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HB107 • 2026

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.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
REPRESENTATIVES TOMASZEWSKI, Costello
Last action
2025-02-14
Official status
(H) FIN
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how contributions are adjusted if an employee's wages exceed the social security taxable wage base.

Act for Employee Retirement Benefits

This act modifies retirement benefits for peace officers and firefighters hired after June 30, 2006, by adjusting employer contributions to their individual annuity accounts.

What This Bill Does

  • Changes the contribution rate from employers to an employee's individual annuity account based on wages up to a certain limit.
  • Allows employees to choose additional benefits with voluntary wage reductions into special benefit accounts.
  • Provides specific types of supplemental benefits such as health, death, disability, and dependent care for eligible employees.

Who It Names or Affects

  • Peace officers and firefighters hired after June 30, 2006
  • Employees who can choose additional benefits

Terms To Know

participating employee
An employee who is part of the supplemental benefit plan established by the state.
individual annuity account
A personal retirement savings account managed by the Department of Administration for participating employees.

Limits and Unknowns

  • The bill does not specify how contributions will be adjusted if an employee's wages exceed the social security taxable wage base.
  • It is unclear what happens to existing accounts and benefits for peace officers and firefighters hired before June 30, 2006.

Bill History

  1. 2025-02-14 186

    (H) REFERRED TO FINANCE

  2. 2025-02-14 186

    (H) FIN

  3. 2025-02-14 186

    (H) READ THE FIRST TIME - REFERRALS

Official Summary Text

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.

Current Bill Text

Read the full stored bill text 
HB0107a -1- HB 107
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0599\A

HOUSE BILL NO. 107

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY REPRESENTATIVES TOMASZEWSKI, Costello

Introduced: 2/14/25
Referred: Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to supplemental employee benefits; relating to retirement benefits of 1
peace officers and firefighters hired after June 30, 2006; and providing for an effective 2
date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 39.30.150(a) is amended to read: 5
(a) In place of contributions to the federal social security s ystem that would 6
have been required on behalf of a participating [AN] employee had the 7
[PARTICIPATING] employer belonged to the social security system , the 8
[PARTICIPATING] employer shall contribute an amount equal to 6. 13 percent of the 9
wages of the participating employee up to the taxable wage base then in effect in the 10
social security system. This contribution shall be paid into an individual employee 11
annuity account in the Department of Administration under the t erms of the State of 12
Alaska Supplemental Annuity Pla n. The department shall pay 6.13 p e r c e n t o f t h e 13
wages of the participating employee up to the taxable wage base then in effect in the 14
34-LS0599\A
HB 107 -2- HB0107a
New Text Underlined [DELETED TEXT BRACKETED]

social security system into the individual employee annuity acc ount established under 1
this subsection. This wage reduction shall be treated as an emp loyer contribution 2
under 26 U.S.C. 414(h)(2). All costs of establishing and admini stering the programs 3
established under AS 39.30.150 - 39.30.180 shall be paid from t he contributions made 4
to the individual employee annuity accounts under this section. 5
* Sec. 2. AS 39.30.150(c) is amended to read: 6
(c) A participating [AN] employee may voluntarily elect additional wage 7
reductions to be paid into speci al individual employee benefit accounts in the 8
Department of Administration. Money in these accounts may only be used to purchase 9
benefits selected by the participating employee under the supplemental benefits plan 10
established by the administrator. 11
* Sec. 3. AS 39.30.160(a) is amended to read: 12
(a) The Department of Administration shall, in accordance with policies 13
prescribed by regulations adopted by the commissioner, provide to participating 14
employees for whom special indi vidual employee benefit accounts a r e e s t a b l i s h e d 15
under AS 39.30.150(c) the following benefit options: 16
(1) supplemental health benefits; 17
(2) supplemental death benefits; 18
(3) supplemental disability benefits; and 19
(4) supplemental dependent care benefits. 20
* Sec. 4. AS 39.30.160(b) is amended to read: 21
(b) A participating [AN] employee may select the types and amounts of 22
supplemental benefits to be pur chased with the money deposited in the employee's 23
special individual employee benefit accounts under AS 39.30.150 . The selection for 24
participating employees described in AS 39.30.150(a) must be from the benefi t 25
options listed in (a) of this section. 26
* Sec. 5. AS 39.30.170 is amended by adding a new subsection to read: 27
(e) An active employee member of the teachers' retirement syst em (AS 14.25) 28
or a person employed as a peace officer or firefighter by a pol itical subdivision of the 29
state may elect to become a participating employee if employed by an employer who 30
is not 31
34-LS0599\A
HB0107a -3- HB 107
New Text Underlined [DELETED TEXT BRACKETED]

(1) a participating employer; 1
(2) a member of the federal social security system. 2
* Sec. 6. AS 39.30.180 is amended by adding a new paragraph to read: 3
(4) "participating employee" includes 4
(A) an employee of a participating employer; 5
(B) an employee who elects under AS 39.30.170(e) to 6
participate in the supplemental employee benefit plan under AS 39.30.160. 7
* Sec. 7. AS 39.35.750(a) is amended to read: 8
(a) An employer shall contribute to the [EACH MEMBER'S] individual 9
account of each member who is not a peace officer or firefighter an amount equal 10
to five percent of the member's compensation from July 1 to the following June 30. 11
An employer shall contribute to the individual account of each peace officer or 12
firefighter an amount equal to 9.74 percent of the peace office r's or firefighter's 13
compensation from July 1 to the following June 30. 14
* Sec. 8. This Act takes effect July 1, 2025. 15