State of Alaska Conversion to Biweekly Payroll
Posted November 18, 2019
The State of Alaska is converting from a semi-monthly pay schedule (twice a month) to a biweekly pay schedule (every two weeks) for all employees effective December 16, 2019.
In response to recent questions and concerns about this payroll conversion and how this change may affect benefits that are administered by the Division of Retirement and Benefits, we are providing this information.
- The Alaska Supplemental Benefit System Annuity Plan (SBS-AP) and Defined Contribution Retirement Plan (DCR) are plans in which contributions are based on a percentage of your eligible income. When converting to a biweekly pay schedule, the contribution percent of an individual’s pay will not change but will be based on the converted biweekly amount. The Division of Finance has provided a conversion calculator on their website to help determine an employee’s biweekly pay.
- The Deferred Compensation Plan and AlaskaCare Employee Health Plan benefit deductions will be collected from paychecks twice per month, with 24 total deductions per year. In months with three paydays, these deductions will not be deducted from the third paycheck of the month.
- Deductions for premiums of elected Voluntary Supplemental Benefits (VSB) options will continue to be collected from paychecks twice per month, with 24 total deductions per year.
To determine the effects of the biweekly pay schedule on a member’s PERS Defined Benefit (Tiers I, II, and III) retirement calculation, we have modeled several retirements, using real data, in multiple scenarios to compare the biweekly schedule with the semi-monthly schedule, with an outcome of no negative effects.
The State of Alaska currently has five bargaining units on the biweekly pay schedule. The Division has experienced no problems with systems or payroll reporting of these bargaining units.
For additional questions related to your retirement and benefits accounts, please call or email our Member Services Contact Center.
Phone Hours of Operation:
Monday through Thursday from 8:30 a.m. to 4 p.m. (AKST)
Friday from 8:30 a.m. to 3 p.m. (AKST)
- Toll-free: (800) 821-2251
- In Juneau: (907) 465-4460
- Email: firstname.lastname@example.org