(a) An employee shall make contributions to the plan based on compensation including a cost-of-living differential.
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(b) The amount of a cost-of-living differential may not be included in the employee’s compensation for purposes of calculating benefits paid under Alaska Stat. § 39.35.095 – 39.35.680 unless the employee has received a cost-of-living differential for at least 50 percent of the employee’s credited service.(c) When an employee receives a benefit, and if the employee’s compensation for purposes of calculating the benefit does not include a cost-of-living differential, then the administrator shall refund to the employee the amount of contributions the employee made based on the differential.(d) In this section, “cost-of-living differential” means an adjustment to salary based on the cost of living in the geographic region where the employee works and includes a geographic pay differential under Alaska Stat. § 39.27.020.
