that would have been made for the first 10 days of leave without pay. Interest as prescribed by regulation accrues on the indebtedness beginning on the date that the employee returns to work or terminates employment. If there is an outstanding indebtedness at the time the employee is appointed to retirement, benefits shall be actuarially adjusted.
4. An employee of a school district, a regional educational attendance area, or a state boarding school who is assaulted while on the job and who, as a result of a physical injury from the assault, is placed on leave without pay, whether or not the employee receives workers’ compensation benefits under AS 23.30 for the injury, is entitled to accrue credited service while the employee, because of the injury, is on leave-without-pay status or is receiving the benefits under AS 23.30. Entitlement to credited service under this subsection ends when the employee is eligible to receive benefits under AS 39.35.370(a) or 39.35.410(a) .

History. (§ 14 ch 143 SLA 1960; am § 28 ch 128 SLA 1977; am § 1 ch 64 SLA 1987; am § 24 ch 106 SLA 1988; am § 6 ch 52 SLA 2000)

Cross references. —

For a provision relating to ch. 52, SLA 2000, which enacted subsection (d), see sec. 7, ch. 52, SLA 2000 in the 2000 Temporary and Special Acts.

Administrative Code. —

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Sec. 39.35.340. Military service.

1. A vested employee is entitled to credited service for active military service in the armed forces of the United States, either by enlistment or induction, if the employee received a discharge under honorable conditions and is not entitled to receive retirement benefits from the United States government for the same service.  The credited service allowed may not exceed an aggregate period of five years. Benefits are not payable on credited service for military service unless the employee makes retroactive contributions to the plan for the period of time that service credit is claimed. However, if the employee was in the employ of an employer on the date of entry into the armed forces and returned to the employ of an employer within 90 days after the date of discharge from military service, the employee is not required to make retroactive contributions under this plan for the period of credited service.
2. In order to obtain credited service under this section, an employee shall make an election to do so and shall verify the period of military service. When eligibility for credited service for military service has been established, an indebtedness shall be determined as follows:
   1. determine the employee’s actual compensation, or the calculated annual compensation for those employees working less than 12 months, during the calendar year 1976 or the year in which an employee first becomes vested under AS 39.35.095 — 39.35.680 , whichever is later;
   2. multiply the amount determined under (1) of this subsection by the number of years of military service credited under this section;
   3. multiply the product determined under (2) of this subsection by six percent for members who are first eligible to claim this military service before January 1, 1987, or eight and one-half percent for members who are first eligible to claim this military service on or after January 1, 1987.
3. A retired employee on July 1, 1976, is eligible to receive increased benefits based upon military service as described in (a) of this section. To receive credited service for military service, a retired employee shall verify the military service. When verified, a retired employee is entitled to receive an increased benefit that shall be actuarially adjusted to reflect the employee’s indebtedness for that credit.  The indebtedness shall be calculated in the same manner as described in (b) of this section except that it shall be based on the average monthly compensation used in calculating the benefit. The effective date of this increased benefit is the beginning of the month following that in which eligibility has been established.
4. The credited service granted under this section may not be used to satisfy the credited service requirements for normal retirement.
5. A deferred vested employee on July 1, 1976, is eligible to claim credited service under (a) of this section.  In order to obtain credited service under this section, such an employee shall make an election to do so and shall verify the period of military service.  When eligibility for military service has been established, an indebtedness shall be determined as follows: the employee’s actual compensation, or the calculated annual compensation for those employees working less than 12 months, during the calendar year the employee terminated, shall be multiplied by six percent; this product shall then be multiplied by the number of years of military service credit under this section.  Interest as prescribed by regulation accrues on this indebtedness commencing July 1, 1978.  Any outstanding indebtedness that exists at the time a person is appointed to retirement necessitates an actuarial adjustment to the benefits payable based upon that military service.
6. An employee may not be credited with a period of active military service in the armed forces of the United States under this section if credit for that military service was granted under AS 14.25.009 — 14.25.220 .
7. A surviving spouse receiving or entitled to receive benefits under AS 39.35.420(b) , 39.35.430 , or 39.35.440 or benefits under a joint and survivor option filed under AS 39.35.450 is eligible to receive increased benefits based on military service as described in (a) of this section.  To receive credited service for military service, the surviving spouse shall verify the employee’s military service.  When verified, the surviving spouse is entitled to receive an increased benefit which shall be actuarially adjusted to reflect the indebtedness for that credit. The indebtedness shall be calculated in the same manner as described in (b) of this section except that it shall be based on the average monthly compensation used in calculating the benefit.  Benefits payable under this subsection are effective the first day of the month following that in which eligibility has been established.
8. The combined period of military service claimed under this section and under AS 14.25.009 — 14.25.220 may not exceed five years.
9. Notwithstanding (d) of this section, a member who retires as a peace officer or firefighter may elect to use five or fewer years of credited service granted under this section in computing years of credited service under AS 39.35.535(c) . When eligibility for credited service for military service has been established and an election under this subsection has been made, an indebtedness in addition to the indebtedness determined under (b) of this section shall be determined for each year of military service used under this subsection, in an amount based on the increase, if any, in the present value of future benefits for that year as determined by the department.
10. For indebtedness determined under this section, interest as prescribed by regulation accrues beginning on July 1, 1977, or one year following the date a person first becomes vested, whichever is later. An outstanding indebtedness for pension benefits that exists at the time a person is appointed to retirement necessitates an actuarial adjustment to the pension benefits payable based on credited military service.
11. Credited service under (a) of this section includes service as a
    1. foreign service officer, a foreign service reserve officer, or a limited foreign service reserve officer with the United States Department of State in Vietnam, Cambodia, or Laos from August 4, 1964, through November 7, 1975; and
    2. member of the United States Merchant Marine Service from December 7, 1941, through September 30, 1945.

History. (§ 15 ch 143 SLA 1960; am § 1 ch 123 SLA 1976; am § 29 ch 128 SLA 1977; am § 6 ch 174 SLA 1978; am §§ 31 — 36 ch 13 SLA 1980; am § 46 ch 137 SLA 1982; am §§ 16 — 18 ch 82 SLA 1986; am §§ 97, 98 ch 9 FSSLA 2005; am §§ 1, 2 ch 81 SLA 2014)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, in this section “plan” was substituted for “system” and “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter”.

Subsections (i) and (j) were enacted as (j) and (k); relettered in 2014, at which time former (i) was relettered as (k).

Administrative Code. —

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Effect of amendments. —

The 2014 amendment, effective July 11, 2014, in (b)(1), inserted “determine” at the beginning, and deleted “, multiplied by” at the end, in (b)(2), inserted “multiply the amount determined under (1) of this subsection by” at the beginning, and deleted “, and this product multiplied by” at the end, in (b)(3), inserted “multiply the amount determined under (2) of this subsection by” at the beginning, and deleted “Interest as prescribed by regulation accrues on this indebtedness beginning on July 1, 1977, or one year following the date a person first becomes vested, whichever is later. Any outstanding indebtedness that exists at the time a person is appointed to retirement necessitates an actuarial adjustment to the benefits payable based upon that military service.” at the end; added (j) [now (i)] and (k) [now (j)].

Editor’s notes. —

Section 55, ch. 82, SLA 1986, provides that notwithstanding (b) or (e) of this section, interest did not accrue on service claimed under (i) of this section “until July 1, 1987, or one year following the date on which a person first becomes vested, whichever is later.”

Section 56, ch. 82, SLA 1986, provides that “retired employees, deferred vested employees, and surviving spouses on July 1, 1986, are entitled to claim credited service or increased benefits for service claimed under (i) of this section in accordance with (c), (e) and (g) of this section.”

Section 57, ch. 82, SLA 1986 provides: “Sections 16, 22-23, 25-27, 42-45, and 50 of this Act apply only to members first hired under the Public Employees’ Retirement System after June 30, 1986.”

Legislative history reports. —

For letter of intent for FCCS HB 198, which became ch. 123 SLA 1976 and amended this section, see 1976 Senate Journal 1359.

Sec. 39.35.342. Village public safety officer service.

1. A vested employee is entitled to credited service for employment as a village public safety officer under the program established under AS 18.65.670 for which the employee has not otherwise received credited service under this plan. An employee is not entitled to credited service for employment as a village public safety officer unless the employee was employed as a village public safety officer for at least one year. The credited service claimed under this section may not exceed five years. Benefits are not payable on credited service for village public safety officer service under this section unless the employee makes retroactive contributions to the plan for the period of time that service credit is claimed.
2. In order to obtain credited service under this section, an employee shall make an election to do so and shall verify the period of service as a village public safety officer. When eligibility for credited service for village public safety officer service has been established, an indebtedness shall be determined. The amount of the indebtedness is equal to the full actuarial cost of providing benefits based on the service as a village public safety officer. Interest as prescribed by regulation accrues on this indebtedness beginning on the date the actuarial cost is established. Any outstanding indebtedness that exists at the time a person is appointed to retirement necessitates an actuarial adjustment to the benefits payable based upon service as a village public safety officer.
3. The credited service granted under this section may not be used to satisfy the credited service requirements for normal retirement.
4. An employee is not entitled to credited service under this section if the employee is entitled to receive retirement benefits from another employer for the same service under a retirement plan that provides benefits based on defined benefits.

History. (§ 1 ch 92 SLA 1998; am § 10 ch 97 SLA 2001; am § 25 ch 92 SLA 2004)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Cross references. —

For the intent of the legislature related to the 2001 amendments to subsection (a) see § 1, ch. 97, SLA 2001 in the 2001 Temporary and Special Acts.

Administrative Code. —

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Editor’s notes. —

Section 13, ch. 97, SLA 2001 provides that the amendments to subsection (a) by § 10, ch. 97, SLA 2001 do “not modify the terms of a contract between the state and a nonprofit regional corporation in existence on the effective date of this Act.” The effective date of § 10, ch. 97, SLA 2001, which enacted this section, was March 1, 2002.

Sec. 39.35.345. Temporary service credit.

1. A vested employee is entitled to credited service for periods in which the employee regularly rendered full-time personal service to an employer but was not qualified to participate in the plan because of the exclusion of temporary workers as described in AS 39.35.680 (22)(C)(iii).  Benefits are not payable on this credited service unless the employee makes retroactive contributions to the plan for the period of time that credited service is claimed.  The retroactive contribution is the full actuarial cost of providing benefits for the credited service claimed.
2. To obtain credited service under this section, an employee shall elect to do so and shall verify the period of temporary service.  When eligibility for temporary service credit has been established, an indebtedness shall be determined as provided in (a) of this section. Any outstanding indebtedness existing at the time an employee retires requires an actuarial adjustment to the benefits payable based on the temporary service. Interest as prescribed by regulation accrues on the indebtedness beginning
   1. July 1, 1981, or one year following the date the employee first becomes vested, whichever is later, for an employee who claims temporary service credit no more than one year after the employee becomes vested;
   2. the date of vesting, for an employee who becomes vested after June 30, 1980, who is claiming temporary service credit more than one year after vesting for service performed before the employee vested;
   3. July 1, 1980, for an employee who became vested before July 1, 1980, who is claiming temporary service credit after June 30, 1981, for service performed before July 1, 1980;
   4. one year after completing the temporary service, for an employee who was vested on the last day of employment as a temporary employee and who claims the temporary service no more than one year after completing the service;
   5. on the date of completing the temporary service, for an employee who was vested on the last day of employment as a temporary employee and who claims temporary service more than one year after completing the service.
3. A deferred vested employee on July 1, 1980, is eligible to claim credited service under (a) of this section.  To obtain credited service under this section, a deferred vested employee shall elect to do so and shall verify the period of temporary service. When eligibility for temporary service credit has been established, an indebtedness shall be determined as provided in (a) of this section.  Interest as prescribed by regulation accrues on that indebtedness beginning July 1, 1981.  Any outstanding indebtedness existing at the time a deferred vested employee retires requires an actuarial adjustment to the benefits payable based on the temporary service.
4. An employee may choose whether the credited service granted under this section is used to satisfy the credited service requirements for normal retirement under AS 39.35.370(a)(2) or (3) or 39.35.385(f) or is only used for the calculation of benefits. An election under this subsection is irrevocable and applies to all temporary credited service that the employee has accrued when the employee retires. An election under this subsection does not change the date that an employee is considered to have commenced participation in the plan under AS 39.35.120 .
5. Notwithstanding the requirement in (a) of this section that an employee be vested to claim credited service under this section, for purposes of a conditional service retirement benefit under AS 39.35.385(f) , an employee may claim credited service under this section for temporary legislative employment before July 1, 1979, for which the employee has not received credited service under AS 39.35.360(g) .

History. (§ 29 ch 146 SLA 1980; am §§ 25, 26 ch 106 SLA 1988; am §§ 1, 2 ch 109 SLA 2000)

Revisor’s notes. —

Enacted as AS 39.35.156. Renumbered in 1980.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section. In 2005, “AS 39.35.680 (22)(C)(iii)” was substituted for “AS 39.35.680 (21)(C)(iii)” to reflect the 2005 renumbering of AS 39.25.680(21).

Cross references. —

For authority of a member of the public employees’ retirement system who has claimed credited service under this section before August 31, 2000, to make an election under (d) of this section as reenacted by sec. 1, ch. 109, SLA 2000, before the member’s appointment to retirement, see sec. 4, ch. 109, SLA 2000 in the 2000 Temporary & Special Acts.

Administrative Code. —

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Sec. 39.35.350. Reinstatement of credited service. [Repealed, § 133 ch 9 FSSLA 2005.]

Sec. 39.35.360. Earlier service.

1. An employee who completes three years of credited service with the state after January 1, 1961, for which the employee makes contributions required by AS 39.35.095 — 39.35.680 is entitled to credited service for service rendered (1) before January 1, 1961, as an employee of the state and former Territory of Alaska; (2) before January 1, 1961, as an employee of the United States government in Alaska, excluding service in the armed forces of the United States; (3) after January 1, 1961, as a peace officer, correctional officer, or firefighter of a participating political subdivision of the state if the employee is vested and is an active peace officer, correctional officer, or firefighter in the plan on or before January 1, 1983; or (4) after January 1, 1961, as a special officer commissioned by the state troopers if the employee has not otherwise received credit for the service and if the employee was employed on or before January 1, 1983, is vested, and has been an active special officer, peace officer, correctional officer, or firefighter in the plan. The retirement benefits payable to an employee under this section shall be reduced by the amount of the retirement pension benefits paid to the employee by the United States government for the same period of service.
2. An employee who, under (a) of this section, is entitled to credited service for employment before January 1, 1961, is not required to make retroactive contributions under AS 39.35.095 — 39.35.680 .
3. [Repealed, § 41 ch 146 SLA 1980.]
4. [Repealed, § 2 ch 26 SLA 1974.]
5. An employee of a detention facility provided by a local government unit to the territorial or state government under AS 33.30.031 or former AS 33.30.060 , who continues in state employment upon transfer of the facility to the state, is entitled to credited service for prior service with the facility if the employee remains in continuous employment with the state until July 1, 1976. To obtain credited service the employee is required to make retroactive contributions for the period of service between January 1, 1961, and the effective date of the transfer of the facility to the state.
6. A surviving spouse receiving or entitled to receive a surviving spouse’s pension under AS 39.35.440 or benefits under a joint and survivor option filed under AS 39.35.450 is eligible for increased benefits for any service credit authorized under (a) of this section, but not claimed or authorized by law before the employee’s death.
7. An employee is eligible to receive up to 10 years of credited service for service rendered before July 1, 1979, as a temporary employee of the legislature of the state or territory during legislative sessions. To receive retroactive credited service under this subsection, an employee shall claim the service before July 1, 2003, or before retiring, whichever occurs first. When the employee claims the service, an indebtedness of the employee to the plan shall be established. For benefits that do not vary based on the amount of retroactive credited service, the indebtedness shall be established on the date the employee claims the credit, with interest accruing on the indebtedness beginning July 1, 2003. For benefits that vary based on the amount of retroactive credited service, the indebtedness shall be established on the date the employee retires, with interest accruing on the indebtedness beginning on the date of retirement. Any outstanding indebtedness that exists at the time the employee retires requires an actuarial adjustment to the benefits that are based upon retroactive credited service under this subsection.
8. An employee of the state is eligible to receive credited service under AS 39.35.300(b) for service rendered as a permanent part-time employee before January 1, 1976. When the employee claims retroactive credited service, an indebtedness of the employee to the plan shall be established. The amount of this indebtedness is equal to the contributions the employee would have made if the employee had been eligible for membership in the plan. The rate used to calculate the contributions may not be less than the rate in effect on January 1, 1961. Interest as prescribed by regulation accrues on the indebtedness beginning July 1, 1981, for employees claiming the service before that date, and beginning July 1, 1980, for employees claiming the service on or after July 1, 1981. Any outstanding indebtedness that exists at the time the employee retires requires an actuarial adjustment to the benefits that are based on retroactive credited service under this subsection.
9. An employee who completes three years of credited service with an employer, for which the employee makes contributions required by AS 39.35.095 — 39.35.680 , is entitled to credited service on a year-for-year basis for service credited in the Civil Service Retirement System, rendered as an employee of an Alaska Bureau of Indian Affairs (BIA) school, other than service as a teacher. When eligibility for retroactive credited service under this subsection has been established, an indebtedness of the employee to the plan shall be determined as follows: (1) the employee’s actual annual compensation, or the calculated annual compensation for an employee who works fewer than 12 months, for the most recent calendar year in which service is rendered to an employer before the calendar year in which the employee first becomes eligible to claim service under this subsection, multiplied by (2) the number of years of service in Alaska BIA schools that is credited under this subsection, and this product multiplied by (3) six percent for employees first eligible to claim this service before January 1, 1987, or eight and one-half percent for employees first eligible to claim this service on or after January 1, 1987. Interest as prescribed by regulation accrues on the indebtedness beginning on the date the employee may first claim the retroactive credited service. Any outstanding indebtedness that exists at the time the employee retires requires an actuarial adjustment to the benefits that are based on retroactive credited service under this subsection. A retirement benefit payable under this subsection for Alaska BIA service shall be reduced by an amount equal to the retirement benefits paid to the member by the United States government for the same service.
10. An employee who has not completed three years of credited service with an employer may claim credited service as an employee of an Alaska Bureau of Indian Affairs (BIA) school, other than service as a teacher under (i) of this section if, on the date of transfer of the Alaska BIA school to the state, the employee is employed at the school and needs fewer than three additional years of continuous full-time employment for normal retirement in the federal Civil Service Retirement System, and the employee completes a period of service with an employer, for which the employer makes contributions required by AS 39.35.095 — 39.35.680 , equal to the additional period of service that would have been required for that employee’s normal retirement under the federal Civil Service Retirement System. An employee who claims credited service under this subsection shall provide federal government verification of the employee’s federal Civil Service Retirement System status when the claim is filed.
11. A vested member is eligible to receive credited service for employment after January 1, 1961, as a peace officer or firefighter in a municipality that is an employer under this plan but that was not an employer at the time of the employment. A vested member who claims retroactive credited service on or after July 1, 1988, is indebted to the plan. The amount of the indebtedness is the full actuarial cost of providing benefits for the credited service claimed. Interest as established by regulation accrues on the indebtedness under this subsection beginning the first of the month following establishment of the indebtedness. Any outstanding indebtedness that exists at the time the officer or firefighter retires requires an actuarial adjustment to the benefits that are based on retroactive credited service under this subsection.
12. An administrative director of the Alaska Court System who withdraws from the judicial retirement system under AS 22.25.012(b) is eligible for membership in the plan and shall receive credited service in this plan for service rendered as administrative director. To be eligible for membership in this plan under this subsection, the administrative director must contribute to the plan
    1. the amount that would have been contributed if the administrative director had been a member during the period of the membership in the judicial retirement system; and
    2. any contributions for service as administrative director refunded from the plan at the time the administrative director became a member of the judicial retirement system.

History. (§ 17 ch 143 SLA 1960; am § 4 ch 80 SLA 1964; am §§ 5, 6 ch 155 SLA 1966; am § 4 ch 235 SLA 1968; am § 1 ch 55 SLA 1973; am §§ 1, 2 ch 26 SLA 1974; am §§ 1, 2 ch 245 SLA 1976; am §§ 31 — 33 ch 128 SLA 1977; am §§ 1, 7 ch 174 SLA 1978; am § 3 ch 81 SLA 1979; am § 10 ch 82 SLA 1979; am §§ 31, 32, 41 ch 146 SLA 1980; am §§ 48, 49 ch 137 SLA 1982; am § 2 ch 170 SLA 1984; am §§ 19 — 21 ch 82 SLA 1986; am § 10 ch 88 SLA 1986; am §§ 27, 28 ch 106 SLA 1988; am § 1 ch 24 SLA 1992; am §§ 34, 35 ch 59 SLA 2002; am §§ 99, 100 ch 9 FSSLA 2005)

Revisor’s notes. —

In 1989, the term “fire fighter” was substituted for “fireman” in this section under § 60, ch. 50, SLA 1989.

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Sec. 39.35.370. Retirement benefits.

