 September | VOLUME #121
 To assist our employers in implementing the new GASB standards, the Division
has created a GASB
resource webpage, where you will find information related to the State of
Alaska’s release of the GASB No. 68 – Allocation of the Net Pension Liability
(NPL), and how the State will
report their share of the NPL.
You will also find a DRAFT version of the two schedules specified in the AICPA
SLGEP Pension Whitepaper Series titled, "Governmental
Employer Participation in Cost-Sharing Multiple-Employer Plans: Issues Related
to Information for Employer Reporting":
PERS
GASB 68 for Employers
TRS
GASB 68 for Employers
These are DRAFT schedules and are subject to change up until the final
audit report is issued. The Division will keep you updated to any significant
changes to the schedules. Please use these, but recognize that numbers are
subject to change.
The State has taken the position that there is not a special funding
situation, which is explained in the legal
opinion on the GASB webpage. Please read the legal opinion and also provide
it to your auditors.
In order to prepare the allocation of employer contributions, you will
notice that each employer has two lines of information to properly report your
allocation of the net pension liability (NPL), deferred inflows and outflows,
and the pension expense. The first line represents your allocation based on
your actual contributions. The second line represents the allocation of the net
pension liability based on the additional non-employer contribution. Both lines
must be added to calculate your reportable NPL, deferred inflows and outflows,
and pension expense amounts.
The first set of schedules is the “Schedule of Employer Allocations”. This
schedule reflects each employer’s allocation percentage. As noted above, you
must combine both lines to report the proper allocation percentage.
The second set of schedules is the “Schedule of Pension Amounts by Employer”.
This schedule reflects the July 1, 2014 (beginning) as well as the June 30,
2015 (ending) NPL balances to report on your financial statements. The
beginning of year (like a prior period adjustment) balance is in the first
column, and the end of year, June 30, 2015 NPL is in the second column.
Keep in mind that the amounts being reported are one year prior. The June
30, 2014 actuarial valuation NPL is reported as the June 30, 2015 financial
statement NPL.
The June 30, 2013 actuarial valuation NPL is the July 1, 2014 beginning
balance for Fiscal Year 2015.
Additional information on recording the transaction (journal entry examples)
and foot note disclosures will be released next week.
If you have questions, please contact Kevin Worley so the Division can
develop an FAQ for all employers.
Thank you for your patience as we continue to work through
the GASB 68 process, and please check back frequently on the Division’s GASB webpage
for more information.
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 The
Division of Retirement and Benefits (Division) has contracted with Empower
Retirement Services to provide divorce and dissolution document review for participants
of the State of Alaska Defined Contribution Plan accounts commencing on
September 8, 2015. The Defined Contribution Plan accounts include the following
retirement accounts: Public Employees’ Retirement System (PERS) Tier IV,
Teachers’ Retirement System (TRS) Tier III, Supplemental Annuity Plan (SBS),
and the Deferred Compensation Plan (DCP).
Empower
Retirement will be reviewing all Qualified Domestic Relations Orders (QDROs)
for acceptance and divorce/dissolution documents for no attachment
determinations on Defined Contribution Plan accounts. They will be reviewing
against requirements in Alaska Statute, regulation and the plan documents as
applicable. Beginning September 8, 2015, please send all divorce and dissolution
documents, including draft and final QDROs on Defined Contribution Plan
accounts, to Empower Retirement for review:
Regular
Mail
Empower
Retirement
PO
Box 173764
Denver, CO 80217-3764
Express Mail
Empower Retirement
8515 E. Orchard Road
Greenwood Village, CO 80111
Phone: (866) 360-1192, option 1
Fax: (866) 745-5766
The
Division of Retirement and Benefits will continue to review divorce and
dissolution documents, including QDROs, for members of the State of Alaska
Defined Benefit Plans. The Defined
Benefit Plan accounts include PERS Tiers I, II, and III and TRS Tiers I and
II. Please send divorce and dissolution
documents, including draft and final QDROS for Defined Benefits Plan accounts
to:
Division of Retirement and Benefits
PO Box 110203
Juneau, AK 99801-0203
(800) 821-2251
Some
participants of a Defined Contribution Plan will also be a member of a Defined
Benefit Plan. Those individuals must follow the instructions above to provide
divorce/dissolution documentation for review to both the Division and Empower
Retirement upon divorce/dissolution. Empower Retirement and the Division
require court certified copies of divorce/dissolution documents. A court
certified copy is signed or stamped by the judge or other court official and
has an original stamp or seal from the clerk of the court stating that the
order is a certified copy.
Neither
the Division nor Empower Retirement provides valuation calculation services; if
valuation calculations are needed, an independent actuary or CPA must be
retained. The Division can provide benefit information as needed for the
calculations. To request benefit information for both Defined Benefit Plan and
Defined Contribution Plan accounts upon divorce or dissolution, continue to
contact the Division of Retirement and Benefits. Please allow up to 30 days for
all requests for this type of information.
The Division has updated
the Divorce and Dissolution Information Packet which includes sample QDROs for
the Defined Benefit Plans to assist in the drafting of QDROs that are
acceptable to all parties and meet all Division requirements. The packet is available on our website or
upon request.
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 There will be a 90-day free look period for the Managed
Account portion of Reality Investing Advisory Services, offered
by Advised Assets Group, LLC (AAG), a federally registered investment adviser.
This free look period begins on October 1, 2015 and ends on December
31, 2015, and is available strictly for new enrollees in the Managed Account Service.
Members can enroll in the Managed Account Service from their State of Alaska
account online.
Learn more about the Managed Account Free Look Period...
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 Employees are advised of excess salary limitation on the
Public Employees' Retirement System and Teachers’ Retirement System defined
benefit plans set by the Internal Revenue Service (IRS) for each year when
reporting salaries to the plans. 26 U.S.C. 401(a)(17) defines the maximum
salary requirements. The maximum for contribution reporting for 2015 is $265,000.
Contributions from employee accounts must stop once the maximum salary level
has been reached. Excess contributions cannot be accepted by the plans and will
result in a refund to members through adjustments via the payroll process.
If an employer determines a member will likely exceed the
salary limits for the year, they should inform the member. Ceasing
contributions to the PERS and TRS will increase members' taxable income for the
year.
The Division is currently reviewing member
accounts to identify any members who may have exceeded the limits in past
years. Members identified in this process will be refunded any excess
contributions taken in years past with interest. The refund represents taxable
income and employees will be issued a Form 1099 for the tax year in which the
refund and interest are received.
You
can find the salary limits for current and prior years for PERS and TRS on our website.
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