David Baker retired in 2020 from the Mat-Su school district with over 21 years of combined state service. Born and raised in Juneau, Alaska, he first worked as an activity assistant at the Palmer Pioneers Home, eventually quitting in 1994 and later transitioning to a special education assistant in Mat-Su.

When David first left employment at the Pioneers Home, he refunded his PERS contributions. When he began working in special education in 1999 and became a member of the TRS, David had an indebtedness on his retirement account, which could have led to a reduced benefit at retirement. To avoid this, he paid all his indebtedness—including interest and penalties—in order to receive his full benefit. It was a considerable sum to pay back, but David believes the additional amount he receives for his monthly pension benefit made it worth the effort. He estimates he’ll recoup the indebtedness he paid in 7-10 years. After retirement, he rolled his SBS benefit into other investments, which are paying another monthly benefit. Because he paid into Social Security while not a member of the PERS or TRS, he will also receive a benefit from the Social Security Administration when he reaches eligibility age. Altogether, his PERS/TRS benefit, along with his other investments, are providing David with a comfortable retirement. He has no debt and, in the future, plans to use his investment accounts for luxuries like travel, purchasing a second home in Hawaii, or a small yacht.

David considers himself fortunate that he and his family did not suffer financially during the pandemic. He is also grateful that they didn’t lose any family, friends, or even acquaintances to COVID-19. He and his family are vaccinated and are looking forward to traveling again as restrictions ease.

In his free time, David enjoys model building, including a model of the U.S.S. Pomfret, a submarine which he presented as a gift for Former President Jimmy Carter on his 94th birthday. David also volunteers as a pianist at local hospitals, nursing homes, and adult day-care centers.

David’s advice to people approaching retirement or those just starting to plan:

• Don’t amass a lot of debt when you’re young. Live within your means.
• “Never a borrower or lender be.”
• Accelerate payment of any debt such as mortgages and vehicle loans (you can save nearly a third just in interest).
• Set a little aside for investment whenever possible.
• “There’s always SOMETHING you can live without.”

If you would like to learn more about how your State of Alaska retirement can allow you to enjoy a comfortable retirement, please contact the Division toll-free at (800) 821-2251 or at (907) 465-4460 in Juneau.

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