A Report From The Last Frontier, Part III

When it comes to retirement benefits for public sector workers, Alaska is an outlier state offering only 401(k)-style defined contribution (DC) benefits to its workers. Alaskans who deliver essential public services lack a defined benefit (DB) pension plan, and teachers do not even participate in Social Security. Not only are these workers at an extreme financial security disadvantage, but the state also faces a highly problematic shortage of public workers – including teachers and public safety employees.

Now, Alaska stands at a crossroads. Known for their pioneering spirit, Alaskans now are contemplating a return to pensions for their public workers to help address the workforce crisis. If Alaska were to move forward with a return to pensions, here’s what the state could expect.