Juneau – House Bill 107 is new legislation aimed at providing a sustainable and balanced approach to retirement benefits for teachers, police officers, and firefighters. Sponsored byRepresentative Frank Tomaszewski (R- Fairbanks), HB 107 serves as an alternative to HB 78, the House Majority Coalition bill which would return all public employees to a defined benefits plan that would burden the state with costly long-term liabilities. The state currently has billions of dollars in unfunded liabilities from the previous defined benefits pension system that was abandoned for a more responsible defined contributions plan 20 years ago.
HB 107 allows employees to choose enhanced defined contribution plans and aligns with modern workforce trends to ensure public employees have flexible, portable, and secure retirement options.
“A retirement system should be built to last, not built to fail,” said Representative Tomaszewski. “The House Majority’s bill puts Alaska on a risky financial path, while HB 107 strengthens retirement security without mortgaging the future.”
HB 107 corrects disparities in Alaska’s retirement system, particularly for public employees who currently do not participate in Alaska Supplemental Benefits Plan (SBS), which include teachers and some public safety officers and firefighters. SBS is a state retirement account that allows public employees to receive an additional 12.26% of their gross wages contributed to their retirement, with a 6.13% employer-employee match. This bill would allow employees to opt into SBS as opposed to the current law which leaves that decision up to the employer. In addition, this bill increases the employer contribution to public safety officers and firefighters by 4.74%, recognizing that these are more dangerous jobs with shorter careers.
“This plan is a serious, well-balanced approach to supporting Alaska’s public servants,” added House Republican Caucus Leader Representative Mia Costello (R- Anchorage). “It’s built on long-term sustainability.”
As legislators debate the future of Alaska’s retirement system, both legislators and the public should take a closer look at the real costs and implications of returning to a fiscally irresponsible defined benefits pension plan—and to consider a smarter, more sustainable path forward in HB 107.