This Week in Pensions: May 8, 2026

Posted by

on

Oklahoma public employees and retirees spoke up—and lawmakers listened.

After proposals threatened to skip or redirect payments to TRS and other public retirement systems, advocates urged lawmakers to protect pension funding. 

The result? Oklahoma protected dedicated TRS funding, funded COLAs for retired public employees, and delivered a major win for retirement security.

Read our full recap here.

Alaska Public Pension Bill Heads to Governor’s Desk

After years of advocacy by public employees, unions, and lawmakers, Alaska is closer than ever to restoring a defined-benefit pension option for teachers, public safety officers, and other public employees.

House Bill 78 has been transmitted to Governor Mike Dunleavy after passing both chambers of the Alaska Legislature. It marks the first time since Alaska closed its pension plans in 2006 that a public pension bill has cleared the House and Senate.

The bill would allow current employees and new hires to choose between the existing 401(k)-style defined contribution plan and a new defined benefit pension plan. Supporters say the measure is urgently needed to address Alaska’s long-running recruitment and retention crisis.

Sen. Cathy Giessel connected the bill directly to that crisis.

“Every other state offers a pension for at least some of their public servants. We do not, and we are seeing the results,” Giessel said.

The stakes are especially clear in education. In an Anchorage Daily News opinion piece, Deanna Beck and Arthur Sosa, elementary principals in Anchorage, described the classroom door as “a revolving one” for Anchorage educators, underscoring how turnover disrupts schools, students, and communities.

Sen. Bill Wielechowski described HB 78 as an investment in Alaska’s workforce and future.

“Let’s stop being a stepping stone. Let’s be a home.”

The bill includes safeguards to manage risk and prevent future unfunded liabilities, such as adjustable contribution rates and shared-risk provisions. Governor Dunleavy will now decide whether to sign or veto the bill, but its passage through both chambers marks a major milestone for Alaska public employees and the movement to restore secure retirement benefits.

Michigan Supreme Court Considers Fate of Bills Impacting Public Employees

In Michigan, the state Supreme Court heard arguments this week over whether House leaders must send nine bills to Governor Gretchen Whitmer after they were passed by both chambers of the Legislature.

The bills were approved by the House and Senate but remained under review when Republicans took control of the House in January 2025. Since then, they have stayed in the House clerk’s office under the direction of House Speaker Matt Hall.

The case has major implications for public employees. Among the stalled bills is a measure that would move corrections officers into the Michigan State Police pension system. 

Senate Democrats are asking the Supreme Court to enforce a lower court ruling requiring that the bills be sent to the governor for signature or veto. Their attorney, Mark Brewer, warned that allowing the House to withhold the bills would undermine the legislative process.

“If the House’s anti-majoritarian tactic is allowed to succeed, it will unilaterally and drastically change Michigan’s bicameral legislature, its separation of powers, our checks and balances, and the majoritarian principles which underlie everything we do in state and local government in this state,” Brewer told the court.

House Republican attorney Kyle Asher argued the Michigan Constitution gives legislative leaders discretion over presentment.

“Nothing in the constitution says who must present the bills, nothing in the constitution says every bill must be presented, nothing in the constitution says when a bill must be presented,” Asher said.

For public employees, the case is about more than legislative procedure. When bills affecting retirement, health care, and workplace protections pass both chambers, workers deserve a transparent process that allows those bills to move forward.

New York Budget Talks Stall Over Pension Reform Disputes

New York’s overdue state budget hit another roadblock this week as negotiations between lawmakers and Governor Kathy Hochul once again stalled.

Lawmakers appeared close to a breakthrough before talks unraveled Wednesday night, more than five weeks after the budget deadline. Legislative leaders said they had largely reached agreement on several major policy issues, including housing development, changes to climate laws, car insurance reforms, and immigration protections. However, unresolved disputes over New York City funding, pension reforms, and aid for upstate communities delayed final budget bills again.

The ongoing budget delay shows how pension policy remains a central issue in state fiscal debates. While details of the unresolved pension reforms are still tied up in negotiations, any changes to retirement benefits must be handled carefully and transparently.

Public employees keep New York’s schools, communities, transportation systems, and public services running. As lawmakers continue negotiations, they must ensure that any pension-related decisions protect retirement security, strengthen recruitment and retention, and honor the promises made to workers who dedicate their careers to public service.

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.