1. Subject to AS 39.35.450 , a terminated employee is eligible for a normal retirement benefit
   1. at age 60 with at least five years credited service;
   2. with at least 20 years of credited service as a peace officer or firefighter; or
   3. with at least 30 years of credited service for all other employees.
2. Subject to AS 39.35.450 , a terminated employee is eligible for an early retirement benefit at age 55 with at least five years credited service. An actuarial adjustment shall be made to retirement benefits paid under this section for an early retirement benefit. The monthly amount of a retirement benefit that would be due under (c) of this section shall be reduced by multiplying one-half of one percent times the number of months, to the nearest month, by which the retirement date of the employee falls short of the date that the employee reaches age 60.
3. The monthly amount of a retirement benefit for a peace officer or firefighter is two percent of the average monthly compensation times the years of credited service through 10 years, plus two and one-half percent of the average monthly compensation times the years of service over 10 years.  For all other employees it is
   1. two percent of the average monthly compensation times all years of service before July 1, 1986, and for years of service through a total of 10 years; plus
   2. two and one-quarter percent of the average monthly compensation times all years of service after June 30, 1986, over 10 years of total service through 20 years; plus
   3. two and one-half percent of the average monthly compensation times all years of service after June 30, 1986, over 20 years of total service.
4. The monthly amount of a retirement benefit for a deferred vested member shall be determined in accordance with (c) of this section as it was in effect on the date of the employee’s termination of employment.
5. Benefits payable under this section accrue from the first day of the month after which all of the following requirements are met: (1) the member meets the eligibility requirements of this section; (2) the member terminates employment; and (3) the member applies for retirement.  The benefits are payable the last day of the month.  If payment is delayed, a retroactive payment shall be made to cover the period of deferment.  The last payment shall be made for the month in which a benefit is payable under this section.
6. A member who is vested in the plan as a peace officer or firefighter at the time the member incurs a permanent disability of at least 33 1/3 percent under workers’ compensation and who (1) undergoes retraining because of the disability; and (2) is subsequently employed with the state or other employer in a position other than peace officer or firefighter, is eligible for a normal retirement benefit as a peace officer or firefighter under (a) and (c) of this section upon completing 20 years of credited service.
7. When an employee who was employed as a dispatcher in a state trooper office or in a police or fire department in the plan applies for appointment to retirement, the employee may convert the credited service for that position to credited service as a peace officer by claiming the service as peace officer service. An employee who has converted credited service to peace officer service under this subsection shall be treated as a peace officer for purposes of AS 39.35.095 — 39.35.680 . When the member claims this credited service as peace officer service, an indebtedness of the member to the plan shall be established. The indebtedness is equal to the full actuarial cost of the conversion of the credited service to treatment as peace officer service. Any outstanding indebtedness that exists at the time the member is appointed to retirement shall require an actuarial adjustment to the benefits payable based upon the conversion of the credited service.
8. When an employee applies for appointment to retirement in the plan, the employee may convert the credited service to which this subsection applies to credited service as a peace officer by claiming the service as peace officer service. This subsection applies to credited service as an employee of a state correctional facility, other than as a correctional officer or correctional superintendent. This subsection also applies to credited service as an employee of the Department of Corrections in a management position in the division that has responsibility for institutions or the division that has responsibility for community corrections if the employee also has at least five years of credited service as a probation officer, correctional officer, assistant correctional superintendent, or correctional superintendent at a state correctional facility. An employee who has converted credited service to peace officer service under this subsection shall be treated as a peace officer for purposes of AS 39.35.095 — 39.35.680 . When the member claims this credited service as peace officer service, an indebtedness of the member to the plan shall be established. The indebtedness is equal to the full actuarial cost of the conversion of the credited service to treatment as peace officer service. Any outstanding indebtedness that exists at the time the member is appointed to retirement will require an actuarial adjustment to the benefits payable based upon the conversion of the credited service. In this subsection,
   1. “correctional facility” has the meaning given in AS 33.30.901 ; and
   2. “management position” includes positions as division director, deputy director, and assistant director.
9. For plan fiscal years beginning after December 31, 1975, and notwithstanding any other provision of AS 39.35.095 — 39.35.680 , the projected annual benefit provided by AS 39.35.095 — 39.35.680 and the benefit from all other defined benefit plans required to be aggregated with the benefits from this plan under the provisions of 26 U.S.C. 415 may not increase to an amount in excess of the amount permitted under 26 U.S.C. 415 at any time. In the event that any projected annual benefit of a member exceeds the limitation of 26 U.S.C. 415(g) for a limitation year, the plan shall take any necessary remedial action to correct an excess accrued annual benefit. The provisions of 26 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified defined benefit plans of governmental employers are incorporated as part of the terms and conditions of the plan. This subsection applies to any member of this plan.
10. Notwithstanding (c) of this section,
    1. for the plan fiscal years beginning on or after January 1, 1996, the annual compensation of a member who joined the plan after the first day of the first plan fiscal year beginning after December 31, 1995, that is used to calculate the member’s average monthly compensation may not exceed $150,000, as adjusted for the cost of living in accordance with 26 U.S.C. 401(a)(17)(B);
    2. for the plan fiscal years beginning on or after January 1, 2002, the annual compensation limitation for such a member, which is so taken into account for such a member which is so taken into account for such purposes, may not exceed $200,000, as adjusted for the cost of living in accordance with 26 U.S.C. 401(a)(17)(B);
    3. the cost-of-living adjustment in effect for a calendar year applies in this subsection to a determination period beginning in the calendar year.
11. [Repealed, § 116(a) ch 20 SLA 2007.]

History. (§ 18 ch 143 SLA 1960; am § 2 ch 102 SLA 1963; am § 7 ch 155 SLA 1966; am § 5 ch 235 SLA 1968; am § 6 ch 109 SLA 1970; am §§ 6, 7 ch 159 SLA 1972; am § 15 ch 47 SLA 1974; am § 34 ch 128 SLA 1977; am § 33 ch 146 SLA 1980; am §§ 22 — 24 ch 82 SLA 1986; am §§ 34, 35 ch 117 SLA 1986; am § 14 ch 4 FSSLA 1996; am § 1 ch 110 SLA 2000; am § 1 ch 121 SLA 2000; am § 36 ch 59 SLA 2002; am § 26 ch 92 SLA 2004; am § 101 ch 9 FSSLA 2005; am § 116(a) ch 20 SLA 2007)

Revisor’s notes. —

In 1989, the term “fire fighter” was substituted for “fireman” in this section under § 60, ch. 50, SLA 1989.

Subsection (h) was enacted as (g); relettered in 2000.

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Cross references. —

For 1980 adjustment to pensions of retirees who were disabled at the time of retirement, see § 49, ch. 146, SLA 1980 in the Temporary and Special Acts and Resolves; for 1986 increase in retirement benefits for certain employees of the Territory of Alaska, see § 54, ch. 82, SLA 1986 in the Temporary and Special Acts and Resolves.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Section 57, ch. 82, SLA 1986 provides: “Sections 16, 22-23, 25-27, 42-45, and 50 of this Act apply only to members first hired under the Public Employees’ Retirement System after June 30, 1986.”

Section 44, ch. 4, FSSLA 1996 provides that nothing in that Act, which amended subsection (b), “modifies or terminates the terms of a collective bargaining agreement in effect on July 1, 1996.” Under § 45, ch. 4, FSSLA 1996, the provisions of that Act, which amended subsection (b), are not severable, notwithstanding AS 01.10.030 .

Sec. 39.35.371. Distribution requirements.

1. The entire interest of a member must be distributed or must begin to be distributed not later than the member’s required beginning date.
2. If a member dies after the distribution of the member’s interest has begun but before the distribution has been completed, the remaining portion of the interest shall continue to be distributed at least as rapidly as under the method of distribution being used before the member’s death.
3. If a member has made a distribution election and dies before the distribution of the member’s interest begins, distribution of the member’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death. However, if any portion of the member’s interest is payable to a designated beneficiary, distributions may be made over the life of the designated beneficiary or over a period not greater than the life expectancy of the designated beneficiary, commencing on or before December 31 of the calendar year immediately following the calendar year in which the member died, and if the designated beneficiary is the member’s surviving spouse, the date distributions are required to begin may not be earlier than the later of December 31 of the calendar year (1) immediately following the calendar year in which the member died, or (2) in which the member would have attained 70 1/2 years of age, whichever is earlier. If the surviving spouse dies after the member but before payments to the spouse have begun, the provisions of this subsection apply as if the surviving spouse were the member. An amount paid to a child of the member will be treated as if it were paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.
4. If a member has not made a distribution election before the member’s death, the member’s designated beneficiary must elect the method of distribution not later than December 31 of the calendar year (1) in which distributions would be required to begin under this section, or (2) that contains the fifth anniversary of the date of death of the member, whichever is earlier. If the member does not have a designated beneficiary or if the designated beneficiary does not elect a method of distribution, distribution of the member’s entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death.
5. For purposes of (c) of this section, distribution of a member’s interest is considered to begin (1) on the member’s required beginning date, or (2) if the designated beneficiary is the member’s surviving spouse and the surviving spouse dies after the member but before payments to the spouse have begun, on the date distribution is required to begin to the surviving spouse. If distribution in the form of an annuity irrevocably commences to the member before the required beginning date, the date distribution is considered to begin is the date that the distribution actually commences.
6. Notwithstanding any contrary provisions of AS 39.35.095 — 39.35.680 , the requirements of this section apply to all distributions of a member’s interest and take precedence over any inconsistent provisions of AS 39.35.095 — 39.35.680 .
7. All distributions required under this section are determined and made in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, including any minimum distribution incidental benefit requirement.
8. Unless otherwise specified, the provisions of this section apply to calendar years beginning on or after January 1, 1983.
9. In this section,
   1. “designated beneficiary” means the individual who is designated as the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute;
   2. “required beginning date” means the first day of April of the calendar year following the calendar year in which the member either attains 70 1/2 years of age or actually retires, whichever is later.

History. (§ 37 ch 59 SLA 2002; am § 27 ch 92 SLA 2004)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Sec. 39.35.375. Public service benefit.

1. An active or inactive member who has never been vested in this plan or in the teachers’ retirement plan under AS 14.25.009 — 14.25.220 , who has at least two years of credited service in this plan, and who has membership service in the teachers’ retirement system may claim credited service in this plan in an amount equal to the membership service the member has in the teachers’ retirement system. The claimed credited service may be added to service earned under AS 39.35.095 — 39.35.680 to enable the member to qualify for a public service benefit under this section. The member may not claim credited service for membership service for which the member has received a refund under AS 14.25.150 . The member may not claim credited service in this plan based on unused sick leave under AS 14.25.115 .
2. To claim credited service under this section, the member shall file a written request with the administrator when the member applies to retire. The administrator shall determine the full actuarial cost of benefits based on the member’s total credited service and shall transfer from the teachers’ retirement system to this plan an amount equal to the sum of the member contributions and any indebtedness payments to the teachers’ retirement system and the employer contributions to the teachers’ retirement system made on behalf of the employee together with interest earned on those contributions and indebtedness payments. If the amount to be transferred, when combined with the amount of employee contributions and indebtedness payments to this plan and the amount of employer contributions on behalf of the employee in this plan, and interest earned on contributions and indebtedness payments for the employee, is less than the full actuarial cost computed under this subsection, an indebtedness to the plan equal to the amount of the difference is established. Interest as prescribed by regulation accrues on the indebtedness. The member must pay any outstanding indebtedness existing at the time the member applies for retirement in full before the member is appointed to retirement under this section.
3. A member is entitled to receive a public service benefit under this section if the member has at least a total of five years credited service under AS 39.35.095 — 39.35.680 and credited service from the teachers’ retirement plan under AS 14.25.009 — 14.25.220 claimed under this section. A public service benefit shall be calculated using the higher of the average monthly compensation for service in this plan or the average base salary for service in the teachers’ retirement plan under AS 14.25.009 — 14.25.220 . The amount of the benefit shall be calculated in accordance with AS 39.35.370(c) .
4. Credited service earned under either this plan or the teachers’ retirement system that has been claimed for a public service benefit under this section may not be used for any other purpose. A member who claims credited service under this section loses all rights to benefits under AS 14.25 based on the claimed credited service. A member may not claim credited service under this section unless the member claims all of the membership service the member has in the teachers’ retirement system. A public service benefit does not constitute a normal or early retirement benefit for purposes of qualifying for a conditional service retirement benefit under AS 14.25.125 or AS 39.35.385 .
5. A member whose rights to benefits under AS 14.25 are subject to a qualified domestic relations order may claim credited service under this section. However, the credited service claimed remains subject to the terms of the order.
6. [Repealed, § 116(b) ch 20 SLA 2007.]
7. If a member retires under this section and subsequently returns to work for an employer under this plan or the teachers’ retirement system, benefits under this section shall cease during the period of reemployment and shall recommence when the reemployment is ended. The credited service earned during the period of reemployment may not be added to the credited service claimed for a public service benefit under this section. If a member vests and meets the other eligibility requirements under this system or the teachers’ retirement system during the reemployment, the member is entitled to a benefit under AS 14.25.009 — 14.25.220 or AS 39.35.095 — 39.35.680 , as appropriate.
8. In this section,
   1. “membership service earned under AS 14.25” means membership service earned under AS 14.25.009 — 14.25.220 ;
   2. “teachers’ retirement system” and “teachers’ retirement system under AS 14.25” mean the teachers’ retirement plan established in AS 14.25.009 — 14.25.220 .

History. (§ 3 ch 109 SLA 2000; am §§ 102 — 109 ch 9 FSSLA 2005; am §§ 68, 116(b) ch 20 SLA 2007)

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Sec. 39.35.380. Early retirement benefits. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.381. Alternate benefit for elected public officers.

1. An elected public officer is eligible for a public officer benefit if the officer is retired under AS 14.25.009 — 14.25.220 . Only fully paid credited service as an elected public officer of a municipality or other political subdivision, earned while the municipality or political subdivision was an employer under this plan and while the person was employed full-time under AS 14.25.009 — 14.25.220 , may be counted under this section.
2. Credited service for which contributions were refunded is not creditable under this section unless the refunded contributions have been repaid. For purposes of (a) of this section, a member or former member does not have to be reemployed under this plan in order to pay refunded contributions. Compound interest at the rate prescribed by regulation shall be added to the reinstatement indebtedness from the date of the refund to the date of repayment.
3. The amount of the monthly elected public officer benefit is two percent of the average monthly compensation for service eligible under this section times those years of service.
4. When an elected public officer eligible to receive credited service under this section dies, the officer’s designated beneficiary is entitled to the balance in the officer’s employee contribution account.
5. A person who retires under this section is not entitled to disability or death benefits under AS 39.35.400 — 39.35.440 , a minimum benefit under AS 39.35.485 , or to medical benefits under AS 39.35.535 . Service earned under this section may not be used for vesting under AS 39.35.095 — 39.35.680 .
6. Benefits payable under this section accrue from the first day of the month after which all of the following requirements are met: (1) the elected public officer meets the eligibility requirements of this section; (2) the officer terminates employment under AS 39.35.095 — 39.35.680 ; and (3) the officer applies for retirement. The benefits are payable the last day of the month. If payment is delayed, a retroactive payment shall be made to cover the period of the delay.
7. An elected public officer may claim credit under this section for service performed as an elected public officer before May 31, 1989. To claim the service, the elected public officer must have been an elected public officer of a municipality or political subdivision that was an employer under this plan during the elected service and must have been employed full-time under AS 14.25 during that time. When the elected public officer claims that service, an indebtedness to the plan is established. The amount of the indebtedness is the full actuarial cost of providing benefits for the service claimed. Interest as prescribed by regulation accrues on that indebtedness beginning on July 1, 1989. Any outstanding indebtedness existing at the time the person retires requires an actuarial adjustment to the benefits payable based on that service.

History. (§ 3 ch 58 SLA 1989; am § 110 ch 9 FSSLA 2005)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Sec. 39.35.385. Conditional service retirement benefits.

1. Subject to AS 39.35.450 , an employee is eligible for a normal retirement benefit at age 60 with at least two years of credited service if the employee also is eligible for a normal retirement salary under AS 14.25 (teachers’ retirement system).
2. Subject to AS 39.35.450 , an employee is eligible for an early retirement benefit at age 55 with at least two years of credited service if the employee also is eligible for an early retirement salary under AS 14.25 (teachers’ retirement system).
3. Credited service for which contributions were refunded is not creditable under this section.
4. The monthly amount of a conditional service retirement benefit shall be calculated on the years of fully paid credited service in accordance with AS 39.35.370(c) , except that the member may irrevocably elect to substitute one-twelfth of the “average base salary” as defined in AS 14.25.220 (5) in place of average monthly compensation.
5. Benefits payable under this section accrue from the first day of the month (1) in which the member meets the eligibility requirements of this section, (2) following the date of termination, and (3) following application for retirement, and are payable the last day of the month.  If payment is delayed, a retroactive payment shall be made to cover the period of deferment.  The last payment shall be made for the month in which the member dies or is no longer eligible for a benefit under this section.
6. Subject to AS 39.35.450 , an employee is eligible for a normal retirement benefit at age 60 or an early retirement benefit at age 55 if the employee was first hired as a legislative employee before May 30, 1987, and has at least 60 days of credited service as an employee of the legislature, other than as an employee of the Office of the Ombudsman or the office of victims’ rights, during each of five legislative sessions. An employee who was first hired as a legislative employee on or after May 30, 1987, and is otherwise eligible under this subsection must have at least 80 days of credited service during each of five legislative sessions to receive benefits under this subsection.

History. (§ 3 ch 174 SLA 1978; am § 11 ch 82 SLA 1979; am § 37 ch 13 SLA 1980; am §§ 50, 51 ch 137 SLA 1982; am §§ 25 — 27 ch 82 SLA 1986; am §§ 36, 37 ch 117 SLA 1986; am § 9 ch 21 SLA 1987; am § 23 ch 92 SLA 2001; am § 69 ch 20 SLA 2007)

Revisor’s notes. —

In 1986, the phrase “Subject to AS 39.35.450 ” was added at the beginning of (f) of this section in order to be consistent with (a) and (b) of this section and the language of AS 39.35.450 , as amended by ch. 117, SLA 1986.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in (c) of this section.

Cross references. —

For applicability of (f) of this section to certain persons not employed under the public employee’s retirement system on July 1, 1979, see § 15, ch. 82, SLA 1979 in the Temporary and Special Acts and Resolves.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck , 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the teachers’ retirement system. The user is advised to ascertain which version of a particular statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Section 57, ch. 82, SLA 1986 provides: “Sections 16, 22-23, 25-27, 42-45, and 50 of this Act apply only to members first hired under the Public Employees’ Retirement System after June 30, 1986.”

Sec. 39.35.389. Alternate benefits for EPORS members.

1. Notwithstanding former AS 39.37.050, a former member of the Alaska Territorial Legislature who is receiving a benefit on June 5, 1989 under the Elected Public Officers Retirement System and who has at least 30 years of credited service in the territorial and state legislatures may elect a benefit under this subsection instead of the benefit under former AS 39.37.050. The monthly amount of a benefit under this subsection is the greater of the member’s years of credited service multiplied by
   1. the member’s average monthly compensation and that amount multiplied by two percent; or
   2. $100.
2. Notwithstanding former AS 39.37.060, a surviving spouse receiving a benefit under the Elected Public Officers Retirement System whose spouse met the requirements of (a) of this section at the time of the spouse’s death may elect a benefit under this subsection instead of the benefit under former AS 39.37.060. The amount of a benefit under this subsection is 50 percent of the amount calculated for the deceased spouse under (a) of this section.
3. Benefits payable under this section accrue from the first day of the month following receipt of an application for benefits under this section and are payable on the last day of the month.

History. (§ 29 ch 106 SLA 1988)

Sec. 39.35.390. Deferred retirement benefit. [Repealed, § 55 ch 128 SLA 1977.]

Sec. 39.35.395. Voluntary contribution benefit.

The balance of the employee’s savings account shall be paid in one of the following options as elected by the employee:

1. a lump sum payment; or
2. a life annuity on a full cash refund or term-certain basis; or
3. installments over a designated period of time.

History. (§ 35 ch 128 SLA 1977)

Sec. 39.35.400. Nonoccupational disability benefits.

1. An employee is eligible for a nonoccupational disability benefit if the employee’s employment is terminated because of a total and apparently permanent nonoccupational disability, as defined in AS 39.35.680 , before the employee’s normal retirement date and after five or more years of credited service. A member is not entitled to a nonoccupational disability benefit under this section unless the member files an application for the benefit with the administrator within 90 days after the member terminated employment. The board may waive a filing deadline if there are extraordinary circumstances that resulted in the inability to meet the deadline. The board may delegate the authority to waive a filing deadline under this subsection to the administrator.
2. The nonoccupational disability benefits accrue beginning the first day of the month following termination of employment as a result of the disability and are payable the last day of the month.  If a final determination granting the benefit is not made in time to pay the benefit when due, a retroactive payment shall be made to cover the period of deferment.  The last payment shall be for the first month in which the disabled employee
   1. dies;
   2. recovers from disability;
   3. fails to meet the requirements under (e) of this section or under AS 39.35.415 ; or
   4. reaches normal retirement age.
3. If the disabled employee becomes ineligible to receive nonoccupational disability benefits, the employee is entitled to receive a normal or early retirement benefit if the employee would have been eligible for the benefit had employment continued during the period of disability. However, the period of disability does not constitute credited service.
4. The monthly amount of the nonoccupational disability benefit shall be determined in accordance with AS 39.35.370(c) , considering the employee’s credited service and compensation before termination of employment.
5. A disabled employee receiving a nonoccupational disability benefit shall provide the administrator, one year after appointment to disability benefits and once each year thereafter until disability benefits cease, proof of continuing eligibility to receive disability payments under the Social Security Act.  If the disabled employee is otherwise ineligible for a social security payment, the employee shall provide the administrator with sufficient medical evidence once each year to demonstrate that disability payments under the Social Security Act would be payable had the employee been otherwise eligible. If the disabled employee fails to provide the administrator with evidence of continuing eligibility for disability payments under the Social Security Act or other medical evidence required by the administrator within 30 days following each anniversary date, the disability benefits from the plan shall cease.  If that information is subsequently provided to the administrator, benefit payments will resume beginning for the month following that in which the information is provided.  When disability payments under the Social Security Act cease, it is the responsibility of the disabled employee to notify the administrator immediately.
6. A disabled employee’s nonoccupational disability benefit terminates when the employee first attains eligibility for normal retirement.  At that time, retirement benefits will be calculated under AS 39.35.370(c) .

History. (§ 21 ch 143 SLA 1960; am § 9 ch 155 SLA 1966; am §§ 9, 10 ch 109 SLA 1970; am § 10 ch 159 SLA 1972; am §§ 15 — 17 ch 1 SLA 1974; am §§ 4 — 8 ch 123 SLA 1976; am §§ 36, 37 ch 128 SLA 1977; am §§ 28 — 32 ch 82 SLA 1986; am § 41 ch 68 SLA 2000)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck , 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Sec. 39.35.410. Occupational disability benefits.

1. An employee is eligible for an occupational disability benefit if employment is terminated because of a total and apparently permanent occupational disability, as defined in AS 39.35.680 , before the employee’s normal retirement date.
2. The occupational disability benefits accrue beginning the first day of the month following termination of employment as a result of the disability and are payable the last day of the month.  If a final determination granting the benefit is not made in time to pay the benefit when due, a retroactive payment shall be made to cover the period of deferment.  The last payment shall be for the first month in which the disabled employee
   1. dies;
   2. recovers from disability;
   3. fails to meet the requirements under (g) of this section or under AS 39.35.415 ; or
   4. reaches normal retirement age.
3. If the disabled employee becomes ineligible to receive occupational disability benefits before the normal retirement date, the disabled employee shall then be entitled to receive an early retirement benefit if the employee would have been eligible for the benefit had employment continued during the period of disability.  The period of disability constitutes credited service.
4. The monthly amount of an occupational disability benefit is 40 percent of the disabled employee’s gross monthly compensation at the time of termination due to disability.
5. [Repealed, § 12 ch 123 SLA 1976.]
6. An employee is not entitled to an occupational disability benefit unless the employee files an application for it with the administrator within 90 days of the date of terminating employment. If the employee is unable to meet a filing requirement of this subsection, it may be waived by the commissioner if there are extraordinary circumstances that resulted in the employee’s inability to meet the filing requirement.
7. A disabled employee receiving an occupational disability benefit shall undergo a medical examination as often as the administrator considers advisable but not more frequently than once each year.  The administrator shall determine the place of the examination and engage the physician or physicians. If, in the judgment of the administrator, the examination indicates that the retired employee is no longer incapacitated because of a total and apparently permanent occupational disability, the administrator may not issue further disability benefits to the employee.
8. A disabled employee’s occupational disability benefit terminates when the disabled employee first attains eligibility for normal retirement.  At that time, the employee’s retirement benefit shall be calculated under the provisions of AS 39.35.370(c) .
9. Notwithstanding (h) of this section, at the time a peace officer or firefighter receiving occupational disability benefits under this section first attains eligibility for normal retirement, the employee shall irrevocably elect to receive retirement benefits in the amount calculated as the
   1. monthly occupational disability benefit calculated under (d) of this section; or
   2. employee’s retirement benefit calculated under the provisions of AS 39.35.370(c) .
10. Notwithstanding (b)(3) of this section, a peace officer or firefighter who retires under (i) of this section is not subject to the requirements of (g) of this section or AS 39.35.415 during retirement.

