I hate to say it AKfox but the oil boom is long gone, all the "easy oil" has been extracted. The $3 billion transfer was initiated by the legislature to cover underfunded liabilities (now estimated at $12 billion). This goes back to 2006 when Murkowski and the legislature switched retirement plans from PERS to a 401K defined benefit plan. This action stopped future contributions to PERS by those now in the 401K plan. With no continued infusion and underfunding by the legislature the unfunded amount grew to $15 billion. The $3 billion infusion was proposed by Parnell in 2013 but pushed back by the legislature as paying into the underfunded retirement wasn't sexy and the legislature preferred the money for over things. 
Please provide reference that the majority of those retired don't live in Alaska. 2014 data I looked at show 4% of seniors leaving Alaska.
As for your friend on welfare, what did they do  in 2012 and 2013 when fuel prices were higher and PFDs were $878 and $900?