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Bill offering state workers choice of retirement systems clears committee

  • Author:
  • Updated: May 31, 2016
  • Published April 13, 2012

As the Legislature headed toward a Sunday adjournment, a bill that would offer state workers a choice of retirement systems cleared the Senate Finance Committee on Friday, according to KTOO.

Since July of 2006, workers have been in the state's Public Employee Retirement System, a 401(k)-style retirement account. It replaced a traditional pension plan.

Senate Bill 121 sponsored by Sen. Dennis Egan of Juneau would allow state employees to choose either plan. Bert Stedman, co-chair of the committee, recommended the bill be amended. Fellow co-chair Lyman Hoffman had no recommendation.

The current PERS system leaves retirement planning to workers and has led to more turnover, according to unions. However, the Parnell administration is against the bill because it says any defined benefit program hurts the state's finances.

If the bill passes the Senate, it would have to get through the House quickly before adjournment.