Edit by LM 2/28/25


PERS & TRS Defined Contribution Retirement Plan


Retirement information for the PERS Tier IV and TRS Tier III DCR plan.
Effective as of January 1, 2025

All employees that enter service with a Public Employees Retirement System (PERS) or Teachers Retirement System (TRS) employer after June 30, 2006 for the first time are automatically entered into the DCR Plan.

The Alaska PERS and TRS Defined Contribution Retirement plan (DCR plan) is a defined contribution plan governed by Section 26 U.S.C. § 401a of the Internal Revenue Code. A portion of your wages and a matching employer contribution are made to this Plan before tax. These contributions plus any change in value (interest, gains and losses), and minus any Plan administrative fees or other charges, are payable to you or your beneficiary at a future date. The Plan is a participant-directed plan with investment options offered by the Plan. The providers of these investment options were selected by the Alaska Retirement Management (ARM) Board.

The PERS tier IV and TRS tier III are hybrid tiers. These tiers include the defined contribution retirement account and benefits that are traditionally associated with defined benefit retirement plans, such as occupational death and disability benefits and retiree medical insurance. Also included in the plan is a separate Health Reimbursement Arrangement (HRA) account that will help retired members pay medical premiums and other eligible medical expenses not covered by the medical plan.

Empower Retirement is the contract record keeper for the PERS/TRS Defined Contribution Retirement (DCR) plan. They process all payments for the DCR plan, the Supplemental Annuity (SBS-AP) plan and Deferred Compensation Plan (DCP).

Empower Retirement Services

  • Account: akdrb.com
  • Local to Anchorage:
  • Customer Service:
  • TTY:
  • Hours:
    Mon-Fri: 4 a.m. - 6 p.m., Sat: 5 a.m. - 1:30 p.m. AK
  • Email:
  • PIN: Request a PIN

Empower Automated Functions

  • Current account balance
  • Current interest rates
  • Current unit values or share prices
  • Current account balance by fund
  • Current fund allocation
  • Recent transaction history
  • Change investment fund allocation
  • Transfer among investment funds
  • Rebalance portfolio
  • Change a PIN
  • Order a copy of existing PIN

Each pay period, 8% of your gross eligible compensation is contributed to your retirement account through payroll deductions before it is taxed.

If you are a PERS participant, your employer will contribute an additional 5% of your gross eligible compensation to your retirement account. The total employee and employer contribution is 13% of your gross eligible salary.

If you are a TRS participant, your employer will contribute an additional 7% of your gross eligible compensation to your retirement account. The total employee and employer contribution is 15% of your gross eligible salary.

A comprehensive statement of your account will be mailed to you each quarter. If you prefer not to have your statements mailed, you can sign up to use the Online File Cabinet® for your account at the Empower Retirement Services website.

PERS & TRS Annual Compensation Limit

PERS & TRS Annual Compensation Limit
Calendar Year Limit
2025 $ 350,000
2024 $ 345,000
2023 $ 330,000
2022 $ 305,000
2021 $ 290,000

Past PERS & TRS Annual Compensation Limit

2020 - 2015
PERS & TRS Annual Compensation Limit
Calendar Year Limit
2020 $ 285,000
2019 $ 280,000
2018 $ 275,000
2017 $ 270,000
2016-2015 $ 265,000
2014 - 2008
PERS & TRS Annual Compensation Limit
Calendar Year Limit
2014 $ 260,000
2013 $ 255,000
2012 $ 250,000
2011-2009 $ 245,000
2008 $ 230,000

Members are 100% vested with their contributions plus the earnings they generate from the moment they are made. There is a vesting schedule for the employer’s contributions and associated earnings. Members vest in the employer contributions on a schedule that equals 100% vesting with five years of service. The schedule is as follows:

  • 1 year of service = 0% vested of contributions.
  • 2 year of service = 25% vested of contributions.
  • 3 year of service = 50% vested of contributions.
  • 4 year of service = 75% vested of contributions.
  • 5 year of service = 100% vested of contributions.

The amount of taxes you pay, and when you pay them, is determined by whether you take payment directly or make a rollover to a traditional IRA or other qualified plan. Your payment will be taxed in the current year unless you roll it over. However, if you receive a lump-sum payment before age 59½, you also may have to pay an additional 10% tax penalty. Direct transfers to Roth IRAs are reported as taxable income but are not subject to the additional 10% tax penalty.

The DCR plan is a participant-directed plan. This means that you choose from the investment options offered by the Plan. The providers of these investment options were selected by the ARM Board. Investment options are described in detail in the Plan Information Booklet and in the individual Fund Overviews, which are available on the Empower Retirement Services website by selecting "Investment information" under the "Investing" menu.

