Alaska Lawmaker Defends Pension Reform Bill

HB 78 aims to reduce vacancies, control overtime, and stabilize Alaska's workforce, says Rep. Chuck Kopp.

Published on Feb. 19, 2026

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In an opinion piece, Alaska State Representative Chuck Kopp argues that House Bill 78, a pension reform proposal, is a "risk-managed system" that will reduce employer costs while strengthening employee retention. Kopp says the current defined-contribution system has led to high teacher turnover and chronic public safety vacancies, costing the state millions in recruitment and training expenses. He contends that HB 78 has built-in safeguards to protect against investment volatility and will ultimately save the state money compared to the current system.

Why it matters

Alaska's public sector workforce has struggled with high turnover and staffing shortages, leading to increased overtime costs and a loss of institutional knowledge. This pension reform proposal aims to address these challenges by creating a more sustainable retirement system that incentivizes long-term employment.

The details

HB 78 establishes a new tier in the Public Employees' Retirement System and Teachers' Retirement System that requires 8-12% employee contributions, with automatic increases if funding drops below 90%. Employer costs are projected to decrease from the current 22% rate to around 10% under the new system. The bill also includes provisions to reduce retiree inflation protection if investment returns underperform. Kopp argues these risk-management features will prevent the need for state bailouts.

  • In FY16, statewide premium pay (largely overtime) totaled $72.5 million.
  • By FY25, premium pay had more than doubled to $149.7 million.
  • Premium pay is on track to exceed $200 million in FY26.

The players

Chuck Kopp

A member of the Alaska House of Representatives who currently serves as the Majority Leader. He represents District 10 and is the author of the opinion piece.

David Kirchner

The state actuary from Gallagher Consulting who has reported to the Alaska House and Senate Finance Committees that HB 78 will not add to the state's unfunded pension liability.

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What they’re saying

“The state actuary, Mr. David Kirchner of Gallagher Consulting, reports unequivocally to the House and Senate Finance Committees that HB 78 will flatten overtime costs, decrease vacancies, improve retention and that projections show the plan will not add one dollar to the state's unfunded liability.”

— Chuck Kopp, Alaska State Representative (adn.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This pension reform proposal aims to address Alaska's public sector workforce challenges by creating a more sustainable retirement system that incentivizes long-term employment, reduces employer costs, and protects against investment volatility - potentially saving the state millions in the long run.