A Juneau lawmaker wants to bring back Alaska’s pension system for state and local workers, including teachers.
On Friday, Senator Jesse Kiehl, a Democrat, pre-filed a bill called Senate Bill 27. This bill aims to restore the pension system that Alaska replaced in 2006 with a 401(k)-style program.
Kiehl said the decision made years ago hurt more than it helped. “We need to fix what went wrong back then,” he said.
He believes that bringing back the pension system will help not just employees but also the state and local taxpayers.
Many agencies and school districts in Alaska are struggling to find and keep workers. Kiehl pointed to a report from last year showing workers saved much less for retirement under the current system compared to the old one.
Not everyone supports the idea. Some lawmakers worry the pension system could cost more than expected and may not solve the hiring problem.
Kiehl’s bill is similar to one proposed last year by Republican Senator Cathy Giessel. Her bill passed the Senate but didn’t go through the House because lawmakers said they needed more financial details.
They even tried adding the pension plan to a separate bill about hiring teachers, but that failed too.
This session, Giessel filed her pension bill again. Kiehl’s version gives new workers a choice between the current system and the pension plan.
Giessel’s bill would enroll every new worker in the pension system but allow current workers to choose.
Both bills need to go through the full committee process again because the Legislature is starting fresh.
Kiehl is hopeful the governor will support the idea this time. “The key is getting the governor involved and getting his approval,” Kiehl said.
Governor Mike Dunleavy has previously doubted whether a pension system would help with hiring.
The Legislature’s new session starts next Tuesday, with lawmakers already arriving in Juneau to get to work.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
