SB 38-POLICE & FIREFIGHTER DEATH BENEFITS  1:31:15 PM CHAIR DENNIS EGAN announced SB 38 to be up for consideration. SENATOR KEVIN MEYER, sponsor of SB 38, said this measure provides a one-time payment of $100,000 for a surviving spouse or dependent children of the peace officer or fire fighter who dies in the line of duty. The benefit would come out of the pension fund that that members already pay into. No new state dollars are anticipated to fund this program. The beneficiaries would be the fire fighters, police officers and others in similar positions that pay into the PERS program. This is a one- time benefit that would help families who must deal with a substantial loss of income, expenses (including funeral costs), travel and the aftermath of a tragedy. Fortunately, not many police officers or fire fighters die in the line of duty, but it does happen. 1:32:46 PM SENATOR DAVIS joined the committee. BRIAN PARTCH, Alaska Professional Firefighters Association, said he was available to answer questions. MIKE BARNHILL, Deputy Commissioner, Department of Administration (DOA), reviewed the fiscal note for SB 38. A letter from Buck Consultants, the state's actuary, was attached. He explained that AS 42.08.036 requires getting an actuarial analysis when a bill impacts the state's retirement system. Because this bill would offer members of PERS with both defined benefit (DB) and defined contribution (DC) plans a new retirement benefit, it creates a modest fiscal note. Buck Consultants indicates an additional $140,000 for the FY13 DB plan that increases modestly going forward and an additional cost of $35,000 for the DC plan that also increase slightly going forward. The two figures were added for purposes of the fiscal note. 1:36:41 PM SENATOR PASKVAN asked what the actuarial death rate is and how those affect the base rate. MR. BARNHILL responded that he is not an actuary, but generally he thought the actuary looks at the historical payment of the plan had it been in place for a number of years and projects it forward. That suggests to him that this benefit would tapped about once a year in the DB plan, but he was not certain that had been the actual experience. It would be less for the DC plan because the membership at this time is smaller. These numbers might have some element of caution in them. SENATOR PASKVAN asked if the fiscal impact of this change is miniscule compared to the whole plan. MR. BARNHILL answered $100,000 is a small amount when the DB plan has $11 billion in assets. CHAIR EGAN said hopefully it wouldn't be utilized. 1:39:06 PM CHAIR EGAN closed public testimony and held SB 38.