(a) If the contributions are not transmitted to the commissioner of administration within the prescribed time limit, the commissioner may grant an extension. If the political subdivision or public organization is in default at the end of the extension, participation in the plan is terminated, and it shall be sent notice of termination.
(b) All employees of the terminating employer whose contributions have not been refunded, regardless of their employment status at the date of termination, shall be considered fully vested in their adjusted accrued retirement benefits as of the date of termination of the employer.(c)[Repealed, Sec. 116(a) ch 20 SLA 2007].(d) Each employee of a terminating employer must, within 60 days of the employer’s termination of participation, inform the administrator, in writing, whether the employee wishes to obtain a refund or a vested benefit.(e) Each employee who elects to obtain a refund shall receive a refund of the balance, determined as of the date of the employer’s termination of participation, of the employee contribution account. The vesting in accrued benefits for each employee who elects to receive a refund is voided upon receipt of the refund and corresponding credited service may not be reinstated under Alaska Stat. § 39.35.095 – 39.35.680. A partial refund may not be allowed under this section.(f)[Repealed, Sec. 116(a) ch 20 SLA 2007].(g)[Repealed, Sec. 24 ch 13 SLA 2008].(h)[Repealed, Sec. 116(a) ch 20 SLA 2007].(i)[Repealed, Sec. 24 ch 13 SLA 2008].(j)[Repealed, Sec. 24 ch 13 SLA 2008].(k) Termination of an employer’s participation in the plan does not bar future participation in the system by that employer if the employer is current with payments on amounts due under Alaska Stat. § 39.35.625. If a previously terminated employer returns to the system, the employer may only participate in the plan established under Alaska Stat. § 39.35.700 – 39.35.990. Employees may be credited under Alaska Stat. § 39.35.700 – 39.35.990 only with service subsequent to the date of return.
