The first hearing for HB30: Repealing the Defined Contribution Retirement Plan has been set for Wednesday, March 18 at 3:15pm in the House Labor and Commerce Committee.

Returning to a defined benefit plan has been one of my top legislative priorities.  Alaska, like any employer, should offer a retirement plan which provides for the security of their employees. By passing this bill, a policy decision will be made that provides the right tools to make Alaska a better employer for the people we ask to provide public services.

In a defined contribution plan, the employee bears the financial risk of outliving accumulated assets and risks poor investment returns. Half of all retirees will outlive the average life expectancy, in many cases by decades. Furthermore, the recent downturns in the stock market have impacted individual retirement accounts greater than the negative impact to the accumulated assets of defined benefit employees.

For more information on this legislation please see our sponsor statement and previous blog entries.