Alaskan Senators Propose DC Plans for Public Employees

March 15, 2005 (PLANSPONSOR.com) - Two Alaskan state senators have introduced a bill that would create defined contribution retirement plans for public employees, following the lead of other states such as California.

Republican Senators Bert Stedman and Lyda Green have introduced a bill that they hope would bring fiscal responsibility and stability to the state's public employees' pension system, according to the Alaskan Republican party.

"This is a multifaceted problem," said Stedman, according to the Alaskan GOP. "We have a five billion dollar unfunded liability, systemic problems that created it, and the need for predictability into the future."

The bill's main provision would be to create defined contribution accounts for state employees. In other states such as California, such propositions have been met with fierce resistance from the retirement system and participants (See CalPERS Board Opposes State Amendment to Eliminate State DB Pension System ).

Kip McDaniel
editors@plansponsor.com