Senate Finance hears bill to let totally disabled veterans access PERS retirement early; fiscal impact unclear

April 14, 2026 — The Alaska Senate Finance Committee heard invited and public testimony on House Bill 17 on Wednesday, a proposal to allow veterans who have a 100% VA total and permanent service‑connected disability to access accrued Public Employees' Retirement System (PERS) benefits at any age without penalty and to count purchased military service toward the 30‑year service requirement.

Senator George Rauscher, the bill sponsor, told the committee HB 17 "would allow veterans that receive a 100% and total disability rating from the VA to access their accrued PERS benefits at any age without a penalty" and that the measure "removes unnecessary hurdles for disabled veterans." He described the change as targeted to a small group of veterans with permanent disabilities who face employment and life‑expectancy challenges.

Supporters, including veteran Mark Weisenhunt, urged the committee to advance the bill. Weisenhunt said the change "allows totally and permanently disabled veterans to access the retirement benefits they've already earned through their public service at a time they need it most," and cited a 2019 VA study he said showed reduced life expectancy for veterans with 100% service‑connected disabilities.

The committee focused on technical and fiscal mechanics. Christopher Noble of the Division of Retirement and Benefits told senators that an actuarial cost estimate could not be calculated with confidence because key variables are unknown — the number of members who would opt in, how many years of military service each would claim, and other endpoints. Noble said those uncertainties led the division to provide an indeterminate fiscal note.

Senator Stedman and other members expressed concern that any additional unfunded liability could shift costs to the state because employer contributions are capped at 22% of pay, meaning excess costs could require state contribution. Stedman asked the division to review repealer sections and the 8.5% purchase-rate math cited in materials.

Witnesses clarified existing purchase rules: members may buy up to five years of eligible military service at approximately 8.5% of an annualized salary per year, and that purchase remains the individual's responsibility. Committee discussion and testimony indicated HB 17 would not relieve veterans of the purchase cost; rather, the bill would allow purchased service to apply to satisfying the 30‑year retirement requirement rather than being added only after that threshold.

Public testimony from Mat‑Su residents Jason Ortiz and Austin Flavin described personal experiences with military service, purchased service, and service‑connected disabilities; both urged support for the bill as a narrow, optional change to help veterans access earned benefits earlier.

The committee asked for written clarifications from the Division of Retirement and Benefits on the statutory repealers and the bill's interaction with vesting and special sectors (for example, peace officers and firefighters). The committee set HB 17 aside for further consideration pending written responses and additional analysis.

Status: HB 17 was heard and set aside; no vote was taken. The committee requested written fiscal and statutory clarifications from the Division of Retirement and Benefits.