The bill proposes significant amendments to the Public Employees' Retirement System of Alaska and the teachers' retirement system, primarily allowing 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 retirement provisions for teachers eligible for the defined benefit plan. New subsections are introduced to enable active members to elect participation solely in the defined benefit plan under specific criteria. The bill also adjusts contribution rates for members who joined after June 30, 2006, and allows reemployed teachers to make a one-time election to switch to the defined benefit plan under certain conditions.

Additionally, the bill establishes a sub-trust for newer members to ensure adequate funding for their retirement costs and modifies eligibility criteria for retirement benefits based on hire dates and years of service. It outlines the process for transferring contributions and service credits between plans and clarifies medical benefits eligibility for members who joined after June 30, 2006. The legislation aims to enhance the clarity and functionality of the retirement system while ensuring compliance with federal regulations, ultimately providing greater flexibility and informed choices for public employees and teachers in Alaska.

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