| Feature |
Tier I
1/1/61 - 6/30/86 |
Tier II
7/1/86 - 6/30/96 |
Tier III
7/1/96 - 6/30/06 |
Employee
Contribution |
Pre-tax contribution:
6.75% beginning 1/1/87-all others
7.5% beginning 1/1/87 police & fire
9.6% beginning 7/1/99 school district |
Pre-tax contribution:
6.75% beginning 1/1/87-all others
7.5% beginning 1/1/87 police & fire
9.6% beginning 7/1/99 school district |
Pre-tax contribution:
6.75% beginning 1/1/87-all others
7.5% beginning 1/1/87 police & fire
9.6% beginning 7/1/99 school district |
Employer
Contribution |
Determined by annual actuarial valuation. |
Determined by annual actuarial valuation. |
Determined by annual actuarial valuation. |
| Vesting |
Members vest with 5 years of service. |
Members vest with 5 years of service. |
Members vest with 5 years of service |
Qualifications
for
Retirement |
Normal retirement age is 55, with early retirement at age 50; police/fire can retire at any age after 20 years of police/fire service; all others can retire at any age after 30 years of membership service. |
Normal retirement age is 60, with early retirement at age 55; police/fire can retire at any age after 20 years of police/fire service; all others can retire at any age after 30 years of membership service. |
Normal retirement age is 60, with early retirement at age 55; police/fire can retire at any age after 20 years of police/fire service; all others can retire at any age after 30 years of membership service. |
Benefit
Calculation
Formula |
Benefit formula is 2% for first 10 years and all years of service prior to July 1, 1986, 2.25% for next 10 years, 2.5% thereafter. Benefit calculation is determined on the average of the high three consecutive years’ salary.
Police/Fire - 2% x 10, 2.5% over 10 |
Benefit formula is 2% for first 10 years, 2.25% for next 10 years, 2.5% thereafter. Benefit calculation is determined on the average of the high three consecutive years’ salary.
Police/Fire - 2% x 10, 2.5% over 10 |
Benefit formulas did not change; however, benefit calculation is determined on the average of the high five consecutive years’ salary.
Police/Fire - average of the high three consecutive years regardless of tier. (Effective 2002). |
Alaska
Cost-of-Living
Increases
(COLA) |
An Alaska Cost-of-Living Allowance is payable to benefit recipients who remain domiciled in Alaska after retirement. The allowance is $50 or 10% of the base benefit, whichever is greater. |
An Alaska Cost-of-Living Allowance is payable to benefit recipients 65 or older or disability benefit recipients regardless of age who remain domiciled in Alaska after retirement. The allowance is $50 or 10% of the base benefit, whichever is greater. |
An Alaska Cost-of-Living Allowance is payable to benefit recipients 65 or older or disability benefit recipients regardless of age who remain domiciled in Alaska after retirement. The allowance is $50 or 10% of the base benefit, whichever is greater. |
Post
Retirement
Pension
Adjustments
(PRPA)
(Inflation
Protection) |
PRPA increases granted on an ad hoc basis. If an ad hoc is not granted, Tier I employees must be age 60 or over or receiving benefits for 5 years to qualify for the automatic PRPA. The automatic PRPA legislated in 1986 applied to all members regardless of hire date. |
Automatic PRPA adjustments to disabled members, retirees 60 and over, and those who have received benefits for 5 years. |
Automatic PRPA adjustments to disabled members, retirees 60 and over, and those who have received benefits for 5 years. |
Retirement
Medical
Coverage |
Medical coverage is provided to all benefit recipients and their eligible dependents. The retiree medical plan premium is paid by the retirement system. |
Medical coverage is provided to disabilitants regardless of age and benefit recipients over age 60 or members with 25 years of police/fire service or all other members with 30 years of membership service. This coverage includes eligible dependents. Retirement system pays retiree medical plan premium. Retirees and survivors under age 60 must pay the full premium cost if they want coverage. |
Same as Tier II; however, employees must accrue a minimum of 10 years of credited service to have system paid coverage at age 60. Employees with less than 10 years must pay the full premiums as long as they wish to continue medical coverage. |
Disability
Benefits |
Nonoccupational disability benefits calculated as a normal retirement. Occupational disability provides 40% of the gross monthly compensation. Different occupational disability formula available before 71/76. |
Nonoccupational disability benefits are calculated as a normal retirement. Occupational disability provides 40% of the gross monthly compensation. |
Nonoccupational disability benefits are calculated as a normal retirement. Occupational disability provides 40% of the gross monthly compensation. |
