Alaska Administrative Code › Title 2 - Administration › Chapter 37 - Judicial, Elected Public Officers, and National Guard/Naval Militia Retirement Systems and Employee Benefit Systems › Article 3 - Supplemental Benefits System › 2 AAC 37.180 - Annuity plan operations

Current through May 31, 2024
(a) The
				administrator shall establish the supplemental annuity trust fund as a separate
				trust fund of the supplemental benefits system. The assets of the individual
				employee annuity accounts must be deposited and held in the fund for the
				exclusive benefit of the participating employees or their
				beneficiaries.
(b) The Alaska
				Retirement Management Board will adopt a written statement of goals and
				objectives for the supplemental annuity trust fund. The statement will include
				specific investment performance objectives and the time period over which they
				are to be realized. The statement will be reviewed and modified as necessary,
				and at least annually.
(c) The
				administrator shall contract with an independent firm of certified public
				accountants to conduct an annual audit of the system, its accounts, and the
				supplemental annuity trust fund.
(d) If contributions are posted to an
				individual's annuity account after the commencement date of an annuity benefit
				and if the contributions do not result from the individual's employment
				subsequent to the commencement date, the administrator shall refund the
				contributions to the individual in a lump sum.
(e) Investment income will be posted monthly
				to the individual annuity accounts. Investment income will continue to be
				posted to the expected date of initiation of payment.
(f) The supplemental benefits system will not
				initiate payment on an individual annuity account balance of less than
				$5.
(g) The employer shall transmit
				to the administrator records concerning an employee's period of service, date
				of birth, compensation, entrance into service, death, withdrawal and other data
				necessary for the proper and effective operation of the system not later than
				10 days of the date of occurrence or the first day of the payroll period
				occurring closest to the event, whichever is earlier.
(h) The administrator may perform an audit,
				review, or assessment of the records of the employer to ensure compliance with
				the statutes and regulations of the public employees' retirement system and to
				confirm the accuracy of the information reported by the employer to the
				plan.
(i) An audit, review or
				assessment of the employer records to determine an employer's compliance with
				the plan provisions shall include a desk audit, a field audit, or
				both.
(j) In conducting an audit,
				review or assessment of the employer records, the employer shall allow the
				administrator or designee access to original records documenting personnel
				hiring and employment practices.
(k) Following the audit, review or assessment
				of the employer records, the employer will be provided with written preliminary
				findings. The preliminary findings will identify inaccuracies and issues to be
				resolved to maintain compliance with plan provisions. Not later than 30 days of
				the date of the receipt of the preliminary findings the employer shall submit
				additional documentation for consideration or to respond to the preliminary
				findings.
(l) The final audit will
				include audit or review findings and will be provided to the employer not later
				than 60 days after consideration of any documentation or response submitted
				under (k) of this section.
(m) In
				this section, unless the context otherwise requires,
(1) "audit" means the process of obtaining
				competent evidentiary material about employer records through inspection,
				observation, inquiry, and confirmation sufficient to support a reasonable basis
				for determining the employer's compliance with the legal requirements of the
				supplemental benefits system.
(2)
				"desk audit" means an audit of an employer's records conducted by the
				administrator or designee based upon an examination of an employer's records
				without an onsite visit to the location of the employer's business
				records;
(3) "field audit" means an
				audit of an employer conducted by the administrator or designee based upon an
				examination of an employer's records with an on-site visit to the location of
				the employer's business records.