VOLUME XVI ISSUE IV NOVEMBER 2012

p2-3 Southeast Chapter News Candidate Responses p4-5 Candidate Responses p6-7 Additional Candidate RPEA Comments Northern Chapter News p8 Southcentral Chapter News Reporter www.rpea.apea-aft.org RPEA Questions to 2012 Candidates Earlier this fall, RPEA sent a questionnaire contribution would have been $868 to all 2012 Legislative candidates. million instead of $610 million? Candidates were asked to respond “yes,” “no” or “undecided” to each of the 2. The State of Alaska currently enjoys a following questions. Their responses and budget surplus of some $17 billion, the additional comments are included later result of high oil prices and the oil tax system in this newsletter. currently in place (ACES). The governor President’s has proposed an oil tax system that would 1. The Alaska Dept. of Administration result in reducing the state’s revenue from Message testified to the in 2011 oil production. Given the underfunded By Jay Dulany, President that the state retirement trust funds are retirement system trust funds described seriously underfunded; PERS at 63% and above, will you support maintaining ACES We’ve deviated from our usual newsletter TRS at 54%. The effect of that shortfall is in order to provide sufficient revenue to format to report the results of our Alaska to increase every year the amount that the meet trust fund obligations? Legislative candidate questionnaire. state will have to contribute to the fund in RPEA does not endorse candidates, order to enable it to make future payments 3. If elected or re-elected to public office but tries to inform our members about to retirees. By 2016, just 4 years from now, in November 2012, will you fully support current retiree issues and the candidates’ that annual appropriation from the state’s legislation which will allow State of Alaska positions on those issues. treasury will come to over $1 billion dollars employees hired since 2006 to choose a cost- and continue to rise. Conversely, substantial neutral defined benefit retirement system? With seats in all but one election district contributions by the state in the near term, up for election, the make-up and while we enjoy a revenue surplus, will 4. Long Term Care, Dental/Vision/ leadership of the next Legislature will greatly reduce the future costs. Accordingly: Audio, and Life Insurance for PERS largely be determined by your vote in and TRS retirees are funded entirely this election. Of course, our out-of-state a. Will you support an additional by retirees, but they have no oversight members will not be voting, but may contribution (beyond the regular annual of the management of those funds. If have influence on the votes of friends contribution - $600+ million in FY 2013) elected or re-elected to public office in and family in Alaska, so these answers of $500 million each to the PERS and TRS November 2012, will you fully support may be of some interest. pension trust funds in order to begin to pay legislation which will (a) authorize the down the unfunded liability in those funds? Alaska Retirement Management Board Whatever your persuasion – Republican, to supervise the administration of those Democrat, Libertarian or, like many b. If you don’t support the extra $500 insurance programs and (b) authorize of us, none of the above – vote on million, would you support a level dollar PERS retirees to elect one of their members November 6. You know how close Alaska pay down plan whereby the FY 2013 to that Board and TRS retirees to elect one elections usually are! Every vote counts. of their members to that Board? RPEA form groups made up of churches, food 3310 Arctic Blvd., Suite 200 banks, soup kitchens, etc. This allows Anchorage, AK 99503 them to apply and work together for 274-1703 or (800) 478-9992 grants. Stevens said that United Way has [email protected] a budget of about $350,000 per year, www.rpea.apea-aft.org with 15 percent going to administrative Southeast costs (salaries, fund raising, etc.) and Want to help RPEA save money and 85 percent going to the nonprofits they the environment? Sign up for an Chapter News work to help. He said that people can e-mail version of the newsletter. Call or e-mail the RPEA office today! dial 211 for one-stop information on By Gary Miller, Vice President agencies that offer help with a wide variety of needs. RPEA Executive Board Our September guest speakers were the President: Jay Dulany five City and Borough of Juneau (CBJ) O’Dea said that Bridge fills the gap Executive Vice-President: Ted Moninski candidates Loren Jones, Paul Nowlin, between living at home and living in Treasurer: Vicki Pedersen Jerry Nankervis, Merrill Sanford and a senior facility. It is funded partly by Cheryl Jebe. They are clearly aware of the State of Alaska, partly by Catholic Secretary: Sam Trivette the problems facing seniors in the Juneau Community Services and partly by the Vice-President Northern Region: area. They covered these topics: CBJ. Bridge provides caregivers with a Charles Gallagher break during the day, and seeks to create Vice-President Southcentral Region: 1) Protecting the senior sales tax a social environment for the seniors Bob Madigan exemption. All five support the sales there. The facility is open Monday Vice-President Southeast Region: tax exemption. through Friday from 7:30 a.m. until 5 Gary Miller 2) Senior homes like the Pioneer’s p.m. O’Dea said they expect the need Legislative Affairs Director: Vacant Home. Steps need to be taken now. to increase as the number of seniors in 3) Juneau is the most expensive place in Medical Information Director: Linda Gorman Alaska (not counting villages). The Assembly needs to look at ways of Seniors have the opportunity Membership Director: Linda Dalton lowering the cost of living in Juneau. to be very influential if they Communications Director: Ruby Ketola 4) High rental prices need to be addressed. all vote. Important Phone Numbers 5) Better communication with the HealthSmart AlaskaCare: (877) 517-6370 public. Both getting information out Pharmacy Help Desk: (800) 361-4542 and receiving it from the public. Juneau rises while funds from the state Retirement & Benefits, Juneau 6) Higher voter turnout. Only 22 and CBJ are cut. 465-4460 or (800) 821-2251 percent voted in August. (Seniors have the opportunity to be very Bridge does not qualify for long-term Meeting Schedule influential if they all vote.) care because they don’t have a nurse 7) Other topics include a road out of or nursing assistant on site. O’Dea Southeast Chapter Juneau, a second crossing, capital said that the Juneau legislators are Second Thursday, September – May, 11:30 a.m., in the Aurora Room at creep, the landfill, recycling, better working on legislation to change this the airport communication between the requirement. I will be contacting Rep. Southcentral Chapter Assembly and the public, and several Beth Kerttula, Rep. Cathy Munoz and Second Tuesday each month, 11:30 a.m., other issues. Sen. Dennis Egan about this. There may Anchorage Senior Activity Center be legislation that we want to support. Northern Chapter Our October guest speakers were Wayne Third Thursday each month, 12:30 p.m., Stevens of United Way and Connor An RPEA member and friend of mine is Princess Hotel O’Dea from Bridge, a day care facility researching Oregon senior foster homes. RPEA Executive Board for seniors with physical or mental issues. It sounds as if they are run for seniors Third Tuesday each month, 10 a.m., who need help. She will be getting back Anchorage APEA/AFT Field Office Stevens talked about United Way and to me after her research is complete, and (via teleconference) 274-1720 some of the organizations they help I will share the findings with you. Contact the editors through the RPEA office. obtain funding. United Way tries to

