2016-05-23                     House Journal                      Page 2964
HB 4002                                                                                                                       
HOUSE BILL NO. 4002 by the House 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 Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Administration                                                                                               
                                                                                                                                
The Governor's transmittal letter dated May 23, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
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.                                                                                           
                                                                                                                                
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                                                          

2016-05-23                     House Journal                      Page 2965
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"