AK SB121

Creates new defined benefit tiers for teachers hired after June 30, 2006, and public employees hired after June 30, 2006, with modified contribution rates of 8 percent instead of the standard rates.

Allows teachers and public employees hired after the effective date to make a one-time irrevocable election within 90 days to participate in either the defined benefit or defined contribution retirement plan, with transfer of all contributions made.

Permits employees hired between July 1, 2006, and the effective date of this section who are in the defined contribution plan to elect to transfer back to the defined benefit plan within 90 days, with service credit conversion.

Establishes automatic participation of eligible elected officials of political subdivisions earning at least $2,001 per month in the public employees' retirement system, with a 30-day waiver option.

Takes effect July 1, 2013, with regulations to be adopted by the commissioner of administration.