2 RPEA Reporter • November 2012 • www.rpea.apea-aft.org

1a. The Alaska Dept. 1b. The Alaska Dept. 2. The governor has 3. If elected or re- 4. Will you fully Candidate of Administration of Administration proposed an oil tax elected to public office support legislation Responses to testified to the Alaska testified to the Alaska system that would in November 2012, which will (a) RPEA 2012 Senate in 2011 that Senate in 2011 that result in reducing the will you fully support authorize the ARM the state retirement the state retirement state’s revenue from oil legislation which will Board to supervise the Questionnaire trust funds are seriously trust funds are seriously production. Given the allow State of Alaska administration of those underfunded. Will you underfunded. If you underfunded retirement employees hired since insurance programs Questions have been support an additional don’t support the system trust funds, will 2006 to choose a cost- and (b) authorize PERS shortened for space; contribution of $500 extra $500 million, you support maintaining neutral defined benefit retirees to elect one please see full questions million each to the would you support a ACES in order to retirement system? of their members to on page 1. PERS and TRS pension level dollar pay down provide sufficient that Board and TRS trust funds in order to plan whereby the FY revenue to meet trust retirees to elect one of RPEA used a candidate begin to pay down the 2013 contribution fund obligations? their members to that list that was current at unfunded liability in would have been $868 Board? the time of distribution those funds? million instead of $610 of the 2012 candidate million? questionnaire; however, not all races were finalized at that time, so the following list may not include all current candidates.

