Special Message from Governor Sean Parnell

A Special Message from Governor Sean Parnell

Alaska is home or has been home to more than 64,000 public employees, teacher retirees, and their dependents. We appreciate their service to our great state. From teachers to troopers, many retirees receive a state pension, one that was promised by the state in the past. We have taken a big step in securing those pension promises.

This session, my administration proposed, and the Legislature unanimously passed, the largest pay down of pension debt in Alaska history, fixing our unfunded liability that had threatened the state’s retirement plans.

In paying down $3 billion of Alaska’s pension debt now, we are ensuring that future generations are not saddled with this debt, while giving retirees the confidence that their pensions from state and local governments remain a promise fulfilled.

By transferring $1 billion into the Public Employees’ Retirement System and $2 billion into the Teachers’ Retirement System from budget reserves, the state will be able to make lower annual payments to the pension plan and better control state spending.

We honor our commitments to public sector retirees, a commitment that other states and large cities in the Lower 48 have been unable to keep because they have failed to act. Paying down the state retirement system debt ensures that both your retirement and vital state services will continue to be delivered into the future.

Post Retirement Pension Adjustment

The 2014 automatic Post Retirement Pension Adjustment (PRPA) will be paid with the July 2014 check.

Division Management Restructuring

The Department of Administration has reorganized the management structure of the Division of Retirement and Benefits. Four chief officers that are subject matter experts in the areas of operations, pension, finance, and health will report directly to Deputy Commissioner of Administration Mike Barnhill. The following people have been appointed as chief officers:

• Chief Operating Officer: Jim Puckett
• Chief Pension Officer: Kathy Lea
• Chief Health Official: Michele Michaud
• Chief Financial Officer: Kevin Worley

This structure helps the Division to better align our business processes with the needs and requirements of you—retired and active public servants—and your families.

Alaska Retirement Management Board Meeting

June 26 through 27

Marriott Hotel, 820 West 7th Avenue, Anchorage

Alaska Retirement Management Board (ARMB) meetings are open to the public. Find minutes of past meetings and meeting agendas… If you have questions, contact Judy Hall, ARMB liaison, at (907) 465-3749.

Retirement Systems Market Value

As of April 30, 2014

Teacher's Retirement System (TRS)

$6,131,556,742

Public Employees' Retirement System (PERS)

$14,903,385,199

Judicial Retirement System (JRS)

$160,960,379

National Guard/Naval Militia Retirement System (NGNMRS)

$36,881,759

Alaska Supplemental Annuity Plan (SBS-AP)

$3,225,449,561

Alaska Deferred Compensation Plan (DCP)

$762,800,882