A. 
As used in this chapter, a qualified domestic relations order, including a qualified child support domestic relations order, is an order or judgement under AS 25.24, in a format prescribed by the board, approved by a court of competent jurisdiction that:
1. 
Creates or recognizes the existence of an alternate payee's rights, or assigns to an alternate payee the right to receive a portion of the benefits payable to a member under this system and not the Employee Retirement Income Security Act (ERISA) 1974, or the Retirement Equity Act (REA) of 1984;
2. 
Sets out the name, social security number and current mailing address of the member and each alternate payee covered by the order;
3. 
Sets out the formula utilizing the member's final appropriate compensation (depending on the plan) at the date of separation/ divorce, multiplied by the number of years of service accumulated during the marriage while participating in the system, multiplied by two and one-half percent, multiplied by 50 percent for determining the maximum amount of benefits payable to each alternate payee;
4. 
Specifies the date of marriage and the date of separation/divorce;
5. 
Clearly identifies the Anchorage Police and Fire Retirement System and plan number as the retirement plan subject to the order;
6. 
Does not provide any type or form of benefit or any option not otherwise available under this chapter, including, but not limited to, payment of benefits to an alternate payee prior to the member's actual retirement;
7. 
Does not require payment of benefits to an alternate payee greater than the benefits otherwise payable to the member, as determined by their actuarial value;
8. 
Does not require payment to an alternate payee of benefits due another payee under an earlier valid qualified domestic relations order;
9. 
Does not provide that the alternate payee is a surviving spouse or a survivor at the death of the member;
10. 
Does not allow the alternate payee to designate a beneficiary;
11. 
Sets out that the portion of a disability retirement benefit payable to an alternate payee is determined in the same manner as for normal, early or deferred retirement, utilizing the formula described in this chapter.
12. 
Does not provide for payment of cost living adjustments for alternate payees receiving payments from Plan III of the retirement system;
13. 
Allows the establishment of a minimum payment amount to the alternate payee based upon the member's contributions and interest as a percentage of the period of marriage while the member participated in the system, limited to no greater than 50 percent of the contribution account. If the member dies prior to receipt by the alternate payee of benefits equal to his or her share of the contribution account as specified in the court order, the alternate payee shall continue to receive benefits until such time as the alternate payee's portion of the contribution account has been distributed. Thereafter, the survivorship benefits that were reduced shall be restored and paid in accordance with this chapter.
B. 
For the purpose of this section, an alternate payee is defined as an individual who is designated as the result of a domestic relations order to receive a direct payment of a portion of the member's benefits from the plan. The qualified domestic relations order is initiated by a divorce, dissolution order, judgment under AS 25.24, or an order approving a property settlement.
C. 
No retirement benefit paid to an alternate payee may exceed 50 percent of the actuarial value of the member's benefit, based on the period of the marriage, even if the divorce judgment or dissolution of marriage judgment awards the non-member spouse an amount greater than 50 percent of the benefits payable under this system. The 50 percent limitation shall not include benefits earned by a spouse whose benefit is not being divided when that spouse is also a member of the system.
D. 
At the time of the qualification of a domestic relations order, a separate record and file shall be established for an alternate payee which includes the benefit payable to the alternate payee and information showing the member's contribution account as of the date of divorce, if applicable in the order. The actual percentage shall be determined by the qualified domestic relations order. The board shall not be required to physically segregate the money from the corpus of the trust, but rather shall maintain a separate accounting in its official records.
E. 
An alternate payee shall not receive continued benefits from the system as of the date of the member's death occurring after the entry of the order and the initiation of distributing benefits under this system, excepting as provided for under the maximum or minimum payment provision in subsection A.13 above.
F. 
Upon the death of the alternate payee, the member, or the member's beneficiary, if any, shall be entitled to the total of all benefits otherwise payable under this system.
G. 
The board shall establish uniform procedures for determining the qualified status of domestic relations orders. Upon receipt of a domestic relations order of any kind, the board shall immediately notify the member of its receipt of the order and the procedures for determining whether the order is a qualified domestic relations order under the terms of this system. The director shall make this determination and implement all qualifying orders within a reasonable period of time. The director, upon advice by legal counsel, shall be authorized to intervene in any divorce or dissolution of marriage proceeding to clarify the applicability or qualification of a domestic relations order to this system.
