4. Retirement Information
Alaska Supplemental Annuity Plan
The State of Alaska does not participate in the Federal Social Security System, so the Alaska Supplemental Annuity Plan (SBS-AP) provides an alternative benefit plan. Participating in the Supplemental Annuity Plan is mandatory for all State employees (except Teachers). The SBS-AP is a defined contribution plan governed by section 401(a) of the Internal Revenue Code. Your contribution to the plan equals 6.13% of your gross pay up to the current Social Security maximum. Your contributions are deducted from pre-taxed income. The state matches the employee's contribution. These contributions plus any change in value (interest, gains and losses) are payable to you or your beneficiary at a future date. Participants must be terminated to receive payments.
SBS Annuity is a participant-directed plan. This means that you choose from the investment options offered by the plan. There are several investment options for this fund. The division of Retirement and Benefits will mail you an information packet that will include a PIN for you to use to access your account online. You will also receive a quarterly statement of your contributions and interest.
For more detailed information about the SBS Annuity Plan, you can visit the Retirement & Benefits website at http://doa.alaska.gov/drb/sbs_ap/plan_pubs/general_info.html.
Alaska Public Employees' Retirement System (PERS)
You became a member of the Public Employees Retirement System (PERS) upon your appointment to a permanent (non-teacher), partially exempt, or exempt position. Nonpermanent employees are not eligible to participate in the retirement plan. The PERS offers a variety of benefits to its members and their survivors. These benefits, when combined with other income, are designed to provide members with financial security during their retirement years or in the event of disability or death. PERS benefits are paid from the Public Employees' Retirement Fund which consists of employee and employer contributions and investment earnings.
Required to Review: A complete explanation of the Defined Contribution Retirement Plan (DCR) can be found on the Division of Retirement & Benefits web site at: doa.alaska.gov/drb/employer/hr_dcrplaninformation.html
Teachers' Retirement System (TRS)
Full-time and part-time employees of the Department of Education and Early Development and the Department of Labor and Workforce Development (AVTEC) whose positions require they hold a valid Alaska Teaching Certificate are required to be members of TRS. The TRS offers a variety of benefits to its members and their survivors. These benefits, when combined with other income, are designed to provide members with financial security during their retirement years or in the event of disability or death. TRS benefits are paid from the Teachers' Retirement Fund, which consists of employee and employer contributions and investment earnings.
A complete explanation of the Defined Contribution Retirement Plan can be found on the Division of Retirement and Benefits web site at: doa.alaska.gov/drb/employer/hr_dcrplaninformation.html
Employees in permanent and long-term nonpermanent positions are eligible to participate in the state's Deferred Compensation Plan. This optional plan allows eligible employees to put money aside for the future and reduce their taxable income at the same time. For more information on this tax deferral program, contact the Plan Administrator at the Division of Retirement & Benefits at (907) 465-4460 or visit their web site at http://doa.alaska.gov/drb/dcp/index.html.
Retirement & Benefits Seminars
The Division of Retirement & Benefits provides educational seminars regarding retirement and benefits plans. Information about these seminars can be found on the Division of Retirement & Benefits web site at: doa.alaska.gov/drb/reps/newseminars.html