2 AAC 36.098 - Transfer into defined contribution plan by nonvested members of defined benefit plan
(a) A nonvested member of the defined benefit
plan (AS
14.25.009-14.25.220) who wishes to
participate in the defined contribution plan (AS
14.25.310-14.25.590) under
AS
14.25.540 must make that election within 12
months of the effective date of the member's employer's election to participate
in the defined contribution plan. The member must also certify in writing to
the administrator that the member has carefully reviewed the information sent
to the member under
AS
14.25.540(h) and that the
member understands that the member had the right to review the decision to
transfer with a qualified employee of the division before the member made the
decision.
(b) A matching employer
contribution made on behalf of a member of the defined contribution plan under
AS
14.25.540(c) may not exceed
the limits set out in sec. 415(c) of the Internal Revenue Code (26 U.S.C.
415(c)) during the
applicable limitation year, as defined in
AS
14.25.590. If the matching employer
contribution would exceed the limits during the limitation year in which the
transfer occurs, the remaining amount of the matching employer contribution
shall be made in the next limitation year, if the limits would not be
exceeded.
(c) Membership service
previously earned in the defined benefit plan by a former member of that plan
who has elected to become a member of the defined contribution plan shall be
credited for purposes of determining vesting in the matching employer
contribution under
AS
14.25.540(c) and in
subsequent employer contributions under
AS
14.25.390(b).
(d) An employer participating in the defined
benefit plan that elects to consent to transfers of its nonvested employees in
that plan to the defined contribution plan must make that election through a
resolution of the employer's governing body.
(e) For purposes of this section and
AS
14.25.540, "membership service" means service
with a participating employer under
AS
14.25.009-14.25.220 for which contributions
have been paid and does not include any service for which reinstatement
indebtedness has not been fully paid.
Notes
Authority:AS 14.25.003
AS 14.25.350
AS 14.25.380
AS 14.25.390
AS 14.25.540
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