Alaska lawmakers aim to reform the public retirement system to tackle staffing shortages and improve recruitment efforts
Juneau: So, Alaska’s House and Senate are gearing up to tackle retirement reform. It’s a big deal for them this session. They’re really feeling the heat with staffing shortages, especially in schools and law enforcement.
Senate Majority Leader Cathy Giessel, a Republican from Anchorage, is pushing for pension reform alongside boosting the education budget. She believes these two issues are tightly linked. If there aren’t enough qualified teachers, even the best funding won’t help much.
Back in 2006, Alaska switched to a defined contribution plan for retirement, which means no guaranteed income for retirees. This has left many folks struggling to save enough for retirement. Plus, with older workers retiring, the state is facing a real staffing crisis.
Giessel thinks the situation is pretty dire. It’s not just about delays in Medicaid or food stamps; it’s about the core functions of the state. She’s reintroducing a bill that aims to bring back defined benefits for public sector workers, which could help stabilize the system.
Last year, her bill passed the Senate but got stuck in the House. This time, she’s got support from incoming Rep.-elect Chuck Kopp, which could speed things up. Her plan would shift some financial responsibility to the workers, but some lawmakers are still worried about the costs.
On the flip side, Sen. Jesse Kiehl, a Democrat from Juneau, has his own proposal that puts less risk on workers. He thinks his plan is the best but is realistic about its chances. He’s ready to support Giessel’s bill while keeping his on the table.
There’s hope that both chambers will see the benefits of returning to defined benefits. But it still needs the governor’s approval, and he hasn’t shown much interest in expanding retirement options.
