The bill amends existing laws regarding occupational disability benefits for peace officers and firefighters in Alaska. Specifically, it modifies AS 39.35.410(d) and AS 39.35.890(d) to establish that the monthly amount of an occupational disability benefit will initially be 40 percent of the disabled employee's gross monthly compensation at the time of termination due to disability. However, for each month of eligibility after the first 12 months, the benefit amount for peace officers and firefighters will increase to 75 percent of their gross monthly compensation at the time of termination.

Additionally, the bill ensures that members appointed to disability become fully vested in employer contributions made to their accounts, and it stipulates that while receiving disability benefits, employees cannot elect distributions from their individual contribution accounts. Employers are required to continue making contributions to the employee's individual account without deducting from the disability payments. The bill is set to take effect immediately upon enactment.

Statutes affected:
SB0144A, AM SB 144, introduced 03/26/2025: 39.35.410, 39.35.890