Section 2 AAC 37.180 - Annuity plan operations(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.In effect before 11/7/85, Register 99; am 11/16/90, Register 118; am 5/3/91, Register 118; em am 5/3/91 - 10/28/91, Register 118; am 1/31/2017, Register 221, April 2017As of Register 175 (October 2005), changes were made to 2 AAC 37.180 by the regulations attorney to recognize the establishment of the Alaska Retirement Management Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board. The changes were made by the regulations attorney in accordance with ch. 9, FSSLA 2005 and AS 44.62.125(b)(6).
Authority:AS 39.30.154
AS 39.30.155
AS 39.30.160