Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
NPPC News: There’s no question about who our valentines are.–Public workers, of course! We appreciate all they do to keep us safe, healthy, and thriving, so much so that we put together a video to show our appreciation.
Alaska House lawmakers begin hearings on high-priority pension bill.
Hearings began this week for a bill in Alaska that would return the state to a defined benefit pension system. House Majority Leader Chuck Kopp, R-Anchorage, presented House Bill 78 to the House Finance Committee.
In 2024, Senate Bill 88, a bill to reinstate state workers to a defined benefit pension system, passed the Senate but did not advance past the House. According to Rep. Kopp, HB 78 is similar to the previous legislation but significantly different from the state’s previous pension system.
In 2006, Alaska ended the pension system for state workers, including teachers, firefighters, and police officers, in favor of a 401(k)-style defined contribution plan. Ever since, the state has seen a worsening retirement, hiring, and retention crisis.
Due to the challenges of living in Alaska, many workers will leave their positions once they have reached the five-year vesting period when they can cash out their employer’s contributions. They will often leave the state for other markets.
HB 78 would allow most workers to retire at age 60 or after 30 years of service. Public safety workers could retire at 50 with 25 years of service or at 55 with 20 years of service. Medical coverage would remain the same as it is now for those on the defined contribution plan.
The ongoing public service crisis in Alaska is a complex and delicate issue. Still, HB 78 can make real progress by offering a secure retirement and an excellent reason for workers to invest in a career and in their communities in Alaska.
Kentucky bill would make it easier for state employees to care for special needs children with pension funds.
A Senate bill in Kentucky would make it easier for state workers to provide financial security for special needs children. Senator Robin Webb filed Senate Bill 58 (SB 58) late in last year’s session and is starting to build a conversation around it. SB 58 would allow state workers to designate a beneficiary special needs trust that can be used for medical, dental, hygiene, and general upkeep.
Sen. Webb presented the bill to the Public Pension Oversight Board late in the 2024 session, but it failed to gain traction. She is hoping to pass the legislation during this year’s short session.
“It establishes the ability for a state employee to designate as a beneficiary a special needs trust. And I think, with the work that we’ve attempted to do in the general assembly in addressing special needs and those individuals, this would be a natural progression of taking care of those individuals and providing our state employees some peace of mind,” said Webb.
While the board previously expressed some skepticism, the 2025 legislative session in Kentucky still presents an opportunity for passage. Webb said several state employees had approached her to discuss this, wanting to see this change made.
Assemblyman Sauickie pushes for stronger pensions for injured and fallen first responders.
In New Jersey, Assemblyman Alex Sauickie is working to raise benefits for first responders injured or killed in the line of duty. Assembly Bill (A 1259) seeks to raise pensions for permanently disabled Police and Firemen’s Retirement System members from 66% to 100% of their final salary, adjusting to 80% at the mandatory retirement age.
An essential factor for Sauickie is the increase in survivor benefits in the bill, which increased from 70% to 75%. Income growth continues until age 65, which was absent from previous measures.
“There’s no question we need to support our first responders, but it’s unacceptable to leave their families out of the equation,” says Sauickie. “This makes sure that when tragedy strikes, the families of our heroes aren’t left struggling.”
Click here to view our Bill Tracker and stay informed on what legislation we are monitoring.
Be sure to check back next Friday for the latest news 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.