SBS-AP General Plan Information
- Download plan highlights [PDF]
- What is the Alaska Supplemental Annuity Plan?
- How are contributions determined?
- How is the money invested?
- What if I need to make investment changes?
- How can I get help choosing my investment options?
- Advisory service fees, plan expenses, plan payment options, tax info, account tracking, and other information
- Transactions required through Retirement Services
- Plan administrator
What is the Alaska Supplemental Annuity Plan?
The Alaska Supplemental Annuity Plan (SBS-AP) is a defined contribution plan governed by Section 401(a) of the Internal Revenue Code. A portion of your wages and a matching employer contribution are made pre-tax to this Plan instead of contributions to Social Security. These contributions, plus any change in value (interest, gains and losses), are payable to you or your beneficiary at a future date.
How are contributions determined?
If you are an employee of the state or one of the 20 political subdivisions that have elected to be in the Plan, your employment status will determine whether you are required to contribute to this Plan. Your SBS-AP account is credited with a gross contribution that consists of a reduction to your wages of 6.13% and a matching employer contribution of 6.13%. The total contribution is 12.26% of your payroll up to the current Social Security maximum wage base. This wage base changes yearly. Your personnel department or Plan representative can tell you the current wage base in effect.
How is the money invested?
SBS-AP 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:
Important Note: Initially, your contributions to the SBS-AP 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 make transfers among existing fund options and allocation changes for future contributions once a day. There is no charge. Changes may be made by telephone via KeyTalk at (800) 232-0859 or on the Empower Retirement Web site.
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), a wholly owned subsidiary of Empower Retirement and a federally registered investment adviser, 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 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.
Advisory Service Fees, Plan expenses, Plan Payment Options, Tax Information, Account Tracking, and Other Information
Transactions Required Through Empower Retirement Services
The following transactions must be conducted through Empower Retirement Services:
- Inactive and Retired Employees: Changing your address or your name. (Active employees: Contact your employer to change your address or name.)
- Account Withdrawals: Empower Retirement Services processes all Plan payments. Empower Retirement Services should be contacted for information on how to complete disbursement forms and for the status of pending payments.
To contact Empower Retirement Services, call 1-800-232-0859 and remain on the line.
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 465-4460 from Juneau.