District A John Coghill, Jr. (R) No Response to Questionnaire Joe Thomas (D) Yes No response Yes Yes Yes District B Pete Kelly (R) No Response to Questionnaire Joe Paskvan (D) Yes No response Yes Yes Yes District C Clark Bishop (R) No Response to Questionnaire Anne Sudkamp (D) Yes N/A Yes Yes Yes District D Michael Dunleavy (R) No Response to Questionnaire District E Charles Huggins (R) No Response to Questionnaire Susan Parsons Herman (D) No Response to Questionnaire District F Frederick Dyson (R) Yes No response No* Yes* Undecided* Martin Lindeke (D) No Response to Questionnaire District G Bob Roses (R) Undecided Undecided No Yes Undecided Bill Wielechowski (D) No Response to Questionnaire District H Berta Gardner (D) Undecided* Undecided Yes Yes Yes Don Smith (R) No Response to Questionnaire District I Johnny Ellis (D) Yes No response Yes Yes Yes Paul Kendall (R) No Response to Questionnaire District J F. Robert Bell (R) No Response to Questionnaire (D) Yes No response Yes Yes Yes District K Roselynn Cacy (D) No Response to Questionnaire Lesil McGuire (R) No Response to Questionnaire District L Jacob Hale (D) No Response to Questionnaire Kevin Meyer (R) Yes No response No* Yes Yes District M Bettye Davis (D) Yes No response Yes Yes Yes Anna Fairclough (R) No Response to Questionnaire District N Catherine Giessel (R) No Response to Questionnaire District O Peter Micciche (R) No Response to Questionnaire District Q Albert Kookesh (D) Yes Yes Yes Yes Yes Bert Stedman (R) No Response to Questionnaire District R Robert Henrichs (D) No Response to Questionnaire Gary Stevens (R) No Response to Questionnaire District S Lyman Hoffman (D) No Response to Questionnaire District T Allen Minish (R) No Response to Questionnaire Donald Olson (D) No Response to Questionnaire RPEA Reporter • November 2012 • www.rpea.apea-aft.org 3

1a. The Alaska Dept. 1b. The Alaska Dept. 2. The governor has 3. If elected or re- 4. Will you fully Candidate of Administration of Administration proposed an oil tax elected to public office support legislation Responses to testified to the Alaska testified to the Alaska system that would in November 2012, which will (a) RPEA 2012 Senate in 2011 that Senate in 2011 that result in reducing the will you fully support authorize the ARM the state retirement the state retirement state’s revenue from oil legislation which will Board to supervise the Questionnaire trust funds are seriously trust funds are seriously production. Given the allow State of Alaska administration of those underfunded. Will you underfunded. If you underfunded retirement employees hired since insurance programs Questions have been support an additional don’t support the system trust funds, will 2006 to choose a cost- and (b) authorize PERS shortened for space; contribution of $500 extra $500 million, you support maintaining neutral defined benefit retirees to elect one please see full questions million each to the would you support a ACES in order to retirement system? of their members to on page 1. PERS and TRS pension level dollar pay down provide sufficient that Board and TRS trust funds in order to plan whereby the FY revenue to meet trust retirees to elect one of begin to pay down the 2013 contribution fund obligations? their members to that unfunded liability in would have been $868 Board? those funds? million instead of $610 million?

