At the Alaska Professional Fire Fighters Association’s (AKPFFA) Legislative Conference in Juneau, Local 4303 Secretary Sadie Inman, a fire fighter-paramedic, is living her dream in the Last Frontier, a dream that began when she moved to Alaska for college.
“I’ve been with the fire department full time since 2021, but it feels like I just started,” said Inman, who just completed her paramedic training. “My biggest passion is medicine. I really enjoy learning about different disease processes, and that has inspired me to continue my education.”
But beneath her pride in her career and love for her new home lies a deep concern. “The reality is the state’s pension system is broken,” said Inman. “I’m left with a tough choice, stay in a state where my future is uncertain or leave for somewhere that offers a dignified retirement.”
Inman’s sentiment is shared by many of Alaska’s fire fighters and police particularly those who serve in high-stress jobs with few options for retirement security.
Alaska’s Pension Crisis
Alaska is the only state without a defined-benefit system for public safety members. In 2005, following a funding error in 2002, the state closed the defined-benefit pension system for its Public Employees Retirement System (PERS) and Teachers Retirement System (TRS) and switched from its original pension plan to a 401(k)-style plan.
Under the new system, employees contribute 8% of their pay, with employers adding 5% for PERS and 7% for TRS. However, this shift has led to high turnover, with some reports estimating workers leaving at a rate 4.5 to 4.7 times greater than before.
AKPFFA President Dominic Lozano says many are unable to build adequate retirement savings, with some leaving after just five years of service.
“Over the years of advocating for a return to a defined benefit, there are legislators who have recognized that there’s a problem,” said Lozano. “We’ve been able to convince key legislators to advocate for us, including House Majority Leader Chuck Kopp, who’s been a longtime supporter of returning to a defined benefit. He understands the role public safety plays in keeping Alaskans safe and knows we need to be properly compensated.”
The IAFF has supported the AKPFFA in this fight for nearly 20 years, including a $100,000 contribution from FIREPAC to a pension coalition dedicated to righting this wrong.
“Pensions guarantee that fire fighters and emergency medical workers have financial security in retirement,” said General President Edward Kelly. “That’s why, as a union, we will always work to protect our members and the dignified retirements they earned.”
Pensions guarantee that fire fighters and emergency medical workers have financial security in retirement. That’s why, as a union, we will always work to protect our members and the dignified retirements they earned.
general president edward kelly
7th District Vice President Ricky Walsh said the IAFF and district leadership are “standing tall and strong” with the AKPFFA.
“We are coming up on a full generation of fire fighters that should be planning their retirement and are unable to because of misguided policy wonks that believe the Heritage Foundation and other right-wing think tanks messaging that defined-benefit pensions are unsustainable. This is wholly untrue, as defined-benefit pensions rightfully funded are in great shape all across this country,” said Walsh. “It is time to treat these American workers fairly and justly by reinstating the defined-benefit pension they deserve.”
“Adequately funding pensions and safeguarding their long-term health is a key commitment to the hardworking men and women who dedicate their lives to serving the public,” Kelly added.
A Coalition for Change
In response to Alaska’s pension crisis, a coalition of labor union leaders and public employees, including the Alaska Professional Fire Fighters Association, Alaska NEA, and the Anchorage Police Department Employees Association, was formed to advocate for reinstating a defined-benefit pension system for fire fighters, teachers, police officers, and other public-sector workers.
National Public Pension Coalition Executive Director Kendal Killian pointed out that Alaska’s public employees have not contributed to or drawn from Social Security. Since 2006, those hired have relied on defined contribution accounts, which are vulnerable to market fluctuations.
“Fire fighters, who often retire between ages 55 and 60, must plan for over 30 years of retirement income. Unlike a defined benefit plan, which provides stable monthly payments, a defined contribution plan offers a lump sum that can diminish due to market downturns. A DB plan is more secure, risk-pooled, and professionally managed,” said Killian.
According to a report by Empower, a major 401(k) provider in Alaska, the median 401(k) balance for individuals in their 60s is $210,724. This amount is insufficient for a retirement lasting 20 years, especially when the recommended living wage for an adult in Anchorage is $49,246 per year. Someone relying solely on a 401(k) would likely outlive their retirement savings.
It is time to treat these American workers fairly and justly by reinstating the defined-benefit pension they deserve.
7th district vice president ricky walsh
“In a report by the State of Alaska, municipal public safety members were given just a 6% chance of achieving financial security at retirement with the current defined contribution system. Financial security was defined as 70% income replacement for 20 years,” said Lozano, adding that, in contrast, a pensioner in a DB system will receive a lifetime benefit and never run out of money.
