2016-05-23                     Senate Journal                      Page 2909
SB 4002                                                                                                                       
SENATE BILL NO. 4002 BY THE SENATE RULES COMMITTEE                                                                              
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to major medical insurance coverage                                                                  
          under the Public Employees' Retirement System of                                                                      
          Alaska for certain surviving spouses and dependent                                                                    
          children of peace officers and firefighters; and                                                                      
          providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Administration                                                                          
                                                                                                                                
Governor's transmittal letter dated May 23:                                                                                     
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to providing major                                                              
medical benefits to the eligible survivors of peace officers and                                                                
firefighters whose deaths occur while in the performance of their                                                               
duties and who are members of the Public Employees' Retirement                                                                  
System of Alaska (PERS). This bill would apply to PERS members                                                                  
employed by the State and to PERS members employed by PERS-                                                                     
participating political subdivisions.                                                                                           
                                                                                                                                

2016-05-23                     Senate Journal                      Page 2910
Currently, occupational death benefits in the form of system-paid                                                               
major medical benefits are available only to the survivors of Tier I                                                            
employees in the defined benefit plan (employees first hired before                                                             
July 1, 1986). Under the existing defined contribution plan (members                                                            
first hired on or after July 1, 2006), a person is not eligible for system-                                                     
paid major medical benefits.                                                                                                    
                                                                                                                                
This bill would extend major medical benefit coverage to the survivors                                                          
of peace officers and firefighters whose deaths occur as a result of                                                            
their jobs, regardless of what Tier applied to the deceased member. In                                                          
addition, for defined contribution members, the bill would allow for a                                                          
100 percent premium subsidy for major medical benefits for eligible                                                             
survivors of peace officers or firefighters whose death was                                                                     
occupational.                                                                                                                   
                                                                                                                                
The PERS defined contribution plan requires that members retire                                                                 
directly from the plan in order to be eligible for medical benefits. To                                                         
effectuate the goals of this legislation, the bill modifies this                                                                
requirement to allow eligible survivors of a peace officer or firefighter                                                       
whose death occurs as a result of employment to receive major                                                                   
medical benefits under PERS.                                                                                                    
                                                                                                                                
This bill would have a retroactive effective date and would apply to                                                            
the eligible survivors of peace officers or firefighters who have died in                                                       
the line of duty on or after January 1, 2013.                                                                                   
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor