An Act relating to the teachers' defined contribution retirement plan; relating to the public employees' defined contribution retirement plan; and providing for an effective date.

SB 198 amends Alaska's retirement benefit rules for teachers and public employees, directly affecting current and future participants in the state's defined contribution retirement plans. It adjusts eligibility requirements (e.g., requiring 25 years of service for teachers to qualify for full retirement benefits instead of 30) and modifies retiree health insurance premiums based on years of service - reducing the discount for Medicare-eligible retirees with 25+ years of service from 15% to 10%. The bill also clarifies that employees who leave before meeting retirement requirements lose their contributions unless they return to work with a participating employer by age 65, at which point their account balance is restored with interest. These changes update existing benefit calculations without creating new programs.