JUNEAU, Alaska (AP) — Gov. Sean Parnell is proposing putting $3 billion from savings toward addressing Alaska's $12-billion unfunded pension liability.
The state's currently on a payment schedule that calls for increasing payments expected to exceed $1 billion before dropping.
Parnell previously supported staying on that schedule but says he's become convinced, partly from feedback from ratings agencies, that that option isn't sustainable.
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His budget office says his plan would allow for flat, $500-million payments after the infusion.
The state started the fiscal year with about $16 billion between two savings accounts, but savings also will be needed to help balance state budgets amid declining revenues.
A stock market dive, rising health care costs and actuarial mistakes contributed to the pension liability.
Alaska switched from a pension program to a 401(k)-style benefit in 2005.
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