Supplemental Annuity Plan

The Alaska Supplemental Benefits System Annuity Plan (SBS-AP) is a defined contribution plan governed by Section 401(a) of the Internal Revenue Code . The Alaska Statutes related to the SBS-AP plan are under AS 39.30, Article 4; AS 39.30.150 - 180 . Regulations are 02 AAC 37.125 - 190 . 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 investment value, are payable to you or your beneficiary at a future date.

Employees of the State of Alaska and 24 political subdivisions that have elected to be in the plan are participating. If you work for an eligible employer, your employment status will determine whether you are required to contribute to this plan. All employees are automatically enrolled in the SBS-AP plan on the date of their hiring unless you are in a position that is excluded from participation.

Learn more about the SBS-AP plan in the Supplemental Annuity Plan Information Handbook

Plan Record Keeper

Empower processes all payments for the PERS/TRS Defined Contribution Retirement (DCR) plan, the Supplemental Annuity (SBS-AP) plan and Deferred Compensation Plan (DCP).

Plan Expenses

There are no front-end loads for investment. Expenses are charged to your account in order to cover the cost of administration of the Plan. 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), plus a fixed fee (charged annually) 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 Empower's website .

If you are an employee of the state or one of the 24 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.

You’ll receive a comprehensive statement of your account each quarter. The default for statements is an electronic statement on Empower's website . If you wish to request paper statements, you can do that on the Empower website.

Social Security Maximum Wage Base
Year	Amount
2026	$184,500
2025	$176,100
2024	$168,600
2023	$160,200
2022	$147,000

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 payment before age 59 ½, 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 10% additional penalty does not apply if you are a qualified public safety employee and you (1) will be at least 50 in the year of separation or (2) have at least 25 years of service under the plan. This is provided by IRC 72 (t) (10) under separation of service.

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 individual Fund Overviews, which are available on Empower's website by selecting "Investment information" under the "Investing" menu.

Initially, your contributions made 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. 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 Empower's website or call Empower's Voice Response System (VRS) toll-free number. Until you change how your future contributions are allocated, your money will continue to be invested in the default fund. Changes may be made through Empower's website , by telephone via the VRS, through a client service representative, or in writing.

Learn more about Alaska Target Retirement Trusts .

Transfer requests made via the website or voice response system received on business days prior to close of the New York Stock Exchange (12 p.m. Alaska time or earlier on some holidays or other special circumstances) will be initiated at the close of business the same day the request was received. The actual effective date of your transaction may vary depending on the investment option selected.

Existing Investment Funds

The plan provides many investment options. Carefully consider the investment objectives, risks, fees and expenses before investing. Contact Empower or look on Empower's website for a prospectus, a summary prospectus and disclosure document, as available, containing this information. Read them carefully before investing.

• U.S. Small-Cap Trust
• S&P SmallCap 600® Equity Index Fund F
• Mid Capitalization Equity Index Fund J
• International Equity Fund
• Global Equity Ex-US Index Fund
• Environmental, Social, and Governance Fund
• Russell 3000 Index Fund
• S&P 500® Stock Index Fund
• Alaska Target Date Retirement Trusts (2010-2070)
• BlackRock Strategic Completion Fund
• Alaska Moderate Growth Balanced Fund
• Alaska Conservative Balanced Fund
• FIAM Core Plus CIT Class H
• Passive U.S. Bond Index Fund
• Alaska Stable Value Fund
• State Street Treasury Money Market Fund – Inst.

Generally, the asset allocation of each target retirement trust will gradually become more conservative as the trust nears the target retirement date and beyond. The date in a target retirement trust’s name is the approximate date when investors plan to start withdrawing their money (generally assumed to be at age 65). The principal value of the trust(s) is not guaranteed at any time, including at the time of the target date and/or withdrawal.

An investment in a Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to have your investment decrease in value.

Caution: Please consider the investment objectives, risks, fees and expenses carefully before investing. For this and other important information, your registered representative can provide you with a mutual fund prospectus for the State Street Treasury Money Market Fund – Inst. and disclosure documents for the investment options exempt from SEC registration. Read them carefully before investing.

The SBS 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 Empower's website Empower's website 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 on Empower's website Empower's DRB website/span> by selecting Investment information under the Investing menu.

On Empower's website Empower's DRB website , 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 Empower's website Empower's DRB website 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 on Empower's website Empower's DRB website .

Carefully consider the investment option’s objectives, risks, fees and expenses. Contact Empower for a prospectus, summary prospectus for SEC registered products or disclosure document for unregistered products, if available, containing this information. Read each carefully before investing.

Your investment could decrease in value when investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

How Can I Get Investment 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 Counselors and 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.
• 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.

The following transactions must be conducted through Empower:

• Inactive and Retired Employees: Changing your address or your name. (Active employees: Contact your employer to change your address or name.)
• Account Withdrawals: Empower processes all Plan payments. Empower should be contacted for information on how to complete disbursement forms and for the status of pending payments.
• Hardship withdrawals.

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 , or from Juneau.

