All Roll Calls
Yes: 429 • No: 447
AlaskaHB 7834th Legislature (2025-2026)HouseWALLET
RETIREMENT SYSTEMS; DEFINED BENEFIT OPT.
Sponsored By: HOUSE FINANCE
Vetoed
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Bill Overview
Analyzed Economic Effects
24 provisions identified: 7 benefits, 2 costs, 15 mixed.
Employer adds 63% on DB-to-DC switch
If you elect the DC plan and move your DB member balance, your employer must add 63% of that transferred amount to your new DC account. The payment comes from a sub‑trust. Federal annual limits apply; any excess may be paid in the next limitation year if allowed.
When and how your pension pays
If you first joined after June 30, 2006, you can retire at age 60 with at least 5 years, or with 30 years at any age. Peace officers and firefighters have earlier age‑and‑service options. Your monthly pension equals one‑twelfth of your best five‑year average salary times a tiered rate: 2.0% per year for the first 10 years, 2.25% for years 11–20, and 2.5% for years after 20.
Some retirements lose medical benefits
If you retire under AS 39.35.381, you do not get disability or death benefits under the listed sections. You are not eligible for the minimum benefit or retiree medical under the named medical sections. Service earned under that section does not count for vesting.
What you pay into your pension
The law sets what comes out of your paycheck. If you first joined after June 30, 2006, you pay 8% of your base pay, taken each payroll before federal tax. For many teachers in the DB plan, the rate is 8.65% of the base pay earned July 1–June 30. The board must raise member rates if the post‑2006 part of the plan falls under 90% funded, and any increase must be matched by an equal employer increase.
Retiree medical and HRA for post‑2006
The law creates a retiree HRA for teachers and public employees who first joined after June 30, 2006 (and certain DC electors). Employers pay 3% of average annual pay to each HRA (4% for peace officers and firefighters). You can get retiree medical if you retire with at least 25 years of service (20 years for peace officers or firefighters), or when you reach Medicare age with at least 10 years of service. If you are not Medicare‑eligible, you pay the full premium; if you are Medicare‑eligible, you pay 30% with 10–14 years of service, 25% with 15–19, 20% with 20–24, 15% with 25–29, and 10% with 30+ years. The administrator can deduct premiums from your HRA; if the HRA is short, you pay the rest. If you leave before meeting HRA eligibility, you forfeit employer HRA money, but if you return by December 31 of the year you turn 65, your recorded balance is restored and CPI‑adjusted. Eligible members, survivors, and dependents may receive HRA reimbursements, and post‑2006 members elect medical under AS 39.35.537, not under AS 39.35.535. Elections for medical must be made by age 70½ or at retirement.
One-time DC-to-DB switch for workers
Teachers who joined after June 30, 2006 and before July 1, 2027 can elect the DB plan by January 1, 2028 if employed on July 1, 2027. Certain reemployed public employees have a one-time DB election within 180 days of rehire. The administrator moves your full DC balance (with earnings) to the DB fund within 60 days and converts it to service credit using set actuarial rules. If the transfer does not buy all your service, you can purchase the rest; if it buys more than needed, the extra rolls over to an eligible plan. Transfers also move money between death/disability and health trusts, and a weighted retirement rate (25% DB, 75% DC) is used in the calculation.
Switching from pension to savings plan
Active, non‑vested DB members can switch to the DC plan; some post‑2006 hires can switch if their employer does not offer DB to that cohort. When you transfer your DB member balance into your new DC account, your employer must add 88% of that balance, subject to federal limits. Your election must be in writing, your spouse must sign if you are married, it is irrevocable, and it starts the first day of the next month after forms are received.
Who is in DB or DC plan
If you first joined between July 1, 2006 and June 30, 2027 and do not choose DB, you are in the DC plan. Teachers who are eligible for DB and not in DC follow DB rules. You are excluded from the teachers’ DB plan if you are in the university plan or you chose DC and did not switch to DB. DC plan rules apply only to members in that date window who did not elect DB before July 1, 2027.
Buy and move service credit
If you first joined before July 1, 2006, you can buy service for work before June 5, 1988 if you met the old rules and did not already get credit under AS 39.35. You can move eligible service from AS 39.35 into the teachers’ plan. Your employer can pay for service purchases, including through an irrevocable salary‑reduction election; these payments are not taxed to you until paid out. After you complete filings and payment, the plan updates your service record, applies payments to any plan debt first, and lets you make a one‑time choice to use temporary credit for eligibility or only to raise your pension.
How much employers must pay in
Employers must pay set amounts to fund your retirement. Each pay period they pay the smaller of 12.56% of base salaries or the board’s rate, which must be at least 12% and cover normal and past service costs. For some pre‑2006 groups, employers pay 22% of the larger of two salary measures (current active pre‑2006 payroll or a benchmark year’s payroll). The law also bars setting the annual employer rate below what is needed to cover normal cost and required medical contributions.
Stronger funding for post‑2006 pensions
The law creates a sub‑trust to hold money for members who first joined after June 30, 2006. Employer deposits must cover the actuarial normal cost and past service cost for that group, with a required top‑up if amounts are under 12% of total base pay. Employers that provide DB for post‑2006 members must pay 22.5% of the larger of current or benchmark payroll each period. Employer contributions more than 15 days late owe interest at the plan’s actuarial earnings rate. The law also requires separate calculation and deposit of retiree medical contributions into the retiree health care trust.
Separate trust for post-2006 pensions
The board sets up one or more sub-trusts for members who first joined after June 30, 2006. It keeps their employer and employee contributions, assets, and earnings in separate accounts. The plan tracks these amounts separately for those post-2006 defined benefit members.
Pension COLA increases and new limits
Annual pension increases follow set formulas: age 65+ or disabled get the lesser of 75% of last year’s COL increase or 9%; age 60–64, or under 60 with five years on benefit, get the lesser of 50% of last year’s COL increase or 6%. Pre‑2006 members age 65+ or disabled who live in Alaska also get a monthly COLA that is the larger of $50 or 10% of the basic benefit. For post‑2006 members who do not meet Permanent Fund Dividend eligibility on July 1, 2026, the increase is cut in half. If the board finds funded status for post‑2006 liabilities below 90%, it must reduce increases for those members until funding improves.
Hire‑date rules for retiree medical premiums
Who gets retiree medical depends on when you first joined and whether you elected coverage. The law lists which teachers and public employees, their spouses, and dependents can be covered by hire date. If you first became a member before July 1, 2006, you usually must pay the full premium if you are under 60 and lack 25 years (peace officers) or 30 years (others), or at any age with under 10 years of service. Disabled members and certain age‑and‑service combinations do not pay premiums.
Choose teachers' plan only, service limits
If you are in the teachers’ DB plan and also work in a PERS‑covered job, you can elect to be covered only by the teachers’ plan. You must direct the PERS employer to send employer and employee amounts to the teachers’ plan and pay the required difference. While you stay only in the teachers’ plan, time worked in PERS jobs does not count toward DB eligibility.
Employer DB participation and 2027 opt‑out
If an employer offers the DC plan, it must also participate in the DB plan. From January 1 to June 30, 2027, political subdivisions and public organizations may elect not to provide DB benefits to employees who first became members after June 30, 2006. The law defines who counts as an employer and who is treated as a post‑2006 member, including certain members who move between plans. DC plan rules apply only to post‑2006 members who are not active DB members (including certain transfers).
Rehired staff: one-time move to DB
If you joined the DC plan after June 30, 2006 and before July 1, 2027, were not working on July 1, 2027, and are reemployed after that date, you can elect the DB plan once within 180 days. Your DC balance, including rollovers, is used to buy DB service. If you took a full cash‑out before rehire, or rolled out and did not roll back within 180 days of rehire, you cannot rejoin the DC plan. A spouse must sign if you are married.
Yearly benefit increases: new rules
You now qualify for the yearly increase after five years of receiving benefits, down from eight. If you first joined after June 30, 2006 and do not meet Permanent Fund Dividend rules as of July 1, 2026, your increase is cut to half the normal percent. If funding for the post‑2006 portion drops below 90%, the board must reduce increases further and can end reductions when funding improves.
Mistaken employer payments must be returned
If the administrator finds an employer contribution was made by a mistake of fact, the plan returns that money to the employer. The return must happen within one year after that finding. This corrects deposits sent in error.
Rules for service credit and averages
Your benefit average uses three consecutive payroll years if you were hired before July 1, 1996 (or are a peace officer/firefighter hired before July 1, 2006), otherwise it uses five consecutive years. You cannot receive two pensions at the same time under different sections, get duplicate service credit for the same period, or earn more than one year of credit in a calendar year. Peace officers and firefighters may count up to five years of temporary credited service for retiree medical calculations; using military service for this creates an added indebtedness based on the increased value of benefits.
Protects earned benefits and plan wind-down
The plan cannot retroactively cut benefits you already earned, except as allowed by the Alaska Constitution and federal tax law. The state can end a plan, but only after meeting legal rules and paying all liabilities. After all obligations are paid, any extra assets go back to the employer.
Plan change authority and repeals
The state may amend the retirement plan at any time, consistent with the Alaska Constitution and federal tax rules. The law also repeals several listed statute subsections. Future impacts depend on how this authority is used and what the repealed sections contained.
Faster plan rules with limited review
The retirement board and the administration commissioner can issue rules to carry out this law without the full state rulemaking process. These internal rules cannot take effect before the law’s effective date. This speeds up implementation but uses less outside review.
On-time payments and employer offsets
Employers must send required retirement and retiree health payments each pay period. If payments are late, interest is charged from the due date at the plan’s actuarial earnings rate. The legislature can lower an employer’s required payment by giving money for that purpose. If an employer overpays because of a factual mistake, the administrator returns the money within a year.
Sponsors & Cosponsors
Sponsor
HOUSE FINANCE
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/19/2026
GOVERNOR VETO SUSTAINED Y33 N27
Yes: 33 • No: 27
House vote • 4/29/2026
EFFECTIVE DATE(S) FAILED Y21 N19
Yes: 21 • No: 19
House vote • 4/29/2026
SUSTAINED RULING OF CHAIR Y19 N19 A2
Yes: 19 • No: 19
House vote • 4/29/2026
CONCUR AM OF (S) Y21 N19
Yes: 21 • No: 19
Senate vote • 4/28/2026
PASSED Y12 N8
Yes: 12 • No: 8
Senate vote • 4/28/2026
RECON SAME DAY VOTE Y15 N5 - IN 3RD RDG
Yes: 15 • No: 5
Senate vote • 4/28/2026
PASSED ON RECONSIDERATION Y12 N8
Yes: 12 • No: 8
Senate vote • 4/28/2026
AM NO 5 ADOPTED Y11 N9
Yes: 11 • No: 9
Senate vote • 4/28/2026
RESCIND ACTION AM 4 FAILED Y10 N10
Yes: 10 • No: 10
Senate vote • 4/28/2026
AM NO 4 FAILED Y10 N10
Yes: 10 • No: 10
Senate vote • 4/28/2026
AM NO 2 ADOPTED Y11 N9
Yes: 11 • No: 9
Senate vote • 4/28/2026
AM NO 8 ADOPTED Y11 N9
Yes: 11 • No: 9
House vote • 5/12/2025
EFFECTIVE DATE(S) FAILED Y21 N19
Yes: 21 • No: 19
House vote • 5/12/2025
PASSED Y21 N19
Yes: 21 • No: 19
House vote • 5/12/2025
SUSTAINED RULING OF CHAIR Y21 N19
Yes: 21 • No: 19
House vote • 5/10/2025
AM NO 5 FAILED Y13 N25 E2
Yes: 13 • No: 25
House vote • 5/10/2025
AM NO 6 FAILED Y17 N21 E2
Yes: 17 • No: 21
House vote • 5/10/2025
AM NO 9 FAILED Y17 N21 E2
Yes: 17 • No: 21
House vote • 5/10/2025
AM NO 11 FAILED Y16 N22 E2
Yes: 16 • No: 22
House vote • 5/10/2025
AM NO 3 FAILED Y16 N22 E2
Yes: 16 • No: 22
House vote • 5/10/2025
DIVIDE THE AMENDMENT FAILED Y15 N23 E2
Yes: 15 • No: 23
House vote • 5/10/2025
AM NO 1 FAILED Y17 N21 E2
Yes: 17 • No: 21
House vote • 5/10/2025
AM NO 12 FAILED Y17 N21 E2
Yes: 17 • No: 21
House vote • 5/10/2025
AM NO 4 FAILED Y16 N22 E2
Yes: 16 • No: 22
House vote • 5/10/2025
AM NO 15 FAILED Y15 N23 E2
Yes: 15 • No: 23
House vote • 5/10/2025
AM NO 2 AS AMD ADOPTED Y21 N17 E2
Yes: 21 • No: 17
Actions Timeline
(S) JOINT SESSION at 01:00 PM HOUSE CHAMBER
5/19/2026Senate(H) JOINT SESSION at 01:00 PM HOUSE CHAMBER
5/19/2026House(H) GOVERNOR VETO SUSTAINED Y33 N27
5/19/2026House(H) CALL FOR THE QUESTION WITHDRAWN
5/19/2026House(H) VETOED BY GOVERNOR 5/18/26
5/19/2026House(H) MANIFEST ERROR(S)
4/30/2026House(H) 4:30 P.M. 4/30/26 TRANSMITTED TO GOVERNOR
4/30/2026House(H) ENGROSSED
4/29/2026House(H) VERSION: SCS CSHB 78(FIN) AM S(EFD FLD H)
4/29/2026House(H) ...CHANGES TITLE OF LEGISLATION
4/29/2026House(H) EFFECTIVE DATE(S) FAILED Y21 N19
4/29/2026House(H) CONCUR AM OF (S) Y21 N19
4/29/2026House(H) SUSTAINED RULING OF CHAIR Y19 N19 A2
4/29/2026House(H) TECHNICAL TITLE CHANGE
4/29/2026House(H) CONCUR MESSAGE READ AND TAKEN UP
4/29/2026House(S) VERSION: SCS CSHB 78(FIN) AM S
4/28/2026Senate(S) TRANSMITTED TO (H) AS AMENDED
4/28/2026Senate(S) EFFECTIVE DATE(S) ADOPTED Y20 N-
4/28/2026Senate(S) PASSED ON RECONSIDERATION Y12 N8
4/28/2026Senate(S) RECON SAME DAY VOTE Y15 N5 - IN 3RD RDG
4/28/2026Senate(S) EFFECTIVE DATE(S) ADOPTED Y20 N-
4/28/2026Senate(S) PASSED Y12 N8
4/28/2026Senate(S) AUTOMATICALLY IN THIRD READING
4/28/2026Senate(S) AM NO 10 ADOPTED UC
4/28/2026Senate(S) AM NO 9 NOT OFFERED
4/28/2026Senate
Bill Text
Enrolled HB 78
4/29/2026
SCS CSHB 78(FIN) am S(efd fld H)
4/29/2026
SCS CSHB 78(FIN) am S
4/28/2026
SCS CSHB 78(FIN)
4/27/2026
SCS CSHB 78(L&C)
2/2/2026
CSHB 78(FIN) am(efd fld)
5/10/2025
CSHB 78(FIN)
5/9/2025
HB 78
1/31/2025