(a) The board shall

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Terms Used In Alaska Statutes 37.10.220

  • Amortization: Paying off a loan by regular installments.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • Fiduciary: A trustee, executor, or administrator.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Legislative session: That part of a chamber's daily session in which it considers legislative business (bills, resolutions, and actions related thereto).
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(1) hold regular and special meetings at the call of the chair or of at least five members; meetings are open to the public, and the board shall keep a full record of all its proceedings;
(2) after reviewing recommendations from the Department of Revenue, adopt investment policies for each of the funds entrusted to the board;
(3) determine the appropriate investment objectives for the defined benefit plans established under the teachers’ retirement system under Alaska Stat. Chapter 14.25 and the public employees’ retirement system under Alaska Stat. Chapter 39.35;
(4) assist in prescribing the policies for the proper operation of the systems and take other actions necessary to carry out the intent and purpose of the systems in accordance with AS 37.10.210 – 37.10.390;
(5) provide a range of investment options and establish the rules by which participants can direct their investments among those options with respect to accounts established under

(A) AS 14.25.340 – 14.25.350 (teachers’ retirement system defined contribution individual accounts);
(B) AS 39.30.150 – 39.30.180 (State of Alaska Supplementary Annuity Plan);
(C) AS 39.35.730 – 39.35.750 (public employees’ retirement system defined contribution individual accounts); and
(D) AS 39.45.010 – 39.45.060 (public employees’ deferred compensation program);
(6) establish the rate of interest that shall be annually credited to each member’s individual contribution account in accordance with AS 14.25.145 and AS 39.35.100 and the rate of interest that shall be annually credited to each member’s account in the health reimbursement arrangement plan under AS 39.30.300 –39.30.495; the rate of interest shall be adopted on the basis of the probable effective rate of interest on a long-term basis, and the rate may be changed from time to time;
(7) adopt a contribution surcharge as necessary under AS 39.35.160(c);
(8) coordinate with the retirement system administrator to have an annual actuarial valuation of each retirement system prepared to determine system assets, accrued liabilities, and funding ratios and to certify to the appropriate budgetary authority of each employer in the system

(A) an appropriate contribution rate for normal costs; and
(B) an appropriate contribution rate for liquidating any past service liability; in this subparagraph, the appropriate contribution rate for liquidating the past service liability of the defined benefit retirement plan under AS 14.25.009 – 14.25.220 or the past service liability of the defined benefit retirement plan under AS 39.35.095 – 39.35.680 must be determined by a level percent of pay method based on amortization of the past service liability for a closed term of 25 years;
(9) review actuarial assumptions prepared and certified by a member of the American Academy of Actuaries and conduct experience analyses of the retirement systems not less than once every four years, except for health cost assumptions, which shall be reviewed annually; the results of all actuarial assumptions prepared under this paragraph shall be reviewed and certified by a second member of the American Academy of Actuaries before presentation to the board;
(10) contract for an independent audit of the state‘s actuary not less than once every four years;
(11) contract for an independent audit of the state’s performance consultant not less than once every four years;
(12) obtain an external performance review to evaluate the investment policies of each fund entrusted to the board and report the results of the review to the appropriate fund fiduciary;
(13) by the first day of each regular legislative session, report to the governor, the legislature, and the individual employers participating in the state’s retirement systems on the financial condition of the systems in regard to

(A) the valuation of trust fund assets and liabilities;
(B) current investment policies adopted by the board;
(C) a summary of assets held in trust listed by the categories of investment;
(D) the income and expenditures for the previous fiscal year;
(E) the return projections for the next calendar year;
(F) one-year, three-year, five-year, and 10-year investment performance for each of the funds entrusted to the board; and
(G) other statistical data necessary for a proper understanding of the financial status of the systems;
(14) submit quarterly updates of the investment performance reports to the Legislative Budget and Audit Committee;
(15) develop an annual operating budget; and
(16) administer pension forfeitures required under AS 37.10.310 using the procedures of Alaska Stat. Chapter 44.62 (Administrative Procedure Act).
(b) The board may

(1) employ outside investment advisors to review investment policies;
(2) enter into an agreement with the fiduciary of another state fund in order to assume the management and investment of those assets;
(3) contract for other services necessary to execute the board’s powers and duties;
(4) enter into confidentiality agreements that would exempt records from Alaska Stat. § 40.25.110 and 40.25.120 if the records contain information that could affect the value of investment by the board or that could impair the ability of the board to acquire, maintain, or dispose of investments.
(c) Expenses for the board and the operations of the board shall be paid from the retirement fund.
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