The Personal Toll
Alaska’s public safety workforce has been losing experienced fire fighters, cops, teachers, and dispatchers, leaving younger, less experienced personnel to pick up the slack, forcing an alarming turnover rate.
“The lack of a defined benefit pension system in Alaska creates all kinds of challenges. The first one being a recruitment and retention crisis that we’ve seen across the state,” said Mack. “I hired on in 2011, and I think a third of the folks I hired on with are no longer serving with the department. They’ve gone on to different departments that do offer some level of retirement security.”
Local union members like Local 1264’s Matt Carlson are also feeling the weight of the issue. “We’re losing skilled employees. A lot of money is leaving our state for other states with a more dignified retirement,” Carlson said. “We could keep that experience in Alaska and capitalize on it. Instead, we’re losing it, and it’s hurting our ability to provide the service that our communities deserve.”
But the story of Alaska’s pension crisis isn’t just about the staffing numbers — it’s deeply personal for those on the front lines.
“I’m a husband to my beautiful wife, Sarah, a teacher affected by this issue, and a father to two lovely girls, ages six and nine. Parenting is hard, and sometimes it gets emotional when I think about the future. My wife and I want to provide our girls with the building blocks for adulthood, and if they stay in our community, we hope they’ll contribute to the local economy,” said Fairbanks, AK Local 1324 President Nick Clark. “But the reality is, we’re tired of seeing families leave. It’s about financial security, and Fairbanks is a great place to raise kids. It’s unique, and I want my family to have that opportunity, but if we can’t make this work, we’ve talked about leaving.”
But the reality is, we’re tired of seeing families leave. It’s about financial security, and Fairbanks is a great place to raise kids. It’s unique, and I want my family to have that opportunity, but if we can’t make this work, we’ve talked about leaving.
Fairbanks, AK Local 1324 President Nick Clark
Local 1264 member Stephenie Wolf, a lead dispatcher with the Anchorage Fire Department, shared how the lack of retirement security affects her future. “Believe it or not, I worked at a grocery store and got a pension from them. It’s one of the hardest jobs I’ve done, second only to this. I hired on to my current job in 2007 knowing there was no pension. Initially, it didn’t mean much, but now, as I’m getting older and closer to retirement, it means a lot. Right now, I have no idea where I’ll be when it’s time to retire,” said Wolf.
And like many others, she too is concerned about her colleagues being forced to choose between their love for Alaska and their financial future. “We’re the first people you contact when you need help. We don’t want to mess up the address. We want to make sure help gets sent,” she said. “We’re giving instructions that can affect the outcome. But when it’s time for us to retire, what will we have to show for it?”
For Inman, the uncertainty cuts deeper than just financial concerns. It’s about community, stability, and the future of her family. “We’re getting younger and younger people in my department. The amount of experience being lost in the state of Alaska is huge,” she said.
Sustaining Safe Staffing
For Alaska Fire Chiefs Association President Forrest Kuiper, the pension bill is crucial for the long-term sustainability of Alaska’s fire departments. Kuiper, who has been working in Alaska’s fire service for 27 years, said he’s seen the downfalls firsthand.
“From a fire chief perspective, this bill is all about retention and recruitment,” said Kuiper. “Firefighting is demanding both physically and mentally. For our younger fire fighters to not have an end goal, like a defined benefit pension, makes it very challenging for them to stay in the profession.”
In 2023, the turnover rate across state agencies averaged 17.3%. In 2012 when many employees still received a pension, it was only 11.5%. “Unlike a DB plan, a DC plan provides little incentive to stay and actually facilitates an employee’s departure. DB plans, on the other hand, are proven to retain public employees. Despite claims that younger workers will be attracted to savings-based plans, including cash balance and DC plans, the available retention data shows poor retention in the new plans or tiers,” said Killian.
Pension expenditures also help stimulate local economies. Killian pointed to a study by the National Institute on Retirement Security that found rural counties with more public pensioners see boosts to their small-town GDPs. “For every $1 in taxpayer contributions to Alaska’s previous pension plans, which are still paying out benefits to retirees, $3.31 in total economic output is produced,” he said. “Pension spending in Alaska supported 8,266 jobs in the last two years, but that economic pipeline is going to run dry when those beneficiaries die.”
Pension advocates also note that the higher turnover under the DC plan increases recruiting and training costs.
“It’s expensive to train fire fighters, and we’re losing them to other states that offer defined benefit pensions,” said Kuiper. “Legislation would help ensure that our fire departments have the resources to keep highly trained, experienced fire fighters in Alaska.”
