Tier I
Before July 1, 1990
Pension plan.
Handbook (2011), p. 5, Membership Tiers; p. 17, Minimum Requirements for Age-Based Retirement; Retirement booklet (June 2023), p. 2, What Tier Am I?Tier II
To June 30, 2006
Pension plan.
Handbook (2011), p. 5, Membership Tiers; p. 17, Minimum Requirements for Age-Based Retirement; Retirement booklet (June 2023), p. 2, What Tier Am I?Tier III
On or after July 1, 2006
DCR plan: an investment account, no pension.
Retirement booklet (June 2023), p. 2, What Tier Am I?; DCR handbook (2025), p. 3, General Information; p. 5, Membership; AS 14.25.012(c), 14.25.310Short answer: your tier is set by the date you first entered Alaska TRS: Tier I before July 1, 1990, Tier II through June 30, 2006, Tier III (the DCR plan) after. Tiers I and II use the same formula but different ages for early retirement and different retiree medical rules. The calculator picks your tier from your entry date.
A refund of your contributions gives up your service and your tier. Handbook (2011), p. 5, Membership Tiers; p. 35, Glossary, Tier; p. 6, Refunds; trs024 (Jan. 2013), p. 2, What Tier Am I?
Some descriptions of Alaska TRS list a "Tier IV" defined contribution plan. DRB's own publications say Alaska TRS has Tier I and Tier II (the pension plan) and Tier III (the Defined Contribution Retirement plan). "Tier IV" is the name used in the separate Public Employees' Retirement System (PERS). We follow DRB.
Retirement booklet (June 2023), p. 2, What Tier Am I?; DCR handbook (2025), p. 3; Handbook (2011), p. 5
What Tier I and Tier II change
| Tier I | Tier II | |
|---|---|---|
| Who | First entered before July 1, 1990 | First entered July 1, 1990 to June 30, 2006 |
| Full benefit | Age 55, vested; or any age with 20 years of membership service (or 25 credited, last five membership) | Age 60, vested; or the same 20- and 25-year rules |
| Early (reduced) | From 50; DRB doesn't publish the factors | From 55, by the published factor |
| Formula | 2% for years before July 1, 1990 and the first 20; 2.5% after | 2% for the first 20 years; 2.5% after |
| Alaska COLA (10%) | From retirement, per DRB | From age 65 |
| System-paid retiree medical | From the start of your benefit | At 60, or with 25 years of membership service |
| You pay | 8.65% of base salary | 8.65% of base salary |
Handbook (2011), p. 5, Membership Tiers; p. 17, Minimum Requirements for Age-Based Retirement; Retirement booklet (June 2023), p. 2, What Tier Am I?; Handbook (2011), p. 17, Minimum Requirements for Age-Based Retirement; Seminar handout (Jan. 6, 2025), slide 5; Handbook (2011), pp. 21-22, Cost-of-Living Allowance; Retirement booklet (June 2023), p. 2; p. 27, Alaska Cost-of-Living Allowance; Seminar handout (Jan. 6, 2025), slide 29; 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; Handbook (2011), p. 6, Contributions; Plan Comparison Chart (Rev. 1/20), p. 1
Tier I ages and the Tier I Alaska COLA follow DRB's publications; the statute as printed differs. See early retirement and the COLA.
Tier III: the DCR plan
If you first entered Alaska TRS on or after July 1, 2006, you're in the Defined Contribution Retirement plan. There's no pension to estimate: what you get is your account balance. These are the plan's rules as DRB writes them. We don't project balances.
What goes in
You put in 8% of your pay, before tax. Your employer adds 7%. DCR handbook (2025), p. 6, Mandatory Contributions; DCR Features and Highlights (2026), p. 1; DCR Overview flyer, p. 1
Vesting
Your own contributions and their earnings are always 100% yours. Your employer's contributions vest with years of service:
| Years of service | Employer money that's yours |
|---|---|
| 1 | 0% |
| 2 | 25% |
| 3 | 50% |
| 4 | 75% |
| 5 or more | 100% |
Retiree medical
DCR members get retiree medical coverage only if they retire directly from the plan and either have 30 years of service, or reach Medicare age (65 today) with 10 years. Before Medicare age you pay the full premium. After it, your share depends on your service: 30% with 10 to 14 years; 25% with 15 to 19 years; 20% with 20 to 24 years; 15% with 25 to 29 years; 10% with 30 or more years. An employer-funded health reimbursement arrangement helps with costs. DCR handbook (2025), p. 19, Retiree Premiums; p. 20, Conditions of Eligibility; dcr010 (Aug. 2026), p. 1; DCR Overview flyer, p. 2; DCR handbook (2025), p. 25, Health Reimbursement Arrangement; DCR Overview flyer, p. 2
No Alaska COLA or PRPA. Plan Comparison Chart (Rev. 1/20), p. 2 More on retiree medical.
HB 78, 34th Alaska Legislature would have given certain employees a choice between the pension and DCR plans in PERS and Alaska TRS. Status on akleg.gov: Transmitted to the Governor Apr. 30, 2026; vetoed by the Governor May 18, 2026; veto sustained in joint session May 19, 2026 (Y33 N27). Current status: VETO SUSTAINED.
