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.

Education Labor Taxes

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 does not define what constitutes a 'political subdivision of the state,' leaving some uncertainty about which specific employers qualify for teacher and first responder participation.

Changes to Alaska Supplemental Employee Benefits and Retirement Contributions

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 This Bill 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 Names or 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

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.

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.

Bill History

2025-02-14 186
(H) REFERRED TO FINANCE
2025-02-14 186
(H) FIN
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]

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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
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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
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(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