This bill amends the eligibility requirements for medical benefits under the teachers' and public employees' defined contribution retirement plans in Alaska. Specifically, it reduces the years of service required for retirement eligibility from 30 to 25 years for teachers and from 30 to 25 years for other employees, while also establishing a new requirement that members must have been active for at least 12 months immediately before retirement. Additionally, the bill removes the direct retirement requirement and modifies the conditions under which a member can return to employment after termination, allowing for the restoration of account balances with interest.

Furthermore, the bill updates the language regarding the restoration of account balances for individuals who return to employment after termination, specifying that the balance will include interest added by the administrator for each year between termination and return, rather than being adjusted 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
SB0198B, AM CSSB 198(L&C), introduced 02/09/2026: 14.25.470, 14.25.480, 39.30.380, 39.35.870, 39.30.370