(a) An employee who is eligible to purchase credited service under Alaska Stat. § 14.25.047 or 14.25.048, a member who is eligible to purchase credited service under Alaska Stat. § 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.100, or 14.25.107, or a teacher who is eligible to purchase credited service under Alaska Stat. § 14.20.345, Alaska Stat. § 14.25.050, or 14.25.105, in lieu of making payments directly to the plan, may elect to have the member’s employer make payments as provided in this section.
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Terms Used In Alaska Statutes 14.25.075

  • 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.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • 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
(b) A member may elect to have the employer make payments for all or any portion of the amounts payable for the member’s purchase of credited service through a salary reduction program as follows:

(1) the amounts paid under a salary reduction program are in lieu of contributions by the member making the election; the electing member’s salary or other compensation shall be reduced by the amount paid by the employer under this subsection;
(2) the member shall make an irrevocable election under this subsection to purchase credited service as permitted in Alaska Stat. § 14.20.345, Alaska Stat. § 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.100, 14.25.105, or 14.25.107 before the member’s termination of employment; the irrevocable election must specify the number of payroll periods that deductions will be made from the member’s compensation and the dollar amount of deductions for each payroll period during the specified number of payroll periods; the deductions made under this paragraph cease upon the earlier of the member’s termination of employment with the employer or the member’s death; amounts paid by an employer under (f) of this section may not be applied toward the payment of the dollar amount of the deductions representing the portion of the credited service that is being purchased by the member through payroll deduction in accordance with the member’s irrevocable election under this paragraph;
(3) amounts paid by an employer under this subsection shall be treated as employer contributions for the purpose of determining tax treatment under 26 U.S.C. (Internal Revenue Code); the amounts paid by the employer under this section may not be included in the member’s gross income for income tax purposes until those amounts are distributed by refund or retirement benefit payments.
(c) Unless otherwise provided, member contributions paid by the employer under this section are treated for all other purposes under the plan in the same manner and to the same extent as member contributions that are not paid by an employer under this section and Alaska Stat. § 14.25.050. The plan may assess interest or administrative charges attributable to any salary reduction election made under this section. The interest or administrative charges shall be added to the contribution that is made to the plan by the member each payroll period, and that is paid by the employer. The interest or administrative charges may not be treated as member contributions for any purposes under Alaska Stat. § 14.25.009 – 14.25.220, and a member or a member’s beneficiary does not have a right to the return of the interest or administrative charges under any other provision of this section. Interest assessed under this section shall be at the rate specified by regulations adopted by the administrator.
(d) For plan fiscal years beginning on or after July 1, 2001, the requirements of Alaska Stat. § 14.25.110(k) may not be applied to reduce the amount of credited service that may be purchased under this section by a member who first becomes an employee of the plan before July 1, 2001, to an amount that is less than the amount of credited service allowed to be purchased with the application of any of the limits prescribed in 26 U.S.C. § 415.
(e) Contributions to the plan to purchase credited service under this section do not qualify for treatment under this section if recognition of that service would cause a member to receive a retirement benefit for the same service from the plan and from one or more other retirement plans or systems of the state.
(f) The administrator may accept rollover contributions from a member. Contributions made under this subsection may not be applied to purchase service being paid under (b) of this section. A rollover contribution as described in this subsection shall be treated as employer contributions for the purpose of determining tax treatment under the Internal Revenue Code and may be made by any one or a combination of the following methods:

(1) subject to the limitations prescribed in 26 U.S.C. § 402(c), accepting eligible rollover distributions directly from one or more eligible retirement plans as defined by 26 U.S.C. § 402(c)(8)(B);
(2) subject to the limitations prescribed in 26 U.S.C. § 403(b)(13), accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the member, on or after January 1, 2002, from a tax sheltered annuity described in 26 U.S.C. § 403(b);
(3) subject to the limitations prescribed in 26 U.S.C. § 457(e)(17), accepting direct trustee-to-trustee transfers of all or a portion of the accounts of the member, on or after January 1, 2002, from an eligible deferred compensation plan of a tax-exempt organization or a state or local government described in 26 U.S.C. § 457(b);
(4) accepting direct trustee-to-trustee transfer from an account established for the benefit of the member in Alaska Stat. § 39.30.150 – 39.30.180 (Alaska Supplemental Annuity Plan).
(g) Payments made under this section shall be applied to reduce the member’s outstanding indebtedness described in Alaska Stat. § 14.25.063 at the time that the contributions are received by the plan.
(h) If a member retires before all payments are made under this section, the plan shall calculate the member’s benefits based only on the payments actually made with respect to the credited service purchased.
(i) On satisfaction of the eligibility requirements of Alaska Stat. § 14.20.345, Alaska Stat. § 14.25.047, 14.25.048, 14.25.050, 14.25.060, 14.25.061, 14.25.100, 14.25.105, or 14.25.107, the requirements of this section, and the administrative filing requirements specified by the administrator, the plan shall adjust the member’s credited service history and add any additional service credits acquired.
(j) After an election is made under this section, the election is binding on and irrevocable for the member and the member’s employer during the member’s remaining period of current employment. After a member makes an irrevocable election under this section, the member does not have the option of choosing to receive the contributed amounts directly in cash.
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