SB 55 Alaska Senate · 34th Legislature (2025-2026)

An Act relating to employer contributions in the teachers' retirement system; relating to supplemental employee benefits; and providing for an effective date.

SB 55 reduces required employer contributions to Alaska's teachers' retirement system. It lowers the employer contribution rate from 14.56% to 12.56% of base salaries for active and reemployed retired teachers, and cuts supplemental employee benefit contributions from 9% to 7% of annual compensation. The bill directly affects school districts and public employers participating in the teachers' retirement system (AS 14.25) or public employees' retirement system (AS 39.35), impacting their payroll obligations. The changes take effect July 1, 2025, and also clarify eligibility rules for employers not participating in federal Social Security.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 24, 2025 Last action May 15, 2026

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What changed between versions

CSSB 55(L&C) → CSSB 55(FIN) · 5 edits

MODERATE

The bill was finalized and referred to the Rules Committee instead of Finance, with the committee changed from Labor & Commerce to Finance. The core policy changes significantly alter how the supplemental annuity is funded: new employers must gradually increase their contribution rates over five years (1% to 5%) before reaching the full 6.13% rate, whereas the previous version required the full rate immediately. Additionally, the bill now allows employers not in the standard retirement system to offer a similar graduated benefit program.

Scope change

The bill now applies a phased-in contribution schedule for new employers and introduces an optional graduated benefit program for employers outside the standard public employee retirement systems.

TIMELINE

The bill's effective date was changed from July 1, 2026, to July 1, 2027, and the legislative session dates were updated.

FISCAL

The contribution rate for new employers is no longer immediate; it is now phased in over five years, starting at 1% and increasing by 1% each year until reaching the full 6.13%.

SCOPE

Employers not currently participating in the standard public employee retirement system are now eligible to offer a similar supplemental benefit program with the same graduated contribution schedule.

ELIGIBILITY

The definition of a 'participating employer' was updated to include employers who have never participated in or have withdrawn from the federal social security system.

REQUIREMENT

The state's financial contribution to teachers' retirement system employees was removed from the text, shifting the focus to the employer and employee contribution structure.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 14, 2026

Committee

(S) REFERRED TO RULES

upper

Mar 26, 2026

Upper · Passed

(S) Moved CSSB 55(FIN) Out of Committee

upper

Mar 24, 2025

Upper · Passed

(S) Moved CSSB 55(L&C) Out of Committee

upper

1 primary · 4 co-sponsors