A state of Alaska defined-benefit pension plan for first responders, HB 55, is a bad idea and should be rejected. More than 50 years of financial and business experience in Alaska leads me to the conclusion that the state has no business managing a defined benefit plan.
The Legislature has already demonstrated that politics and financial management don’t mix well. The old Public Employee Retirement System plan is still underfunded, drilling credits are unpaid, and a sustainable financial plan for the state could not be achieved, even as all savings were exhausted during the past few years. These are not the people who should be responsible for deciding on funding retirement plans or Permanent Fund dividends.
Paul Jenkins’ well-written column (ADN, May 8) on the subject was right on point. Pay higher salaries to attract more candidates. A 401(k) plan has many advantages to the employees as well as employers. First responders are certainly capable of making their own decisions on retirement savings, if they are adequately paid.
— Steve Hartung
Anchorage
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