CSSB 198(L&C): "An Act relating to the teachers' defined contribution retirement plan; relating to the public employees' defined contribution retirement plan; and providing for an effective date."
00 CS FOR SENATE BILL NO. 198(L&C) 01 "An Act relating to the teachers' defined contribution retirement plan; relating to the 02 public employees' defined contribution retirement plan; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25.470(a) is amended to read: 06 (a) In order to obtain medical benefits under AS 14.25.480, a member must 07 retire [DIRECTLY] from the plan. A member is eligible to retire from the plan if 08 [THE MEMBER HAS BEEN AN ACTIVE MEMBER FOR AT LEAST 12 09 MONTHS BEFORE APPLICATION FOR RETIREMENT AND] 10 (1) the member has at least 25 [30] years of service; or 11 (2) the member reaches the normal retirement age, [AND] has at least 12 10 years of service, and has been an active member for at least 12 months 13 immediately before retirement from the plan. 14 * Sec. 2. AS 39.30.380 is amended to read:
01 Sec. 39.30.380. Termination of employment. A person who terminates 02 employment before meeting the eligibility requirements of AS 14.25.470 or 03 AS 39.35.870 loses any right to the contributions made on behalf of the person to the 04 teachers' and public employees' retiree health reimbursement arrangement trust fund. 05 If a person returns to employment with a participating employer by December 31 of 06 the year in which the person reaches 65 years of age, the person's account balance 07 shall be restored in the amount recorded on the date of termination from the trust plus 08 interest added by the administrator for each year between the date of 09 termination and the date of the person's return to employment [, ADJUSTED 10 FOR INFLATION] at the rate established by the board under AS 39.30.370 [OF 11 THE CONSUMER PRICE INDEX FOR ANCHORAGE, ALASKA]. The earlier 12 period of employment with a participating employer shall be credited toward 13 eligibility for medical benefits. 14 * Sec. 3. AS 39.35.870(a) is amended to read: 15 (a) In order to obtain medical benefits under AS 39.35.880, an active member 16 must retire [DIRECTLY] from the plan. A member is eligible to retire from the plan if 17 [THE MEMBER HAS BEEN AN ACTIVE MEMBER FOR AT LEAST 12 18 MONTHS BEFORE APPLICATION FOR RETIREMENT AND] 19 (1) the member has at least 20 [25] years of membership service as a 20 peace officer or firefighter or at least 25 [30] years of membership service for all other 21 employees; or 22 (2) the member reaches the normal retirement age, [AND] has at least 23 10 years of membership service, and has been an active member for at least 12 24 months immediately before retirement from the plan. 25 * Sec. 4. This Act takes effect July 1, 2026.