SENATE BILL NO. 38 "An Act establishing a one-time occupational death benefit for peace officers and firefighters." 9:33:16 AM Senator Meyer stated that SB 38 would provide a one-time payment of $100,000 occupational death benefit established in Section 2 of the draft bill. It would provide that the payment may not be made to anyone but a surviving spouse of a dependent child of a peace officer. He stressed that the death of a peace officer was fairly rare in Alaska. He noted several letters of support. He noted that the average age of a peace officer who dies in the line of duty was 38- years-old. He stressed that the bill was especially important, because the officer may have small children that needed financial support. Co-Chair Hoffman wondered what other states programs were in comparison to this bill. Senator Meyer stated that each state had different programs. CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, stated that 39 other states provided similar benefit. She said the benefit ranged from $25,000 to $400,000. Senator Egan requested an explanation of the fiscal note's continual increase over time. Ms. Marasigan noted that there was some information required related to liability. She stressed that there was some actuary liability studies. Senator Meyer added that there was anticipation of one death per year. 9:38:49 AM Senator Olson looked at the pension fund, and wondered if the peace officers would be required to pay higher insurance because of the potential of more deaths. Senator Meyer believed that the money would be used from the unfunded liability, meaning that the money was already available. Senator Olson wondered if there were other death benefits for officers that die in the line of duty. Senator Meyer replied that there were some life insurance benefits. JIM PUCKETT, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS, introduced himself. Co-Chair Stedman wondered what the tier 4 employees' benefits would be. Mr. Puckett replied that they would receive the DCR balance. Co-Chair Stedman surmised that the benefit would be zero. Mr. Puckett agreed to provide more information regarding tier 4 employee benefits. Co-Chair Stedman requested information regarding the structure of the tier 4 benefits, because he would like to look at the comparative differences between a new employee and one that had been employed for 20 years. Mr. Puckett explained that if there was a loss of life due to accident on the job, there would be a life insurance benefit of $100,000 and the Supplemental Benefit System (SBS). He stated that he would provide further information regarding new employees. Senator Olson wondered when the benefits would begin following the death. Mr. Puckett replied that basic life insurance would occur immediately, and the check would be disclosed within a week following the incident. 9:44:21 AM Co-Chair Stedman requested written information in grid-form regarding the tier system benefits and structures. Mr. Puckett agreed to provide that information. Senator Egan wondered if it there was an assumption of one death per year, when the calculations were made. Mr. Puckett replied that the one death per year was the basis of the calculation. Senator Egan wondered how the unfunded liability increased $650,000. Mr. Puckett requested further information regarding Senator Egan's reference of $650,000. Co-Chair Stedman stated that it was in the Buck Analysis, second paragraph last sentence. He felt that the accumulation of expenditures was added to the negative side of the balance sheet. Co-Chair Stedman wondered who picked up the tab: the city or the state. He explained that the state would be required to provide the funds, because the cities were capped at 22 percent. He felt that there would be a broader discussion related to that topic. AARON DANIELSON, PUBLIC SAFETY EMPLOYEE ASSOCIATION, testified in support of SB 38. He felt that the bill addressed the families of the officer greatest concern. He pointed out that the bill would provide peace of mind. 9:49:34 AM CHRIS GIFFORD, MUNICIPAL CHAPTER PRESIDENT, PUBLIC SAFETY EMPLOYEE ASSOCIATION, spoke in support of SB 38. He stressed the importance of the benefit of the families of the officers. DEREK HSIEL, ANCHORAGE POLICE DEPARTMENT EMPLOYEE ASSOCIATION, testified in support of SB 38. He focused on the reality of death in the line of duty. He pointed out that training for death was a requirement for peace officers. The training was used to inoculate the understanding of death. He pointed out that when officers were killed in the line of duty, the work for the day continued. He stressed that death was expensive, and sometimes there were extra costs incurred by the family. He stressed that sometimes business contributions off-set costs, but smaller communities might not have that benefit. 9:54:10 AM Senator McGuire noted that $100,000 might not be a substantial amount of money. She wondered if there were any scholarship opportunities for dependents. She hoped there may be a possibility for a four-year scholarship for an in state college for children. Mr. Hsiel pointed out some benefits in the military. He felt that the added benefits would be left to the legislature's discretion. Senator McGuire requested more information regarding scholarships, and noted a summary of the record of peace officer deaths in Alaska. She also would like to see a scholarship benefit possibility. Co-Chair Stedman noted that those requests should be directed at the bill sponsor and the Department of Public Safety. 9:59:14 AM ERIC TUOTT, ANCHORAGE FIREFIGHTERS, testified in support of SB 38. He stated that he was married with a three-year-old daughter, so his family would be greatly affected if he was killed in the line of duty. He stressed that deaths did not happen frequently, but did occur occasionally. LARRY SEMMENS, CITY MANAGER, CITY OF SOLDOTNA (via teleconference), testified against SB 38. He stressed that the employees were already covered by occupational death benefits. If SB 38 passed, He thought it was a poor time to add benefits that would increase the unfunded liability. He indicated we should be working to reduce the unfunded liability, and not add benefits. Co-Chair Stedman pointed out the new fiscal impact note from the Department of Administration, for a zero-cost in FY 2013. However, the there was an anticipated $175,000 general fund increase in the annual employer contribution amount beginning in FY 2014, with incremental increases in the following years. He stressed that there would be an impact on the unfunded liability. 10:07:23 AM Senator Olson wondered what community contribution would be. Senator Meyer replied that the local contribution was currently 22 percent. Senator McGuire referenced Title 14.43.085. Senator Meyer thanked the committee. SB 38 was HEARD and HELD in committee for further consideration. 10:09:33 AM AT EASE 10:13:39 AM RECONVENED