District 1 Janice Golub (D) Yes No response Yes Yes Yes Douglas Isaacson (R) No Response to Questionnaire District 2 Robert Miller (D) Yes No response Yes Yes Yes Tammie Wilson (R) No Response to Questionnaire District 3 Stephen Thompson (R) No Response to Questionnaire District 4 Scott Kawasaki (D) Yes* No response Yes* Yes* Yes David Pruhs (R) No Response to Questionnaire District 5 Pete Higgins (R) No Response to Questionnaire David Watts (D) Yes No response Yes Yes Yes District 6 Jamey Duhamel (D) No Response to Questionnaire Eric Feige (R) Yes No response No No Yes District 7 Wesley Keller (R) No Response to Questionnaire District 8 Shelley Hughes (R) No Response to Questionnaire District 9 Lynn Gattis (R) No Response to Questionnaire Blake Merrifield (D) Yes No response * Yes Yes District 10 Mark Neuman (R) No Response to Questionnaire Pamela Rahn (D) Yes No response Yes Yes Yes District 11 Bill Stoltze (R) No Response to Questionnaire District 12 Dan Saddler (R) No Response to Questionnaire District 13 Gabrielle LeDoux (R) No Response to Questionnaire District 14 Max Gruenberg (D) Yes* Yes* Yes* Yes Yes Donald Hadley (R) No Response to Questionnaire District 15 Andrew Josephson (D) Yes No response Yes* Yes Yes Richard Traini (R) No Response to Questionnaire District 16 Jimmy Crawford (R) No Response to Questionnaire Harriet Drummond (D) Yes No response Yes Yes Yes District 17 Cean Stevens (R) No Response to Questionnaire Geran Tarr (D) Yes Yes* Yes Yes Yes* District 18 Cris Eichenlaub, Jr. (R) No Response to Questionnaire Les Gara (D) Yes* No response * Yes Yes* District 19 Anand Dubey (R) No Response to Questionnaire Lindsey Holmes (D) * No response * * * District 20 Mia Costello (R) No Response to Questionnaire Michelle Scannell (D) Yes No response * Yes Yes

4 RPEA Reporter • November 2012 • www.rpea.apea-aft.org

1a. The Alaska Dept. 1b. The Alaska Dept. 2. The governor has 3. If elected or re- 4. Will you fully Candidate of Administration of Administration proposed an oil tax elected to public office support legislation Responses to testified to the Alaska testified to the Alaska system that would in November 2012, which will (a) RPEA 2012 Senate in 2011 that Senate in 2011 that result in reducing the will you fully support authorize the ARM the state retirement the state retirement state’s revenue from oil legislation which will Board to supervise the Questionnaire trust funds are seriously trust funds are seriously production. Given the allow State of Alaska administration of those underfunded. Will you underfunded. If you underfunded retirement employees hired since insurance programs Questions have been support an additional don’t support the system trust funds, will 2006 to choose a cost- and (b) authorize PERS shortened for space; contribution of $500 extra $500 million, you support maintaining neutral defined benefit retirees to elect one please see full questions million each to the would you support a ACES in order to retirement system? of their members to on page 1. PERS and TRS pension level dollar pay down provide sufficient that Board and TRS trust funds in order to plan whereby the FY revenue to meet trust retirees to elect one of begin to pay down the 2013 contribution fund obligations? their members to that unfunded liability in would have been $868 Board? those funds? million instead of $610 million?

