Public Employees' Retirement System (PERS)
This state-sponsored retirement plan was created for public employees and the University of Alaska is a participating employer. Modifications to the plan have resulted in four different "tiers" with benefits based on date of hire:
Tier II: (employees hired July 1, 1986-June 30, 1996)
Tier III: (employees hired July 1, 1996-June 30, 2006)
Tier IV: (employees hired on or after July 1, 2006)
Tiers I-III are a defined-benefit retirement program. The retiree receives a benefit determined by a formula that considers the length of employment, salary level and age. These plans include a retiree medical benefit if the retiree meets age and service requirements.
Tier IV is a defined-contribution or account-based plan. The retiree receives account contributions and investment earnings. Tier IV includes a retiree medical benefit if the retiree meets age and service requirements. Retirees pay a percentage of the health care premium.
The PERS Tier Chart (pdf) provided by the Alaska Division of Retirement and Benefits compares benefits available under the different PERS tiers, including employee and employer contributions, vesting, benefit calculation, Alaska cost-of living increases, retirement medical coverage and disability benefits. More detailed information may be found on the division Web site, or by calling the division at (800) 821-2251.
The UA Decision Guide compares a PERS Tier IV Retirement with the University of Alaska's Retirement Program. Also, learn more about PERS by attending periodic seminars hosted by the Division of Retirement.
Links of Interest
Check out the Retiree Net Pay Estimator
A tool from the Division of Retirement that will help you plan for retirement. The Retiree Net Pay Estimator tool provides an estimate of your net monthly benefit, once you retire.