Initially, your contributions to the Plan are automatically invested in one of the Alaska Target Retirement Trust funds or Alaska Balanced Trust funds based on your year of birth. This is the default option. You can move all or a portion of your existing balances among investment options and change how your contributions are invested. You may transfer among existing fund options and make changes to the allocation of your future contributions once a day. There is no extra charge for daily changes. Funds may impose redemption fees, and/or transfer restrictions, on certain transfers, redemptions or exchanges if assets are held for less than the period stated in the fund’s prospectus or other disclosure documents. For more information visit the Empower Retirement System website or call Empower's call center toll-free. Until you change how your future contributions are allocated, your money will continue to be invested the intial trust fund. Changes may be made through Empower's website, or by telephone through a client service representative, or in writing

Existing Investment Funds

The plan provides for many investment options. Carefully consider the investment objectives, risks, fees and expenses of the annuity and/or the investment options. Contact Empower Retirement for a prospectus, a summary prospectus and disclosure document, as available, containing this information. Read them carefully before investing.

  • Russell 3000 Index Fund
  • S&P 500® Index Fund
  • S & P SmallCap 600 Equity Index F
  • Environmental, Social and Governance Fund
  • Mid Capitalization Equity Index Fund J
  • U.S. Small-Cap Trust
  • World Equity Ex-US Index
  • International Equity Fund
  • FIAM Core Plus CIT C1 H
  • Passive US Bond Index Fund
  • Stable Value Fund
  • State Street Inst Treasury Money Market
  • Alaska Balanced Trust
  • BlackRock Strategic Completion NL F
  • Alaska Long-Term Balanced Trust
  • Alaska Target Date Retirement 2010 Trust
  • Alaska Target Date Retirement 2015 Trust
  • Alaska Target Date Retirement 2020 Trust
  • Alaska Target Date Retirement 2025 Trust
  • Alaska Target Date Retirement 2030 Trust
  • Alaska Target Date Retirement 2035 Trust
  • Alaska Target Date Retirement 2040 Trust
  • Alaska Target Date Retirement 2045 Trust
  • Alaska Target Date Retirement 2050 Trust
  • Alaska Target Date Retirement 2055 Trust
  • Alaska Target Date Retirement 2060 Trust
  • Alaska Target Date Retirement 2065 Trust



Plan Expenses

There are no front-end loads for investments. Expenses are charged to your account in order to cover the cost of Plan administration.

There are two types of fees: a monthly fee based on a 0.1275% annual rate on assets (0.001275 / 12 x month-end asset balance) and a fixed annual fee of $35 for actively contributing participants, or $25 for non-contributing members. This fee is charged to your account each July.

In addition, the funds have annual investment expenses that vary depending on the funds you choose. The returns are net of these costs. For more detailed information, please visit the Empower Retirement Services website.

Funds may be withdrawn at once you have reached eligible retirement age in the event of:

  • Leaving employment (including retirement)
  • Death (after which your beneficiaries will take the withdrawal)

You are first eligible to receive payment of your PERS Defined Contribution Retirement (DCR) Plan account when you have been terminated for at least 60 days, provided you are not rehired in a PERS or TRS position before 60 days have passed or are not active with the same employer in a different fund. Partial account payments are allowed, up to two per calendar year, after the 60-day termination requirement has been met. The third PERS or TRS withdrawal request in a calendar year must be for a full withdrawal of the account balance.

After you terminate, you may defer payment of your account for any length of time until April 1 of the year after you reach age 72 (73 if you reach age 72 after December 31, 2022). The balance of your account will continue to change in value depending on market conditions.

If you take a withdrawal prior to retirement age, you may be subject to a 10% early withdrawal penalty assessed by the IRS.

Withdrawals are made directly to you or your beneficiary or to another qualified plan on your behalf at your direction. There are only three recognized exceptions that would allow your account to be paid directly to another person or agency other than yourself. They are:

After you have met the 60-day termination of employment requirement, you are eligible to apply your account balance to the payment option you choose. Payment options include:

  • Do nothing and defer payment until you have obtained the age of Required Minimum Distribution
  • Single life annuity
  • Period certain annuity (five, 10 and 15 years)
  • Single life with period certain annuity (10 or 15 years)
  • Joint and survivor (50% or 100%; may be chosen only by members)
  • Lump-sum payment (full or partial, limit of two partial withdrawals per year)
  • Direct rollover to a traditional IRA, Roth IRA, or other qualified or eligible plan
  • Period Payment Installments

Empower Retirement Services processes all payments for the Defined Contribution Retirement (DCR) plan. You should contact Empower Retirement Services for disbursement forms, information on how to complete them, and for the status of pending payments. To contact Empower Retirement Services, call .

The DCR Plan is a participant-directed plan. You choose from the investment options offered by the Plan. You can invest your contributions in any of the following ways, depending on your knowledge and comfort level with researching and selecting investments.

