AK HB378

Allows teachers who are members of both the Public Employees' Retirement System (PERS) defined benefit plan and the Teachers' Retirement System (TRS) defined contribution plan to elect participation in the TRS defined benefit plan instead

Creates nonoccupational disability benefits for defined contribution plan members with 10+ years of service, providing 40% of gross monthly compensation until normal retirement age, with employers continuing retirement contributions during disability

Waives retiree major medical insurance premiums for disabled members and surviving spouses who are not eligible for Medicare

Changes employer contribution calculations for PERS to use the lesser of 22% of current base salaries or 75% of the five-year average, and caps late contribution interest at the actuarial earnings rate (removing the 1.5x multiplier)

Grants seasonal employees one year of credited service for each 12-month period in which they work at least 1,560 hours; effective date July 1, 2026