CSSB 55(L&C): "An Act relating to supplemental employee benefits; and providing for an effective date."
00 CS FOR SENATE BILL NO. 55(L&C) 01 "An Act relating to supplemental employee benefits; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 39.30.150(a) is amended to read: 05 (a) In place of contributions to the federal social security system that would 06 have been required on behalf of an employee had the participating employer belonged 07 to the social security system, a [THE] participating employer in the public 08 employees' retirement system (AS 39.35) shall contribute an amount equal to 6.13 09 percent of the wages of the employee up to the taxable wage base then in effect in the 10 social security system, and a participating employer in the teachers' retirement 11 system (AS 14.25) shall contribute an amount required under (d) of this section. 12 For each employee, the contributions required under this subsection and (d) - (g) 13 of this section [. THIS CONTRIBUTION] shall be paid into an individual employee 14 annuity account in the Department of Administration under the terms of the State of
01 Alaska Supplemental Annuity Plan. The department shall pay 6.13 percent of the 02 wages of the employee up to the taxable wage base then in effect in the social security 03 system into the individual employee annuity account established under this subsection. 04 This wage reduction shall be treated as an employer contribution under 26 U.S.C. 05 414(h)(2). All costs of establishing and administering the programs established under 06 AS 39.30.150 - 39.30.180 shall be paid from the contributions made to the individual 07 employee annuity accounts under this section. 08 * Sec. 2. AS 39.30.150 is amended by adding new subsections to read: 09 (d) A participating employer in the teachers' retirement system (AS 14.25) 10 shall contribute an amount equal to 6.13 percent of the wages of the employee up to 11 the taxable wage base then in effect in the social security system, less a contribution 12 by the department, if applicable, under (e) of this section. 13 (e) Of the amount under (d) of this section equal to 6.13 percent of the wages 14 of the employee up to the taxable wage base then in effect in the social security 15 system, the department shall contribute 16 (1) for the fiscal years ending June 30, 2027, through June 30, 2029, 17 100 percent; 18 (2) for the fiscal years ending June 30, 2030, through June 30, 2033, 19 66 and two-thirds percent; 20 (3) for the fiscal years ending June 30, 2034, through June 30, 2037, 21 33 and one-third percent. 22 (f) An employee in the teachers' retirement system (AS 14.25) shall contribute 23 an amount equal to 6.13 percent of the wages of the employee up to the taxable wage 24 base then in effect in the social security system, less a contribution by the department, 25 if applicable, under (g) of this section. 26 (g) Of the amount under (f) of this section equal to 6.13 percent of the wages 27 of the employee up to the taxable wage base then in effect in the social security 28 system, the department shall contribute 29 (1) for the fiscal years ending June 30, 2027, through June 30, 2029, 30 100 percent; 31 (2) for the fiscal years ending June 30, 2030, through June 30, 2033,
01 66 and two-thirds percent; 02 (3) for the fiscal years ending June 30, 2034, through June 30, 2037, 03 33 and one-third percent. 04 * Sec. 3. AS 39.30.170(a) is amended to read: 05 (a) An employer in either the teachers' retirement system (AS 14.25) or the 06 public employees' retirement system (AS 39.35) that does not participate in the 07 federal social security system shall [MAY] become a participating employer in the 08 employee benefits program under AS 39.30.150 - 39.30.180 [, IF 09 (1) THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN 10 THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35; AND 11 (2) THE EMPLOYER 12 (A) IS ELIGIBLE FOR MEMBERSHIP IN BUT HAS 13 NEVER ELECTED TO BECOME A MEMBER OF THE FEDERAL 14 SOCIAL SECURITY SYSTEM; OR 15 (B) WITHDRAWS FROM MEMBERSHIP IN THE 16 FEDERAL SOCIAL SECURITY SYSTEM]. 17 * Sec. 4. AS 39.30.180(3) is amended to read: 18 (3) "participating employer" means 19 (A) the State of Alaska; [AND] 20 (B) an employer who 21 (i) [WHO] is an employer as defined in AS 14.25.220, 22 14.25.590, AS 39.35.680, or 39.35.990; and 23 (ii) does not participate [WHO HAS NEVER 24 PARTICIPATED IN OR HAS WITHDRAWN FROM 25 PARTICIPATION] in the federal social security system [; AND 26 (iii) WHOSE PARTICIPATION IN THE 27 SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM HAS BEEN 28 APPROVED BY THE COMMISSIONER]. 29 * Sec. 5. This Act takes effect July 1, 2026.