Alaska bipartisan Senate majority aims to restore public pensions

Alaska’s bipartisan Senate majority has secured its third term, paving the way for a renewed push to restore a public pension system. The coalition, led by Anchorage Republican Sen. Cathy Giessel, announced its leadership team, which includes key figures who have supported the pension legislation that passed the Legislature last year but was vetoed by outgoing Gov. Mike Dunleavy.

New Leadership Structure

The coalition will see Giessel take over as Senate President, replacing retiring Sen. Gary Stevens, R-Kodiak. Leadership roles were filled with a focus on bipartisan cooperation, with Sen. Jesse Kiehl, D-Juneau, and Sen.-elect Bryce Edgmon, I-Dillingham, named co-chairs of the powerful Senate Finance Committee. Sen.-elect Louise Stutes, R-Kodiak, will serve as Majority Leader, and Sen. Bill Wielechowski, D-Anchorage, will be the chamber’s Rules Chair. In a prepared statement, Giessel said voters had sent a clear message. For the past four years, this coalition has shown that Alaska is best served when legislators work across party lines to pass responsible budgets and resolve issues that impact everyday Alaskans, she said.

Public Pensions as a Key Priority

The new configuration of leadership indicates that public pension legislation is likely to be a top item for the upcoming legislative session. Giessel was the sponsor of the pension legislation that cleared the Legislature last year, contending that the expenses for the new system are negligible compared to the value of retaining an experienced workforce. The coalition did not select Sen. Bert Stedman, R-Sitka, as co-chair of the Senate Finance Committee. Stedman, who long served as a key member of the bipartisan coalition, has been a steadfast opponent of reinstating a pension system for public employees.

Background on the Pension Debate

Although Alaska previously possessed an excellent retirement system that is acknowledged for drawing in and retaining workers, the state has encountered continuous and expensive employee turnover throughout the public sector ever since it shifted to a 401k-style plan twenty years ago. The proposal to reestablish the pension system achieved notable advances in recent years, such as passing the Legislature last year, but has met with regular and substantial resistance from Stedman due to perceived risk. Outgoing Republican Gov. Mike Dunleavy, whose term concludes on the first Monday in December, rejected the bill during an unprecedented streak of vetoes.

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