An Act relating to the Public Employees' Retirement System of Alaska and the teachers' retirement system; and providing for an effective date.

This bill updates Alaska's Public Employees' Retirement System and teachers' retirement system to clarify which employees are covered under each plan based on their hire date and participation choices. It establishes specific employer contribution rates for the defined benefit plan, sets deadlines for submitting payments with interest penalties for late submissions, and mandates that new teachers hired after July 1, 2006, participate in the defined contribution plan unless they are already in the defined benefit system. The legislation also adjusts how retired employees pay for major medical insurance, requiring those eligible for Medicare to pay a percentage of premiums based on their years of service, while disabled employees retain access to retiree health benefits. These changes apply to current and future public employees and teachers in Alaska, with provisions taking effect on a specified date.