Alaska Scraps $2.4 Billion Bond Sale for State Pension Plan

Alaska called off a plan to sell $2.4 billion of bonds to shore up its underfunded retirement system amid rising interest rates and a political backlash against the deal.

Proceeds from the taxable bond offering, which had been planned for Oct. 26, would have boosted the funding of the state’s public-employee retirement system. Gov. Bill Walker was banking on the pension’s investments earning more than it costs to borrow, a wager that state senators said was too optimistic and led them to push to scuttle the sale.

“The governor made a decision not to proceed at this time due to ...