DCR Plan General Information
- Download plan highlights [PDF]
- What is the Alaska Defined Contribution Retirement Plan?
- How much do I contribute?
- How much does my employer contribute?
- When am I vested in the plan?
- How are contributions invested?
- What if I need to make investment changes?
- How can I get help choosing my investment options?
- What are the plan expenses?
- Withdrawal, plan payment options, taxation and statements
- Plan administrator contact information
What is the Alaska Defined Contribution Retirement Plan?
The Alaska PERS/TRS Defined Contribution Retirement (DCR) Plan is a defined contribution plan governed by section 401(a) of the Internal Revenue Code. A portion of your wages and an employer contribution are made to this plan before tax. These contributions plus any change in value (interest, gains and losses), and minus any Plan administrative fees or other charges, are payable to you or your beneficiary at a future date. The PERS/TRS DCR Plan is a participant-directed plan with investment options offered by the plan. The providers of these investment options were selected by the Alaska Retirement Management (ARM) Board.
How much do I contribute?
Each pay period, 8% of your gross eligible compensation is contributed to your retirement account through payroll deductions before it is taxed.
How much does my employer contribute?
If you are a PERS participant, your employer will contribute an additional 5% of your gross eligible compensation to your retirement account. The total employee and employer contribution is 13% of your gross eligible salary.
If you are a TRS participant, your employer will contribute an additional 7% of your gross eligible compensation to your retirement account. The total employee and employer contribution is 15% of your gross eligible salary.
When am I vested in the Plan?
Vesting refers to the percentage of your account you are entitled to receive upon the occurrence of a distributable event. Your contributions to the Plan and any earnings they generate are always 100% vested.
Employer contributions to the DCR Plan, plus any earnings they generate, are vested 100% after five years of employment.
How are contributions invested?
DCR Plan is a participant-directed plan. This means that you choose from the investment options offered by the Plan. The providers of these investment options are selected by the Alaska Retirement Management Board. Investment options are described in detail in the individual Investment Option Detail Sheets.
Important Note: Initially, your contributions made to the DCR account are automatically invested in one of the Alaska Target Retirement Trust or Alaska Balanced Trust funds based on your year of birth.
What if I need to make investment changes?
You may transfer among existing fund options and make changes to the allocation of your future contributions once a day. There is no extra charge for daily changes. Funds may impose redemption fees, and/or transfer restrictions, on certain transfers, redemptions or exchanges if assets are held for less than the period stated in the fund’s prospectus or other disclosure documents. For more information, please refer to the fund’s prospectus and/or disclosure documents. Changes may be made by telephone via KeyTalk, a client service representative, the Internet or in writing.
How can I get help choosing my investment options?
Your Plan offers access to three different levels of investment advisory tools and services called Reality Investing® Advisory Services. You can have Advised Assets Group, LLC (AAG), an investment advisory services firm, manage your retirement account for you. Or, if you prefer to manage your retirement account on your own, you can use online investment guidance and advice tools. These services provide a retirement strategy based on your investment goals, time horizon and tolerance for risk. There is no guarantee that participation in the Reality Investing Advisory Services will result in a profit or that your account will outperform a self-managed portfolio. An additional fee is charged for some of the Reality Investing Advisory Services offered. See “What fees do I pay to participate in Reality Investing Advisory Services?” below for more information.
What are the plan expenses?
There are no front-end loads for investments. Expenses are charged to your account in order to cover the cost of plan administration.
There are two types of fees: a monthly fee of 0.11% annual rate on assets (0.0011 / 12 x month-end asset balance) and a fixed annual fee of $35 for actively contributing participants, or $25 for non-contributing members. This fee is charged to your account each July.
In addition, the funds have annual investment expenses that vary depending on the funds you choose. The returns are net of these costs. Please see Investment Option Detail Sheets for more detailed information.
For withdrawal, plan payment options, taxation and statements, please see:
The Division of Retirement and Benefits is responsible for the overall administration of this plan. To contact the Juneau Division of Retirement and Benefits office, call (800) 821-2251, or (907) 465-4460 from Juneau.