A recent actuarial analysis presented to the Alaska House Finance Committee has renewed focus on legislation to restore a defined benefit pension for public employees, the analysis shows the plan could help retain workers despite a higher upfront price tag.
For years, efforts to reinstate pensions for state workers have faced a hurdle in Alaska law, which requires an actuarial review of any retirement legislation before it can advance to a floor vote. These reviews are often expensive and time-consuming, delaying legislative progress.
But advocates argue these studies are critical to ensuring any proposed pension system is fiscally sound.
This year, the state’s actuary delivered its report on House Bill 78 to lawmakers, outlining costs and potential long-term benefits of shifting from a defined contribution system similar to a 401(k), back to a traditional pension plan. The analysis found that defined benefit pensions provide more value to employees and improve workforce retention, which in turn raises overall payroll and long-term staffing stability.
“The actuary said That’s going to, almost single-handedly solve your retention problem.” Said Juneau Senator Jessie Kiehl.
The fiscal note for HB 78 estimates the pension plan would cost the state about $40 million in the first year, with expenses growing as more vacant state jobs are filled and employees remain longer.
But Kiehl says the predicted $76 million annual savings and increased revenues for public employers far outweighs the price tag up front.
“In the end, we save money. ” Kiehl said. “The state of Alaska is actually going to come out ahead, not only by having better trained, more effective public workers, but by having a more efficient government.”
Kiehl also specifically noted Juneau Police Department, who face poaching from Washington State Patrol, “when police officers at JPD have a pension, they don’t get poached by Washington State Patrol who come up here just about every summer, take our JPD officers to dinner and say, Hey, come on down. We’ll hire you, bring your experience and all the training the taxpayers of Juneau paid for, and by the way, you can earn a Washington state pension.”
The legislature is expected to take up the measure during the 2026 legislative session.