The proposed bill amends the Public Employees' Retirement System of Alaska and the teachers' retirement system, providing employees the option to choose between defined benefit and defined contribution plans. It repeals and reenacts AS 14.25.009 to clarify the applicability of the defined benefit retirement plan for eligible teachers and introduces provisions allowing active members to elect participation solely in the defined benefit plan if they are also part of a public employees' retirement plan. The bill also adjusts contribution rates for members who joined after June 30, 2006, and establishes a one-time election for reemployed teachers to switch to the defined benefit plan under specific conditions.

Additionally, the bill introduces a sub-trust for newer members, modifies eligibility criteria for retirement benefits based on membership start dates, and clarifies definitions related to average base salary and vested members. It outlines the responsibilities of the board overseeing the retirement systems, including managing contributions and assets, and allows for adjustments in benefits and contributions. The bill also establishes a retiree health reimbursement arrangement plan for members who first become part of the system after June 30, 2006, and introduces new regulations for the election of defined benefit retirement plans for reemployed employees. Overall, the legislation aims to enhance the flexibility, clarity, and sustainability of retirement benefits for Alaska's teachers and public employees.

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