PUBLIC EMPLOYER PENSION CONTRIBUTIONS

Plain English Breakdown

The candidate explanation included the Teachers' Retirement System, but the official bill title and Section 1 only reference AS 39.35 (Public Employees). The source material does not support changes to the teachers' system.

SB81: Minimum Employer Pension Contributions in Alaska

This bill sets a minimum amount that employers must pay into the Public Employees' Retirement System of Alaska.

What This Bill Does

• Sets a floor for how much money an employer must contribute each year to retirement plans.
• Requires contributions to cover the normal cost of current employee benefits.
• Mandates payments calculated by state law to pay off past service debt in the plan.
• Includes required contributions under specific sections of Alaska statutes 39.30 and 39.35.

Who It Names or Affects

• Employers who participate in the Public Employees' Retirement System of Alaska

Terms To Know

Normal cost

The amount needed to fund retirement benefits for current work performed by employees.

Past service liability

Money owed from the past that must be paid off over time to fully fund the plan.

Limits and Unknowns

• The bill does not state a specific dollar amount or percentage for these contributions.
• The exact date this law starts is listed as immediate, but no calendar year is provided in the text.

Official Summary Text

PUBLIC EMPLOYER PENSION CONTRIBUTIONS
An Act relating to employer contribution rates in the teachers' retirement system and the Public Employees' Retirement System of Alaska; and providing for an effective date.

Current Bill Text

SB0081B -1- CSSB 81(L&C)
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0110\N

CS FOR SENATE BILL NO. 81(L&C)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE LABOR AND COMMERCE COMMITTEE

Offered: 2/11/26
Referred: Finance

Sponsor(s): SENATOR STEDMAN
A BILL

FOR AN ACT ENTITLED

"An Act relating to employer contribution rates in the Public Employees' Retirement 1
System of Alaska; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 39.35.255(d) is amended to read: 4
(d) Notwithstanding (a) of this section, the annual employer contribution rate 5
may not be less than the rate sufficient to allow payment of 6
(1) the employer normal cost; 7
(2) an amount calculated at the rate certified under 8
AS 37.10.220(a)(8) for liquidating past service liability of the plan; and 9
(3) the employer contributions required under AS 39.30.370 and 10
AS 39.35.750. 11
* Sec. 2. This Act takes effect immediately under AS 01.10.070(c). 12