For members who first entered the Teachers' Retirement System (TRS) on or before June 30, 2006, the TRS is a Defined Benefit (DB) plan. Your eventual benefit from the plan, if you do not refund your account, is based upon a computation method defined in statute and regulation. It is not based on the amount of money in your refundable account. For anyone hired after July 1, 2006, the TRS is a defined contribution retirement plan (DCR Plan).

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The TRS is administered by the Division Director, Division of Retirement and Benefits.

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You should contact your employer and ask them to submit a change of address for you. If you have trouble getting your address changed through your employer, you should contact the Division of Retirement and Benefits, Accounting Section. If you are retired or no longer working for a TRS employer, you should complete a change of address card and send it to the Division.

You will be vested when you have at least:

• eight paid-up years of membership service; or
• five paid-up years of membership service and three paid-up years of Alaska Bureau of Indian Affairs (BIA) service; or
• fifteen years of paid-up credited service, if the last five years are membership service and you were first hired under the TRS before July 1, 1975; or
• twelve paid-up years of combined part-time and full-time TRS membership service. You must have at least one-half year of membership service as a part-time teacher or one full year of membership service as a full-time teacher in each of twelve school years.

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Periods of Leave Without Pay (LWOP), whether considered "active" or "inactive," cannot be used to satisfy vesting or retirement eligibility. This would extend the length of time needed to vest or meet eligibility for a service based retirement.

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For "active" LWOP you must pay both the employee and employer contributions to the TRS each month while on LWOP. Contributions should be paid through your payroll office.

For "inactive" LWOP you are not required to pay TRS contributions while on LWOP. When you return to work and claim LWOP, an indebtedness equal to the employee and employer contributions will be established.

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You can purchase outside teaching service, Alaska Bureau of Indian Affairs service, or Military service. These are explained in greater detail in other questions and answers.

Part-time members of the PERS, those who work at least 15 hours per week but less than 30 hours per week, receive credit for the number of hours they work. A total of 1,560 hours must be earned to receive a year of service credit. However, service accrued for a stated period of part time service may not exceed the full-time equivalent.

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You are eligible to claim up to 10 years of full-time service in an out of state school or Alaska private school if you were a:

• certified elementary or secondary teacher or certified employee in a position which requires a teaching certificate as a condition of employment in an out-of-state public school either inside or outside the United States supported by U.S. funds, or an approved or accredited non-public school either inside or outside the United States supported by U.S. funds; or
• employment in an out-of-state institution of higher learning requiring academic standing and accreditation by a nationally recognized accrediting agency listed in the Education Directory, Colleges and Universities, by the National Center for Education Statistics; or
• teacher in an approved or accredited non-public institution of higher learning in Alaska.

The cost to purchase outside experience will vary depending upon your entry date and entry base salary after the service was performed in the Alaska TRS. Please contact the Division of Retirement and Benefits for cost information.

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You may claim service as a full-time certified teacher in a position which requires a teaching certificate as a condition of employment; or a professional educator. Alaska BIA service may count toward vesting and retirement eligibility. The cost is based on your entry in the Alaska TRS after the service was performed. If your entry was before July 1, 1970, you will be charged 5% of base salary for each year of Alaska BIA. If your entry was after June 30, 1970, you will be charged 7% of base salary for each year of Alaska BIA and if your entry was after June 30, 1990, the charge is 8.65% of base salary.

If you receive a federal benefit based on Alaska BIA, the Alaska TRS will offset their benefits by the amount you receive in federal benefits for that service.

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You can purchase up to five years of active service including active duty National Guard time. If you were first hired in the TRS after June 30, 1990, and are eligible for a federal benefit based on the same service, you cannot claim the service in the TRS. The cost for eligible service is 7% of your base salary for each year claimed, if you were hired prior to July 1, 1990, or 8.65% of your base salary for each year claimed, if you vested after June 31, 1990.

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Members cannot receive duplicate credit in PERS except as an elected official. Benefits are payable if you are retired in the TRS and you meet the following:

• the service occurs while you are a full-time TRS employee;
• the service is with a municipality or political subdivision that is participating in the PERS at the time the elected service occurs;
• you are compensated for the elected service; and
• you pay the mandatory PERS contributions for the elected service (6.75% of salary).

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If you meet retirement eligibility based on age and you were first hired in a TRS-covered position before July 1, 1990, you can retire with an early reduced benefit at age 50. Normal retirement is age 55. If you were first hired in a TRS-covered position after June 30, 1990, but before July 1, 2006, you can retire with an early reduced benefit at age 55. Normal retirement is age 60.

You may retire from the TRS DB plan at any age with unreduced benefits if you have:

• 20 paid-up years of TRS membership service;
• 20 paid-up years of combined TRS membership and Alaska BIA service, if the last five years are membership service;
• 20 paid-up years of combined years of part-time and full-time TRS membership service (you must have at least one-half year of membership service as a part-time teacher or one full year of membership service as a full-time teacher in each of 20 school years; or
• 25 paid-up years of credited service, if the last five years are TRS membership service.

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How much depends upon the option you elect at retirement. A member can elect a benefit or elect from three different survivor options. The benefit is calculated based upon the following calculation:

• 2% * first 20 years * average base salary, plus
• 2.5% * all years over 20 * average base salary

(All service creditable before July 1, 1990, will be calculated using the 2% multiplier.)

Average base salary is calculated on the three highest salary years during your TRS employment. Salaries that exceed the maximum salary limit under the IRS 26 U.S.C. § 401a(17) limits cannot be used in the calculation.

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Yes. State law requires that a married member select a survivor option unless their spouse waives their entitlement to survivor benefits. If survivor benefits are waived, benefits will not continue past the member's death. If health insurance benefits were payable, they will also be discontinued at the retiree's death unless a survivor benefit was elected at retirement.

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Members who were first hired before July 1, 1982, and have made the additional 1% contribution for one year, may provide survivor's benefits to their spouses and eligible dependent children upon their death. There are two aspects to the benefit. The first is provided if there are dependent children. The monthly benefit is equal to:

• 35% of base salary at the time of death paid to the surviving spouse
• 10% for each dependent child, up to a maximum of 4 children
• 10% for each court-appointed guardian.

When there is no longer any dependent children, the surviving spouse will receive a benefit based on 50% of the retirement benefit the member was receiving at the time of death, or 50% of the benefit the member had accrued at the time of death.

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Yes, the TRS provides automatic increases to retiree benefits. The Post Pension Retirement Adjustment (PRPA) is calculated, effective July 1 each year, by multiplying the recipient's base benefit, including past PRPAs, times:

• 75% of the cost of living increase in the preceding calendar year or 9%, whichever is less, if the recipient is at least age 65 or on TRS disability on July 1; or
• 50% of the cost of living increase in the preceding calendar year or 6%, whichever is less, if the recipient is at least age 60 on July 1, or under age 60 if the recipient has been receiving TRS benefits for at least 8 years as of July 1.

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If you reside in Alaska after you retire, you may receive COLA in addition to your regular monthly benefit. COLA is equal to 10% of your base benefit. "Residing in Alaska" means domiciled and physically present in Alaska. A domicile is that place where you have your true, fixed and permanent home and principal establishment and to which, whenever absent, you intend to return. An absence which exceeds 90 days constitutes a break in residency for COLA purposes.

The following are eligible to receive COLA:

• Members who were first hired under the TRS before July 1, 1990, and their survivors;
• members who were hired under the TRS after June 30, 1990, and their survivors if they are at least age 65; and
• all disabled members.

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Yes, if you return to Alaska in less than 91 days. Absences greater than 90 days will result in the removal of COLA beginning the month following your departure for the entire absence. COLA will be reinstated the first of the month following your return and receipt of your application requesting reinstatement. If your absence is required because of illness, you may be out for up to 6 months, however, your absence must be necessary and certified by your physician.

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Your contribution account balance and any information related to your account is available to you upon proper identification.

You can also access your account balance by visiting the myRnB website.

Administrative regulations do not allow us to release information regarding personal or financial data to anyone other than the member without the member's prior written authorization unless the inquiring party has a subpoena or a court order to secure the information. We are allowed to release the information to the member's employer, former employer, or other authorized state agency.

A member's spouse or legal counsel is NOT entitled to the member's information without a properly executed release.

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Highly compensated employees may become subject to the salary limitations under IRS 26 U.S.C. § 401a(17) if they earn more than the maximum allowed salary for the year. If salaries exceed the limit ($265,000 for 2015) contributions will cease to be taken from their salaries until the start of the next tax year. Any contributions taken in error will be refunded, with interest, to the member and will represent taxable income. Members receiving a refund of contributions under this provision will receive a 1099 at the end of the tax year.

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No! Your account balance is not available to you until you are terminated from employment. Layoff or leave without pay status is not termination for purposes of obtaining a refund.

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You always have the option of leaving the money in your account. If you are a vested member intending to retire in the future, or are a non-vested member and intend to become reemployed in a covered position in the future, it may be wise to do so.

If you are non-vested (less than eight paid years of service) or single, completing the form is sufficient. If you are a married member, your spouse must consent to the refund on a form provided by the Retirement and Benefits Division. This form must be notarized. If the rights to your refund are subject to a Qualified Domestic Relations Order (QDRO), you must also provide the notarized consent of each person entitled under the order.

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Complete the Refund Election form (gen008) form to obtain a refund of your contribution account balance.

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First, the Division of Retirement and Benefits and the State of Alaska do not provide tax advice. Each member's tax situation is unique and you must consider the effect on your individual taxes. You should consult with the Internal Revenue Service (IRS) and a consultant as you deem necessary.

Contributions placed in the TRS before January 1, 1991, are "post-tax" contributions. The contributions have already been taxed and you should owe no further tax on them. The interest earnings from these periods are still subject to income taxes. Both interest and contributions taken as a lump sum refund are subject to a penalty for early withdrawal.

Contributions and interest placed in the TRS on or after January 1, 1991, are "pre-tax" contributions. These contributions have not been taxed previously. Therefore, both the contributions and interest earned on these amounts are subject to income tax.

In January following the year in which a refund is made, members will receive a 1099R informational return which indicates the amount of the taxable and nontaxable portions.

For the "pretax" contributions, if you choose to have the refund sent directly to you at your address or to your regular account at a banking institution, the IRS requires that we withhold 20% of the taxable portion of your refund, even if you later choose to do a "rollover" within the 60 day rollover period. You may also be subject to an additional early withdrawal penalty if you receive the refund before age 59½.

You can avoid the withholding tax on the portion of your refund that you have us "Direct Transfer" to another qualified plan that accepts your transfer, such as an IRA. Only the taxable portion of your refund can be transferred. If your refund includes money that has already been taxed, we will refund that portion directly to you without withholding any taxes on it.

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You must arrange for another qualified plan, such as an Individual Retirement Arrangement / Account (IRA), to accept a direct transfer of your taxable contribution account balance. Once you have arranged for an institution to accept this transfer, you would complete a Notification of Termination/Refund Application form filling in the appropriate information. Be sure to include the plan name, address, plan contact person, and your account number.

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Generally, except for a few exceptions, employee contributions and other amounts held in the system are exempt from levy to enforce the collection of a debt, and are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge of any kind, either voluntary or involuntary, without first being received by the person entitled to the amount under the terms of the system.

The exceptions primarily include unpaid state, local, or federal taxes, a Child Support Enforcement Order for unpaid child support, and up to one month's unpaid earnings of an individual employed by a member. In addition, a member's right to receive benefits may be assigned by a Qualified Domestic Relations Order as a result of a divorce or dissolution.

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Until an employee terminates employment or is appointed to retirement, the employee has no right to receive his regular contribution account balance, and therefore, it cannot be distributed at that time. However, while we will not distribute your account balance, we will place a hold on your account. A valid attachment, still in effect when the employee terminates, or is appointed to retirement, will be honored at that time.

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Yes! If we are forced to honor a valid attachment, a member becomes a former member and loses any rights he or she may have had as a member. Even if the attachment is for a portion of your account balance, we would be forced to refund the balance to you, since there can be no partial refunds from the system. In this instance, an involuntary refund, plus any accumulated accrued interest, may be repaid to the system to reinstate your service without becoming reemployed in a system covered position. However, if the original attachment is still in effect, any repayments will be forwarded to the appropriate agency to satisfy any amount still due.

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The Division of Retirement and Benefits takes a critical view of what constitutes an emergency. For any emergency consideration, you must request a waiver in writing, and provide sufficient proof of your emergency. If you have other extenuating circumstances that you feel warrant consideration, you must provide a written detailed description to us along with your request for a waiver. If a waiver is granted in that case, a refund will be processed as soon as your employer has transmitted all of the contributions that were withheld from your pay (generally at least 30 days).

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If you hire before July 1, 2010, yes. You may reinstate previously refunded service by repaying your refund amount and any interest that has accrued as required by law. Refunded service does not count toward vesting or retirement eligibility unless the indebtedness is paid in full.

