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SB0055C -1- CSSB 55(FIN)
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CS FOR SENATE BILL NO. 55(FIN)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE SENATE FINANCE COMMITTEE
Offered: 5/14/26
Referred: Rules
Sponsor(s): SENATORS STEDMAN, Myers, Shower, Cronk
A BILL
FOR AN ACT ENTITLED
"An Act relating to supplemental employee benefits; and providing for an effective 1
date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 39.30.150(a) is amended to read: 4
(a) Except as provided in (d) of this section, in [IN] place of contributions to 5
the federal social security system that would have been required on behalf of an 6
employee had the participating employer belonged to the social security system, the 7
participating employer shall contribute an amount equal to 6.13 percent of the wages 8
of the employee up to the taxable wage base then in effect in the social security 9
system. This contribution shall be paid into an individual employee annuity account in 10
the Department of Administration under the terms of the State of Alaska Supplemental 11
Annuity Plan. The department shall pay 6.13 percent of the wages of the employee up 12
to the taxable wage base then in effect in the social security system into the individual 13
employee annuity account established under this subsection. This wage reduction shall 14
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be treated as an employer contribution under 26 U.S.C. 414(h)(2). All costs of 1
establishing and administering the programs established under AS 39.30.150 - 2
39.30.180 shall be paid from the contributions made to the individual employee 3
annuity accounts under this section. 4
* Sec. 2. AS 39.30.150 is amended by adding new subsections to read: 5
(d) Subject to (e) of this section, an employer who first becomes a 6
participating employer after June 30, 2029, and an employee of that employer, shall 7
each contribute under (a) of this section 8
(1) for the first 12-month period, an amount equal to one percent of the 9
wages of the employee up to the taxable wage base then in effect in the social security 10
system; 11
(2) for the second 12-month period, an amount equal to two percent of 12
the wages of the employee up to the taxable wage base then in effect in the social 13
security system; 14
(3) for the third 12-month period, an amount equal to three percent of 15
the wages of the employee up to the taxable wage base then in effect in the social 16
security system; 17
(4) for the fourth 12-month period, an amount equal to four percent of 18
the wages of the employee up to the taxable wage base then in effect in the social 19
security system; 20
(5) for the fifth 12-month period, an amount equal to five percent of 21
the wages of the employee up to the taxable wage base then in effect in the social 22
security system; and 23
(6) after the fifth 12-month period, the amount required under (a) of 24
this section. 25
(e) After June 30, 2029, an employee of a participating employer may 26
contribute under (a) of this section an amount that, when combined with an amount 27
required under (d)(1) - (5) of this section, does not exceed 6.13 percent of the wages of 28
the employee up to the taxable wage base then in effect in the social security system. 29
* Sec. 3. AS 39.30.170(a) is amended to read: 30
(a) An employer in either the teachers' retirement system (AS 14.25) or the 31
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public employees' retirement system (AS 39.35) that does not participate in the 1
federal social security system shall 2
(1) [MAY] become a participating employer in the employee benefits 3
program under AS 39.30.150 - 39.30.180; or 4
(2) subject to (e) of this section, provide a different benefit 5
program supplemental to the retirement system that requires the employer and 6
each employee who is a member of the retirement system to contribute 7
(A) for the first 12-month period, an amount equal to one 8
percent of the wages of the employee up to the taxable wage base then in 9
effect in the social security system; 10
(B) for the second 12-month period, an amount equal to two 11
percent of the wages of the employee up to the taxable wage base then in 12
effect in the social security system; 13
(C) for the third 12-month period, an amount equal to three 14
percent of the wages of the employee up to the taxable wage base then in 15
effect in the social security system; 16
(D) for the fourth 12-month period, an amount equal to 17
four percent of the wages of the employee up to the taxable wage base then 18
in effect in the social security system; 19
(E) for the fifth 12-month period, an amount equal to five 20
percent of the wages of the employee up to the taxable wage base then in 21
effect in the social security system; and 22
(F) after the fifth 12-month period, an amount equal to 6.13 23
percent of the wages of the employee up to the taxable wage base then in 24
effect in the social security system [, IF 25
(1) THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN 26
THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND 27
(2) THE EMPLOYER 28
(A) IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS 29
NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL 30
SOCIAL SECURITY SYSTEM; OR 31
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(B) WITHDRAWS FROM MEMBERSHIP IN THE 1
FEDERAL SOCIAL SECURITY SYSTEM]. 2
* Sec. 4. AS 39.30.170 is amended by adding a new subsection to read: 3
(e) An employee required to contribute to a benefit program established under 4
(a)(2) of this section may contribute to the benefit program an amount that, when 5
combined with an amount required under (a)(2) of this section, does not exceed 6.13 6
percent of the wages of the employee up to the taxable wage base then in effect in the 7
social security system. 8
* Sec. 5. AS 39.30.180(3) is amended to read: 9
(3) "participating employer" means 10
(A) the State of Alaska; [AND] 11
(B) an employer, other than the Board of Regents of the 12
University of Alaska, who 13
(i) [WHO] is an employer as defined in AS 14.25.220, 14
14.25.590, AS 39.35.680, or 39.35.990; and 15
(ii) does not participate [WHO HAS NEVER 16
PARTICIPATED IN OR HAS WITHDRAWN FROM 17
PARTICIPATION] in the federal social security system [; AND 18
(iii) WHOSE PARTICIPATION IN THE 19
SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN 20
APPROVED BY THE COMMISSIONER]. 21
* Sec. 6. This Act takes effect July 1, 2029. 22