Filed Bill proposes changes to some educators' retirement plans

Senator Giessel introduced a bill to increase retention of teachers this legislative session. The bill outlines offering some teachers the choice between opting into a pension plan or a 401a retirement account.

In 2006, the state changed the retirement plan to where new hires didn’t have access to a pension plan. In its place, they had a 401a retirement account.

Justin LaCoss, president of the Matanuska-Susitna Education Association, said not offering new hires a pension plan decreased incentives to keep teaching in one place.

“Many of these folks, they always have one foot out the door. Because they don’t feel like the community values them enough to provide a pension and provide lifelong health care after their retirement years after they retire from public service,” he said, “So what onus do they have to commit to their community longer than the contract they signed from year to year?”

LaCoss hopes the bill, if passed, would offer the people who want it the stability to plant their roots in their community while continuing to offer the 401a for those who prefer it.

The bill will go to the Senate Labor and Commerce Committee on January 29th.