This bill amends various sections of Alaska's laws regarding the teachers' and public employees' defined contribution retirement plans, specifically focusing on eligibility for retirement and medical benefits. Key changes include reducing the required years of service for retirement eligibility from 30 to 25 years for teachers and from 25 to 20 years for peace officers and firefighters. Additionally, the bill introduces a requirement that members must have been active for at least 12 months immediately before retirement to qualify for medical benefits. The language regarding direct retirement has been removed, streamlining the process for members.

Furthermore, the bill modifies the premium costs for retiree major medical insurance coverage based on years of service, eliminating a tier for members with 25 to 30 years of service and adjusting the percentages for those eligible for Medicare. It also specifies that if a person who terminates employment returns by age 65, their account balance will be restored with interest added for the years between termination and re-employment, as determined by the board. 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