Alaska public employers would phase in supplemental benefit contributions

A participating employer and its employees would contribute to an employee annuity account at a phased-in rate. It covers the employer and employees when the employer first joins the program after June 30, 2029. This schedule applies when an employer first becomes a participating employer after June 30, 2029. An employee may contribute more, but the combined contributions may not exceed 6.13 percent of covered wages. The rate would be 1 percent for the first 12 months, then rise by one percentage point each year through year five. After that, the regular 6.13 percent rate would apply.

A public retirement system employer outside Social Security would join the state benefits program or provide a different supplemental plan. This applies to an employer in Alaska’s teachers’ or public employees’ retirement system that does not participate in Social Security. The different plan would require the employer and each employee who belongs to the retirement system to contribute. Employees in that plan could add contributions, but the combined amount could not exceed 6.13 percent of covered wages. For the different plan, contributions would rise from 1 percent in the first 12 months to 5 percent in the fifth 12-month period, then reach 6.13 percent. The act would take effect July 1, 2029.