In 2005, Alaska closed its two statewide defined benefit pension plans for teachers and public employees. Since July 1, 2006, all new Alaska hires participate in a defined contribution plan rather than a pension plan. The retirement plan change has had the unintended consequence of creating workforce recruitment and retention challenges for public employers.
During the webinar, attendees heard from two Alaska policymakers about the workforce impacts of switching from pensions to defined contribution plans. Attendees also heard about a new report, Alaska Teacher Recruitment and Retention Study: Options and Analysis Supporting Retirement Plan Design.
This report, which was delivered to the Alaska Department of Education, reviews the impacts of various retirement benefit offerings on the recruitment and retention of Alaska’s public education employees. The research finds that switching Alaska’s public employees from pension plans to 401(k)-style defined contribution accounts resulted in increased turnover among new hires. The research comes as teacher shortages plague Alaska and communities across the country.
Webinar speakers included:
Dan Doonan, Executive Director, National Institute on Retirement Security
Cathy Giessel, Alaska State Senator, Majority Leader, Bipartisan Coalition
Chuck Kopp, Former Member of Alaska House of Representatives and Retired Alaska Police Officer