AK HB54

Repeals the defined contribution retirement plans for teachers (AS 14.25.310-14.25.590) and public employees (AS 39.35.700-39.35.990) and establishes defined benefit plans as the primary retirement structure for both groups.

Allows teachers and public employees hired on or after July 1, 2006, who are currently in the defined contribution plan to make a one-time irrevocable election before September 1, 2009, to switch to the defined benefit plan and transfer their accumulated contributions.

Transfers service credit to switching employees based on their actual service or the actuarially calculated value of employer and employee contributions transferred, whichever is less.

Changes benefit increase provisions to give the board (instead of administrator) discretion to increase benefit payments when cost of living increases and fund financial condition permits, removing the 105 percent fund-to-liability ratio requirement.

Requires the commissioner of administration to adopt implementing regulations and directs the revisor of statutes to submit conforming amendments clarifying that both retirement systems consist only of defined benefit plans.