04/16/2026 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 78(FIN) am(efd fld)                                                                                     
                                                                                                                                
     "An  Act relating  to the  public employees'  retirement                                                                   
     system   and  the  teachers'   retirement  system;   and                                                                   
     providing  certain employees  an  opportunity to  choose                                                                   
     between  the defined  benefit  and defined  contribution                                                                   
     plans  of the  public employees'  retirement system  and                                                                   
     the teachers' retirement system."                                                                                          
                                                                                                                                
9:10:34 AM                                                                                                                    
                                                                                                                                
Senator Kiehl MOVED to ADOPT the committee substitute for                                                                       
CSHB 78(FIN) am(efd fld), Work Draft 34-LS0493\T (Wayne,                                                                        
4/10/26).                                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
9:10:53 AM                                                                                                                    
                                                                                                                                
LIZ HARPOLD, STAFF, SENATOR DONNY OLSON, discussed the                                                                          
Explanation      of     Changes      (copy     on      file):                                                                   
                                                                                                                                
     Section 8:  Amends AS 14.25.050(e)  to allow  the Alaska                                                                   
     Retirement   Management  (ARM)   Board  to  adjust   the                                                                   
     contribution  rate of  Teacher  Retirement System  (TRS)                                                                   
     defined  benefit  (DB)  plan  participants  to  a  value                                                                   
     above 12 percent but not below 8 percent.                                                                                  
     Section 33:  Amends AS 14.25.480(a)(2) to  require a TRS                                                                   
     member  who  reaches  normal  retirement  age,  with  at                                                                   
     least 10  years of  service but less  than 25  years, to                                                                   
     have  been  an active  member  for  at least  12  months                                                                   
     immediately  before applying  for retirement  to receive                                                                   
     medical benefits.                                                                                                          
     Section  65: Amends  AS 39.35.160(e)  to  allow the  ARM                                                                   
     Board  to   adjust  the  contribution  rate   of  Public                                                                   
     Employee Retirement  System (PERS) DB  plan participants                                                                   
     to a value above 12 percent but not below 8 percent.                                                                       
     Section  70: Amends AS  39.35.255(a)(1) to  increase the                                                                   
     upper limit  of the PERS  DB employer contribution  rate                                                                   
     from 22 percent to 24 percent.                                                                                             
     Section  92:  Amends  AS 39.35.870(a)(2)  to  require  a                                                                   
     PERS  member, who  reaches normal  retirement age,  with                                                                   
     at  least 10 years  of service  but less  than 20  or 25                                                                   
     years, depending  on occupation, to have  been an active                                                                   
     member  for  at  least  12   months  immediately  before                                                                   
     applying for retirement to receive medical benefits.                                                                       
                                                                                                                                
9:12:32 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman WITHDREW the OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman stated that the intent of adopting the CS                                                                      
was to ensure that the public testimony would be applied to                                                                     
the most recent version of the legislation.                                                                                     
                                                                                                                                
CSHB 78(FIN) am(efd fld) was HEARD and HELD in committee                                                                        
for further consideration.                                                                                                      
                                                                                                                                
Co-Chair Stedman stated that the next meeting would be held                                                                     
the following Monday, and would be announced later the                                                                          
current day.