House panel advances governor's pension plan

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by Your Alaska Link News Team

The House Finance Committee has advanced Gov. Sean Parnell's plan for addressing the state's pension obligation.

It's not clear whether that's the plan lawmakers ultimately decide to go with. The Senate Finance Committee is also studying the issue.

Parnell proposed moving $3 billion from savings toward addressing the public employees' and teachers' retirement system with about $1.9 billion of that going toward the public employees system. The plan calls for $500 million annual payments after that.

The state is currently on a schedule that calls for escalating payments on pace to exceed $1 billion. Parnell's plan would lower those payments.