SB198 • 2026

PERS/TRS RETIREMENT & MEDICAL ELIGIBILITY

An Act relating to the teachers' defined contribution retirement plan; relating to the public employees' defined contribution retirement plan; and providing for an effective date.

Education Healthcare Labor

Passed Legislature

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

Sponsor: SENATOR KAUFMAN
Last action: 2026-02-09
Official status: (S) FIN
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how these changes will impact current retirees or any financial implications for the state.

Changes to Retirement and Medical Benefits

This act modifies eligibility requirements for medical benefits under retirement plans for teachers and public employees in Alaska.

What This Bill Does

Reduces the years of service required from 30 to 25 for members to be eligible for medical benefits upon retiring directly from their defined contribution retirement plan.
Restores contributions made on behalf of individuals who return to employment with a participating employer by age 65, plus interest, and credits their earlier period of employment towards eligibility for medical benefits.

Who It Names or Affects

Teachers
Public employees

Terms To Know

Defined Contribution Retirement Plan: A retirement plan where the employer and/or employee contribute a fixed amount of money, which is invested to grow over time.
Medical Benefits: Health insurance or other medical coverage provided by an employer as part of a benefits package.

Limits and Unknowns

The bill does not specify how the reduced service requirement will affect current retirees.
It is unclear if there are any financial implications for the state due to these changes in eligibility requirements.

Bill History

2026-02-09 1641
(S) REFERRED TO FINANCE
2026-02-09 1641
(S) FN1: (ADM)
2026-02-09 1641
(S) NR: DUNBAR, MERRICK, YUNDT, GRAY-JACKSON
2026-02-09 1641
(S) DP: BJORKMAN
2026-02-09 1641
(S) L&C RPT CS 1DP 4NR SAME TITLE
2026-02-06 Text
(S) Moved CSSB 198(L&C) Out of Committee
2026-02-06 Text
(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
2026-01-28 Min
(S) Minutes (SL&C)
2026-01-28 Text
(S) Heard & Held
2026-01-28 Text
(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
2025-05-19 1355
(S) L&C, FIN
2025-05-19 1355
(S) READ THE FIRST TIME - REFERRALS

Official Summary Text

PERS/TRS RETIREMENT & MEDICAL ELIGIBILITY
An Act relating to the teachers' defined contribution retirement plan; relating to the public employees' defined contribution retirement plan; and providing for an effective date.

Current Bill Text

Read the full stored bill text

SB0198B -1- CSSB 198(L&C)
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0943\I

CS FOR SENATE BILL NO. 198(L&C)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE LABOR AND COMMERCE COMMITTEE

Offered: 2/9/26
Referred: Finance

Sponsor(s): SENATOR KAUFMAN
A BILL

FOR AN ACT ENTITLED

"An Act relating to the teachers' defined contribution retirement plan; relating to the 1
public employees' defined contribution retirement plan; and providing for an effective 2
date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 14.25.470(a) is amended to read: 5
(a) In order to obtain medical benefits under AS 14.25.480, a member must 6
retire [DIRECTLY] from the plan. A member is eligible to retire from the plan if 7
[THE MEMBER HAS BEEN AN ACTIVE MEMBER FOR AT LEAST 12 8
MONTHS BEFORE APPLICATION FOR RETIREMENT AND] 9
(1) the member has at least 25 [30] years of service; or 10
(2) the member reaches the normal retirement age, [AND] has at least 11
10 years of service, and has been an active member for at least 12 months 12
immediately before retirement from the plan. 13
* Sec. 2. AS 39.30.380 is amended to read: 14
34-LS0943\I
CSSB 198(L&C) -2- SB0198B
New Text Underlined [DELETED TEXT BRACKETED]

Sec. 39.30.380. Termination of employment. A person who terminates 1
employment before meeting the eligibility requirements of AS 14.25.470 or 2
AS 39.35.870 loses any right to the contributions made on behalf of the person to the 3
teachers' and public employees' retiree health reimbursement arrangement trust fund. 4
If a person returns to employment with a participating employer by December 31 of 5
the year in which the person reaches 65 years of age, the person's account balance 6
shall be restored in the amount recorded on the date of termination from the trust plus 7
interest added by the administrator for each year between the date of 8
termination and the date of the person's return to employment [, ADJUSTED 9
FOR INFLATION] at the rate established by the board under AS 39.30.370 [OF 10
THE CONSUMER PRICE INDEX FOR ANCHORAGE, ALASKA]. The earlier 11
period of employment with a participating employer shall be credited toward 12
eligibility for medical benefits. 13
* Sec. 3. AS 39.35.870(a) is amended to read: 14
(a) In order to obtain medical benefits under AS 39.35.880, an active member 15
must retire [DIRECTLY] from the plan. A member is eligible to retire from the plan if 16
[THE MEMBER HAS BEEN AN ACTIVE MEMBER FOR AT LEAST 12 17
MONTHS BEFORE APPLICATION FOR RETIREMENT AND] 18
(1) the member has at least 20 [25] years of membership service as a 19
peace officer or firefighter or at least 25 [30] years of membership service for all other 20
employees; or 21
(2) the member reaches the normal retirement age, [AND] has at least 22
10 years of membership service, and has been an active member for at least 12 23
months immediately before retirement from the plan. 24
* Sec. 4. This Act takes effect July 1, 2026. 25