State of Alaska Division of Retirement & Benefits

1. State of AlaskaDivision of Retirement & Benefits

2. Employer On-Behalf/Legislative Relief Payments Employer On-Behalf/Legislative Relief Funding Employer relief is determined by applying the relief amount to the employees gross salary. Relief is the difference between the Actuarially Determined Rate and the Employer Effective Rate.

3. Employer On-Behalf/Legislative Relief Funding Fiscal Year 2010 Employer Legislative Relief Applied to payroll end dates staring July 1, 2009 through June 30, 2010. Payrolls for this period must be received by our office no later than July 31, 2010. For fiscal year 2011 the cutoff will be July 15, 2011to allow for a quicker turn around of the end of the year relief reporting to employers. The relief true-up will be completed in early August to adjust for any over or under usage of the legislative relief funding. Once complete the end of the year relief reporting will be sent to employers.

4. Employer On-Behalf/Legislative Relief Funding Fiscal year 2010 Public Employees’ Retirement System rates: Actuarially Determined Rate: 27.65% Employer Effective Rate: 22.00% Employer Legislative Relief: 5.65% Relief Pension: 3.60% Relief Healthcare: 2.05% The PERS fiscal year 2010 actuarially determined rate is found in the June 30, 2007 actuarial valuation report located at http://doa.alaska.gov/drb/pers/actuarial-valuation.html, page 3 of the report highlights.

5. Employer On-Behalf/Legislative Relief Funding Fiscal year 2010 Teachers’ Retirement System rates: Actuarially Determined Rate: 39.53% Employer Effective Rate: 12.56% Employer Legislative Relief: 26.97% Relief Pension: 15.06% Relief Healthcare: 11.91% The TRS fiscal year 2010 actuarially determined rate is found in the June 30, 2007 actuarial valuation report located at http://doa.alaska.gov/drb/trs/actuarial-valuation.html, page 3 of the report highlights.

6. Employer On-Behalf/Legislative Relief Funding Fiscal year 2011 Public Employees’ Retirement System rates: Actuarially Determined Rate: 27.96% Employer Effective Rate: 22.00% Employer Legislative Relief: 5.96% Relief Pension: 3.89% Relief Healthcare: 2.07% The PERS fiscal year 2011 actuarially determined rate is found in the June 30, 2008 actuarial valuation report located at http://doa.alaska.gov/drb/pers/actuarial-valuation.html, page 3 of the report highlights.

7. Employer On-Behalf/Legislative Relief Funding Fiscal year 2011 Teachers’ Retirement System rates: Actuarially Determined Rate: 38.56% Employer Effective Rate: 12.56% Employer Legislative Relief: 26.00% Relief Pension: 14.77% Relief Healthcare: 11.23% The TRS fiscal year 2011 actuarially determined rate is found in the June 30, 2008 actuarial valuation report located at http://doa.alaska.gov/drb/trs/actuarial-valuation.html, page 3 of the report highlights.

8. FY10 Employer Contribution Rates PERS/TRS DCRPlan – PERS Tier IV/TRS Tier III

9. FY 2010 HRA Amount **Per AS 39.30.370, a rate of 3.00% is applied to the average annual compensation of all employees of all employers in the TRS and PERS. The contribution amount is then converted to a per pay period, per employee contribution amount. Contributions to the employee's HRA account are required for every pay period in which the employee is enrolled in the DCR Plan, regardless of the compensation paid during the calendar year. By definition, the HRA cost is a dollar amount reflected in the table below: For full-time TRS members who are paid over a period of less than 12 months, the employer will calculate the amount due per pay period by dividing the annual amount by the number of scheduled payments. For example, for a full-time TRS member who receives nine monthly payments the employer contribution would be $188.86 per pay period ($1,699.71 annual cost divided by nine payments).

10. FY 2010 HRA Amount (cont.) For all school districts, please note, the prorated calculation of annual HRA contributions does not apply to PERS DCR Plan Non-certificated (classified) School Employees.  These employees are NOT eligible to elect the alternate option program (SB9).  Once the DRB PERS system is provided the Leave Without Pay (LWP) date for the last day worked for the school year, service is then turned off and HRA contributions are suspended for the summer break. For TRS part-time employees, the HRA rate is based on the contract percentage worked multiplied by the rate provided in the table above. For example, a 70% employee paid monthly would have a contribution to the HRA of $99.15 per pay period ($141.64 x 70%). For PERS part-time PERS employees, the employer contributes the PERS hourly amount for each hour the employee worked in each pay period until the employer has contributed the annual amount for the fiscal year, illustrated in the table below: FY 2010 HRA Amount (PERS part-time members) Hourly $1.09

11. FY 2010 HRA Amount (cont.) *** The Defined Benefit Unfunded Liability (DBUL) amount levied against the DCR Plan payroll is equal to the employer effective rate minus the DCR Plan total employer contributions. For example:

12. True-up Tab Names & Social Security Numbers were removed for privacy.

13. Selecting the True-up Tab

14. Adjustment Records

15. Control Tab before Trueup

16. Control Tab After Trueup

17. Summary Sheet The Trueup & DBUL off set each other here

18. Trueup Report after Submitting a Payroll

19. Employer eReporting Contacts If you have any questions, below is the name, phone number and email address of each employer's payroll processing point of contact with the Division, or you can contact Erika Burkhouse, Retirement & Benefits Specialist (payroll processing supervisor) directly at (907) 465-5715 or email her at erika.burkhouse@alaska.gov Employer #'s – 110, 111, 113, 117, 145, 180, 190, 228-298, 502-522, 701, 706, 722, 733, 736, 746Courtney Oliva, Retirement & Benefits Technician IIIPhone: (800) 821-2251 extension 5709courtney.oliva@alaska.gov Employer #'s – 102 through 160 and 173 (excluding 110, 111, 113, 117, & 145) Ellie Schroeder, Retirement & Benefits Technician III Phone: (800) 821-2251 extension 3862 eleanor.schroeder@alaska.gov Employer #'s – 161 through 227 (excluding 173, 180, 190) Charley Larson, Retirement & Benefits Technician III Phone: (800) 821-2251 extension 5714 charley.larson@alaska.gov Employer #'s – All TRS (excluding 701, 706, 722, 733, 736, 746)101, 501, 601, 901Linda Zagar, Retirement & Benefits Technician IIIPhone: (800) 821-2251 extension 3765 linda.zagar@alaska.gov The PERS/TRS Payroll Processing section group phone number is (907) 465-1444 and our email address is doa.drb.accountingsection@alaska.gov. Our group fax number is (907) 465-3291. The Summary Report faxes are to be sent to (907) 465-3364.