Welcome to the latest edition of This Week in Pensions! This week, we’ve gathered stories about the role pensions are playing in gubernatorial races across the country, clarification on a scandalous STRS Ohio study, and how Prop 1 in Wyoming could devastate state services.
New DB Plan for Alaska Only Supported by One Candidate
Among the four candidates vying to be Alaska’s next governor, only one fully supports providing a new defined-benefit pension for state and public employees.
In the first of three “Debate for the State” broadcasts produced by Alaska Public Media, former state representative Jonathan Kreiss-Tompkins stood out as the sole candidate who supports bringing pensions back to Alaska after the 2015 closure of the previous system. When asked about his plans for recruiting and retaining educators, Kreiss-Tompkins said, “If I’m Governor, I will…give teachers a retirement so they have a future in the profession and are incentivized to stay in the classroom. Whereas right now, teachers are fleeing Alaska for states where they have a future.”
Later, he noted the actuarial model of HB 78, the bipartisan pension bill that passed the Legislature this year only to be vetoed by Governor Duneavy, saying, “I think we owe it to our teachers and other public employees, and I stand by my position as the pro-math candidate in the race.”
The remaining candidates, Bernadette Wilson, Dave Bronson, and Treg Taylor, all stood firm in their opposition to the measure. A recent survey by AARP determined that 68% of likely voters in Alaska favor restoring state pension benefits.
Ohio STRS Investment Report Under Fire
Ohio’s State Teachers Retirement System (STRS) has been plagued with allegations of fraud and questions about how it manages retirement money for teachers and other school employees in the most recent years, and now the Ohio Retirement Study Council (ORSC) and STRS are setting the record straight.
Released earlier this year, “Retirement at Risk: The Political Economy of Public Pension Governance” alleges possible fraud and misreporting by STRS leadership. Authored by Allen Mendenhall, a Senior Fellow at the Heritage Foundation, and Dan Sutter, a Charles G. Koch Professor of Economics at Troy University, the study raised concerns about investment returns and how the system manipulated those numbers to grant bonuses for STRS’s investment staff. However, the ORSC’s independent experts found problems with the study’s methods and data, noting that enough evidence did not support many of the report’s conclusions.
Steve Toole, Executive Director for STRS Ohio, spoke on the issue, saying, “The ORSC followed the facts wherever they led, and the facts are clear: the numbers do not lie. We will continue to address misinformation with facts, remain committed to transparency, and uphold the trust that Ohio’s educators place in us.”
Wisconsin’s Anti-Union Law’s Long-Term Impact on Elections
A 2011 state law that stripped unions of their bargaining rights is playing a major role in Wisconsin’s gubernatorial race this year.
Known as Act 10, the controversial measure split public employees into two groups: public safety–police and firefighters, who retained their collective bargaining rights, and general employees, who lost theirs. Since the law’s enactment, it has gone through several lawsuits and rulings in the state circuit courts, including a recently overturned 2024 ruling from a Dane County Circuit Court judge, who declared Act 10 unconstitutional. Following appeals, that lawsuit will now head to the Wisconsin Supreme Court.
Now, the two candidates for governor, Milwaukee County Executive David Crowley and Representative Tom Tiffany, are sparring over the potential repeal of Act 10. Tiffany, who voted in favor of Act 10 while serving in the state legislature, says backpedaling on the 2011 decision would place a higher tax burden on residents. Crowley, however, has called for a full repeal. The decision to repeal would rely on more than just the governor’s direction, though–it would require a labor-friendly caucus to take control of the state legislature.
Democratic leader Sen. Dianne Hesselbein touched on the Senate Democrats’ support for restoring collective bargaining rights, saying, “Collective bargaining works,” Hesselbein said. “It works for the state of Wisconsin. I’ve seen it work for (Dane County) and I’m really looking forward to seeing it work for the state of Wisconsin again.”
Wyoming Tax Cuts Pose a Financial Threat for Towns, Services
Wyoming residents will vote on a ballot initiative this year to determine if homeowners in the state will see their property taxes cut in half. Proposition 1, which could slash state revenues as much as $125 million per year, poses a significant threat to public services.
Proposition 1 is the result of a citizen-led grassroots effort to provide meaningful tax relief for Wyoming residents, but opponents of the measure argue the loss of revenue will be devastating for public institutions, including education.
Wyoming Education Association President Kimblery Amen pointed out that the state’s constitutional requirement to fully fund education will eat up a large portion of the state’s funds if Prop 1 passes, and other state services will go underfunded.
“Because the state has to fund public schools, a whole bunch of other services could be cut. Like road repairs, and fire and 911 services and libraries, and snow removal and weed and pest control, and things like that. Because none of those services are free.” Amen said. “Nobody really wants to pay a bunch of taxes, but if we want services, we have to pay for them one way or another. If we don’t pay for them in property taxes, they have to be paid for in another way or else we just won’t have them.”
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.