SENATE BILL NO. 1257

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Bill Status



S1257.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to revise
provisions relating to waiver of a death benefit of a member of the Public
Employee Retirement System by a designated beneficiary and the consequences
of such waiver.
                                                                        
01/30    Senate intro - 1st rdg - to printing
02/02    Rpt prt - to Com/HuRes
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/24    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
      Goedde, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
      McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen,
      Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Hill, Richardson
    Floor Sponsor - Noble
    Title apvd - to House
02/25    House intro - 1st rdg - to Com/HuRes
03/10    Rpt out - rec d/p - to 2nd rdg
03/11    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 59-0-11
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Block, Boe,
      Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal,
      Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Harwood, Henbest, Jones, Kellogg,
      Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague,
      Meyer, Miller, Mitchell, Naccarato, Nielsen, Pasley-Stuart, Ring,
      Ringo, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Bedke, Bell, Black, Crow, Jaquet, Moyle,
      Raybould, Ridinger, Roberts, Stevenson, Mr. Speaker
    Floor Sponsor - Bauer
    Title apvd - to Senate
03/16    To enrol
03/17    Rpt enrol - Pres signed
03/18    Sp signed
03/19    To Governor
03/23    Governor signed
         Session Law Chapter 211
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1257
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING  SECTION  59-1361,
  3        IDAHO  CODE, TO REVISE PROVISIONS RELATING TO WAIVER OF A DEATH BENEFIT OF
  4        A MEMBER OF THE PUBLIC EMPLOYEE RETIREMENT SYSTEM BY A DESIGNATED  BENEFI-
  5        CIARY AND THE CONSEQUENCES OF SUCH WAIVER.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 59-1361, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        59-1361.  COMPUTATION OF DEATH BENEFITS -- METHOD OF PAYMENT  --  OPTIONAL
 10    DEATH  BENEFIT.  (1)  The  death  benefit  of an active or inactive member not
 11    vested at time of death shall equal the excess, if any, of the member's  accu-
 12    mulated  contributions at the time the benefit becomes payable over the aggre-
 13    gate of all benefit payments ever made to the member.
 14        (2)  The death benefit of an early or service retired member  shall  equal
 15    the  excess, if any, of the member's accumulated contributions at the time the
 16    member retired over the aggregate of all retirement  allowance  payments  ever
 17    made  to the member, the member's named contingent annuitant, and the optional
 18    death benefit recipient, if any.
 19        (3)  The death benefit of a vested member who, at the  time  of  death  is
 20    either  active,  inactive, or a disability retiree, shall equal the excess, if
 21    any, of two hundred percent (200%) of the member's  accumulated  contributions
 22    at  the  time of death over the aggregate of all benefit payments ever made to
 23    the member and the optional death benefit recipient, if any.
 24        (4)  The death benefit, if any, will be paid to  the  member's  designated
 25    beneficiary  who  is surviving the member at the time the benefit becomes pay-
 26    able. If no beneficiary has been designated or the designated beneficiary  has
 27    predeceased  the  member,  the  death  benefit  will  be paid to the surviving
 28    spouse, and if there is no surviving spouse it will be paid in accordance with
 29    the laws of descent and distribution of the state of Idaho as they may then be
 30    in effect. The designated beneficiary may waive, in writing as required by the
 31    board, any death benefit otherwise payable. and have it paid to  the  member's
 32    surviving  spouse  If  the designated beneficiary waives the death benefit, it
 33    will be paid as if the designated beneficiary predeceased the member.
 34        (5)  When the surviving spouse of a vested member is entitled to  a  death
 35    benefit  under  subsection (3) of this section, the surviving spouse may elect
 36    either an allowance as provided in option 1 under section 59-1351, Idaho Code,
 37    or a one (1) time lump sum death benefit payment as provided in subsection (3)
 38    of this section. The initial retirement allowance  upon  which  such  optional
 39    retirement allowance is based shall be calculated as if the member had retired
 40    immediately  before his death. If the member is not then eligible to receive a
 41    service or early retirement allowance, such initial retirement allowance shall
 42    equal the actuarial equivalent of the retirement allowance  payable  when  the
 43    member  would first be eligible for service or early retirement, calculated as
                                                                        
                                           2
                                                                        
  1    if he had separated from service immediately before his death.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13486
Currently Idaho Code 59-1361(4) permits the designated beneficiary
of a PERSI death benefit to waive the benefit and have it paid to
the member's surviving spouse.  At times, a beneficiary may wish to
waive the death benefit when there is no surviving spouse, or for
reasons other than providing for a surviving spouse.  Because of
the limiting language in section 59-1361, in such situations the
beneficiary has been required to formally renunciate the benefit as
provided in the Uniform Probate Code, section 15-2-801.  This is
burdensome because it requires filing of court documents and
generally requires the services of an attorney.  

    This bill amends section 59-1361(4), Idaho Code, to permit
designated beneficiaries to simply waive their death benefit for
any reason.   Beneficiaries will be able to more easily make the
benefit available to other family members for financial planning
purposes.  The designated beneficiary would only be required to
sign a notarized waiver form rather than having to file court
documents.  If a designated beneficiary waives a benefit under the
amended law, the benefit would be paid as if the beneficiary had
predeceased the member.

                         FISCAL  IMPACT
None.

CONTACT   
Name:     Alan H. Winkle
Agency:   Public Employees Retirement System
Phone:    334-2455

Statement of Purpose/Fiscal Impact                S 1257