House Bill 78 exposes Alaska to significant additional costs

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House Bill 78 exposes Alaska to significant additional costs

Alaska House Bill 78 would reopen the defined benefit (DB) pension systems for new hires and allow all teachers and public workers currently in the defined contribution (DCR) retirement plan to use their DC account balances to purchase past service in the DB pension plan. This “past service” purchase mechanism puts an enormous amount of risk on the state in year one and beyond. Despite adjustments to retirement eligibility, this move could reali…