If you hire on or after July 1, 2010, no. You will forfeit your refunded service and tier and will be enrolled in the PERS/TRS DCR Plan.

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After receiving verification that your indebtedness has been established, you may make payments on your indebtedness directly to the Division of Retirement and Benefits either in full or with periodic payments over time.

If you intend a payment to pay off your indebtedness balance, you should contact us for the balance. You may also establish a monthly payroll deduction through your employer. We can estimate when your indebtedness would be paid in full based on the amount of deduction you set up. If you have not received verification that your indebtedness has been established, contact us. Interest on your indebtedness will continue to accrue until your indebtedness is paid in full.

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The interest rate for the TRS is 7 percent, and it is compounded annually. Interest on an indebtedness is posted monthly (see question below regarding interest posting).

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If you have not completely paid your indebtedness by the time you retire, your monthly benefits will be actuarially reduced over your lifetime, unless the reduction causes your benefit to be less than what it would have been without the service related to your indebtedness. If that is the case, your indebtedness payments would be refunded to you.

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Interest posts to an account during the last monthly processing cycle during the last week of the month. Your indebtedness payments must be received by the cutoff for input to that processing. Please call the Division for cutoff times.

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No. Non-vested members whose employer has elected to participate in the conversion option may choose to transfer to the new plan. The decision to elect to convert to the new plan is solely the eligible employee's choice.

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The window period for election begins on the date the resolution to participate is approved by the TRS Administrator and ends 12 months later or when the member vests, whichever occurs first.

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Yes and No. Since you are not an active employee with your former employer, you do not have the option to convert to the new plan. However, if you reemploy with your former employer before you vest and before the 12 month conversion period ends, you may elect conversion.

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No. Only the employer you are currently working for must agree to participate in the conversion option. Your current employer is responsible for matching the balance of your employee contribution account up to the allowable limits of the IRC Sec. 415(c) regardless of which TRS employer you may have earned service with in the past.

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Please visit the Death and Survivor Benefits page for details.

Yes, because this is the only record we have of ensuring that death or survivor benefits are paid in accordance with your wishes. If you are married at the time of your death and you were married to the same person during part of your TRS employment, your spouse is automatically your beneficiary, regardless of your written designation, unless:

• your spouse consents to another beneficiary on the Retiree Beneficiary Designation (gen053) form. However, your spouse's consent to name another beneficiary is not required if the member was married for less than 2 years at the time of his or her death and the member and spouse were not living together when the designation was changed; or
• another person (such as a former spouse) is eligible for the benefits under a qualified domestic relations order (QDRO) . That person would be entitled to the portion of the benefit that is ordered by the QDRO.

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Yes, if you qualify. To qualify for disability, you must have been in a TRS position for 5 years, for which no indebtedness is owing, and be unable to perform the usual duties of your job, or the duties of another job that an employer makes available for which you are qualified by training or education. While disabled, you will receive monthly benefits equal to 50% of your annual base salary immediately before becoming disabled (divided by 12 months). You will receive an additional 10% for each of your dependent children, if any, up to a maximum of four children.

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Your account balance, as well as your account activity, is included in your quarterly statement. You may also check your account balance between statements by calling KeyTalk at or by using your PIN to access the information on this site.

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You are not required to remove your funds from the plan once you terminate employment. You may continue managing your account until a future date of your choosing. If you elect to withdraw your account, you may choose between several options. You may elect:

• to rollover the amount to another qualified plan without tax consequences; or
• choose a lump sum payout (See "Taxes and Penalties" section); or
• a monthly annuity for a defined period (5, 10 or 15 years); or
• a monthly annuity for your lifetime; or
• a joint and survivor lifetime annuity.

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First, you must be terminated from employment. Then, you must submit an application for payment on the PERS/TRS DCR Distribution Request form. On the form, you can choose to be paid now or to defer payment to a future date.

The date of payment depends on when the Distribution Request is received. Generally, lump-sum payments are paid within 65 to 80 days after termination. Continuing annuity payments usually begin on the first day of the month following the month in which your 60-day waiting period ends.

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If you are age 65 or greater and terminate employment you need to submit a Distribution Request form to defer payment to a later date, not later than April 1 of the year following the year in which you turn 70-1/2 years of age.

If you are under age 65, you do not need to submit a Distribution Request form until you are ready to begin receiving payments.

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Your PERS/TRS DCR plan account is considered marital property subject to equitable division in the event of a divorce or dissolution. Contributions and earning you have accumulated during your marriage are considered to be one-half the property of your spouse.

When you choose any option other than the 50% or 100% joint and survivor option with your spouse as a survivor, your spouse must consent to this choice by signing a Distribution Request form.

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Yes. Because the contributions and earning you have accumulated during your marriage are considered to be one-half the property of your spouse, the plan cannot pay you the funds until the status of your spouse's entitlement is clear. You are required to submit a court-certified copy of the divorce decree or dissolution to the plan for review. If you have been released through the divorce or dissolution, a review of the property settlement will indicate the status of your ex-spouse's share of your account.

If your ex-spouse has retained ownership of his or her share after the divorce or dissolution, the plan requires a domestic relations order (DRO) issued by the court be filed prior to any payments being made from your account. Plan staff will review the DRO to determine if it meets the requirements set out by the statutes governing the plan. If it does, it will then be qualified and the plan will implement the order.

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Depending on the payout form you select, you may be required to provide proof of birth date for yourself as well as your designated spouse and a copy of your marriage certificate.

A birth certificate, baptismal record, military discharge, Alaska driver's license, or a passport are acceptable forms of proof of birth.

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Yes, if you have been separated from employment.

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A beneficiary designation is a form on which you indicate who is to receive any benefits you may be entitled to from the PERS/TRS DCR Plan should you die before drawing your benefits out of the plan.

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If you wish to elect another person as your primary beneficiary (50% or greater), your spouse must provide written consent on the PERS/TRS DCR Plan Beneficiary Designation for Active and Deferred Participants form. Consent is not required if you were married for less than one year and you and your spouse were not living together when the designation was changed.

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Yes. Since a divorce, dissolution or annulment voids any prior beneficiary designations you have made, you must file a new beneficiary designation after the divorce, dissolution, or annulment specifically affirming in writing that your former spouse is the primary beneficiary.

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If your account exceeds $5,000, the plan must make the payment to an adult member of the minor's family who is a court-appointed guardian, a person having custody and care of the minor or a financial institution with a federally insured savings account in the sole name of the minor. A conservatorship must be established for the minor before payments can be made.

If your account is less than $5,000, the plan may make payments without a conservatorship to the court-appointed guardian or person having custody and care of the minor or a financial institution with a federally insured savings account in the sole name of the minor.

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When you fail to designate a beneficiary or, if no designated beneficiary survives you, the death benefit will be paid according to statute in the following order:

• First to your surviving spouse. If there is no surviving spouse;
• second to your surviving children in equal parts. If there are no surviving children;
• third to your surviving parents in equal parts or, if there are no surviving parents;
• fourth to your estate.

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Yes. When an estate or trust is the beneficiary, a copy of the court document naming the personal representative of the estate or trustee of the trust must be filed with the plan along with the beneficiary designation form. The estate or trust must have an Employer Identification Number (EIN) from the federal government before payment may be made.

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There is no limit to the number of times you can change who is to receive your benefits in the event of your death. The last beneficiary designation on file is the one the plan will use to determine who should receive your benefits. Please be sure to keep your beneficiary's contact information up-to-date or to change your beneficiary if you have a change in marital status.

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For PERS members, your employer contributes 5% of your gross eligible PERS salary to your account.

For TRS members, your employer contributes 7% of your gross eligible TRS salary to your account.

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Both PERS and TRS members contribute 8% of gross eligible salary to the defined contribution account.

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No. The PERS/TRS DCR Plan does not allow additional voluntary contributions.

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To qualify as an occupational death, the proximate cause of death must be a bodily injury sustained or a hazard undergone while in the performance and within the scope you're your duties and not be the result of negligence on your part. A copy of your death certificate showing cause of death is usually sufficient to show your death was caused by an occupational injury or accident while you were conducting the usual duties of your job. To establish an occupational cause for illness may require additional medical documentation confirming causation.

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Beneficiaries are only eligible to receive the balance of your retirement account, including gains and losses, less expenses.

A surviving spouse is eligible to receive a monthly survivor benefit of 40% of your monthly gross compensation at the time of your death or 50% of your monthly gross compensation if you are a peace officer/firefighter member until the time you would have reached eligibility for normal retirement.

Your employer will also continue to make monthly contributions based on your salary at the time of your death to a survivor account established for your surviving spouse in the occupational death fund. At normal retirement, your survivor may withdraw the balance of this account, including gains and losses, less expenses. This fund is invested by the plan fund managers while the survivor benefit is being paid.

While your surviving spouse is receiving monthly survivor benefits, he or she may not withdraw your DCR retirement account balance. However, your surviving spouse will be able to direct the investment of the account among the ten available options.

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A consulting physician will review your medical documentation and make a recommendation to the PERS/TRS DCR plan Administrator. The Administrator will then review your file and the consulting physician's recommendation to determine if you qualify for a disability retirement benefit. If you are approved for a benefit, you will be notified by phone, followed up by a letter.

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If the Administrator determines you do not qualify for a disability retirement benefit, you may appeal the decision to the Office of Administrative Hearings within 30 days of notification of the denial for benefits. You may also submit additional medical evidence to the Administrator for review.

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No, you do not need to terminate employment before applying for a disability benefit. However, if your disability benefit is approved, you must terminate within 30 days of the Administrator's decision. Your termination of employment must be due to the medical condition causing your disability.

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You contact the Division of Retirement and Benefits for an application packet. You will receive a booklet that gives you step-by-step information on how to apply and what types of documentation must be submitted. You must submit your application to the division within 90 days after termination of employment if you have already terminated. Remember, you do not have to terminate before you can apply. If you miss the 90-day deadline, please contact the division for assistance.

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In general, disability applications take six to eight weeks to process. It can take longer if you do not provide adequate medical documentation or other required information to support your application. It is your responsibility to provide complete information to the division so a determination can be made.

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No. Coverage under the retiree medical plan is not available to any participants before eligibility for normal retirement. However, medical coverage can be provided for a limited period by using the federal COBRA entitlement to purchase continuing coverage from your employer health plan as a person losing coverage. Coverage for your disabling condition may be provided by Workers' Compensation. You will be eligible to enroll in the retiree medical plan when you reach normal retirement eligibility.

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Disability benefits are intended to provide a means of economic survival if you must terminate your employment because of a total and presumably permanent disability. The program is not intended to supplement your income if you should recover from your disability and are able to return to work. If you return to work, you should contact the division immediately.

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You are eligible to receive payment of your account 60 days after you have been terminated from employment. If you are rehired 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.

This 60-day period is established in the Alaska Statutes. The only exception is a qualified hardship (see question 50). Actual payment mailing occurs after you have been terminated 60 days.

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Yes, if you have been separated from service.

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No. Money previously withdrawn cannot be re-deposited into your account. Once you have requested payment of the account and the 60-day waiting period has passed and the payment has been issued, the account cannot be reinstated.

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First, you must be terminated from employment. Then, you must submit an application for payment on the PERS/TRS DCR Distribution Request form. On the form, you can choose to be paid now or to defer payment to a future date.

The date of payment depends on when the Distribution Request is received. Generally, lump-sum payments are paid within 65 to 80 days after termination. Continuing annuity payments usually begin on the first day of the month following the month in which your 60-day waiting period ends.

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If you do not wish to take a distribution from your Defined Contribution retirement account, you do not have to until the IRS Required Minimum Distribution (RMD) begins. You must take your first RMD for the year in which you turn age 72. However, the first payment can be delayed until April 1 of the year after you reach the age of 72. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.

If you are still employed in PERS/TRS DCR beyond age 72, your RMD requirements will begin after you terminate PERS/TRS employment.)

If an account owner fails to withdraw the RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline, the amount not withdrawn is taxed at 50%.

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Your PERS/TRS DCR plan account is considered marital property subject to equitable division in the event of a divorce or dissolution. Contributions and earning you have accumulated during your marriage are considered to be one-half the property of your spouse.

When you choose any option other than the 50% or 100% joint and survivor option with your spouse as a survivor, your spouse must consent to this choice by signing a Distribution Request form.

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Yes. Because the contributions and earning you have accumulated during your marriage are considered to be one-half the property of your spouse, the plan cannot pay you the funds until the status of your spouse's entitlement is clear. You are required to submit a court-certified copy of the divorce decree or dissolution to the plan for review. If you have been released through the divorce or dissolution, a review of the property settlement will indicate the status of your ex-spouse's share of your account.

