2026-05-19                     House Journal                      Page 2890
HB 78                                                                                                                         
The following letter was dated May 18 and received 10:39 p.m.:                                                                  
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority vested in me by Article II, Section 15 of the                                                               
Alaska Constitution, I have vetoed the following bill:                                                                          
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 78(FIN) am S(efd                                                                       
     fld H)                                                                                                                     
     "An Act relating to the public employees' retirement system and                                                            
     the teachers' retirement system; and providing certain employees                                                           

2026-05-19                     House Journal                      Page 2891
     an opportunity to choose between the defined benefit and defined                                                           
     contribution plans of the public employees' retirement system and                                                          
     the teachers' retirement system."                                                                                          
                                                                                                                                
I share the Legislature’s goal of strengthening recruitment and                                                                 
retention for Alaska’s public workforce. However, House Bill 78                                                                 
contains unresolved legal, tax, administrative, and fiscal issues that                                                          
create uncertainty for the State, employers, employees, and the                                                                 
retirement systems themselves.                                                                                                  
                                                                                                                                
Most importantly, House Bill 78 would return long-term investment,                                                              
actuarial, and unfunded liability risk to the State and participating                                                           
employers. Pension obligations extend for decades, and the full cost of                                                         
this bill may not be apparent until years after its enactment.                                                                  
                                                                                                                                
If the Legislature intends to increase the State’s long-term spending                                                           
obligations, it must also be prepared to support the long-term revenue                                                          
needed to pay for them. That requires a serious commitment to natural                                                           
resource development, private-sector growth, and a stronger economic                                                            
foundation for Alaska’s future.                                                                                                 
                                                                                                                                
Any return to a defined benefit system must be legally sound, fiscally                                                          
responsible, administrable, fully compliant with federal tax law, and                                                           
supported by a durable plan to pay for it. House Bill 78 does not meet                                                          
that standard.                                                                                                                  
                                                                                                                                
For these reasons, I have vetoed this bill.                                                                                     
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"