Alaska
Passed by Senate, Social Security Fairness Act sets up speed trap for Alaska Democrats' defined benefits drivers
The Senate advanced legislation that will cost hundreds of billions of dollars by eliminating what is called the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). It’s a double-edged sword for Alaska unions and Democrats (and some Republicans) in the Alaska House and Senate.
Many public-sector workers’ Social Security payments are drastically reduced because of the WEP and GPO. If they get a pension or defined benefit, their Social Security payment gets a big haircut, although this financial penalty only impacts a portion of public sector retirees who meet certain requirements in terms of longevity of public service.
Sen. Lisa Murkowski has co-sponsored legislation repeatedly since she was appointed to the Senate to end the penalties that impact Alaska public workers more than any in the country. She celebrated the victory Friday, while highlighting the massive support from union leaders in Alaska:
“I have been working on the Social Security Fairness Act for as long as I’ve been representing Alaska in the United States Senate,” Murkowski said. “There is no doubt that Congress has taken too long to address this inequity, but I am grateful to the diligent bipartisan work of my colleagues to help us finally get this over the finish line. This legislation takes care of Alaskans who have dedicated years of service to our communities, serving in integral roles such as teachers, firefighters, and police officers. Hardworking public servants should not be denied the benefits that they paid for because of their career choices, and I’m relieved that this longstanding injustice has been remedied.”
Unintended consequence – defined benefits for state workers
The new law will invalidate one of the most often-repeated arguments that unions and Democrats in Alaska are making to return defined benefits to certain employees in the state. They have said that defined benefits are necessary because of the federal Windfall Elimination Provision and Government Pension Offset.
Defined benefits for state workers is expected to be front-and-center in the coming Alaska Legislature, which is controlled by Democrats and union-aligned Republicans.
In fact, many of the same people fighting for a return to state defined benefits in Alaska were quoted in Murkowski’s press release:
Joelle Hall, president of Alaska AFL-CIO: “The Alaska AFL-CIO and all of its affiliated unions are elated with the passage of the Social Security Fairness Act. The GPO/ WEP provisions have existed for far too long impacting the lives of thousands of Alaska workers and their heirs. Punishing public employees and their heirs for dedicating their lives to their community is wrong and we want to thank Senator Murkowski for her long-standing support for fixing this policy that has hurt so many families.”
Heidi Drygas, executive director of ASEA/AFSCME Local 52: “Today’s vote is incredibly welcome news to thousands of Alaska’s current and former public employees who have been unfairly punished simply for their public service. We thank Senator Murkowski for her leadership on this critically important issue for our membership. So many Alaska families will breathe easier tonight knowing they will receive the full retirement that they deserve. Thank you to the thousands of AFSCME employees and retirees for their decades of persistent advocacy on this issue.”
Sean Kuzakin, president of Public Safety Employees Association Local 803: “Alaska’s law enforcement personnel have worked too hard and put too much on the line in service of our communities to not receive their fully deserved Social Security benefits. I’m relieved that this long-standing injustice has been corrected and grateful to Senator Murkowski for her support for Alaska’s public safety employees.”
Dominic Lozano, president of Alaska Professional Fire Fighters: “Alaska’s firefighters applaud Senator Murkowski for standing up for public workers across Alaska,. For too long the federal government has been withholding portions of our social security benefits unfairly. Senator Murkowski understands the importance of this legislation and has been advocating for Alaskans since she started in the Senate. Retirees throughout Alaska know the importance of this legislation as well as future generations of Alaskans who will now receive their full social security benefit.”
Kathy Simpler, director of National Education Association-Alaska: “Passage of H.R. 82 is historic and will immediately make a positive difference in the lives of thousands of former military members, public servants and educators. We’re grateful that Senator Murkowski has been fighting alongside Alaska’s educators on this issue for her entire career in the US Senate.”
Paul McIntosh, president, National Active and Retired Employees Association:“More than 17,000 former public servants in Alaska, and over 2.8 million nationally, are unfairly penalized by WEP and GPO. With this Senate vote, backed by Senator Murkowski, we will finally receive the full benefits we earned through our hard work. The National Active and Retired Federal Employees Association (NARFE) will be forever grateful for Senator Murkowski’s leadership in the effort to repeal WEP and GPO, which NARFE has been advocating for 40 years.”
