This bill seeks to amend Alaska's laws regarding the restoration of tenure rights for disabled teachers and the retirement systems for public employees. It allows teachers who were retired due to disability to regain their tenure rights if their disability is resolved or compensated through rehabilitation, contingent upon certification from the commissioner of administration. The legislation introduces a choice for employees between defined benefit and defined contribution plans within the Public Employees' Retirement System and the teachers' retirement system. Key amendments include the repeal and reenactment of sections related to retirement plan applicability, contribution rates, and requirements for disabled members to engage in vocational rehabilitation programs. Additionally, it establishes an 8% contribution rate for new members joining the retirement plans after June 30, 2006, and outlines the process for teachers to switch to the defined contribution plan within 90 days of hire.

The bill also introduces new requirements for disabled employees, mandating proof of application for disability payments under the Social Security Act, with benefits ceasing if not complied with within 30 days of their anniversary date. Employees who become disabled after June 30, 2006, must apply for vocational rehabilitation within 30 days of starting their disability benefits. Furthermore, it allows public employees hired after June 30, 2006, to make a one-time election to switch from a defined contribution plan to a defined benefit plan. The bill clarifies premium payment obligations for major medical insurance based on age and years of service and establishes a process for future adjustments. It emphasizes compliance with the Internal Revenue Code and mandates the commissioner of administration to adopt necessary regulations for implementation, with certain provisions taking effect immediately and others on July 1, 2025.

Statutes affected:
SB0027A, AM SB 27, introduced 01/10/2025: 14.20.165, 14.25.130, 14.25.009, 14.25.220, 14.25.310, 14.25.590, 14.25.040, 14.40.661, 14.40.799, 14.25.330, 14.25.540, 14.25.050, U.S.C, 14.25.168, 14.25.350, 14.25.167, 39.35.095, 39.35.680, 14.25.070, 14.25.485, 39.35.700, 39.35.990, 39.35.600, 39.35.650, 39.35.160, 39.35.400, 39.35.410, 39.35.535, 39.35.360, 39.35.370, 39.35.750, 39.35.530, 39.35.620, 39.35.625, 39.35.720, 39.35.940, 39.35.255, 39.35.890, 14.25.012, 39.35.957, 39.30.150, 39.30.180, 14.25.360, 39.35.760, 14.25.010, 14.25.320, 14.25.490, 39.35.115, 39.35.678, 39.35.710, 39.35.895, 39.35.003, 14.25.003, 37.10.210