The debate over state retirement plan options continued in Fairbanks on Thursday. Legislators will consider a bill next session that would allow public employees, like teachers and fire fighters to choose between the current 401k type retirement account and a traditional pension. The Senate State Affairs Committee held a hearing on the bill in Fairbanks on Friday.
CORRECTION: Last Friday we reported on a bill in the state legislature which would offer public employees a defined benefits retirement plan option. The story gave actuarial cost estimates in thousands of dollars which should have been in millions of dollars. The estimated cost of bringing in existing employees who opt for defined benefits is 124 million dollars. The annual cost of the program after that is anticipated to escalate from 20 million dollars in FY 15, to 66 million in FY 19.
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