2 AAC 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.
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
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