Alaska2026Passed Legislature
HB107
Changes to Alaska Supplemental Employee Benefits and Retirement Contributions
Last scannedSep 20, 2026, 12:32 AM
In one sentence
This bill sets contribution rates for supplemental annuity accounts, allows workers to buy extra benefits like health or disability coverage, expands eligibility to certain teachers and first responders, and increases employer contributions for peace officers and firefighters.
What it does
- Sets the required employer contribution at 6.13 percent of wages up to a federal limit for supplemental annuity accounts in place of Social Security taxes.
- Requires employees to reduce their pay by an equal amount, which is treated as an employer contribution and paid into individual employee annuity accounts.
- Allows employees to voluntarily reduce their pay further to fund special benefit accounts used only to purchase selected benefits.
- Lists four specific types of extra benefits workers can buy with money in these accounts: supplemental health, death, disability, and dependent care.
- Lets teachers who are members of the teachers' retirement system or peace officers and firefighters employed by political subdivisions join the plan if their employer is not already part of Social Security or a participating employer.
- Increases the required employer contribution rate to 9.74 percent of compensation specifically for peace officers and firefighters.
Who it affects
- Employees in Alaska's supplemental benefit system
- Teachers who are members of the teachers' retirement system
- Peace officers and firefighters employed by political subdivisions of the state
- Employers required to make contributions under state law
Limits and unknowns
- The bill does not specify how much money is needed in an account to purchase each type of benefit.
- It does not explain what happens if a worker changes jobs or leaves state employment before retirement.
- The text states the law takes effect on July 1, 2025.
Plain language
Terms to know
- Participating employee
- A worker who is part of a participating employer or has elected to join the supplemental benefit plan.
- Supplemental Annuity Plan
- The state program that holds individual retirement accounts for workers not covered by Social Security.
- Taxable wage base
- The maximum amount of a worker's pay used to calculate contribution amounts, set by the federal social security system.
Official record
Sources
Official summary
EMPLOYEE RETIREMENT BENEFITS/SBS An Act relating to supplemental employee benefits; relating to retirement benefits of peace officers and firefighters hired after June 30, 2006; and providing for an effective date.
Official activity
Bill history
- (H) REFERRED TO FINANCE186
- (H) FIN186
- (H) READ THE FIRST TIME - REFERRALS186