00                            SENATE BILL NO. 55                                                                          
01 "An Act relating to employer contributions in the teachers' retirement system; relating                                 
02 to supplemental employee benefits; and providing for an effective date."                                                
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 14.25.070(a) is amended to read:                                                                 
05 (a)  Each employer shall contribute to the system every payroll period an                                               
06 amount calculated by applying a rate of 14.56 [12.56] percent to the total of all base                              
07 salaries paid by the employer to active members of the system and to members who                                        
08 are retired from the plan and reemployed under AS 14.20.136, including any                                              
09       adjustments to contributions required by AS 14.25.173(a).                                                         
10    * Sec. 2. AS 14.25.350(a) is amended to read:                                                                      
11            (a)  An employer shall contribute to each member's individual account an                                     
12       amount equal to nine [SEVEN] percent of the member's compensation from July 1 to                              
13       the following June 30.                                                                                            
14    * Sec. 3. AS 39.30.170(a) is amended to read:                                                                      

01 (a)  An employer in either the teachers' retirement system (AS 14.25) or the                                        
02 public employees' retirement system (AS 39.35) that does not participate in the                                     
03 federal social security system shall [MAY] become a participating employer in the                                   
04       employee benefits program under AS 39.30.150 - 39.30.180 [, IF                                                    
05                 (1)  THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN                                                        
06       THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND                                                       
07                 (2)  THE EMPLOYER                                                                                       
08                      (A)  IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS                                                         
09            NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL                                                              
10            SOCIAL SECURITY SYSTEM; OR                                                                                   
11                      (B)  WITHDRAWS FROM MEMBERSHIP IN THE                                                              
12            FEDERAL SOCIAL SECURITY SYSTEM].                                                                             
13    * Sec. 4. AS 39.30.180(3) is amended to read:                                                                      
14                 (3)  "participating employer" means                                                                     
15                      (A)  the State of Alaska; [AND]                                                                    
16                      (B)  an employer who                                                                           
17                           (i)  [WHO] is an employer as defined in AS 14.25.220,                                     
18                 14.25.590, AS 39.35.680, or 39.35.990; and                                                  
19                           (ii)  does not participate [WHO HAS NEVER                                                 
20                 PARTICIPATED IN OR HAS WITHDRAWN FROM                                                                   
21                 PARTICIPATION] in the federal social security system [; AND                                             
22                           (iii)  WHOSE PARTICIPATION IN THE                                                             
23                 SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN                                                          
24                 APPROVED BY THE COMMISSIONER].                                                                          
25    * Sec. 5. This Act takes effect July 1, 2025.