AK SB198

Reduces the service requirement for teachers to qualify for retiree medical benefits from 30 years to 25 years under the defined contribution retirement plan

Reduces the service requirement for public employees to qualify for retiree medical benefits from 30 years to 25 years (or from 25 years to 20 years for peace officers and firefighters)

Removes the requirement that members retire "directly" from the plan, instead requiring 12 months of active membership immediately before retirement only for those retiring based on age plus 10 years of service

Changes how restored account balances are calculated for employees who return to work after termination, using a board-established interest rate rather than the Anchorage Consumer Price Index for inflation adjustment

Effective date: July 1, 2026