Senate committee adopts amendment phasing TRS contributions; DEED to cover initial payments, effective date moved to 2027

Juneau, Alaska — The Senate Labor and Commerce Committee on Wednesday adopted Amendment A.3 to Senate Bill 55, which changes how participation costs in a supplemental retirement system would be phased for school districts and employees.

The amendment deletes two sections of the original draft and adds new subsections to AS 39.31.050 that prescribe payment responsibility over a multi-year phase-in. Under the amendment, the Department of Education and Early Development (DEED) would pay 100% of both employer and employee required contributions for the first three years of participation. During years four through seven, DEED would pay two-thirds (66 2/3%) of the required contribution. In the following three years (years eight through ten), DEED would pay one-third (33 1/3%) of the required contribution. After that stepped schedule, employers and employees would be responsible for their full, respective contributions.

Committee staff, Conrad Jackson, described the amendment’s phased schedule and said the effective date was changed to 2027 to align with the stepped payment plan. Chair Bjorkman said the intent of the phase-in and the effective-date change is to make clear to school districts and other stakeholders what the bill’s costs would be over time and to avoid imposing a full contribution requirement immediately.

The amendment was moved by Senator Tom Merrick, discussed by members and adopted by the committee; the transcript records adoption by unanimous consent with no roll-call vote recorded. Public testimony on SB 55 remained open and will be held until the committee’s next hearing on the bill.

Chair Bjorkman said he is considering one additional amendment and intends to continue refining the bill to ensure the fiscal impacts on school districts and employees are clearer before any final committee action.