Alaska
Alaska lawmakers seek public sector pension reform over persistent opposition
Alaska House Majority Leader Chuck Kopp says that if all goes as planned, the House will vote next month on a new public pension.
A bill to reinstate a defined benefit system for Alaska’s public workers — after nearly two decades without one — “will be over in the Senate’s possession before the end of March,” Kopp said this week.
Alaska’s public employees — including teachers, peace officers, local government workers and all state workers — have been without a pension since 2006, when the state instead adopted a 401(k) style retirement plan in an effort to save money.
Unions and groups representing the state’s public employees say that the change has reduced Alaska’s retention of experienced workers.
“There is one constant theme, and that is high turnover, high vacancies, loss of institutional knowledge, loss of training dollars, and an inability to effectively deliver services because they’re constantly in a training mode,” Kopp, a South Anchorage Republican, told the House Finance Committee this month.
Kopp is working to advance legislation that was first passed by the Senate bipartisan majority more than a year ago. Last year’s Republican-led House majority refused to consider the bill, blocking its progress. But the change in House leadership this year has renewed hope that the measure could pass — despite persistent resistance from some Republican lawmakers.
Ketchikan Republican Rep. Jeremy Bynum, who previously managed the Ketchikan public utilities and served on the Ketchikan Borough Assembly, said that in his experience, retirement isn’t the driving factor in public-sector workers’ decisions to leave the state.
“There’s no doubt that retirement was part of the conversation about why somebody maybe took employment, why they might be leaving employment, but it wasn’t the primary factor. The biggest issues that drove employees where I was at away, was the cost of living in the community,” said Bynum. “It was the remoteness of being in Alaska.”
Opponents of the bill also cite its potential cost as a deterrent. They refer to the unfunded liability the state accrued before 2006, when bad actuarial information left the state with an underfunded retirement plan. The state is still paying off the liability. Though numerous measures were implemented to avoid similar situations moving forward, including requirements for additional actuarial analyses, the risk of future unfunded liabilities looms.
The exact price of the new proposed plan isn’t known — a full actuarial analysis is underway — but Kopp said he expects the annual cost to be less than what the state currently spends on recruitment and retention efforts to fill critical vacancies, which amounts to tens of millions of dollars per year.
The state has kept critical positions filled, including corrections officers and troopers, in large part by approving annual retention bonuses on top of employees’ regular pay. Still, turnover has led to increased costs for training and filling positions.
“The lost training dollars to the state eclipse the cost of what we are going to be proposing here,” Kopp told lawmakers in a House hearing.
Opposition to defined benefits proposals in Alaska has been shaped in large part by the advocacy of Americans for Prosperity — a national conservative group funded by the billionaire Koch family — which has for years recommended shrinking or eliminating public spending on pension plans across the country.
Americans for Prosperity-Alaska has launched an ad campaign claiming that the cost of the plan could force the state to implement a broad income or sales tax. Lawmakers have said no such taxes are under consideration this year.
Bethany Marcum, director of AFP-Alaska, previously worked for Gov. Mike Dunleavy when he was a state legislator. She said that “the expectation of savings to recruitment and retention is being greatly overestimated” and pointed to a recent analysis from the Reason Foundation that argued Alaska is “doing a better job at retaining public workers than most states.”
The Reason Foundation, which produces policy papers on retirement systems in various states, serves as AFP-Alaska’s “pension partner,” Marcum said — providing analysis to back the advocacy group’s campaigns.
Data recently compiled by the Reason Foundation showed that Alaska’s state employee turnover rate was lower than the national public sector average, but according to figures — provided to the writers by the Dunleavy administration — Alaska’s turnover rate rose rapidly between 2012 and 2022 — from 11.5% to 17.5%.
Ryan Frost, a researcher with the Reason Foundation, said it was possible that the sharp increase in Alaska’s turnover rate was due to the elimination of Alaska’s pre-2006 pension plan.
“That makes sense to me,” said Frost, who lives in Washington state. “I haven’t looked underneath the hood to see what the (defined benefit) turnover has looked like in Alaska.”
In 2012, 36% of Alaska’s state workers were not eligible for a pension. By 2022, that figure had gone up to 73%. Recent data from the state shows that only 37% of employees who are ineligible for a pension remain employed by the state more than six years.
Kopp called AFP-Alaska’s messaging “propaganda.”
“They have a right to argue for their interest, but they are very focused on supporting the present annuity financial services industry,” said Kopp.