Keep Your Money Invested in an Alaska Target Retirement Trust Based on Your Planned Retirement Date and Risk Tolerance. Visit akdrb.com and click Investing for detailed information about the Alaska Target Retirement Trusts.

Build and Manage Your Own Portfolio
You can build and manage your own portfolio by investing in one or more of your Plan’s investment options. The Plan offers investments in a mix of asset classes to help you create a portfolio that suits your retirement goals and risk tolerance.

The Alaska Retirement Management Board has selected the Plan’s investment options, which are described in detail in the Plan Information Booklet and in the individual Fund Overviews, which are available at akdrb.com by selecting Investment information under the Investing menu.

On akdrb.com , you can also find a variety of online calculators and planning tools to help you. From there, you select the investment options and implement your own retirement savings strategy.

How can I make changes to my investment selections?

You can move all or a portion of your existing balances among investment options and change how your future contributions are invested by visiting the website at akdrb.com or by calling the voice response system toll free at . Until you change how your future contributions are allocated, your money will continue to be invested in your default investment option.

You can transfer assets among existing fund options and allocation changes for future contributions once a day at no charge. However, your chosen funds may impose redemption fees, and/ or transfer restrictions, on certain transfers, redemptions or exchanges if assets are held for less than the period stated in the fund’s disclosure documents. For more information, please refer to the fund’s disclosure documents at akdrb.com .

Point in Time Advice

Our Point-in-time advice is a powerful, phone-based service delivered by Empower’s Workplace Planning & Advice (WPA) Group, acting as a fiduciary. Point-in-time advice can provide you with specific recommendations based on information you provide and intended to serve your best interest.

Your Alaska Retirement Plan Advisors are also available to work with you. Their focus remains on helping to educate you about your options, so you can make informed decisions to and through retirement. However, if you occasionally need someone to just tell you what to do, point-in time advice is now here to help fill that gap.

Included in the services offered by WPA:

  • Assistance with how to invest your contributions from the options available in the State of Alaska fund lineup.
  • Roll-in help for participants who wish to consolidate assets. Consider all your options and their features and fees before moving money between accounts.
  • Advice determining how much to save in an optional plan, and whether you should contribute pre-tax or Roth.
  • Robust advice and counseling around distributions from the State of Alaska plans once you’ve left employment.
  • Help with your overall financial wellness and retirement readiness.

There is no additional cost for this advice. Call and schedule a meeting to talk about any of the above topics, so we can help you meet your retirement and financial goals.

Eligibility For Coverage Under the DCR Retiree Health Plan

A member is eligible to elect coverage under the AlaskaCare DCR Retiree Health Plan if he or she retires directly from the DCR Plan, was an active member in the DCR Plan for at least 12 months immediately before his or her application for retirement, and:

Benefit recipients who are eligible to be covered under the AlaskaCare DCR Retiree Health Plan may voluntarily elect coverage. The plan requires monthly premium payments.

DCR Health Premiums

Premiums may be paid by deductions from your Health Reimbursment Account (HRA). If you are not eligible for Medicare, you must pay the full monthly premium for the coverage elected under the DCR Retiree Health Plan. If you are eligible for Medicare, you must pay a percentage of the monthly premium for coverage elected under the medical plan, as follows:

  • 30% if the member had 10 or more, but less than 15, years of service;
  • 25% if the member had 15 or more, but less than 20, years of service;
  • 20% if the member had 20 or more, but less than 25, years of service;
  • 15% if the member had 25 or more, but less than 30, years of service; and
  • 10% if the member had 30 or more years of service.

If eligible to elect coverage under the DCR Retiree Health Plan then a member is eligible to elect Dental-Vision-Audio (DVA) and or Long-term Care (LTC) coverage at retirement. All members who elect DVA and or LTC pay the full premium for the coverage.

The DCR Plan Health Reimbursement Arrangement (HRA) is a separate account that your employer contributes to while you are employed to reimburse all or a portion of your out-of-pocket qualified medical expenses for you when you are eligible for benefits. Can be used to reimburse for:

  • Insurance premium payments for health care insurance premiums not paid by your plan.
  • Prescription medication and over-the-counter drugs.

Employers will contribute 3% of the annual average employee compensation of all PERS and TRS participants to the account. No contributions are made by the participant.

HRA Eligibility

  • A terminated participant who is eligible for Medicare and has 10 years of service
  • A participant who has at least 25 years of membership service as a peace officer or firefighter or at least 30 years of membership service for all other employees
  • A participant does not have to retire directly from the plan to be eligible for the HRA
  • An eligible participant can use the HRA even if not participating in the Retiree Health plan

To discuss your eligibility, coverage options, and premiums, and/or make your elections for medical, DVA, LTC and HRA, and/or for an overview of your investment accounts and options, please schedule an appointment with a retirement counselor using our online scheduler or call .

Page Last Modified: 04/01/25 16:44:49