Labor & Employment (Retirement Benefits)

HB 338 establishes the Alaska Work and Save Program, allowing employees without access to an employer-sponsored retirement plan to voluntarily contribute to retirement savings using their Permanent Fund Dividend (PFD) payments. The bill modifies the PFD application process to let eligible Alaskans direct $25-$100+ (in $50 increments) from their PFD toward the program, with automatic enrollment at a default contribution rate. The Department of Revenue will administer the program, handle contributions, and charge a 7% administrative fee (not deducted from PFD payments). This applies to all Alaska workers who earn compensation in the state and lack workplace retirement plans, using existing PFD funds rather than creating new government spending.

SB 27 restores teaching positions for Alaska teachers who retired due to disability but later recover, as certified by a physician or vocational rehabilitation program. It also gives public employees in Alaska's retirement systems (including teachers) the option to choose between traditional pension plans (defined benefit) and investment-based retirement accounts (defined contribution). The bill amends retirement laws to allow this choice, with specific contribution rates adjusted for new participants. These changes directly affect disabled teachers seeking reinstatement and public employees managing retirement benefits.

SB 28 allows certain teachers and public employees in Alaska to choose between the traditional defined benefit retirement plan (a guaranteed pension) and a defined contribution plan (similar to a 401(k)) under the state's retirement systems. It specifically applies to teachers who joined after June 30, 2006, but before July 1, 2025, or those who previously elected into the defined contribution plan. To switch, employees must provide written notice to administrators and ensure employer/employee contributions are adjusted to match the defined benefit plan requirements. The bill takes effect on July 1, 2025, with provisions detailing how contributions and service credit would be handled.

SB 198 amends Alaska's retirement benefit rules for teachers and public employees, directly affecting current and future participants in the state's defined contribution retirement plans. It adjusts eligibility requirements (e.g., requiring 25 years of service for teachers to qualify for full retirement benefits instead of 30) and modifies retiree health insurance premiums based on years of service - reducing the discount for Medicare-eligible retirees with 25+ years of service from 15% to 10%. The bill also clarifies that employees who leave before meeting retirement requirements lose their contributions unless they return to work with a participating employer by age 65, at which point their account balance is restored with interest. These changes update existing benefit calculations without creating new programs.

HB 107 modifies retirement contributions for peace officers and firefighters hired after June 30, 2006, requiring employers to contribute 9.74% of their compensation (compared to 5% for other state employees) to retirement funds. It establishes a supplemental benefits plan where employers contribute 6.13% of wages (up to Social Security limits) to individual annuity accounts, and employees can voluntarily add funds to purchase supplemental coverage for health, death, disability, or dependent care. The plan extends eligibility to teachers and eligible peace officers/firefighters even if their employer isn't a participating employer. These changes take effect on July 1, 2025.