Alaska Public Pension Coalition

ARMB- Alaska Retirement Management Board

The Alaska Retirement Management Board assumed fiduciary responsibility for Alaska's retirement systems in October, 2005. The Board is a part of the Alaska Department of Revenue, and has updates and upcoming meetings listed on their website. In addition, interested parties can also view annual audited financial schedules, contribution rates, profiles of the Trustees, monthly financial reports, and other items.

You can access the website here.

Social Security Administration Report Makes the Program’s Importance Clear

Social Security is the most significant source of income for Americans age 65 and older, and its importance has continued to grow over time, according to a recent Social Security Administration  (SSA) report. Social Security made up 38% of the total income of people age 65 and older in 2009—up from 30% in 1962—and is the largest of any type of retirement income. According to U.S. News and World Report, “only a fortunate minority” of Americans have significant sources of retirement income other than Social Security. Social Security made up half or more of the retirement income of 66% of Americans age 65 and older in 2009, up from 64% in 2008. And more than a third of retirees (35%) receive 90% or more of their income as a monthly payment from SSA. While Social Security makes up a large share of the typical retiree's income, the amount they are paid is actually fairly small. The average monthly payout to retired workers was $1,176 in 2010. For more statistics and a link to the report itself, go to http://bit.ly/qzOouz.

[Excerpted from the Friday Alert from the Alliance for Retired Americans.]

Fact Sheet: "Defined Contribution" and "Defined Benefit" Retirement Plans

A defined benefit (DB) retirement plan (also known as a traditional pension plan) provides monthly pension checks -- a predictable, stable income that retirees cannot outlive.

 

A defined contribution (DC) retirement plan is similar to a 401(k) savings account. It provides no established monthly pension, and it provides nothing to fall back on when the “savings account” is depleted.

In May 2005, the Alaska Legislature made a hasty decision that destroyed the fiscally responsible public employee DB retirement system that had long helped to build Alaska’s economic vitality and social stability.  The Legislature replaced it with a woefully inadequate DC plan.

• Overnight, Alaska went from having one of the best public retirement systems in the country to having the absolute worst. Alaska downgraded from a stable retirement brick house with prudent, long-term investors and earnings to a straw house with great individual risk and little financial security over the long haul, stifling the retirement readiness of Alaska’s public employees.