Bill > SB55

This bill modifies employer and employee contributions to the Teachers' Retirement System (TRS) and Public Employees' Retirement System (PERS) in relation to Social Security supplemental benefits. Specifically, the bill requires participating employers in the teachers' retirement system to contribute 6.13 percent of an employee's wages up to the Social Security taxable wage base, with a unique phased department contribution schedule: from fiscal years 2027-2029, the department will contribute 100 percent of this amount; from 2030-2033, the department will contribute 66.67 percent; and from 2034-2037, the department will contribute 33.33 percent. Similarly, employees in the teachers' retirement system will also contribute 6.13 percent of their wages, with the same phased department contribution structure. The bill also expands the definition of "participating employer" to include employers in the teachers' retirement system who do not participate in the federal Social Security system, and removes previous restrictions on which employers could join the supplemental employee benefit program. The changes aim to provide more flexibility for employers in the teachers' and public employees' retirement systems regarding Social Security supplemental benefits. The bill is set to take effect on July 1, 2026.

Budget and Finance, Business and Industry

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB55