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Sean Randall Parnell on Social Security

 

 


Make Retirement Trust Fund sustainable by adding $3B

Washington has not made Social Security sustainable, but in Alaska we can reform our pension system so it is fully funded. Fellow Alaskans, the time is now to tackle our $12 billion pension deficit. Alaska's escalating annual pension payments squeeze dollars from every other program and State service--education, public safety, natural resources--and that vise will soon tighten. Without action, our $630 million annual payment will balloon to more than $1 billion.

To keep Alaska strong, I propose we transfer $3 billion of our $16 billion in budget reserves into the Retirement Trust Fund. Next year, this shift will allow us to reduce our annual payment to $500 million, instead of more than $750 million--that's a savings of more than 50% in the first year. Our plan will dramatically drop future operating budgets and put us on a more sustainable financial path.

Source: 2014 State of the State Address to Alaska legislature , Jan 22, 2014

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Page last updated: Aug 20, 2021