None of the Alaska union leaders mentioned that they will now drop their push for the costly defined benefits for State of Alaska employees, pensions that would impact city, borough, and school district employees across Alaska.
The State of Alaska still owes at least $6 billion to the former defined-benefit recipients who were enrolled in the program before it was discontinued in 2006 and replaced with a defined-contribution system, similar to what is found in the private sector.
More details
The WEP was enacted in 1983. It trims or drastically cuts Social Security benefits of workers who receive pensions from a federal, state, or local government for employment not covered by Social Security.
Alaska, a state that has a massive government workforce, has thousands of retirees impacted by the provision.
Likewise, the GPO, which was enacted in 1977, reduces Social Security benefits for spouses, widows, and widowers whose spouses receive pensions from a federal, state, or local government.
Together, these provisions reduce Social Security benefits for nearly 3 million American workers and retirees, Murkowski’s office said.
The bill had the support of all Democrats in the Senate, and 24 Republicans, including Murkowski, Sen. Dan Sullivan, and Vice President-elect Sen. JD Vance.
The bill now heads to the desk of President Joe Biden, who is expected to sign it. It will cost nearly $200 million over a decade and will increase the risk of Social Security being insolvent by the mid 2030s.
Most Alaskans, perhaps even most Americans, have a knee-jerk reaction to taxes. They affect citizens in a sensitive area — their pocketbook. Perhaps a little analysis and thought could change this normal negative reaction.
It is clear, even to the stingiest among us, that Anchorage and Alaska need more income. Our severely underfunded public schools, decreasing population — called “outmigration” these days — underfunded police force, deteriorating streets and highways, underfunded city and state park budgets, and on and on, are not going to fix themselves. We have to pay for it.
Public schools are the best example. Do you want your first grader in a classroom with 25-plus students or your intermediate composition student in a class with 35-plus students? What if the teacher needs four to five paragraphs per week per student from two such classes? Who suffers? The teacher and 70 students. It’s not rocket science — if you minimize taxes, you minimize services.
I was an English teacher in Anchorage and had students coming into my classroom at lunch for help. Why? They were ambitious. Far more students who wanted and needed help were too shy, too busy or less motivated. With smaller class sizes, those students would have gotten the help in class.
Some Alaskans resent paying taxes that help other people’s children. They often say, “But I don’t have any kids in school!” The same attitude is heard when folks say, “The streets in our neighborhood are fine.” Taxes are not designed to help specific taxpayers; they are, or should be, designed to help the entire community. And we are a community.
As well, lots of people get real excited by sales taxes, especially those who have enough income to buy lots of stuff. They argue that, on balance, sales taxes are unfair — they are regressive. That means that individuals with less income pay a higher percent of their income than individuals with a higher income, and this is true. It is minimized by exempting some expenses — medical care, groceries and the like.
A recent opinion piece published in the Anchorage Daily News explained the disadvantages of a regressive tax. In doing so, the author made an excellent argument for using a different kind of tax.
The solution is to use an income tax. With an income tax, the regulations of the tax can prevent it from being regressive by requiring higher tax rates as individual incomes increase. Alaska is one of only eight or nine states with no state income tax. For those folks all worked up about regressive sales taxes, this is the solution.
Any tax that most folks will accept depends on people seeing themselves as part of the same community. That’s not always obvious these days — but it doesn’t change the bottom line: We still have to pay our way.
Tom Nelson has lived in Anchorage more than 50 years. He is a retired school teacher, cross country ski coach, track coach, commercial fisherman and wilderness guide.
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Christmas presents may be arriving later than expected for many rural communities in Alaska. That’s after Alaska Air Cargo, Alaska Airlines’ cargo-specific carrier, placed an embargo on freight shipments to and from several hubs across the state. According to Alaska Airlines, the embargo began on Dec. 16 and will end on Dec. 21.
The embargo excludes Alaska Air Cargo’s GoldStreak shipping service, designed for smaller packages and parcels, as well as live animals.
Alaska Airlines spokesperson, Tim Thompson, cited “unexpected freighter maintenance and severe weather impacting operations” as causes for the embargo.
“This embargo enables us to prioritize moving existing freight already at Alaska Air Cargo facilities to these communities,” Thompson said in an email to KNOM. “Restrictions will be lifted once the current backlog has been cleared.”
