Government retirement plans

Teacher Retirement System – TRS

Teacher Retirement System plans are operated by each state’s government, but they all share certain characteristics and benefits. These systems are designed to help public school teachers save for retirement, and they function much like other qualified retirement plans. Members of a teacher retirement system are eligible to dedicate a percentage of their salaries toward a 403(b) plan or, in some cases, a 401(a) plan.

Public Employees’ Retirement System – PERS

The purpose of the Public Employees’ Retirement System (PERS) is to attract qualified public employees by offering a variety of benefits to members and their survivors. These benefits, when combined with other income, are designed to provide members with the basis for financial security during their retirement years.

Supplemental Annuity Plans – SBS

The Alaska Supplemental Annuity Plans (SBS-AP) 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. These contributions, plus any change in value (interest, gains and losses) are payable to you or your beneficiary at a future date.

Thrift Savings Plan – TSP

The TSP is a defined contribution plan, meaning that you decide how much to put in and how to invest the money. Employee contributions to a TSP can be pretax or post-tax. If you contribute pretax dollars you don’t pay any taxes until you start withdrawing money from your TSP. If you contribute post-tax dollars, you don’t have to pay taxes when you withdraw the money in retirement. Either way, your contributions grow tax-deferred. FERS employees receive employer contributions. If you’re covered by the FERS, your employer will automatically kick in an additional 1 percent of your salary, and if you make employee contributions, you are also eligible to receive a matching contribution from your employer.


A 457 plan is a nonqualified, deferred compensation plan established by state and local governments and tax-exempt governments and tax-exempt employers. Like other deferred compensation plans, the purpose of a 457(b) plan is to encourage employees to set aside funds for their retirement. Like other nonqualified plans, this offers similar tax benefits for employees. These tax benefits generally include pretax salary-reduction contributions and tax-deferred growth of investment earnings.

Federal Employees Retirement System – FERS

The Federal Employees Retirement System (FERS) is the retirement plan for all U.S. civilian employees. The plan covers all employees in the executive, judicial and legislative branches of the federal government. FERS, however, does not cover military personnel or employees of state or local governments. Employees under FERS receive retirement benefits from three sources: the Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP).

For more information, questions about government retirement planning or questions about how retirement planning fits into an investment strategy please contact one of our CFS Financial Advisors at Denali today.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/ SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.

For specific tax advice, please consult a tax professional.

Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.


Do you have questions about what options and features are available to you under your employer’s pension plan? Talk to one our CFS Financial Advisors today.

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Annuities could be an option for maximizing your pretax contributions. Our CFS Financial Advisors can help you understand your options, schedule a no-obligation consultation today.

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Mutual funds

Mutual funds can add diversity to your investment portfolio. Schedule a no-obligation consultation with our CFS Financial Advisors today.

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Qualified retirement plans

Several qualified retirement plans are provided by employers. Speak to one of our CFS Financial Advisors today to help maximize your benefit.

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