History. (§ 22 ch 143 SLA 1960; am § 11 ch 109 SLA 1970; am §§ 18 — 21 ch 1 SLA 1974; am § 13 ch 205 SLA 1975; am §§ 9 — 13 ch 123 SLA 1976; am §§ 38, 39 ch 128 SLA 1977; am § 38 ch 13 SLA 1980; am §§ 33 — 39 ch 82 SLA 1986; am § 42 ch 68 SLA 2000; am § 38 ch 59 SLA 2002; am § 111 ch 9 FSSLA 2005)

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Chapter 205, SLA 1975, which amended this section, was submitted to the voters by referendum and was rejected.

Opinions of attorney general. —

Benefits paid under subsection (i) of this section are retirement benefits, and not disability benefits. Sept. 19, 2002, Op. Att’y Gen.

Sec. 39.35.415. Reemployment of disabled employees.

An employee appointed to disability benefits under AS 39.35.400 or 39.35.410 shall apply to the division of vocational rehabilitation within 30 days of the date disability benefits commence. The employee shall be enrolled in a rehabilitation program if the employee meets the eligibility requirements of the division of vocational rehabilitation. Unless the employee demonstrates cause, benefits shall terminate at the end of the first month in which a disabled employee

1. fails to report to the division of vocational rehabilitation;
2. is certified by the division of vocational rehabilitation as failing to cooperate in a vocational rehabilitation program;
3. fails to interview for a job; or
4. fails to accept a position offered.

History. (§ 40 ch 82 SLA 1986)

Sec. 39.35.420. Nonoccupational death benefits.

1. If the death of an employee occurs from nonoccupational causes after completing less than one year of credited service, the employee’s designated beneficiary shall be paid the balance of the employee contribution account.  If the death of an employee occurs from nonoccupational causes after completing at least one year but less than five years of credited service, a death benefit shall be paid to the employee’s designated beneficiary.  The amount of the death benefit shall be the amount set out in (c) of this section.
2. If the death of a vested member or deferred vested member occurs from nonoccupational causes and the member designated no person other than the surviving spouse as beneficiary to receive nonoccupational death benefits, the surviving spouse may elect to receive either the amounts set out in (c) of this section or a 50 percent joint and survivor option based on credited service to the date of the employee’s death or termination.  Benefits accrue from the first day of the month following the employee’s death and are payable the last day of the month.
3. If, under AS 39.35.490 , a vested or deferred vested member designates as beneficiary to receive nonoccupational benefits someone other than the surviving spouse to whom the member has been married for at least one year, the administrator shall pay the designated beneficiary: (1) the balance of the deceased member’s employee contribution account; and (2) a lump-sum death benefit.  The amount of the lump-sum death benefit is $100 times the years of credited service of the deceased member plus $1,000.

History. (§ 23 ch 143 SLA 1960; am § 12 ch 109 SLA 1970; am § 11 ch 159 SLA 1972; am § 22 ch 1 SLA 1974; am §§ 14, 15 ch 123 SLA 1976; am § 40 ch 128 SLA 1977; am § 52 ch 137 SLA 1982; am § 38 ch 117 SLA 1986)

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Collateral references. —

67 C.J.S. Officers, § 320.

Sec. 39.35.430. Occupational death benefit.

1. [Repealed, § 16 ch 123 SLA 1976.]
2. If (1) the death of an employee occurs before the employee’s retirement and before the employee’s normal retirement date, and (2) the proximate cause of death is a bodily injury sustained or a hazard undergone while in the performance and within the scope of the employee’s duties, and (3) the injury or hazard is not the proximate result of wilful negligence of the employee, a monthly survivor’s pension shall be paid to the surviving spouse. If there is no surviving spouse or if the spouse later dies, the monthly survivor’s pension shall be paid in equal parts to the dependent children of the employee. On the date the normal retirement of the employee would have occurred if the employee had lived, monthly payments shall equal the monthly amount of the normal retirement benefit to which the employee, had the employee lived and continued employment until the employee’s normal retirement date, would have been entitled with an average monthly compensation as existed at death and the credited service to which the employee would have been entitled.
3. The first payment of the surviving spouse’s pension or of a dependent child’s pension shall be made for the month following the month in which the employee dies and payment shall cease to be made beginning with the month in which there is no surviving spouse or no dependent child.
4. [Repealed, § 19 ch 123 SLA 1976.]
5. [Repealed, § 19 ch 123 SLA 1976.]
6. If the death of an employee occurs from occupational causes but no surviving spouse or dependent children exist at the time of the death or if the employee designates as beneficiary under AS 39.35.490 someone other than the surviving spouse or dependent children, the employee’s designated beneficiary is entitled to receive those benefits available to a beneficiary under AS 39.35.420(c) and an occupational death benefit may not be paid to the surviving spouse or dependent children.
7. The monthly survivor’s pension in (b) of this section for survivors of employees who were not peace officers or firefighters is 40 percent of the employee’s monthly compensation in the month in which the employee dies.  The monthly survivor’s pension in (b) of this section for survivors of employees who were peace officers or firefighters is the greater of
   1. 50 percent of the monthly compensation in the month in which the employee dies; or
   2. 75 percent of the employee’s retirement benefit calculated under the provisions of AS 39.35.370(c) if the employee had survived to normal retirement age.
8. If an employee’s death is caused by an act of assault, assassination, or terrorism directly related to the person’s status as an employee, whether the act occurs on or off the employee’s job site, the death shall be considered to have occurred in the performance of and within the scope of the employee’s duties for purposes of (b)(2) of this section. If the expressed or apparent motive and intent of the perpetrator of the harm inflicted upon the employee was due to the performance of the employee’s job duties or employment, the death shall be considered to be directly related to the employee’s status as an employee. An employee’s job duties are those performed within the course and scope of the person’s employment with an employer.

History. (§ 24 ch 143 SLA 1960; am § 13 ch 109 SLA 1970; am § 23 ch 1 SLA 1974; §§ 16 — 19 ch 123 SLA 1976; am §§ 41, 42 ch 128 SLA 1977; am § 39 ch 13 SLA 1980; am §§ 53, 54 ch 137 SLA 1982; am § 39 ch 117 SLA 1986; am § 2 ch 40 SLA 2002; am §§ 39, 40 ch 59 SLA 2002)

Revisor’s notes. —

Subsection (h) was enacted as subsection (g) and renumbered in 2002.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Sec. 39.35.440. Death after occupational disability.

1. [Repealed, § 19 ch 123 SLA 1976.]
2. Upon the death of a disabled employee who is receiving or is entitled to receive an occupational disability benefit, the administrator shall pay the surviving spouse a surviving spouse’s pension, equal to 40 percent of the employee’s monthly compensation at the termination of employment because of occupational disability. If there is no surviving spouse, the administrator shall pay the survivor’s pension in equal parts to the dependent children of the employee.  On the date the normal retirement of the employee would have occurred if the employee had lived, the administrator shall adjust the monthly payments to equal the monthly amount of the normal retirement benefit to which the employee, had the employee lived and continued employment until the employee’s normal retirement date, would have been entitled with an average monthly compensation as existed at death and the credited service to which the employee would have been entitled.  If the death of an employee occurs from occupational causes but no surviving spouse or dependent children exist at the time of the death, or if the employee designates as beneficiary under AS 39.35.490 someone other than the surviving spouse or dependent children, the administrator shall pay the employee’s designated beneficiary those benefits available to a beneficiary under AS 39.35.420(c) and may not pay an occupational death benefit to the surviving spouse or dependent children.
3. The first payment of the surviving spouse’s pension or of a dependent child’s pension shall accrue from the first day of the month following the employee’s death and is payable the last day of the month.  The last payment shall be made for the last month in which there is an eligible surviving spouse or child.
4. [Repealed, § 55 ch 128 SLA 1977.]

History. (§ 25 ch 143 SLA 1960; am §§ 14, 15 ch 109 SLA 1970; am §§ 19 — 21 ch 123 SLA 1976; am §§ 43, 44, 55 ch 128 SLA 1977; am § 55 ch 137 SLA 1982; am § 40 ch 117 SLA 1986)

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Sec. 39.35.450. Joint and survivor option.

1. Benefits payable under this section are in place of benefits payable under AS 39.35.370 , 39.35.385 , and former AS 39.35.460 . Upon filing an application with the administrator or when a disabled employee first attains eligibility for normal retirement under AS 39.35.400(f) or 39.35.410(h) , the employee shall designate the person who is the employee’s spouse at the time of appointment to retirement as the contingent beneficiary. However, if the designation of the spouse is revoked under (c) of this section, the employee may designate a dependent approved by the administrator as the contingent beneficiary or may take normal or early retirement under AS 39.35.370 or 39.35.385 or, if the employee was first hired before July 1, 1996, benefit payments under the level income option under former AS 39.35.460 . The administrator shall pay benefits under the option elected by the employee. The employee may elect an option that provides that the employee is entitled to receive a reduced benefit payable for life, and, after the employee’s death, the contingent beneficiary is entitled to payments in the amount of
   1. 75 percent of the reduced benefit payable for life; or
   2. 50 percent of the reduced benefit payable for life.
2. The aggregate of the pension payments expected to be paid to an employee and the contingent beneficiary under the options set out in (a) of this section shall be the actuarial equivalent of the pension that the employee is otherwise entitled to receive upon retirement.
3. An employee may elect or change an option without the approval of the administrator if the election or change is filed in writing with the administrator before the effective date of the employee’s retirement.  An employee may revoke a joint and survivor option if the employee files with the administrator before the effective date of the employee’s retirement a revocation and consent to the revocation signed by the employee’s present spouse and each person entitled to benefits under a qualified domestic relations order on forms provided by the administrator.  The administrator may waive the requirement for written consent from
   1. a person entitled under the order if the person cannot be located or for another reason established by regulation; or
   2. the spouse if
      1. the employee is not married;
      2. the employee was not married to the spouse during any period of the employee’s employment with an employer;
      3. the spouse has no rights to the option because of the terms of a qualified domestic relations order;
      4. the spouse cannot be located;
      5. the employee and the spouse have been married for less than two years and the employee establishes that they are not cohabiting; or
      6. another reason is established under regulations of the administrator.
4. A member, including a deferred vested member, may, regardless of age, elect a joint and survivor option any time before appointment to receive a retirement benefit.
5. If either the employee or contingent beneficiary dies before the employee is appointed to retirement, the election becomes inoperative.  Once the employee is appointed to retirement, the election is irrevocable.  If a retired employee is reemployed and is subsequently reappointed to retirement, those benefits earned during the period of reemployment are subject to the initial election made under this section, unless the contingent beneficiary is deceased.  If the contingent beneficiary is deceased, the benefits earned during the period of reemployment are subject to AS 39.35.370 or this section if another contingent beneficiary was elected during the period of reemployment.  All other benefits earned during prior periods of employment are subject to the election at the time the employee was appointed to retirement.  If death occurs from nonoccupational causes during the period of reemployment, those benefits earned while reemployed are subject to AS 39.35.420(b) . All other benefits earned during prior periods of employment are subject to the election at the time the employee was appointed to retirement.  If death occurs from occupational causes during the period of reemployment, all benefits earned during all periods of employment are subject to AS 39.35.430(b) and (c).
6. The employee and any person claiming to be a contingent beneficiary shall file with the administrator a marriage certificate, divorce or dissolution judgment, or other evidence necessary to determine the applicability of this section and the identity of any contingent beneficiary.
7. If the administrator determines, based on the affidavit of the employee and other evidence that an employee is eligible to elect a form of payment other than a joint and survivor option under this section, and no contrary evidence is presented to the administrator within 60 days after the effective date of the employee’s retirement, a claim under this section, made by a spouse or former spouse of the member, may not be paid if payment would result in an increase in actuarial liability to the plan.
8. If an employee fails to elect an option under this section, and if no effective revocation is filed with the administrator, the employee is considered to have elected the option provided in (a)(2) of this section.

History. (§ 26 ch 143 SLA 1960; am § 8 ch 235 SLA 1968; am § 12 ch 159 SLA 1972; am §§ 24 — 26 ch 1 SLA 1974; am § 6 ch 81 SLA 1976; am § 45 ch 128 SLA 1977; am §§ 41 — 43 ch 117 SLA 1986; am § 15 ch 4 FSSLA 1996; am § 43 ch 68 SLA 2000)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

Section 44, ch. 4, FSSLA 1996 provides that nothing in that Act, which amended subsection (a), “modifies or terminates the terms of a collective bargaining agreement in effect on July 1, 1996.” Under § 45, ch. 4, FSSLA 1996, the provisions of that Act, which amended subsection (a), are not severable, notwithstanding AS 01.10.030 .

Opinions of attorney general. —

A qualified domestic relations order that names a member’s ex-wife as the member’s survivor is valid and should be accepted, and does not improperly eliminate the survivor rights of the member’s future spouse, should he remarry before retirement. Oct. 2, 2002, Op. Att’y Gen.

Sec. 39.35.451. Spouse survivor benefits under Public Employees Retirement Act of 1949. [Repealed, § 47 ch 59 SLA 2002.]

Sec. 39.35.455. Rights under qualified domestic relations order.

A former spouse shall be treated as a spouse or surviving spouse to the extent required by a qualified domestic relations order. Rights under the order do not take effect until the order is filed with the administrator.

History. (§ 44 ch 117 SLA 1986)

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Sec. 39.35.460. Level income option. [Repealed, § 20 ch 4 FSSLA 1996.]

Sec. 39.35.470. Other forms of payment. [Repealed, § 85 ch 59 SLA 1982; § 75 ch 137 SLA 1982.]

Sec. 39.35.475. Post-retirement pension adjustment.

1. Once each year the administrator shall increase benefit payments to eligible disabled members, to persons age 60 or older receiving benefits under this plan in the preceding calendar year, and to persons who have received benefits under this plan for at least five years who are not otherwise eligible for an increase under this section.
2. The increase in benefit payments applies to total benefit payments except for the cost-of-living allowance under AS 39.35.480 .  The amount of the increase is a percentage of the current benefit equal to
   1. the lesser of 75 percent of the increase in the cost of living in the preceding calendar year or nine percent, for recipients who on July 1 are at least 65 years old and for members receiving disability benefits; and
   2. the lesser of 50 percent of the increase in the cost of living in the preceding calendar year or six percent, for recipients who on July 1 are at least 60 but less than 65 years old or for recipients who are less than 60 years old on July 1 but who have received benefits from the plan for at least five years.
3. If a recipient was not receiving benefits during the entire preceding calendar year, the increase in benefits under this section shall be adjusted by multiplying it by the fraction whose numerator is the number of months for which benefits were received in the preceding calendar year and whose denominator is 12.
4. If at the time of first receiving a retirement benefit a member was receiving a disability benefit under this plan, the administrator shall, at the time the member is appointed to retirement, increase the retirement benefit by a percentage equal to the total cumulative percentage increase that has been applied to the member’s disability benefit under this section.
5. When computing an occupational death benefit under AS 39.35.430 or 39.35.440 or a survivor’s benefit under AS 39.35.450 , adjustments granted to the deceased member or survivor under this section shall be included.
6. An increase in benefit payments under this section is effective July 1 of each year and is based on the percentage increase in the consumer price index for urban wage earners and clerical workers for Anchorage, Alaska during the previous calendar year as determined by the United States Department of Labor, Bureau of Labor Statistics.

History. (§ 9 ch 235 SLA 1968; am § 14 ch 159 SLA 1972; am § 34 ch 146 SLA 1980; am § 57 ch 137 SLA 1982; am § 41 ch 82 SLA 1986; am § 112 ch 9 FSSLA 2005)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the teachers’ retirement system. The user is advised to ascertain which version of a particular statute is applicable. The version of this statute that was in effect immediately after the 1980 amendments read as follows:

“Sec. 39.35.475. POST RETIREMENT PENSION ADJUSTMENT. (a) When the administrator determines that the cost of living has increased and that the financial condition of the retirement fund permits, he shall increase benefit payments to persons receiving benefits under this system.

“(b) The amount of the increase in benefit payments may not exceed the greater of

“(1) the increase in the cost of living since the date of retirement; or

“(2) four percent of the retirement benefit compounded for each year of retirement.

“(c) If at the time of first receiving a retirement benefit a member was receiving a disability benefit under this system, the administrator shall include the time during which the member received the disability benefit in determining the number of years of retirement under this section.

“(d) An increase in benefit payments under this section is effective July 1 of the year for which the increase is granted.

“(e) The administrator shall implement this section by regulation.”

The 1982 amendment, effective July 1, 1982, substituted “lesser” for “greater” in the introductory language of subsection (b).

Section 49, ch 146, SLA 1980 provides: “The retirement benefit payable to a member of the public employees’ retirement system who is receiving a normal retirement benefit under AS 39.35.370 , July 1, 1980, and who at the time of his retirement was receiving a disability pension under the public employees’ retirement system, shall be increased by a percentage equal to the percentage of all post-retirement pension adjustments payable under AS 39.35.475 during the period that the member was receiving a disability benefit.”

Under § 112, ch. 9, FSSLA 2005, following amendment by sec. 34, ch. 146, SLA 1980, and until amended by sec. 41, ch. 82, SLA 1986, (a) of this section read: “(a) When the administrator determines that the cost of living has increased and that the financial condition of the retirement fund permits, the administrator shall increase benefit payments to persons receiving benefits under this plan. For purposes of this subsection, the financial condition of the fund would only permit an increase in benefits when the ratio of total fund assets to the accrued liability meets or exceeds 105 percent. In this subsection, “accrued liability” means the present value of all member benefits accrued by member service in this plan.”

Collateral references. —

Validity of legislation providing for additional retirement allowances for public employee previously retired, 27 ALR2d 1442.

Sec. 39.35.480. Cost-of-living allowance.

1. While residing in the state, a person receiving a benefit under AS 39.35.095 — 39.35.680 who is 65 years of age or older or who is receiving a disability benefit is entitled to receive a monthly cost-of-living allowance in addition to the basic benefit.  The amount of this allowance shall be $50 or 10 percent of the basic benefit, whichever is greater.
2. A person receiving a cost-of-living allowance under this section shall notify the administrator when the person expects to be absent from the state for a continuous period that exceeds 90 days.  After that notification, the person is no longer entitled to receive the monthly cost-of-living allowance, except that a person may be absent from the state for not more than six months without loss of the cost-of-living allowance if the absence is the result of illness and required by order of a licensed physician.  Upon returning to the state, and upon notification to the administrator, the person is again entitled to receive the monthly cost-of-living allowance, commencing with the first monthly benefit payment made after notification of the person’s return.
3. While residing in the state, a public employee of the Territory of Alaska who participated in the Public Employees’ Retirement Act established by ch. 41 SLA 1949, and who retired before June 22, 1951, is entitled to the cost-of-living allowance equal to 25 percent of the amount received under ch. 41 SLA 1949.
4. For purposes of this section, “residing in the state” means domiciled and physically present in the state. A person’s status as “residing in the state” does not change if the person is absent from the state for a continuous period of
   1. 90 days or less;
   2. six months or less, when ordered by a physician to be absent from the state; or
   3. any length of time while the person is a member of a reserve or auxiliary component of the armed forces of the United States, including the organized militia of Alaska, consisting of the Alaska National Guard, the Alaska Naval Militia, and the Alaska State Defense Force, and is called to active duty by the appropriate state or federal authority.

History. (§ 29 ch 143 SLA 1960; am § 1 ch 109 SLA 1967; am § 27 ch 1 SLA 1974; am § 108 ch 127 SLA 1974; am § 46 ch 128 SLA 1977; am §§ 12, 13 ch 82 SLA 1979; am § 42 ch 82 SLA 1986; am § 2 ch 70 SLA 2003)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

Section 57, ch. 82, SLA 1986 provides: “Sections 16, 22-23, 25-27, 42-45, and 50 of this Act apply only to members first hired under the Public Employees’ Retirement System after June 30, 1986.”

Sec. 39.35.485. Minimum benefit.

1. An employee who is eligible for a benefit calculated in accordance with AS 39.35.370(c) is entitled to a benefit of at least $25 a month for each year of credited service, not including adjustments made under AS 39.35.340 for military service, AS 39.35.360 for credit for earlier service, AS 39.35.370(c) for early retirement, AS 39.35.420 for nonoccupational death benefits, AS 39.35.450 for the survivor’s option, former AS 39.35.460 for the level income option, AS 39.35.475 for the post-retirement pension adjustment, and AS 39.35.480 for the cost of living.
2. [Repealed, § 55 ch 128 SLA 1977.]

History. (§ 15 ch 159 SLA 1972; am § 16 ch 47 SLA 1974; am § 14 ch 205 SLA 1975; am § 24 ch 123 SLA 1976; am § 55 ch 128 SLA 1977; am § 35 ch 146 SLA 1980; am § 58 ch 137 SLA 1982; am § 16 ch 4 FSSLA 1996; am § 113 ch 9 FSSLA 2005)

Editor’s notes. —

Chapter 205, SLA 1975, which amended this section, was submitted to the voters by referendum and was rejected.

Sec. 39.35.490. Designation of beneficiary.

1. Each employee shall designate the beneficiary or beneficiaries to whom the administrator shall distribute benefits payable under AS 39.35.095 — 39.35.680 as a consequence of the employee’s death. Notwithstanding a previous designation of beneficiary, a person who is the spouse of an employee at the time of the employee’s death automatically becomes the designated beneficiary if the spouse was married to the employee during part of the employee’s employment for an employer
   1. except to the extent a qualified domestic relations order filed with the administrator provides for payment to a former spouse or other dependent of the employee; or
   2. unless the employee files a revocation of beneficiary accompanied by a written consent to the revocation signed by the present spouse and each person entitled under the order; however, consent of the present spouse is not required if the member and the present spouse had been married for less than two years on the date of the member’s death and if the member established when filing the revocation that the member and the present spouse were not cohabiting.
2. Except as provided in (a) of this section, the designation may be changed or revoked by the employee without notice to the beneficiary or beneficiaries at any time.  If an employee designates more than one beneficiary, each shares equally unless the employee specifies a different allocation or preference. The designation of beneficiary, a change or revocation of a beneficiary, or a consent to a revocation of a beneficiary shall be made on a form provided by the administrator and is not effective until filed with the administrator.
3. If an employee fails to designate a beneficiary, or if no designated beneficiary survives the employee, the administrator shall pay the death benefit
   1. to the surviving spouse or, if there is none surviving,
   2. to the surviving children in equal parts or, if there is none surviving,
   3. to the surviving parents in equal parts or, if there is none surviving,
   4. to the employee’s estate.
4. A person claiming entitlement to benefits payable under AS 39.35.095 — 39.35.680 as a consequence of an employee’s death shall provide the administrator with a marriage certificate, divorce or dissolution decree, or other evidence of entitlement. Documents establishing entitlement may be filed with the administrator immediately after a change in the employee’s marital status.  If the administrator does not receive notification of a claim before the date 10 days after the employee’s death, the person claiming entitlement to the benefits is not entitled to receive from the division of retirement and benefits any benefit already paid by the administrator.

