State of Alaska Supplemental Annuity Plan - 98214-03 2025

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The State of Alaska 457 Deferred Compensation Plan (DCP) allows you to set aside and invest a portion of your income for your retirement on a voluntary basis. It is designed to complement the Alaska SBS Supplemental Annuity Plan and the Alaska PERS/TRS Defined Contribution Retirement Plan.
Alaska has no state income tax. That means the state doesnt tax Social Security retirement benefits or pension payments. Additionally, there is no state sales tax in Alaska and no estate or inheritance tax.
All* state employees hired after 2006 do not receive pensions or social security. The state opted out of social security for its employees many years ago (because of lack of confidence in social securitys future solvency, as I understand it) and used supplemental benefits (SBS) as a replacement.
Federal law allows certain state and local governments to exclude employees from Social Security coverage if those employees are provided with a sufficiently generous pension.
Most public employees in Alaska do not participate in Social Security. Employees in the DB plan contribute between 6.75% and 9.6% of pay, while employees in the DC plan contribute 8.0% of pay.
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This plan permits you to set aside tax deferred funds over and above the amounts you are accumulating in your retirement plan. This is a salary reduction program, and amounts contributed will not be taxed until you withdraw them.
The Alaska Supplemental Annuity Plan (SBS-AP or the Plan) is a defined contribution plan governed by Section 401(a) of the Internal Revenue Code. A portion of your wages and a matching employer contribution are made pre-tax to this Plan instead of contributions to Social Security.
The State of Alaska discontinued its participation in the Federal Social Security System on December 31, 1979. In lieu of Social Security, the Alaska Supplemental Annuity Plan (SBS-AP) provides an alternative benefit plan.

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