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teacher retirement

PostPosted: Sun Nov 03, 2019 1:42 pm
by redfox
Hello
I was wondering how retirement works for new teachers in Alaska. Can new teachers count on a pension in Alaska after retirement ? Do teachers worry about retirement running out when it's their turn?
Is retirement limited to what you and the district invest only?

Re: teacher retirement

PostPosted: Mon Nov 04, 2019 6:29 am
by Johncn
Hello Red,

In short, Alaska has what they call their "Tier III" plan for all teachers hired after July of 2006. This is a defined-contribution or account-based plan. The retiree receives account contributions and investment earnings. Tier III includes a retiree medical benefit if the retiree meets age and service requirements. Retirees pay a percentage of the health care premium. There is "vesting", which ensures value.

The Alaska Teacher Retirement System (TRS) has a very good website here with the full details on the plan: http://doa.alaska.gov/drb/trs/

Here is a handy chart as a PDF: http://doa.alaska.gov/drb/pdf/trs/trstieri-iiichart.pdf

The chart compares benefits available under the different TRS tiers, including employee and employer contribution, vesting, benefit calculation, Alaska cost-of living increases, retirement medical coverage and disability benefits.

Hope this helps,

John