NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE DEPARTMENT OF ADMINISTRATION, DIVISION OF RETIREMENT AND BENEFITS The Division of Retirement and Benefits proposes to adopt regulation changes in Title 2, Chapter 36 of the Alaska Administrative Code, dealing with the operations of the Teachers’ Retirement System (TRS), including the following: 2 AAC 36.021(a) will be amended to eliminate the term “forms” from the employer requirement to notify the TRS of employment or termination of employees. This change reflects the change from paper forms to electronic notification. 2 AAC 36.023(d) will be amended to clarify the term “extraordinary circumstances” for an employee who has missed the deadline to file for disability benefits and wishes to apply for a waiver of the deadline by the plan administrator. 2 AAC 36.182, which allows for additional voluntary contributions to be made to the TRS defined contribution plan, will be repealed. Internal Revenue Code determinations do not allow additional voluntary contributions. 2 AAC 36.187, which allowed employers to make contributions to a defined contribution employee’s individual account until December 31st of the year in which the employee died will be repealed. Recent legislation established an Occupational Disability and Death trust fund to which contributions can be made on behalf of the survivor of the deceased employee until the deceased employee would have qualified for normal retirement. 2 AAC 36.189 will be a new section clarifying that a bonus or salary increase paid to an employee as an incentive to retire will not be included in the calculation of the employee salary for retirement calculation purposes. 2 AAC 36.225 will be a new section clarifying that an actuarial adjustment applied to a retirement benefit for an underpayment or overpayment of benefits ceases at the retiree’s death. 2 AAC 36.236 which defined a teacher shortage for the Retiree Return to Work Program will be repealed. The Retiree Return to Work Program sunset on July 1, 2009. 2 AAC 36.237 setting out the process for an employer to participate in the Retiree Return to Work program will be repealed. The Retiree Return to Work program sunset on July 1, 2009. 2 AAC 36.252 will be a new section designating valid beneficiary form for the TRS Defined Contribution Plan. 2 AAC 36.257 will be amended to clarify that the section which addresses qualified domestic relations orders applies to employees who are members of the defined benefit plan.
2 AAC 36.259 is a new section clarifying that the requirements for an acceptable qualified domestic relations order as it applied to an employee who is a member of the TRS Defined Contribution Plan. 2 AAC 36.835 which allowed for a portion of an employee contribution account to be assigned to an alternate payee if the employee determined to refund contributions rather than receive the lifetime monthly benefit is repealed. The employee and the alternate payee are now required to return to the court for an amended qualified domestic relations order. 2 AAC 36.890 will be amended to clarify that employers may make contributions to the TRS for 120 days pending issuance of a valid teaching certificate. Once the certificate is issued, membership is effective the effective date of the certificate. Any contributions received for time worked for which no valid certificate is in effect will be returned to the employer and any service accrued for that period of time will be removed from the member account. You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to Kathy Lea, Division of Retirement of Benefits at P.O. Box 110203, Juneau, Alaska 99811-0203 or kathy.lea@alaska.gov. The comments must be received no later than 5:00 p.m. on August 27, 2009. For a copy of the proposed regulation changes, contact Kathy Lea, Division of Retirement of Benefits at P.O. Box 110203 Juneau, Alaska 99811-0203 or go to www.state.ak.us/drb. After the public comment period ends, the Division of Retirement and Benefits will either adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Statutory Authority: AS 14.25.003; AS 14.25.005 Statutes being Implemented, Interpreted, or Made Specific: AS 14.25.006; AS 14.25.022; AS 14.25.030; AS 14.25.035; AS 14.25.040; AS 14.25.050; As 14.25.120; AS 14.25.130; AS 14.25.155; AS 14.25.157; AS 14.25.160; AS 14.25.162; AS 14.25.164; AS 14.25.166; AS 14.25.167; AS 14.25.173; AS 14.25.175; AS 14.25.200; AS 14.25.220; AS 14.25.270; AS 14.25.420; AS 14.25.450; AS 14.25.460; AS 14.25.485; AS 14.25.487; AS14.25.590 Fiscal Information: No increased appropriations are anticipated.