AK SB88

Creates new defined benefit retirement plan tiers for teachers and public employees hired after June 30, 2006, with employee contribution rates of 8 percent (compared to lower rates for earlier hires).

Allows teachers and public employees hired after June 30, 2006 to make a one-time election within 90 days of hire to participate in the defined contribution plan instead of the defined benefit plan, with contributions transferred retroactively.

Establishes health insurance premium cost-sharing for members hired after June 30, 2006, with percentages based on years of service and Medicare eligibility, subject to adjustment every five years starting July 1, 2021.

Requires disability benefit recipients hired after June 30, 2006 to apply for vocational rehabilitation within 30 days and enroll in programs, with benefits terminating if they fail to comply without cause.

Allows existing defined contribution plan members hired between July 1, 2006 and the bill's effective date to elect back into the defined benefit plan within 90 days, with employer and employee contributions transferred retroactively.