Fairbanks North Star Borough backs return to defined‑benefit retirement, citing teacher and public‑safety turnover

The Fairbanks North Star Borough Assembly voted to back House Bill 78, a proposal to restore a defined‑benefit retirement option for public employees, after hours of public testimony from teachers, firefighters and retired troopers.

Supporters, including several educators and the borough’s school board representative, said the borough’s tiered defined‑contribution system has driven staff turnover and hindered recruitment. “We are in crisis,” said Sarah Dimick, a Fairbanks teacher who testified during the citizen‑comment period, describing how current retirement rules force educators to consider leaving Alaska for states that offer pension options. Retired trooper Brian Zeisel told the Assembly his prior defined‑benefit pension allowed him to remain in-state and later take a second career in teaching.

Mayor Hopkins and other sponsors said actuarial reviews included in the bill’s development indicate HB78 is structured to avoid creating new unfunded liabilities, with funding mechanisms and governance safeguards. “The actuaries say this bill works; it does not create new unfunded liabilities and is funded from day one,” Mayor Hopkins said during the staff report.

Opponents on the Assembly voiced caution about cost and implementation. Assemblymember Wilson said she worried about the bill’s practical effects and noted that employees and employers must understand the long‑term funding implications before the Assembly endorses broad changes. The Assembly amended the resolution’s language to explicitly include educators and “other educators” before voting.

The resolution passed 6‑2. Action and next steps: the resolution expresses municipal support for HB78 and will be submitted to the Borough’s legislative contacts and circulated to legislators in Juneau as an expression of local support. Because the resolution is advisory, it does not change local pension policy but signals the borough’s preference and intent to advocate for the bill’s passage.

The Assembly closed by noting that if the state moves forward, individual employees will retain options defined in HB78 (a one‑time option for current employees and a five‑year option for future hires) rather than a mandatory conversion.