Senate weighs increasing contributions to retirement plans

A co-chair of the Senate Finance Committee is looking at whether bills that would increase local contributions for two state retirement plans are needed this session given new actuarial estimates.

Sen. Anna MacKinnon, R- Anchorage on the floor of the Senate during debate about the state operating budget, March 14, 2016. (Photo by Skip Gray, 360 North)
Sen. Anna MacKinnon, R- Anchorage on the floor of the Senate during debate about the state operating budget, March 14, 2016. (Photo by Skip Gray, 360 North)

Sen. Anna MacKinnon says the initial indications are there’s a significant drop in the state liability. If that’s the case, she says there may not be a need to move the bills forward.

The committee last week introduced bills aimed at further reducing state costs that would increase local contributions to the public employees’ and teachers’ retirement systems.

Legislative Finance Division Director David Teal says an actuary provided numbers but he’s not clear on the reasons behind them. He says the estimated state contribution for both goes down in fiscal year 2018 though by different percentages.