Representative Ky Holland
ADN Alaska Legislature nears passage of public pension reform after years of failed efforts Today’s article shares news about the progress of House Bill 78. Below are my thoughts on supporting the bill and plans to vote on adopting the changes made by the Senate, and sending the bill to the Governor. [Update – The House has concurred with the Senate changes and the bill is headed to the Governor.]
When I chose to run for the Alaska State House, I did so with a clear priority: to stand up for education and for the teachers who are the backbone of our schools. For more than a decade, Alaska held education funding flat, and our classrooms, educators, and students have felt the consequences. Supporting meaningful increases to the Base Student Allocation (BSA) was a central commitment I made to House District 9—and one I intend to keep.
But funding alone is not enough.
If we are serious about strengthening education in Alaska, we also have to address the long-term stability of the teaching profession. That means confronting a decision made 20 years ago: the move in 2006 from a defined benefit pension system to a defined contribution system for public employees, including our teachers.
That decision was driven in large part by a significant unfunded liability in the old system—caused by flawed actuarial assumptions and policy decisions at the time. The shift to a defined contribution model helped control that risk, but it also fundamentally changed what it means to commit to a career in public service in Alaska.
Today, virtually all American workers have access to a defined benefit plan through Social Security. Alaska’s public employees do not. Instead, for the last 20 years they rely primarily on individual retirement savings accounts tied to market performance. For some workers—particularly those who plan to work in Alaska for a shorter period—this system offers flexibility and portability. It has also worked reasonably well for many of the dedicated educators who come to Alaska on visas to teach for a period of time before returning home.
But for Alaskans—and for those who want to build a life and retire here—the absence of a defined benefit option creates real uncertainty. Not everyone is comfortable managing an investment-based retirement. And without a predictable foundation, it becomes harder to commit to a long-term career serving our communities, and easier to leave.
House Bill 78 addresses that gap.
The new plan includes strong safeguards—built from the lessons of the past—to prevent the kind of unfunded liability that burdened the state for years. Contribution rates and obligations are closely aligned, and there are mechanisms in place to ensure the system remains financially sound over time.
At its core, my support for House Bill 78 is grounded in a fiscally conservative principle: we must be smart, disciplined, and results-driven in how we spend public dollars. While this bill carries a fiscal note, it will save the state money over time and significantly improve the performance of our public services. Today, we are paying a high price for instability—through constant turnover, recruitment and retention bonuses, costly training cycles, and the loss of experienced workers. That is wasteful and needs to be cut. By creating a pathway for longer-term careers in public service, this bill reduces those hidden costs and delivers better value for every dollar we invest. In fact, the expected savings from improved retention and reduced churn are projected to be double costs. Choosing not to act carries its own unfunded liability—the ongoing, compounding expense of a system that is not working. House Bill 78 is the more responsible path forward: a practical investment in stability that reflects the kind of careful, effective stewardship Alaskans expect from their government, and cuts wasteful costs that add no value from high turnover.
I support House Bill 78 because it is both necessary and responsible. It strengthens our ability to recruit and retain the people we rely on—teachers, public safety officers, and other essential workers—while protecting the long-term fiscal health of the state.
And that matters. Alaska is facing a workforce challenge that affects everything from classrooms to public safety. High turnover, persistent vacancies, and the rising cost of recruitment and training are straining our systems. Supporters of pension reform have pointed out that the current retirement structure has contributed to these challenges, making it harder to build a stable, experienced workforce.
At the same time, I want to be clear: this bill is not a silver bullet.
The nature of work has changed over the past several decades. People are more mobile, and fewer workers stay in a single job or career for the long term. We also know that many of our public sector jobs have become more difficult—larger class sizes, ongoing uncertainty about funding, and increasing pressure on public services have made these roles more stressful and less predictable than they once were.
A defined benefit option will help—but it will not, on its own, solve these challenges.
If we want to truly rebuild a strong, stable public workforce, we must also create working environments where people feel supported, respected, and able to succeed. That includes consistent education funding, manageable workloads, and a broader commitment to valuing public service.
Still, House Bill 78 is an important step forward.
It reflects years of work by legislators, stakeholders, and community members who understand that we cannot continue with a system that is not meeting our needs. It offers a more balanced approach—one that recognizes both the importance of retirement security and the realities of today’s workforce.
This issue is personal for me as well. My wife, a longtime educator, experienced firsthand the transition between retirement systems and the impact it has on long-term security. Like many families across Alaska, we’ve had to navigate those uncertainties ourselves. That perspective reinforces my belief that we need better options moving forward.
As I prepare to vote in concurrence on House Bill 78, I do so with both optimism and realism. I believe this bill will make a meaningful difference, as physically responsible. I also know that more work lies ahead.
I am grateful to the people of House District 9 for sending me to Juneau to advocate for our schools and our public employees. Your voices have been central to this effort, and your priorities are reflected in this vote.
This is about more than a retirement system. It’s about whether we are willing to invest in the people who make Alaska work—and whether we are applying fiscally responsible tools to building a future defined by opportunity, stability, and strong communities.
I believe House Bill 78 moves us in that direction, and I am proud to support it.
— Representative Ky Holland