General Layoff Information for the Alaska Supplemental Benefits-Annuity Plan (SBS-AP)
A layoff separation is considered a termination of employment by the SBS-AP and allows participants to withdraw their accounts once you have been separated from employment for 60 days. You are not required to remove your funds simply because you have separated. You may leave your contributions in the plan and continue your retirement savings in order to meet your goals for the future. Experts say most people will live on retirement benefits longer than they worked to earn them.
If you are planning on reinvesting your money, please be sure to compare the fees for the services you will receive. The SBS-AP management and administrative fees are very low compared to the private sector.
If you must withdraw your SBS-AP funds, you will need to consider the following:
- You may elect to maintain your acccount, rollover your contributions to another qualified plan or elect one of the other monthly payment options. (See the SBS-AP Plan Withdrawal Options page for more information.)
- SBS-AP funds are taxable income as you receive them. You may want to choose a method of payment that spreads your account balance across tax years.
- You must wait 60 days from your separation date before you can access your funds. If you reemploy with an SBS-AP employer before the 60-day period is up you will not be able to access your funds.