District 21 Jodie Dominguez (D) Yes No response Yes Yes Yes Craig Johnson (R) No Response to Questionnaire District 22 Chris Tuck (D) No Response to Questionnaire Lisa Vaught (R) No Response to Questionnaire District 23 Bob Lynn (R) No Response to Questionnaire Guadalupe Marroquin (D) Undecided* No response Yes* Yes* Yes District 24 Patricia Higgins (D) No Response to Questionnaire Charisse Millett (R) No Response to Questionnaire District 25 Pete Petersen (D) Yes No response * Yes Yes Lance Pruitt (R) No Response to Questionnaire District 26 Roberta Goughnour (D) No Response to Questionnaire Lora Reinbold (R) No Response to Questionnaire District 27 Mike Hawker (R) Yes* No response No* Yes* * District 28 Charles Chenault (R) No Response to Questionnaire District 29 Kurt Olson (R) No Response to Questionnaire District 30 Elizabeth Diament (D) No Response to Questionnaire Paul Seaton (R) Yes No response Yes* No* Undecided* District 31 Cathy Munoz (R) Yes* Yes No* Yes Yes District 32 Beth Kerttula (D) Yes No response Yes Yes Yes District 33 Matthew Olsen (D) No Response to Questionnaire Peggy Wilson (R) Yes N/A Undecided Yes Undecided* District 34 Jonathan Kreiss-Tomkins (D) Yes No response Yes* Yes Yes William Thomas, Jr. (R) No Response to Questionnaire District 35 Alan Austerman (R) No Response to Questionnaire District 36 Bryce Edgmon (D) No Response to Questionnaire Carl Morgan, Jr. (R) No Response to Questionnaire District 37 Robert Herron (D) No Response to Questionnaire District 38 Alan Dick (R) No Response to Questionnaire David Guttenberg (D) Yes No response Yes Yes Yes District 39 Neal Foster (D) No Response to Questionnaire District 40 Benjamin Nageak (D) No Response to Questionnaire

* Indicates comment from candidate; please see “Additional Comments from Candidates” article on page 6.

RPEA Reporter • November 2012 • www.rpea.apea-aft.org 5 Additional Candidate Comments on RPEA 2012 Questionnaire Please refer to full questions on page 1. QUESTION 2 *I voted against the governor’s oil tax bill in 2011. I cannot commit to making no changes to ACES, but I will not support changes to the oil tax District F structure unless I believe those changes will result in more oil in the pipeline and Frederick Dyson will be in the best interests of Alaskans. QUESTION 3 *Co-sponsored legislation in each of my 3 terms to either return to QUESTION 2 *Tax rates need to be set on fairness & competiveness – not our a defined benefit or to allow employees to choose between defined benefit and (your) need. defined contribution system. I continue to support giving state and local government QUESTION 3 *If it doesn’t transfer risk to all Alaskans. employees the ability to enter a cost-neutral defined benefit retirement system. QUESTION 4 *I think so. I need to hear the pros & cons. QUESTION 4 *It makes sense to me that the retirees who pay for the system should have oversight of the fund management. District H Berta Gardner District 20 QUESTION 1A *Depends on the State revenue & budget each year. Michelle Scannell QUESTION 2 *Other: I want an audit to improve the parts of ACES that are not District L working for Alaskans. Kevin Meyer QUESTION 2 *We need to change ACES to get more production to fund District 23 retirement programs. Guadalupe Marroquin QUESTION 1A *Important to pay down but we must look at financial feasibility. District 4 With troubled economy we must be smart about our finances. My candidacy is Scott Kawasaki focused on our State finances, I will commit to working on this. For specifics, I QUESTION 1A *We should use our current revenue surplus to pay down our will need to find out more details. potential deficit today instead of leaving it in a checking account or leaving the QUESTION 2 *ACES is always open for review, we want to remain open for liability for future employees. business & encourage development. At this time, it is good for Alaskans & within QUESTION 2 *Support current ACES system & oppose the $2-billion giveaway to the global competitive ranges. oil corporations as currently proposed. The giveaway would put the legislative budget QUESTION 3 *This is dependent on State finances, always. I do support a modest into a deficit immediately & would not secure our future obligations. If any changes Defined Benefits retirement system. It is critical to keep trained & knowledgeable are made to ACES, it would be for increased production, increased local jobs & employees working in Alaska. reward corporations for doing business in Alaska – yet keep our budget in the black. QUESTION 3 *I have co-sponsored & vocally advocated for changes to make a District 25 retirement system in which workers can rely. Pete Petersen QUESTION 2 *I support some modifications, but only in exchange for guarantees District 9 of new production. Blake Merrifield QUESTION 2 *I would be willing to take another look at ACES provided that we District 27 receive guarantees from the oil companies of investment in Alaska. Mike Hawker QUESTION 1A *We have been doing this. Amount depends on budget District 14 circumstances & legislation. Max Gruenberg QUESTION 2 *It’s not about short-term revenue. It’s about long term sustained QUESTION 1A *I will look at all these solutions as part of the total budget. revenue to meet obligations far into the future. QUESTION 1B *I will look at all these solutions as part of the total budget. QUESTION 3 *I have a proven record on this. QUESTION 2 *I will look at all these solutions as part of the total budget. QUESTION 4 *Need more information.

