The proposed bill seeks to amend the Public Employees' Retirement System of Alaska and the teachers' retirement system by providing eligible employees the option to choose between defined benefit and defined contribution plans. Key changes include the repeal and reenactment of AS 14.25.009, which clarifies the defined benefit retirement plan's applicability for teachers. The bill introduces new subsections that allow active members to elect participation in the defined benefit plan and outlines a one-time election process for reemployed teachers to switch from the defined contribution plan. Additionally, it establishes new contribution rates for members who first participate after June 30, 2006, setting their contribution at 8% of their base salary, and introduces guidelines for transferring contributions and service credits between plans.

Further amendments focus on eligibility criteria for retirement benefits, particularly for members who joined before and after June 30, 2006. The bill creates a sub-trust for employer contributions for newer members and modifies the calculation of average base salary to consider the five highest years of base salary for those who joined after the specified date. It also clarifies medical benefits provisions for members and their dependents, including access to a retiree major medical insurance plan. The bill allows members employed in a defined contribution retirement plan as of July 1, 2025, to make a one-time election to switch to the defined benefit plan, with provisions for transferring contributions to purchase credited service. Overall, the bill aims to enhance flexibility and sustainability within Alaska's retirement systems.

Statutes affected:
SB0028A, AM SB 28, introduced 01/10/2025: 14.25.009, 14.25.220, 14.25.310, 14.25.590, 14.25.040, 14.40.661, 14.40.799, 14.25.540, 39.35.095, 39.35.680, 39.30.097, 14.25.480, 14.25.171, 39.30.150, 39.30.180, 14.25.360, 14.25.010, 14.25.181, 14.25.320, 14.25.490, 14.25.048, 14.25.061, 14.25.050, U.S.C, 14.25.070, 14.25.065, 14.20.136, 14.25.173, 37.10.220, 14.25.350, 39.30.370, 14.25.075, 14.25.047, 14.25.060, 14.25.100, 14.25.107, 14.20.345, 14.25.044, 14.25.105, 14.25.085, 14.25.087, 14.25.168, 14.25.110, 14.25.167, 14.25.142, 14.25.143, 43.23.005, 39.30.300, 39.30.095, 14.25.330, 37.10.210, 37.10.390, 14.25.340, 39.35.730, 39.35.750, 39.45.010, 39.45.060, 14.25.145, 39.35.100, 39.30.495, 39.35.160, 39.35.255, 37.10.310, 14.25.086, 39.35.281, 40.25.110, 40.25.120, 39.35.475, 39.30.090, 22.25.090, 39.35.535, 39.35.537, 39.35.880, 39.37.145, 23.15.136, 39.30.091, 21.86.310, 23.15.010, 23.15.210, 39.35.700, 39.35.990, 39.35.940, 39.30.340, 14.25.003, 14.25.004, 39.30.380, 14.25.470, 39.35.870, 39.30.390, 39.30.400, 39.30.420, 39.35.760, 39.35.115, 39.35.678, 39.35.710, 39.35.895, 39.35.165, 39.35.159, 39.35.310, 39.35.330, 39.35.340, 39.35.342, 39.35.345, 39.35.360, 39.35.370, 39.35.375, 39.35.381, 39.35.341, 39.35.520, 39.35.280, 39.35.282, 39.35.385, 39.35.120, 39.35.450, 39.35.400, 39.35.440, 39.35.485, 39.35.480, 39.35.610, 39.35.300, 39.35.720, 14.25.012