History. (§ 30 ch 143 SLA 1960; am § 47 ch 128 SLA 1977; am § 59 ch 137 SLA 1982; am §§ 45, 46 ch 117 SLA 1986)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Opinions of attorney general. —

A qualified domestic relations order that names a member’s ex-wife as the member’s survivor is valid and should be accepted, and does not improperly eliminate the survivor rights of the member’s future spouse, should he remarry before retirement. Oct. 2, 2002, Op. Att’y Gen.

Collateral references. —

Rights in survival benefits under public pension or retirement plan as between designated beneficiary and heirs, legatees, or personal representative of deceased employee, 5 ALR3d 644.

Sec. 39.35.495. Time limit for application.

If no application for benefits or for refund has been filed with the administrator by July 1 following the date on which an inactive member, except an employee on leave-without-pay status or on layoff status, would attain age 75, or if no application for benefits or for refund has been filed with the administrator within the 50 years following the most recent date on which the employee was an active member, benefits or refunds may not be paid under AS 39.35.095 — 39.35.680 and the member’s records may be destroyed.

History. (§ 40 ch 13 SLA 1980)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Sec. 39.35.500. Safeguard of employee funds held by the plan; transfer to other plans.

1. Except as provided in AS 29.45.030(a)(1) or in (b) of this section, employee contributions and other amounts held in the plan are exempt from Alaska state and local taxes. Except as provided in this subsection and in (b) of this section, amounts held on behalf of, or payable to, any employee or other person who is or may become eligible for benefits under the plan are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or involuntary, before being received by the person entitled to the amount under the terms of the plan. An attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of a right to amounts held under the plan is void. However, an employee’s right to receive benefits or the member’s employee contribution account may be assigned
   1. under a qualified domestic relations order; or
   2. to a trust or similar legal device that meets the requirements for a Medicaid-qualifying trust under AS 47.07.020(f) and 42 U.S.C. 1396p(d)(4).
2. An inactive member may elect to have the taxable portion of an inactive employee contribution account transferred directly to another plan or an individual retirement arrangement qualified under the federal Internal Revenue Code that accepts the transfer.

History. (§ 39 ch 143 SLA 1960; am § 10 ch 235 SLA 1968; am § 48 ch 128 SLA 1977; am § 7 ch 62 SLA 1982; am § 47 ch 117 SLA 1986; am § 30 ch 106 SLA 1988; am § 18 ch 31 SLA 1992; am § 16 ch 102 SLA 1994; am §§ 44, 45 ch 68 SLA 2000)

Revisor’s notes. —

In 1992, “AS 29.45.030(a)(1) ” was substituted for “AS 29.45.030(a)(1) (D)” to correct a manifest error in § 18, ch. 31, SLA 1992.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Sec. 39.35.505. Exemption of employee funds and benefits.

Employee contributions and other amounts held in the plan and retirement benefits payable under AS 39.35.095 — 39.35.680 are exempt from levy to enforce the collection of a debt as provided in AS 09.38 (exemptions).

History. (§ 7 ch 62 SLA 1982; am § 31 ch 106 SLA 1988)

Revisor’s notes. —

Enacted as AS 39.35.500(b) . Renumbered in 1982.

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Sec. 39.35.510. Voluntary waiver of benefits.

A retired employee may, in writing, request the administrator to suspend, for any period of time, payment of all or part of the benefits to which the employee is entitled. The administrator shall grant the request and may not require the retired employee to disclose a reason for desiring the suspension. Amounts that are suspended pursuant to the request are forfeited. The retired employee may subsequently terminate the suspension by filing a written notice with the administrator that states a desire to revoke the suspension. Upon receipt of the notice, the administrator shall authorize resumption of the retired employee’s regular pension payments.

History. (§ 40 ch 143 SLA 1960; am § 49 ch 128 SLA 1977)

Sec. 39.35.520. Adjustments.

1. When a change or error is made in the records maintained by the plan or in the contributions made on behalf of an employee or an error is made in computing a benefit, and, as a result, an employee or beneficiary is entitled to receive from the plan more or less than the employee would have been entitled to receive had the records or contributions been correct or had the error not been made, (1) the records, contributions, or error shall be corrected, and (2) as far as practicable, future payments or benefit entitlement shall be adjusted so that the actuarial equivalent of the pension or benefit to which the employee or beneficiary was correctly entitled shall be paid. An adjustment to contributions shall be picked up by the employer under AS 39.35.160 or treated as an adjustment to the employer’s contributions under AS 39.35.255 , depending upon the nature of the adjustment. If no future payment is due, a person who was paid any amount to which the person was not entitled is liable for repayment of that amount, and a person who was not paid the full amount to which the person was entitled shall be paid the balance of that amount.
2. An adjustment that requires the recovery of benefits may not be made under this section if
   1. the incorrect benefit was first paid two years or more before the member or beneficiary was notified of the error;
   2. the error was not the result of erroneous information supplied by the member or beneficiary; and
   3. the member or beneficiary did not have reasonable grounds to believe that the amount of the benefit was in error.
3. At least quarterly, the administrator shall report to the commissioner of administration on all situations since the administrator’s last report in which an adjustment has been prohibited under (b) of this section. If the commissioner of administration finds that there is reason to believe that one or more of the conditions set out in (b) of this section have not been met, the administrator shall notify the member or beneficiary that an adjustment will be made to recover the overpayment. A member or beneficiary who receives notice of adjustment under this subsection may file a request with the commissioner of administration for a waiver of the adjustment under AS 39.35.522 . An adjustment may not be required while the waiver request is pending.
4. The plan shall pay interest on amounts owed to a member or beneficiary.  Interest shall be charged on amounts owed to the plan by a member or beneficiary if the amount owed is the result of erroneous information supplied by the member or beneficiary, or the member or beneficiary had reasonable grounds to believe the amount of the benefit was in error. The interest paid under this subsection is at the rate established by regulation for indebtedness contributions owed.  Interest accrues from the date on which the correct payment was due and continues until an actuarial adjustment to the benefit is effective or the amount owed is paid.  Accrued interest in amounts less than the limit established in regulation for writing off small indebtedness and refund balances may not be collected or paid under this subsection.

History. (§ 42 ch 143 SLA 1960; am § 4 ch 81 SLA 1976; am § 2 ch 15 SLA 1984; am § 43 ch 82 SLA 1986; am § 41 ch 59 SLA 2002; am §§ 114, 132 ch 9 FSSLA 2005; am § 14 ch 13 SLA 2008)

Revisor’s notes. —

Section 114, ch. 9, FSSLA 2005, amended (c) of this section; sec. 132 of the same Act repealed that subsection. The actions had the same effective date. The legislative history of Senate Bill 141, the source of the Act, suggests that the proposed amendment of (c) of this section by the House State Affairs Committee was intended to effect change of the Senate-passed bill. The Senate-passed bill had proposed to repeal subsection (c), thereby eliminating independent review of recovery of benefits that had been allegedly paid in error. The House committee proposed to retain provisions relating to waiver and adjustment of benefits allegedly paid in error. The committee’s version amended subsection (c) to provide a mechanism by which review or oversight would continue notwithstanding the Act’s elimination of the Public Employees’ Retirement Board that had considered them, but failed to eliminate the reference to (c) in the bill section calling for the subsection’s repeal. Under AS 01.05.031(b)(7) , to correct a manifest error by way of a neglected deletion and to give effect to the language added by the House, to which the Senate later agreed, the conflicting provision that repeals subsection (c) is not given effect.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Editor’s notes. —

Although § 57, ch. 82, SLA 1986 provided that the amendment to this section made by § 43, ch. 82, SLA 1986, which added subsection (d), applied only to members first hired under the Public Employees’ Retirement System after June 30, 1986, § 57, ch. 82, SLA 1986 was amended by § 34, ch. 106, SLA 1988 to delete § 43, ch. 82, SLA 1986 from the sections applicable only to members first hired after June 30, 1986.

Sec. 39.35.522. Waiver of adjustments.

1. Upon request by an affected member or beneficiary under (b) of this section, the commissioner of administration may waive an adjustment or any portion of an adjustment made under AS 39.35.520 if, in the opinion of the commissioner of administration,
   1. the adjustment or portion of the adjustment will cause undue hardship to the member or beneficiary;
   2. the adjustment was not the result of erroneous information supplied by the member or beneficiary;
   3. before the adjustment was made, the member or beneficiary received confirmation from the administrator that the employee’s or beneficiary’s records were correct; and
   4. the member or beneficiary had no reasonable grounds to believe the employee’s or beneficiary’s records were incorrect before the adjustment was made.
2. In order to obtain consideration of a waiver under this section, the affected member or beneficiary must appeal to the commissioner of administration in writing within 30 days after receipt of notice that the records have been adjusted.
3. [Repealed, § 132 ch 9 FSSLA 2005.]
4. A decision of the commissioner of administration under this section to deny a waiver under this section may be appealed to the office of administrative hearings. The office of administrative hearings may reverse the decision of the commissioner and may impose conditions on the granting of a waiver which it considers equitable. These conditions may include requiring the member or beneficiary to make additional contributions to the plan.
5. [Repealed, § 132 ch 9 FSSLA 2005.]
6. [Repealed, § 57 ch 68 SLA 2000.]
7. [Repealed, § 57 ch 68 SLA 2000.]

History. (§ 9 ch 174 SLA 1978; am § 41 ch 13 SLA 1980; am § 60 ch 137 SLA 1982; am §§ 46 — 48, 57 ch 68 SLA 2000; am §§ 115, 132 ch 9 FSSLA 2005; am § 70 ch 20 SLA 2007)

Revisor’s notes. —

In 2000, in subsection (e), “AS 39.35.047(c)” was substituted for “AS 39.35.077(c)” to reflect the 2000 renumbering of AS 39.35.077.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section. Also, in 2005, in complying with the instruction in § 144(d), ch. 9, FSSLA 2005, to change “board” to “commissioner” in (b) and (d) of this section, the words “of administration” were added to maintain consistency with the amendment of (a) of this section by § 115, ch. 9, FSSLA 2005.

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Sec. 39.35.525. Limitation on use of credited service as peace officer or fireman. [Repealed, § 37 ch 106 SLA 1988.]

Sec. 39.35.527. Election to terminate coverage as a peace officer or firefighter.

1. Any active member may elect to irrevocably relinquish peace officer or firefighter status with the plan and to retain all credited service as if it had been acquired as a member other than a peace officer or firefighter.
2. In order to relinquish peace officer or firefighter status with the plan, a person must be an active member and must file a written request with the administrator by July 1, 1984, or within six months after employment as a peace officer or firefighter, whichever occurs later.  No person has more than one opportunity to exercise this option.
3. As soon as possible after the relinquishment, the administrator shall refund to a person who relinquishes peace officer or firefighter status under this section a refund equal to the amount by which the balance of the person’s accumulated mandatory contributions plus interest exceeds the balance which would exist if all service credit had been acquired as a member other than a peace officer or firefighter.
4. A written request to relinquish peace officer or firefighter status is irrevocable upon filing with the administrator.

History. (§ 1 ch 27 SLA 1983)

Revisor’s notes. —

In 1989, the term “fire fighter” was substituted for “fireman” in this section under § 60, ch. 50, SLA 1989.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Sec. 39.35.530. Limit on pension.

An employee may not simultaneously receive a pension under more than one section of AS 39.35.095 — 39.35.680 . However, benefits under AS 39.35.420(b) , 39.35.430 , 39.35.440 or 39.35.450 shall be paid in addition to the benefits or service credit a person is entitled to receive because of the person’s own membership in the retirement plan. An employee may not (1) receive duplicate credit under this plan for the same period of service, (2) receive more than one year of service credit in the course of any calendar year, or (3) receive a benefit while accruing service credit under this plan, except as provided in this section.

History. (§ 42 ch 143 SLA 1960; am § 61 ch 137 SLA 1982)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Sec. 39.35.535. Medical benefits.

1. Except as provided in (d) of this section, the following persons are entitled to major medical insurance coverage under this section:
   1. for employees first hired before July 1, 1986,
      1. an employee who is receiving a monthly benefit from the plan and who has elected coverage;
      2. the spouse and dependent children of the employee described in (A) of this paragraph;
      3. the surviving spouse of a deceased employee who is receiving a monthly benefit from the plan and who has elected coverage;
      4. the dependent children of a deceased employee who are dependent on the surviving spouse described in (C) of this paragraph;
   2. for members first hired on or after July 1, 1986,
      1. an employee who is receiving a monthly benefit from the plan and who has elected coverage for the employee;
      2. the spouse of the employee described in (A) of this paragraph if the employee elected coverage for the spouse;
      3. the dependent children of the employee described in (A) of this paragraph if the employee elected coverage for the dependent children;
      4. the surviving spouse of a deceased employee who is receiving a monthly benefit from the plan and who has elected coverage;
      5. the dependent children of a deceased employee who are dependent on the surviving spouse described in (D) of this paragraph if the surviving spouse has elected coverage for the dependent children.
2. Except as provided in (d) of this section, after an election of coverage under this section, major medical insurance coverage takes effect on the same date that benefits begin, and stops when the member or survivor is no longer eligible to receive a monthly benefit. The coverage for persons age 65 or older is the same coverage available for a person under 65 years of age. The benefits payable to persons age 65 or older supplement any benefits provided under the federal old age, survivors and disability insurance program. The medical premium and optional insurance premiums owed by a member or survivor shall be deducted from the benefit owed to the member or survivor before payment of the benefit.
3. A benefit recipient may elect major medical insurance coverage in accordance with regulations and under the following conditions:
   1. a person, other than a disabled member or a disabled member who is appointed to normal retirement, must pay an amount equal to the full monthly group premium for retiree major medical insurance coverage if the person is
      1. younger than 60 years of age and has less than
         1. 25 years of credited service as a peace officer under AS 39.35.360 and 39.35.370 ; or
         2. 30 years of credited service under AS 39.35.360 and 39.35.370 that is not service as a peace officer; or
      2. of any age and has less than 10 years of credited service;
   2. a person is not required to make premium payments for retiree major medical coverage if the person
      1. is a disabled member;
      2. is a disabled member who is appointed to normal retirement;
      3. is 60 years of age or older and has at least 10 years of credited service; or
      4. has at least
         1. 25 years of credited service as a peace officer under AS 39.35.360 and 39.35.370; or
         2. 30 years of credited service under AS 39.35.360 and 39.35.370 not as a peace officer.
4. Receipt under a qualified domestic relations order of a monthly benefit from the plan does not entitle a person or the person’s spouse or child to insurance coverage under (a) of this section.  However, a member’s former spouse who receives a monthly benefit under a qualified domestic relations order is entitled to receive major medical insurance coverage if the former spouse
   1. elects the coverage within 60 days after the first monthly benefit paid under the order is mailed first class or otherwise delivered; and
   2. pays the premium established by the administrator for the coverage.
5. The administrator shall inform members who have requested appointment to retirement that the health insurance coverage available to retired members may be different from the health insurance coverage provided to employees. The administrator shall also notify those members of time limits for selecting optional health insurance coverage and whether the election is irrevocable. A member who has requested appointment to retirement shall indicate in writing on a form provided by the administrator that the member has received the information required by this subsection and whether the member has chosen to receive optional health insurance coverage.
6. On and after July 1, 2007, benefits under this section shall be provided in part by the Alaska retiree health care trust established under AS 39.30.097(a) .

History. (§ 2 ch 200 SLA 1975; am § 62 ch 137 SLA 1982; am §§ 44, 45 ch 82 SLA 1986; am §§ 48, 49 ch 117 SLA 1986; am § 3 ch 14 SLA 1992; am § 17 ch 4 FSSLA 1996; am § 49 ch 68 SLA 2000; am § 10 ch 57 SLA 2001; am § 116 ch 9 FSSLA 2005; am § 71 ch 20 SLA 2007)

Revisor’s notes. —

Subsection (d) was enacted as (c). Renumbered in 1986. Minor word changes were made in 1986 to reconcile amendments to the section made by chapters 82 and 117, SLA 1986.

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Administrative Code. —

For major medical insurance, see 2 AAC 39, art. 3.

For appeals from denials of medical claims under the medical coverage provided by the teachers’ retirement system, see 2 AAC 39, art. 4.

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Provisions relating to federal old-age, survivors, and disability insurance benefits may be found in 42 U.S.C. 301 — 1397f (Social Security Act).

Section 57, ch. 82, SLA 1986 provides: “Sections 16, 22-23, 25-27, 42-45, and 50 of this Act apply only to members first hired under the Public Employees’ Retirement System after June 30, 1986.”

Section 44, ch. 4, FSSLA 1996 provides that nothing in that Act, which amended subsection (c), “modifies or terminates the terms of a collective bargaining agreement in effect on July 1, 1996.” Under § 45, ch. 4, FSSLA 1996, the provisions of that Act, which amended subsection (c), are not severable, notwithstanding AS 01.10.030 .

Sec. 39.35.540. Minimum benefit. [Repealed, § 75 ch 137 SLA 1982.]

Sec. 39.35.541. Actuarial reduction of benefit.

1. If, as a result of service credit claimed for which there is a corresponding indebtedness existing at retirement, the member’s retirement benefit is actuarially reduced and the resultant benefit is less than it would have been if the service credit had not been claimed, the retirement benefit shall be equal to the amount it would have been had the service credit not been claimed.
2. This section does not apply to an election to use service credit and a corresponding indebtedness under AS 39.35.340(i) .

History. (§ 63 ch 137 SLA 1982; am § 3 ch 81 SLA 2014)

Effect of amendments. —

The 2014 amendment, effective July 11, 2014, added (b).

Sec. 39.35.545. Duplicate benefits. [Repealed, § 6 ch 81 SLA 1976.]

Sec. 39.35.546. State and federal taxation of benefits.

1. Benefits of AS 39.35.095 — 39.35.680 are exempt from Alaska state and municipal income taxes.
2. Benefits paid under AS 39.35.095 — 39.35.680 may be subject to federal income taxes as provided in 26 U.S.C. 72.

History. (§ 17 ch 109 SLA 1970; am § 50 ch 128 SLA 1977; am § 42 ch 59 SLA 2002)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Sec. 39.35.547. Effect of amendments.

1. An amendment of AS 39.35.095 — 39.35.680 is not retroactive unless its retroactivity is expressly stated in the amendment.
2. The monthly amount of a benefit payable under AS 39.35.095 — 39.35.680 shall be determined in accordance with the provisions of AS 39.35.095 — 39.35.680 in effect on the date of termination of the member’s last segment of employment.

History. (§ 5 ch 81 SLA 1976; am § 42 ch 13 SLA 1980)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Cross references. —

For general provision that no statute is retroactive unless expressly stated, see AS 01.10.090 .

Editor’s notes. —

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of a particular statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Secs. 39.35.550 — 39.35.590. Request by political subdivision to participate and adoption of resolution; request by public organization to participate and adoption of resolution; survey to determine estimated cost; effective date of participation; designation of eligible employees and agreement to contribute. [Repealed, § 24 ch 13 SLA 2008.]

Sec. 39.35.600. Eligible employees bound to plan.

The eligible employees of a participating political subdivision or public organization are bound by the provisions of this plan and are entitled to the benefits provided under it.

History. (§ 44 e ch 143 SLA 1960)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Sec. 39.35.605. Contractors and employees of contractors excluded from plan.

1. A person or legal entity providing services to the state or to a political subdivision or public organization on a contractual or fee basis may not participate as an employer in the plan based on those services.
2. A person may not participate in the plan as an employee or member as the result of performing work for a person providing services under (a) of this section.

History. (§ 4 ch 29 SLA 2016)

Cross references. —

For provision providing for the severability of this section from the remainder of ch. 29, SLA 2016, see sec. 9, ch. 29, SLA 2016 in the 2016 Temporary and Special Acts.

Effective dates. —

Section 4, ch. 29, SLA 2016, which enacted this section, took effect on September 20, 2016.

Editor's notes. —

Under sec. 8, ch. 29, SLA 2016, this section applies "to contracts entered into on or after September 20, 2016."

Sec. 39.35.610. Transmittal of contributions to administrator; claims against funds of an employer.

1. The contributions of an employer and the contributions of its employees shall be transmitted to the administrator as soon as practicable after the close of the payroll period for which the contributions are made. Subject to (c) of this section, if an employer is delinquent in transferring the contributions for more than 15 days, interest shall be assessed on the outstanding contributions at one and one-half times the most recent actuarially determined rate of earnings for the retirement plan from the date that the contributions were originally due.
2. If contributions are not submitted within the prescribed time limit, the amount of contributions and interest due may be claimed by the administrator from any agency of the state or political subdivision that has in its possession funds of the employer or that is authorized to disburse funds to the employer that are not restricted by statute or appropriation to a specific purpose. The amount claimed shall be certified by the administrator as sufficient to pay the contributions and interest due from the employer. The agency shall submit the amount claimed, or the amount of funds of the employer subject to the administrator’s claim that are in the agency’s possession, whichever is less, to the administrator for deposit in the retirement fund and the Alaska retiree health care trust.
3. If an employer delinquent in transferring a contribution is a municipality in which the population decreased by more than 25 percent between 2000 and 2010, according to the decennial census conducted by the United States Bureau of the Census, the administrator may assess interest on the outstanding contribution at a rate less than the rate required in (a) of this section.

History. (§ 44 f ch 143 SLA 1960; am § 28 ch 1 SLA 1974; am § 53 ch 128 SLA 1977; am § 72 ch 20 SLA 2007; am § 15 ch 13 SLA 2008; am §§ 3, 4 ch 49 SLA 2018)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Effect of amendments. —

The 2018 amendment, effective June 30, 2018, in (a), added “Subject to (c) of this section, if” at the beginning of the second sentence; added (c).

Sec. 39.35.615. Effect of termination by amendment of agreement.

1. A political subdivision or public organization may request that its participation agreement be amended. The request may be made only after adoption of a resolution by the legislative body of the political subdivision and approval of the resolution by the person required by law to approve the resolution, or, in the case of a public organization, after adoption of a resolution by the governing body of that public organization. A certified copy of the resolution shall be filed with the administrator. An employer may not award past service to employees added to its participation agreement. When an employer requests to amend its participation agreement to add an elected official, the plan may cover that elected official only if the employer pays compensation to the elected official, for services as an elected official, in the amount of at least $2,001 a month. If a political subdivision or public organization amends its participation agreement so as to terminate coverage of a department, group, or other classification of employees, each employee whose coverage is so terminated, regardless of the employee’s employment status at the date of termination, shall be considered fully vested in actuarially adjusted accrued retirement benefits as of the date of termination, unless
   1. the employee’s contributions have been refunded; or
   2. the political subdivision or public organization amended its participation agreement to exclude coverage for the affected department, group, or other classification of employees at the written request of a majority of the employees employed in that department, group, or other classification at the time the request was made.
2. Each employee whose coverage is terminated must, within 60 days after the date of termination, inform the administrator, in writing, whether the employee wishes to obtain a refund or a vested benefit.
3. Each employee who elects to obtain a refund shall receive a refund of the balance of the employee contribution account. The vesting in accrued benefits for each employee who elects to obtain a refund is voided upon receipt of the refund, and the corresponding credited service may not be reinstated under AS 39.35.095 — 39.35.680 .  A partial refund may not be allowed under this section.
4. [Repealed, § 116(a) ch 20 SLA 2007.]
5. [Repealed, § 24 ch 13 SLA 2008.]
6. [Repealed, § 116(a) ch 20 SLA 2007.]
7. [Repealed, § 24 ch 13 SLA 2008.]
8. [Repealed, § 24 ch 13 SLA 2008.]
9. Termination of coverage of a department, group, or other classification of employees does not bar future coverage of that department, group, or classification if the employer is current with payments on amounts due under AS 39.35.625 . If coverage of a department, group, or classification is terminated under (a) of this section and the employer later amends its participation agreement to provide renewed coverage of that department, group, or classification, an affected employee may be credited only with future service.

