Section 2 AAC 35.138 - Transfer into defined contribution plan by nonvested members of defined benefit plan(a) A nonvested member of the defined benefit plan (AS 39.35.095-39.35.680) who wishes to participate in the defined contribution plan (AS 39.35.700-39.35.990) under AS 39.35.940 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 39.35.940(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 39.35.940(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 39.35.990. 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 39.35.940(c) and in subsequent employer contributions under AS 39.35.790(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 amendment of the employer's participation agreement and through a resolution of the employer's governing body.(e) For purposes of this section and AS 39.35.940, "membership service" means service with a participating employer under AS 39.35.095-39.35.680 for which contributions have been paid and does not include any service for which reinstatement indebtedness has not been fully paid.Eff. 6/22/2006, Register 179; am 9/13/2006, Register 180Authority:AS 39.35.003
AS 39.35.710
AS 39.35.780
AS 39.35.790
AS 39.35.940