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Senators say unfunded pension liability approaches $8 billion, debate how to proceed
Summary
Lawmakers discussed public pension reform and an unfunded liability they estimated at about $8,000,000,000, warned that cuts to benefits could harm recruitment and retention, and said several bills are moving that will need finance review.
Juneau — Senators pressed whether this session could produce durable pension fixes as they debated an unfunded liability they described as roughly $8 billion.
"There's been significant concern of the unfunded liability which is just for round numbers, dollars 8,000,000,000," Senator Stedman said. Speakers cautioned that simply shortening the liability's schedule could extend its life and that proposals reducing benefits would face political resistance. Several bills related to pensions are under consideration in the Legislature.
Senators discussed the Supplemental Benefit System (SBS) and Social Security options for teachers and other state employees, with one speaker noting examples of large individual accounts and saying moving plans could cost the state an estimated $50–70 million to fund the employer side of Social Security coverage in some cases. "Average teacher, 600,000,000 or $600,000 to $700,000 when they retire," one senator said when describing typical account figures.
What happens next: pension legislation is expected to be considered early in the session in committees including Labor & Commerce and Finance; senators said the measures will require detailed analysis of recruitment and retention impacts and long‑term cost projections.