History. (§ 44 ch 13 SLA 1980; am §§ 65, 66 ch 137 SLA 1982; am § 50 ch 68 SLA 2000; am §§ 73, 116(a) ch 20 SLA 2007; am §§ 16, 17, 24 ch 13 SLA 2008)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Sec. 39.35.620. Termination of participation.

1. If the contributions are not transmitted to the commissioner of administration within the prescribed time limit, the commissioner may grant an extension.  If the political subdivision or public organization is in default at the end of the extension, participation in the plan is terminated, and it shall be sent notice of termination.
2. All employees of the terminating employer whose contributions have not been refunded, regardless of their employment status at the date of termination, shall be considered fully vested in their adjusted accrued retirement benefits as of the date of termination of the employer.
3. [Repealed, § 116(a) ch 20 SLA 2007.]
4. Each employee of a terminating employer must, within 60 days of the employer’s termination of participation, inform the administrator, in writing, whether the employee wishes to obtain a refund or a vested benefit.
5. Each employee who elects to obtain a refund shall receive a refund of the balance, determined as of the date of the employer’s termination of participation, of the employee contribution account. The vesting in accrued benefits for each employee who elects to receive a refund is voided upon receipt of the refund and corresponding credited service may not be reinstated under AS 39.35.095 — 39.35.680 .  A partial refund may not be allowed under this section.
6. [Repealed, § 116(a) ch 20 SLA 2007.]
7. [Repealed, § 24 ch 13 SLA 2008.]
8. [Repealed, § 116(a) ch 20 SLA 2007.]
9. [Repealed, § 24 ch 13 SLA 2008.]
10. [Repealed, § 24 ch 13 SLA 2008.]
11. Termination of an employer’s participation in the plan does not bar future participation in the system by that employer if the employer is current with payments on amounts due under AS 39.35.625 . If a previously terminated employer returns to the system, the employer may only participate in the plan established under AS 39.35.700 — 39.35.990 . Employees may be credited under AS 39.35.700 — 39.35.990 only with service subsequent to the date of return.

History. (§ 44 g ch 143 SLA 1960; am §§ 29 — 35 ch 1 SLA 1974; am § 109 ch 127 SLA 1974; am § 45 ch 13 SLA 1980; am § 67 ch 137 SLA 1982; am §§ 74, 116(a) ch 20 SLA 2007; am §§ 18, 24 ch 13 SLA 2008)

Revisor’s notes. —

The intent of the amendment made by § 109, ch. 127, SLA 1974, was to bring the former language of AS 39.35.620(b) into conformity with art. I, § 3 of the Constitution of the State of Alaska. As the reenactment of that subsection by § 29, ch. 1, SLA 1974 removed the necessity for the change in ch. 127, the reenacted version contained in ch. 1, SLA 1974 prevails.

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Sec. 39.35.625. Termination costs.

1. Notwithstanding AS 39.35.255 , an employer that terminates participation of a department, group, or other classification of employees in the plan under AS 39.35.615 or that terminates participation in the plan under AS 39.35.620 shall pay to the plan each payroll period until the past service liability of the plan is extinguished an amount calculated by applying the current past service contribution rate adopted by the board to the greater of total base salaries paid
   1. during the payroll period to employees in positions for which coverage has been terminated;
   2. at the time of termination to employees in positions for which coverage has been terminated; or
   3. during the corresponding payroll period for the fiscal year ending June 30, 2008, to employees in positions for which coverage has been terminated.
2. Notwithstanding (a) of this section, the administrator may enter into a payment plan acceptable to the administrator for payment of an employer’s liability for termination costs. Termination costs not paid as prescribed by (a) of this section or in accordance with an approved payment plan may be collected by the administrator in accordance with AS 39.35.610(b) .
3. An employer requesting termination of all participation in the plan, termination of participation in the plan of a department, group, or other classification of employees, or a payment plan for payment of termination costs shall pay the cost associated with obtaining a termination cost study associated with the employer’s termination.

History. (§ 19 ch 13 SLA 2008)

Sec. 39.35.630. Distribution.

A distribution made as a result of termination of participation by an employer may, to the extent that no discrimination in value results, be paid in cash or in annuity contracts, in the discretion of the board.

History. (§ 44 h ch 143 SLA 1960)

Sec. 39.35.640. Conclusiveness of action taken upon termination.

In making a distribution, the determinations, divisions, appraisals, apportionments, and allotments made are final and conclusive and not subject to question.

History. (§ 44 i ch 143 SLA 1960)

Sec. 39.35.650. Refunds to employers.

An employer may not receive an amount from the plan, except as provided under AS 39.35.115(e) .

History. (§ 44 i ch 143 SLA 1960; am § 46 ch 13 SLA 1980; am § 32 ch 106 SLA 1988; am § 75 ch 20 SLA 2007; am § 20 ch 13 SLA 2008)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Sec. 39.35.660. Nonguarantee of employment.

AS 39.35.095 — 39.35.680 is not a contract of employment between an employer and an employee, nor does it confer a right of an employee to be continued in the employment of an employer, nor is it a limitation of the right of an employer to discharge an employee with or without cause.

History. (§ 38 ch 143 SLA 1960)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Sec. 39.35.670. Fraud.

A person who knowingly makes a false statement, or falsifies or permits to be falsified a record of this plan, in an attempt to defraud the plan is guilty of a class A misdemeanor.

History. (§ 41 ch 143 SLA 1960; am § 51 ch 68 SLA 2000)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “plan” was substituted for “system” in this section.

Cross references. —

For penalties for misdemeanors, see AS 12.55.035 and 12.55.135 .

Sec. 39.35.672. Pension forfeiture.

The provisions of AS 37.10.310 apply to pension benefits under AS 39.35.095 — 39.35.680 .

History. (§ 52 ch 47 SLA 2007)

Sec. 39.35.675. Inclusion of cost-of-living differentials in compensation and benefits.

1. An employee shall make contributions to the plan based on compensation including a cost-of-living differential.
2. The amount of a cost-of-living differential may not be included in the employee’s compensation for purposes of calculating benefits paid under AS 39.35.095 — 39.35.680 unless the employee has received a cost-of-living differential for at least 50 percent of the employee’s credited service.
3. When an employee receives a benefit, and if the employee’s compensation for purposes of calculating the benefit does not include a cost-of-living differential, then the administrator shall refund to the employee the amount of contributions the employee made based on the differential.
4. In this section, “cost-of-living differential” means an adjustment to salary based on the cost of living in the geographic region where the employee works and includes a geographic pay differential under AS 39.27.020 .

History. (§ 46 ch 82 SLA 1986; am § 11 ch 57 SLA 2001; am § 17 ch 47 SLA 2013)

Revisor’s notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in this section.

Effect of amendments. —

The 2013 amendment, effective July 1, 2013, in (d), substituted “geographic pay” for “pay step”.

Editor’s notes. —

Section 58, ch. 82, SLA 1986, provides that this section applies “only to members first hired under the Public Employees’ Retirement System after December 31, 1986.”

Sec. 39.35.677. Special rules for treatment of qualified military service.

1. Notwithstanding any contrary provisions of AS 39.35.095 — 39.35.680 , with respect to qualified military service, contributions shall be made and benefits and service credit shall be provided in accordance with 26 U.S.C. 414(u).
2. To the extent required by 26 U.S.C. 401(a)(37), if a member dies while performing qualified military service, as defined in 38 U.S.C. 43, the survivors of the member are entitled to any additional benefits that would have been provided to the survivors under the plan had the member resumed employment and then terminated employment on account of death. For purposes of this subsection, periods of qualified military service are not included in calculations of credited service.
3. Consistent with and to the extent required by 26 U.S.C. 414(u)(12), a member receiving differential wage payments from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under 26 U.S.C. 415(b). For purposes of this subsection, “differential wage payment” means any payment that
   1. is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services, as defined in 38 U.S.C. 43, while on active duty for a period of more than 30 days; and
   2. represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer.

History. (§ 43 ch 59 SLA 2002; am § 8 ch 102 SLA 2014)

Revisor's notes. —

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” in this section.

Cross references. —

For governor's transmittal letter for ch. 102, SLA 2014, adding subsections (b) and (c) to this section, see 2014 Senate Journal 1469 — 1470.

Effect of amendments. —

The 2014 amendment, effective July 29, 2014, added (b), retroactive to January 1, 2007; added (c), retroactive to January 1, 2009.

Editor's notes. —

Under sec. 11, ch. 102, SLA 2014, subsection (b) is retroactive to January 1, 2007, and subsection (c) is retroactive to January 1, 2009.

Subsections (b) and (c) of this section, as introduced by the governor and passed by the legislature, refer to 38 U.S.C. 43 but this statute does not exist. It is possible that this reference was intended to refer to 38 U.S.C. 4301 - 4335.

Sec. 39.35.678. Internal Revenue Code compliance.

1. The administrator shall use forfeitures that arise for any reason, including from termination of employment or death, to reduce employer contributions. Forfeitures may not be applied to increase the benefits of any member.
2. The administrator shall determine the amount of any benefit that is determined on the basis of actuarial tables using assumptions approved by the commissioner. The amount of benefits is not subject to employer discretion.
3. Employee contributions paid to, and retirement benefits paid from, the plan may not exceed the annual limits on contributions and benefits, respectively, allowed by 26 U.S.C. 415. Notwithstanding any contrary provision of law, the administrator may modify a request by a member to make a contribution to a plan if the amount of the contribution would exceed the limits provided in 26 U.S.C. 415 by using the following methods:
   1. if the law requires a lump sum payment for the purchase of service credit, the administrator may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under 26 U.S.C. 415(c) or (n);
   2. if a periodic payment plan under (1) of this subsection will not avoid a contribution in excess of the limits imposed by 26 U.S.C. 415(c), the administrator may either reduce the member’s contribution to an amount within the limits of that section or refuse the member’s contribution.

History. (§ 76 ch 20 SLA 2007)

Sec. 39.35.680. Definitions.

In AS 39.35.095 — 39.35.680 , unless the context otherwise requires,

1. “active member” means an employee who is employed by an employer, is receiving compensation for seasonal, permanent full-time, or permanent part-time services, and is making contributions to the plan;
2. “actuarial adjustment” means the adjustment necessary to obtain equality in value of the aggregate expected payments under two different forms of pension payments, considering expected mortality and interest earnings on the basis of assumptions, factors, and methods specified in regulations issued under this plan that are formally adopted by the board that clearly preclude employer discretion in the determination of the amount of any member’s benefit;
3. “administrator” means the commissioner of administration or the commissioner’s designee appointed under AS 39.35.003 ;
4. “average monthly compensation” means the result obtained by dividing the compensation earned by an employee during a considered period by the number of months, including fractional months, for which compensation was earned; an employee must have at least 115 days of credited service in the last payroll year in order for that year to be used as part of the consecutive payroll years; the considered period consists of
   1. for employees first hired before July 1, 1996, the three consecutive payroll years during the period of credited service that yield the highest average;
   2. for employees first hired on or after July 1, 1996, the five consecutive payroll years during the period of credited service that yield the highest average;
   3. if the employee does not have the number of consecutive payroll years required by (A) or (B) of this paragraph, the actual number of months, including fractional months, that the employee worked;
   4. for an employee who has made an election under AS 39.35.300(c) or 39.35.310(c) , the actual number of months, including fractional months, that the employee worked;
   5. for a peace officer or firefighter hired at any time, the three consecutive payroll years during the period of credited service that yield the highest average;
5. “beneficiary” means a person designated by an employee to receive benefits that may be due from the plan upon the employee’s death;
6. “board” means the Alaska Retirement Management Board;
7. “calendar year” means the period beginning on January 1 and ending on December 31;
8. “commissioner” means the commissioner of administration;
9. “compensation” means the remuneration earned by an employee for personal services rendered to an employer, including employee contributions under AS 39.35.160 , cost-of-living differentials only as provided in AS 39.35.675 , payments for leave that is actually used by the employee, the amount by which the employee’s wages are reduced under AS 39.30.150(c) , an amount that is contributed by the employer under a salary reduction agreement and that is not includable in the gross income of the employee under 26 U.S.C. 125 or 132(f)(4), and any amount deferred under an employer-sponsored deferred compensation plan, but does not include retirement benefits, severance pay or other separation bonuses, welfare benefits, per diem, expense allowances, workers’ compensation payments, or payments for leave not used by the employee whether those leave payments are scheduled payments, lump-sum payments, donations, or cash-ins; for a member first hired on or after July 1, 1996, compensation does not include remuneration in excess of the limitations set out in 26 U.S.C. 401(a)(17) (Internal Revenue Code);
10. “credited service” means the number of years, including fractional years, recognized for computing benefits that may be due from the plan;
11. “deferred vested member” means an inactive member who meets the five-year credited service requirement to qualify for a retirement benefit;
12. “dependent child” means an unmarried child of an employee, including one adopted, who is dependent upon the employee for support and who is either (A) under 19 years old or (B) under 23 years old and registered at and attending on a full-time basis an accredited educational or technical institution recognized by the Department of Education and Early Development; age restrictions set out in this paragraph do not apply to a child who is totally and permanently disabled;
13. “disabled member” means an employee who is terminated, who has not received a refund from the plan and is receiving a disability benefit from the plan;
14. “early retirement” means retirement for a member who is not eligible for normal retirement and who is at least 55 years old and is eligible to receive benefits under AS 39.35.370(b) or under AS 39.35.385(b) or (f);
15. “elected official” means a person whose compensation results from personal services rendered to an employer as an elected representative;
16. “employee contribution account” means the total maintained by the plan of the employee’s mandatory contributions, voluntary contributions, indebtedness principal, and interest contributions, interest credited to each of those accounts, and adjustments to the accounts in accordance with AS 39.35.100 ;
17. “employee savings account” means the account maintained by the plan to record the voluntary contributions of each employee, including interest and adjustments to the account in accordance with AS 39.35.100 ;
18. “employer” means
    1. the State of Alaska;
    2. a political subdivision or public organization of the state that participates in the plan based on a resolution to participate in the plan that was approved by the administrator on or before July 1, 2006; or
    3. a political subdivision or public organization of the state that, as a result of consolidation or reorganization that occurs on or after July 1, 2006, assumes liability under the plan of a political subdivision or public organization described in (B) of this paragraph;
19. “fiscal year” means the period beginning on July 1 and ending on June 30 of the following calendar year;
20. “former member” means an employee who is terminated and who has received a total refund of the balance of the employee contribution account or who has requested in writing a refund of the balance in the employee contribution account;
21. “inactive member” means an employee who is terminated and who has not received a refund from the plan or an employee on leave-without-pay status or layoff status;
22. “member” or “employee”
    1. means a person eligible to participate in the plan and who is covered by the plan;
    2. includes
       1. an active member;
       2. an inactive member;
       3. a vested member;
       4. a deferred vested member;
       5. a nonvested member;
       6. a disabled member;
       7. a retired member;
       8. an elected public officer under AS 39.35.381 ;
    3. does not include
       1. former members;
       2. persons compensated on a contractual or fee basis;
       3. casual or emergency workers or nonpermanent employees as defined in AS 39.25.200 ;
       4. persons covered by the Alaska Teachers’ Retirement System except as provided under AS 39.35.131 and 39.35.381 , or persons covered by a university retirement program;
       5. employees of the division of marine transportation engaged in operating the state ferry system who are covered by a union or group retirement system to which the state makes contributions;
       6. justices of the supreme court or judges of the court of appeals or of the superior or district courts of Alaska;
       7. the administrative director of the Alaska Court System appointed under art. IV, sec. 16 of the state constitution unless the director becomes a member under AS 39.35.158 ;
       8. members of the elected public officers’ retirement system (former AS 39.37); and
       9. contractual employees of the legislative branch of state government under AS 24.10.060(f) ;
    4. may include employees of the division of marine transportation excluded under (C)(v) of this paragraph provided that
       1. the State of Alaska formally agrees to their inclusion through the process of collective bargaining; and
       2. no collective bargaining agreement has the effect of obligating contributions made by the state under AS 39.30.150 in the event the state resumes participation in the federal social security system;
23. “military service” means active duty service in the armed forces of the United States;
24. “nonoccupational disability” means a physical or mental condition that, in the judgment of the administrator, presumably permanently prevents an employee from satisfactorily performing the employee’s usual duties for an employer or the duties of another position or job that an employer makes available and for which the employee is qualified by training or education, not including a condition resulting from a cause that the board, in its regulations has excluded;
25. “non-vested member” means an active or inactive member who does not meet the five-year credited service requirement to qualify for a retirement benefit;
26. “normal retirement” means retirement for a member who is eligible to receive benefits under AS 39.35.370(a) or under 39.35.385(a) or (f);
27. “occupational disability” means a physical or mental condition that, in the judgment of the administrator, presumably permanently prevents an employee from satisfactorily performing the employee’s usual duties for an employer or the duties of another comparable position or job that an employer makes available and for which the employee is qualified by training or education; however, the proximate cause of the condition must be a bodily injury sustained, or a hazard undergone, while in the performance and within the scope of the employee’s duties and not the proximate result of the wilful negligence of the employee;
28. “past service liability” means the actuarially determined excess of the accrued liability of the plan over the value of the plan’s assets, as of the date of the last actuarial valuation;
29. “payroll year” means the period that includes the first pay period ending in January of a year through the last pay period ending in December of that year;
30. “peace officer” or “firefighter” means an employee occupying a position as a peace officer, chief of police, regional public safety officer, correctional officer, correctional superintendent, firefighter, fire chief, or probation officer, but does not include a village public safety officer employed by a village public safety officer program established under AS 18.65.670 ;
31. “pension fund” or “fund” means the fund in which the assets of the plan, including income and interest derived from the investment of money, are deposited and held;
32. “permanent full-time” means an employee who is occupying a permanent position that regularly requires working 30 or more hours a week;
33. “permanent part-time” means an employee who is occupying a permanent position that regularly requires working at least 15 hours but less than 30 hours a week;
34. “plan” means the retirement plan established in AS 39.35.095 — 39.35.680 ;
35. “prescribed rate of interest” means the rate of interest used for computing employer contributions, for preparing actuarial tables used by the plan and for crediting interest to employee contributions and savings accounts, and for charging interest on employee indebtedness accounts;
36. “public organization” means an organization or entity
    1. created by the constitution or laws of the state for the purpose of administering state programs;
    2. whose officers and employees are paid by a method other than by the state payroll prepared by the Department of Administration; and
    3. whose employees are not required by law to participate in the plan;
37. “qualified domestic relations order” means a divorce or dissolution judgment under AS 25.24, including an order approving a property settlement, that
    1. creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of an employee contribution account or the benefits payable with respect to an employee;
    2. sets out the name and last known mailing address, if any, of the employee and of each alternate payee covered by the order;
    3. sets out the amount or percentage of the employee’s benefit, or of any survivor’s benefit, to be paid to the alternate payee, or sets out the manner in which that amount or percentage is to be determined;
    4. sets out the number of payments or period to which the order applies;
    5. sets out the retirement plan to which the order applies;
    6. does not require any type or form of benefit or any option not otherwise provided by AS 39.35.095 — 39.35.680 ;
    7. does not require an increase of benefits in excess of the amount provided by AS 39.35.095 — 39.35.680 , determined on the basis of actuarial value; and
    8. does not require the payment to an alternate payee of benefits that are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order;
38. “retired member” means an employee who is terminated, who has not received a refund from the plan and is receiving a benefit other than disability, from the plan;
39. “retirement” means that period of time from the first day of the month following (A) the date of termination and (B) application for retirement, in which a person is appointed to receive a retirement benefit, other than occupational or nonoccupational disability benefit;
40. “seasonal” refers to an employee who is occupying a position for less than 12 months each year where it is anticipated that the same employee will return to the position when needed and includes a temporary employee of the legislature if part of the service for the legislature during each calendar year is performed during a legislative session;
41. “surviving spouse” means the spouse of an employee who has been married to the employee for at least one year at the time of the employee’s death; the one-year marriage requirement does not apply when the employee’s death was an occupational or accidental death;
42. “system” means the Public Employees’ Retirement System of Alaska;
43. “vested member” is an active member who meets the five-year credited service requirement to qualify for a retirement benefit.

History. (§ 3 ch 143 SLA 1960; am § 2 ch 93 SLA 1962; am § 3 ch 102 SLA 1963; am § 10 ch 155 SLA 1966; am § 14 ch 83 SLA 1967; am §§ 18 — 21 ch 109 SLA 1970; am § 16 ch 159 SLA 1972; am § 36 ch 1 SLA 1974; am § 110 ch 127 SLA 1974; am § 3 ch 200 SLA 1975; am §§ 9, 10, 15 ch 205 SLA 1975; am §§ 5, 6 ch 27 SLA 1976; am §§ 22, 23 ch 123 SLA 1976; am § 1 ch 141 SLA 1976; am § 7 ch 218 SLA 1976; am §§ 6, 7 ch 245 SLA 1976; am §§ 12, 13 ch 263 SLA 1976; am § 54 ch 128 SLA 1977; am § 3 ch 58 SLA 1979; am § 3 ch 67 SLA 1979; am § 14 ch 82 SLA 1979; am § 27 ch 12 SLA 1980; am §§ 47, 48 ch 13 SLA 1980; am §§ 36, 37 ch 146 SLA 1980; am §§ 68 — 73 ch 137 SLA 1982; am §§ 2, 3 ch 27 SLA 1983; am §§ 47 — 53 ch 82 SLA 1986; am § 50 ch 117 SLA 1986; am § 33 ch 106 SLA 1988; am § 4 ch 58 SLA 1989; am § 2 ch 60 SLA 1989; am § 6 ch 104 SLA 1989; am § 1 ch 47 SLA 1990; am § 17 ch 6 SLA 1993; am § 18 ch 4 FSSLA 1996; am § 4 ch 22 SLA 1998; am §§ 52 — 55 ch 68 SLA 2000; am §§ 11, 12 ch 97 SLA 2001; am §§ 44 — 46 ch 59 SLA 2002; am §§ 28, 29 ch 92 SLA 2004; am §§ 117 — 121 ch 9 FSSLA 2005; am § 32 ch 12 SLA 2006; am §§ 77 — 79 ch 20 SLA 2007; am § 21 ch 13 SLA 2008; am § 39 ch 8 SLA 2011; am § 31 ch 22 SLA 2015)

Revisor’s notes. —

Reorganized in 1986, 2005, and 2008 to alphabetize the defined terms.

