We would like to remove a position or group of positions from PERS participation. What steps do we need to take?
A termination cost study is needed when an employer is considering removing a position or group of positions from PERS participation. The employer must pay the cost of the termination cost study. The termination cost study will establish the termination liability which is the full cost of removing the defined benefit position(s). In addition to the termination liability, the employer will also have to pay ongoing past service cost for the position(s) removed until the PERS no longer has an unfunded liability. The ongoing past service cost applies to all positions removed regardless if the employee currently in the position is a defined benefit or defined contribution member. The past service cost is a rate established on an annual basis and is based on the current salary of the position(s) removed.
Buck Consultants is our PERS actuary. Please contact them directly to request a termination cost study for positions you are interested in removing from the PERS system.
A Benefits Fair is scheduled for March 29 – 31 in Fairbanks. The Fair will cover a wide range of topics for all members of the Public Employees’ Retirement System (PERS) and the Teachers’ Retirement System (TRS), from those newly hired to those ready to retire. Educational opportunities will include seminars on retirement eligibility and pension decisions, AlaskaCare Health Plans for active employees and retirees, financial education, Social Security and Medicare. For more details about the upcoming Fairs, visit alaska.gov/drb.
Throughout the year, the Division offers seminars to help educate employees about their defined benefit or defined contribution plans, the retirement process, and financial planning. Some of the upcoming seminars are listed below.
An overview of the Defined Contribution Retirement Plan (PERS Tier IV and TRS Tier III) targeted at participants, supervisors, hiring managers, and line managers.
A seminar for PERS members who are interested in retirement eligibility, the retirement process, pension options, forms, timing of benefits and enrollment in the State of Alaska Retiree Health Insurance Plan.
A class for employees to learn more about the Supplemental Annuity Plan and the Alaska Deferred Compensation Plan (DCP) available only to State employees.
State of Alaska policy allows employees to attend a Retirement and Benefits sponsored seminar during their regularly scheduled workday and have the time counted as work time. Approval to be away from the work site must be secured from the supervisor in advance.
For more information on upcoming seminars, please visit the Division’s seminar registration page.
PERS and TRS Information Handbooks are available for download from the Division of Retirement and Benefits Web site. Since the Division no longer prints the handbooks for distribution, it is important to share these links with employees on a regular basis. The information in the handbooks is valuable and clearly explains the PERS (Tier I, II and III) and TRS (Tiers I and II) programs for employees.
Employees without Internet Access, should contact the Division at (800) 821-2251, statewide or (907) 465-4460, in Juneau for a printed copy of the PERS or TRS Handbook.