Alaska passes DC plan

The Alaska House of Representatives joined the state senate with final approval of House Bill 191 which creates a 401(k)-style Defined Contribution retirement plan for public employees and teachers hired after July 1, 2006.

The Anchorage Daily News reports:

Opponents of the retirement bill say the individual accounts would make future retirees' security vulnerable to financial markets, whereas the traditional pension system guarantees a percentage of salary and health care for retirement.

Senate Republican leaders, however, have called the bill the most important legislation this session. It's a way to fix the structure of the systems that face a combined $5.7 billion shortfall for long-term payouts, they say.

More.