This bill amends various sections of Alaska's laws regarding the teachers' and public employees' defined contribution retirement plans, specifically focusing on eligibility for medical benefits and the calculation of premiums for retiree medical insurance. Key changes include reducing the required years of service for retirement eligibility from 30 to 25 years for teachers and from 30 to 25 years for other employees, while also introducing a requirement that members must have been active for at least 12 months immediately before retirement. Additionally, the bill removes the direct retirement requirement for obtaining medical benefits and adjusts the premium percentages for retirees eligible for Medicare.

Furthermore, the bill modifies the provisions related to the restoration of account balances for individuals who terminate employment before meeting eligibility requirements. It allows for the restoration of account balances with interest added for each year between termination and re-employment, replacing the previous adjustment for inflation based on the Consumer Price Index. The effective date for these changes is set for July 1, 2026.

Statutes affected:
SB0198A, AM SB 198, introduced 05/19/2025: 14.25.470, 14.25.480, 39.30.380, 39.35.870, 39.30.370, 39.35.880