Today (May 12th, 2025), the House Democrat Majority pushed through House Bill 78, a sweeping and financially risky overhaul of Alaska’s public employee retirement system. Despite clear warnings from fiscal experts and economists, the bill passed along caucus lines, without the support of the Alaska House Republican Caucus.
HB 78 reopens Alaska’s closed defined benefit (DB) pension tier, a system that was shut down in 2006 due to skyrocketing costs and more than $7.5 billion in unfunded liabilities. Under the bill, current employees in the defined contribution (DC) system would be allowed to buy into the DB tier, committing the state to decades of future financial obligations without any guarantee that it can afford them.
Independent analysis from the Reason Foundation projects HB 78 could saddle the state with $11.4 billion in additional liabilities, and that’s assuming the pension funds hit investment returns far above what they’ve historically earned. The actual average return for Alaska’s pension funds since 2001 is just 5.8%, far below the 7.25% target this bill relies on. If those returns fall short, the state will be left holding the bag.
Critically, there is no evidence that defined benefit pensions improve recruitment or retention. Alaska’s turnover rate for teachers and public employees is already lower than in many states with DB systems, including Texas and Utah. Meanwhile, a 2021 survey commissioned by the state showed that retirement plans ranked far below pay, workload, and student behavior as reasons employees leave.
House Republicans fought hard to inject fiscal reality into this debate. Unfortunately, the Democrat Majority chose to ignore it. If HB 78 were to become law, the state would face a renewed wave of pension debt just as we are still paying off the last one.
Alaskans deserve smart, sustainable retirement policy, not nostalgic gimmicks that risk bankrupting our future.
Alaska House Republicans
Juneau, AK
Supporting the Alaska Native Vietnam Era Veterans Land Allotment Extension Act
AFN expresses strong support for bill H.R. 410, the “Alaska Native Vietnam Era Veterans Land Allotment Extension Act of 2025.” This legislation is crucial for recognizing the sacrifices made by our veterans during the Vietnam Era. It provides an opportunity to rectify historical injustices and ensures that Alaska Native veterans can secure their rightful land allotments.
We thank Rep. Begich for championing this important issue and appreciate the opportunity for our AFN veterans committee member, Nelson Angapak, to testify at the legislative hearing. Mr. Angapak served as AFN’s Vice President, retiring in 2013. This legislation is not just about land; it’s about honoring the commitment and service of our veterans and their families. We urge all members of Congress to support this act to ensure justice and recognition for our brave veterans.
Alaska Federation of Natives
Anchorage, AK
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