pensions just passed the senate

The Alaska State Senate passed House Bill 78 on April 28 by a 12 to 8 vote, moving the state closer to restoring a defined benefit pension option for public sector employees including teachers, state troopers, firefighters and municipal workers. The bill now heads to the Alaska House of Representatives for concurrence on Senate amendments, then to Governor Dunleavy for a signature or veto.

Workers would get the choice to stay on the current defined contribution, 401k style plan or switch into the new pension. Employers would also have the option to opt out if the cost looks too steep. The total cost to the state could reach 89 million dollars a year, depending on how many employees choose the new plan.

Alaska ended its old pension system in 2006 and replaced it with the 401k style plan. That change has made it harder for the state to hold on to experienced public workers, since retirement became riskier under the new system.

Anchorage, the Mat-Su Valley and Fairbanks would feel the change most, since those areas have large concentrations of state workers. Supporters say restoring a pension option could reshape recruitment and retention in classrooms, fire stations and police departments statewide.