Teachers' Retirement System (TRS)
This state-sponsored retirement plan was created for teachers and the University of Alaska is a participating employer. Modifications to the plan over the years have resulted in three different "tiers" with benefits based on date of hire:
Tier II: (employees hired July 1, 1990-June 30, 2006)
Tier III: (employees hired on or after July 1, 2006)
Tiers I and II 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 retiree meets age and service requirements.
Tier III 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.
The TRS Tier Chart (pdf) provided by the Alaska Division of Retirement and Benefits 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. More detailed information may be found on the division's Web site, or by calling the division at (800) 821-2251.
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.