HB 11 Summary

• Establishes temporary retirement incentive programs for members of the Teachers' Retirement System and Public Employees' Retirement System to help state agencies, municipalities, school districts, and the University of Alaska reduce operating costs.

• Eligible employees must be at least 50 years old, vested members with service credit before July 1, 2006, and have at least 17 years of service (peace officers/firefighters) or 20 years of service (other employees); participants receive a 3-year service credit.

• Participating employees incur indebtedness to their retirement plan calculated as a percentage of compensation (25.95% for teachers, 22.5% for peace officers, 20.25% for other public employees) that can be paid with leave balances or deducted from retirement benefits.

• Employers must reimburse the retirement plan within 3 years for the actuarial cost of the benefit increase and must reduce operating costs by more than the program's costs within 3 years; state agencies must adopt a no-hire policy.

• Retirees cannot be reemployed by the state or University of Alaska for 3 years following retirement under this program, with limited exceptions for teaching, legislative work, or substitute teaching; the entire program expires July 1, 2020.