AK HB395

Peace officers and firefighters hired after June 30, 2006, are made eligible to participate in the defined benefit retirement plan under AS 39.35.095-39.35.680 instead of being limited to the defined contribution plan.

Peace officers and firefighters hired after June 30, 2006, must contribute 8 percent of compensation to the defined benefit plan (adjustable between 8-10 percent by the board), and employers must contribute at least 12 percent but not more than 22 percent of total peace officer/firefighter compensation.

Peace officers and firefighters hired after June 30, 2006, are eligible for normal retirement at age 55 with 20 years of credited service or at age 60 with 5 years of credited service.

Peace officers and firefighters hired after June 30, 2006, are entitled to medical benefits through the retiree major medical insurance plan and health reimbursement arrangement plan, with premium costs varying based on years of service and Medicare eligibility.

Existing peace officers and firefighters hired between June 30, 2006, and the effective date may elect within 90 days to transfer from the defined contribution plan to the defined benefit plan, with transferred contributions used to purchase credited service on an actuarial equivalent basis.