TRS Newsbreak:
Summer 2025, Issue 133

Retirement Support

We’re here to help!

Whether you prefer to do your own research or speak with someone directly, the Alaska Division of Retirement and enefits has you covered.

Prefer to Research?

Visit drb.alaska.gov for all forms, services, and plan information—all in one place.

Want to Talk to Someone?

Call us! Member Education Center staff can answer your questions, provide the documents you need, help you better understand your retirement options, and more!

Need More In-Depth Help?

Our highly rated and experienced counselors are here to help you plan for your future. Appointments are available up to six months in advance. Schedule your session today: drb.alaska.gov/contact/counseling.html.

Counseling is great for...

Projection of benefits, Service reviews, understanding your retirement plan, helping you and your spouse prepare for retirement, and much more!

Workshops and Seminars

We offer a monthly Retirement Application Review workshop in Juneau—coming soon to Microsoft Teams.

Monthly retirement seminars are available in Juneau, Anchorage, and online. Visit our Seminars & Workshops webpage at drb.alaska.gov/events/seminars.html to learn more.

You can also find our most popular seminars online at YouTube.com/AlaskaDRB .

Processing Times

Our current processing time is 4–6 weeks from your retirement application’s effective date. Plan for your income needs during this time. Once complete, payments are sent on or before the 25th of each month.

Walk-Ins Welcome!

You, Power of Attorney, and Your Benefits

What is Power of Attorney?

If you sign a power of attorney, you give another person (your agent) the right to make decisions for you and provide them with the authority to carry out those decisions. You can give your agent broad powers to do almost anything you could do for yourself, known as a general power of attorney, or you can give the agent certain powers, or a specific power of attorney.

What You Should Know

It is critically important that you trust the person you name as your agent. The authority you give as the “principal” can have a major impact on you. A person acting with the power of attorney does not have to answer to a court. There is no formal oversight of your agent regarding the decisions he or she makes on your behalf. You need to make sure your agent understands your wishes and desires.

You can choose to appoint an agent immediately or you can make the appointment effective only if you become disabled. In that case, your agent will need two affidavits agent from medical experts stating you are disabled and unable to make decisions before he or she can act on your behalf. You can limit the time your agent will have the power to act on your behalf or you can make the appointment “durable,” which means your agent will have powers even if you become disabled or otherwise incapacitated. You can also state the appointment will be revoked upon your incapacity. You should clearly state on your power of attorney form what powers you want your agent to have and when and under which conditions they are or will become effective. As long as you are competent, you do have the right to revoke the power of attorney. You must revoke the power of attorney in writing. If you write a new power of attorney naming a new agent, the new power of attorney supersedes the previous one as long as the powers are the same or similar.

You can also name more than one agent to act on your behalf. If you name more than one agent, you need to make it clear whether the agents can make decisions independently or they must act jointly. Want to learn more about power of attorney or general information about filling out a power of attorney form? You can find more information about power of attorney in Alaska Legal Services Corporation’s Power of Attorney booklet available through the Alaska Court System’s Self-Help Center.

Power of Attorney and Your Retirement Benefits

Have you given power of attorney to someone? If you have and you gave your agent the power to make decisions about your retirement benefits, please send a copy of the power of attorney to the Division of Retirement and Benefits at .

Please note: The Division of Retirement and Benefits accepts and applies Durable Financial POAs only. All Medical POAs should be submitted directly to our third-party administrators, Aetna, Optum Rx, Wellcove by CHCS Services, etc., as needed.

Glossary

• Agent:
  The person authorized to act on the behalf of the principal.
• Principal:
  The person authorizing the other person—the agent—to act on their behalf. Also known as grantor or donor (of the power).
• Power of Attorney:
  A written document through which you can give another person (your agent) the right to make decisions for you and the authority to carry the decisions out.

The Post Retirement Pension Adjustment

Will Be Paid With July 2025 Check

The automatic PRPA is payable to a Teachers’ Retirement System (TRS) retiree under age 60, if retired for eight years on or before July 1, 2025.

In addition to the above requirements, a retiree must have been receiving a benefit in the prior year (2024) to be eligible for the 2025 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, 2025, you will receive 50% (1.053%) of the Consumer Price Index (CPI) change during 2024.

Retirees aged 65 or older and all disability benefit recipients receive 75% (1.580%) of the CPI. The PRPA for survivor benefit recipients is calculated on the member’s eligibility. The CPI for the 2025 PRPA is 2.107%.

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 2025. The ad hoc PRPA is defined in statute as, “…based on the financial condition of the retirement funds.”

Example of Monthly Statement

• This example shows a retiree who is receiving a benefit from the TRS.
• 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, 2025.
2. 2025 Automatic PRPA: This is effective July 1, 2025, based on the change in consumer price index (CPI).

Example of monthly statement
Monthly Benefit Summary
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 2023 AUTOMATIC PRPA	$XX.XX	TRS OPTIONAL LIFE INSUR	$XX.XX
			TRS LONG TERM CARE - RET	$XX.XX

Understanding The State Of Alaska 457 Deferred Compensation Plan

It’s Never Too Late to Start Saving for Retirement

Whether you’re early in your career or closer to retirement, the State of Alaska 457 Deferred Compensation Plan (DCP) is designed to help you build a more secure financial future—starting whenever you are ready.

This voluntary savings program is available to eligible State of Alaska, Political Subdivision, and school district employees who want to supplement their retirement income on their own terms.

Why Consider the DCP?

Flexible Contribution Options: Start small or go big—it’s up to you. You can contribute as little as $25 per paycheck through a pre-tax, Roth (after-tax), or a mix of both types of contributions.

Open to Many Public Employees: If you work for the State of Alaska or participating Political Subdivision or school districts, you’re eligible to enroll.

Use Your Leave Payouts Wisely: Roll personal leave payouts into your DCP account to defer taxes and grow your savings.

Set It and (Gradually) Increase It: With the optional Auto-Increase feature, your contributions can grow over time without you having to think about it.

Investment Choices That Fit You: Direct your own investments or get one-time “Point-In- Time” advice from Empower Retirement.

Start, Stop, Adjust—Anytime: You have full control over when and how you contribute.

Catch-Up Options Available: If you are behind on retirement savings, the DCP offers standard and special catch-up provisions to help you make up for lost time.

Access in Emergencies: Facing a financial hardship? Special withdrawal rules allow access while you’re still working.

No Early Withdrawal Penalties: Unlike some retirement accounts, the DCP doesn’t charge early distribution penalties.

Multiple Ways to Take Distributions: When you’re ready, you can choose how to receive your funds—flexibility continues even in retirement.

It’s never too late to take control of your retirement journey. Visit drb.alaska.gov/employee/dcplan.html to learn more, or schedule an appointment with a Benefit Counselor at drb.alaska.gov/contact/counseling.html.

Upcoming Seminars and Workshops

Join us in June and July to learn more about your retirement.

Visit our Seminars & Workshops webpage to sign up, find additional information, and view the latest schedule.

Visit the Seminars & Workshops webpage.