If your ex-spouse has retained ownership of his or her share after the divorce or dissolution, the plan requires a domestic relations order (DRO) issued by the court be filed prior to any payments being made from your account. Plan staff will review the DRO to determine if it meets the requirements set out by the statutes governing the plan. If it does, it will then be qualified and the plan will implement the order.

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Depending on the payout form you select, you may be required to provide proof of birth date for yourself as well as your designated spouse, a copy of your marriage certificate.

A birth certificate, baptismal record, military discharge or a passport are acceptable forms of proof of birth.

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Yes. Because the contributions and earning you have accumulated during your marriage are considered to be one-half the property of your spouse, the plan cannot pay you the funds until the status of your spouse's entitlement is clear. You are required to submit a court-certified copy of the divorce decree or dissolution to the plan for review. If you have been released through the divorce or dissolution, a review of the property settlement will indicate the status of your ex-spouse's share of your account.

If your ex-spouse has retained ownership of his or her share after the divorce or dissolution, the plan requires a domestic relations order (DRO) issued by the court be filed prior to any payments being made from your account. Plan staff will review the DRO to determine if it meets the requirements set out by the statutes governing the plan. If it does, it will then be qualified and the plan will implement the order.

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No. You may only withdraw your PERS/TRS DCR Plan account after you have terminated employment.

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Yes. You must be terminated from employment to receive any payment from your account. Only the following reasons are valid to obtain an early eligibility for payment.

• medical care described in 26 U.S.C. § 213d incurred by the participant, the participant's spouse, or the participant's dependent, or necessary to obtain medical care;
• the purchase of a principal residence for the participant;
• postsecondary education tuition and related educational fees for the next 12-month period for the participant, the participant's spouse, or a dependent of the participant; in this paragraph, "dependent" has the meaning given in 26 U.S.C. § 152 ;
• prevention of the eviction of the participant from the participant's principal residence or foreclosure on the mortgage of the participant's principal residence; or
• any need prescribed by the United States Department of the Treasury, Internal Revenue Service, in a revenue ruling, notice, or other document of general applicability that satisfies the safe harbor definition of hardship under regulations adopted under 26 U.S.C. § 401k .

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Most people do not have the time, the interest or the expertise to manage investments successfully. Keeping this in mind, the PERS/TRS DCR Plan automatically enrolls all new employees into an age based target fund called the Alaska Target Retirement Trust. The target fund provides exposure to a diversified mix of stock, bonds, and money market securities for long-term investors with a higher tolerance for risk. The trust is designed to gradually invest more conservatively as the target year approaches and beyond.

The plan also provides investment advice services offered by Empower Retirement and their subsidiary, Advised Assets Group (AAG).

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If you want account management that is tailored to your investment risk tolerance and takes into account other assets you may have or you want to do your own investing, there are three other options available to you. They are:

• Managed Accounts: Under managed accounts Account you will have your account automatically monitored, rebalanced and reallocated every quarter by AAG based on data resulting from recommendations of an independent financial consultant to respond to market performance. You will receive an account update and forecast statement annually and can update personal information at any time by calling the Plan's toll-free customer service number or visiting the Plan web site.
• Online Investment Advice: An online tool that provides specific recommendations based upon a participant's financial situation. The recommended investment portfolio is based on information drawn from the Participant's deferred compensation account profile and from the Core Investment Options available in the Plan. The Participant then implements the recommended investment portfolio and manages his or her retirement account online.
• Online Investment Guidance: An online tool that provides personalized asset allocation assistance without recommending any one specific fund.

You may opt out of the Alaska Target Retirement Trust at any time by calling the Plan's toll-free customer service number or visiting the Plan web site. From there you can enroll in either the managed accounts, advice or guidance features.

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Under Managed Accounts, you will pay 0.5% annually of your assets. The fee is deducted from your account on a quarterly basis.

The fee for Online Investment Advice is $25.00 per year deducted from your account on a quarterly basis.

There is no charge for the Online Investment Guidance tools.

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Yes. You will pay a fee to the investment fund managers based on the funds your contributions are invested in. Some of the fees are set while other vary over the course of the year.

You will also pay a recordkeeping and administrative fee of 0.009% of your asset balance monthly as well as a flat fee of $35.00 per year for active participants and $25.00 per year for inactive participants (participants who are not actively employed but still have their contributions managed by the PERS/TRS DCR Plan)

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The State of Alaska Public Employees' (PERS) and Teachers' (TRS) Defined Contribution Retirement (DCR) Plan Retiree Health Reimbursement Arrangement Plan is established for employees of the state, political subdivisions of the state, and public organizations of the state who first become members of the defined contribution plan of the public employees' retirement system under AS 39.35.700 - 39.35.990 on or after July 1, 2006, and for teachers who first become members of the defined contribution plan of the teachers' retirement system under AS 14.25.310 - 14.25.590 on or after July 1, 2006.

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The purpose of the plan is to allow medical care expenses to be reimbursed from individual savings accounts established for eligible persons.

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The individual HRA is funded by employer contributions each pay period; no employee contributions are allowed.

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The Alaska Retirement Management Board is the fiduciary of the fund and has the same powers and duties under this section regarding the funds as are provided under AS 37.10.220 .

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For each member of the plan, an employer shall contribute to the PERS and TRS retiree HRA trust fund an amount equal to three percent (3%) of the average annual compensation of all employees of all employers in the teachers' retirement system and public employees' retirement systems. The annual HRA contribution amount is noticed annually to the ARM Board and then employers and members are noticed via the Employer Rates page.

The amounts contributed annually for each HRA full time member with one year of service are shown here:

Annual HRA Contribution
Fiscal Year	Annual
2025	$2,386.80
2024	$2,302.56
2023	$2,237.04
2022	$2,168.40
2021	$2,159.04
2020	$2,121.60
2019	$2,102.88
2018	$2,084.16
2017	$2,049.36
2016	$2,004.52
2015	$1,960.53
2014	$1,896.60
2013	$1,848.43
2012	$1,778.09
2011	$1,720.70
2010	$1,699.71
2009	$1,616.81
2008	$1,531.27

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The Division of Retirement & Benefits maintains a separate record for each member to account for the employer contributions on behalf of the member as well as the investment earnings/losses allocated annually to each eligible account balance.

The information is located in two areas: (1) in the member's myRnB online account (the same place you can find copies of your monthly retiree paystubs) and (2) eligible members will have their HRA account balance reported on their quarterly Empower statement. Additionally, you may contact the .

If you are a retiree that currently uses your HRA account, please contact Inspira Financial, who administers retiree HRA accounts, for your most current balance.

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The following members are eligible for HRA employer contributions: active member currently working for a participating PERS / TRS Defined Contribution Retirement Plan employer per AS 14.25.590(27) and AS 39.35.990(16) ; those who meet the definition of a PERS/TRS Defined Contribution Retirement Plan member per AS 39.30.495(9) ; disabled members per AS 14.25.483 and AS 39.35.890 ; surviving spouse per AS 14.25.487 and AS 39.35.892 ; and surviving minor children.

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The normal retirement age is the age set for Medicare eligibility at the time the member retires, currently age 65.

Additionally, a member's surviving spouse is eligible to elect medical benefits if the member had retired or was eligible for benefits at the time of the member's death.

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The requirements are listed below:

• Age 65 with a minimum of 10 years of defined contribution service
• At least 30 years of service – TRS and PERS All Other members
• At least 25 years of service – PERS Peace Officer / Firefighter
• Does NOT have to retire directly from the plan
• Or if there is a terminated employer relationship according to AS 39.35.615(a) where the employer terminates from PERS, and an employee/member has service time and HRA contributions from that employer.

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As noted in the FAQ above, you must have at least 10 years of PERS / TRS defined contribution service. However, if you terminate employment before meeting the eligibility requirements noted above, you lose any right to the contributions made on your behalf for the HRA.

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If a person returns to employment with a participating employer by December 31 of the year in which the person reaches 65 years of age, the person's account balance shall be restored in the amount recorded on the date of termination from the trust, adjusted for inflation at the rate of the Consumer Price Index for Anchorage, Alaska. The earlier period of employment with a participating employer shall be credited toward eligibility for medical benefits. You must meet eligibility requirements to begin using the HRA account balance.

However, failure to return to employment before or during the year the member reaches age 65 will result in the irrevocable loss of the HRA account.

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AS 39.30.370 states that “The ARM Board shall establish by regulation the rate of interest applied annually to the amount in a member's individual account. The regulation established for the annual posting of interest is 15 AAC 112.810 – Health Reimbursement Plan Rate Computation.

The Division has until January 15 of the calendar year following the end of the fiscal year to post interest to an eligible member's account. Starting with Fiscal Year 2020's investment income / loss, the Division expects to post investment income / loss by November following a fiscal year. For example, investment income / loss for fiscal year ended June 30, 2020, we expect to be posted to eligible member accounts by November 2020.

DRB News Articles

• Fiscal Year 2024 Investment Gain Information
• Fiscal Year 2023 Investment Gain Information
• Fiscal Year 2022 Investment Loss Information

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See the table below for the interest rate applied to eligible member account balances each year:

HRA Interest
Fiscal Year	PERS	TRS
2024	12.6884%	11.9757%
2023	10.2490%	9.3722%
2022	-8.4740%	-7.8514%
2021	41.4117%	39.0786%
2020	6.0265%	5.6086%
2019	8.4785%	8.0819%
2018	10.9103%	10.2339%
2017	17.8758%	17.3789%
2016	0.1549%	0.1109%
2015	4.3376%	4.2197%
2014	22.5315%	23.2874%
2013	14.2995%	14.6413%
2012	2.5555%	2.1560%
2011	20.7688%	21.1813%
2010	1.0000%	1.0000%
2009	-11.0290%	-11.8556%
2008	-6.0675%	1.0000%
2007	1.0000%	1.0000%

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The amount to be allocated to eligible accounts is determined by investment earnings (losses) of the fund, reinstatement costs (CPI adjustments), and the fund expenditures for the year.

Before interest is posted, the Division must determine an amount to be transferred to the “Expense and Reinstatement Reserve Account” each year. The reserve account balance equals five times the fiscal year's expenditures and reinstatement costs (CPI costs for members who reinstated their account balance).

After transfer to the “Expense and Reinstatement Account”, the remaining investment income/loss balance is divided by the eligible member individual account balances as of June 30 to get an interest rate.

Investment income (loss) after transfers divided by Total eligible member balances.

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As noted previously in “Eligibility”, a person who terminates employment before meeting the eligibility requirements of AS 14.25.470 or AS 39.35.870 loses any right to the contributions made on behalf of the person to the TRS DCR and PERS DCR health reimbursement arrangement trust fund.

If a person returns to employment with a participating employer by December 31 of the year in which the person reaches 65 years of age, the person's account balance shall be restored in the amount recorded on the date of termination from the trust, adjusted for inflation at the rate of the Consumer Price Index for Anchorage, Alaska.

The earlier period of employment with a participating employer shall be credited toward eligibility for medical benefits.

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See the table below for the CPI rate applied to eligible member account balances each year:

CPI Rate
Fiscal Year	CPI%
2024	2.411881%
2023	1.550252%
2022	8.354990%
2021	3.855968%
2020	-0.753937%
2019	2.159326%
2018	1.995859%
2017	0.874502%
2016	-0.418709%
2015	1.070648%
2014	1.979378%
2013	2.698094%
2012	2.237003%
2011	3.003255%
2010	2.708319%
2009	0.408226%
2008	4.625039%
2007	1.422424%

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If you have at least ten years of service and are Medicare age eligible, yes, you may use the HRA without purchasing the system medical insurance.

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Yes, the HRA can be used for covered expenses for your dependents. Eligible dependents include your spouse and your dependent children as defined under Section 1.3.2 of the DCR Retiree Health Plan Booklet .

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No. Loans or borrowing of any kind are not permitted.

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No. The plan does not recognize any voluntary or involuntary attempt by you to assign, pledge, sell, transfer, or encumber your account. Any attempt to do so is void.

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Yes. Your account can be divided as provided in a qualified domestic relations order with a separate account established for your ex-spouse. Your account can also be attached by a child support order or an IRS levy.

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In general, payments you receive will be subject to income taxes. If you choose a lump sum payment to yourself, the plan is required to withhold 20% for payment of federal taxes. In addition, your payments will be subject to an additional 10% penalty if you receive your payment before you reach age 59 1/2. The penalty generally does not apply if:

• Distributions are paid at your death;
• You suffer a permanent and total disability and are not eligible for disability benefits from the PERS/TRS DCR plan;
• You must comply with a Qualified Domestic Relations Order payment [for that portion to be distributed to the alternate payee, however, if an alternate payee transfers the money to an IRA, it is then subject to all the normal tax and penalty rules that apply to an IRA; or
• You have selected lifetime distribution options.

You are solely responsible for determining how federal tax laws affect your particular situation. You should contact your tax advisor or the Internal Revenue Service if you need additional information. The Division of Retirement and Benefits does not give tax advice.

