The Alaska House of Representatives voted Tuesday to restore defined benefit pensions for public employees, ending a two-decade experiment with defined contribution-only retirement that lawmakers said fueled massive workforce turnover.

The House concurred 21-19 with Senate changes to House Bill 78, which creates a new pension tier for state and municipal workers hired after the effective date. The Senate amendments made the plan more fiscally conservative but added complexity that some members said raised unanswered questions.

The bill now heads to the governor without an effective date clause, which failed 21-19. That means the measure takes effect 90 days after the governor signs it, rather than the delayed January 2027 start the Senate had proposed.

The Senate increased the employer contribution rate for municipalities from 22 percent to 22.5 percent and removed the 12 percent cap on employee contributions. The changes also gave municipalities a six-month window to opt out of the new pension system, a provision that drew sharp criticism from members who said it would create inequities between communities.

"The Senate made this bill structurally more conservative and stronger," the bill's sponsor said. The uncapped employee contribution means workers would pay whatever share is needed to keep the plan funded at 90 percent or higher, though actuaries said that scenario is unlikely.

Opponents warned the state is repeating the mistakes that led to a $7 billion unfunded liability in the early 2000s. "We started out on our existing plan that was closed in 2006 with $15 billion total liabilities," one representative said. "That amount of money today, that liability on the closed plan is over $25 billion."

The debate stretched more than two hours as members wrestled with the fiscal implications and procedural mechanics. Several representatives said they lacked time to consult with school districts and municipalities about the opt-out provision, which locks communities into their choice permanently.

"This plan, as it comes back, costs $467 million over the next 10 years and more," one member said, questioning whether projected savings would offset the additional budget costs.

Supporters said the current system has failed Alaska. The state has the highest teacher turnover rate in the nation at 30 percent, and 72 percent of departing state troopers leave for states offering pensions. Vacancy-driven overtime costs the state $140 million annually.

"I am sick and tired of listening to people in public safety talk about the number of folks that went through academy with them that are gone in four years, five years, because they have been poached by communities out of our state who offer a pension system," one representative said.