District 15 District 30 Andrew Josephson Paul Seaton QUESTION 2 *With minor adjustments. QUESTION 2 *With slight modifications to highest rate & progressivity. I believe the max rate of 75% with the 0.1% progressivity is too high to show true Alaska District 17 competitiveness, so should be reduced, but the main progressivity model should remain relatively unchanged. Geran Tarr QUESTION 3 *The DC plan was designed to be close to contribution cost neutral. A QUESTION 1B *I support the extra funding. If that doesn’t receive enough DB plan by definition cannot be or assure future cost neutrality unless the employee support, I’m open to alternative approaches to pay liability. takes the risk of above calculated benefits, in which case it is really a DC plan. QUESTION 4 *I’d like to learn more about this because I imagine retirees QUESTION 4 *I would need to listen to hearings on this subject & fully would benefit greatly from having someone with expertise on the different plans understand the consequences. I am not at all sure that the ARMB is appropriate available. for “administration of insurance programs.”

District 18 District 31 Les Gara Cathy Munoz QUESTION 1A *That would be my goal. We’ve pushed in the past but we also QUESTION 1A *If oil prices remain high. have to see what revenue is like this year. QUESTION 2 *ACES progressivity features need to be adjusted to attract more investment. QUESTION 2 *I oppose the governor’s plan. It’s a giveaway. I support smarter, reasonable breaks that require increases in Alaska investment. QUESTION 4 *Sounds like a fair idea. I’d have to hear all arguments before District 33 committing to exact language. Peggy Wilson

District 19 QUESTION 4 *Sounds OK but need more information.

Lindsey Holmes District 34 QUESTION 1A *Support paying down unfunded liability – obligations of the Jonathan Kreiss-Tomkins State. I cannot commit in advance to exact amount of pay down in a given year, but $1 billion is a reasonable amount that I would consider, given the size of the QUESTION 2 *I will consider revision of ACES, but only if it preserves Alaska’s fair liability & the levels of State savings. share of oil revenue. HB110 would not, & I am steadfastly opposed to such legislation. 6 RPEA Reporter • November 2012 • www.rpea.apea-aft.org Membership APPLICATION Clip and mail to: RPEA, 3310 Arctic Blvd., Suite 200, Anchorage, AK 99503 Or join online at http://rpea.apea-aft.org/membership/membership_comm.html. Questions? Call 274-1703 or (800) 478-9992 _____ New Member _____ $35 for 1 Year _____ Renewal of Membership _____ $65 for 2 Years _____ Non-Member Subscription $35 _____ $145 for 5 Years _____ Change of Address, Phone or E-mail _____ $400 for Lifetime Name ______Spouse ______Mailing Address ______STREET/PO BOX CITY STATE ZIP Home Phone ______Other Phone ______E-Mail ______Send my newsletter by e-mail.

