Alaska Administrative Code › Title 15 - Revenue › Chapter 112 - Alaska Retirement Management Board › Article 4 - General Provisions › 15 AAC 112.810 - Health reimbursement plan rate computation

Current through May 31, 2024
(a) In accordance
				with AS
				39.30.370, the plan administrator shall
				establish an individual account within the fund for each member of the plan,
				consisting of employer contributions on behalf of the member and interest
				applied annually as determined in this section.
(b) The plan administrator shall establish
				within the fund an expense and reinstatement reserve account. The expense and
				reinstatement reserve account shall be funded exclusively from earnings of the
				investments of the fund. No employer contributions made on behalf of employees
				may be deposited in the expense and reinstatement reserve account.
(c) Inflation adjustments to restore account
				balances as provided in
				AS
				39.30.380 shall be funded out of the expense
				and reinstatement reserve account.
(d) All expenses of the plan shall be paid
				out of the expense and reinstatement reserve account, except to the extent
				expenses are paid from the state's general fund.
(e) No later than January 15 each year, the
				plan administrator shall (1) determine the earnings of the fund, reinstatement
				costs of the plan, and expenses of the plan for the prior fiscal year, and (2)
				transfer an amount from the earnings on investments in the fund in that prior
				fiscal year to the expense and reinstatement reserve account sufficient to
				bring the balance of the account equal to five times that fiscal year's
				expenses and reinstatement costs. Transfers to the expense and reinstatement
				reserve account may not exceed fund earnings of that fiscal year, and may not
				reduce individual account interest rates to a negative number.
(f) After required transfers to the expense
				and reinstatement reserve account, interest shall be calculated and applied
				annually to the member's individual account. The amount of interest applied is
				not guaranteed and may change upward or downward significantly from year to
				year based upon the calculation under (g) and (h) of this section, and may be
				negative so long as the amount results from investment losses.
(g) Interest for a fiscal year will be
				credited to a member's individual account no later than January 15 of the
				following year. Interest shall be applied at a rate determined by the plan
				administrator by
(1) calculating the amount
				of earnings or losses remaining after the expense and reinstatement reserve
				account transfer in (e) of this section;
(2) making adjustments as might be required
				based upon
(A) reports by the plan
				administrator, the state comptroller, or chief investment officer which may
				impact the value of the fund; and
(B) any other information, which, in the
				opinion of the plan administrator, the state comptroller, or chief investment
				officer, would be useful in determining the full and true value of the fund and
				accounts; and
(3)
				dividing the remaining earnings or losses by the sum of individual accounts
				eligible for interest at the end of the fiscal year.