H. 
The amounts payable to a member or a member's beneficiary and to any alternate payee under this section shall be adjusted in accordance with generally accepted accounting principles and actuarial assumptions so that the total value of the benefits paid remains unchanged, regardless of the qualified domestic relations order.
I. 
Enhanced benefits payable under this system shall not be available to an alternate payee whose rights were determined by order under the prior plan.
J. 
In the case of a QDRO entered after the effective date of this chapter, no enhanced benefit will be available to an alternate payee unless the enhanced benefit was approved by the board during the term of the marriage as established in the order.
K. 
The provisions of this section shall apply to all members of the system.
L. 
Enhanced benefits shall be subject to a QDRO as defined in this chapter. The alternate payee's enhanced benefit will be calculated by taking the years of marriage which occurred while participating in the system divided by the member's years of credited service. This number shall be multiplied by a percentage as determined by a court of competent jurisdiction, not to exceed 50 percent, which number shall then be multiplied by the amount of the enhanced benefit, the value of which shall be determined as of the date of the separation/divorce. No alternate payee may receive payment of the enhanced benefit until the member has separated from service and is in receipt of benefits from the system.
M. 
The board shall be authorized to alter the payment provisions in this section as required by state or federal law.
N. 
Child support domestic relations orders, when issued by a court of competent jurisdiction and in a manner consistent with law shall be enforceable in the same manner as a qualified domestic relations order.
O. 
In the case of a retired member, an active vested member, or a deferred vested member, that member may elect to pay domestic relations obligations in excess of the 50 percent limitation in subsection L of this section, by authorizing immediate distribution from the surplus benefit account of the sum which exceeds 50 percent. In order for such a distribution to occur, the alternate payee must waive payment, in a form satisfactory to the board, from that portion of the defined benefit which is represented by the lump sum distribution. In no circumstances can the alternate payee receive a payment which is in excess of 50 percent of the combined value of the member's accounts. Alternate payees shall not participate in the surplus benefit program.
(AO No. 2000-65, § 3, 4-18-2000; AO No. 2002-54, § 20, 3-19-2002)
A. 
It is the intention of the municipality and the board that the system remain at all times a qualified plan as that term is defined under the Internal Revenue Code.
B. 
Each participant's accrued benefit under the prior plan shall be deemed nonforfeitable (100 percent vested).
C. 
This section shall apply to Plans I, II and III.
(AO No. 2000-65, § 3, 4-18-2000; AO No. 2002-54, § 21, 3-19-2002)
A. 
This section shall apply to Plans I, II, and III.
B. 
Receipt of benefits where third persons are liable.
1. 
If on account of disability or death for which benefits are payable under this chapter, the member entitled to benefits believes that a third person other than the municipality or a fellow employee is liable for damages, the member need not elect whether to receive benefits under this chapter or to recover damages from the third person.
2. 
Acceptance of benefits under this chapter operates as an automatic assignment to the system of all rights of the member or of the personal representative of a deceased member to recover damages from the third person, unless the member or survivor commences an action against the third person within one year after the member's survivor's initial receipt of benefits.
3. 
The system under such an automatic assignment may either institute proceedings for the recovery of damages or may compromise with the third person, either without or after instituting an action.
4. 
An amount recovered by the system under an assignment, whether by action or compromise, shall be distributed as follows:
a. 
The system shall retain an amount equal to:
i. 
The expenses incurred by the system in respect to the action or compromise, including a reasonable attorney's fee;
ii. 
All benefits paid to the member or survivor by the system;
iii. 
The present value of all amounts payable later as benefits (present value to be computed from a schedule adopted by the board), as estimated by the board; the amounts so computed and estimated are to be retained by the system as a trust fund to pay benefits as they become due and to pay any final remaining sum to the person entitled to benefits or to the survivor;
b. 
The system shall pay any excess to the person entitled to benefits or to the survivor of that person.
5. 
