(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.
