Legislature(2025 - 2026)BELTZ 105 (TSBldg)
05/15/2025 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB107 | |
| SR3 | |
| HB17 | |
| HJR13 | |
| HCR6 | |
| SB160 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 160 | TELECONFERENCED | |
| += | SB 107 | TELECONFERENCED | |
| *+ | SR 3 | TELECONFERENCED | |
| *+ | HB 17 | TELECONFERENCED | |
| *+ | HJR 13 | TELECONFERENCED | |
| *+ | HCR 6 | TELECONFERENCED | |
HB 17-DISABLED VETERANS: RETIREMENT BENEFITS
3:49:50 PM
CHAIR KAWASAKI announced the consideration of HOUSE BILL NO. 17
"An Act relating to retirement benefits and military service."
3:50:21 PM
CRAIG VALDEZ, Staff, Representative George Rauscher, Alaska
State Legislature, Juneau, Alaska, presented HB 17 on behalf of
the sponsor and stated that it reintroduces last session's House
Bill 232, was reported out by House Military Veterans' Affairs
and House Finance committees but reached the Rules Committee too
late for House floor. HB 17 supports a small group of Alaska
veterans rated as totally and permanently disabled due to
service-connected conditions. HB 17 allows them to access earned
Public Employees Retirement System (PERS) retirement benefits
regardless of age after at least five years of credited service,
including purchased military time. HB 17 does not create new
benefits or change health eligibility rulesit simply removes
barriers so eligible disabled veterans can retire with dignity.
The Department of Administration identified four known eligible
individuals, with up to 48 potentially qualifying.
3:52:40 PM
AZABEL ORDAZ, Staff, Representative George Rauscher, Alaska
State Legislature, Juneau, Alaska, provided the sectional
analysis for HB 17:
[Original punctuation provided.]
Sectional Analysis
ver A, 3.3.25
Section 1: AS 39.35.370(a)
This section amends AS 39.35.370(a) to add additional
language related to eligibility requirements when a
terminated employee is eligible for a normal
retirement benefit. Specifically adding new
subsections, A and B to section 1, lines 7 through 10.
Section 2:
Repeals three statutes.
3:53:32 PM
CHAIR KAWASAKI announced invited testimony and opened public
testimony on HB 17.
3:53:47 PM
MARK WHISENHUNT, representing self, Palmer, Alaska, testified by
invitation on HB 17 and paraphrased the following written
testimony:
[Original punctuation provided.]
Disabled veterans often face challenges like limited
employment opportunities, difficulties in accessing
quality healthcare, and higher rates of mental health
issues such as PTSD. The transition to civilian life
can be particularly challenging. Some service members
find themselves contributing to their communities
through state and local government roles. As they make
the transition from active duty to civilian life,
veterans often downplay the physical or emotional
impact of their service. However, it's important to
recognize that, for some, these impacts simply cannot
be ignored.
There is a class of veterans who are totally and
permanently disabled, and they can face even greater
struggles to work and keep gainful employment due to
their service-connected disabilities. As such, this
class of veteran often struggles with income
stability.
I am one of those veterans who is now permanently
disabled. Through the years not only have I personally
experienced these challenges, but I have watched many
those I served with face similar obstacles. I recently
realized that something can be done to help, and that
you all have the power and ability to make a
difference.
HB 17 can serve a crucial role in addressing the
unique needs of disabled veterans in state and local
government service. Your support in advocating for and
ensuring the implementation of this legislation
emphasizes our unwavering support to those who have
devoted their lives to serving our country and our
communities with pride and distinction.
HB 17 provides a means for totally and permanently
disabled veterans to access the retirement benefits
they earned through their state and local service, at
a time when they need it the most. It offers vital
support and truly serves as a lifeline for disabled
veterans as they navigate the financial, physical, and
emotional challenges associated with their service-
connected disabilities.
Inaction on this matter would not only run counter to
our shared values but would also be a disservice to
those who have given so much for our nation, our
state, and our local communities.
