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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HB 116                                                                                                         
01 Relating to the use of credited military service by retired peace officers and firefighters to                          
02 meet certain requirements for major medical insurance coverage; and providing for an                                    
03 effective date.                                                                                                         
04                           _______________                                                                               
05    * Section 1. AS 39.35.340(b) is amended to read:                                                                   
06            (b)  In order to obtain credited service under this section, an employee shall                               
07       make an election to do so and shall verify the period of military service. When                                   
08       eligibility for credited service for military service has been established, an                                    
09       indebtedness shall be determined as follows:                                                                      
10                 (1)  determine the employee's actual compensation, or the calculated                                
11       annual compensation for those employees working less than 12 months, during the                                   
12       calendar year 1976 or the year in which an employee first becomes vested under                                    
13       AS 39.35.095 - 39.35.680, whichever is later; [, MULTIPLIED BY]                                               
14                 (2)  multiply the amount determined under (1) of this subsection by                                 
01       the number of years of military service credited under this section; [, AND THIS                              
02       PRODUCT MULTIPLIED BY]                                                                                            
03                 (3)  multiply the product determined under (2) of this subsection by                                
04       six percent for members who are first eligible to claim this military service before                              
05       January 1, 1987, or eight and one-half percent for members who are first eligible to                              
06       claim this military service on or after January 1, 1987. [INTEREST AS                                             
07       PRESCRIBED BY REGULATION ACCRUES ON THIS INDEBTEDNESS                                                             
08       BEGINNING ON JULY 1, 1977, OR ONE YEAR FOLLOWING THE DATE A                                                       
09       PERSON FIRST BECOMES VESTED, WHICHEVER IS LATER. ANY                                                              
10       OUTSTANDING INDEBTEDNESS THAT EXISTS AT THE TIME A PERSON IS                                                      
11       APPOINTED TO RETIREMENT NECESSITATES AN ACTUARIAL                                                                 
12       ADJUSTMENT TO THE BENEFITS PAYABLE BASED UPON THAT MILITARY                                                       
13       SERVICE.]                                                                                                         
14    * Sec. 2. AS 39.35.340 is amended by adding new subsections to read:                                               
15            (j)  Notwithstanding (d) of this section, a member who retires as a peace officer                            
16       or firefighter may elect to use five or fewer years of credited service granted under this                        
17       section in computing years of credited service under AS 39.35.535(c). When                                        
18       eligibility for credited service for military service has been established and an election                        
19       under this subsection has been made, an indebtedness in addition to the indebtedness                              
20       determined under (b) of this section shall be determined for each year of military                                
21       service used under this subsection, in an amount based on the increase, if any, in the                            
22       present value of future benefits for that year as determined by the department.                                   
23            (k)  For indebtedness determined under this section, interest as prescribed by                               
24       regulation accrues beginning on July 1, 1977, or one year following the date a person                             
25       first becomes vested, whichever is later. An outstanding indebtedness for pension                                 
26       benefits that exists at the time a person is appointed to retirement necessitates an                              
27       actuarial adjustment to the pension benefits payable based on credited military service.                          
28    * Sec. 3. AS 39.35.541 is amended by adding a new subsection to read:                                              
29            (b)  This section does not apply to an election to use service credit and a                                  
30       corresponding indebtedness under AS 39.35.340(j).                                                                 
31    * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).                                                 
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