Other carriers like Northern Air Cargo have rushed to fill the gap with the Christmas holiday just a week away. The Anchorage-based company’s Vice President of Cargo Operations, Gideon Garcia, said he’s noticed an uptick in package volume.
“It’s our peak season and we’re all very busy in the air cargo industry,” Garcia said. “We are serving our customers with daily flights to our scheduled locations across the state and trying to ensure the best possible holiday season for all of our customers.”
An Alaska Air Cargo freighter arrives in Nome, Dec. 18, 2025. It was the daily-scheduled flight’s first arrival in Nome in a week after maintenance issues plagued the Alaska Air Cargo fleet. Ben Townsend photo.
Garcia said the holiday season is a tough time for all cargo carriers, but especially those flying in Alaska.
“We operate in places that many air carriers in other parts of the country just sort of shake their head at in disbelief. But to us, it’s our everyday activity,” Garcia said. “The challenges we face with windstorms, with cold weather, make it operationally challenging.”
Mike Jones is an economist at the University of Alaska Anchorage. He said a recent raft of poor weather across the state only compounded problems for Alaska Air Cargo.
“I think we’ve seen significantly worse weather at this time of year, that is at one of the most poorly timed points in the season,” Jones said.
Jones said Alaska Air Cargo is likely prioritizing goods shipped through the U.S. Postal Service’s Alaska-specific Bypass Mail program during the embargo period. That includes palletized goods destined for grocery store shelves, but not holiday gifts purchased online at vendors like Amazon.
“When a major carrier puts an embargo like this it clearly signals that they’re having an extraordinarily difficult time clearing what is already there, and they’re trying to prioritize moving that before they take on anything new,” Jones said.
According to the U.S. Bureau of Transportation Statistics, Alaska Airlines was responsible for 38% of freight shipped to Nome in December 2024.
Alaska Air Cargo’s daily scheduled flight, AS7011, between Anchorage and Nome has only been flown four times in the month of December, according to flight data from FlightRadar24. An Alaska Air Cargo 737-800 freighter landed in Nome Thursday at 11:53 a.m., its first arrival in one week. Friday’s scheduled flight has been cancelled.
Alaska Airlines is adding a daily flight between Bellingham International Airport and Portland International Airport starting next spring, the airline announced Dec. 18.
The flights will begin March 18, 2026 and will be offered during the year on the E175 jets. The announcement is part of a slew of expanded routes Alaska will begin offering in the new year across the Pacific Northwest, Wyoming and Boston.
“Anchorage and Portland are essential airports to our guests and us in our growing global network,” Kristen Amrine, vice president of revenue management and network planning for Alaska, said in the announcement. “Portland is not only a great city to visit, but we also offer convenient nonstop connections for those continuing their travel across our wide network.”
The Portland route is the first time in years the Bellingham airport has offered a flight outside of Seattle or its typical routes in California, Nevada and Arizona. In the last 10 years, Alaska and Allegiant Air ceased non-stop flights to Portland, Hawaii and Las Vegas.
Matthew Rodriguez, the aviation director for the Port of Bellingham, said Thursday his team is excited for the expanded route. The route will also allow Alaska to start data gathering to see if there’s market demand for more direct flights out of Bellingham.
The airline will be able to examine how many people from Bellingham are flying into Portland and then connecting to other flights, including popular destinations like Hawaii and San Diego.
“It’s going to help our community justify a direct flight, which, in my opinion, we have a data that already supports the direct flights, and we already had an incumbent carrier doing those direct flights,” he said. “So I don’t think it’s going to take very much additional data for Alaska to acknowledge that.”
Guests can already start booking the hour-long flight to Oregon on the Alaska Air website or app.
Intrepid airport enthusiasts have also noted Alaska is phasing out one of its nonstop flights between Bellingham and Seattle in early January.
In a statement, Alaska said the “flight adjustments are about putting more connecting flights from Bellingham through Portland to decrease some of the strain in Seattle.”
The phase-out allows for the Portland route to be brought online in time for spring travel.
Alaska is also adding a daily year-round flight between Paine Field in Everett and Portland in June.
This story was updated at 11:53 a.m. with additional comments from the Port of Bellingham.
Annie Todd is CDN’s criminal justice/enterprise reporter; reach her at annietodd@cascadiadaily.com; 360-922-3090 ext. 130.
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