Section 2.35.321. Calculation of early and LIO retirement benefits after reemployment.

	(a)  If a member has elected either a reduced early retirement benefit or a level income option (LIO) and then returns to work in a PERS designated position, retirement benefits are suspended during the period of reemployment, and recalculated upon subsequent retirement under to this section.  
	(b)  Effective the first day following termination of the period of reemployment, the initial benefit is reinstated with the same options and in the same amount as immediately preceding its suspension; and an adjustment will be made to the initial retirement benefit to reimburse the retiree for the portion of benefits missed during the period of reemployment. The adjustments are retroactive to the effective date of the subsequent retirement benefit under AS 39.35.370(c), and an additional benefit is calculated based on the option elected for the new segment, the supplementary credited service during the period of reemployment, the earnings during the period of reemployment, and the appropriate percentage specified by AS 39.35.370(e).  
	(c)  For members who elected an early retirement benefit, the total adjustment for benefits missed during the period of reemployment equals the difference between the early base benefit that the member was receiving before returning to work and the normal benefit that the member would have received had the member been eligible for normal benefits. The total adjustment will then be actuarially prorated and distributed to the member monthly.  
	(d)  For members who elected a LIO, the total adjustment for benefits missed during the period of reemployment equals the difference between the LIO base benefit that the member was receiving before returning to work and the normal benefit that the member would have received had the member elected the normal option. The total adjustment amount will then be actuarially prorated and distributed to the member monthly. This adjustment does not apply if the member is age 65 or older on returning to work.  

Authorities

39.35.003;39.35.150

Notes

Authority

AS 39.35.003 AS 39.35.150 Editor's note: Effective 7/20/2006, Register 179, the Department of Administration readopted 2 AAC 35.321, without change, to affirm the validity of that section following statutory amendments made in ch. 9, FSSLA 2005. Chapter 9, FSSLA 2005 eliminated the Public Employees' Retirement Board, and largely transferred the board's authority to adopt regulations in 2 AAC 35 to the commissioner of administration.

History

Eff. 2/23/2001, Register 159; readopt 7/20/2006, Register 179

References

2.35.321;2.35