Alaska Statutes: AS 39.35.620. Termination of Participation.

Alaska Statutes. Title 39. Public Officers and Employees Chapter 35. Public Employees' Retirement System of Alaska Section 620. Termination of Participation.

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AS 39.35.620. Termination of Participation.

(a) If the contributions are not transmitted to the commissioner of administration within the prescribed time limit, the commissioner may grant an extension. If the political subdivision or public organization is in default at the end of the extension, participation in the plan is terminated, and it shall be sent notice of termination.
(b) All employees of the terminating employer whose contributions have not been refunded, regardless of their employment status at the date of termination, shall be considered fully vested in their adjusted accrued retirement benefits as of the date of termination of the employer.
(c) [Repealed, Sec. 116(a) ch 20 SLA 2007].
(d) Each employee of a terminating employer must, within 60 days of the employer's termination of participation, inform the administrator, in writing, whether the employee wishes to obtain a refund or a vested benefit.
(e) Each employee who elects to obtain a refund shall receive a refund of the balance, determined as of the date of the employer's termination of participation, of the employee contribution account. The vesting in accrued benefits for each employee who elects to receive a refund is voided upon receipt of the refund and corresponding credited service may not be reinstated under AS 39.35.095 - 39.35.680. A partial refund may not be allowed under this section.
(f) [Repealed, Sec. 116(a) ch 20 SLA 2007].
(g) After all of the employees of the terminating employer have either received refunds or have been vested in their accrued benefits, the remaining funds in the employer contribution account shall be refunded to the employer and the employer contribution account shall be closed.
(h) [Repealed, Sec. 116(a) ch 20 SLA 2007].
(i) An employer terminating participation in the plan shall pay termination costs determined by the administrator, or enter into a payment plan acceptable to the administrator, within 60 days after the employer receives notice of the cost. Termination costs not paid within the prescribed time limit or in accordance with the approved payment plan shall be collected by the administrator in accordance with AS 39.35.610 (b). Termination of participation by an employer in the plan does not bar future participation by the employer under AS 39.35.700 - 39.35.990 if the employer has paid in full its prior termination costs.
(j) A political subdivision or public organization being terminated from the plan shall pay the cost associated with obtaining a termination cost study associated with the employer's termination.

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