The proposed bill seeks to amend the Public Employees' Retirement System of Alaska and the teachers' retirement system by providing 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 applicability of the defined benefit retirement plan for eligible teachers. The bill introduces provisions allowing active members to elect to participate solely in the defined benefit plan while employed in a public employees' retirement plan and establishes conditions for teachers to make a one-time election to switch to the defined benefit plan after reemployment. Additionally, it adjusts contribution rates for members who first participate in the plan after June 30, 2006, and introduces mechanisms for transferring contributions and service credits between plans.

Furthermore, the bill revises eligibility criteria for retirement benefits, particularly for members who joined after June 30, 2006, and establishes a sub-trust to manage contributions for these newer members. It clarifies definitions related to average base salary and vested members, ensuring that teachers who first become members after June 30, 2006, are included in the defined contribution retirement plan unless they opt for a defined benefit plan. The bill also outlines medical benefits eligibility and establishes a retiree health reimbursement arrangement plan for newer members. Overall, the legislation aims to enhance flexibility and benefits for employees while maintaining the financial integrity of the retirement systems.

Statutes affected:
HB0078A, AM HB 78, introduced 01/31/2025: 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, 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