SB 198 — An Act relating to the teachers' defined contribution retirement plan; relating to the public employees' defined contribution retirement plan; and providing for an effective date.

34-LS0943\I34-LS0943\A CS FOR SENATE BILL NO.

198(L&C)198 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - SECONDFIRST SESSION BY THESENATOR SENATEKAUFMAN LABORIntroduced: AND COMMERCE COMMITTEE Referred:

Finance5/19/25 Sponsor(s):Referred:

SENATORLabor KAUFMANand Commerce, Finance A BILL FOR AN ACT ENTITLED "An Act relating to the teachers' defined contribution retirement plan;

AS 14.25.480(g) is amended to read:

SB0198A -1- SB 198 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0943\A (g) The cost of premiums for retiree major medical insurance coverage for an eligible member or surviving spouse who is (1) not eligible for Medicare is an amount equal to the full monthly group premiums for retiree major medical insurance coverage;

(2) eligible for Medicare is the following percentage of the premium amounts established for retirees who are eligible for Medicare:

(A) 30 percent if the member had 10 or more, but less than 15, years of service;

(B) 25 percent if the member had 15 or more, but less than 20, years of service;

(C) 20 percent if the member had 20 or more, but less than 25, years of service;

(D) [15 PERCENT IF THE MEMBER HAD 25 OR MORE, BUT LESS THAN 30, YEARS OF SERVICE;

(E)] 10 percent if the member had 25 [30] or more years of service.

* Sec.

3.

SB0198B -1- CSSB 198(L&C) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0943\I Sec.

3.4.

SB 198 -2- SB0198A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0943\A (a) In order to obtain medical benefits under AS 39.35.880, an active member must retire [DIRECTLY] from the plan.

A member is eligible to retire from the plan if [THE MEMBER HAS BEEN AN ACTIVE MEMBER FOR AT LEAST 12 MONTHS BEFORE APPLICATION FOR RETIREMENT AND] (1) the member has at leastleast20 20 [25] years of membership service as a peace officer or firefighter or at least 25 [30] years of membership service for all other employees;

4.5.

AS 39.35.880(g) is amended to read:

(g) The cost of premiums for retiree major medical insurance coverage for an eligible member or surviving spouse who is (1) not eligible for Medicare is an amount equal to the full monthly group premiums for retiree major medical insurance coverage;

(2) eligible for Medicare is the following percentage of the premium amounts established for retirees who are eligible for Medicare:

(A) 30 percent if the member had 10 or more, but less than 15, years of service;

(B) 25 percent if the member had 15 or more, but less than 20, years of service;

(C) 20 percent if the member had 20 or more, but less than 25, years of service;

(D) [15 PERCENT IF THE MEMBER HAD 25 OR MORE, BUT LESS THAN 30, YEARS OF SERVICE;

(E)] 10 percent if the member had 25 [30] or more years of service.

* Sec.

6.

CSSBSB0198A 198(L&C)-3- -2-SB SB0198B198 New Text Underlined [DELETED TEXT BRACKETED]