Section 39.35.620. Termination of participation.

   (a) 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.
   (b) 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.
   (c)  [Repealed, Sec. 116(a) ch 20 SLA 2007].  
   (d) 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.
   (e) 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.
   (f)  [Repealed, Sec. 116(a) ch 20 SLA 2007].  
   (g)  [Repealed, Sec. 24 ch 13 SLA 2008].  
   (h)  [Repealed, Sec. 116(a) ch 20 SLA 2007].  
   (i)  [Repealed, Sec. 24 ch 13 SLA 2008].  
   (j)  [Repealed, Sec. 24 ch 13 SLA 2008].  
   (k) 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.

Authorities

39.35.625

Notes

Recent Bills that will modify this

HB 90 PEACE OFFICER/FIREFIGHTER RETIREMENT
HB 280 TEACHERS & PUB EMPLOYEE RETIREMENT PLANS
SB 83 PEACE OFFICER/FIREFIGHTER RETIREMENT
SB 88 TEACHERS & PUB EMPLOYEE RETIREMENT PLANS

Implemented As

2 AAC 35.229
2 AAC 35.230
2 AAC 35.235

References

2 AAC 35.230
2 AAC 35.235
AS 39.35.625 Termination costs.

History

(Sec. 44 g ch 143 SLA 1960; am Sec. 29 - 35 ch 1 SLA 1974; am Sec. 109 ch 127 SLA 1974; am Sec. 45 ch 13 SLA 1980; am Sec. 67 ch 137 SLA 1982; am Sec. 74, 116(a) ch 20 SLA 2007; am Sec. 18, 24 ch 13 SLA 2008)