Alaska Shouldn’t Undo 16 Years and Counting of Fiscal Responsibility

Safiel · 2022-05-18T23:24:36.654Z

Alaska Shouldn’t Undo 16 Years and Counting of Fiscal Responsibility

Alaska is set to pass a bill that would risk the retirement benefits of public employees while putting taxpayers on the hook for millions.

Est. reading time: 5 minutes

Anchorage Daily News

OPINION: Alaska shouldn’t risk returning to defined-benefit retirement

Does Alaska really need to open a risky, potentially bank-breaking retirement pension plan for first responders?

Must Read Alaska – 16 May 22

Bernadette Wilson: More than most states, Alaska is vulnerable to billions in...

STATE STILL OWES $5.5 BILLION TO THE PRE-2007 LEGACY PENSION PROGRAM By BERNADETTE WILSON Two pieces of legislation currently before Alaska lawmakers, House Bills 55 and 220, would allow teachers, public safety personnel, and other public employees...

Est. reading time: 4 minutes

Alaska did something intelligent 16 years ago by switching their government pensions from defined benefit to defined contribution.

Now, for the extremely dubious prospect of encouraging recruitment, they are moving to switch back to defined benefit, which would be an utterly stupid mistake.

As the last opinion piece states, Alaska still owes $5.5 Billion to its pre-2007 defined benefit legacy pension plans.

Alaska is potentially setting itself up with a financial crisis that could lead to the imposition of a State Sales Tax or a State Income Tax on its citizens to pay for the next pension crisis.

This needs to be stopped in the worst way and Alaska needs to stay on defined contribution. And other jurisdictions need to move to defined contribution.