Sitka School Board Resolution in Support of SB 88 and a Defined Benefit Option for Teachers and Other Public Educators

WHEREAS, Alaska is the only state in the country that does not have some form of defined benefit pension plan for teachers, school support staff, school administrators, and public school educators¹;

WHEREAS, 89% of public school educators in the country have access to a guaranteed, defined benefit pension for life ² ; and

WHEREAS, Alaska eliminated the defined benefit pension plan for teachers, school support staff, and public school educators in 2005, going from having one of the best defined benefit pension plans in the country to the only one without a defined benefit pension plan for teachers, school support staff, and public school educators; and

WHEREAS, Teachers’ Retirement System (TRS) employees are excluded from the Supplemental Annuity Plan (SBS-AP) that public employees are automatically enrolled in as part of their retirement. The Public Employees’ Retirement System (PERS) employee (14.125%) and employer (11.125%) contributions total over 25% of wages for retirement investments. However, the TRS totals 15%, with 8% from the employee and 7% “match” from the employer; and

WHEREAS, many employees in TRS are not able to save enough for retirement; and

WHEREAS, defined benefit pensions are more efficient than 401k plans, providing about twice the value per dollar invested, with higher returns, and lower fees ³ ; and

WHEREAS, Alaska is facing a teachers, school support staff, school administrator, and public school educator shortage and hiring crisis, and Alaska school districts’ wages and benefits are no longer competitive compared to compensation provided in other neighboring states; and

WHEREAS, the Sitka School District (SSD) is facing a teachers, school support staff, school administrator, and public school educator shortage and hiring crisis, and has not been able to offer a defined benefit pension plan to teachers and other school staff, and has not been able to keep wages up with inflation; and

WHEREAS, in states where teachers and public school educators have a choice between a pension and a savings plan (like a 401k), they overwhelmingly choose a defined benefit pension plan ⁴ ; and

WHEREAS, Sitka teachers, school support staff, school administrator, the Sitka Education Association, and the Sitka Educational Support Professionals Association have consistently and overwhelmingly expressed the need for a defined benefit pension plan in order to retain and recruit quality educators in Sitka and Alaska; and

WHEREAS, the ability to retain and recruit quality teachers, school support staff, school administrator, and public school educators is critical to the success of our schools, students, communities, and the future of Alaska; and

WHEREAS, research shows that the ability to offer competitive wages and benefits to teachers, school support staff, school administrator, and public school educators results in better academic, social emotional, and behavioral outcomes for students ⁵ ; and

WHEREAS, the Sitka School Board believes and knows that the ability to offer a defined benefit pension plan to current and new teachers, school support staff, and school administrator is critical to our ability to retain and recruit quality public school educators.

NOW, THEREFORE, IT BE RESOLVED BY THE CITY AND BOROUGH OF SITKA'S SITKA SCHOOL BOARD, that:

The Sitka School Board finds that the State’s failure to provide adequate benefits within Teachers’ Retirement System (TRS) undermines the ability of districts statewide to provide compensation needed to adequately recruit and retain teachers.

The Sitka School Board strongly urges the Alaska Legislature and the Governor to significantly and appropriately increase the retirement compensation to all teachers in order to decrease teacher turnover and increase teacher quality.

The Sitka School Board urges the Alaska Legislature and the Governor to implement a mechanism to provide increased retirement security in TRS through a pension, and/or to increase retirement funding in amounts no less than retirement funding for other public employees (PERS.)

The Sitka School Board asks the Alaska Legislature and Governor to pass Senate Bill (SB) 88 Retirement System; Defined Benefit Option as a step in this direction.

Citations

1. National Education Association (NEA) - Alaska, "No Social Security? For Alaska Teachers, That’s Just the Way It Is" (2023)
2. National Education Association (NEA), "Pension Fact Sheet for Schools, Communities, and Educators" (2019)
3. National Education Association (NEA), "Pension Fact Sheet for Schools, Communities, and Educators" (2019)
4. National Institute on Retirement Security, "Decisions, Decisions: An Update on Retirement Plan Choices for Public Employees and Employers" (2017)
5. National Education Association (NEA), "Pension Fact Sheet for Schools, Communities, and Educators" (2019)