Vote Smart's Synopsis:

Vote to pass a bill that authorizes choice on the pension plans available to Alaska teachers for retirement.

Highlights:

• Increases the amount public employee’s would be required to pay into the new pension system from the previous specified amount (Sec. 2).

• Prohibits health insurance from being included in the new system and establishes a small health savings account to cover the time between retirement and the minimum age for Medicare (Sec. 10).

• Authorizes current state employees the opportunity to switch from the state’s existing 401(k)-style retirement system into the new system (Sec. 27).

• Requires all new state employee’s to enroll and use the new pension system (Sec. ).

• Authorizes police, firefighters, adn other public safety employees to retire at the following ages and years of service (Sec. 71):

• At age 50 with 25 years of service;

• At age 55 with 20 years of service; and

• At age 60 with 30 years of service.

• Specifies that retirement payments shall be based on an employee’s 5 highest consecutive years of salary, and benefits, and shall not be available for any individual who works less than 5 years (Sec. 26).

• Prohibits any cost of living bonuses for retirees who live in Alaska (Sec. 73).

• Specifies that the state supplemental benefit system which currently authorizes employees to save an additional 6.12%  of their income shall remain untouched (Sec. 86).

• Specifies that the provisions of this bill shall take effect July 1, 2024 (Sec. 95).

Full Bill Text