Retirement Benefits
Public Employee Retirement System (PERS) Defined Contribution Plan Chart
Download this chart from the state of Alaska's Introduction to the Defined Contribution Retirement Plan document (PDF)
| Feature |
Tier IV
7/1/06 - Present |
Employee
Contribution |
Pre-tax contribution:
8% all employees |
Employer
Contribution |
5% - DC account
1.75% Health Plan - determined by annual actuarial valuation after FY07.
HRA - Flat dollar amount per employee based on 3% of the employer’s average annual employee compensation.
0.4% Disability - P/F, 0.3% all others |
| Vesting |
100% vested in employee contributions from inception. Vested in employer contributions based on the following schedule:
25% after 2 years of service, 50% after 3 years, 75% after 4 years and 100% after five years. |
Qualifications
for
Retirement |
None for investment account. Taxes and penalties may apply if withdrawn before age 59 1/2. See requirements for Retirement Medical Coverage. |
Benefit
Calculation
Formula |
DC account balance plus investment earnings. |
Alaska
Cost-of-Living
Increases
(COLA) |
None provided. |
Post
Retirement
Pension
Adjustments
(PRPA)
(Inflation
Protection) |
None provided. |
Retirement
Medical
Coverage |
Access to medical coverage at Medicare eligible age with 10 years of service or at any age with 25 years of police/fire service or with 30 years of service for all others. Must retire directly from system. If not eligible for Medicare, must pay full premium. May use health reimbursement arrangement (HRA) account to pay premiums. Once HRA is exhausted, member self-pays premiums. When eligible for Medicare, the percentage of premium paid by retiree or surviving spouse is:
10-14 years of service -30%
15-19 years - 25%
20-24 years - 20%
25-29 years - 15%
30 years or more - 10% |
Disability
Benefits |
Must be a total and presumably permanent disability whose cause is directly related to performance of duties of the job or an on the job injury. Benefit is 40% of salary, earns service while on occupational disability. Employer continues to make all required contributions as if member were working, plus member’s required contributions to the DC account, without deduction from member’s disability payment. Disability benefits cease when member becomes eligible for normal retirement at Medicare eligible age and 10 years of service or at any age with 25 years of police/fire service or with 30 years of service for all others. No medical insurance until eligible for normal retirement. |
|
 |
|
