2 AAC 35.215 - Normal retirement benefit nonforfeitable

(a) For purposes of compliance with the Internal Revenue Code 401(a)(7), the normal retirement benefit calculated under AS 39.35.370 is nonforfeitable upon attainment of normal retirement age.

(b) Notwithstanding (a) of this section, a normal retirement benefit is subject to the provisions of AS 39.35, including AS 39.35.495 and 39.35.672.

(c) In the event of a full or partial termination of, or a complete discontinuance of employer contributions to the plan, the accrued benefits of the affected members under the plan are 100 percent vested and nonforfeitable to the extent funded and required by federal law.

(d) This section may not be construed as a reduction or limitation of rights previously existing, or as an indication that vested benefits would be forfeitable before the stated age is attained.

(e) In this section, "normal retirement age" means

(1) for a person hired on or after July 1, 1986, age 60 with the completion of at least five years of service, whichever is later;

(2) for a person hired before July 1, 1986, age 55 with the completion of at least five years of service, whichever is later.

Notes

2 AAC 35.215

Eff. 1/12/2013, Register 205

Authority:AS 39.35.003

AS 39.35.115

AS 39.35.370

AS 39.35.495

AS 39.35.672