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You are 100% vested in the contributions you make to the plan and any change in value when they are placed into your account.

You vest in the contributions your employer makes to your account in stages with 100% vesting after 5 years of service. The vesting schedule is:

• 2 years 25%
• 3 years 50%
• 4 years 75%
• 5 years 100%

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You will be able to invest the employer contributions made on your behalf in any of the fund options you choose when they are placed into your account. The vesting schedule affects how much of the employer contributions and related gains or losses you can refund from the account when you terminate employment.

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No. You do not have to make any decision about your SBS account immediately. Distributions are not required until the later of the first day of April of the calendar year following the calendar year in which you attain age 70 ½ or the date of actual retirement. You can leave your account balance in the plan and continue to control the investments. You can continue to participate in Managed Accounts or Investment Advice.

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No, you can take a partial refund.

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You are first eligible to receive payment of your account 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. However, if you terminate, and select an annuity payment, the annuity payment you are receiving will not be affected by subsequent re-employment. Partial lump sum withdrawals will cease upon re-employment. Actual payment mailing occurs after you have been terminated 60 days and the Plan administrator approves your distribution. The only exception to payment eligibility earlier than 60 days after termination is for a qualified hardship. There are very strict criteria that must be met for a hardship distribution.

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Payment options include:

• Do nothing and defer payment until you have obtained the age of Required Minimum Distribution (RMD)
• Lump-sum payment (full or partial)
• Five-, 10- and 15-year period certain annuity
• Single life annuity
• Single life annuity with 10- or 15-year period certain
• 50% or 100% joint/survivor annuity
• Periodic payment
• Direct rollover to an eligible retirement plan as set forth in the Alaska Supplemental Annuity Plan Document.

Lump-sum payments to participants, former spouse alternate payees, and spouse beneficiaries are eligible for direct transferor rollover to an eligible retirement plan as set forth in the Alaska Supplemental Annuity Plan. A rollover is a payment of your Plan benefits to another eligible plan. A payment from the plan that is eligible for “rollover” can be taken in two ways: You can have your payment paid in a direct rollover or paid to you and rolled over within 60 days of distribution.

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You should consult with a qualified tax advisor to determine how the different distribution options will affect your taxes.

This FAQ provides general information regarding the State of Alaska Supplemental Annuity Plan. In the event of a conflict between this FAQ and the plan document, the plan document controls.

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The Deferred Compensation Plan allows you to voluntarily set aside a portion of your income either before it is taxed or after it has been taxed. The amount set aside, plus any change in value (interest, gains and losses), is payable to you or your beneficiary at a future date. Upon becoming eligible to participate in the Plan, you may elect to defer your income on a pre-tax or post-tax basis. By doing so, you agree to reduce your salary by an agreed-upon amount. This amount may not exceed certain requirements (outlined below).

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Any permanent employee, long-term nonpermanent employee, or elected official of the State of Alaska.

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The Alaska Deferred Compensation Plan (DCP) is an eligible deferred compensation plan under Internal Revenue Code Section 457. Employees may join any time after they are eligible and complete the necessary enrollment forms.

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You may enroll directly on the Empower Retirement site (PIN required), or to request your PIN.

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• DCP Complete General Plan Information
• DCP Summary Booklet

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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.
• Hardship withdrawals

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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.

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If you do nothing else, the dollar value of your accrued personal leave will be paid out to you in your final paycheck. The amount paid to you will be subject to applicable taxes.

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In accordance with 2 AAC 08.045 , personal leave balances are converted monthly to a cash value, by multiplying the hours accrued by the annualized hourly rate of pay for the pay period.

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Yes. If you participate in the State’s deferred compensation plan you can direct some or all of your leave (depending on what you have contributed so far in the tax year) to your deferred compensation account. You must submit a request to the Division of Retirement Benefits, Attention Natalya Khomyakova at . There is a deadline for submitting the request, however.

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Under the terms of the Alaska Deferred Compensation Plan, requests must happen in the month prior to termination. Therefore, if you know the month in which you plan to terminate state employment, you must submit the conversion request anytime during the prior month.

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If you would like to enroll in the Deferred Compensation Plan you can either complete your enrollment online or you can fill out the enrollment form and submit it to Empower Retirement at the fax number listed on the form. If you need a pin number for the website you can contact Empower Retirement at .

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You can access your account after you have terminated employment or there is an unforeseeable emergency (as defined by the Alaska Deferred Compensation Plan). When you qualify for a distribution, your account value may be applied to the distribution option(s) you choose. These options include:

• Do nothing and defer payment until you have obtained the age of Required Minimum Distribution
• Lump-sum payment (full or partial)
• Five-, 10- and 15-year period certain annuity
• Single life annuity
• Single life annuity with 10- or 15-year period certain
• 50% or 100% joint/survivor annuity
• Periodic payment
• Direct rollover to an eligible retirement plan as set forth in the Alaska Deferred Compensation Plan.

You may begin receiving funds immediately or defer receipt until to any date up to April 1 of the year after attaining age 70½. You will be allowed to take partial distributions, and there is no limit on the number of payments that can be taken; however, if you do not receive payment of your entire account, you must maintain a minimum $1,000 account balance.

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The Division of Retirement and Benefits will provide information and group seminars on leaving state employment in November. Generally speaking, employees that wish to convert leave to deferred compensation have adequate opportunity to do that in November so long as their last day of service is in December. The Governor is sworn into office at 12 noon on December 3.

If, however, you believe you will terminate state service in December, you should consider converting personal leave in November. Leave cash in requests for the month of November must be submitted to the Division by November 30.

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Pre-tax contribution option: Contributions to your account made under the pre-tax options reduce your taxable income for the year. These contributions and all associated earnings are then not subject to tax until you terminate employment and withdraw them.

Post-tax contribution option:The Deferred Compensation Plan has a Designated Roth Option that permits contributions to the plan on an after-tax basis. The Roth deferrals and associated earnings can be withdrawn tax-free in the future if the requirements for a qualified distribution are met. You may designate all or a portion of your contributions to the Designated Roth Option.

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The regular contribution limit for those UNDER age 50 is $19,000 in 2019. Members age 50 or older will be able to make additional contributions. The increased contribution amount is $6,000 for 2019.

You may defer a minimum of $50 per month ($25 each pay period).

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The catch-up provision is available to employees who are within three years of their normal retirement eligibility. Special catch-up allows you to make up for contributions you could have made during previous years of state employment but didn’t.

The special catch-up limit is double the regular contribution limit. For 2019, this could be up to $38,000.

You may contribute under the special catch-up provision for a maximum of three consecutive years. Once you elect to enroll in the special catch-up provision, if you do not utilize it for all three consecutive years, you cannot make up the amounts not utilized at a later time or with another employer.

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You may increase or decrease your contribution amount once per month.

You may make transfers among existing fund options and allocation changes for future contributions once a day. There is no charge.

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The Plan provides for twenty-seven investment alternatives. Once contributions have been allocated among these funds (in whole percentages ranging from 0% to 100%), money may be transferred across funds daily. Investment Options Detail Sheets and Investment Performance Monthly Reports are available on the Empower Retirement website

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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.

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The Periodic Payment option is one of the many available benefit payment options under the State of Alaska Deferred Compensation Plan. With Periodic Payments, you are able to enjoy benefit payments that are withdrawn directly from your account balance. You elect the amount and frequency of your payments. Your remaining account balance will continue to earn gains or losses associated with the funds your account is invested in.

Unlike life annuity options, Periodic Payment options provide NO guarantee of lifetime income. The benefit payments will continue only until assets are depleted. You should carefully review all your payout options before making a selection.

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The minimum payment to you must be an amount which meets the distribution requirements of the Internal Revenue Code, but can never be less than $50. Payments will be made at the necessary frequency to ensure the $50 minimum payment is met.

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All payments are available on a monthly, quarterly, semi-annual or annual basis, so long as the $50 minimum is met.

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When a payment is due, the appropriate number of units will be redeemed to equal the payment amount. Because the unit values will vary from payment date to payment date, the number of units redeemed will vary accordingly.

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Your investment options automatically will be liquidated on a pro rata basis. However, you may elect specific funds for payments to be drawn from as long as there are sufficient monies available.

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You maintain control of investments of the account balance during Periodic Payment payouts.

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There are no additional expenses, but all plan expenses continue to apply (recordkeeping, investment management, etc.).

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Yes. You may change your payment structure at any time. You must always meet any minimum distribution requirements that apply by law.

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Yes. You can decide to do a partial or complete transfer, or rollover, to an IRA or other qualified plan. However, once there, all the tax penalty rules that did not apply to a regular payment from a 457 plan (i.e., the 10% early distribution penalty for payments before 59-½) now apply to payments made from the other plan.

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Advantages:

• You can transfer among all investment options available under the plan during the payout phase.
• Payments before 59-½ are not subject to an additional 10% early distribution penalty.
• You have maximum flexibility in the payment method. You can change the payment method at any time.
• You can later decide to direct transfer or rollover your account to an IRA or other qualified plan.

Disadvantages:

• You can outlive assets (unlike life annuity options).
• Your payments may fluctuate.

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The death benefit is the remaining account balance. No more payments will be made and there will be no death benefit when the account balance is zero.

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The Roth 457 option for governmental deferred compensation plans was authorized by Congress effective January 1, 2011. A Roth 457 is not a Roth IRA. Neither is a Roth 457 a separate plan; it is simply a way for employees to control the taxation of their deferred wages when they are disbursed in the future. This option allows employees to elect after tax salary deferrals into a Roth option. Roth elective deferrals are accounted for separately from the pre-tax contributions made to the plan. Distributions from the Roth 457 are tax free if the contributions have been in the Roth elective deferral account for at least 5 years and the participant is at least 59 ½.

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For some employees, it might make sense to pay taxes on the DCP contributions now, rather than when money is withdrawn at retirement. Employees who would benefit are:

• Employees who expect either their pay or tax rate to increase substantially over time. Being taxed at a lower rate today may be a better option.
• Employees who expect to have relatively higher plan account investment earnings or to otherwise end up with a higher amount of money set aside for retirement, may benefit from paying taxes up front or just having a pool of tax-free money to draw on in the future.
• Younger employees who have a longer retirement horizon and more time to accumulate tax-free earnings under a Roth 457.
• Older employees who may want to leave tax-free money to their heirs in the future.
• Employees may want the option of not taking required withdrawals at age 70 ½ by rolling their Roth 457 to a Roth IRA.

The Roth 457 option gives employees more flexibility to save for retirement and provides control over when contributions, and retirement income, will be subject to federal income tax.

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Yes, but the Roth 457 contributions count towards the IRS limitations on deferred compensation contributions. Roth 457 contributions can either replace or complement traditional pre-tax contributions subject to the IRS limits of $18,000 per year (2015) plus an additional $6,000 in 2015 if the employee is age 50 or older at the end of the year.

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No. There can be no mixing of the two types of contributions.

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No. Contributions to a Roth 457 have no effect on contributions to a Roth IRA.

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No. Employees may invest Roth 457 contributions in any of the present fund options available in the Alaska Deferred Compensation Plan.

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No. The disbursement options remain the same for Roth 457 contributions. Earnings on the Roth 457 contributions will not be subject to taxation, however, if the employee is at least age 59 ½ and has held the Roth 457 account for 5 years or more.

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The 5-year period of participation begins on the first day of your taxable year for which you first made designated Roth contributions to the plan. It ends when five consecutive taxable years have passed.

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An in-plan Roth rollover is a rollover from your pre-tax contributions in DCP to the post-tax Roth 457 option. At this time the plan does not allow for this type of rollover.

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No, there are no limits on your income in determining if you can make designated Roth 457 contributions. Of course, you have to have sufficient salary from which to make the deferral, and you are subject to the IRS limit on the amount of contributions per year.

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No, you cannot contribute to a governmental Roth 457 for your spouse.

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Yes, provided you are age 50 or older by the end of the year.

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No, the IRS does not allow this type of rollover.

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Yes. Designated Roth accounts are subject to the RMD rules. A participant must begin taking annual distributions from the account by either age 70 ½ or retirement, whichever is later.

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To improve our network and customer service, AlaskaCare selected Aetna to administer all medical and pharmacy claims and Moda Health to administer all dental claims. In the past, these services had been provided by a single company. You should have received a medical ID card from Aetna and a dental ID card from Moda to use when visiting your health care provider or pharmacy.

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You can download a digital copy of your ID card online:

• Optum Rx
• Aetna Navigator
• Delta Dental

You can request a new physical ID card by calling:

• For medical ID cards contact the Aetna Concierge at .
• For pharmacy ID cards contact the Optum Rx Service Center at .
• For dental ID cards contact the Delta Dental Service Center at .

