SB 55 — An Act relating to employer contributions in the teachers' retirement system; relating to supplemental employee benefits; and providing for an effective date.

34-LS0301\N34-LS0301\A CS FOR SENATE BILL NO.

55(L&C)55 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - SECOND SESSION BY THESENATORS SENATESTEDMAN, LABORMyers, ANDShower, COMMERCECronk, COMMITTEEKaufman Referred:Introduced:

Finance1/24/25 Sponsor(s):Referred:

SENATORSLabor STEDMAN,and Myers,Commerce, Shower,Finance Cronk, Kaufman A BILL FOR AN ACT ENTITLED "An Act relating to supplementalemployer employeecontributions benefits;in the teachers' retirement system;

relating to supplemental employee benefits;

AS 39.30.150(a)14.25.070(a) is amended to read:

(a) InEach placeemployer ofshall contributionscontribute to the federalsystem socialevery securitypayroll systemperiod thatan wouldamount havecalculated beenby requiredapplying ona behalfrate of an14.56 employee[12.56] hadpercent the participating employer belonged to the socialtotal securityof system,all abase [THE]salaries participatingpaid employerby in the publicemployer employees' retirement system (AS 39.35) shall contribute an amount equal to 6.13active percentmembers of the wagessystem ofand the employee up to themembers taxablewho wageare baseretired thenfrom in effect in the socialplan security system, and areemployed participatingunder employerAS in14.20.136, theincluding teachers'any retirementadjustments systemto (AScontributions 14.25) shall contribute an amount required underby (d)AS of14.25.173(a). this section.

For each employee, the contributions required under this subsection and (d) - (g) of this section [.

THIS CONTRIBUTION] shall be paid into an individual employee annuity account in the Department of Administration under the terms of the State of SB0055B -1- CSSB 55(L&C) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0301\N Alaska Supplemental Annuity Plan.

The department shall pay 6.13 percent of the wages of the employee up to the taxable wage base then in effect in the social security system into the individual employee annuity account established under this subsection.

This wage reduction shall be treated as an employer contribution under 26 U.S.C.

414(h)(2).

All costs of establishing and administering the programs established under AS 39.30.150 - 39.30.180 shall be paid from the contributions made to the individual employee annuity accounts under this section.

AS 39.30.15014.25.350(a) is amended by adding new subsections to read:

(d)(a) AAn participating employer inshall thecontribute teachers'to retirementeach systemmember's (ASindividual 14.25)account shall contribute an amount equal to 6.13nine [SEVEN] percent of the wagesmember's ofcompensation thefrom employeeJuly up1 to the taxablefollowing wageJune base30. then in effect in the social security system, less a contribution by the department, if applicable, under (e) of this section.

(e) Of the amount under (d) of this section equal to 6.13 percent of the wages of the employee up to the taxable wage base then in effect in the social security system, the department shall contribute (1) for the fiscal years ending June 30, 2027, through June 30, 2029, 100 percent;

(2) for the fiscal years ending June 30, 2030, through June 30, 2033, 66 and two-thirds percent;

(3) for the fiscal years ending June 30, 2034, through June 30, 2037, 33 and one-third percent.

(f) An employee in the teachers' retirement system (AS 14.25) shall contribute an amount equal to 6.13 percent of the wages of the employee up to the taxable wage base then in effect in the social security system, less a contribution by the department, if applicable, under (g) of this section.

(g) Of the amount under (f) of this section equal to 6.13 percent of the wages of the employee up to the taxable wage base then in effect in the social security system, the department shall contribute (1) for the fiscal years ending June 30, 2027, through June 30, 2029, 100 percent;

(2) for the fiscal years ending June 30, 2030, through June 30, 2033, CSSB 55(L&C) -2- SB0055B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0301\N 66 and two-thirds percent;

(3) for the fiscal years ending June 30, 2034, through June 30, 2037, 33 and one-third percent.

SB0055A -1- SB 55 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0301\A (a) An employer in either the teachers' retirement system (AS 14.25) or the public employees' retirement system (AS 39.35) that does not participate in the federal social security system shall [MAY] become a participating employer in the employee benefits program under AS 39.30.150 - 39.30.180 [, IF (1) THE EMPLOYER PARTICIPATES AS AN EMPLOYER IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNDER AS 39.35;

This Act takes effect July 1, 2026.2025.

SB0055BSB -3-55 CSSB-2- 55(L&C)SB0055A New Text Underlined [DELETED TEXT BRACKETED]