Hearings Held to Restore Defined Benefits

February 15, 2009
Last week, the Senate held the first hearing to help restore defined benefits.  The Chair of the (S) Labor and Commerce Committee, Senator Joe Paskvan (D-Fbks), scheduled a hearing on SB 23 last Thursday.  

The bill’s sponsor, Senator Elton, gave eloquent testimony beginning with a review of the history of SB 141, the infamous legislation that squeaked through by one vote during a special session four years ago and led to the 401-k style plans for new employees today.  He recalled that the impetus for the change was the unfunded liability but then stressed that it was Tier I causing the problems, a program now closed for twenty years.

Senator Elton cited a report from the Division of Retirement and Benefits showing that the cost of PERS Tier III and TRS Tier II were nearly the same as the new Defined Contribution Retirement Plan (DCRP) and he lamented the problems with recruitment and retention. 
(For more information, read the February 15, 2009 Legislative Update)

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APEA, as a founding member of the Alaska Public Pension Coalition, is leading the fight to restore a defined benefit retirement plan for Alaska’s teachers, fire fighters, correctional and police officers, and public employees.

For information about the coalition, pension reform, research, FAQ’s, and legislative updates, visit www.akpensionreform.org