No defined benefit plan was reopened. Members first hired on or after July 1, 2006 remain in the DCR plan (Tier III).
Alaska Legislature, HB 78 (34th Legislature) Bill History/Action, akleg.gov (fetched Nov. 12, 2026): Current Status VETO SUSTAINED, Status Date 05/18/2026; actions "(H) VETOED BY GOVERNOR 5/18/26" and "(H) GOVERNOR VETO SUSTAINED Y33 N27"
The facts
- Alaska teachers belong to the Teachers' Retirement System (Alaska TRS), run by the Division of Retirement and Benefits. It covers certificated teachers, school nurses and others in jobs that require a teaching certificate in Alaska public schools, plus University of Alaska teachers who are not in the University's Optional Retirement Program.Handbook (2011), p. 5, Who is a Member of the TRS Defined Benefit Plan?
- Your tier depends on when you first entered Alaska TRS: Tier I before July 1, 1990; Tier II from July 1, 1990 through June 30, 2006; Tier III on or after July 1, 2006. Tiers I and II are the defined benefit (pension) plan. Tier III is the Defined Contribution Retirement (DCR) plan, an investment account.Handbook (2011), p. 5, Membership Tiers; Retirement booklet (June 2023), p. 2, What Tier Am I?; DCR handbook (2025), p. 3
- Alaska TRS has no Tier IV. "Tier IV" is the name of the defined contribution tier in the separate Public Employees' Retirement System (PERS); for teachers the same plan is Tier III.DCR handbook (2025), p. 3, General Information
- If you take a refund of your Alaska TRS contributions, you give up your service, your tier and your future pension and retiree medical coverage.Handbook (2011), p. 6, Refunds
- The 2026 bill to let DCR members choose a new defined benefit plan (HB 78) passed the Legislature but was vetoed by the Governor on May 18, 2026, and the veto was sustained on May 19, 2026. No defined benefit plan has reopened.HB 78 (34th Legislature), bill history and actions, akleg.gov (fetched Nov. 12, 2026); "(H) GOVERNOR VETO SUSTAINED Y33 N27"
- In Tiers I and II you are vested with 8 paid-up years of Alaska TRS membership service (other routes: 5 years of membership plus 3 of Alaska BIA service; 12 school years of part-time service; or 15 credited years if you entered before July 1, 1975). Vested members can leave and still draw a pension at retirement age, as long as they leave their contributions in.Handbook (2011), p. 17, Vesting
- Tier I and II members contribute 8.65% of base salary, pre-tax, and employers pay 12.56%. DCR members contribute 8% and their Alaska TRS employer adds 7%.Handbook (2011), p. 6; Plan Comparison Chart (Rev. 1/20), p. 1; AS 14.25.050, 14.25.070, 14.25.340, 14.25.350
Other Alaska plans
- Public Employees' Retirement System (PERS): Non-teaching public employees, including school district employees not in Alaska TRS positions. Half-time or more in both at once can earn partial credit in each, up to one year total per school year. Handbook (2011), p. 5, Simultaneous TRS and PERS Credit; AS 14.25.040(d)
- University of Alaska Optional Retirement Program (ORP): University of Alaska faculty and academic administrators may choose the ORP instead of Alaska TRS; the choice cannot be changed. Handbook (2011), p. 5; p. 33, Glossary, University of Alaska Optional Retirement Program
See how your tier's rules play out in the calculator, or read about early retirement and the formula.
Questions
What decides my Alaska TRS tier?
The date you first entered Alaska TRS. Before July 1, 1990: Tier I. From July 1, 1990 through June 30, 2006: Tier II. On or after July 1, 2006: Tier III, the Defined Contribution Retirement (DCR) plan.
Is there a Tier IV for teachers?
No. Alaska TRS has Tiers I, II and III. "Tier IV" is the name of the defined contribution tier in the separate Public Employees' Retirement System (PERS).
Does Tier III get a pension?
No. Tier III is the DCR plan: you and your employer put money into an investment account, and what you get is the account balance. Your own contributions are always yours; employer money vests over 5 years.
Did the Legislature reopen the pension plan in 2026?
No. HB 78 (34th Legislature) would have let some members choose the pension plan. The Governor vetoed it on May 18, 2026, and the Legislature sustained the veto on May 19, 2026.
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. 5, 6, 17, 21-22, 23, 24, 33, 35. Also: Retirement booklet (June 2023), pp. 2, 4, 27; DCR handbook (2025), pp. 3, 5, 6, 19, 20, 25, 28; Seminar handout (Jan. 6, 2025), slides 4, 5, 6, 20, 22, 29; Plan Comparison Chart (Rev. 1/20), pp. 1, 2; DCR Features and Highlights (2026), pp. 1, 2; DCR Overview flyer, pp. 1, 2; HB 78 (34th Legislature) bill history; brochure dcr010; brochure trs024; AS 14.25.012, 14.25.040, 14.25.050, 14.25.070, 14.25.310, 14.25.340, 14.25.350, 14.25.540. Last reviewed .