# PERS and Alaska State Benefits, Explained · Alaska Jobs [← The Board](https://alaskajobs.org/) · [Field Guides](https://alaskajobs.org/guides) # PERS and Alaska State Benefits, Explained By the Alaska Jobs Desk · July 2026 As of 2026-07-12, Alaska Jobs tracks 2030 open Alaska public-sector positions from 253 employers, median posted salary $73,746 — [all the numbers](https://alaskajobs.org/numbers) . Here's the fact that reframes every State of Alaska job offer: most state employees don't pay into Social Security. Alaska opted out in 1980. In exchange, the state runs its own stack — PERS retirement plus a mandatory savings plan called SBS — and whether that trade is good for you depends on details almost nobody explains plainly. This is the plain explanation. ## The three-letter words - PERS — the Public Employees' Retirement System, Alaska's retirement plan for state and many municipal employees, administered by the Division of Retirement and Benefits (DRB). - SBS — the Supplemental Benefit System, the thing that replaces Social Security: a mandatory defined-contribution account funded by roughly 6.13% of your wages plus an equal match from the employer. - TRS — the parallel system for teachers; different plan, same administrator, out of scope here. ## Tiers: which PERS you get is set by your hire date PERS has four tiers, and your tier is locked by when you first entered covered employment: - Tiers I–III (first hired before July 1, 2006) — traditional defined-benefit pensions: you contribute 6.75% of pay (general employees), and retirement pays a guaranteed lifetime benefit computed from your salary and years of service. These tiers closed to new members two decades ago. - Tier IV (first hired on or after July 1, 2006) — a defined-contribution plan (the "DCR" plan): you contribute 8% of pay, the employer adds 5% to your individual account, you choose the investments, and the balance is what you retire on. Every new hire today is Tier IV. The practical difference: a DB pension transfers longevity risk to the state — work a career, get a check for life. Tier IV transfers it to you — your account is real money you own and can roll over, but nothing is guaranteed. For a mobile professional who may work in Alaska five years, Tier IV's portability is genuinely valuable; for a 30-year lifer, the old pension was the better deal, which is why its closure remains a live political fight: the Legislature passed a DB-restoration bill (HB 78) in April 2026, and it died that May on a sustained gubernatorial veto. Expect the debate to return. ## Vesting: the five-year clock Your own contributions — the 8%, and all of SBS — are always yours. The employer's Tier IV contributions vest on a graded schedule — nothing before two years of service, then 25% at two years, 50% at three, 75% at four, 100% at five; leave early and you forfeit the unvested share. If you're weighing a departure around a service anniversary, the vesting schedule is worth real money — check your exact date with DRB before giving notice. ## SBS: the quiet 12% Because most state employees are outside Social Security, no 6.2% FICA comes out of your check. Instead, about 6.13% goes to SBS and the employer matches it — roughly 12.26% of wages (up to the Social Security wage base) accumulating in an account you own, vested immediately. Over a career this is a serious asset, and it's the piece job-changers most often forget they have. One consequence worth knowing: since the Social Security Fairness Act passed in January 2025, the old penalty (the Windfall Elimination Provision) that reduced Social Security earned from other jobs no longer applies — a real improvement for anyone mixing Alaska state service with private-sector years. ## The rest of the stack - Health insurance — AlaskaCare medical/dental/vision for employees; premiums and plan tiers set in bargaining. Retiree medical exists in all tiers but works very differently (DB tiers carry system-paid retiree coverage; Tier IV builds a health reimbursement arrangement and earns retiree medical access with service). - Leave — most positions accrue combined personal leave that grows with service, plus 11–12 paid holidays. - Deferred comp — an optional 457(b) on top of everything above, for aggressive savers. ## How to weigh an offer, in one paragraph Take the posted salary ( [calculator](https://alaskajobs.org/tools/state-salary-calculator) , with your duty station's differential), then remember the benefits math: 8% of your pay goes to your own retirement account and is matched at 5%, another ~6.13% is matched dollar-for-dollar in SBS, and no Social Security tax comes out. A state offer that looks 10% below a private one can net out ahead once the ~11% of employer-side retirement money and the FICA difference are counted — and that's before health premiums are compared. Run the arithmetic, not the sticker. Rates cited are the general-employee rates; peace officers and firefighters contribute more and retire earlier. Authoritative details, plan booklets, and your personal tier: the [Alaska Division of Retirement and Benefits](https://drb.alaska.gov/) . This guide is orientation, not benefits counseling. ## Quick answers Most do not. The State of Alaska opted out of Social Security in 1980; in its place, state employees get the Alaska Supplemental Benefit System (SBS) — a mandatory defined-contribution plan where roughly 6.13% of wages from the employee and a matching amount from the state go into an individual account — on top of PERS retirement. Your PERS tier is set by your first entry into Alaska Public Employees' Retirement System service: Tier I before July 1, 1986; Tier II from July 1, 1986; Tier III from July 1, 1996; and Tier IV — the defined-contribution plan — for everyone first hired on or after July 1, 2006. All new State of Alaska hires today are Tier IV. No — PERS Tier IV is a defined-contribution plan, not a traditional pension. You contribute 8% of pay, the employer contributes 5% to your individual account, and the balance is yours to invest and take with you. Tiers I–III (closed to new members since 2006) are defined-benefit pensions with a guaranteed lifetime payment. Your own contributions are always yours. In PERS Tier IV, the employer's contributions vest on a schedule during your first five years of service — leave before fully vesting and you forfeit the unvested employer share, while your 8% and its earnings go with you (rollover-eligible). ## On the board [Salary calculator (with PERS) →](https://alaskajobs.org/tools/state-salary-calculator) [Getting the state job →](https://alaskajobs.org/guides/how-to-get-a-state-job) [Open state jobs →](https://alaskajobs.org/jobs/state-policy) [All field guides →](https://alaskajobs.org/guides) --- Markdown mirror of https://alaskajobs.org/guides/pers-and-state-benefits · full index: https://alaskajobs.org/llms.txt