Sponsor Statement for HB 67

Sabbatical to Permanant Fund Eligibility

Many of Alaska's elderly residents often find themselves wanting to or needing to escape to warmer climes during the harshest of winter months. The same residents find themselves needing to leave to care for family members or attend to business concerns. Unfortunately, an elderly resident who leaves the state for more than 3 months loses eligibility for the Permanent Fund Dividend. While this seems practical at first blush, our senior citizens, rely the heavily on their dividends for their very financial survival, and are often on legitimate sabbaticals created by the Legislature for Longevity Bonus purposes.

HB 67 would conform eligibility requirements for the Permanent Fund Dividend with those of the unpaid sabbatical provisions in A.S. 47.45.035 governing the Longevity Bonus Program.

The recipient of the Longevity Bonus may take an unpaid sabbatical for a period of up to 12 months. A recipient having properly notified the Department of Administration 30 days before leaving the State of Alaska may make application upon return to the state to again receive the bonus. Moreover, an unpaid sabbatical recipient may only take one such sabbatical every five years.

Put simply , HB 67 would allow a senior citizen to take a sabbatical from the State of Alaska no more than once every 5 years without losing eligibility for the Permanent Fund Dividend. This bill does not constitute a loosening of the eligibility process for receipt of the Permanent Fund. It is tailored specifically to allow those who are on a justifiable sabbatical as recognized by §47.45.035 to remain eligible for the Permanent Fund Dividend.

From a policy perspective, HB 67 would be a great achievement as it encourages senior citizens to maintain residence in the State of Alaska by not punishing them financially for leaving on a justifiable sabbatical as recognized by the Longevity Bonus Program. Further, HB 67 encourages Alaska's seniors citizens to travel and conduct business for themselves and others which in these tight budgetary times will force savings out of payments made under the Longevity Bonus program.