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Plan Booklets are available for all members of the AlaskaCare health plans, they are designed to help you understand your plan and the benefits it provides. You’ll find a benefit summary and information about plan coverage, how benefits are paid, travel coverage, precertification, what expenses are covered, and more.

For your convenience, the Plan Booklets are available on the AlaskaCare website. You can view the booklets online or download them to your computer.

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You are not taxed on premium payments you make for your health benefits, or any contributions you may make to a Health Flexible Spending Account (HFSA). The plan meets the criteria under Internal Revenue Code §125 and its accompanying Treasury Regulations, which govern cafeteria plans as offered under the Select Benefits Health Plan. This allows for premiums that are taken from your pay check to be deducted prior to taxes being calculated.

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To find a network provider:

• Call Aetna's Health Concierge at or select the "Find a Doctor" button on our website, AlaskaCare.gov.
• Call Moda/Delta Dental at or select the "Find a Dentist" button on our website
• Call Optum Rx at or select the "Find a Pharmacist" button on our website.

Find a Provider

If your current provider is not listed as an in-network provider, you can ask your physician to contact AlaskaCare for a participation application. If you would like the provider to receive an application, please complete the Provider Nomination form . When you use a network provider, you can take advantage of the significant discounts negotiated to help lower your out-of-pocket costs for medically necessary care. This can help you get the care you need at a lower price.

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If you use an out-of-network provider, you are responsible for the difference between the recognized charge and the amount charged by the provider in addition to other applicable charges such as deductibles, co-payments, co-insurance and non-covered charges.

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The AlaskaCare plans limit payment of covered services to the recognized charge. The recognized charge is the maximum amount the AlaskaCare plans will pay for a covered service. Aetna and Moda/Delta Dental, and their respective network providers (sometimes referred to as participating providers), agree to a set of discounted negotiated rates for services provided. The recognized charge for network providers is the negotiated rate. For an explanation of how the recognized charge is calculated for out-of-network providers, please see the recognized charge questions under the Network and Dental sections.

An out-of-network provider has the right to bill you for the difference between the recognized charge and the actual charge. This is often referred to as balance billing. Network providers have agreed to accept, as payment in full, the negotiated charge. Therefore, you are not subject to balance billing when you use a network provider.

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You may prevent balance billing by verifying all medical providers are in the Aetna network and making sure your AlaskaCare Plan covers the services you need. For example, if you're having x-rays, MRIs, CT scans, or PET scans, make sure both the imaging facility and the radiologist who will read your scan are in the network.

Similarly, for AlaskaCare covered dental services, you may prevent balance billing by verifying the provider is in the Moda/Delta Dental network.

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If your provider is not a network provider, you may ask for an estimate of charges, the codes that will be used use for billing, and the provider's zip code. When you receive this information, contact the Aetna Concierge at or Moda/Delta Dental at . A member of the Aetna Concierge or Moda Customer Service team can review the estimated charges and will advise you if the charges fall within the recognized charge for your area. If the estimated charges exceed the recognized charge, you may request that your provider accept that amount and not balance bill you, or you may request payment arrangements with their office.

If your current provider is not listed as a network provider, you can ask your provider to contact Aetna at or Moda at for a participation application. Members are also encouraged to nominate their out-of-network providers to join the network. Contact the Aetna Concierge or Moda Customer Service to find out how.

In some cases, unfortunately, there will not be a network provider for the service you need in your area. The Division, Aetna and Moda/Delta Dental are working diligently to improve network access, but please understand that we cannot force providers into the network.

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Yes, there is a network of providers for durable medical equipment. For assistance finding a network provider call the Aetna Concierge at (855) 784-8646 or search online using the Aetna DocFind tool .

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Your AlaskaCare plan uses a network of providers contracted with Aetna to provide you with access to services at affordable costs. The State does not maintain its own contract provider network. When we contract with a claim administrator, like Aetna, we work to obtain the largest provider network possible for AlaskaCare members. Aetna constantly works to bring new providers into their network and keep them. Aetna’s priorities include maintaining access to providers that provide specialized care for our members. Periodically, network agreements between Aetna and its contracted providers must be renegotiated. This is an ongoing cycle. Although every effort is being made to renew provider contracts, sometimes Aetna and the provider are unable to come to mutually agreeable terms.

When doctors who care for patients at in-network facilities leave the network, the facility charges remain in-network, but the professional charges for services billed by the out-of-network providers would be reimbursed at 185% of the Medicare allowable for Employee plan members (this does not apply to AlaskaCare retiree plan members). The federal “No Surprises Act” requires out-of-network providers to have patients sign an agreement for services provided at a network facility. If an out-of-network provider asks you to sign an authorization, the Division recommends that you ask for a network provider.

When agreeable terms cannot be reached, and a contract is terminated, Aetna administers a “Transition of Care" process to try to ensure that your treatment plan is not interrupted, and your claims are processed without risk of balance billing to you. The transition of care process offers an opportunity for your provider to submit a request to Aetna to authorize your treatment plan. Members should work with their managing provider to submit a transition of care request to Aetna for approval. Members can call the Aetna health concierge for help at . Guidelines for what is generally considered eligible for transition of care are provided on the form available from the Aetna health concierge. Providers can call the Aetna provider line for help submitting a transition of care request at .

Important notes:

1. Aetna will honor all services that were pre-certified by Aetna without the patient/member or doctor making an additional “Transition of Care” request. So, if your care was already pre-certified by Aetna – you are all set.
2. After an approved transition of care period ends, members will need to select a network provider to avoid their claims being processed at the recognized charge rate for out-of-network providers – which could result in significantly higher out of pocket expenses.
3. It will be very important for AlaskaCare employee plan members if their providers network status changed to out-of-network because out of network claims process at 185% of the Medicare allowable – which is significantly below the in network recognized charge, leaving employee plan members vulnerable to balance billing.

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Recognized charge means the negotiated charge contained in an agreement the claims administrator has with the provider either directly or through a third party. If there is no such agreement, the recognized charge is determined in accordance with the provisions of this section. Except for charges related to involuntary out-of-network services, an out-of-network provider has the right to bill the difference between the recognized charge and the actual charge. This difference will be the covered person’s responsibility.

Medical Expenses: As to medical services or supplies, the recognized charge for each service or supply is the lesser of:

• What the provider bills or submits for that service or supply;
• Or 185% of the Medicare allowed rate for those services.

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For more information on recognized charge in the Employee Plan, see the AlaskaCare Insurance Information Booklet , section 3.3.7 Recognized Charge

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Coordination of Benefits (COB) is a method of ensuring that people covered by more than one medical plan will receive the benefits they are entitled to but not more than 100% of their covered expenses. The AlaskaCare health plans coordinate benefits with other group health care plans to which you or your covered dependents belong. Coordination of benefits can be very confusing, even for people who work at a physician's office.

With COB, if you are covered by more than one health care plan, the plans work together to provide benefits. One plan is considered "primary" and pays your covered expenses first. The other plan is "secondary" and pays any remaining covered expenses up to 100%. In some cases, there may be a third or fourth plan, as well.

It is important to remember that not all expenses are covered expenses.

Most COB rules are set by the National Association of Insurance Commissioners (NAIC). Rules for coordinating with Medicare and Medicaid are set by federal and state law. Most plans follow the NAIC rules, but there is no requirement that they do so. The AlaskaCare health plans follow standard NAIC rules to ensure ease of coordination with other plans.

Here are examples of common COB situations and rules:

Coordination of Benefits
If You Are Covered Under	How the Plans Pay
Active employee plan and retiree plan	Primary: Active employee plan Secondary: Retiree plan
Retiree plan and as dependent under another person's plan through active employment	Primary: Retiree plan Secondary: Other person's plan
Retiree plan and Medicare-eligible	Primary: Medicare Secondary: Retiree plan
Two retiree plans	Primary: Plan in force the longest Secondary: Other plan
Retiree plan, as dependent under another person's plan through active employment, and Medicare-eligible	Primary: Other person's plan Secondary: Medicare Third: Retiree plan
Active employee plan, retiree plan, as dependent under another person's plan through active employment, and Medicare-eligible	Primary: Active employee plan Secondary: Other person's plan Third: Medicare Fourth: Retiree plan

If your dependent children are covered under more than one plan, in most cases, the plan of the parent whose birthday falls earlier in the year (not the oldest) is primary. If both parents have the same birthday, the plan that has covered the children longer is primary. If the parents are separated or divorced, here's how the plans pay:

• Primary: Plan of the parent whom the court has established as financially responsible for the child's health care (the claims administrator must be informed of the court decree)
• Secondary: Plan of the parent with custody of the child
• Pays third: Plan of the spouse of the parent with custody of the child
• Pays fourth: Plan of the parent who does not have custody of the child

If none of the above rules applies, the plan that has covered the patient the longest is primary.

When an AlaskaCare plan is secondary, the amount the plan pays after the deductible is met is figured by subtracting the benefits payable by the other plan from 100% of expenses covered by the AlaskaCare plan on that claim.

No, you may receive a balance bill if you use an out-of-network provider. In this case, the plan will pay up to the recognized charge for this service in your area.

The AlaskaCare Employee Health Plan will only pay 30% of the covered charges for your dependents if your spouse or child(ren) are covered by a state employee health trust and that coverage:

• Has been waived,
• Pays less than 70% of covered expenses, or
• Has an individual out-of-pocket maximum (including deductible) of more than $3,500.

This applies to any dependent covered by the AlaskaCare Employee Health Plan whether the plan pays as primary or secondary.

Example:

• You incur covered expenses of $1,000. Your spouse elected limited coverage under a union health trust that pays 20% coinsurance, so your AlaskaCare Employee Health Plan will pay 30% after the deductible.
• Spouse's plan pays: $200 (20% of $1,000)
• AlaskaCare plan pays: $300 (30% of $1,000)
• Total paid: $500
• Potential balance bill amount: $500 ($1,000 - $500)

Prophylaxis (cleaning) or periodontal maintenance is covered up to two times in any benefit year. Additional cleaning benefits may be available if medically necessary or dentally necessary and when precertified by Moda/Delta Dental.

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If you are diabetic or pregnant in your third trimester, the Oral Health, Total Health program offers more ways to care for your teeth and mouth.

Diabetes increases the risk of cavities, periodontal (gum) disease, tooth loss, dry mouth and infection. If you have been diagnosed with this disease you are eligible for four prophylactic (preventive) cleanings or periodontal maintenance visits per year through our Oral Health, Total Health program. Protect your teeth and gums by enrolling today.

Pregnant women who have periodontal (gum) disease are more likely to have a premature and underweight baby. Bacteria can enter the bloodstream through the mouth, and the body’s response to the infection can trigger early labor. If you are expecting, you can enroll in the Oral Health, Total Health program to help prevent gum disease. If you’ve already had two cleanings for the year, you’ll be eligible for another cleaning or checkup during your third trimester.This added preventive (prophylactic) visit is covered regardless of normal plan frequency limits.

For details on the Oral Health, Total Health program, refer to AlaskaCare Employee Health Plan booklet or call Delta Dental Member Services at .

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Optum Rx will process claims according to the AlaskaCare plan document. Compounds will continue to be covered under the Defined Benefit Retiree Health plan.

Coverage of compounds differs for the active employee and defined contribution retiree health plans. The AlaskaCare Employee Health Plan and AlaskaCare DCR Benefit Plan only cover compound drugs if:

1. the product contains at least one prescription ingredient;
2. the active ingredient(s) is approved by the FDA for medicinal use in the United States;
3. the product is not a copy of a commercially available FDA approved drug; and
4. the safety and effectiveness for the intended use is supported by FDA approval, or adequate medical and scientific evidence in the medical literature.

Optum Rx maintains a National Compound Credentialing Program (NCCP) to ensure the best compounded medication quality and effectiveness for the patients who need personalized medications. You must fill your compounded medication prescription at a pharmacy which has been credentialed with the Optum Rx National Compound Credentialing Program (NCCP).

Using an NCCP pharmacy ensures that you will not be charged up front for your prescription (and required to submit your own claim for reimbursement), you will not be charged for molding or other non-covered charges, and you will not be charged for shipping if the pharmacy mails your compounded medication to you. You can find a list of NCCP-credentialed pharmacies here. You can also call Optum Rx at (TTY 711) to get help locating NCCP-credentialed pharmacies.

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The AlaskaCare Employee Health Plan does not require employees to enroll in Medicare A and/or B at age 65. If you do enroll in Medicare, please refer to section 10 of the Employee Plan booklet for information on Coordination with Medicare.

Generally, Medicare does not require you to enroll until the active employee group health plan terminates. Please speak with Social Security about their Initial Enrollment Period (IEP) and Special Enrollment Period (SEP), and to discuss the best time to enroll and how.

If you are currently eligible for Medicare as an AlaskaCare Employee Health Plan member, our plan does not require you to sign up for Medicare Part D, prescription coverage.