Less than four percent of all veterans have been
deemed totally and permanently disabled by the
Department of Veterans Affairs. The Veterans Affairs
(VA) authored a study in 2019, on the mortality rate
of 100 percent Service Connected disabled Veterans.
The study revealed that this small group U.S. Veterans
have a significantly diminished life expectancy when
compared to the U.S. civilian population. Women
veterans of this group have a 22 percent reduced life
expectancy and men have an 11 percent reduced life
expectancy. So, what does that mean? It means that
our disabled Veterans are dying, on average, 15 years
sooner than their civilian counterparts.
3:55:13 PM
MR. WHISENHUNT continued with his testimony of HB 17:
So how many totally and permanently disabled veterans
currently have a PERS account? The retirement division
does not collect that data but knowing the make-up of
our state we can get an estimation. The estimation is
derived by looking at the number of applicable members
in the program (13,338). Then you multiply that by the
percent of residents who are veterans (10 percent).
Finally, you multiply that by the percent of veterans
who are totally and permanently disabled (3.6
percent). After doing so, one can estimate the number
of totally and permanently disabled veterans with a
PERS account to be approximately 48 people.
It is my believe that allowing approximately 48
disabled veterans, who have a significantly reduced
life expectancy, to access their hard-earned
retirement funds will in no way cause an undue
hardship to the PERS system.
In conclusion, I humbly ask each of you to stand
united and vote in favor of HB 17. Remember, it is
less than four percent of all veterans that have a
designation of totally and permanently disabled, yet
this modest change is very impactful in supporting
their well-being.
3:56:12 PM
AUSTIN FLAVIN, representing self, Palmer, Alaska, testified in
support of HB 17 and stated that as a lifelong Alaskan and Navy
veteran who served from 20042010 with a combat deployment to
Ramadi, Iraq. He developed chronic obstructive pulmonary disease
(COPD) from service-related exposures and has paid about $30,000
into PERS but can only receive credit for five years of military
service despite a six-year enlistment. He noted that veterans
often have shorter lifespans and face difficulties accessing VA
care. He urged the committee to support HB 17 so veterans like
him can access the benefits they've earned earlier and enjoy a
better quality of life.
4:00:13 PM
CHAIR KAWASAKI referenced fiscal analysis for HB 17, noting that
the last line of the second paragraph states it would create
additional unfunded liability to the PERS plan.
4:00:45 PM
MELINDA VOIGT, Deputy Director, Division of Retirement and
Benefits (DRB), Department of Administration, Juneau, Alaska,
answered questions on HB 17 and explained that the legislation,
as written, has no direct cost to claim benefits once
eligibility requirements are met. However, because the plan
[TRS/PERS indiscernible] would ultimately pay the benefits, it
could create additional unfunded liability.
4:01:36 PM
CHAIR KAWASAKI noted that HB 17 adds a new benefit for
individuals who currently lack benefits, and while the fiscal
note may appear indeterminate or zero. He asked if there still
a cost to the PERS or TRS systems.
4:02:03 PM
MS. VOIGT answered yes.
4:02:11 PM
CHAIR KAWASAKI asked how disability will be defined according to
the Veterans Administration or another legal standard.
4:02:31 PM
MR. VALDEZ replied that the question is addressed in the
Department of Administration's letter, which indicates that
disability determination would likely be based on a VA-issued
DD-214 form showing 100 percent permanent total disability.
[CHAIR KAWASAKI kept public testimony open for HB 17.]
4:03:42 PM
CHAIR KAWASAKI held HB 17 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Public Testimony Opposing HB 17 SA.pdf |
SSTA 5/13/2025 3:30:00 PM SSTA 5/15/2025 3:30:00 PM |
HB 17 |
| USAG Alaska comment on Senate Bill 188 29SEP2025.pdf |
SSTA 5/15/2025 3:30:00 PM |
SB 188 Opposition |