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 Highlights
State legislative sessions are in full swing! Stay informed with our latest blog, where we break down the key pension legislation we’re tracking across the country and the latest changes shaping retirement security. Read about it here!
In Alaska, AFSCME Members Rally and Go to Court Over State Worker Staffing Crisis
Public employees in Alaska are speaking out against the state staffing crisis. On Valentine’s Day, members of the Alaska State Employees Association (ASEA)/AFSCME Local 52 held a rally at the state Capitol.
ASEA members filed a lawsuit against Governor Mike Dunleavy for not releasing a salary study to the public, as required by state law. Alaska has a job vacancy rate of more than 16%. According to ASEA, many workers aren’t paid on time or correctly. This, and the lack of a defined benefit pension, has resulted in a public service crisis, as Alaskans go without vital government functions like the Marine Highway and prosecution of domestic violence cases–while in Fairbanks, there are no police patrols four hours a day.
ASEA sued in Superior Court on Feb. 11 to compel the Dunleavy administration to release the $1 million study to the public. ASEA accuses the administration of unlawfully manipulating the research and hiding the report.
To fix the staffing problems, the Alaska State Legislature set aside funds for a salary study in legislation the governor signed into law in 2023. A private contractor did the study by the summer 2024 deadline, but the public has not seen the results. Legislators are also working to solve the vacancy crisis by restoring a defined benefit pension for Alaska public employees, including those in ASEA.
According to ASEA’s lawsuit, the Dunleavy administration has rejected public records requests from ASEA and other groups seeking the study’s results.
Public Pension Funds Hit 5-Year High Funded Level
There is good news regarding public pensions in the uncertain economy. According to the annual NCPERS retirement study, public pension plans in America reached an average funding level of 83.1% in the first half of 2024.
This is excellent news as it further evidences the resilience and strength of defined-benefit pension plans, especially when they are well-managed with smart investments. It is also vital because the economic impact of these total funds is astronomical. According to the report, 201 public pension funds collectively manage $3 trillion in assets–larger than the GDP of all but five countries worldwide.
“This robust dataset tells a clear story of resilience and strength,” wrote Hank Kim, Executive Director and counsel at NCPERS, in the report. “In the span of 20 years, public pensions have endured two major economic crises. Yet with strong governance policies and efficient practices in place, pensions have shored up funding levels and improved their long-term fiscal health.”
Retirement Benefit Hikes Eyed for Some Oklahoma Retirees
- On Tuesday, a Senate panel in Oklahoma passed five bills to give some retirees a 2% cost-of-living adjustment. These bills will need to undergo an actuarial analysis, and then, in the following session, increases can be added to them.
Senate Bill 8, by Sen. Darrell Weaver, R-Moore, would increase benefits for Oklahoma Firefighters’ Pension and Retirement System members by 2%.
- Senate Bill 174, by Sen. Roland Pederson, R-Burlington, would provide a 2% cost of living adjustment for Teachers’ Retirement System members.
- Senate Bill 9, by Weaver, would provide a 2% increase in benefits to Oklahoma Law Enforcement Retirement System members.
- Senate Bill 90, by Sen. Avery Frix, R-Muskogee, would provide a 2% increase in benefits to Oklahoma Public Employees Retirement System members.
- Senate Bill 21, by Sen. Warren Hamilton, R-McCurtain, would provide a 2% increase in benefits to Oklahoma Police Pension and Retirement System members who have been retired for five or more years.
For an updated bill tracker on the legislation NPPC is following nationwide, go to publicpensions.org/resources/legislation-tracker/.
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.