HOUSE BILL NO. 232 "An Act relating to retirement benefits and military service." 4:32:57 PM REPRESENTATIVE GEORGE RAUSCHER, SPONSOR, read the sponsor statement (copy on file): House Bill 232 allows Veterans who are totally and permanently disabled to access their accrued PERS retirement benefits without penalty. HB 232 also allows military service, which has been purchased in accordance with the PERS standards to count towards the credited service requirements for normal retirement. Veterans who are totally and permanently disabled struggle to work and keep gainful employment due to their service-connected disabilities. As such, this class of veterans often struggles with income stability. If HB 232 becomes law, it will provide disabled veterans with access to their PERS retirement benefits at a time when they need it most. HB 232 does not provide any additional benefits beyond those rightfully earned by veterans through their dedicated public service. By passing HB 232, the Legislature will help provide stability to our disabled veterans when they need it most. Representative Rauscher asked his staff to review the sectional analysis. 4:34:31 PM RYAN MCKEE, STAFF, REPRESENTATIVE GEORGE RAUSCHER, went through the sectional analysis (copy on file): 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. Mr. McKee believed there was an individual online to provide invited testimony. MARK WHISENHUNT, SELF, PALMER (via teleconference), spoke in support of the legislation and provided prepared remarks: I am advocating for disabled veterans. I hope you all support HB 232 for the following reasons. 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, its important to recognize that for some, these impacts simply cannot be ignored. There's a class of veterans who are totally and permanently disabled and they face even greater struggles for work and 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. I served my country for five years and I would do it again without hesitation. I did not fully realize the impact of service connected conditions when I first finished my active duty time. Through the years, not only have I personally experienced these challenges, but I have watched many of those I served with face similar obstacles. I recently realized that something could be done to help and that you all have the power and ability to make a difference. HB 232 could serve a crucial role in addressing the unique needs of disabled veterans in state and local government service. Your support and 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 community with pride and distinction. HB 232 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 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 disability. Inaction on this matter would not only run counter to our shared values, but it would be a disservice to those who have given so much for our nation, our state, and our local communities. I'd like to share some statistics in response to the fiscal note. Less than 4 percent of all veterans have been deemed totally and permanently disabled by the Department of Veterans Affairs (VA). The VA authored a study in 2019 on the mortality rate of 100 percent service-connected disabled veterans. The study revealed the small group of U.S. veterans have a significantly diminished life expectancy when compared to the civilian population of the United States. Women veterans have a 22 percent reduced life expectancy and men have an 11 percent reduced life expectancy. It means that our disabled veterans are dying on average, 15 years sooner than their civilian counterparts. So how many disabled veterans currently have a PERS account? The Retirement Division does not collect that data, but in the makeup of our state, we can get an estimation. The estimation is derived by looking at the number of applicable members and program, which is currently 13,338. You multiply that by the percent of residents who are veterans, which is approximately 10 percent. Finally, you multiply the percent of veterans who are permanently and totally disabled, which is about 3.6 percent. After doing so, one can estimate the total number of totally and permanently disabled veterans with a PERS account to be approximately 48 people. It's my belief 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 on the PERS system. In conclusion, I humbly ask each of you to stand united and vote in favor of HB 232. Remember, it's less than 4 percent of all veterans that have that designation of totally and permanently disabled. Yet this modest change will be very impactful in supporting their wellbeing. Mr. Whisenhunt was available for questions and thanked the committee for its service. 4:40:35 PM Representative Hannan thanked Mr. Whisenhunt for doing the math. Her primary concern was about the number of people the bill impacted because the definitions were very narrow. She looked at the fiscal note and stated her understanding that the bill allowed a veteran to use the military service time if they were fully disabled due to combat time to draw their Public Employees' Retirement System (PERS) benefit. She observed that the fiscal note seemed to say that a health benefit was not included. She asked if individuals with a service related full disability would already be eligible for full medical coverage through the VA. Mr. Whisenhunt responded affirmatively. Co-Chair Foster asked for closing remarks from the bill sponsor. Representative Rauscher thanked the committee for hearing the legislation. He stated that it was tough for service men and women who defend Americans' lives to get through some of the things people took for granted such as jobs, income, and providing for their families. He appreciated the committee's consideration of the bill. Co-Chair Foster set an amendment deadline for Tuesday, April 30 at 5:00 p.m. HB 232 was HEARD and HELD in committee for further consideration.