If you are also covered by the AlaskaCare Retiree Health Plan as a retiree, survivor, or spouse, please see the Retiree Medicare FAQs.

• Social Security Administration: If you have questions about applying for Medicare, contact the nearest Social Security office, call toll-free at , or visit ssa.gov .
• Medicare: To learn more about Medicare, visit the Medicare.gov website or call | TTY (877) 486-2048.
• Alaska Medicare Information Office: You may also contact the State of Alaska’s Medicare Information Office at or in Anchorage or email them at . The Medicare Information Office offers one-on-one personalized Medicare counseling and Medicare seminar events by webinar.

The AlaskaCare Employee Health Plan does not require employees to enroll in Medicare A and/or B at age 65. Medicare will not require you to enroll until the active plan terminates.

However, if you do not enroll in Medicare A and B, the estimated amount Medicare would have paid as the secondary plan will be deducted from your claim before processing and will not be paid by the AlaskaCare Retiree Health Plan.

The AlaskaCare Retiree Health Plan recommends that you enroll in Medicare at age 65, regardless of any other insurance. Please speak with Social Security about their Initial Enrollment Period (IEP) and Special Enrollment Period (SEP), and to discuss the best time to enroll and how.

Please visit our Employee FAQs page regarding Coordination of Benefits. Click on the question, “What are the rules?” for examples of coordination between AlaskaCare and Medicare. For additional information on how your claims would be processed with and without Medicare, please call Aetna Concierge at

AlaskaCare eligible employees who have LWOP will continue to have health insurance coverage if they continue to pay their monthly premiums (through payroll deduction or self-pay).

If your paycheck will be sufficient to cover your health premiums (because you worked part of the pay period or you have personal leave available), you do not need to do anything. If you anticipate that your paycheck will not cover your health premiums, you need to contact the Division of Retirement and Benefits at to coordinate payments.

If you are self-paying premiums, you can send checks to:

Division of Retirement and Benefits/Health Section
P.O. Box 110203
Juneau, AK. 99811-0203

If you do not pay your premiums within 30 days after the last premiums were received, your coverage will be retroactively terminated effective the last day of the last month in which premiums were received. Any insurance claims you may have will be reprocessed. If more than 30 days have elapsed, contact the Division to discuss your options.

If you have leave without pay (except for a leave taken as a result of injury or illness) during your first 30 days of employment, you are covered after you return to work and are in pay status for 31 consecutive days. AlaskaCare Employee Insurance Information Booklet, Section 1.7.1 .

The HRA is a tax-free medical reimbursement plan funded by the employer for members enrolled in the Consumer Choice plan. The balance of the HRA is applied towards the Consumer Choice deductible each benefit year until the HRA balance is exhausted. Unused HRA money can be rolled over to be applied towards the next benefit year deductible.

Participants in the Consumer Choice plan will receive a HRA contribution from the state in the amount of $750.00 annually for a single employee, or $1,500.00 for a family. As long as you are enrolled in the Consumer Choice plan with the state, any unused HRA funds can rollover from year to year, for a maximum of up two years (prior benefit year and the current benefit year). Once you are no longer enrolled in the Consumer Choice plan any remaining balance in your HRA will be forfeited.

For eligible employees enrolled in the consumer choice plan, the third-party administrator will automatically apply your available HRA balance towards your annual deductible for covered medical expenses. For more information, refer to the active employee plan booklet, section 7.2 .

The family HRA account balance of $1500.00, will be applied towards the deductible before any family member must pay.

No. The Consumer Choice Health Plan does not meet the Internal Revenue Code standards for a High Deductible Health Plan, and it does not have a Health Savings Account (H.S.A.) option. Instead, the Consumer Choice Health Plan has an embedded Health Reimbursement Account (HRA), fully funded by the state, applied to the deductible, to help reduce member costs.

No, not when in-network providers are use. The health plan covers eligible preventive services at 100% when received at a network provider, so it's important to make sure you are using a network provider. This means you will you have no out-of-pocket costs (no co-insurance or deductible) for eligible preventive services, including checkups and age-appropriate preventive testing (such as routine blood tests, mammograms or colonoscopies).

Yes, the HRA is integrated with the Consumer Choice plan to help offset your annual deductible.

No. IRS regulations do not allow an employee to contribute to an HRA. Only the employer can contribute to your HRA.

Yes. Unused funds from a current year can rollover to the next benefit year if you remain enrolled in the Consumer Choice plan. HRA funds rollover is limited to a maximum of two years, this means that the maximum balance a single employee can have at any time is $1,500. Once you are no longer enrolled in the Consumer Choice plan, any remaining HRA funds will be forfeited.

You can keep track of your account balance by keeping track of your medical claims. You can also get a copy of your claims history from Aetna.

Any funds left in your HRA when you terminate employment or retire are forfeited. Active employees who elect COBRA have the option of continued enrollment in the Consumer Choice plan with HRA. Remaining HRA funds will remain available if you elect COBRA after leaving state employment. You should contact your health plan administrator for more information on COBRA.

Yes. A HRA can work in conjunction with a HFSA, but you can’t be reimbursed from your HFSA for expenses already covered by the HRA.

New employees will be entitled to the same HRA contribution at any time during the plan year. HRA contributions will not be pro-rated.

Lantern (Surgery Plus) is a supplement to your employer’s medical plan that you’re already enrolled in, and is part of your benefits package. It helps you and your covered family members plan and pay for non-emergency surgeries. Lantern offers access to a top-tier network of specialized surgeons, while providing you with your very own personal assistant to handle the logistics of planning for surgery.

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To get started, call Lantern (Surgery Plus) directly at (855) 715-1680. You will be in contact with a Lantern Care Advocate who will walk you through the steps to receive the surgery you need. Lantern will verify if you need any pre-authorizations or precertifications, schedule consultations with you and a Surgeon of Excellence, verify and collect any needed deductible amount, coordinate all the travel logistics, and provide post-surgery follow-up.

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As a member of the AlaskaCare health plan, you automatically have access to these services. There is no additional cost for services obtained through Lantern—the plan covers 100% coinsurance, and the deductible does not apply. Members incur no out-of-pocket expenses for covered benefits through Lantern.

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In addition to covering the cost of travel, there is no additional charge for the concierge service or coordination of care. Within the episode of care, covered expenses include, but are not limited, to the professional fees (surgeon, assistant surgeon, hospitalist, nursing staff, etc.), inpatient pharmacy, anesthesia, facility fees, some diagnostic testing, pre-op consultation and appointment, and post-operative follow-up appointment when appropriate.

Portions of the episode of care that are not covered include, but are not limited, to durable medical equipment (braces, crutches, walkers, etc.), some diagnostic testing, physical therapy, and in-home nursing care. These services vary based on the procedure type and can be covered by your traditional medical insurance, and are subject to standard costs for utilizing your traditional medical insurance.

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No, Lantern (Surgery Plus) is a supplemental benefit, and participation isn’t mandatory. You can expect access to world-class surgeons that have been rigorously screened, not only for their education and training, but also for their volume and complication rates. You may also expect financial savings by using Lantern.

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Lantern (Surgery Plus) covers hundreds of non-emergent surgery types within most of the surgical specialties including, but not limited to, the following:

• Knee
• Knee Replacement
• Knee Replacement Revision
• Knee Arthroscopy
• ACL/MCL/PCL Repair

• Hip
• Hip Replacement
• Hip Replacement Revision
• Hip Arthroscopy

• Shoulder
• Shoulder Replacement
• Shoulder Arthroscopy
• Rotator Cuff Repair
• Bicep Tendon Repair

• Foot and Ankle
• Ankle Replacement
• Bunionectomy
• Hammer Toe Repair
• Ankle Fusion
• Ankle Arthroscopy

• Spine
• Laminectomy/Laminotomy
• Anterior Lumbar Interbody Fusion
• Posterior Lumbar Interbody Fusion
• Anterior Cervical Disk Fusion
• 360 Spinal Fusion
• Artificial Disk

• Wrist and Elbow
• Elbow Replacement
• Elbow Fusion
• Wrist Fusion
• Wrist Replacement
• Carpal Tunnel Release

• General Surgery
• Gallbladder Removal
• Hernia Repair
• Thyroidectomy

• GI
• Colonoscopy
• Endoscopy

• GYN
• Hysterectomy
• Bladder Repair
• Hysteroscopy

• Bariatric
• Gastric Bypass
• Laparoscopic Gastric Bypass
• Laparoscopic Sleeve Gastrectomy

• ENT
• Ear Tube Insertion (Ear Infection)
• Septoplasty
• Thyroidectomy
• Sinuplasty

This is not an exhaustive list. Contact a Lantern Care Advocate today at if you would like more information about a specific procedure type.

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When you call Lantern (Surgery Plus), a Care Advocate is assigned to your case. Your Care Advocate is your dedicated, personal assistant throughout the process, walking you through education about Lantern and the surgeons nearest you, medical records transfer, scheduling appointments, coordinating travel, and ensuring your satisfaction throughout the entire process.

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Yes! Call and speak to a Care Advocate and find out if your surgeon is in our network. Should your surgeon not be a Lantern (Surgery Plus) surgeon, a Care Advocate can offer you a selection of Lantern surgeons for you to see for consultation, and can help ensure your records and any workup are referred over so you to be scheduled and proceed through Lantern, as quickly as possible to accommodate your schedule.

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Lantern (Surgery Plus) does not require pre-authorization for procedures beyond surgical clearance for bariatric procedures. Utilizing top surgeons ensures we have an expert review of your surgical case, so additional pre-authorization from a third-party source is not required.

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Your Lantern Care Advocate can assist you with any authorization needs; however, it’s not required through the Lantern program.

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Only participating in-network Lantern (Surgery Plus) providers can be used with the Lantern benefit. Lantern surgeons are rigorously screened, and only a select few are able to pass requirements and are invited to participate, so this helps ensure you are in the "best hands."

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Depending on the type of surgery you need and where you live, you may have to travel to use Lantern (Surgery Plus) to access our surgeons, but the benefit covers the cost of travel and lodging for major procedures. Your Care Advocate will make all travel and payment arrangements for you if travel is needed, so that you can focus on your health and recovery.

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No. The benefit will cover the eligible member receiving surgery and one companion only. If additional companions wish to accompany the member, you may coordinate with the Lantern (Surgery Plus) Care Advocate, but the additional costs (airfare, hotel, etc.) must be paid by the additional companion(s).

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Hinge Health is an AlaskaCare Employee health plan benefit that delivers everything you need to conquer pain and recover from injuries. Hinge Health tailors treatment plans to each individual, so you can get the expert help you need from the comfort of your own home.

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You can sign up at HingeHealth.com .

You will be asked about any pain or injuries to help recommend a program for you. Next, you’ll answer a few more questions specific to the program selected for you to ensure a good fit. This entire process only takes about 15 minutes.

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Hinge Health’s programs are available to you and your family members age 18+ who are covered by the AlaskaCare Employee Health Plan starting July 1, 2021! If you need help with pain or an injury, then you will go through a clinical questionnaire to make sure our program is the right fit.

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You will be matched with your care team based on your needs. Your care team will include a personal physical therapist who will help with your care plan and conduct virtual physical therapy sessions if needed. Care teams for treatments that are longer-term also include a health coach, who will help you stick with the program and make beneficial changes in your daily life. Your coach will be available via email, text, or over the phone to answer your questions and act as an unlimited resource!

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The Hinge Health app will guide you in short exercise therapy sessions. Follow along on screen to see how to do the exercises and stretches. Some treatment plans include a tablet and wearable sensors that give live feedback on your position so that you can adjust your body in real-time. The programs are made up of 15-minute sessions that you work through 3 times per week, are tailored to your abilities, pain, or injury, and adapt as you continue to improve.

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On average, participants reduce their pain by over 60%, and they are less interested in surgery as a treatment option.

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Virtually all major medical bodies, including the CDC and American Orthopedic Association, recommend exhausting non-surgical treatments for chronic pain before considering surgery, as many studies have shown that these can dramatically reduce pain. Hinge Health’s program packages these treatments together, and the results often surpass previous studies.

Hinge Health's 3-year study included over 10,000 participants. The study demonstrates that each Hinge Health remote exercise therapy and coaching session has a direct correlation to pain reduction. Each participant had an average pain reduction of 69%, reduced depression and anxiety 58%, increased productivity 61% and decreased surgery likelihood 67%.

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Periodically, the Division competitively bids these contracts through a Request for Proposal (RFP). This gives us an opportunity to seek better service at lower cost for members and the plan.

Effective 1/1/2019, the AlaskaCare plan uses Optum Rx as the PBM to administer pharmacy benefits.

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Optum Rx will process claims according to the AlaskaCare plan document. Compounds will continue to be covered under the Defined Benefit Retiree Health plan.

