Governor Sean Parnell today thanked the Legislature for its work to address the state's largest budget cost driver -- the unfunded pension liability.
"The Alaska Legislature took a bold step in joining me to fix one of the biggest drains on our budget," Governor Parnell said. "Today's action by the Legislature means future generations of Alaskans will not be saddled with this debt and retirees can be confident their pension remains a promise."
The bill sets the framework and allows for the transfer of $1 billion into the Public Employees' Retirement System and $2 billion into the Teachers' Retirement System from the Constitutional Budget Reserve Fund. This $3 billion infusion is expected to come from the capital budget. With an infusion, the state will be able to make lower annual payments to the pension plan and better control state spending.