TEACHERS & SUPPLEMENTAL EMPLOYEE BENEFITS

Plain English Breakdown

The bill removes language requiring employers to have 'never elected' or 'withdrawn from' Social Security, but it is unclear if an employer who currently participates in Social Security can join the program immediately upon stopping participation.

Changes to Supplemental Benefits for Alaska Teachers and Public Employees

This law allows employers in the teachers' retirement system or public employees' retirement system who do not use federal Social Security to join a state supplemental benefit program, while giving individual teacher members the option to choose whether they participate.

What This Bill Does

• Allows employers in the Teachers' Retirement System and Public Employees' Retirement System of Alaska that do not participate in federal Social Security to become participating employers in the employee benefits program.
• Removes old rules requiring an employer to have never joined or must withdraw from federal Social Security before joining the state benefit program.
• Gives employees who are members of the Teachers' Retirement System the option to choose whether they want to participate in the employee benefits program.
• Updates the legal definition of a 'participating employer' to include employers defined under specific Alaska statutes for teachers and public employees.

Who It Names or Affects

• Employers in the Teachers' Retirement System or Public Employees' Retirement System who do not participate in federal Social Security.
• Employees working for those employers who are members of the Teachers' Retirement System.
• The State of Alaska as a participating employer under the updated definition.

Terms To Know

Teachers' Retirement System

A state retirement plan for educators in Alaska defined by statute AS 14.25.

Public Employees' Retirement System of Alaska (PERS)

A state retirement plan for public workers defined by statute AS 39.35.

Participating Employer

An employer that joins the supplemental employee benefits program under new rules in this bill, including those who have previously participated in federal Social Security as long as they do not currently participate.

Limits and Unknowns

• The law does not explain how much money employees or employers must pay to join the benefit program.
• The text does not describe what specific benefits, such as health insurance or extra retirement funds, are included in the program.
• It is unclear if this change applies immediately to all current employees or only those hired after July 1, 2025.

Official Summary Text

TEACHERS & SUPPLEMENTAL EMPLOYEE BENEFITS
An Act relating to supplemental employee benefits; and providing for an effective date.

Current Bill Text

HB0038b -1- SSHB 38
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0166\N

SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 38

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY REPRESENTATIVE SADDLER

Introduced: 3/5/25
Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to supplemental employee benefits; and providi ng for an effective 1
date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 39.30.170(a) is amended to read: 4
(a) An employer in the teachers' retirem ent system (AS 14.25) or the 5
Public Employees' Retirement System of Alaska (AS 39.35) that d oes not 6
participate in the federal social security system m a y b e c o m e a p a r t i c i p a t i n g 7
employer in the employee benefits program under AS 39.30.150 - 39.30.180; 8
however, an employee who is a member of the teachers' retiremen t system may 9
choose not to participate in the employee benefits program unde r AS 39.30.150 - 10
39.30.180 [, IF 11
(1) THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN 12
THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND 13
(2) THE EMPLOYER 14
34-LS0166\N
SSHB 38 -2- HB0038b
New Text Underlined [DELETED TEXT BRACKETED]

(A) IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS 1
NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL 2
SOCIAL SECURITY SYSTEM; OR 3
(B) WITHDRAWS FROM MEMBERSHIP IN THE 4
FEDERAL SOCIAL SECURITY SYSTEM]. 5
* Sec. 2. AS 39.30.180(3) is amended to read: 6
(3) "participating employer" means 7
(A) the State of Alaska; [AND] 8
(B) an employer who 9
(i) [WHO] is an employer as defined in AS 14.25.220, 10
14.25.590, AS 39.35.680, or 39.35.990; and 11
(ii) d o e s n o t p a r t i c i p a t e [WHO HAS NEVER 12
PARTICIPATED IN OR HAS WITHDRAWN FROM 13
PARTICIPATION] in the federal social security system [; AND 14
(iii) WHOSE PARTICIPATION IN THE 15
SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN 16
APPROVED BY THE COMMISSIONER]. 17
* Sec. 3. This Act takes effect July 1, 2025. 18