(a) Upon subsequent
retirement after a period of reemployment in a PERS covered position,
retirement benefits are recalculated under this section for those members who
were first enrolled in PERS before July 1, 1977. The recalculation shall
combine all periods of employment, and shall use the average of the highest
three consecutive year's earnings over the member's entire career. The
appropriate percentage specified under
AS
39.35.370(c) are applied to
the member's entire credited service for the calculation of the subsequent
retirement benefit amount.
(b) The
subsequent retirement benefit becomes effective under
AS
39.35.370(e), and the
effective date of a subsequent retirement benefit supercedes former retirement
effective dates.
(c) On subsequent
retirement after a period of reemployment, a member may elect any of the
retirement options for which the member qualifies. All future benefits are paid
based on that option regardless of the benefit option initially elected on
previous retirement segments.
(d) A
member who was receiving a reduced early retirement benefit is indebted to the
system for benefits received from the date of early retirement through the date
of reemployment or through the end of the month in which the member becomes 55
years of age whichever is sooner. The member's base benefit as calculated under
AS
39.35.370 will be actuarially reduced before
calculation of final benefits under
AS
39.35.450 or former
AS
39.35.460.
(e) If the member had previously selected a
level income option (LIO),
(1) for members who
returned to work before age 65, an actuarial adjustment shall be made to reduce
future benefits paid; the adjustment is the difference of the amount that was
paid under the LIO and the amount that would have been paid had the member
elected a normal or early retirement benefit;
(2) for members who returned to work after
age 65, an actuarial adjustment shall be made to adjust future benefits paid;
the adjustment is based on the difference of (X) the amount that was paid
before age 65 under the LIO less the amount that would have been paid had the
member elected a normal or early retirement benefit and (Y) the amount the
member would have been paid from age 65 to the date of reemployment if the
member elected a normal or early benefit less the amount the member received
during that time.
(f)
Interest from the date of the previous retirement through the end of the month
preceding the subsequent retirement is added to any indebtedness owed at the
time of the previous retirement. Former retirees may make payments on
indebtedness before the subsequent retirement effective date or may elect to
have the indebtedness cancelled by accepting an actuarially reduced
benefit.
(g) PRPA monetary amounts
awarded during one or more previous retirement segments are reinstated upon
subsequent retirement. The percentages previously granted will not be applied
to the new base benefit amount. The subsequent retirement date becomes the
beginning date for future PRPAs.
(h) The Alaska cost-of-living allowance
(COLA) is based on the recalculated base benefit.
former
AS
39.35.460
