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 certain members, 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 benefits.

The bill also modifies the premium structure for retiree medical insurance coverage based on years of service, eliminating a previous tier for members with 25 to 30 years of service. Furthermore, it allows for the restoration of account balances for individuals who return to employment after termination, with interest added based on a rate established by the board rather than 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