Sponsor Statement for SB 4

LB Sabbatical to PFD Eligibility

As we all know, many of Alaska's elderly residents often escape to warmer climates during the harshest winter months. 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, who as a group rely the heaviest on their dividends for financial survival, are often on legitimate sabbaticals created by the Legislature for Longevity Bonus purposes.

The entire thrust of SB 4 is to conform eligibility requirements for the Permanent Fund Dividend with the unpaid sabbatical provisions in §47.45.035 governing the Longevity Bonus Program.

Under this section, a 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 within a 30 day period before leaving Alaska may make application upon return to the state to again receive the bonus. However, by law, an unpaid sabbatical recipient may only take one sabbatical every five years.

Simply put, SB 4 would allow a senior citizen to take a sabbatical from the state no more than once every 5 years without losing eligibility for the Permanent Fund Dividend. This bill does not open a loophole in the eligibility process for receipt of the Permanent Fund. It is specifically tailored to allow only those who are on a legitimate sabbatical as recognized by §47.45.035 to remain eligible for receipt of the Permanent Fund Dividend.

From a policy perspective, SB 4 is good government at work as it encourages seniors to maintain residence in the state by not punishing them financially for leaving on a legitimate sabbatical as recognized by the Longevity Bonus Program. Further, SB 4 encourages travel which in these tight budgetary times will force savings from payments made under the Longevity Bonus program.

ss: sb4: 1/30/97: mj