For employees who first entered PERS or TRS prior to July 1, 2006
The defined benefit plan is designed to offer a lifetime monthly benefit once retirement eligibility is reached. Retirement benefits from the plan, provided you do not refund your contributions, will be determined by a formula defined in statute. Unlike a defined contribution account, the benefit is not based on the amount of money in the contribution account, but rather on years of service with the retirement system.
For employees who first entered PERS or TRS on or after July 1, 2006
The Alaska PERS/TRS Defined Contribution Retirement Plan is a defined contribution plan governed by section 401(a) of the Internal Revenue Code. A portion of the employee's wages and an employer contribution are made to this plan pre-tax. These contributions, plus any changes in value (interest, gains and losses), minus any plan administrative fees or other charges are payable to the employee or their beneficiary at a future date. The PERS/TRS DCR Plan is a participant-directed plan with investment options offered by the plan. As part of the plan, the participant will be automatically enrolled with Great West Retirement Services. The providers of the investment options were selected by the Alaska Retirement Management (ARM) Board. The DCR Plan provides the option of selecting a retirement planning strategy based on the participant's comfort level in the investment market.