Tier Project undertaken to search for a long-term solution
to rapidly rising costs of PERS and TRS
November 20, 2004
According to Brooks, the Tier Project was undertaken in order to search for a long-term solution to the rapidly rising costs of the Public Employee Retirement System (PERS) and the Teachers Retirement System (TRS.)
Brooks said that the review process was launched by the Commissioner of Administration in September of 2003 when he requested that retirement board members form a task force to study the effects that may result from a new Tier.
The possible adoption of new Tier proposals by the Legislature couldn't diminish or change benefits for existing PERS and TRS members because current benefits are protected by the Alaska Constitution under Article 12, section 7, Brooks said.
Brooks added that a new Tier, if adopted, would only affect new employees hired after the date of adoption, similar to Tier adjustments that took place in 1986, 1990 and 1996.
According to Brooks, the task force reviewed employer surveys, stakeholder feedback as well as benchmarking with other states. Member focus groups were also held during the exhaustive process.
The evaluation of the full
retirement board will be sent to the Commissioner of Administration
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