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Senate leaders say pension change could cost less than turnover and help recruit state employees
Summary
Senator Giesel argued a proposed return to a pension plan would cost less than current employee churn and improve recruitment, citing state actuary figures and turnover costs.
Senate leaders identified recruitment and retention of public employees as a priority and discussed returning to a pension‑style retirement plan as a tool to attract and retain state workers.
Senator Giesel said the state faces “dramatic vacancies” in departments that provide permitting, licensing, transportation, public safety and other services. He characterized the current defined‑benefit liabilities as large and said proposals now under discussion are a more modest retirement plan.
Giesel summarized figures from the state actuary, saying a proposed pension change would have a cumulative cost of about $1,050,000,000 through 2039 but a present‑value cost of roughly $640,000,000. He added that the annualized cost would be about $46,000,000 a year and contrasted that with an estimated $76,000,000 annual cost to the state for turnover and churn.
Giesel said actuary projections assume higher retention and predicted that a secure retirement plan would lead employees to remain in their positions for career careers; he told the caucus, “The cost of doing nothing is costing us right now.” No bill text, language, committee referral or formal fiscal note was introduced at the briefing.
Caucus leaders said workforce and pension matters will be coordinated with committees that oversee recruitment and benefits. They framed the proposal as a recruitment tool and said further actuarial analysis and fiscal review will be required before any statutory change.
