State of Alaska Retirement Advantages and Disadvantages in 2022
Over View of State of Alaska Retirement in 2022
Major government retirement programs in Alaska include the Alaska Public Employees Retirement System (PERS) and the Alaska Teachers Retirement System (TRS). Alaska PERS provides benefits to state employees and employees of the political parties, while the Alaska TRS provides benefits to accredited public school teachers, other designated school district staff, a state university, and the department of education.
A law passed in 2005 transferred the responsibility for asset management from the Alaska State Pension Investment Board to the Alaska Retirement Management Board.
The Act also closed both programs for new members hired after 30 June, 2006. Employees hired after this date only participate in the defined contribution scheme.
Authorizing Statute of State of Alaska Retirement
(a) The Alaska Retirement Management Board has been established by the Department of Finance. The main objective of the board is to act as trustee of the state retirement plan assets, the Alaska State Treasury, and the deferred compensation scheme for public servants, and the Alaska retired health care trusts established under AS 39.30.097.
In accordance with the ethical standards, the board has an honest responsibility to manage and invest these assets in an adequate manner to meet the debt and pension obligations of systems, systems, systems, and trusts.
The Board, with the approval of the revenue commissioner and after agreement with the responsible manager, may manage and invest other state funds as long as the function does not interfere with the core purpose of the board.
In making the investment, the board will utilize the fiduciary powers and functions of the state fund under AS 37.10.071.
Two members, including the administrative commissioner and the revenue commissioner;
Seven trustees appointed by the governor meet the eligibility requirements of the Alaska permanent fund dividend and have professional qualifications or experience in investment management, finance, banking, economics, accounting, pension management, or actuary analysis.
According to the U.S. Census, in FY 2015, employers’ contributions in the Alaska region and local government pension schemes accounted for 20.0 percent of the total local government and local government spending.
Alaska Regional Retirement Systems (PERS and TRS) received a FY 15 one-time $ 3.0 billion contribution from the state budget surplus to reduce unfunded program debt. These amounts amounted to 232 percent and 528 percent of the required employer contributions for PERS and TRS, respectively.
State of Alaska Retirement Benefits
Integrated Retirement Plan
- The Combined Retirement System, or CRS, began production in the late 1990’s
- Originally used as a retirement payroll system, issuing monthly retirement checks
- Use as an employer-assisted subsidiary plan and a payroll system started in 2000 instead of the oldest system.
Use of The System
- CRS is a great independent product
- Support for this program is slowly eroding
- System development is difficult, time consuming, and conversion is expensive
- Frequent duplication of programs used by employers to transport data, such as DataEntr and eReporting
Use by Employers
- A lot of work was done AFTER the data was imported into CRS
- Payroll “Errors” are ignored until salary is combined with CRS information
- The system is still in operation, but many years of development are available for data entry,
compliance, and processing
Why the Change?
- CRS is old and not supported by merchant
- Major technological advances that can be used
- You are currently using multiple programs to perform the function available in one program
- The new system will work best for Retirement Plans and provide employers and members with better products. This improved system will replace most of the processes performed in the Unit
- The Unit will have everything under an integrated system (changing multiple systems used by the Part with duplicate data)
- Being able to combine the health benefits of retirement plans, complete a repetitive task