If a member, the member's survivor where the system brings an action or settles a claim against the third person, the system shall pay the benefits required by this chapter.
6. 
If the member or survivor recovers damages from the third person, the member or survivor shall promptly repay to the system the total amounts paid by the system under subsection B.4a.i and ii, insofar as the recovery is sufficient after deducting all litigation costs and expenses. Any excess recovery by the member or survivor shall be credited against an amount payable by the system thereafter. The system is allocated a percentage of fault under AS 09.17.080 (Apportionment of Damages). The amount due the system under this subsection shall be reduced by an amount equal to the system's equitable share of damages assessed under AS 09.17.080(c).
7. 
If compromise with a third person is made by the member or survivor in an amount less than the total benefits to which the member or survivor would be entitled, the system is liable for the benefits stated in subsection B.5 of this section only if the compromise is made with the system's prior written approval.
8. 
Notice of the commencement of an action against a third party shall be given to the system and all interested parties within 30 days of the filing of that action.
9. 
The system's right of recovery as set forth herein is subordinate to any right of recovery by the municipality under the Alaska Worker's Compensation Act, AS 23.30.015.
C. 
Alienation, transfer or assignment of benefits. Neither a member's interest in the system, nor any benefit payable to a member, including enhanced benefits, may be subject to alienation, sale, transfer, assignment, pledge, encumbrance or charge of any kind, whether voluntary or involuntary, before received by the person entitled to the benefit, except as expressly provided under this chapter. This exemption shall also apply to garnishment, attachment and the operation of bankruptcy or insolvency law or any other process of law whatsoever except for qualified domestic relations orders and child support orders. Benefits paid under this plan shall be subject to levy under the Internal Revenue Code, to the extent provided by federal law.
D. 
Benefit payment to minors or guardians: If any member or beneficiary is a minor or is under any other legal disability, the retirement board shall have the power to withhold payment of benefits until the board is presented with proof satisfactory to the board of the appointment of a guardian. If the board becomes aware that any member or beneficiary is incapable of personally receiving and giving a valid receipt for any payment due under the system, the board shall cause notice to be given to that member or beneficiary of a hearing to determine whether said benefits should continue to be paid until the appointment of a guardian. During the pendency of any such hearing, however, the board may continue to pay benefits to the member or beneficiary and that such payment shall be a complete discharge of any liability under the system for such payment.
E. 
Annual examination of persons receiving disability benefits: Prior to the date a member becomes eligible for normal retirement benefits, the disability committee may review the physical and mental condition of all persons receiving disability benefits on a periodic basis as determined necessary by the board. The review shall be limited to the condition which gave rise to the disability. If the board determines that a physical or mental condition is the type of condition which could improve, the disability committee may require the member to submit to additional physical or mental examinations at the expense of the system. The refusal of a member to consent to such examinations shall be considered grounds for denial of further payment of those benefits.
F. 
Confidentiality of psychological disability files: All documents submitted to the staff or disability committee in connection with an application for occupational or non-occupational disability benefits premised upon a psychological or psychiatric impairment shall be maintained in a confidential manner and shall not be subject to public disclosure absent the written consent of the applicant. Upon a finding by the disability committee that consideration of a claim for benefits premised upon psychological or psychiatric impairment meets the standard of section 1.25.010A of the Anchorage Municipal Code, that claim may be heard in an executive session. All records shall be maintained in compliance with any applicable state or federal laws and as otherwise provided in this chapter. No official action may be taken in an executive session.
G. 
Requirements for surviving spouse benefits: In order to be eligible for surviving spouse benefits, the member and spouse must have been lawfully married not less than six months prior to the death of the member. In the event a member dies a line-of-duty death, this marriage requirement shall be waived.
(AO No. 2000-65, § 3, 4-18-2000; AO No. 2002-54, § 22, 3-19-2002)
A. 
This section shall apply to Plans I, II, and III.
B. 
Policy.
1. 
When discovered all benefit payments made to members of the system which have been miscalculated or delayed, should be brought to the attention of the board at its next scheduled meeting.
2. 
It is the intent of this section that:
a. 
