Austerman: Talks Under Way On Pension Issue

A co-chair of the House Finance Committee says he and fellow majority members are discussing possible options for addressing the state’s pension obligation.

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Representative Alan Austerman, a Republican from Kodiak, says “everything” is on the table, including possible contribution increases by municipalities, a proposal from Governor Sean Parnell and extending the time horizon for payments.

Austerman could not say when a firm proposal might be put forth. The session is scheduled to end April 20.

Parnell proposed taking $3 billion from savings and putting it toward addressing the state’s nearly $12 billion pension shortfall. Response to the idea has been mixed. Some lawmakers support a big cash infusion to help lower annual payments while others are wary of taking so much from savings.

Austerman says the Senate is having its own conversations.