The days when State workers had retirement accounts fully funded by the State of Alaska have been over for some time now. Seniority protects those Tier 1 employees from layoffs, so layoffs wouldn't get rid of that system. Those employees are contractually assured that money at retirement. Tier 4 is sustainable. The current system is exactly like Social Security and 401Ks. The employee has money taken out of their check. The State matches it. The only differences from SS is that the State actually invests the money so that it grows in value over time and you can also pass it onto your heirs.

There are a LOT of government services that could be privatized for a huge reduction in savings. If the government weren't in competition with private industry, then private industry could absorb the laid-off workers and pay them well. But mere mass layoffs do nothing without discontinuing the government funding of the services.