Committee hears bill to let totally and permanently disabled veterans access PERS retirement without penalty

House Special Committee on Military and Veteran Affairs Chair Representative Eisheide on Thursday, Feb. 18, 2025, opened a first hearing on House Bill 17, a reintroduced measure to allow veterans who are classified as "totally and permanently disabled" to access their Public Employees' Retirement System (PERS) retirement benefits without penalty.

The bill, sponsored by Representative Rauscher (House District 29), would amend AS 39.35.370(a) and related sections to permit eligible, totally and permanently disabled veterans to receive normal retirement benefits they have already earned rather than remain subject to existing access restrictions. "HB 17 does not expand benefits. It simply removes unnecessary barriers to access for disabled veterans who already have fulfilled their public service," Rauscher said during his presentation.

Why it matters: Supporters told the committee the change would give a small group of veterans earlier access to earned retirement funds at a time of heightened need. Invited witness Mark Weisenhunt, a veteran and advocate, testified the Department of Administration does not currently track how many totally and permanently disabled veterans hold PERS accounts but used state demographics and VA disability rates to estimate roughly 48 affected individuals. He cited a 2019 Department of Veterans Affairs analysis showing reduced life expectancy for this group and urged lawmakers to act.

Bill details and scope: Craig Valdez, chief of staff to Representative Rauscher, said the bill amends AS 39.35.370(a) (the bill text adds new subsections) and repeals conforming statutes as recommended by legal counsel. Valdez said the measure affects PERS tiers 1, 2 and 3 and does not apply to members hired after February 2006 (tier 4 / defined-contribution hires). The bill does not change benefit formulas; it changes eligibility for accessing normal retirement benefits for qualifying veterans.

Questions from committee members focused on definitional and coverage issues. Representative Allard asked whether the committee had a legal definition of "totally and permanently disabled." Valdez answered that the designation is made by the U.S. Department of Veterans Affairs and that the sponsor could provide the statutory definition. Representative Gray sought and received clarification that the change would allow access at normal retirement age or upon a qualifying permanently and totally disabled designation and that affected members need not reach age 60 if they meet the disability criteria and credited-service thresholds.

Committee members pressed for numbers. Valdez said the Department of Administration had data only through 2023 and was working to update its counts; he described previously reported counts of former military members in tiers 2 and 3 but said a comprehensive tally of permanently and totally disabled veterans with PERS accounts is not tracked by the retirement division. Director Mindy Voigt of the Division of Retirement and Benefits (Department of Administration) was on the line and was identified as the technical contact for follow-up questions.

Public testimony: Mark Weisenhunt, identified himself as an advocate for disabled veterans and a resident of the Mat-Su Borough. He described employment and health-care challenges faced by some disabled veterans and argued HB 17 would provide financial stability for those with a VA designation of totally and permanently disabled. Using a rough calculation—13,338 applicable PERS members × Alaska's estimated 10% veteran population × 3.6% VA rate for totally and permanently disabled veterans—Weisenhunt estimated about 48 potentially affected individuals. He told the committee that the VA study he cited found reduced life expectancy in that cohort and asked members to support the bill.

Opposition or requests for amendment: Several members asked whether the bill's threshold (references in testimony to a percentage disability) should be broadened. Representative Fields and others asked whether the sponsor would consider amendments to include tier 4 members (those hired after Feb. 2006) or to change the disability-percentage threshold; Rauscher expressed openness to discussions but did not commit to specific amendments at the hearing.

Next steps and procedural action: Chair Eisheide set an amendment deadline for Monday, Feb. 24, 2025, at noon and "set the bill aside for today." No committee vote on the bill occurred at this hearing.

Ending note: Committee members said they would follow up with the sponsor and Department of Administration staff for missing numbers and the precise legal definition of "totally and permanently disabled" before the amendment deadline.