Coverage of compounds differs for the active employee and defined contribution retiree health plans. The AlaskaCare Employee Health Plan and AlaskaCare DCR Benefit Plan only cover compound drugs if:

1. the product contains at least one prescription ingredient;
2. the active ingredient(s) is approved by the FDA for medicinal use in the United States;
3. the product is not a copy of a commercially available FDA approved drug; and
4. the safety and effectiveness for the intended use is supported by FDA approval, or adequate medical and scientific evidence in the medical literature.

Optum Rx maintains a National Compound Credentialing Program (NCCP) to ensure the best compounded medication quality and effectiveness for the patients who need personalized medications. You must fill your compounded medication prescription at a pharmacy which has been credentialed with the Optum Rx National Compound Credentialing Program (NCCP).

Using an NCCP pharmacy ensures that you will not be charged up front for your prescription (and required to submit your own claim for reimbursement), you will not be charged for molding or other non-covered charges, and you will not be charged for shipping if the pharmacy mails your compounded medication to you. You can find a list of NCCP-credentialed pharmacies here. You can also call Optum Rx at (TTY 711) to get help locating NCCP-credentialed pharmacies.

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The pharmacy benefit for AlaskaCare retirees remains the same, and Optum Rx will manage all pharmacy benefits. Medicare-eligible retirees and dependents will be enrolled in the AlaskaCare enhanced EGWP. After you enroll in Medicare, you need to provide the Division your Medicare Beneficiary Identifier (MBI - your Medicare Number). You do not need to enroll in an individual Medicare Part D plan.

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If you need to fill prescriptions before your Optum RX pharmacy ID card arrives in the mail, you can contact the Division and we can print or email a temporary card. You can also get a printable ID card from the Optum Rx online portal, or view your ID card in the Optum Rx mobile app.

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Please select the scenario that best describes you:

• I am covered under a single AlaskaCare plan, and…
  • I am an active employee:
    ID cards are issued in packs of two to active employees. If you have an eligible dependent, you can share the extra card with your dependent. If you have more than one eligible dependent, you can request additional cards through Optum Rx at (855) 409-6999. Starting January 1, 2019, you can also print a temporary card from the Optum Rx portal, or use the Optum Rx mobile app.
  • I am a retiree that is not eligible for Medicare:
    ID cards are issued in packs of two to retirees that are not eligible for Medicare. If you have an eligible dependent, you can share the extra card with your dependent. If you have more than one eligible dependent, you can request additional cards through Optum Rx at (855) 409-6999. Starting January 1, 2019, you can also print a temporary card from the Optum Rx portal, or use the Optum Rx mobile app.
  • I am a Medicare-eligible retiree who is not covered under the enhanced Employer Group Waiver Program (EGWP):
    ID cards are issued in packs of two to retirees that are not enrolled in the AlaskaCare enhanced Employer Group Waiver Program (EGWP). If you have an eligible dependent, you can share the extra card with your dependent. If you have more than one eligible dependent, you can request additional cards through Optum Rx at (855) 409-6999. Starting January 1st,1, 2019, you can also print a temporary card from the Optum Rx portal, or use the Optum Rx mobile app.
  • I am a retiree covered under the enhanced Employer Group Waiver Program (EGWP):
    You should have received only a single ID card with the MedicareRx logo in the lower right corner (see example below). Please contact the Division or Optum Rx for additional information on why you may have received a second card.
• I am covered under my own plan and under my spouse’s AlaskaCare plan, and…
  • Both my spouse and I are either an active employee or a retiree not yet eligible for Medicare:
    You will both receive a two-pack of ID cards with your own name and ID number. You may share one copy of your ID card with your spouse, however, you or your dependents only need to present one of these ID cards to the pharmacy. Optum Rx coordinates your coverage behind the scenes.
  • Both my spouse and I are are retirees and eligible for Medicare:
    If you are both eligible for Medicare and are enrolled in the enhanced Employer Group Waiver Program (EGWP), you should each receive a single ID card that has the MedicareRx logo in the lower right (see example below). Each card will have an individual name and ID number. Although you receive only one card, when you present the card at the pharmacy you will receive the benefit of your double coverage under the plan. This means you will not be required to pay a copay at the pharmacy counter.
  • One of us is a Medicare-eligible retiree enrolled in the enhanced Employer Group Waiver Program (EGWP) and the other is either an active employee or a retiree not enrolled in EGWP:
    The retiree who is Medicare-eligible and is enrolled in the enhanced Employer Group Waiver Program (EGWP) will receive a single ID card that has the MedicareRx logo in the lower right (see example below). The card will have their individual name and ID number. Although they receive only one card, when they present the card at the pharmacy, they will receive the benefit of having double coverage under the plan. This means they will not be required to pay a copay at the pharmacy counter.
    
    The spouse who is not enrolled in the EGWP will receive an ID card two-pack in their own name for each layer of coverage they have (their own coverage and their dependent coverage as the spouse of a Medicare-eligible retiree). The only difference between the two packs of ID cards will be the ID number. The ID number that matches the Medicare-eligible retiree’s MedicareRx ID card will be the dependent coverage card.
• I am covered under more than one of my own AlaskaCare plans, and…
  • I am eligible for Medicare:
    If you are eligible for Medicare and are enrolled in the enhanced Employer Group Waiver Program (EGWP), you should receive a single ID card that has the MedicareRx logo in the lower right (see example below). Although you receive only one card, when you present the card at the pharmacy you will receive the benefit of your double coverage under the plan. This means you will not be required to pay a copay at the pharmacy counter.
  • I am not eligible for Medicare:
    You will receive an ID card two-pack for each layer of coverage you have. The only difference between the different packs of ID cards will be the ID number. However, you only need to present one of these ID cards to the pharmacy. Optum Rx coordinates the coverage behind the scenes.

Sample card:

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Optum Rx coordinates all the layers of coverage for you and your dependents behind the scenes, so in many cases you and your dependents can use each other’s cards at the pharmacy. However, a non-EGWP dependent should not use the card that has a MedicareRx logo in the lower right corner. This card would only work if the pharmacist uses the correct person code (to identify them as a dependent rather than the policy holder). To avoid any confusion at the pharmacy, we recommend you and your dependents only use a card that has your name on it.

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You can tell the difference between the cards by looking at the logo on the card. One will say AlaskaCare Employee Pharmacy Plan, and the other will say AlaskaCare Retiree Pharmacy Plan. Your employee plan will typically be the primary payer.

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You can contact Optum Rx at , TTY711 if you have questions about your prescriptions or any correspondence you have received from them.

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The Optum Rx home delivery unit reaches out to members to assist with setting up their home delivery accounts and to verify the prescriptions they want delivered. If you receive a call to this effect, it is not a scam. However, if you are unsure if the call is legitimate, you can always decline the call and then contact Optum Rx at to ensure the call is genuine.

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You received this letter because the Centers for Medicare & Medicaid Services (CMS or Medicare) indicated that you have alternative prescription drug coverage under another plan that may be receiving subsidies from Medicare for providing that coverage. We encourage members to confirm enrollment in the AlaskaCare Retiree Medicare Prescription Drug Plan by calling Optum Rx at . If you do not confirm your enrollment or choose not to participate in the AlaskaCare Retiree Medicare Prescription Drug Plan, you will be placed into the opt-out prescription drug program. This is highly discouraged, as it will result in higher costs for you and for the health plan.

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Yes, members may transfer prescriptions from their local pharmacy to Optum Rx Home Delivery or from Optum Rx Home Delivery to their local pharmacy:

1. Members may call their pharmacy and request they transfer prescriptions from the pharmacy to Optum Rx Home Delivery. Optum Rx can also request the transfer request on your behalf. To start home delivery, log in to Optum Rx.com , use the Optum Rx app, or call .
2. Members may call Optum Rx at and request Home Delivery prescriptions be transferred to their local pharmacy.

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Teladoc® is the first and largest provider of telehealth medical consults in the United States, giving you 24/7/365 access to quality medical care through phone and video consults.

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Teladoc® doctors are U.S. board certified in Internal Medicine, Family Practice, or Pediatrics. They average 20 years practice experience, are licensed in your state, and incorporate Teladoc® into their day-to-day practice as a way to provide people with convenient access to quality medical care.

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No. Teladoc does not replace your primary care physician. Teladoc should be used when you need immediate care for non-emergent medical issues. It is an affordable, convenient alternative to urgent care and ER visits.

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Teladoc® provides adult and pediatric general medical care.

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You can talk with a Teladoc® doctor via a phone consult, video consult within the secure member portal, or video consult within the Teladoc® mobile app.

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Setting up your account is a quick and easy online process. Visit the Teladoc® website, click “Set Up Account," and follow the online instructions.

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Visit the Teladoc® website , log into your account and click “Request a Consult”. You can also call Teladoc at to request a consult by phone.

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The doctor will call you back in minutes. If you miss the doctor’s call—whether you are away from the phone or you have anonymous call blocker on—you will be returned to the bottom of the waiting list. The consult request is cancelled if you miss three calls.

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There is no time limit for consults.

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Yes, Teladoc® doctors can prescribe short-term medication for a wide range of conditions when medically appropriate. Teladoc® doctors do not prescribe substances controlled by the DEA, non-therapeutic and/or certain other drugs which may be harmful because of their potential abuse.

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When you go to your pharmacy of choice to pick up the prescription, you may use your health/prescription insurance card to help pay for the medication. You will be responsible for the co-pay based on the type of medication and your plan benefits.

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Yes. Just like any doctor appointment, you must pay for the consulting doctor’s time.

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Yes. You have access to your electronic medical record at any time. Download a copy online from your account or call Teladoc® and ask to have your medical record mailed or faxed to you.

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Open Enrollment for the AlaskaCare Employee Health Plan is typically the first three weeks of November for the benefit year that begins the following January. Visit the Open Enrollment page to find this year's Open Enrollment dates.

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The enrollment process will be completed online. Everything you need to make decisions about your benefits and to change your enrollment selection is available in the Open Enrollment Guide . Personalized information will not be sent to members.

Once you are ready to enroll, the web site provides instructions to:

1. Login to your account – through your myRnB portal. Look for the myRnB button in the left column of any Division Web page.
2. View your current benefits and change your elections.
3. Review the dependents under your health plan and add or remove dependents as necessary.
4. Make sure you have provided your dependent's social security number. Under the individual shared responsibility provision of the Affordable Care Act (ACA), individuals must indicate their enrolled dependents, as well as themselves, have had a full year of qualifying health care coverage (called minimum essential coverage). By providing your dependent social security numbers, we can report proof of minimum essential health care coverage to help you avoid the hassle of having to prove to the IRS that your dependents had coverage.

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Enrollments must be made online. If you experience technical difficulties while trying to enroll contact the at or in Juneau at Hours: Monday - Thursday 8:30 a.m. - 4 p.m. and Friday 8:30 a.m. - 3 p.m. Alaska Time.

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If you make changes to your health elections or to your dependents, you will receive updated ID cards in January. You can also view ID cards online or by downloading the mobile apps of our claims administrators.

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Yes, there are several important changes to the AlaskaCare health plan that will take effect on the first day of the upcoming benefit year.

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A new Health Plan booklet will be released on or before the first day of the upcoming benefit year.

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The plan meets the criteria under Internal Revenue Code §125 and its accompanying Treasury Regulations, which govern cafeteria plans as offered under the Select Benefits Health Plan. This allows for premiums that are taken from your paycheck to be deducted prior to taxes being calculated.

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Proof of good health, evidenced by a SOH, is a standard part of the application process to elect higher volumes of life insurance. A SOH is a document that includes a series of questions about your overall health, and is sometimes referred to as Medical Evidence of Insurability (MEOI or EOI).

Statements of health are used to protect an employer's group insurance program from adverse risks and to reduce the likelihood of disproportional claims risk. This helps control the cost of the group insurance program and allows the employer to continue offering the coverage.

Active employees electing life insurance levels at $200,000 or $300,000 will be required to provide an SOH:

• when electing coverage during open enrollment;
• when increasing coverage due to qualifying life events; or
• when electing coverage at initial hire.

For questions regarding the SOH process or what may result in a denial of coverage, please contact the insurer, MetLife, directly at .

No. Elections of life insurance at these levels do not require proof of good health.

As long as you don’t change your level of coverage, you will not be required to submit a new SOH form every year. If you elect to increase or decrease your coverage to either $200,000 or $300,000 after a qualified status change or at a subsequent open enrollment, you will have to provide SOH again. If you decrease coverage below $200,000 in the future, no SOH is required.

If you elect $200,000 or $300,000 in life insurance you are covered at $100,000 until you are approved. For example, if you apply for $300,000, and you pass away before you are approved for $300,000 your beneficiaries will receive $100,000.

If you are not approved for $200,000 or $300,000 your coverage will automatically default to $100,000.

During the enrollment process or Open Enrollment, you will be prompted automatically to complete the Statement of Health if you choose the level of life insurance coverage that requires the SOH. Enrollment is through MetLife’s partner, BenefitFocus .

