CSSB 88(FIN) - Summary

• Allows teachers and public employees hired after June 30, 2006, who were enrolled in defined contribution plans to make a one-time election to switch to defined benefit retirement plans before January 1, 2025, with a 180-day window after reemployment.

• Teachers and employees who switch must transfer their defined contribution account balances (including investment earnings) to purchase credited service in the defined benefit plan on an actuarially equivalent basis.

• Closes defined contribution plan enrollment after June 30, 2006, requiring all new members hired after July 1, 2024, to participate in defined benefit plans; existing defined contribution participants can remain unless they elect to switch.

• Establishes new medical benefit provisions (AS 14.25.171 and AS 39.35.537) for members hired after June 30, 2006, with eligibility based on service years and age, including premium cost-sharing structures.

• Takes effect July 1, 2024, with transition provisions allowing eligible members to make plan elections by January 1, 2025, and requires the Alaska Retirement Management Board and Commissioner of Administration to adopt implementing regulations.