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SB27

SB 27: Teacher Tenure Restoration and Retirement Plan Choices

Last scannedSep 12, 2026, 4:46 AM

In one sentence

This bill restores tenure rights for certain disabled teachers who recover or complete rehabilitation, requires employers to offer a defined contribution retirement plan option alongside the traditional plan, sets specific rules for disability benefits including job search requirements for newer members, and adjusts medical insurance costs based on years of service.

What it does

  • Restores full tenure rights to teachers retired due to disability if their condition is removed or compensated by rehabilitation, certified by a physician or the commissioner of administration.
  • Requires employers participating in the Teachers' Retirement System to also participate in and offer the defined contribution retirement plan option.
  • Sets member contributions at 8.65 percent for those joining before July 1, 2006, and eight percent for members first participating after June 30, 2006.
  • Requires new members (after June 30, 2006) receiving disability benefits to apply for vocational rehabilitation within 30 days or risk benefit termination if they fail to enroll, cooperate, interview for jobs, or accept job offers.
  • Sets different monthly premium costs for retiree medical insurance based on years of service and Medicare eligibility for members who joined after June 30, 2006.

Who it affects

  • Teachers in Alaska retired due to disability whose condition has been removed or compensated by rehabilitation.
  • New members joining the Teachers' Retirement System after June 30, 2006.
  • Employers participating in the state's teacher and public employee retirement systems.
  • Retirees receiving major medical insurance coverage under the system.

Limits and unknowns

  • The bill text does not state a specific effective date for when these changes begin.
  • Future adjustments to medical insurance cost percentages after July 1, 2030, depend on calculations by the administrator that are truncated in this excerpt.

Plain language

Terms to know

Tenure
A legal right for a teacher to keep their job unless there is a specific reason, such as misconduct or lack of funding, to remove them.
Defined Benefit Plan
A retirement plan where the amount of money received at retirement is calculated based on salary and years worked.
Defined Contribution Plan
A retirement plan where contributions are made to an individual account, and the final payout depends on how much was saved and investment returns.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

TEACHERS & PUB EMPLOYEE RETIREMENT PLANS An Act relating to restoration of tenure for certain disabled individuals; relating to the Public Employees' Retirement System of Alaska and the teachers' retirement system; providing certain employees an opportunity to choose between the defined benefit and defined contribution plans of the Public Employees' Retirement System of Alaska and the teachers' retirement system; and providing for an effective date.

Official activity

Bill history

  1. (S) REFERRED TO LABOR & COMMERCE32
  2. (S) L&C, FIN32
  3. (S) READ THE FIRST TIME - REFERRALS32
  4. (S) PREFILE RELEASED 1/10/2532