The AlaskaCare premiums effective January 1, are as follows:

2025 ACTIVE EMPLOYEE MONTHLY PREMIUMS
For AVTECTA - AK Vocational Teachers (TA), APEA - Confidential (KK), APEA - Supervisory (SS), ACOA - Correctional Officers (GC), TEAME - Mt. Edgecumbe Teachers (TM), MEBA - Marine Engineers (BB), IBU - Inlandboatman's (MM), Employees not covered by collective bargaining (Exempt)
Plan	Employee Only		Employee & Family
Standard Medical Plan	$125		$303
Economy Medical Plan	$63		$167
Consumer Choice Medical Plan	$25		$71
Standard Dental Plan	$37		$102
Economy Dental Plan	$0		$0
Managed Vision	$15		$40
Effective date: January 1, 2025

The plan meets the criteria under Internal Revenue Code §125 and its accompanying Treasury Regulations, which govern cafeteria plans as offered under the Select Benefits Health Plan. This allows for premiums that are taken from your paycheck to be deducted prior to taxes being calculated.

Under the individual shared responsibility provision of the Affordable Care Act (ACA), individuals must indicate their enrolled dependents, as well as themselves, have had a full year of qualifying health care coverage (called minimum essential coverage). By providing your dependent social security numbers, we can report proof of minimum essential health care coverage to help you avoid the hassle of having to prove to the IRS that your dependents had coverage. Please take a moment to review the dependents listed in the Online Enrollment system and update the information as appropriate.

Coverage for hearing aids is available under the audio benefit under the medical plan. Audio services pay a maximum benefit of $3,000 in a rolling 36-month period. A hearing aid (monaural or binaural) is a covered service if prescribed as a result of an otological (ear) or audiological (hearing) examination. This includes ear mold(s), hearing aid instrument, initial batteries, cords, and other necessary supplementary equipment as well as warranty, and follow-up consultation within 30 days following delivery of the hearing aid.

If you elect the optional vision coverage, you or your family member (including your parents or grandparents) can save 30% to 60% on the price of hearing aids through VSP’s partnership with TruHearing. For more information, call TruHearing at (866) 929-5091 Monday – Friday, 8 a.m. - 8 p.m. Alaska time. For TTY, dial 711.

The AlaskaCare Employee Health Plan offers a lower-premium medical plan option with a higher deductible than medical plans traditionally offered by AlaskaCare. The Consumer Choice plan is a consumer driven health plan with an employer sponsored Health Reimbursement Arrangement (HRA).

There are several things you can do to ensure you get the most value from your plan.

Using "network" providers can provide substantial benefits to members through the elimination of what's known as "balance billing." It can also generate substantial savings to members through negotiated provider discounts. To find out whether your doctor is a member of the Aetna network, call Aetna's Health Concierge at or visit the Find a Doctor page .

Get recommended preventive checkups, screenings, vaccines, prenatal care, and contraceptives. You won’t have to pay out-of-pocket for these preventive visits, when provided in network, and getting regular exams and screenings will help you live healthier. For a list of covered preventative services visit the Preventative Care Coverage Information Flyer and the Women’s Preventive Care Coverage Information Flyer .

Use generic drugs when available. Generic drugs offer you a safe and effective alternative to brand name drugs - but at a lesser cost. Choosing a lower tiered drug when it is appropriate can provide access to the necessary medications to stay healthy, at a cost that is more affordable.

Effective January 1, 2025, you will see a slight reduction in the premiums for Select Life, Supplemental Life, Supplemental Accidental Death and Dismemberment, and Long-Term Disability insurance. Critical Illness premiums will remain the same.

All employees can enroll, except:

• members of the bargaining unit Labor, Trades and Crafts (LTC)
• members of the Teachers’ Retirement System (TRS)
• on-call Employees
• employees of the National Guard (including Emergency Guard)
• short-term non-permanent employees
• student interns
• leased employees
• emergency employees hired for natural disasters, including emergency fire fighters
• temporary legislative employees

• Life Insurance
• Accidental Death and Dismemberment
• Short-Term Disability
• Long-Term Disability
• Critical Illness

Yes and no. Premiums for coverage other than life insurance are taken on a pre-tax basis. For the life insurance products, premiums up to $50,000 in total pre-tax or employer paid life insurance, including State-provided Basic Life Insurance are not taxed. Premiums attributable to pre-tax or employer paid life insurance amounts over $50,000 are taxable, will show as imputed income on your pay, and will be taxed. Imputed income is the addition of the value of non-cash compensation to an employee's taxable wages in order to properly withhold income taxes from the wages. Premiums for the Critical Illness plan and Select Life are post-tax and will not result in imputed income.

No. Your current elections will automatically roll over to the next benefit year if you do not participate in Open Enrollment. Occasionally we need to make changes to benefits or administrators that require members to participate in Open Enrollment or a Special Enrollment in order to keep/select benefits. We will always notify members if you are required to make an election.

Most of your Voluntary Supplemental Benefits will roll over automatically when you transfer from one participating bargaining unit to another, however the maximum benefit amount for Select Life Insurance varies between bargaining units. If you experience a bargaining unit change and your new bargaining unit has a different maximum benefit amount for Select Life, you will need to re-enroll in this benefit if you wish to maintain coverage. Click the link below to review the maximum benefit amounts for Select Life Insurance under different bargaining units.

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If you experience a bargaining unit change that impacts your eligibility for benefits, you may receive a letter or call from a MetLife representative with options to port and convert the coverage you held under your previous bargaining unit. If you are still an active employee with the option to re-elect these benefits, you do not need to port your coverage. Please log in to the Voluntary Supplemental Benefit website listed below to make your elections. You can disregard the communication from MetLife.

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If you were approved by for life insurance in the amount of $200,000 or $300,000, your approval will continue.

However, if you apply for either $200,000 or $300,000 of coverage for the first time during Open Enrollment, you will be required to provide a Statement of Health (SOH) to MetLife.

Form 1095-C is a tax form that reports the type of health insurance coverage you have, any dependents covered by your insurance policy, and the period of coverage for the prior year. This form is used to verify that you and your dependents have at least minimum qualifying health insurance coverage. This form is sent to members with employee coverage under AlaskaCare.

The Health Care Information Forms for Individuals (Forms 1095-A, 1095-B, and 1095-C) report information regarding an individual’s health insurance to the IRS. 1095 forms are issued by your insurance provider or employer. The version of the form you receive will depend on the type of health insurance you have.

• If you are an active employee covered under the AlaskaCare Employee Health Plan, you will receive a 1095-C.
  • Note that if you are an active employee covered under a union health trust, you will receive a 1095 form from your union health trust. Please contact your health trust with any questions.
• If you are a retiree covered under the AlaskaCare Retiree Health Plan, you will receive a 1095-B.
• If you received coverage under a federal or state Health Insurance Marketplace (also called the “Exchange”), you will receive a 1095-A from the Marketplace. These forms are not issued for any AlaskaCare coverage.

1095-C forms are issued at the beginning of each year in advance of tax filing season. Typically, you will receive your form 1095-B by mid-March. If you believe you should have received a 1095-C but did not, please contact the Division of Personnel Employee Call Center at or .

You will not need to attach the 1095-C to your tax return. However, you should keep this documentation with your other tax records.

It is not necessary to wait for Form 1095-C in order to file your taxes. For more questions and answers about health care information forms for individuals from the IRS, see their FAQ page .

The 1095 forms are only received by the employee, or the “responsible individual” as referred to by the IRS. A copy of the form is not provided to the dependents.

Yes, self-insured group health plans for employees, COBRA coverage, and retiree coverage qualify as Minimum Essential Coverage.

If you have additional questions about your 1095-C, please contact your tax consultant. Visit IRS.gov to learn more.

The DCR plan to DB plan webpage will be updated on an ongoing basis and will be less frequent from week to week.

You can find information on participating employers on the Participating Employers / Payroll Processing Contacts page.

Yes.

The employee contributions and any net market gains or losses of the PERS or TRS DCR account balance will be transferred to pay the cost of conversion. If any PERS or TRS DCR employee balance remains after the outstanding conversion indebtedness balance(s) are paid, the remaining balance will be refunded to the member by Empower Retirement.

Employer match contributions and any attributable gains and losses are not eligible to be utilized by the member to pay the cost of conversion. Employer contributions made on the member’s behalf will be transferred to the defined benefit plan to fund the lifetime future benefit that the member will receive from the fund as well as the system paid medical benefits that the member may be eligible for in retirement.

The reinstatement indebtedness (REI) consists of the total refund received plus accrued interest at the rate prescribed by regulation (7%) from the date of refund through June 30, 2010. No further interest will accrue from July 1, 2010, until the previously refunded service is reinstated. Interest will accrue at the rate prescribed by regulation (7%) from the date of conversion until the REI is paid in full or at the time of retirement.

The cost of conversion represents the employee contributions which would have been made and accrued interest (4.5%) had you been a member of the PERS or TRS DB during the years you were enrolled in the PERS or TRS DCR. Interest will accrue on any unpaid balance from the date of conversion until the conversion indebtedness is paid in full or at the time of retirement.

Yes, but you must first reemploy in a PERS or TRS eligible position. You will have 30 days from the date of hire to choose whether to convert. If you do not elect to reinstate your previously refunded DB service and return to your original tier status, you will default into the DB plan. If you elect to reinstate your original tier status, your previous DCR PERS or TRS service must be converted to DB service and an indebtedness will be established on your record for the conversion cost. An indebtedness will also be established for your previously refunded DB service.

Yes. Members will be able to make payments by pretax transfer, pretax payroll deductions or with post tax monies on any remaining unpaid cost of conversion or Reinstatement Indebtedness that may exist.

Yes. Indebtedness is not a bill. If at the time of retirement, you elect to cancel any outstanding indebtedness due by accepting an actuarial reduction to your benefit for life, and the election reduces your benefit below what it would have been had the indebtedness not existed, then the claimed service and associated indebtedness will be removed from your final retirement benefit calculation.

Yes.

Yes.

Yes. Remaining balances can be paid with pretax qualified accounts after conversion is complete, including State of Alaska Supplemental Annuity Plans (SBS) and Deferred Compensation Plans (DCP). Once you have been notified that the conversion is complete, you will need to submit a Purchase of Service by Pretax Transfer form to apply any additional pretax qualified payments towards your remaining indebtedness balance(s).

Yes.

No.

Yes. The Division of Retirement and Benefits will provide members who convert a notification of pretax transfer payments applied and if there is any remaining indebtedness balance owed.

The DRB will be processing all submissions to convert first in first out. DRB counseling representatives will be contacting the members to provide counseling on the process and costs associated with the conversion. Incorrect information provided by the member will cause a delay in this process. It may take four to eight weeks for a counselor to contact you after you have submitted the online submission form.

Once you have submitted your online submission form, a member of the counseling team will contact you to set up a time to discuss the process and costs associated with conversion based on the order that forms are submitted.

This means, if, as a result of service credit claimed (reinstatement indebtedness or conversion cost not paid in full in this case) for which there is an indebtedness existing at retirement, the benefit is actuarially reduced by a factor spreading the remaining indebtedness balance out over the anticipated lifetime of the benefit. If applying an actuarial reduction reduces your benefit below what it would have been had the claimed service and associated indebtedness not existed, then the claimed service and indebtedness will be removed from your final retirement benefit calculation. Service associated with a Reinstatement indebtedness (REI) or Conversion indebtedness that has an outstanding balance will not count towards vesting or service eligibility (i.e. 20 or 30 years).

Yes. However, each form will need to be submitted according to the directions provided on the specific claim forms. The conversion needs to be completed first, then the military/outside claim will be processed after the conversion has been completed.

A former member means an employee who is terminated and who has received a total refund of the balance of the employee contribution account, or who has requested in writing a refund of the balance in the employee contribution account.

PERS DB members accrue interest on their individual accounts at 4.5% compounded semi-annually. TRS DB members accrue interest on their individual accounts at 4.5% compounded annually on June 30. For the former DB members who have reemployed and are now DCR members, the cost of conversion represents the employee contributions which would have been made including accrued interest (4.5%) had the employee been a member of the PERS or TRS DB plan during the years they were enrolled in the PERS or TRS DCR plan.

Under the PERS DB plan, the prescribed rate of interest that accrues on any indebtedness amount is 7% compounded semi-annually on June 30 and December 31 of each year. Under the TRS DB plan, effective July 1, 1974, the interest rate on arrearage, retroactive and reinstatement contributions is 7% compounded annually on June 30.

Once your form is received and approved by the Division, it can take up several months for the pretax transfer from Empower Retirement to be posted to your DB account. All conversion election forms submitted to the Division will be processed on a first in first out basis. Any incomplete forms will be returned to the member for correction and resubmission.

Please contact the Division if you are in this situation.