After nearly two decades without a defined benefit pension system for public employees, Alaska is one step closer to reversing course. On May 12, 2025, the Alaska House of Representatives passed House Bill 78 —a historic move toward restoring secure retirement benefits for public servants across the state. The final vote was 21-19. The bill has now been transmitted to the Senate.
This victory follows months of growing momentum, public support, and determined advocacy from public employees, community leaders, and organizations like the Alaska Public Pension Coalition. HB 78, initially introduced by the House Finance Committee, aims to reestablish a defined benefit retirement system for new public employees—a system that would offer greater financial security and stability than the current defined contribution model.
A Broken System, a Growing Problem
Since Alaska closed its defined benefit system in 2006, public employees have faced increasing retirement insecurity. The defined contribution system that replaced it has not kept pace with workers’ needs or the realities of today’s economy. Employees in the current system bear all the investment risk, often lack sufficient retirement income, and are more likely to leave public service early, exacerbating recruitment and retention challenges throughout Alaska’s workforce.
That’s why HB 78 has been met with such enthusiasm from public employees and retirement experts alike. During a February hearing before the House Finance Committee, Dr. Teresa Ghilarducci, a noted retirement economist, testified that restoring pensions would not only improve worker retirement outcomes but also benefit the state’s economy and help stabilize the public workforce.
“You affect the morale of incoming employees,” Dr. Ghilarducci explained. “When they see that there is no path for them, that there isn’t an ecology of commitment signaled through the compensation, it’s a signal that you really want people to consider leaving after 5 years.”
Public Momentum, Despite Opposition
The passage of HB 78 marks a significant win for the Alaska Public Pension Coalition and other advocates who have worked tirelessly to promote the bill despite coordinated opposition from billionaire-funded, out-of-state groups like the Reason Foundation and Americans for Prosperity. These organizations have spent heavily on digital ads and lobbying efforts to halt progress—but Alaskans have made their priorities clear.
Public employees, from educators and first responders to state workers and healthcare providers, have spoken out in support of HB 78 at every step. They’ve rallied, testified, and written to lawmakers to demand the retirement security they deserve.
What Comes Next
HB 78 will now move to the Senate, where Senate Majority Leader Cathy Giessel has expressed support for the bill and has pledged to make it a priority in the sessions’s closing days.
The House passage of HB 78 is more than a legislative milestone—it’s a signal of growing recognition that Alaska’s public employees deserve better. They deserve a secure retirement after a lifetime of service. They deserve a pension system that values them and their work, stabilizes the workforce, and helps build stronger communities.
As always, NPPC will keep you updated on any new developments. In the meantime, be sure to sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox! Also, if you haven’t already, follow us on Facebook & Instagram.