Throughout the legislative session, the Alaska Professional Fire Fighters Association (AKPFFA) fought to restore retirement security for Alaska’s public employees. As the only state that has closed its traditional defined-benefit pension system for new state employees, instead relying on a defined-contribution retirement plan since 2006, Republicans and Democrats in Juneau recognized that the current system is not only unsustainable but also actively hurting recruitment and retention efforts. House Bill (HB) 78 was the solution.
The bill would have reestablished a defined-benefit pension system for the state’s fire fighters, police officers, teachers, and other public employees. The bill passed both chambers of the Alaska Legislature and was sent to Governor Mike Dunleavy (R-AK). But instead of signing the historic bipartisan reform, the Governor chose to play politics.
In the final minutes before becoming law in Alaska, the governor vetoed this landmark legislation that, in a single action, could have made Alaska a better place to work and raise a family.
7th District Vice President Ricky Walsh
Multiple reports suggest that Dunleavy would allow HB 78 to become law only if lawmakers approved a tax break tied to a proposed trans-Alaska gas pipeline. When legislative leaders balked at the proposal, the governor vetoed the bill just one day before it was set to become law.
“In the final minutes before becoming law in Alaska, the governor vetoed this landmark legislation that, in a single action, could have made Alaska a better place to work and raise a family,” said 7th District Vice President Ricky Walsh. “The governor failed Alaska public employees as he leaves office, cementing his legacy of a ‘do-nothing’ governor.”
The pension issue and reform fight
In 2005, Alaska replaced its defined-benefit pension system with a 401(k)-style defined-contribution plan after an actuarial error significantly increased the state’s unfunded liabilities. Fire fighters and other supporters of HB 78 argue that this decision created a two-tiered retirement system that has contributed to chronic staffing shortages, as trained workers and younger talent leave for neighboring states offering stronger retirement benefits and long-term stability.
“Alaska’s fire fighters have spent 20 years watching trained professionals leave for states that offer defined-benefit pensions,” said AKPFFA President Dominic Lozano. “If Alaska wants to solve its public safety staffing crisis, it must address retirement security.”
For years, the AKPFFA and other labor advocates have spent countless hours at the state Capitol building in support of restoring retirement security for public workers. The legislation represented more than just retirement reform for Anchorage, AK Local 1264 President Justin Mack.
“The governor has chosen to maintain the status quo, but Alaska’s communities know that we need better. Departments across the state are struggling with staffing, burnout, and retaining experienced public servants,” he shared in a video post.
“This was about recruitment, retention, and recognizing the sacrifice made by the men and women who protect and serve our communities every day,” said Mack. “We have to decide whether we’re willing to do public service better, invest in the people who serve our communities, and create a future where the next generation can build a career and a life here at home.”
Departments across the state are struggling with staffing, burnout, and retaining experienced public servants. This was about recruitment, retention, and recognizing the sacrifice made by the men and women who protect and serve our communities every day.
Anchorage, AK Local 1264 President Justin Mack
Pushing forward
“We’re proud of how far this effort has come and proud of every fire fighter and public employee who stood up and made their voice heard. This administration’s decision does not end the conversation, and it does not end the fight,” said Mack.
Retirement security is also expected to be a major issue in the upcoming governor’s race as the union evaluates candidates for endorsement.
“Our next governor will be crucial to securing meaningful retirement reform, as will the makeup of the legislature,” said Lozano. “This is why it is so important to be involved in the political makeup of our communities throughout Alaska.”
“The leadership of the AKPFFA, the office of the 7th District Vice President, and General President Edward Kelly’s office used every resource available to pass HB 78, which would have provided our members with a dignified defined-benefit pension,” said Walsh. “The IAFF and AKPFFA will not give up and plan to take this up again next legislative session.”