Minor word changes were made in 1989 to reconcile amendments to (22)(C)(iv) [formerly (21)(C)(iv)] of this section by chapters 58 and 104 SLA 1989.

In 1999, in this section, “Department of Education” was changed to “Department of Education and Early Development” in accordance with § 89, ch. 58, SLA 1999.

In the 2000 amendment of paragraph (4), the revisor of statutes deleted the word “and” set out at the end of subparagraph (4)(A) to correct a manifest error.

Under sec. 144, ch. 9, FSSLA 2005, “AS 39.35.095 — 39.35.680 ” was substituted for “this chapter” and “plan” was substituted for “system” in various paragraphs of this section.

Cross references. —

For transition provisions relating to the 1983 amendment deleting “qualified employee of the Department of Fish and Game” from the definition of “peace officer”, see §§ 4 and 5, ch. 27, SLA 1983, in the Temporary and Special Acts; for applicability of paragraph (40) of this section to certain persons not employed under the public employee’s retirement system on July 1, 1979, see § 15, ch. 82, SLA 1979 in the Temporary and Special Acts and Resolves; for conversion of credited service by persons employed as probation officers before May 15, 1990, see § 2, ch. 47, SLA 1990 in the Temporary and Special Acts; for legislative intent concerning the 1998 amendment of paragraph (21) [now (22)], see § 1, ch. 22, SLA 1998 in the 1998 Temporary and Special Acts.

Administrative Code. —

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

For service under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 4.

Effect of amendments. —

The 2011 amendment, effective May 10, 2011, substituted “the Alaska Court System” for “courts” in (22)(C)(vii).

The 2015 amendment, effective May 15, 2015, in (37)(A), substituted “an employee contribution” for “employee contribution”.

Editor’s notes. —

Section 4, ch. 58, SLA 1979, purported to add a paragraph to this section, effective if approved in a special election conducted by the Department of Administration among the active members of the public employees’ retirement system. The amendment was rejected.

Section 57, ch. 82, SLA 1986 provides: “Sections 16, 22-23, 25-27, 42-45, and 50 of this Act apply only to members first hired under the Public Employees’ Retirement System after June 30, 1986.”

Section 58, ch. 82, SLA 1986, provides that the definition of “compensation” as repealed and reenacted by sec. 49, ch. 82, SLA 1986 applies “only to members first hired under the Public Employees’ Retirement System after December 31, 1986.”

Chapter 205, SLA 1975, which amended this section, was submitted to the voters by referendum and was rejected.

Section 44, ch. 4, FSSLA 1996 provides that nothing in that Act, which amended the definition of “average monthly compensation,” modifies or terminates the terms of a collective bargaining agreement in effect on July 1, 1996.” Under § 45, ch. 4, FSSLA 1996, the provisions of that Act, which amended the definition of “average monthly compensation,” are not severable, notwithstanding AS 01.10.030 .

In general, a person’s right to benefits under the state’s public employee retirement systems vests when the person joins the system. Hammond v. Hoffbeck, 627 P.2d 1052 (Alaska 1981). Therefore, former law may govern the benefits of some members of the public employees’ retirement system. The user is advised to ascertain which version of the statute is applicable. Earlier versions of the statutes can be found in prior editions of the Alaska Statutes or in the published Session Laws of Alaska.

Section 13, ch. 97, SLA 2001 provides that the amendments to this section made by ch. 97, SLA 2001 do “not modify the terms of a contract between the state and a nonprofit regional corporation in existence on the effective date of this Act.” The effective date of § 7, ch. 97, SLA 2001, which amended this section, was March 1, 2002.

Sec. 39.35.690. [Renumbered as AS 39.35.995.]

Sec. 39.35.700. Applicability of AS 39.35.700 — 39.35.990.

The provisions of AS 39.35.700 — 39.35.990 apply only to members first hired on or after July 1, 2006, to members who are employed by employers that do not participate in the defined benefit retirement plan established under AS 39.35.095 — 39.35.680 , to former members as defined in AS 39.35.680 , or to members who transfer into the defined contribution retirement plan under AS 39.35.940 .

History. (§ 122 ch 9 FSSLA 2005; am §§ 80, 81 ch 20 SLA 2007)

Sec. 39.35.710. Defined contribution retirement plan established; federal qualification requirements.

1. A defined contribution retirement plan is established for employees of the state or a political subdivision or public organization of the state.
2. The defined contribution retirement plan is a plan in which savings are accumulated in an individual retirement account for the exclusive benefit of the member or beneficiaries. The plan is established effective July 1, 2006, at which time contributions by employers and members begin.
3. The retirement plan established by AS 39.35.700 — 39.35.990 is intended to qualify under 26 U.S.C. 401(a), 414(d), and 414(k) (Internal Revenue Code) as a qualified retirement plan established and maintained by the state for its employees, for the employees of political subdivisions, public corporations, and public organizations of the state, and for the employees of other employers whose participation is authorized by AS 39.35.700 — 39.35.990 and who participate in the plan set out in AS 39.35.700 — 39.35.990. Benefits under AS 39.35.880 are not provided by the defined contribution retirement plan.
4. An amendment to AS 39.35.700 — 39.35.990 does not provide a person with a vested right to a benefit if the Internal Revenue Service determines that the amendment will result in disqualification of the plan under the Internal Revenue Code.

History. (§ 122 ch 9 FSSLA 2005; am § 82 ch 20 SLA 2007)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.720. Membership.

An employee who becomes a member on or after July 1, 2006, shall participate in the plan set out in AS 39.35.700 — 39.35.990 .

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.725. Participation of elected officials of political subdivisions.

1. An elected official of a political subdivision of the state that participates in both the plan and the defined benefit plan of AS 39.35.095 — 39.35.680 is a member of the plan if
   1. the political subdivision covers elected officials under AS 39.35.600 — 39.35.650 and has designated elected officials under AS 39.35.957 as a classification of employees entitled to participate in the plan; and
   2. the elected official receives compensation from the political subdivision for services as an elected official in the amount of at least $2,001 a month.
2. An elected official of a political subdivision of the state that participates in the plan but not the defined benefit plan of AS 39.35.095 — 39.35.680 is a member of the plan if
   1. the political subdivision has designated elected officials under AS 39.35.957 as a classification of employees entitled to participate in the plan; and
   2. the elected official receives compensation from the political subdivision for services as an elected official in the amount of at least $2,001 a month.
3. An elected official entitled to participate under this section, and who either has no previous service under the system with the political subdivision or is retired under the system, may file a waiver of participation in the plan with the administrator within 30 days after the later of June 7, 2007 or the date that the elected official’s term of office begins. A waiver is irrevocable for the remainder of the elected official’s service as an elected official or employee of the political subdivision.

History. (§ 83 ch 20 SLA 2007; am § 22 ch 13 SLA 2008)

Sec. 39.35.730. Contributions by members.

1. Each member shall contribute to the member’s individual account an amount equal to eight percent of the member’s compensation from July 1 to the following June 30.
2. [Repealed, § 116(a) ch 20 SLA 2007.]
3. The employer shall deduct the contribution from the member’s compensation at the end of each payroll period, and the contribution shall be credited by the plan to the member’s individual account. The contributions shall be deducted from the member’s compensation before the computation of applicable federal taxes and shall be treated as employer contributions under 26 U.S.C. 414(h)(2). A member may not have the option of making the payroll deduction directly in cash instead of having the contribution picked up by the employer.

History. (§ 122 ch 9 FSSLA 2005; am § 116(a) ch 20 SLA 2007)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.740. Employment contributions mandatory.

Contributions of employees shall be made by payroll deductions. Every included employee shall be considered to consent to payroll deductions. It is of no consequence that a payroll deduction may cause the compensation paid in cash to an employee to be reduced below the minimum required by law. Payment of an employee’s compensation, less payroll deductions, is a full and complete discharge and satisfaction of all claims and demands by the employee relating to remuneration of services during the period covered by the payment, except with respect to the benefits provided under the plan.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.750. Contributions by employers.

1. An employer shall contribute to each member’s individual account an amount equal to five percent of the member’s compensation from July 1 to the following June 30.
2. An employer shall also contribute an amount equal to a percentage, as adopted by the board, of each member’s compensation from July 1 to the following June 30 to pay for retiree major medical insurance. This contribution shall be paid into the Alaska retiree health care trust established by the commissioner of administration under AS 39.30.097(b) and shall be accounted for in accordance with regulations established by the commissioner.
3. Notwithstanding (b) of this section, the employer contribution for retiree major medical insurance for fiscal year 2007 shall be 1.75 percent of each member’s compensation from July 1 to the following June 30.
4. An employer shall also make contributions to the health reimbursement arrangement plan under AS 39.30.370 .
5. An employer shall make annual contributions to a trust account in the plan, applied as a percentage of each member’s compensation from July 1 to the following June 30, in an amount determined by the board to be actuarially required to fully fund the cost of providing occupational disability and occupational death benefits under AS 39.35.700 — 39.35.990 and retirement benefits elected by disabled peace officers and firefighters under AS 39.35.890(h)(2) . The contribution required under this subsection for peace officers and firefighters and the contribution required under this subsection for other employees shall be separately calculated based on the actuarially calculated costs for each group of employees.

History. (§ 122 ch 9 FSSLA 2005; am §§ 84, 85 ch 20 SLA 2007; am § 23 ch 13 SLA 2008)

Editor’s notes. —

Section 134, ch. 9, FSSLA 2005 provides that, notwithstanding (e) of this section, “for the first fiscal year in which the public employees’ defined contribution retirement plan is in effect, the employer contribution to fully fund the cost of providing occupational disability and occupational death benefits under AS 39.35.890 and 39.35.892 shall be equal to

“(1) 0.4 percent of the compensation for peace officers and fire fighters; and

“(2) 0.3 percent of the compensation for all other employees.”

Under § 148, ch. 9, FSSLA 2005, section 134, ch. 9, FSSLA 2005 takes effect July 1, 2006.

Sec. 39.35.760. Rollover contributions and distributions.

1. An employee entering the plan may elect, at the time and in the manner prescribed by the administrator, to have all or part of a direct rollover distribution from an eligible retirement plan owned by the member paid directly into the member’s individual account.
2. Rollover contributions do not count as a purchase of membership service for the purpose of determining years of service.
3. A distributee may elect, at the time and in the manner prescribed by the administrator, to have all or part of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in the direct rollover.
4. In this section,
   1. “direct rollover” means the payment of an eligible rollover distribution by the plan to an eligible retirement plan specified by a distributee who is eligible to elect a direct rollover;
   2. “distributee” means a member, or a beneficiary who is the surviving spouse of the member, or an alternate payee;
   3. “eligible retirement plan” means
      1. an individual retirement account described in 26 U.S.C. 408(d)(3)(A);
      2. an annuity plan described in 26 U.S.C. 403(a);
      3. a qualified trust described in 26 U.S.C. 401(a);
      4. an annuity plan described in 26 U.S.C. 403(b);
      5. a governmental plan described in 26 U.S.C. 457(b);
      6. an individual retirement annuity defined in 26 U.S.C. 408(b); or
      7. on or after January 1, 2008, a Roth IRA described in 26 U.S.C. 408A;
   4. “eligible rollover distribution” means a distribution of all or part of a total account to a distributee, except for
      1. a distribution that is one of a series of substantially equal installments payable not less frequently than annually over the life expectancy of the distributee or the joint and last survivor life expectancy of the distributee and the distributee’s designated beneficiary, as defined in 26 U.S.C. 401(a)(9);
      2. a distribution that is one of a series of substantially equal installments payable not less frequently than annually over a specified period of 10 years or more;
      3. a distribution that is required under 26 U.S.C. 401(a)(9);
      4. the portion of any distribution that is not includable in gross income; however, a portion under this subparagraph may be transferred only to an individual retirement account or annuity described in 26 U.S.C. 408(a) or (b), to a qualified plan described in 26 U.S.C. 401(a) or 403(a), or to an annuity contract described in 26 U.S.C. 403(b), that agrees to separately account for amounts transferred, including separately accounting for the portion of the distribution that is includable in gross income and the portion of the distribution that is not includable in gross income; and
      5. other distributions that are reasonably expected to total less than $200 during a year.

History. (§ 122 ch 9 FSSLA 2005; am §§ 86, 87 ch 20 SLA 2007)

Sec. 39.35.770. Transmittal of contributions; claims against funds of an employer.

1. All contributions deducted in accordance with AS 39.35.700 — 39.35.990 shall be transmitted to the plan for deposit in the appropriate account or trusts as soon as administratively feasible, but in no event later than 15 days following the close of the payroll period.
2. If contributions are not transmitted within the prescribed time limit, interest shall be assessed on the outstanding contributions at the rate established under AS 39.35.610 from the date that contributions were originally due. Amounts due from an employer and interest as prescribed in this subsection may be claimed by the administrator from any agency of the state or political subdivision that has in its possession funds of the employer or that is authorized to disburse funds to the employer that are not restricted by statute or appropriation to a specific purpose. The amount claimed shall be certified by the administrator as sufficient to pay the contributions and interest due from the employer. The amount claimed shall be submitted to the administrator for deposit in the appropriate account or trusts.
3. Employers are responsible for administrative fees, investment fees, and investment losses charged to accounts established under AS 39.35.730 resulting from contribution adjustments due to employers enrolling members in the plan before the members are eligible for membership. Contributions made by employees shall be returned to the employer by reducing future employee contributions due. Contributions, net of fees and investment losses, made by employers shall be used to reduce future employer contributions due.

History. (§ 122 ch 9 FSSLA 2005; am §§ 88, 89 ch 20 SLA 2007)

Sec. 39.35.780. Limitations on contributions and benefits.

Notwithstanding any other provisions of this plan, the annual additions to each member’s individual account under this plan and under all defined contribution plans of the employer required to be aggregated with the contributions from this plan under the provisions of 26 U.S.C. 415 may not exceed, for any limitation year, the amount permitted under 26 U.S.C. 415(c) at any time. If the amount of a member’s individual account contributions exceeds the limitation of 26 U.S.C. 415(c) for any limitation year, the administrator shall take any necessary remedial action to correct an excess contribution. A fixed benefit provided under this plan may not exceed, for or during a limitation year, the amount permitted under 26 U.S.C. 415(b). If a fixed benefit provided under this plan exceeds, for or during a limitation year, the amount permitted under 26 U.S.C. 415(b), the administrator shall take remedial action necessary to comply with the limits on the benefit amount in 26 U.S.C. 415(b). The provisions of 26 U.S.C. 415, and the regulations adopted under that statute, as applied to qualified plans of governmental employees are incorporated as part of the terms and conditions of the plan.

History. (§ 122 ch 9 FSSLA 2005; am § 90 ch 20 SLA 2007)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.790. Vesting.

1. A participating member is immediately and fully vested in that member’s contributions and related earnings.
2. A member shall be fully vested in the employer contributions made on that member’s behalf, and related earnings, after five years of service. A member is partially vested in the employer contributions made on that member’s behalf, and the related earnings, in the ratio of
   1. 25 percent with two years of service;
   2. 50 percent with three years of service; and
   3. 75 percent with four years of service.

History. (§ 122 ch 9 FSSLA 2005)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.800. Investment of individual accounts.

1. The board shall provide a range of investment options and permit a participant to exercise investment control over the participant’s assets in the member’s individual account as provided in this section. If a participant exercises control over the assets in the individual account, the participant is not considered a fiduciary for any reason on the basis of exercising that control.
2. A participant may direct investment of plan funds held in an account among available investment funds in accordance with rules established by the board.
3. A participant may elect to change or transfer all or a portion of the participant’s existing account balance among available investment funds not more often than once each day in accordance with the rules established by the administrator. Only the last election received by the administrator before the transmittal of contributions to the trust fund for allocation to the individual account shall be used to direct the investment of the contributions received.
4. Except to the extent clearly set out in the terms of the investment plans offered by the employer to the employee, the employer is not liable to the participant for investment losses if the prudent investment standard has been met.
5. The employer, administrator, state, board, or a person or entity who is otherwise a fiduciary is not liable by reason for any participant’s investment loss that results from the participant’s directing the investment of plan assets allocated to the participant’s account.
6. To the extent that a member’s individual account has been divided as provided in a qualified domestic relations order between participants, each participant shall be treated as the holder of a separate individual account for purposes of investment yields, decisions, transfers, and time limitations imposed by this section.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.810. Distribution election at termination.

1. A member is eligible to elect distribution of the member’s account in accordance with this section 60 days after termination of employment.
2. Notwithstanding (a) of this section, distribution of all or a portion of the individual account of a member may take place before the 60th day after the termination of employment with the approval of the administrator if the member makes a written request for a distribution under this subsection. The member’s spouse must consent to the request in writing if the member is married. Distribution of an individual account may only be made on account of an immediate and heavy financial need of the member for the following reasons and in the amount the need is demonstrated for
   1. medical care described in 26 U.S.C. 213(d) incurred by the member, the member’s spouse, or the member’s dependent, or necessary to obtain that medical care;
   2. the purchase of a principal residence for the member;
   3. postsecondary education tuition and related educational fees for the next 12-month period for the member, the member’s spouse, or a dependent of the member; in this paragraph, “dependent” has the meaning given in 26 U.S.C. 152;
   4. prevention of the eviction of the member from the member’s principal residence or foreclosure on the mortgage of the member’s principal residence; or
   5. any need prescribed by the United States Department of the Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of general applicability that satisfies the safe harbor definition of hardship under regulations adopted under 26 U.S.C. 401(k).
3. If a member dies before benefits commence, the member’s beneficiary is immediately eligible to elect distribution of the member’s share of the member’s individual account.
4. Distributions are payable to an alternate payee in accordance with the terms and conditions of a qualified domestic relations order that is received and approved by the administrator as specified in AS 39.35.860 .
5. Distributions that are being paid to a member may not be affected by the member’s subsequent reemployment with the employer. Upon reemployment, a new individual account shall be established for the member to which any future contributions shall be allocated. Upon subsequent termination of employment, the member’s new individual account shall be distributed in accordance with this section.

History. (§ 122 ch 9 FSSLA 2005)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.820. Forms of distribution.

1. A participant may elect to receive the participant’s share of the individual account in a
   1. lump sum payment, which is a single payment of the entire balance in the account;
   2. periodic lump sum payment, which is a payment of a portion of the balance in the account, not more than twice each year;
   3. period certain annuity payment, which is an annuity payable in a fixed number of monthly installments for a duration of 60, 120, or 180 months;
   4. life annuity with a period certain payment, which is an annuity payable until the later of the first day of the month in which the annuitant’s death occurs, or the date on which the payment of a fixed number of monthly installments is completed; the period certain for installments is 120 or 180 months;
   5. single life annuity payment, which is an annuity payable monthly until the first of the month in which the annuitant’s death occurs;
   6. joint and survivor annuity payment, which is an annuity payable monthly to the member until the first of the month in which the member’s death occurs; after the member’s death, a survivor annuity equal to 50 percent or 100 percent of the member’s benefit, as previously elected by the member, shall be paid monthly to the joint annuitant for the remainder of the survivor’s lifetime; or
   7. payment as authorized by a regulation adopted by the commissioner of administration.
2. Upon the death of an annuitant whose payments have commenced, an annuitant’s beneficiary shall receive further payments only to the extent provided in accordance with the form of payment that was being made to the annuitant. The remaining portion of the interest shall continue to be distributed at least as rapidly as under the method of distribution being used before the annuitant’s death.
3. If a participant dies before the distribution commencement date, distribution of the participant’s entire interest to a beneficiary shall be payable in any form other than a joint and survivor annuity.
4. If an unmarried member or other participant fails to elect a form of payment before the distribution commencement date, the account shall be paid to a beneficiary in the form of a lump sum to the extent required by the minimum distribution requirements set out in the Internal Revenue Code. If a married member fails to elect a form of payment before the distribution commencement date, the account shall be paid in the form of a 50 percent joint and survivor annuity, with the member’s spouse as the joint annuitant.

History. (§ 122 ch 9 FSSLA 2005; am § 2 ch 30 SLA 2018)

Effect of amendments. —

The 2018 amendment, effective September 16, 2018, added (a)(7), and made related changes.

Legislative history reports. —

For governor's transmittal letter for ch. 30, SLA 2018 (HB 306), which added paragraph (a)(7), see 2018 House Journal 2243 — 2244.

Sec. 39.35.830. Manner of electing distributions.

1. Any election or any alteration or revocation of a prior election by a participant for any purpose under this plan shall be on forms or made in a manner prescribed for that purpose by the plan administrator. To be effective, the forms required or the required action for any purpose under this plan must be completed and received in accordance with regulations adopted by the commissioner of administration.
2. At any time, but not less than seven days before the benefit commencement date, a member, alternate payee, or beneficiary may change
   1. the form of payment election;
   2. an election to commence benefits; or
   3. the joint annuitant designation.
3. Changes in elections are not allowed on or after seven days before the benefit commencement date.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.840. Distribution requirements.

1. Payments to a participant shall commence as soon as administratively feasible following the distribution commencement date. The distribution commencement date is the first date on which one of the following occurs:
   1. a member meets the requirements of AS 39.35.810 and has made a complete application for payment under AS 39.35.830 ;
   2. a participant has elected to defer receipt of the account to a date specified, the date has been attained, and the participant has made a complete application for payment;
   3. a member attains normal retirement age and has not made an application for payment or elected to defer receipt of the account to a date later than normal retirement age;
   4. a member’s beneficiary does not make an application for benefits, and five years have elapsed since the member’s death;
   5. notwithstanding (1) — (4) of this subsection, a participant whose account has a balance of $1,000 or less meets the requirements of AS 39.35.810 , at which time the participant must take payment of the participant’s account.
2. The entire interest of a member must be distributed or must begin to be distributed not later than the member’s required beginning date.
3. If a member dies after the distribution of the member’s interest has begun but before the distribution has been completed, the remaining portion of the interest shall continue to be distributed at least as rapidly as under the method of distribution being used before the member’s death.
4. If a member has made a distribution election and dies before the distribution of the member’s interest begins, distribution of the member’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death. However, if any portion of the member’s interest is payable to a designated beneficiary, distributions may be made over the life of the designated beneficiary or over a period certain not greater than the life expectancy of the designated beneficiary, commencing on or before December 31 of the calendar year immediately following the calendar year in which the member died, and, if the designated beneficiary is the member’s surviving spouse, the date distributions are required to begin may not be earlier than the later of December 31 of the calendar year (1) immediately following the calendar year in which the member died, or (2) in which the member would have attained 70 1/2 years of age, whichever is earlier. If the surviving spouse dies after the member but before payments to the spouse have begun, the provisions of this subsection apply as if the surviving spouse were the member. An amount paid to a child of the member shall be treated as if it were paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.
5. If a member has not made a distribution election before the member’s death, the member’s designated beneficiary must elect the method of distribution not later than December 31 of the calendar year (1) in which distributions would be required to begin under this section, or (2) that contains the fifth anniversary of the date of death of the member, whichever is earlier. If the member does not have a designated beneficiary or if the designated beneficiary does not elect a method of distribution, distribution of the member’s entire interest must be completed by December 31 of the calendar year containing the fifth anniversary of the member’s death.
6. For purposes of (b) of this section, distribution of a member’s interest is considered to begin (1) on the member’s required beginning date, or (2) if the designated beneficiary is the member’s surviving spouse and the surviving spouse dies after the member but before payments to the spouse have begun, on the date distribution is required to begin to the surviving spouse. If distribution in the form of an annuity irrevocably commences to the member before the required beginning date, the date distribution is considered to begin is the date that the distribution actually commences.
7. Notwithstanding any contrary provisions of AS 39.35.700 — 39.35.990 , the requirements of this section apply to all distributions of a member’s interest and take precedence over any inconsistent provisions of AS 39.35.700 — 39.35.990 .
8. All distributions required under this section are determined and made in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute, including any minimum distribution incidental benefit requirement.
9. In this section,
   1. “designated beneficiary” means the individual who is designated as the beneficiary under the plan in accordance with 26 U.S.C. 401(a)(9) and regulations adopted under that statute;
   2. “required beginning date” means the first day of April of the calendar year following the calendar year in which the member either attains 70 1/2 years of age or actually terminates employment, whichever is later.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.850. Designation of beneficiary.