This past winter, fire fighters in Juneau expressed concerns about staffing shortages while battling back-to-back residential fires. The shortages of fire fighters, police officers, teachers, and snowplow drivers are increasingly impacting Alaskan communities.
“The federal cuts to Alaska will only amplify the crisis, putting extra pressure on already worn-thin public safety workers as wildfire season approaches,” said Killian.
The Push for Legislation
As discussions intensify over the pension issue, House Bill 78 (H.B. 78), sponsored by the House Finance Committee, has emerged as a key solution. The bill would give certain public-sector employees the option to choose between a traditional defined benefit (DB) pension plan and the current defined contribution (DC) plan, providing a potential pathway to greater financial security in retirement.
At the same time, Senate Bill 28 (S.B. 28), introduced by Senator Cathy Giessel (R-Anchorage), mirrors the House bill and both bills are currently under consideration in the Alaska Legislature.
“This legislative session, we have two separate bills, one in the House and one in the Senate. The House bill is the result of years of work, and we didn’t reinvent the wheel. What we did was look at successful pension systems across the country and identify what made them work. This bill proposes a standard defined benefit pension plan with a 2.5 percent multiplier,” said Lozano. “However, to minimize risk, we’ve incorporated elements from successful state pension plans, such as legislation from Wisconsin, and added safeguards to protect the system and ensure its long-term stability.”
This legislative session, we have two separate bills, one in the House and one in the Senate. The House bill is the result of years of work, and we didn’t reinvent the wheel. What we did was look at successful pension systems across the country and identify what made them work.
alaska professional fire fighters association president dominic lozano
Kopp, a long-time advocate for public safety and retirement benefits, has been pushing for pension reform to ensure secure retirement options for Alaska’s public employees.
He spoke with IAFF members during the recent legislative conference, alongside several other state legislators, including House Minority Leader Mia Costello (R-Anchorage), Senate President Gary Stephens (R-Kodiak), and Rep. Andrew Josephson (D-Anchorage).
“It’s all going to come down to what it takes to get this door cracked open, pass the bill, and do so in a way that gives employees an option that will be with them for the rest of their lives,” said Kopp. “The pension system is a stair-step that gets you through time. You’ll never outlive your pension, and your spouse or significant other gets it when you’re gone.”
Regarding legislative gains, Kopp expressed optimism saying, “we have support for this bill in the House and Senate. It’s going to be close, but I think we can get there.”
Costello, who voiced concerns on returning to the previous pension system, acknowledged the current staffing issues in Alaska’s public safety. “It is no secret that I have concerns about the defined benefit pension, but I know that we have a problem with recruitment, and it’s very obvious that it’s happening in different professions,” she said during a meeting with IAFF members. “We’re seeing that it’s hard to recruit and retain. We’re trying to address it, and it’s been challenging, but I applaud you for continuing to work hard on it.”
But for IAFF leaders like Lozano, timing is crucial, as an entire generation of fire fighters faces what he calls pressing issues “like bad knees, aching backs, and rising workers’ comp claims.”
Anchorage, AK Local 1264 Vice President Justin Mack also addressed arguments citing “potential risks” of a defined benefit pension system, saying, “We face risks daily. Politicians claim to support public safety, but it’s time they provided us with a dignified retirement. The current system is broken, and experts agree. We have support in both chambers and hope the governor will sign the reform into law,” he said.
“I’ve been a fire fighter since 2009, and pension reform legislation is really important for my members,” said Clark. “They want to stay in Alaska, but without financial security in retirement, they have to decide between staying in Alaska or moving to another state where they can get a pension. They don’t want to leave, but they have to make the best decision for their future.”
A United Fight for Alaska’s Future
As the bills move through the legislative process, Alaska’s IAFF members, coalition members, and supporting legislators have a clear message: secure retirement benefits are essential for the future of Alaska’s fire service and the well-being of the state’s communities.
“Please pass the bill. Get it to the finish line,” said Clark. “Let’s put this chapter behind us and start working on the other things we need to make Alaska great.”
With lives and livelihoods on the line, one important question remains: Will Alaska state leaders move toward providing long-term security for those who answer the call?
“We need to pass this bill to ensure that we have the workforce we need to protect our communities. Without it, we risk losing the people who are committed to serving Alaska’s communities,” said Kuiper.
“We need people to show up and voice their support to the legislators. And it doesn’t just have to be our members. It can be their family members, people in the communities. If you’re a member of a community and you’re supportive of public safety, this is your opportunity to help advocate for those that are helping you,” said Lozano.
