Bill > SB198

This bill modifies retirement and medical eligibility provisions for teachers and public employees in Alaska, primarily adjusting service years requirements and premium cost-sharing for retiree medical insurance. Specifically, the bill reduces the years of service needed to qualify for retirement benefits from 30 to 25 years for most employees, and from 25 to 20 years for peace officers and firefighters. The bill also removes the requirement that members must retire "directly" from the plan and adds a stipulation that members must have been active for at least 12 months immediately before retirement. Additionally, the bill changes the premium cost-sharing percentages for Medicare-eligible retirees based on years of service, eliminating the intermediate tier for members with 25-30 years of service. For employees who terminate employment before meeting eligibility requirements, the bill modifies how their account balance is restored upon returning to employment, replacing inflation adjustment with an interest rate established by the board. These changes aim to provide more flexibility and potentially more affordable retirement options for public sector employees in Alaska, with the modifications set to take effect on July 1, 2026.

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https://www.akleg.gov/basis/Bill/Detail/34?Root=SB198