Marcum said AFP-Alaska’s opposition to the defined benefit plan is driven “purely from a principled policy perspective.”
Fairbanks Republican Rep. Frank Tomaszewski proposed this year alternate retirement legislation modeled after 2023 recommendations from the Reason Foundation.
Tomaszewski’s bill would make the existing defined contribution plan more generous exclusively for public safety workers, who tend to have shorter careers. It would also expand access to the state’s Supplemental Benefit System, which is meant to replace Social Security income, and is not currently open to Alaska educators.
Tomaszewski said he favors a defined contribution plan because it allows beneficiaries to will their accrued retirement funds to their children. A defined benefit pension ensures that the beneficiary and their spouse continue to receive monthly retirement income for as long as they live, but once the beneficiary and their spouse die, funds cannot be transferred to their surviving descendants.
Tomaszewski said that he liked the idea of ensuring that children of public sector workers have access to an inheritance.
“That money is actually yours, in your account. You can take it with you, or you can will to your children,” he said.
In the Senate, Majority Leader Cathy Giessel, an Anchorage Republican, has already said she plans to take up the defined benefit bill once it is considered by the House.
The bipartisan majority in the Senate is expected to support the bill, but one of its members has remained opposed. Sen. Bert Stedman, a Sitka Republican, instead favors expansion of the Supplemental Benefit System.
“If we want to improve the teachers’ retirement, number one is they should be in SBS,” said Stedman.
By his calculation, allowing teachers to contribute to SBS would give them hundreds of thousands of dollars in additional retirement income.
Alaska is the only state that offers teachers neither a defined benefit pension, nor access to Social Security income.
The system requires both employees and employers — meaning school districts and local governments — to contribute 6.13% of participating employees’ salaries to the system. If the proposal were adopted, the cost to local employers would be in the tens of millions.
“We would have to increase the school districts’ funding to incorporate something like this,” said Tomaszewski.
In an effort to persuade reticent Republicans, proponents of the defined benefits plans repeatedly describe its lack of generosity. Unlike the pre-2006 system, employees’ retirement contributions could be raised in response to underfunding in the plan; employees would get a Health Savings Account instead of access to state-sponsored health insurance; and there would be no cost-of-living adjustment for retirees who choose to stay in Alaska.
“This is structurally so different that it’s barely recognizable. It would be like comparing a rotten apple on an old tree to a robust pear on a living tree. They’re both fruit, but it ends there,” Kopp told the House Finance Committee in a hearing for House Bill 78.
Still, Kopp said this “fiscally conservative” bill will be an improvement on the state’s current defined contribution system, which leaves most public sector workers ill-prepared for retirement and without any incentive to remain in the state beyond the initial five-year vesting period, according to an analysis conducted last year by the state’s retirement division.
“I’m actually glad that people recognize this bill is not generous,” said Kopp. “It’s almost incredible that our current system is so bad that our employee groups across the state uniformly support this bill as being better than what we have.”
Daily News reporter Sean Maguire contributed to this report.
Alaska
Off-duty Alaska Airlines pilot who tried to crash plane midflight in magic mushrooms trip dodges additional prison time
A former off-duty Alaska Airlines pilot who tried to crash a San Francisco-bound flight by shutting off the engines while on a sleepless bender fueled by psycahdelic mushrooms won’t serve any additional prison time, a federal judge ruled.
Joseph Emerson was sentenced Monday to time served and three years’ supervised release by US District Court Judge Amy Baggio in Portland, Oregon — dodging a year of prison time sought by federal prosecutors.
“Pilots are not perfect. They are human,” Baggio said. “They are people, and all people need help sometimes.”
Emerson was subdued by the flight crew aboard a Horizon flight from Everett, Washington to San Francisco on Oct. 22, 2023, after trying to cut the engines while riding off-duty in the cockpit.
He told police that he was grieving his friend and had taken psychedelic mushrooms two days earlier and hadn’t slept in over 40 hours when he tried to pull the hijinx on the flight with over 80 passengers on board.
Emerson recalled believing he was dreaming and tried to wake up by grabbing two red handles that could have activated the fire suppression system and cut fuel to the engines.
Had he been successful, he would have immediately cut off the flow of fuel to the engines.
The flight was diverted and landed in Portland after the harrowing ordeal.
His attorney, Ethan Levi, described Emerson’s actions as “a product of untreated alcohol use disorder.” The distressed pilot had been drinking and accepted mushrooms “because of his lower inhibitions.”
