Senator Jesse Kiehl, a Democrat from Juneau, has introduced Senate Bill 27, aiming to reinstate a pension-style retirement system for state and local government workers, including teachers in Alaska. This proposal seeks to reverse the 2006 decision by the Alaska Legislature to replace the pension system with a 401(k)-style plan.
Kiehl argues that the switch has led to difficulties in recruiting and retaining employees, with a 2023 analysis showing significantly lower retirement savings for employees under the current system.
While some lawmakers are skeptical about the financial feasibility of reinstating the pension system, Kiehl believes it could benefit not only employees but also the state and local taxpayers. His bill offers new employees a choice between the two retirement systems.
A similar pension proposal by Senator Cathy Giessel passed the Senate last session but failed in the House. Giessel’s version would automatically enroll new employees in the pension system while giving current employees a choice. Kiehl supports Giessel’s approach, believing it will gain more traction.
The bills will need to go through the legislative committee process, and Kiehl hopes to gain the governor’s support.
However, Governor Mike Dunleavy expressed skepticism in the past, questioning whether a pension system would effectively address staffing challenges. The first session of the 34th Alaska Legislature begins next Tuesday.