OPINION: Opposing defined-benefit pensions isn’t anti-public safety

Alaska is a land of opportunity and prosperity for those of us who love to live in this beautiful state. As Americans for Prosperity-Alaska’s state director, it’s a joy to work every day toward the betterment of this great land. However, Alaska faces a massive economic danger, and it has become abundantly clear that some in Alaska’s Legislature aren’t considering our future fiscal responsibility and stability. In fact, some Alaskans are trying to turn the narrative around this situation on its head and make it seem to be about something else entirely. To be clear, the policy that is heavily impacting our state and the future of all residents is the cost of state-funded retirements and the alarming possibility of reinstating defined-benefit pension plans for public employees in Alaska.

Proponents of the proposed pension plans have attacked opponents as “anti-public safety” for raising concerns about the potential $9.6 billion that returning to a defined-benefit retirement plan could cost. However, opposing fiscally irresponsible legislation certainly does not mean we disregard public safety. Even law enforcement members oppose this defined-benefit reform. Our position is about responsible fiscal stewardship, which has no correlation to support of public safety.

AFP-AK has been an established force in the state for 10 years. We absolutely support public safety and law enforcement as an important component of government for protecting individual rights, freedom and private property. Members of law enforcement and their families who volunteer with us in our grassroots work tell us that the current defined contribution retirement system gives them greater flexibility, security and control over their retirement.

AFP-AK respects and appreciates all dedicated public servants. From law enforcement officials and firefighters to teachers and vital public sector employees, Alaskans deeply value and appreciate the men and women who serve in these roles. Our opposition to defined-benefit retirement plans is not a critique of those hardworking individuals, but a stance on ensuring the long-term financial stability of the program and our state. In fact, incurring such enormous new liabilities could jeopardize our ability to keep Alaska safe and make it even safer in the future.

Nearly 20 years ago, Alaska leaders like Sen. Bert Stedman astutely recognized the significant strain defined-benefit plans placed on the state budget. They worked hard to find and implement a competitive yet fiscally smart solution. Fortunately, leaders in the 2024 Legislature conducted thorough due diligence and reached the same conclusion as AFP-AK: Any return to pension-style plans is ill-advised and financially unsustainable. Analysis from pension experts at Reason Foundation’s Pension Integrity Project highlights how pension proponents are relying on “overly optimistic” annual returns on investments of 7.25%. The national assumed average of return for public pensions is under 7%, with financial analysts expecting returns closer to 5%-6%.

As the policy debate continues around the best way to ensure our public employees have competitive retirement benefits, AFP-AK remains firm in our opposition to the proposed defined-benefit retirement pensions and steadfast in our support for public safety and those employees who keep us safe. We value our retired public servants just as we support every other vital member and industry of our Alaskan way of life. We must come together and choose the most fiscally responsible path forward for our state to prosper and create opportunity for all.

Bethany Marcum is the state director of Americans for Prosperity-Alaska.

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