Alaska Statutes.
Title 14. Education, Libraries, and Museums
Chapter 25. Teachers' Retirement
Section 70. Contributions By Employer.
previous: Section 65. Transmittal of Contributions; Claims Against Funds of an Employer.
next: Section 75. Purchase of Credited Service.

AS 14.25.070. Contributions By Employer.

(a) An employer shall make contributions to the plan in accordance with this section and as approved by the board in an amount sufficient, after subtracting member contributions, to provide the benefits of AS 14.25.009 - 14.25.220. The amount shall be calculated by applying the sum of the employer normal cost rate and the past service rate to the sum total of the base salaries paid to members in the system, including any adjustments to contributions required by AS 14.25.173(a). The employer shall remit this amount to the administrator in accordance with AS 14.25.065 .

(b) The employer contribution rate may not be less than the rate required, after subtracting the member contribution rate, to fully fund the actuarially calculated benefits expected to be earned by active members during a fiscal year.

(c) Each employer of a retired teacher rehired under the authority of AS 14.20.135 shall make contributions to the unfunded liability of the plan on behalf of that retired teacher at the rate that the employer is making contributions to the unfunded liability of the plan for other teachers.

(d) Employer contributions shall be separately computed for benefits provided by AS 14.25.168 and shall be deposited in the Alaska retiree health care trust established under AS 39.30.097 (a).

(e) In (a) of this section,

(1) "employer normal cost rate" means the percentage of compensation of all active members in the system that, when combined with the member contribution rate of active members in the plan, is sufficient to provide the benefits that are expected to be credited with respect to service during the year beginning after the last valuation date; this percentage is uniformly determined for all employers and is applicable to each employer;

(2) "past service rate" means the percentage of compensation of all active members in the system necessary to provide the annual amount required to amortize the unfunded obligations of the employers for benefits earned by members in the plan as of the date of the last actuarial valuation over a period not to exceed the maximum period allowed by generally accepted accounting principles of the Governmental Accounting Standards Board; this percentage is uniformly determined for all employers and is applicable to each employer.

All content © 2008 by Touch N' Go/Bright Solutions, Inc.

Note to HTML Version:

This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful.