Alaska

Overview

Major public retirement systems in Alaska include the Alaska Public Employees Retirement System (PERS) and the Alaska Teachers Retirement System (TRS), which are administered by the Alaska Division of Retirement and Benefits. Alaska PERS provides benefits for state employees and employees of political subdivisions, while Alaska TRS provides benefits for certified public school teachers, other designated employees of school districts, the state university, and the department of education.

Legislation approved in 2005 transferred responsibility for asset management from the Alaska State Pension Investment Board to the Alaska Retirement Management Board. This legislation also closed both plans to new members hired after June 30, 2006. Employees hired after this date participate only in a defined contribution plan. 

Plan Design

Alaska public employees hired since July 1, 2006 participate in a defined contribution plan. Those hired previously participate in a defined benefit plan. 

According to the US Government Accountability Office, 42 percent of employees of state and local government in Alaska participate in Social Security.

Access plan design detail

Authorizing Statutes and Board Structure

AK Stat § 37.10.210 establishes the Alaska Retirement Management Board, which is comprised of nine trustees. 

Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page

Fiduciary Duty/Prudence Standard

AK Stat § 37.10.071 states:

In exercising investment, custodial, or depository powers or duties under this section, the fiduciary of a state fund shall apply the prudent investor rule and exercise the fiduciary duty in the sole financial best interest of the fund entrusted to the fiduciary. Among beneficiaries of a fund, the fiduciaries shall treat beneficiaries with impartiality.

Legal Protections of Retirement Benefits

Membership in employee retirement systems of the State or its political subdivisions shall constitute a contractual relationship. Accrued benefits of these systems shall not be diminished or impaired. See Municipality of Anchorage v. Gallion, 944 P.2d 436 (Alaska 1997)(ordinance permitting municipality to avoid contributions to underfunded police and firefighter retirement system if funds necessary to pay system's actuarial liability were available from total assets of system, impaired vested rights of members of fully funded plans to have the actuarial soundness of their plans evaluated and maintained separately from that of underfunded plan, and thus violated constitutional provision prohibiting impairment of accrued benefits of state employee retirement systems), but see Alford v. State, Dept. of Admin., Div. of Retirement and Benefits, 195 P.3d 118 (Alaska 2008)(recapturing early retirement benefits for retirees who returned to public service, and then retired again, according to statutes in effect when employees took their first retirement that required that subsequent retirement benefits of early retirees who were reemployed be reduced by the actuarial equivalent of early retirement payments previously received, did not unconstitutionally violate anti­ diminution provision; employees were receiving benefits under version of PERS statutes in effect when they took their first retirement, they still enjoyed a net increase over what they would have received under new version of the statutes, and Alaska Constitution did not give employees the right to mix and match a statutory provision from one era with that of another). (AK CONST., Article XII, §7) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits

See also the following search tools:

Retirement System Account Interest Policies Economic Actuarial Assumptions Retirement and Investment Board Characteristics
Information about interest rates applied to account balances of inactive plan participants Assumed rates of investment return and inflation Composition of the members of public retirement and investment oversight boards
Mortality Assumptions Plan Design Features Post-retirement Employment Policies
Public retirement system actuarial assumptions for mortality Numerous elements of retirement plan design Policies governing return-to-work for retirement system annuitants

More Data

Flag of Alaska(July 6, 1927)

Population (2024) 740,133

Alaska public pension statistics,
per U.S. Census Bureau as of FY 2024

Assets

$18.7 billion

Active Members

15,197

Annuitants

51,367

Benefits Paid

$1.7 billion

Employee Contributions

$105.1 million

Employer Contributions

$668.9 million

Systems

Five state systems that together account for 98 percent of assets and 99.9 percent of public pension plan participants in the state. The Census Bureau also reports 1 local system, which is a closed plan for employees of the City of Anchorage.

More Data

Other Resources


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.


 

What's New at NASRA: Public Pension Investment Return Assumption Brief Updated

NASRA’s latest update to standing issue briefs, Public Pension Plan Investment Return Assumptions underscores the critical role the investment return assumption plays in the financial health of public pension plans. Of all actuarial assumptions, it has the greatest impact on plan funding levels and cost. This brief traces how a decade of low interest rates and inflation, beginning in 2009, prompted many plans to reduce their long-term expected returns in line with more modest capital market projections. However, since inflation began rising in early 2021, the trend toward lowering return assumptions has largely paused. While reducing a plan’s assumed return can increase both costs and unfunded liabilities, setting this assumption is a careful, thorough process. It draws on expert input from actuaries and investment professionals and is guided by actuarial standards of practice.