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.