Alaska2026Passed Legislature
HB378
Changes to Alaska Public Employee and Teacher Retirement Rules
Last scannedSep 20, 2026, 12:32 AM
In one sentence
This bill updates rules for the Public Employees' Retirement System and Teachers' Retirement System by setting specific employer contribution rates, creating a new nonoccupational disability benefit, adjusting health insurance costs for disabled retirees, and changing interest penalties on late payments.
What it does
- Sets an employer contribution rate of 12.56 percent for public employees in the defined benefit plan, unless the board adopts a different amount.
- Creates a nonoccupational disability benefit equal to 40 percent of monthly pay for members with at least 10 years of service who become totally and permanently disabled before retirement age due to an injury or illness not caused by work.
- Allows eligible disabled retirees receiving benefits under AS 14.25.483 or 14.25.485 to receive major medical insurance without paying premiums if they are not eligible for Medicare.
- Sets the employer contribution rate for teachers in the defined benefit plan at 22 percent of either current base salaries or a calculated average of past five-year salaries, whichever is greater.
- Changes the interest penalty on late employer contributions to equal the most recent actuarially determined earnings rate instead of one and one-half times that rate.
Who it affects
- Public employees who were first hired before July 1, 2006
- Teachers in Alaska's public school system who are members of the defined benefit plan
- Employers required to pay into state retirement funds for these systems
- Disabled members of the Public Employees' Retirement System
Limits and unknowns
- The bill text does not state when these changes will officially take effect.
- Some sections reference other laws that are not fully included in this document.
- The exact dollar amounts for benefits depend on individual salaries and years of service, which vary by person.
Plain language
Terms to know
- Defined benefit plan
- A retirement system where benefits are calculated based on salary and years of service rather than investment returns.
- Nonoccupational disability
- An injury or illness that causes total permanent disability but did not happen while the person was working.
- Credited service
- The number of years a member has worked and contributed to the retirement system, which determines benefit eligibility.
Official record
Sources
Official summary
PERS & TRS An Act relating to the Public Employees' Retirement System of Alaska and the teachers' retirement system; and providing for an effective date.
Official activity
Bill history
- (H) REFERRED TO FINANCE1838
- (H) FIN1838
- (H) READ THE FIRST TIME - REFERRALS1838