AFP-Alaska Thanks Gov. Dunleavy for Veto of Costly Defined Benefit Pension Bill; Commends Legislators for Sustaining Veto

JUNEAU, AK – Americans for Prosperity-Alaska (AFP-Alaska) today thanked Governor Mike Dunleavy for vetoing legislation that would have reintroduced a costly, government-run defined benefit pension system, and praised members of the Alaska State Legislature who voted “no” on overriding the veto. 

Last week, AFP-Alaska urged the governor to veto the proposal, citing concerns that defined benefit systems historically lead to cost overruns, unfunded liabilities, and reduced budget flexibility for essential state services. 

AFP Regional Vice President David From issued the following statement: 

“Governor Dunleavy and the legislature made the right decision to protect Alaska taxpayers, present and future, from a return to an unsustainable pension system that would have exposed the state to billions in long-term liabilities. We are grateful for his leadership and commitment to fiscal responsibility. AFP appreciates the lawmakers who recognized that reopening a defined benefit system would have shifted significant financial risk onto taxpayers—risk Alaska simply cannot afford.” 

In 2005, Alaska transitioned from a Defined Benefit pension plan to a Defined Contribution plan, similar to a 401(k)-style retirement system. This change was made because the state had accrued a sizable amount of unfunded pension liabilities and could no longer afford the previous system. Today, the state still carries over $6.1 billion in unfunded liabilities from its previous DB system, ranking 13th highest in unfunded pension liabilities nationwide.   

The post AFP-Alaska Thanks Gov. Dunleavy for Veto of Costly Defined Benefit Pension Bill; Commends Legislators for Sustaining Veto appeared first on Americans for Prosperity.