House committee advances pension bill intended to benefit Alaska police, firefighters

The Alaska House Committee on Community and Regional Affairs has approved a bill that would create a state pension program for police and firefighters.

The committee voted 4-2 on Thursday morning to advance the bill, House Bill 22, to the House State Affairs Committee, the second of four committees slated to hear the bill.

Assigning a bill to four committees usually kills it because the time needed for each committee to consider it means there isn’t enough time for the bill to advance to a floor vote.

The quick advance through the regional affairs committee changes that calculus slightly, and the Alaska Senate is considering separate legislation.

Rep. Andy Josephson, D-Anchorage and the bill’s sponsor, has said the House bill is critical to help departments recruit and retain employees.

Rep. CJ McCormick, D-Bethel and chair of the committee, said he agrees with that assessment. A first-term lawmaker, he previously served in Bethel’s city government and is familiar with hiring struggles there.

“I think this is something that needs to be addressed as fast as possible. The more this kind of languishes, the more my community suffers,” McCormick said.

The bill has a long history in the Legislature and is strongly supported by police and firefighters, but some legislators have expressed concerns about the long-term costs.

A multibillion-dollar misestimate by state-contracted actuaries helped create a funding gap that encouraged the Alaska Legislature to end its pension program for new state employees in 2006 in favor of a 401k-style retirement program in which the benefits aren’t guaranteed.

Police and fire officials, however, have said that the portability of that retirement benefit allows workers to be trained here, then easily leave in favor of jobs with pensions in the Lower 48. Because the cost of training a new employee is greater than the cost of the pension program, they have supported the bill.

Rep. Kevin McCabe, R-Big Lake, said he doubts that police and fire agencies are telling the truth, calling their estimates “fake numbers.” He also said he would have liked to hear more testimony from city and borough officials.

McCabe voted against advancing the bill, as did Rep. Tom McKay, R-Anchorage.

Rep. Josiah Patkotak, I-Utqiagvik, was absent from the vote.

Josephson said he was encouraged by the fact that two members of the House’s majority coalition — McCormick and Rep. Justin Ruffridge, R-Soldotna — voted in favor of the bill, but he also said he expects slower progress in the state affairs committee.

The chair of that committee, Rep. Laddie Shaw, R-Anchorage, said he isn’t sure when he’ll hear the bill.

“I’ve got 14 bills coming out of state affairs, so I’m not sure where it will end up, but I’ll definitely get to it,” he said.