Alaska Supreme Court Decision

Metcalfe vs State of Alaska

This is a class action brought on behalf of all former members of PERS Tiers I-III and TRS Tiers I-II. The court held that former members of these tiers have a constitutional right to return to PERS/TRS service and buy back into the same tier in which they were previously enrolled.

Prior to 2010, the State offered former employees who cashed out their contributions the ability to reenter the system and buy back their previous status. The statute was repealed at the same time the state closed those tiers, but the State provided notice to all former members, and gave them an additional five (5) years to return to PERS/TRS service and seek reinstatement.

The Alaska Supreme Court held that this reinstatement right is an accrued benefit protected by the diminishment clause of the Alaska Constitution. Practically speaking, this means all former members of PERS Tiers I-III and TRS Tiers I-II have the right to return to PERS/TRS service and seek reinstatement.

The superior court heard oral argument on the remaining issues and on January 25, 2022, directed the State of Alaska (Division of Retirement and Benefits) to notify all affected members within four (4) months of their right to seek reinstatement and the procedures to do so. Notice letters to active members and letters to former members will be mailed by late May 2022. Affected members should wait until they receive their notice letter before contacting the Division.

If you have any questions or do not have access to the Internet, please feel free to contact our office toll free at (800) 821-2251, in Juneau at (907) 465-4460, or by email at .

For additional information pertaining to the Metcalfe decision, please visit the Defined Contribution Plan to Defined Benefit Plan Conversion Process webpage.

2022 Post Retirement Pension Adjustment

The 2022 automatic Post Retirement Pension Adjustment (PRPA) will be paid with the July check.

The automatic PRPA is payable to a Public Employees’ Retirement System (PERS) retiree under age 60, if retired for five years or more on or before July 1, 2022, and a Teachers’ Retirement System (TRS) retiree under age 60, if retired for eight years on or before July 1, 2022.

In addition to the above requirements, a retiree must have been receiving a benefit in the prior year (2021) to be eligible for the 2022 PRPA. Eligible recipients, who have not received pension benefits during the entire preceding calendar year, will receive a prorated PRPA.

If you meet these requirements or are age 60 to 64 on July 1, 2022, you will receive 50% (2.532%) of the Consumer Price Index (CPI) change during 2021. Retirees aged 65 or older and all disability benefit recipients receive 75% (3.798%) of the CPI. The PRPA for survivor benefit recipients is calculated on the member’s eligibility.

The CPI for the 2022 PRPA is 5.065%.

If you do not meet any of the above criteria, you are not eligible.

Due to fund conditions, the Division did not recommend an ad hoc PRPA for 2022. The ad hoc PRPA is defined in statute as, “…based on the financial condition of the retirement funds.”

Example

• This example shows a retiree who is receiving a benefit from the PERS.
• Your statement will show more than one benefit if you worked for both retirement systems or if you are also receiving a survivor’s benefit.

1. Prior PRPAs: The combined monthly amount of all PRPAs paid from the date you retired through June 30, 2022.
2. 2022 Automatic PRPA: This is effective July 1, 2022, based on the change in consumer price index (CPI).

Example of monthly statement:

Base Benefits			Deductions
	TRS ORIGINAL BASE	$XX.XX	TRS FED INCOME WITHHOLD	$XX.XX
1)	TRS PRIOR PRPAS	$XX.XX	TRS DENTAL, VISION, AUDIO	$XX.XX
2)	TRS 2018 AUTOMATIC PRPA	$XX.XX	TRS OPTIONAL LIFE INSUR	$XX.XX
			TRS LONG TERM CARE - RET	$XX.XX

Retirees In Touch

Ray and Yen-ti Verg-in, Two Decades in Micronesia

Ray Verg-in had just retired from teaching in Sand Point, Alaska when he discovered an advertisement for two teaching positions in Majuro on the Marshall Islands chain. Majuro is the capital and largest city of the Marshall Islands and is located just north of the equator. It is an atoll—a ring-shaped reef—25 miles long with a total land area of four square miles. Within a week of applying, a contract and transportation voucher was sent from the CO-OP School and Ray and his wife Yen-ti had decided to trade the frozen north for the melting south.

After packing some essentials, the Verg-ins left for the equator to start their new adventure. Little did they know they would spend the next 20 years in the Micronesia region.

During their time in Majuro, they learned to scuba dive and explored most of the corners of the island. They beachcombed, snorkeled vibrant coral reefs, experienced severe drought, and a devastating typhoon. After a year full of new experiences, they moved on to their next station in Pohnpei in the Federated States of Micronesia, teaching math at the College of Micronesia.

Pohnpei is a beautiful island amid tropical rainforests, mangroves, high mountains, and waterfalls. During the weekdays Ray and Yen-ti worked hard and taught, but on the weekends, they fished, camped, and played. During breaks from school, the Verg-ins managed to travel, packing in an African safari during their Christmas break one year. However, every year as school concluded, Ray and Yen-ti returned to Alaska to commercial fish east of the Aleutian chain. Two decades of snowbird lifestyle worked well for the retirees, but after 20 years of roaming, the wanderlust faded, and they soon decided it was time to return home to Alaska.

“Here we are in the lovely town of Kenai, which we’ll call home—maybe—for the NEXT 20 years.”

2022 Retiree Benefit Mailing Dates

Retiree benefits will be mailed on the following dates in 2022:

• January 25
• February 25
• March 24
• April 25
• May 25
• June 24
• July 25
• August 25
• September 22
• October 25
• November 23
• December 22

The mailing date is also the date that funds are available from your financial institution. If you would like to have your benefit directly deposited, complete the Electronic Direct Deposit Authorization for Retirees form and return it to the Alaska Division of Retirement and Benefits.

You can find the form on the Benefit Mailing Dates page.

We Want To Hear Your Story!

We want to share your retirement story with your fellow members. Are you volunteering, traveling, involved in the community or just enjoying life? Let us know where you are living now, what you are involved in, where you were employed, and how your State of Alaska retirement has allowed you to enjoy new adventures in retirement.

Submit your stories on our Retirees in Touch page, or email your stories to .

You can also mail your stories and photos to:

Attention: Newsbreak Editor
State of Alaska Division of Retirement and Benefits
333 Willoughby Avenue
6th Floor
P.O. Box 110203
Juneau, AK 99811-0203.

Please keep your stories to 500 words or less.