U.S. Senate to vote on bill that would boost Social Security benefits for thousands of Alaskans

The U.S. Senate is set to vote this week on a bill that could increase Social Security benefits for thousands of Alaskans.

The bill sailed through the House last month, and Senate Majority Leader Chuck Schumer, D-N.Y., said late last week that he would bring the bill to a vote before the Senate recesses at the end of the week.

The measure would reverse what is called the Social Security Windfall Elimination Provision and the Government Pension Offset Provision. The provisions, in place for more than four decades, have meant that many Alaskans who have worked both in the state’s public sector — including as teachers and public safety officers — and in jobs outside of Alaska’s public sector, could see their Social Security benefits increase.

Many Alaskans who are eligible for the state’s public retirement benefits are not eligible for Social Security. Under existing federal law, that means that if they worked in Social Security-eligible jobs before or after working in Alaska’s public sector, they could have their benefits reduced by thousands of dollars a year, even if they spent decades paying into Social Security.

The provision affects public sector workers in several states, but the impact is felt acutely in Alaska, according to several public officials. That is because a large number of Alaska households include individuals who have worked in the state’s public sector, and Alaska’s existing public retirement benefits leave many public employees with insufficient savings for retirement.

The existing federal law is meant to prevent public employees from double-dipping by receiving both Social Security benefits and state pensions. But in the case of many Alaska workers, a shift in the state’s retirement structure in 2006 left many Alaskans without guaranteed income in retirement.

Schumer signaled that the bill, which is projected to cost $190 billion over a decade, could receive wide support among Democrats but would need support from more than a dozen Republicans to pass.

Alaska Republican U.S. Sen. Lisa Murkowski, who co-sponsored the bill, said she would urge her colleagues to join her in voting for it. The measure would “ensure that those who have dedicated their lives to serving Alaska do not face unfair penalties in retirement,” she said in a social media post last week.

But Alaska’s other Republican U.S. Sen. Dan Sullivan has not said publicly how he would vote on the measure. Questions about Sullivan’s position on the bill went unanswered. Spokesperson Amanda Coyne instead shared a statement prepared last month, indicating Sullivan favored a more tailored response from the Social Security Administration “to find an Alaska solution for Alaskan public servants.”

Sullivan “long fought to eliminate the reduction in Social Security Benefits for Alaska workers who qualify for retirement benefits for certain programs, such as Alaska’s PERS and TRS,” Coyne wrote.

The acronyms stand for Public Employees’ Retirement System and Teachers’ Retirement System — Alaska’s two public retirement programs, both of which since 2006 have offered Alaska’s public sector workers a 401(k)-style investment account which does not guarantee any specific income in retirement. A recent review by state officials found most public employees covered through the post-2006 plans are not on track to have enough savings for retirement.

Opponents of the Social Security Fairness Act say that its passage could hasten the insolvency of the Social Security program. Already, the program is expected to run out of money in nine years without congressional action to address it. The bill in question could cause the fund to run dry six months sooner, according to the Committee for a Responsible Federal Budget.