(a) The commissioner of administration is authorized to prefund medical benefits provided by Alaska Stat. § 14.25.168, Alaska Stat. § 22.25.090, and Alaska Stat. § 39.35.535 by establishing an irrevocable trust that is exempt from federal income tax under 26 U.S.C. § 115 and subject to the applicable financial reporting, disclosure, and actuarial requirements of the Governmental Accounting Standards Board.
Terms Used In Alaska Statutes 39.30.097
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
Trustee: A person or institution holding and administering property in trust.
(b) The commissioner of administration is authorized to prefund medical benefits provided by Alaska Stat. § 14.25.480, Alaska Stat. § 39.30.300, and Alaska Stat. § 39.35.880 by establishing an irrevocable trust that is exempt from federal income tax under 26 U.S.C. § 115 and subject to the applicable financial reporting, disclosure, and actuarial requirements of the Governmental Accounting Standards Board.(c) The plans and assets of the Alaska retiree health care trusts shall be under the governance and investment authority of the Alaska Retirement Management Board, which shall serve as trustee of the trust as provided in Alaska Stat. § 37.10.210. The commissioner of administration or the commissioner’s designee shall serve as administrator of the Alaska retiree health care trusts.(d) All employer contributions, appropriations, earnings, and reserves for the payment of retiree medical obligations shall be credited to the retiree health care trusts. The prefunded amounts shall be available without fiscal year limitations for retiree medical benefits and administration costs. The amounts remaining in the trusts, if any, after retiree medical benefits and administration costs have been paid in any year shall be retained in the trusts for future payments until the satisfaction of all employer liabilities under the trusts for retiree medical benefits. All prefunded amounts shall be used solely for the payment of retiree medical benefits and administration costs and for no other purpose.(e) The assets of the Alaska retiree health care trusts may be pooled, for investment purposes, with assets of the retirement systems, so long as such assets are accounted for separately.
