Tier I
System-paid
System-paid medical coverage for the retiree, spouse and eligible dependents when monthly benefits start (early or normal retirement).
Handbook (2011), p. 23, Medical Coverage at Retirement; p. 24, Medicare; Retirement booklet (June 2023), p. 2, What Tier Am I?; Seminar handout (Jan. 6, 2025), slides 20, 22Tier II
At 60 or 25 years
System-paid at age 60 or with 25 years of paid-up membership service; before then you may buy coverage at the full premium.
Handbook (2011), p. 23, Medical Coverage at Retirement; p. 24, Medicare; Retirement booklet (June 2023), p. 2, What Tier Am I?; Seminar handout (Jan. 6, 2025), slides 20, 22Disability
Any age
System-paid for disability recipients at any age.
AS 14.25.168(a), (d)Short answer: Tier I retirees get system-paid AlaskaCare when benefits start. Tier II gets it free at 60 or with 25 years of membership service, and may buy it at full premium before then. At 65, Medicare pays first (see Social Security and Medicare). Reaching that age or service is one reason to weigh one more year; which tier you're in decides the rules. Estimate your pension in the calculator.
Medicare
AlaskaCare becomes supplemental to Medicare at 65; enroll in Medicare Parts A and B. AlaskaCare enrolls retirees in Medicare Part D through its EGWP. Handbook (2011), p. 23, Medical Coverage at Retirement; p. 24, Medicare; Retirement booklet (June 2023), p. 2, What Tier Am I?; Seminar handout (Jan. 6, 2025), slides 20, 22
Dental, vision, hearing and long-term care
Dental-Vision-Audio and Long-Term Care (one-time election at retirement) at the retiree's cost. Handbook (2011), p. 23, Optional Health and Life Plans; Seminar handout (Jan. 6, 2025), slides 24-27
Spouses on a survivor option keep retiree medical coverage. Handbook (2011), p. 18; p. 19, Rights of Spouses and Dependents; Retirement booklet (June 2023), p. 22, Section V, Joint and Survivor Options; AS 14.25.167
Tier III: DCR retiree medical
Retire directly from the plan (active for the 12 months before applying) with 30 years of service, or at Medicare-eligible age (currently 65) with 10 years. Before Medicare you pay the full premium; after, you pay a share by service. DCR handbook (2025), p. 19, Retiree Premiums; p. 20, Conditions of Eligibility; dcr010 (Aug. 2026), p. 1; DCR Overview flyer, p. 2; AS 14.25.470
| Years of service | Your share of the premium after Medicare age |
|---|---|
| 10 to 14 | 30% |
| 15 to 19 | 25% |
| 20 to 24 | 20% |
| 25 to 29 | 15% |
| 30 or more | 10% |
Irrevocable election by age 70-1/2 or at application, whichever is later.
Health reimbursement arrangement: Employer-funded account (flat amount based on 3% of average annual compensation of all PERS and Alaska TRS members). Usable after leaving at Medicare age with 10 years of service, or at any age with 30 years (Alaska TRS); no need to retire directly from the plan. Cannot be cashed out. DCR handbook (2025), p. 25, Health Reimbursement Arrangement; DCR Overview flyer, p. 2
DCR medical and HRA eligibility depend on the Medicare eligibility age at retirement (AS 14.25.470(b)); dcr010 says it is currently 65.
We use 65, the Medicare-eligible age DRB gives in its August 2026 brochure.
What would settle it: No change needed unless federal Medicare age changes.
The facts
- Tier I retirees get system-paid AlaskaCare retiree medical coverage for themselves and eligible dependents when benefits start. Tier II retirees get it free at age 60 or with 25 years of membership service; before that they may buy it at the full premium. Disability recipients are covered at any age.Handbook (2011), p. 23, Medical Coverage at Retirement; Seminar handout (Jan. 6, 2025), slide 20
- AlaskaCare becomes secondary to Medicare at 65, so retirees and spouses should enroll in Medicare Parts A and B. Dental-vision-audio and long-term care are optional, paid by the retiree; long-term care can be chosen only at retirement.Handbook (2011), pp. 23-24; Seminar handout (Jan. 6, 2025), slides 22, 24, 27
- DCR (Tier III) members can get retiree medical only by retiring directly from the plan with 30 years of service, or at Medicare age with 10 years. Before Medicare you pay the full premium. After, you pay 30% with 10-14 years, down to 10% with 30 or more. A separate employer-funded health reimbursement arrangement helps pay costs.DCR handbook (2025), pp. 19-20, 25; DCR Overview flyer, p. 2
The calculator shows when your coverage becomes system-paid. See also the DCR plan.
Questions
Do Alaska TRS retirees get health insurance?
Yes, through the AlaskaCare Retiree Health Plan. Tier I: system-paid from the start of your benefit. Tier II: system-paid at 60 or with 25 years of membership service; before then you can buy it at full cost.
What happens at 65?
AlaskaCare works with Medicare, so enroll in Medicare Parts A and B.
Do Tier III (DCR) members get retiree medical?
Only if they retire directly from the plan with 30 years of service, or at Medicare age (65) with 10 years. Before Medicare they pay the full premium.
Source: Alaska Teachers' Retirement System Information Handbook (Tiers I and II), 2011 edition (current on drb.alaska.gov), checked against the TRS Retirement Application Instruction Booklet (June 2023), pp. 18, 19, 23-24. Also: Retirement booklet (June 2023), pp. 2, 22; Seminar handout (Jan. 6, 2025), slides 20, 21, 22, 24-27; DCR handbook (2025), pp. 19-20, 25; DCR Overview flyer, p. 2; brochure dcr010; AS 14.25.167, 14.25.168, 14.25.470. Last reviewed .