1. Each participant shall have the right to designate a beneficiary and shall have the right, at any time, to revoke the designation or to substitute another beneficiary, subject to the following limitation: if a married member elects a nonspouse beneficiary, the value of the benefit payable to the beneficiary may not exceed 50 percent of the member’s portion of the account balance, and the member’s spouse shall automatically be considered the beneficiary for the remaining 50 percent of the account balance, unless the spouse consents to the beneficiary designation in a writing that is notarized or witnessed by the administrator. If the spouse consents in this manner, a married member may designate a nonspouse beneficiary for the entire benefit or any portion the benefit as part of an available form of payment contained in this plan,
   1. except to the extent a qualified domestic relations order filed with the administrator provides for payment to a former spouse or other dependent of the member; or
   2. unless the member filed a revocation of beneficiary accompanied by a written consent to the revocation from the present spouse and each person entitled under the order; however, consent of the present spouse is not required if the member and the present spouse had been married for less than one year on the date of the member’s death and if the member established when filing the revocation that the member and the present spouse were not cohabiting.
2. Except as provided in (a) of this section, the member may change or revoke the designation without notice to the beneficiary or beneficiaries at any time. If a member designates more than one beneficiary, each shares equally unless the member specifies a different allocation or preference. The designation of a beneficiary, a change or revocation of a beneficiary, and a consent to revocation of a beneficiary shall be made on a form provided by the administrator and is not effective until filed with the administrator.
3. If a member fails to designate a beneficiary, or if no designated beneficiary survives the member, the death benefit shall be paid
   1. to the surviving spouse or, if there is none surviving;
   2. to the surviving children of the member in equal parts or, if there are none surviving;
   3. to the surviving parents in equal parts or, if there are none surviving;
   4. to the estate.
4. A person claiming entitlement to benefits payable under AS 39.35.700 — 39.35.990 as a consequence of a member’s death shall provide the administrator with a marriage certificate, divorce or dissolution judgment, or other evidence of entitlement. Documents establishing entitlement may be filed with the administrator immediately after a change in the member’s marital status. If the administrator does not receive notification of a claim before the date 10 days after the member’s death, the person claiming entitlement is not entitled to receive from the division of retirement and benefits any benefit already paid by the administrator.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.860. Rights under qualified domestic relations order.

1. Notwithstanding the nonalienation provisions in AS 39.35.900(a) , the plan administrator may direct that benefits be paid to someone other than a member or beneficiary under a valid qualified domestic relations order that is executed by the judge of a competent court in accordance with applicable state law and that has been accepted by the administrator.
2. The administrator shall determine whether an order meets the requirements of this section within a reasonable period after receiving an order. The administrator shall notify the member and any alternate payee that an order has been received and indicate to the member and any alternate payee when the order is accepted. A separate account for the alternate payee portion shall be established as soon as administratively feasible after the order has been accepted by the administrator.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.870. Eligibility for retirement and medical benefits.

1. In order to obtain medical benefits under AS 39.35.880 , an active member must retire directly from the plan. A member is eligible to retire from the plan if the member has been an active member for at least 12 months before application for retirement and
   1. the member has at least 25 years of membership service as a peace officer or firefighter or at least 30 years of membership service for all other employees; or
   2. the member reaches the normal retirement age and has at least 10 years of membership service.
2. The normal retirement age is the age set for Medicare eligibility at the time the member retires.
3. A member’s surviving spouse is eligible to elect medical benefits under AS 39.35.880 if the member had retired, or was eligible for retirement and medical benefits at the time of the member’s death.
4. Members shall apply for retirement and medical benefits on the forms and in the manner prescribed by the administrator.
5. Participation in the retiree major medical insurance plan is not required in order to participate in the health reimbursement arrangement.
6. A person eligible for retirement and medical benefits is not required to participate in the health reimbursement arrangement in order to participate in the retiree major medical insurance plan.
7. An eligible person must make the irrevocable election to participate or not participate in the retiree major medical insurance plan by reaching 70 1/2 years of age, or upon application for retirement and medical benefits, whichever is later.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.880. Medical benefits.

1. The medical benefits available to eligible persons are access to the retiree major medical insurance plan and to the health reimbursement arrangement under AS 39.30.300 . Access to the retiree major medical insurance plan means that an eligible person may not be denied insurance coverage except for failure to pay the required premium.
2. Retiree major medical insurance plan coverage elected by an eligible member under this section covers the eligible member, the spouse of the eligible member, and the dependent children of the eligible member.
3. Retiree major medical insurance plan coverage elected by a surviving spouse of an eligible member under this section covers the surviving spouse and the dependent children of the eligible member who are dependent on the surviving spouse.
4. Major medical insurance coverage takes effect on the first day of the month following the date of the administrator’s approval of the election and stops when the person who elects coverage dies or fails to make a required premium payment.
5. The coverage for persons 65 years of age or older is the same as that available for persons under 65 years of age. The benefits payable to those persons 65 years of age or older supplement any benefits provided under the federal old age, survivors and disability insurance program.
6. The medical and optional insurance premiums owed by the person who elects coverage may be deducted from the health reimbursement arrangement. If the amount of the health reimbursement arrangement becomes insufficient to pay the premiums, the person who elects coverage under (a) of this section shall pay the premiums directly.
7. The cost of premiums for retiree major medical insurance coverage for an eligible member or surviving spouse who is
   1. not eligible for Medicare is an amount equal to the full monthly group premiums for retiree major medical insurance coverage;
   2. eligible for Medicare is the following percentage of the premium amounts established for retirees who are eligible for Medicare:
      1. 30 percent if the member had 10 or more, but less than 15, years of service;
      2. 25 percent if the member had 15 or more, but less than 20, years of service;
      3. 20 percent if the member had 20 or more, but less than 25, years of service;
      4. 15 percent if the member had 25 or more, but less than 30, years of service;
      5. 10 percent if the member had 30 or more years of service.
8. The eligibility for retiree major medical insurance coverage for an alternate payee under a qualified domestic relations order shall be determined based on the eligibility of the member to elect coverage. The alternate payee shall pay the full monthly premium for retiree major medical insurance coverage.
9. A person who is entitled to retiree major medical insurance coverage shall
   1. be informed by the administrator in writing
      1. that the health insurance coverage available to retired members may be different from the health insurance coverage provided to employees;
      2. of time limits for selecting optional health insurance coverage and whether the election is irrevocable; and
   2. indicate in writing on a form provided by the administrator that the person has received the information required by this subsection and whether the person has chosen to receive optional health insurance coverage.
10. The monthly group premiums for retiree major medical insurance coverage are established by the administrator in accordance with AS 39.30.095 . Nothing in AS 39.35.700 — 39.35.990 guarantees a person who elects coverage under (a) of this section a monthly group premium rate for retiree major medical insurance coverage other than the premium in effect for the month in which the premium is due for coverage for that month.
11. In this section, “health reimbursement arrangement” means the plan established in AS 39.30.300 .

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.890. Occupational disability benefits and reemployment of disabled employees.

1. An employee is eligible for an occupational disability benefit if employment is terminated because of a total and apparently permanent occupational disability before the employee’s normal retirement date.
2. The occupational disability benefits accrue beginning the first day of the month following termination of employment as a result of the disability and are payable the last day of the month. If a final determination granting the benefit is not made in time to pay the benefit when due, a retroactive payment shall be made to cover the period of deferment. The last payment shall be for the first month in which the disabled employee
   1. dies;
   2. recovers from the disability;
   3. fails to meet the requirements under (f), (j), or (m) of this section; or
   4. reaches normal retirement age.
3. If the disabled employee becomes ineligible to receive occupational disability benefits before the normal retirement date, the disabled employee shall then be entitled to receive retirement benefits if the employee would have been eligible for the benefit had employment continued during the period of disability. The period of disability constitutes membership service in regard to determining eligibility for retirement.
4. The monthly amount of an occupational disability benefit is 40 percent of the disabled employee’s gross monthly compensation at the time of termination due to disability. Notwithstanding AS 39.35.790(b) , at the time a member is appointed to disability, the member becomes fully vested in the employer contributions made under AS 39.35.750 (a). A disabled member is fully vested in the contributions to the member’s individual account made under this subsection. An employee is not entitled to elect distributions from the employee’s individual contribution account under AS 39.35.810 while the employee is receiving disability benefits under this section. While an employee is receiving disability benefits, based on the disabled employee’s gross monthly compensation at the time of termination due to disability, the employer shall make contributions
   1. to the employee’s individual account under AS 39.35.730 on behalf of the employee, without deduction from the employee’s disability payments; and
   2. on behalf of the employee under AS 39.35.750 .
5. An employee is not entitled to an occupational disability benefit unless the employee files an application for an occupational disability benefit with the administrator within 90 days after the date of terminating employment. If the employee is unable to meet a filing requirement of this subsection, the filing requirement may be waived by the administrator if there are extraordinary circumstances that resulted in the employee’s inability to meet the filing requirement.
6. A disabled employee receiving an occupational disability benefit shall undergo a medical examination as often as the administrator considers advisable, but not more frequently than once each year. The administrator shall determine the place of the examination and engage the physician or physicians. If, in the judgment of the administrator, the examination indicates that the retired employee is no longer incapacitated because of a total and apparently permanent occupational disability, the administrator may not issue further disability benefits to the employee.
7. A disabled employee’s occupational disability benefit terminates the last day of the month in which the disabled employee first qualifies for normal retirement. At that time, the employee’s retirement benefit shall be determined under the provisions of AS 39.35.820 — 39.35.840 , 39.35.870 , and 39.35.880 . An employee whose occupational disability benefit terminates under this subsection shall be considered to have retired directly from the plan.
8. Notwithstanding (g) of this section, at the time a peace officer or firefighter receiving occupational disability benefits under this section first attains eligibility for normal retirement, the employee shall irrevocably elect to receive retirement benefits in the amount calculated as the
   1. employee’s retirement benefit calculated under the provisions of AS 39.35.820 — 39.35.840 ; or
   2. employee’s retirement benefit calculated as if the provisions of AS 39.35.370(c) were to apply; however, pension benefits paid under this paragraph must be paid first from the peace officer’s or firefighter’s individual contribution account, and the remaining benefits must be paid from the trust account established under AS 39.35.750(e) ; the peace officer or firefighter may not elect other distributions from the peace officer’s or firefighter’s individual contribution account under AS 39.35.810 .
9. Notwithstanding (b)(3) of this section, a peace officer or firefighter who retires under (h) of this section is not subject to the requirements of (f) or (j) of this section during retirement.
10. An employee appointed to disability benefits shall apply to the division of vocational rehabilitation within 30 days after the date disability benefits commence. The employee shall be enrolled in a rehabilitation program if the employee meets the eligibility requirements of the division of vocational rehabilitation. Unless the employee demonstrates cause, benefits shall terminate at the end of the first month in which a disabled employee
    1. fails to report to the division of vocational rehabilitation;
    2. is certified by the division of vocational rehabilitation as failing to cooperate in a vocational rehabilitation program;
    3. fails to interview for a job; or
    4. fails to accept a position offered.
11. Upon the death of a disabled employee who is receiving or is entitled to receive an occupational disability benefit, the administrator shall pay the surviving spouse a surviving spouse’s pension, equal to 40 percent of the employee’s monthly compensation at the time of termination of employment because of occupational disability. If there is no surviving spouse, the administrator shall pay the survivor’s pension in equal parts to the dependent children of the employee. While the monthly survivor’s pension is being paid, the survivor is not entitled to elect distributions from the employee’s individual contribution account under AS 39.35.810 . The first payment of the surviving spouse’s pension or of a dependent child’s pension shall accrue from the first day of the month following the employee’s death and is payable the last day of the month. The last payment shall be made the last day of the last month in which there is an eligible surviving spouse or dependent child, or the last day of the month in which the employee would have first qualified for normal retirement if the employee had survived, whichever day is sooner. A retirement benefit shall be determined under the provisions of AS 39.35.820 — 39.35.840 , 39.35.870 , and 39.35.880 based on the date the employee would have first qualified for normal retirement if the employee had survived. In addition to payment of the member’s individual account, the surviving spouse or, if there is no surviving spouse, the surviving dependent children of the member, shall receive an additional benefit in an amount equal to the accumulated contributions that would have been made to the deceased member’s individual account under AS 39.35.730(a) and 39.35.750(a) , based on the deceased member’s gross monthly compensation at the time of occupational disability, from the time of the member’s death to the date the member would have first qualified for normal retirement if the member had survived. Earnings shall be allocated to the additional benefit calculated under this subsection based on the actual rate of return, net of expenses, of the trust account established under AS 39.35.750(e) over the period that the contributions would have been made. This additional amount and allocated earnings shall be paid in the same manner as determined for the member’s individual account under AS 39.35.820 — 39.35.860 to the extent permitted by the Internal Revenue Service. For the purpose of determining eligibility of an employee’s survivor who is receiving a benefit under this subsection for medical benefits under AS 39.35.870 — 39.35.880 , an employee who died while receiving disability benefits shall be considered to have retired directly from the plan on the date the employee would have first qualified for normal retirement if the employee had survived. The period during which the employee was eligible for a disability benefit and the period during which a survivor’s pension is paid to a survivor under this subsection each constitute membership service for the purposes of determining eligibility for medical benefits under AS 39.30.300 — 39.30.495 and AS 39.35.700 — 39.35.990 .
12. While a survivor under (k) of this section is receiving a survivor’s pension, the employer of the deceased employee shall make contributions with respect to the survivor based on the deceased employee’s gross monthly compensation at the time of termination due to disability
    1. that would have been paid to the employee’s individual account under AS 39.35.730 and 39.35.750(a) , to the trust account established under AS 39.35.750(e) , without deduction from the survivor’s pension; and
    2. to the appropriate accounts and funds under AS 39.35.750(b) — (e).
13. In this section, “occupational disability” means a physical or mental condition that the administrator determines presumably permanently prevents an employee from satisfactorily performing the employee’s usual duties or the duties of another comparable position or job available to the employee and for which the employee is qualified by training or education; however, the proximate cause of the condition must be a bodily injury sustained, or a hazard undergone, while in the performance and within the scope of the employee’s duties and not the proximate result of the wilful negligence of the employee.

History. (§ 122 ch 9 FSSLA 2005; am §§ 91 — 97 ch 20 SLA 2007)

Revisor’s notes. —

Subsection ( l ) was enacted as (m); relettered in 2007, at which time former subsection ( l ) was relettered as (m), and an internal reference in subsection (b) was conformed accordingly.

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

For benefits under the defined benefit plan ( AS 39.35.095 — 39.35.680 ), see 2 AAC 35, art. 3.

Sec. 39.35.891. Disability benefit and disabled peace officer or firefighter retirement benefit adjustment.

1. Once each year, the administrator shall increase disability benefits and retirement benefits elected by disabled peace officers or firefighters under AS 39.35.890(h)(2) . The amount of the increase is a percentage of the current disability benefit or retirement benefit equal to the lesser of 75 percent of the increase in the cost of living in the preceding calendar year or nine percent.
2. If a disabled member was not receiving a benefit during the entire preceding calendar year, the increase in the benefit under this section shall be adjusted by multiplying it by a fraction, the numerator of which is the number of months for which the benefit was received in the preceding calendar year and the denominator of which is 12.
3. If a disabled peace officer or firefighter elects to receive a retirement benefit in the amount calculated under AS 39.35.890(h)(2) , the administrator shall, at the time the disabled peace officer or firefighter is appointed to retirement, increase the retirement benefit by a percentage equal to the total cumulative percentage that has been applied to the disabled peace officer’s or firefighter’s disability benefit under this section.
4. An increase in benefit payments under this section is effective July 1 of each year and is based on the percentage increase in the Consumer Price Index for urban wage earners and clerical workers for Anchorage, Alaska, during the previous calendar year, as determined by the United States Department of Labor, Bureau of Labor Statistics.
5. Benefit adjustments under this section shall terminate the last day of the month following the date on which a disabled member is no longer receiving a disability benefit under AS 39.35.890 , unless the member is a disabled peace officer or firefighter and has chosen a retirement benefit under AS 39.35.890(h)(2) .

History. (§ 98 ch 20 SLA 2007)

Sec. 39.35.892. Occupational death benefit.

1. If (1) the death of an employee occurs before the employee’s retirement and before the employee’s normal retirement date, (2) the proximate cause of death is a bodily injury sustained or a hazard undergone while in the performance and within the scope of the employee’s duties, and (3) the injury or hazard is not the proximate result of wilful negligence of the employee, a monthly survivor’s pension shall be paid to the surviving spouse. If there is no surviving spouse or if the spouse later dies, the monthly survivor’s pension shall be paid in equal parts to the dependent children of the employee.
2. The first payment of the surviving spouse’s pension or of a dependent child’s pension shall be made for the month following the month in which the employee dies. Payments shall cease on the last day of the month in which there is no longer an eligible spouse or eligible dependent child, or the last day of the month following the earliest date the employee would have first qualified for normal retirement if the employee had survived, whichever day is sooner.
3. The monthly survivor’s pension in (b) of this section for survivors of employees who were not peace officers or firefighters is 40 percent of the employee’s monthly compensation in the month in which the employee dies. The monthly survivor’s pension in (b) of this section for survivors of employees who were peace officers or firefighters is 50 percent of the monthly compensation in the month in which the employee dies. While the monthly survivor’s pension is being paid, the survivor is not entitled to elect distributions from the employee’s individual contribution account under AS 39.35.810 , except as required by AS 39.35.840 . While the monthly survivor’s pension is being paid, the employer shall make contributions with respect to the employee’s surviving spouse and employee’s surviving dependent children based on the deceased employee’s gross monthly compensation at the time of occupational death
   1. that would have been paid to the employee’s individual account under AS 39.35.730 and 39.35.750(a) , to the trust account established under AS 39.35.750(e) , without deduction from the survivor’s pension; and
   2. to the appropriate accounts and funds under AS 39.35.750(b) — (e).
4. If an employee’s death is caused by an act of assault, assassination, or terrorism directly related to the person’s status as an employee, whether the act occurs on or off the employee’s job site, the death shall be considered to have occurred in the performance of and within the scope of the employee’s duties for purposes of (a)(2) of this section. If the expressed or apparent motive and intent of the perpetrator of the harm inflicted upon the employee was due to the performance of the employee’s job duties or employment, the death shall be considered to be directly related to the employee’s status as an employee. An employee’s job duties are those performed within the course and scope of the person’s employment with an employer.
5. On the date the employee would have first qualified for normal retirement if the employee had survived, the retirement benefit shall be determined under the provisions of AS 39.35.820 — 39.35.840 , 39.35.870 , and 39.35.880 . In addition to payment of the member’s individual account, the surviving spouse or, if there is no surviving spouse, the surviving dependent children of the member, shall receive an additional benefit in an amount equal to the accumulated contributions that would have been made to the deceased member’s individual account under AS 39.35.730(a) and 39.35.750(a) , based on the deceased member’s gross monthly compensation at the time of occupational death, from the time of the member’s death to the date the member would have first qualified for normal retirement if the member had survived. Earnings shall be allocated to the additional benefit calculated under this subsection based on the actual rate of return, net of expenses, of the trust account established under AS 39.35.750(e) over the period that such contributions would have been made. This additional amount and allocated earnings shall be paid in the same manner as determined for the member’s individual account under AS 39.35.820 — 39.35.860 to the extent permitted by the Internal Revenue Service. An employee who died and whose survivors receive occupational death benefits under this section shall be considered to have retired directly from the plan on the date the employee would have first qualified for normal retirement if the employee had survived. The period of time during which a survivor’s pension is paid under this section constitutes membership service for the purpose of determining vesting in employer contributions under AS 39.35.790(b) and eligibility for medical benefits under AS 39.30.300 — 39.30.495 and AS 39.35.700 — 39.35.990 .

History. (§ 122 ch 9 FSSLA 2005; am §§ 99 — 101 ch 20 SLA 2007)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.893. Survivor’s pension adjustment.

1. Once each year, the administrator shall increase payments to a person 60 years of age or older receiving a survivor’s pension under AS 39.35.890(k) or 39.35.892(c) and to a person who has received a survivor’s pension under AS 39.35.890(k) or 39.35.892(c) for at least five years, who is not otherwise eligible for an increase under this section.
2. The amount of the increase is a percentage of the current survivor’s pension equal to the lesser of 50 percent of the increase in the cost of living in the preceding calendar year or six percent.
3. If a survivor was not receiving a pension during the entire preceding calendar year, the increase in the survivor’s pension under this section shall be adjusted by multiplying it by a fraction, the numerator of which is the number of months for which the pension was received in the preceding calendar year and the denominator of which is 12.
4. The administrator shall increase the initial survivor’s pension paid to a survivor of a member who died while receiving disability benefits by a percentage equal to the total cumulative percentage that has been applied to the member’s disability benefit under AS 39.35.891 .
5. An increase in benefit payments under this section is effective July 1 of each year and is based on the percentage increase in the Consumer Price Index for urban wage earners and clerical workers for Anchorage, Alaska, during the previous calendar year, as determined by the United States Department of Labor, Bureau of Labor Statistics.
6. Pension adjustments under this section shall terminate the last day of the month following the date on which a survivor is no longer receiving a survivor’s pension under AS 39.35.890(k) or 39.35.892(c) .

History. (§ 102 ch 20 SLA 2007)

Sec. 39.35.894. Premiums for retiree major medical insurance coverage upon termination of disability benefits or survivor’s pension.

The premium for retiree major medical insurance coverage payable by an employee whose disability benefit is terminated under AS 39.35.890(g) or by an eligible survivor whose survivor pension is terminated under AS 39.35.890(k) or 39.35.892(e) when the employee would have been eligible for normal retirement if the employee had survived shall be determined under AS 39.35.880(g)(2) as if the employee or survivor were eligible for Medicare.

History. (§ 102 ch 20 SLA 2007)

Sec. 39.35.895. Amendment and termination of plan.

