Welcome to the latest edition of This Week in Pensions! We have gathered the top stories about pensions and retirement security from the previous week.
Alaska’s Teacher Turnover Continues to Rise—Fueling Calls for Stronger Retention Tools
A new report presented to the Alaska State Board of Education highlights a troubling trend: educators are leaving their jobs at increasing rates, with turnover rising sharply since the COVID-19 pandemic. According to data from the University of Alaska Anchorage’s Institute for Social and Economic Research (ISER), 28% of teachers and 35% of principals are now leaving their schools each year, with the situation even more dire in rural communities.
Turnover among rural principals reached an alarming 55% last year, compared to 21% in urban areas—a disruption that deeply affects school climate, long-term stability, and student outcomes. Researchers emphasized that leadership turnover is especially damaging, breaking down trust and continuity within school communities.
While the report did not pinpoint specific causes, it underscored well-known labor shortages in education—issues Alaska has grappled with for more than a decade. Importantly, teachers and advocates in Alaska have repeatedly identified the elimination of the state’s defined-benefit pension system as a major driver of the crisis. Without a guaranteed pension, early-career educators face fewer incentives to stay, particularly in remote communities where working conditions can be more challenging.
This new data strengthens the case for restoring a defined-benefit retirement option—an issue Alaska lawmakers have grappled with for years and one that continues gaining momentum through proposals like House Bill 78. With the average cost of replacing a single teacher exceeding $20,000, high turnover is not only destabilizing for school communities but financially unsustainable for districts.
Iowa Lawmakers Signal No Immediate Appetite for IPERS Changes
After months of speculation surrounding potential changes to the Iowa Public Employees Retirement System (IPERS), legislative leaders made their stance clearer this week: major alterations are off the table for now.
The discussion was sparked earlier this year when the governor’s DOGE task force floated the idea of offering new employees a 401(k)-style investment plan instead of a traditional pension—an idea that generated widespread concern among IPERS members and public-sector unions.
At this week’s Public Retirement Systems Committee meeting, Senator Tim Kraayenbrink addressed the speculation directly, saying the task force created “a lot of chatter” but clarifying that the group “is not a group that makes law.” When pressed on whether lawmakers might move forward with changes, Kraayenbrink responded: “Does that mean we’re going to do it? I mean, no. I don’t have the appetite to do it.”
Representative Charley Thomson echoed the sentiment, stating that any changes to IPERS would require “years of study… and buy-in by all sorts of stakeholders.”
Stakeholders took the opportunity to reaffirm the strength of Iowa’s pension system. Kris Rowley, vice chair of the IPERS Investment Board, highlighted the stability pensions provide: “401(k)s can be wonderful, but as you know, the market can go up and down… Pension plans are much more stable. This is a very well-funded pension plan.”
Currently, one in ten Iowans is a member of IPERS, and the system is consistently ranked among the top ten best-funded public pension plans in the country. For now, legislative leaders’ statements provide reassurance that this reliable retirement system remains secure heading into 2026.
Michigan House GOP Escalates Legal Battle Over Bills Affecting Public Employees’ Benefits
In Michigan, legislative Republicans have asked the state Supreme Court to intervene in an unprecedented dispute over whether bills passed in the previous legislative session must be transmitted to Governor Gretchen Whitmer for signature or veto. A lower court ruled that nine bills adopted last year must be sent to the governor—but the new House GOP majority is attempting to overturn that decision.
Among the bills at stake are measures that would expand pension and health-care benefits for key public employee groups, including placing corrections officers in the same pension system as the Michigan State Police.
Democratic leaders sharply criticized the appeal, noting that the legal standoff is delaying meaningful improvements for public employees. Senate Majority Leader Winnie Brinks called it “a distraction from the important work at hand,” emphasizing that Republicans are blocking bills that would help workers manage rising costs of living and secure a more stable retirement.
The Michigan Supreme Court is not required to hear the case, and if it declines, the Court of Appeals ruling stands—meaning the bills must be sent to Governor Whitmer. For now, thousands of public employees remain stuck in limbo, waiting for long-overdue retirement enhancements and benefits improvements. Be sure to check back next Friday for the latest in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.