AK SB211

Allows retired peace officers and firefighters to use up to five years of credited military service to meet major medical insurance coverage requirements under AS 39.35.535(c).

Establishes calculation method for military service indebtedness based on employee compensation multiplied by years of service and a percentage rate (6% for members eligible before January 1, 1987, or 8.5% for those eligible on or after that date).

Requires additional indebtedness to be calculated for each year of military service used for insurance coverage eligibility, based on the increase in present value of future benefits as determined by the department.

Provides that interest on military service indebtedness accrues beginning July 1, 1977, or one year after vesting, whichever is later, and outstanding indebtedness at retirement requires an actuarial adjustment to pension benefits.

Takes effect immediately upon enactment.