Business groups, police and fire chiefs back SB 28 reinstating public employee defined‑benefit option, sponsors present sectional chart

Senator Kathy Giesel, sponsor of Senate Bill 28, presented the committee with a seven‑page sectional chart summarizing proposed provisions to reinstate a public‑employee defined‑benefit retirement option for multiple employee groups, including public safety, public employees (PERS) and teachers (TERS).

Giesel described the chart as a guidance document showing proposed contributions, vesting rules, benefit formulas, final average salary calculations, post‑retirement adjustments and separate accounting for subtrusts. "The chart guides you through the bill," she told the committee, noting the complexity and the need for a sectional format.

Keith Brainard, research director for the National Association of State Retirement Administrators (NASRA), testified that a well‑designed retirement plan can achieve stability for employers, employees and taxpayers. "If the Alaska legislature wishes to avoid unfunded liabilities and to ensure retirement plan cost remains stable, those objectives are reasonable and attainable," Brainard said, adding that plan design and cost‑sharing are critical to long‑term sustainability.

Anchorage Fire Chief Douglas Shrogy and Anchorage Police Chief Sean Case both urged support for SB 28 on recruiting and retention grounds. Chief Shrogy said the absence of a defined‑benefit pension for public safety harms retention: "We are the only state that lacks a defined benefit pension for public safety," he said, and described recruiting challenges and competition from Pacific‑Northwest departments offering signing bonuses and lateral transfers. He told the committee Anchorage has paid more than $100,000 to train paramedic students, and that at least one outside department offered a $50,000 signing bonus.

Chief Case, president of the Alaska Association of Chiefs of Police, said a defined‑benefit plan provides predictable retirement security, helps attract and retain officers, and promotes community stability. "SB 28 not only provides the long term benefits to our officers, but the entire state of Alaska," Case said.

Representatives of organized labor and school boards also testified in favor. Bill Mears of Public Employees Local 71 said employers and unions are struggling to retain staff under the current defined‑contribution environment and urged lawmakers to consider SB 28 to improve recruitment and retention. Lon Garrison, executive director of the Association of Alaska School Boards, said ASB has repeatedly supported reinstating a defined‑benefit option to help hire and keep qualified teachers and staff.

Committee members asked technical questions about benefit adjustments and funding mechanics. Senator Yount asked whether post‑retirement inflation protection could shift costs back to current employees during periods of high inflation; the sponsor responded the proposal contains specific adjustments and limitations, including a provision that a retiree who leaves Alaska would receive 50% of the inflation adjustment, but the committee did not adopt changes during the hearing.

Keith Brainard said he would analyze how the SB 28 plan design compares with other states' plans if the committee wanted a comparative cost/value analysis. The hearing featured no final votes on SB 28; the committee set the bill aside for future consideration.

The committee scheduled additional hearings on other bills the following Wednesday and adjourned at 2:39 p.m.