All benefit payments which have been miscalculated shall immediately be recalculated by the staff so that all future payments are correct.
b. 
All underpayments of normal, currently prescribed benefits will be paid as soon as possible. Interest will be paid to the member on the underpayment at 10.5 percent simple interest except that no interest will be paid on any underpayment caused by the member's failure to provide accurate and timely information required in connection with the initial or revised benefit calculation.
c. 
Interest will be paid to the member on any payment delayed more than 90 days beyond the benefit commencement, entitlement or approval date, whichever is later, at 10.5 percent simple interest, except that no interest shall be paid on any delay caused by the member's failure to provide timely information required in connection with the initial or revised benefit calculation.
d. 
All overpayments of normal, currently prescribed benefits will be collected from the member as soon as possible. If the immediate repayment of the entire amount of the overpayment will cause an undue hardship on the member, an installment payment plan may be approved by the board. The board may elect to waive repayment as set forth in this section. Interest on overpayments shall be due at eight percent simple interest. Interest on the overpayment shall be waived by the board if the board determines that the member cannot reasonably be expected to have known that the benefit actually received was in excess of that which was earned or if the board determines that the amount of the interest is de minimus.
3. 
Changes in policies, ordinances, statutes or court rulings that result in new or retroactive benefits to members shall be paid as soon as possible, without interest, unless required by ordinance, statute or court ruling.
C. 
Procedures and responsibilities.
1. 
When an error is suspected and brought to the attention of the system, the staff shall:
a. 
Calculate and/or re-calculate all appropriate benefits for the member;
b. 
Submit new or revised calculations to the external audit firm for verification and certification;
c. 
Make the appropriate change in the member's monthly benefit;
d. 
As applicable, calculate simple interest at 10.5 percent of the underpaid amount, and eight percent on overpaid amounts;
e. 
Prepare and maintain a monthly report on all over or underpayments (including an explanation of how and why they occurred) for the board's review and appropriate action;
f. 
Unless the recovery of an overpayment has been waived by the board, arrange for the payment from the member or arrange a payment plan with the member for submission to the board for approval. If appropriate, obtain written agreement from the individual member to deduct the monthly payment, including any applicable interest, from future benefit payments;
g. 
Make all such payments or collections as approved by the board;
h. 
Make all necessary corrections to the system records;
i. 
In the event of an overpayment, for which the board has elected not to waive collection, notify the member of the amount of the overpayment, including any interest that may be due. The member shall be notified that he or she may request that the repayment of the overpayment, including the payment of interest, may be waived by the board in accordance with this policy. The member shall also be advised of his or her right to submit mitigating circumstances to the board in support of a request for the waiver of repayment.
2. 
The board shall:
a. 
Review the monthly report of over and underpayment of benefits and take appropriate action in accordance with the following guidelines:
i. 
All corrected benefit calculations resulting in overpayment shall be verified by the board.
ii. 
All overpayments will be collected, with interest, unless waived by the board. Factors to be considered by the board in determining whether the collection of an overpayment, including interest shall be waived are:
(A) 
Did the member know or should the member have known that he or she had provided the system with incorrect information, or
(B) 
Did the member know or should the member have known that the benefit was incorrect and then failed to notify the system.
iii. 
No interest on under-payments will be payable if the member fails to submit a claim on a timely basis or if a delay in payment is related to the member's failure to provide information as required by the board.
iv. 
The board may choose to waive collection of the amounts due if the member demonstrates to the satisfaction of the board that:
(A) 
The error was not caused by the member; and
(B) 
The member had no reason to believe that the benefit (overpayment) was in error.
v. 
The board may choose to waive collection of the amounts due if the member demonstrates to the satisfaction of the board that the collection of the overpayment would cause undue hardship. This section shall apply only to benefit calculations, error discoveries and related payments and collections made or required subsequent to January 27, 1998. Overpayments, under-payments or late payment actions pending before the board on or before that date or occurring before that date will be addressed by the board on a case-by-case basis. The board may, in its discretion, elect to employ the guidelines set forth in this section.
(AO No. 2000-65, § 3, 4-18-2000; AO No. 2002-54, § 22, 3-19-2002)