1. The state has the right to amend the plan at any time and from time to time, in whole or in part, including the right to make retroactive amendments referred to in 26 U.S.C. 401(b).
2. The plan administrator may not modify or amend the plan retroactively in such a manner as to reduce the benefits of any member accrued to date under the plan by reason of contributions made before the modification or amendment except to the extent that the reduction is permitted by the Internal Revenue Code.
3. The state may, in its discretion, terminate the plan in whole or part at any time without liability for the termination. If the plan is terminated, all investments remain in force until all individual accounts have been completely distributed under the plan, and, after all plan liabilities are satisfied, excess assets revert to the employer.
4. Any contribution made by an employer to the plan because of a mistake of fact must be returned to the employer by the administrator within one year after the contribution or discovery, whichever is later.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.900. Exclusive benefit.

1. The corpus or income of the assets held in trust as required by the plan may not be diverted or used for other than the exclusive benefit of the participants.
2. If plan benefits are provided through the distribution of annuity or insurance contracts, any refunds or credits in excess of plan benefits due to dividends, earnings, or other experience rating credits, or surrender or cancellation credits, shall be paid to the trust fund.
3. The assets of the plan may not be used to pay premiums or contributions of the employer under another plan maintained by the employer.
4. The administrator shall use forfeitures in the fixed benefit account of the plan that arise for any reason, including from termination of employment or death, to reduce employer contributions. Forfeitures may not be applied to increase the benefits of any member.
5. The administrator shall determine the amount of any fixed benefit that is determined on the basis of actuarial tables using assumptions approved by the commissioner. The amount of benefits is not subject to employer discretion.

History. (§ 122 ch 9 FSSLA 2005; am § 103 ch 20 SLA 2007)

Sec. 39.35.910. Nonguarantee of returns, rates, or benefit amounts.

The plan created by AS 39.35.700 — 39.35.990 is, with respect to individual accounts, treated as a defined contribution plan, and not a defined benefit plan. The amount of money in the individual account of a participant depends on the amount of contributions and the rate of return from investments of the account that varies over time. If benefits are paid in the form of an annuity, the benefit amount payable is dependent on the amount of money in the account and the interest rates applied and service fees charged by the annuity payor at the time the annuity is purchased from the carrier and benefits are first paid. Nothing in this plan guarantees a participant

1. a rate of return or interest rate other than that actually earned by the account of the participant, less applicable administrative expenses; or
2. an annuity based on interest rates or service charges other than interest rates available from and service charges by the annuity payor in effect at the time the annuity is paid.

History. (§ 122 ch 9 FSSLA 2005; am § 104 ch 20 SLA 2007)

Sec. 39.35.920. Nonguarantee of employment.

The provisions of AS 39.35.700 — 39.35.990 are not a contract of employment between an employer and an employee, nor do they confer a right of an employee to be continued in the employment of an employer, nor are they a limitation of the right of an employer to discharge an employee with or without cause.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.930. Fraud.

1. A person who knowingly makes a false statement or falsifies or permits to be falsified a record of this plan in an attempt to defraud the plan is guilty of a class A misdemeanor.
2. In this section, “knowingly” has the meaning given in AS 11.81.900(a) .

History. (§ 122 ch 9 FSSLA 2005)

Cross references. —

For penalties for misdemeanors, see AS 12.55.035 and 12.55.135 .

Sec. 39.35.932. Pension forfeiture.

The provisions of AS 37.10.310 apply to pension benefits under AS 39.35.700 — 39.35.990 .

History. (§ 53 ch 47 SLA 2007)

Sec. 39.35.940. Transfer into defined contribution plan by nonvested members of defined benefit plan.

1. Subject to (i) of this section, an active member of the defined benefit retirement plan of the public employees’ retirement system is eligible to participate in the defined contribution retirement plan established under AS 39.35.700 — 39.35.990 if that member has not vested. Participation in the defined contribution retirement plan is in lieu of participation in the defined benefit retirement plan established under AS 39.35.095 — 39.35.680 .
2. A member who has vested in a defined benefit retirement plan is not eligible to transfer under this section.
3. Each eligible member who elects to participate in the defined contribution retirement plan shall have transferred to a new account the employee contribution account balance held in trust for the member under the defined benefit retirement plan of the public employees’ retirement system. A matching employer contribution shall be made on behalf of that employee to the new account. The employer shall make the matching contribution from funds other than the trust funds of the defined benefit retirement plan established under AS 39.35.095 — 39.35.680 . The amount of the matching employer contribution shall be subject to, and may not exceed, the limitation of 26 U.S.C. 415(c) during the applicable limitation year as defined by AS 39.35.990 . If the matching employer contribution would exceed the limits during the limitation year in which the transfer occurs, the remaining amount of the matching employer contribution shall be made in the next limitation year, if the limits would not be exceeded.
4. Upon a transfer, all membership service previously earned under the defined benefit retirement plan shall be nullified for purposes of entitlement to a future benefit under the defined benefit retirement plan but shall be credited for purposes of determining vesting in employer contributions under AS 39.35.790(b) and eligibility to elect medical benefits under AS 39.35.870 . Membership service allowed for credit toward medical benefits does not include any service credit purchased for employment by an employer who is not a participating employer in this chapter.
5. An eligible member whose accounts are subject to a qualified domestic relations order may not make an election to participate in the defined contribution retirement plan under this subsection unless the qualified domestic relations order is amended or vacated and court-certified copies of the order are received by the administrator.
6. As directed by the participant, the board shall transfer or cause to be transferred the appropriate amounts to the designated account. The board shall establish transfer procedures by regulation, but the actual transfer may not be later than 30 days after the effective date of the member’s participation in the defined contribution retirement plan unless the major financial markets for securities available for a transfer are seriously disrupted by an unforeseen event that also causes the suspension of trading on any national securities exchange in the country where the securities were issued. In that event, the 30-day period of time may be extended by a resolution of the board of trustees. Transfers are not commissionable or subject to other fees and may be in the form of securities or cash as determined by the board. Securities shall be valued as of the date of receipt in the participant’s account.
7. If the board or the administrator receives notification from the United States Department of the Treasury, Internal Revenue Service, that this section or a portion of this section will cause the retirement system under this chapter, or a portion of the retirement system under this chapter, to be disqualified for tax purposes under the Internal Revenue Code, the portion that will cause the disqualification does not apply, and the board and the administrator shall notify the presiding officers of the legislature.
8. An employee who is eligible to elect transfer to the defined contribution retirement plan must make the election not later than 12 months after the first day of the month following the administrator’s receipt of the notification that the employee’s employer consents to transfers of its employees under (i) of this section. The election to participate in the defined contribution retirement plan must be made in writing on forms and in the manner prescribed by the administrator. Before accepting an election to participate in the defined contribution retirement plan, the administrator must provide the employee planning on making an election to participate in the defined contribution retirement plan with information, including calculations to illustrate the effect of moving the employee’s retirement plan from the defined benefit retirement plan to the defined contribution retirement plan as well as other information to clearly inform the employee of the potential consequences of the employee’s election. An election made under this subsection to participate in the defined contribution retirement plan is irrevocable. Upon making the election, the participant shall be enrolled as a member of the defined contribution retirement plan, the member’s participation in the plan shall be governed by the provisions of AS 39.35.700 — 39.35.990 , and the member’s participation in the defined benefit retirement plan under AS 39.35.115 shall terminate. The participant’s enrollment in the defined contribution retirement plan shall be effective the first day of the month after the administrator receives the completed enrollment forms. An election made by an eligible member who is married is not effective unless the election is signed by the individual’s spouse.
9. A member may make an election under this section only if the member’s employer participates in both the defined benefit retirement plan and the defined contribution retirement plan and consents to transfers under this section. The employer shall notify the administrator if the employer consents to allowing the employer’s members to choose to transfer from the defined benefit retirement plan to the defined contribution retirement plan under this section. An employer’s notice to allow transfers is irrevocable and applicable to all eligible employees of the employer.
10. In this section,
    1. “defined benefit retirement plan” means the retirement plan established in AS 39.35.095 — 39.35.680 ;
    2. “defined contribution retirement plan” means the retirement plan established in AS 39.35.700 — 39.35.990 .

History. (§ 122 ch 9 FSSLA 2005; am §§ 105 — 107 ch 20 SLA 2007)

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Sec. 39.35.950. Request by political subdivision to participate and adoption of resolution.

A municipality or other political subdivision of the state may request to become an employer in this plan. The request shall be made after adoption of a resolution by the legislative body of the political subdivision and after approval of the resolution by the person required by law to approve the resolution. A certified copy of the resolution shall be filed with the administrator. If the administrator approves the request for participation, the political subdivision is an employer of the plan.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.955. Request by public organization to participate and adoption of resolution.

A public organization may request to become an employer in this plan. The request shall be made after adoption of a resolution by the governing body of the public organization. A certified copy of the resolution shall be filed with the administrator. If the administrator approves the request for participation, the public organization is an employer of the plan.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.956. Contractors and employees of contractors excluded from plan.

1. A person or legal entity providing services to the state or to a political subdivision or public organization on a contractual or fee basis may not participate as an employer in the plan based on those services.
2. A person may not participate in the plan as an employee or member as the result of performing work for a person providing services under (a) of this section.

History. (§ 5 ch 29 SLA 2016)

Cross references. —

For provision providing for the severability of this section from the remainder of ch. 29, SLA 2016, see sec. 9, ch. 29, SLA 2016 in the 2016 Temporary and Special Acts.

Effective dates. —

Section 5, ch. 29, SLA 2016, which enacted this section, took effect on September 20, 2016.

Editor's notes. —

Under sec. 8, ch. 29, SLA 2016, this section applies "to contracts entered into on or after September 20, 2016."

Sec. 39.35.957. Designation of eligible employees, agreement to contribute, and amendment of participation.

1. A political subdivision or public organization participating in the defined contribution retirement plan under AS 39.35.700 — 39.35.990 shall designate the departments, groups, or other classifications of employees eligible to participate in the plan and, by participating, shall legally be presumed to have agreed to make contributions each year in the amounts required for members of the plan under AS 39.35.750 .
2. If the employer does not participate in the defined benefit retirement plan under AS 39.35.095 — 39.35.680 , an employee who is eligible under (a) of this section and who is a member of the defined benefit retirement plan under AS 39.35.095 — 39.35.680 does not accrue credited service or make contributions under that defined benefit retirement plan, but shall be a member of the defined contribution retirement plan under AS 39.35.700 — 39.35.990 and make contributions under that plan.
3. An employer may request to amend its participation in the plan to add or exclude departments, groups, or other classifications of employees by filing a resolution as provided by AS 39.35.950 or 39.35.955 with the administrator.

History. (§ 108 ch 20 SLA 2007)

Sec. 39.35.958. Termination of participation in the plan.

1. A political subdivision or public organization may request that its participation in the plan be terminated. The request may be made only after adoption of a resolution by the legislative body of the political subdivision and approval of the resolution by the person required by law to approve the resolution, or, in the case of a public organization, after adoption of a resolution by the governing body of that public organization. A certified copy of the resolution shall be filed with the administrator.
2. If contributions are not transmitted to the plan within the prescribed time limit, the administrator may grant an extension and shall assess interest on the outstanding contributions at the rate established under AS 39.35.610 . If the political subdivision or public organization is in default at the end of the extension, participation in the plan is terminated, and the political subdivision or public organization shall be sent notice of termination.
3. When an employer’s participation in the plan is terminated, or when an employer terminates coverage of a department, group, or other classification of employees under AS 39.35.957(c) , the administrator shall assess the employer a termination cost that the administrator determines is actuarially required to fully fund the costs to the plan for employees whose coverage is terminated, including the cost of providing the employer’s share of retiree health benefits under AS 39.35.880 , occupational disability and occupational death benefits under AS 39.35.890 and 39.35.892 , and pension benefits elected under AS 39.35.890 (h)(2).
4. An employee whose coverage under the plan is terminated as a result of termination of an employer’s participation under this section or amendment of the employer’s agreement under AS 39.35.957(c) shall be considered fully vested in employer contributions under AS 39.35.790(b) and in the individual account established for the employee under AS 39.30.730. If the employee is later employed with a participating employer, the employee’s membership service earned under the plan during employment with a terminated employer shall be credited for purposes of determining vesting in employer contributions under AS 39.35.790(b) and eligibility for medical benefits under this chapter and AS 39.30.300 — 39.30.495 .
5. An employer terminating participation in the plan shall pay termination costs determined by the administrator, or enter into a payment plan acceptable to the administrator, within 60 days after the employer receives notice of its termination costs from the administrator. Termination costs not paid within the prescribed time limit or in accordance with the approved payment plan shall be collected by the administrator in accordance with AS 39.35.610(b) . Termination of participation by an employer in the plan does not bar future participation by the employer if the employer has paid in full its prior termination costs.
6. A political subdivision or public organization considering or requesting termination from the plan shall pay the cost associated with obtaining a termination cost study associated with the employer’s termination.

History. (§ 108 ch 20 SLA 2007)

Sec. 39.35.960. Membership in teachers’ and public employees’ retirement systems.

A person who is employed at least half-time in the public employees’ defined contribution retirement plan (AS 39.35.700 — 39.35.990 ) during the same period that the person is employed at least half-time in a position in the teachers’ defined contribution retirement plan (AS 14.25.310 — 14.25.590 ) shall receive credited service under each plan for half-time employment. However, the amount of credited service a person receives under the public employees’ defined contribution retirement plan during a school year may not exceed the amount necessary, when added to the amount of credited service earned during the school year under the teachers’ defined contribution retirement plan, to equal one year of credited service.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.965. Army and air national guard employees.

A regular full-time civilian employee of the Alaska Army National Guard and Air National Guard whose entire salary is paid from allotted federal funds is included in the public employees’ defined contribution retirement plan (AS 39.35.700 — 39.35.990 ) if the federal or state government pays the employer’s contributions. If the amount that the federal government may legally contribute to the plan is lower than the required employer’s contribution, the state government shall contribute the difference. If the employer’s contributions are not paid when due, service credit for the period of delinquency may not be granted until the contributions are paid.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.970. North Pacific Fishery Management Council employees.

An employee of the North Pacific Fishery Management Council appointed under 16 U.S.C. 1852(f)(1)(Sec. 302(f)(1) of P.L. 94-265) whose compensation is paid from allotted federal funds is included in the public employees’ defined contribution retirement plan (AS 39.35.700 — 39.35.990 ) if the council pays the employer’s contributions. If the employer’s contributions are not paid when due, credited service for the period of delinquency may not be granted until the contributions are paid.

History. (§ 122 ch 9 FSSLA 2005)

Sec. 39.35.972. Special rules for treatment of qualified military service.

1. Notwithstanding any contrary provisions of AS 39.35.700 — 39.35.990 , with respect to qualified military service, contributions shall be made and benefits and service credit shall be provided in accordance with 26 U.S.C. 414(u).
2. To the extent required by 26 U.S.C. 401(a)(37), if a member dies while performing qualified military service, as defined in 38 U.S.C. 43, the survivors of the member are entitled to any additional benefits that would have been provided to the survivors under the plan had the member resumed employment and then terminated employment on account of death. For purposes of this subsection, periods of qualified military service are not included in calculations of credited service.
3. Consistent with and to the extent required by 26 U.S.C. 414(u)(12), a member receiving differential wage payments from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under 26 U.S.C. 415(c). For purposes of this subsection, “differential wage payment” means any payment that
   1. is made by an employer to an individual with respect to any period during which the individual is performing service in the uniformed services, as defined in 38 U.S.C. 43, while on active duty for a period of more than 30 days; and
   2. represents all or a portion of the wages the individual would have received from the employer if the individual were performing service for the employer.

History. (§ 109 ch 20 SLA 2007; am § 9 ch 102 SLA 2014)

Cross references. —

For governor's transmittal letter for ch. 102, SLA 2014, adding subsections (b) and (c) to this section, see 2014 Senate Journal 1469 — 1470.

Effect of amendments. —

The 2014 amendment, effective July 29, 2014, added (b), retroactive to January 1, 2007; added (c), retroactive to January 1, 2009.

Editor's notes. —

Under sec. 11, ch. 102, SLA 2014, subsection (b) is retroactive to January 1, 2007, and subsection (c) is retroactive to January 1, 2009.

Subsections (b) and (c) of this section, as introduced by the governor and passed by the legislature, refer to 38 U.S.C. 43 but this statute does not exist. It is possible that this reference was intended to refer to 38 U.S.C. 4301 - 4335.

Sec. 39.35.990. Definitions.

In AS 39.35.700 — 39.35.990 , unless the context requires otherwise,

1. “administrator” means the commissioner of administration or the commissioner’s designee;
2. “alternate payee” means the person for whom an amount has been separated into an account under a qualified domestic relations order;
3. “annuitant” means a member, beneficiary, or alternate payee who is receiving a benefit under this plan;
4. “beneficiary” means the person or persons entitled under the provisions of this plan to receive benefits after the death of a member or alternate payee;
5. “board” has the meaning given in AS 39.35.680 ;
6. “calendar year” has the meaning given in AS 39.35.680 ;
7. “compensation”
   1. means
      1. the total remuneration earned by an employee for personal services rendered, including cost-of-living differentials, as reported on the employee’s Federal Income Tax Withholding Statement (Form W-2) from the employer for the calendar year;
      2. the member contribution to the public employees’ retirement system under AS 39.35.730 , employee deferrals under AS 39.45.010 , the wage reduction amount contributed to the Alaska Supplemental Annuity Plan under AS 39.30.150(a) , and the wage reduction amount contributed to the Alaska Supplemental Benefit Plan under AS 39.30.150(c) , as those statutes may be amended from time to time;
   2. does not include retirement benefits, severance pay or other separation bonuses, welfare benefits, per diem, expense allowances, workers’ compensation payments, payments for leave not used whether those leave payments are scheduled payments, lump-sum payments, donations, or cash-ins, any remuneration contributed by the employer for or on account of the employee under this plan or under any other qualified or nonqualified employee benefit plan, or any remuneration not specifically included above which would have been excluded under 26 U.S.C. 3121(a) (Internal Revenue Code) if the employer had remained in the Federal Social Security System;
   3. notwithstanding (B) of this paragraph, includes any amount that is contributed by the employer under a salary reduction agreement and that is not includible in the gross income of the employee under 26 U.S.C. 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), or 403(b) (Internal Revenue Code); the annual compensation limitation for the member, which is so taken into account for those purposes, may not exceed $200,000, as adjusted for the cost of living in accordance with 26 U.S.C. 401(a)(17)(B) (Internal Revenue Code), with the limitation for a fiscal year being the limitation in effect for the calendar year within which the fiscal year begins;
8. “dependent child” has the meaning given in AS 39.35.680 ;
9. “distribution commencement date” has the meaning given in AS 39.35.840(a) ;
10. “employer” means
    1. the State of Alaska; or
    2. a political subdivision or public organization of the state that participates in the plan;
11. “fund” means the assets of the plan;
12. “individual account” means the total maintained by the plan in an investment account within the trust fund, established for each member for the purposes of allocation of the member’s contributions, the employer’s contributions on behalf of the member, and earnings credited to each of those contributions, investment gains and losses, and expenses; as well as reporting of the member’s benefit under the plan;
13. “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended;
14. “investment funds” means those separate funds that are provided within and that make up the trust fund and that are established for the purpose of directing investment through the exercise of the sole control of a member, beneficiary, or alternate payee under the terms of the plan and trust agreement;
15. “limitation year” means the year for which contributions are made to a member’s individual account as reported to the Internal Revenue Service and as meets the limits described in 26 U.S.C. 415(c);
16. “member” or “employee” means a person who is eligible to participate in the plan and who is covered by the plan, including the governor, the lieutenant governor, and a member of the legislature, but does not include
    1. a full-time or part-time instructor of the Department of Labor and Workforce Development or the Department of Education and Early Development in a position that requires a teaching certificate; or
    2. a person who is compensated on a contractual or fee basis;
17. “membership service” means full-time or part-time employment of a member or employee with an employer in the plan;
18. “normal retirement age” means the age set for Medicare eligibility at the time the member retires;
19. “participant” means the person who has a vested right to an individual account, such as a member, an alternate payee if the account is subject to a qualified domestic relations order, the member’s beneficiary if the member is deceased, or an alternate payee’s beneficiary if the alternate payee is deceased;
20. “peace officer” or “firefighter” means an employee occupying a position as a peace officer, chief of police, regional public safety officer, correctional officer, correctional superintendent, firefighter, fire chief, or probation officer, but does not include a village public safety officer employed by a village public safety officer program established under AS 18.65.670 ;
21. “plan” means the retirement plan established in AS 39.35.700 — 39.35.990 ;
22. “prudent investment standard” means the degree of care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;
23. “qualified domestic relations order” means a divorce or dissolution judgment under AS 25.24, including an order approving a property settlement, that
    1. creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of an individual account or the benefits payable with respect to a member;
    2. sets out the name and last known mailing address, if any, of the member and of each alternate payee covered by the order;
    3. sets out the amount or percentage of the member’s benefit, or of any survivor’s benefit, to be paid to the alternate payee, or sets out the manner in which that amount or percentage is to be determined;
    4. sets out the number of payments or period to which the order applies;
    5. sets out the retirement plan to which the order applies;
    6. does not require any type or form of benefit or any option not otherwise provided by AS 39.35.700 — 39.35.990 ;
    7. does not require an increase of benefits in excess of the amount provided by AS 39.35.700 — 39.35.990 ; and
    8. does not require the payment to an alternate payee of benefits that are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order;
24. “retiree” means an eligible person who has elected to receive medical benefits under AS 39.35.880 ;
25. “surviving spouse” means the spouse of an employee who has been married to the employee for at least one year at the time of the employee’s death;
26. “system” has the meaning given in AS 39.35.680 ;
27. “year of service” means the equivalent of 52 weeks of permanent full-time employment, which may consist of a combination of permanent full-time or permanent part-time membership service; in this paragraph, “permanent full-time” and “permanent part-time” have the meanings given in AS 39.35.680 .

History. (§ 122 ch 9 FSSLA 2005; am §§ 110 — 112 ch 20 SLA 2007; am §§ 6, 7 ch 29 SLA 2016)

Cross references. —

For provision providing for the severability of the changes made to paragraphs (16) and (17) under secs. 6 and 7, ch. 29, SLA 2016, from the remainder of ch. 29, SLA 2016, see sec. 9, ch. 29, SLA 2016 in the 2016 Temporary and Special Acts.

Administrative Code. —

For administration, see 2 AAC 35, art. 2.

Effect of amendments. —

The 2016 amendment, effective September 20, 2016, in (16), designated parts of (16) as (A); added (16)(B); in (17), inserted “of a member or employee” following “part-time employment”; made related and stylistic changes.

Editor's notes. —

Under sec. 8, ch. 29, SLA 2016, the changes made to paragraphs (16) and (17) in secs. 6 and 7, ch. 29, SLA 2016, “apply to contracts entered into on or after September 20, 2016.”

Sec. 39.35.995. Short title.

This chapter may be cited as the Public Employees’ Retirement System of Alaska.

History. (§ 1 ch 143 SLA 1960)

Revisor’s notes. —

Enacted as AS 39.35.690 ; renumbered in 2005 in accordance with § 144(f), ch. 9, FSSLA 2005.