In a Forbes column, NIRS Executive Director Dan Doonan outlines what Alaskans could expect if the state were to move forward with a return to pensions for its public workforce.
Currently. Alaska is an outlier state when it comes to retirement benefits, offering only 401(k)-style defined contribution (DC) benefits to its workers. Alaskans who deliver essential public services lack a defined benefit (DB) pension plan, and teachers do not even participate in Social Security. Not only are these workers at an extreme financial security disadvantage, but the state also faces a highly problematic shortage of public workers – including teachers and public safety employees.
Pensions Support a Stable, Experienced Public-Sector Workforce
Public pensions help government employers retain experienced career workers, reducing costly turnover and supporting the reliable delivery of essential public services, according to a report, Workforce Turnover and Retention in the Public Sector: Insights from Public Pension Plans. The research finds that while employee departures are concentrated in the first five years of service, retention is strong among workers who remain beyond that point.
80% of Americans Say U.S. Faces Retirement Crisis Amid Affordability Pressures and Debt
National polling research from the National Institute on Retirement Security finds that 80 percent of Americans believe the nation faces a retirement crisis, as rising costs, debt, and other affordability pressures make it harder to save. The survey also finds widespread caution about AI-generated financial advice and cryptocurrency in workplace retirement plans, while 85 percent say Washington should make retirement security a higher national priority.
