Section 2.35.235. Calculation of termination costs.

	(a)  An employer that proposes to terminate coverage of a department, group, or other classification of employees under AS 39.35.615 or 39.35.957, or terminate participation of the employer under AS 39.35.620 or 39.35.958, must have a termination study completed by the plan actuary to determine the actuarial cost to the employer for future benefits due employees whose coverage is terminated. The employer shall pay the termination costs determined by the study either in a lump sum or under a payment plan acceptable to the administrator. The employer shall pay the cost of the study.  
	(b)  In addition to the costs calculated in (a) of this section, an employer that proposes to terminate coverage of a department, group, or other classification of employees under AS 39.35.615 or 39.35.957. or termination of participation of the employer under AS 39.35.620 or 39.35.958, is required to pay to the plan until the past service liability of the plan is extinguished an amount calculated by applying the current past service rate adopted by the board to salaries of the terminated employees as required by AS 39.35.625(a). This payment shall be made each payroll period or the employer may enter into a payment plan acceptable to the administrator for each fiscal year.  
	(c)  Interest as provided under AS 39.35.610(a) is applied to the termination costs if an employer defaults in the payments under (a) or (b) of this section.  

Authorities

39.35.003;39.35.615;39.35.620;39.35.625;39.35.957;39.35.958

Notes

Authority

AS 39.35.003 AS 39.35.615 AS 39.35.620 AS 39.35.625 AS 39.35.957 AS 39.35.958

History

Eff. 1/13/2010, Register 193