remarks regarding RPEA’s #1 priority, The ARM board is comprised of the deficit in the retirement fund. nine members. Right now, four of the current nine members come from Substitute guest speakers Rebecca participatory (PERS/TERS/Labor) Hultberg and Jim Puckett reiterated parties. Best of all was the ARM much of what they informed the RPEA board saw a roomful of very interested Northern executive board on June 20. I addressed beneficiaries discussing their business! the ARM board in closing statements on Chapter News Friday afternoon. I thanked the board One member is concerned about for their hard work and diligence. I pushing too hard regarding the unmet By Charlie Gallagher, also thanked Commissioner Hultberg liability, which could cause the public Vice President for our on-going inclusion in the to re-open the State’s constitution. He administration’s planning. She thanked warned us we have a good constitution We had a record 40 people present at RPEA for our acknowledgement. and if it is opened for change, anything our first luncheon, even though our in the constitution can be changed, scheduled speaker, RPEA President Guest speaker Sam Trivette informed including our entitlement. Jay Dulany, had to turn about due our members that the ARM board is to flooding of his Talkeetna summer considered one of the best in the U.S. George Lampe said if you started work home. Substitute speakers were Sam When national markets were down prior to 1980, you should contact him Trivette, former RPEA president; 45 percent, Alaska was down just 22 regarding tax information that may Rebecca Hultberg, Commissioner percent, thanks to the ARM board. The benefit you if you had paid deferred taxes. of Administration; and Jim Puckett, worst problem is actuary projections Director of Alaska Division of being incorrect. The ARM board Retirement and Benefits. appreciates RPEA members coming to The ARM board is considered talk to them. There are two new trustees one of the best in the U.S. It just so happened that our first on the ARM board: Sandy Ryan and scheduled luncheon coincided with Tom Brice. Trivette said his appointment When national markets were the Alaska Retirement Management was up in July 2012. RPEA members can (ARM) board meeting in the adjacent go to the ARM board web page at http:// down 45 percent, Alaska room. Ron Johnson, Northern Region doa.alaska.gov/drb/boards/index.html to was down just 22 percent. RPEA legislative committee member, view the ARM board priority list. addressed the ARM board in opening

RPEA Reporter • November 2012 • www.rpea.apea-aft.org 7 RPEA Reporter Non-profit Retired Public Employees of Alaska U.S. Postage PAID 3310 Arctic Blvd., Suite 200 Anchorage, AK Local 4900R APEA/AFT Permit No. 69 Anchorage, Alaska 99503

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the PERS/TRS unfunded liability. Each appears, the more that interest earned on year the liability exists, it grows because it can drop the liability. interest income is lost on the missing money. The liability is now estimated at Returning to a real pension system for $11 billion. current workers. In 2005, the Legislature removed the PERS/TRS pension system Southcentral Rep. Hawker assured RPEA members as an option for new employees. Workers that their pensions were solid. The hired since 2006 have been given an Chapter News Alaska constitution guarantees promised IRA-type savings account, and they are pensions to state workers. He also believes responsible for managing the funds in By Bob Madigan, Vice President that the liability is being addressed by it. This is an especially risky situation for increased payments state agencies are them since state workers are excluded A full house of Southcentral RPEA making to the pension fund. Rep. Hawker from the social security system – they are members listened as Rep. Mike Hawker, believes a recent change in the funding completely dependent on their personal Sen. Bettye Davis and candidate Harriet formula will encourage the Legislature to IRA funds for retirement. There is no Drummond discussed two issues increase the amount going into the fund. safety net whatsoever. important to RPEA members. Another way to improve funding is for the state to sell bonds and allow the pension All three of the participants recognized The unfunded liability. In 2000, the funds to invest the money. that the current flawed retirement system pension system was rock solid. Then, is a handicap in recruiting and retaining the state reduced its contributions and Sen. Davis believes the state should the most qualified workers, and all health care costs increased. Consultants simply make one or more large deposits favored a return to a defined benefit the state relied on made major mistakes. into the pension funds during this pension system similar to the one PERS/ Eventually it was discovered the fund period when the state is running large TRS retirees have. was in trouble over the long term. This is budget surpluses. The sooner this money

8 RPEA Reporter • November 2012 • www.rpea.apea-aft.org