| Feature |
Tier I
7/1/55 - 6/30/90 |
Tier II
7/1/90 - 6/30/06 |
Employee
Contribution |
Pre-tax contribution:
8.65% beginning 1/1/91 |
Pre-tax contribution:
8.65% beginning 1/1/91 |
Employer
Contribution |
Determined by annual actuarial valuation. |
Determined by annual actuarial valuation. |
| Vesting |
Members vest with 8 years of service. |
Members vest with 8 years of service. |
Qualifications
for
Retirement |
Normal retirement age is 55, with early retirement at age 50; teachers can retire at any age after 20 years of membership service. |
Normal retirement age is 60, with early retirement at age 55; teachers can retire at any age after 20 years of membership service. |
Benefit
Calculation
Formula |
Benefit formula is 2% for the first 20 years and all years of service prior to July 1, 1990, 2.5% thereafter. Benefit calculation is determined on the average of the high three contract salaries. |
Benefit formula is 2% for the first 20 years, 2.5% thereafter. Benefit calculation is determined on the average of the high three contract salaries. |
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 10% of the base benefit. |
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 10% of the base benefit. |
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 8 years to qualify for the automatic PRPA. The automatic PRPA legislated in 1990 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 8 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. |
The retirement system pays the retiree medical plan premium for all disabilitants regardless of age, for retirees and survivors over age 60 and for retirees with at least 25 years of membership service. This coverage includes eligible dependents. Retirees and survivors under age 60, with less than 25 years of membership service must pay the full premium cost if they want coverage. |
Disability
Benefits |
Disability benefits are 50% of base salary, plus 10% for each eligible dependent child up to a maximum of 4 children. |
Disability benefits are 50% of base salary, plus 10% for each eligible dependent child up to a maximum of 4 children. |