Emerson spent 46 days in jail and was released pending his trial in Dec. 2023, with the court ordering him to stay sober from drugs and alcohol, undergo mental health services, and stay away from aircraft.
He went to treatment after jail and has been sober since, Levi said.
Before he was sentenced, Emerson said he regretted the harm he caused.
“I’m not a victim. I am here as a direct result of my actions,” Emerson told the court. “I can tell you that this very tragic event has forced me to grow as an individual.”
His wife, Sarah Stretch, also told the courtroom that she was proud of how her husband had grown since the incident.
“I am so sorry for those that it’s impacted as much as it has,” Stretch said.
One of the pilots aboard the Horizon Air flight, Alan Koziol, recalled not believing that Emerson had been trying to hurt anyone by reaching to cut the engines, and that he seemed “more like a trapped animal than a man in control of his faculties,” he recalled.
Kozial maintained that while pilots bear an “immense responsibility,” the aviation industry should allow pilots more freedom to seek mental health care.
Geoffrey Barrow, assistant US attorney in the district of Oregon, said Emerson’s actions were serious and that the crew “saved the day by intervening.”
“There were 84 people on that plane who could have lost their lives,” he said.
A passenger aboard the flight, Alison Snyder, told the courtroom over the phone that she and her husband will never feel safe flying again after Emerson pulled the near-catastrophic maneuver.
“Because of Joseph Emerson’s actions that day, we will never feel as safe flying as we once did,” she said.
Emerson pleaded guilty in September to all charges against him as part of an agreement with prosecutors.
He faced federal charges of interfering with a flight crew. A state indictment in Oregon separately charged him with 83 counts of endangering another person and one count of endangering an aircraft.
On the state level, he was sentenced to 50 days in jail, with credit for time served, and five years of probation.
The state court also ordered him to complete 664 hours of community service, half of which he can serve at his own pilot health nonprofit, “Clear Skies Ahead.”
He will additionally shell out $60,000 in restitution, mostly to Alaska Air Group, and abide by provisions on drugs, alcohol, mental health treatment, and avoiding aircraft, the state ordered.
With Post wires.
Alaska
KYUK is vital for villages in Western Alaska. Without federal funding, the station cuts staff
A small public TV and radio station in Western Alaska is a vital information source for dozens of villages damaged by the remnants of Typhoon Halong in October. But with federal funding eliminated, KYUK faces severe cuts to its staff and small news department.
NPR’s Jeff Brady reports.
This segment airs on November 17, 2025. Audio will be available after the broadcast.
Alaska
‘Punishing’: Alaska small-business owners consider next steps amid steep rises in health care costs
Thousands of Alaskans who purchase insurance through the Affordable Care Act marketplace will see their premiums skyrocket without the extension of subsidies that are set to expire at the end of the year.
The expiration of the enhanced premium tax credits could cripple small businesses in Alaska, some owners say, as they face premiums that in some cases will triple year over year, eating away at their ability to keep their businesses afloat.
“We’re working tooth and nail every day to make our way so we don’t have to rely on any help and assistance,” said Brie Loidolt, who owns a bookkeeping business in Anchorage and is facing an increase of hundreds of dollars per month in her premium costs.
Congress is “just punishing us for being small-business owners,” said Loidolt, who has weighed closing her business in response to the rise in health insurance costs.
Extension of the tax credits was a top priority for Senate Democrats during the longest government shutdown in U.S. history. But the shutdown ended Wednesday with no deal to extend the health care subsidies or provide any other measure to lower the cost of health care.
Congress now has until the end of the year to extend the credits — which were enacted in 2022 — or watch them expire.
Alaska’s U.S. Sen. Lisa Murkowski has said she supports the extension of the tax credits, at least in the short term, to avoid the projected sharp price increase. U.S. Sen. Dan Sullivan has also said he supports an extension of the subsidies. Alaska’s U.S. Rep. Nick Begich has not spoken in favor of their extension or responded to multiple interview requests on the subject.
The agreement to end the shutdown included a promise from the Senate majority leader to hold a vote on a proposal to extend the tax credits before the end of the year, but Alaskans are already being asked to make decisions about their 2026 coverage. For them, action from Congress can’t come soon enough.
“I need my government, specifically my congressional delegation, to speak for me concerning the levers of power in this country, and I feel absolutely abandoned,” said Mark Robokoff, who owns a pet supply shop in Anchorage and is staring down a more than 300% increase in the cost of insurance.
The impact of the elimination of the tax credits depends on the income, age and family size of the enrollee. Premium increases are greatest for Alaskans nearing retirement age who earn 401% of the poverty line or higher.
Of the roughly 25,000 Alaskans enrolled in plans purchased through the Affordable Care Act marketplace, many of those who will see the sharpest increase in insurance costs are owners of small businesses who say their contributions to the Alaska economy are on the line.
‘An entirely new calculus’
Robokoff said the monthly insurance premium for him and his partner is set to triple, going from $924 in 2025 to $2,886.
“This will pull the rug out from under me,” said Robokoff. “I thought I was doing the things that a society wants its members to do — create new businesses, create new jobs, improve the life of the surrounding community.”
Robokoff said that when he was younger, he went without insurance, but he now relies on medication that would cost thousands of dollars a month without insurance, so forgoing coverage is not an option.
Given the increase in the price of premiums, he said he will have to consider what changes to make in the business.
“It’s an entirely new calculus. Everything is going to have to be looked at, from the prices I pay for merchandise, the quality that I try to stock, the amount that I pay my employees to keep the best ones — every single aspect of the store is going to have to be re-examined,” he said.
Robokoff said his mindset so far has been a “fingers-crossed hope that Congress would not put us in this ridiculous situation.” He thought, “our situation is so drastic that the government can’t help but come to our aid.”
“That hope and surety is rapidly being stripped away,” he said, as lawmakers have repeatedly punted on an extension.
‘Cut us at the knees’
Loidolt, who owns an accounting firm that employs four people, said her insurance premiums are set to go up roughly $500 per month, or $6,000 for the year, without the subsidies.
She already pays $1,347 per month in premiums. Without the extension of the subsidies, she’ll be paying more per month for her health insurance than she spends on her mortgage.
“Who can afford to live when 30% of everything you bring in just pays for insurance and deductible?” Loidolt said.
Loidolt said she has tried to purchase a company plan for her business, but she learned that insurance companies largely don’t offer plans to companies in Alaska with fewer than five participating employees.
“So our hands are kind of tied there, too. It’s not like we have options and we’re choosing this more expensive option through the marketplace,” she said.
Loidolt recently suffered an accident that has left her with ongoing medical needs that would cost thousands of dollars a month without insurance. Going without insurance is not on the table, she said.
Given rising health care costs, Loidolt said she is considering shutting down her business, laying off her employees and ending the accounting services she provides to roughly 40 small businesses.
Loidolt said she thinks she could get a salaried job that comes with benefits, but closing her business would be “heartbreaking” and devastating for her clients.
“I feel like we’re part of the solution, and this is going to make us part of the problem,” she said. “We’re the people that are actually paying our bills every month. We’re not on assistance. We’re making it work, even with these ridiculous prices. We’re offering jobs with small companies. We’re offering competition to people so that the monopolies don’t take over. And they’re just going to cut us at the knees.”
[GOP plans to replace Obamacare have failed. Here’s what lawmakers propose now.]
‘It makes me want to throw up’
Nan Schleusner, a human resources consultant in Anchorage, said she and her husband — who are both sole proprietors — have relied on insurance purchased through the Affordable Care Act since the enhanced premium tax credits kicked in.
The tax credits made marketplace plans affordable for them for the first time, just as Schleusner and her husband were getting older and encountering more health concerns.
“Thank God” they got the insurance, Schleusner said, because in 2022, she was diagnosed with cancer.
“It was really wonderful when the enhanced premium tax credits took effect, because it helped with these extreme medical bills that we ended up having,” she said. “It was just that peace of mind, like, OK, it’s still a stretch — it’s not inexpensive — but we can do it.”
But now, Schleusner is facing $37,000 in annual premium payments and a $15,000 deductible for her family of three, for the cheapest plan on offer.
Schleusner said she is considering reaching out to some of the companies she consults for and asking to become their employee so she can join their insurance plan.
“I’ve been doing this 15 years, and I feel called to do it,” she said. “So I don’t want to give it up. It’s been some sleepless nights.”
Schleusner this year paid $1,380 per month for her family of three, or $16,560 in premiums for the year. To keep the same plan she currently has next year, she’d pay more than 300% of this year’s cost, with premiums totaling over $52,000 annually.
“It makes me want to throw up every time I look at it,” she said.
“There’s the affordability part, but there’s the ‘what on Earth is going on that this is costing $50,000 a year?’ That’s not a reasonable cost,” she said.
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