When you terminate service from an SBS-AP employer, either voluntary or via an involuntary layoff, this allows you to withdraw your account once you have been separated from employment for 60 days. There is no need to refund your SBS account if you do not currently need the funds. You have the option to possibly grow your balances in the SBS plan by leaving your money in the plan and directing your investments. Empower is available to assist you in your continued tax deferral of your retirement savings and allocation of funds in the SBS Plan. You will be an “inactive member” (no longer contributing to the plan) but actively investing. As a governmental retirement plan, we offer the added value of low fees for the management and administration of your account.

If you are planning on reinvesting your money by rolling into an outside plan, 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 many plans in the private sector.

Funds may be withdrawn in the event of:

• Leaving employment (including retirement), provided you have a bona fide PDFtermination .
• Death (after which your beneficiaries will take the withdrawal.)

You are not eligible to receive payment from your account until 60 days after you have been terminated from employment. If you are re-hired before the 60-day period has passed, the withdrawal request will be canceled, and a new 60-day period will begin at the next termination. Actual payment distribution occurs after you have been terminated for 60 days or more, and the Plan administrator approves your distribution. The only exception to payment eligibility earlier than 60 days after termination is for a qualified hardship. In the event of your death, funds will be available to your beneficiary. Your money remains invested until your account balance is zero.

If you do not refund or rollover your entire account balance, your money remains invested and you can continue to move among the different investment options until your account balance is zero.

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 73. The balance of your account will continue to change in value depending on market conditions.

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:

• An IRS Lien for unpaid taxes
• A Qualified Domestic Relations Order (QDRO) issued by a court of law
• An Order to Withhold and Deliver Property issued by the Child Support Services Division (CSSD)

Withdrawal Options

After you have met the 60-day termination of employment requirement, you are eligible to apply your account balance to the payment option(s) you choose. The actual dollar amount you will receive depends on such factors as the amount of your contributions, how your investments performed, the payment option(s) you select, and your life expectancy. Payment options include:

1. Do nothing

   and defer payment until you have obtained the age of Required Minimum Distribution

2. Lump Sum

   Partial lump sum withdrawals, or a full withdrawal of the entire account.

3. Periodic Payment

   A payout method that allows you to be paid monthly, quarterly, semiannually, or annually. You can make changes to the payment frequency or amount, or stop it. You may select a specific dollar amount or the number of years over which your account will be paid to you, or you may choose IRC Minimum Distribution payments.

4. Five-Year Period Certain Annuity

   Equal monthly payments for five years (60 months). If you die before receiving all 60 payments, your beneficiary will receive the remaining benefit payments.

5. Ten-Year Period Certain Annuity

   Similar to the five-year period certain but for ten years (120 months).

6. Fifteen-Year Period Certain Annuity

   Similar to the five-year period certain but for fifteen years (180 months).

7. Single Life Annuity

   Monthly payments for your lifetime. No payments are made to your beneficiary after your death.

8. Single Life Annuity with Ten-Year Period Certain

   Monthly payments for the rest of your life. If you die before the guaranteed 120 payments have been made, your beneficiary will receive the remaining guaranteed benefit payments.

9. Single Life Annuity with Fifteen-Year Period Certain

   Monthly payments for the rest of your life. If you die before the guaranteed 180 payments have been made, your beneficiary will receive the remaining guaranteed benefit payments.

10. 50% Joint and Survivor Annuity

    Monthly payments for your lifetime. After your death, your survivor will receive one-half of the monthly amount you were receiving for their lifetime. Your survivor does not have to be your spouse.

11. 100% Joint and Survivor Annuity

    Similar to the 50% Joint and Survivor but, after your death, your survivor would receive the same benefit amount you were receiving for their lifetime. Your survivor does not have to be your spouse.

Any annuity option is irrevocable. The money leaves your account, purchases the guaranteed income, and that is a done deal.

1. Rollover to an Outside Account

Empower processes all payments for the Supplemental Annuity Plan (SBS-AP). Contact Empower for disbursement forms, information on how to complete them, and for the status of pending payments. To contact Empower, call .

Hardship Withdrawals

There are strict provisions for hardship withdrawals. Only the following reasons are valid to obtain an early eligibility for payment of your account (you MUST be terminated in any case):

• medical care described in IRC Code §213(d) incurred by the Participant, by the Participant’s spouse, or by any of the Participant’s dependents.
• the purchase (excluding mortgage payments) of a principal residence for the Participant.
• the payment of tuition and related educational fees, including room and board expenses, for the next 12-month period of postsecondary education, for the Participant, for the Participant’s spouse, or for any of the Participant’s dependents (as defined in IRC Code §152).
• to prevent the eviction of the Participant from their principal residence or the foreclosure on the mortgage on that residence.
• payments for burial or funeral expenses for the participant, the participant’s spouse, children, or dependents (as defined in IRC Code §152)
• any need prescribed by the Internal Revenue Service in a revenue ruling, notice or other document of general applicability which satisfies the safe harbor definition of hardship.

The Participant shall remain responsible for repayment to the plan of any excess amounts received pursuant to an early eligibility distribution should it be determined that such Participant is not entitled to the entire amount he or she was actually paid.

All hardship withdrawals are subject to the applicable requirements of the Internal Revenue Code and regulations.

Waiver of 60-Day Waiting Period Due to Financial Hardship form