SENATE BILL NO. 1259

View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and Underline. Text to be removed has been marked with Strikethrough and Italic. How these codes are actually displayed will vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating text to be removed.

Bill Status



S1259.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to require that
members account numbers rather than social security numbers be specified in
approved domestic retirement orders; to delete the requirement that social
security numbers be provided for alternate payees in domestic retirement
orders; and to require that social security numbers of alternate payees be
provided to the Public Employee Retirement System Board prior to the
approval of domestic retirement orders.
                                                                        
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 - Werk
    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 - 60-0-10
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Black, Block,
      Boe, Bolz, Bradford, Cannon, Clark, Collins, Crow, 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, Campbell, Jaquet, Moyle, Raybould,
      Ridinger, Roberts, Stevenson, Mr. Speaker
    Floor Sponsor - Trail
    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 212
         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. 1259
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING  SECTION  59-1319,
  3        IDAHO  CODE,  TO ELIMINATE THE REQUIREMENT THAT THE SOCIAL SECURITY NUMBER
  4        OF A MEMBER BE SPECIFIED IN AN  APPROVED  DOMESTIC  RETIREMENT  ORDER,  TO
  5        REQUIRE  THAT  THE  ACCOUNT NUMBER OF A MEMBER BE SPECIFIED IN AN APPROVED
  6        DOMESTIC RETIREMENT ORDER, TO ELIMINATE THE REQUIREMENT  THAT  THE  SOCIAL
  7        SECURITY NUMBER OF AN ALTERNATE PAYEE BE SPECIFIED IN AN APPROVED DOMESTIC
  8        RETIREMENT  ORDER  AND  TO  REQUIRE  THAT THE SOCIAL SECURITY NUMBER OF AN
  9        ALTERNATE PAYEE BE PROVIDED TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM BOARD
 10        PRIOR TO A DOMESTIC RETIREMENT  ORDER  BEING  APPROVED  BY  THE  EXECUTIVE
 11        DIRECTOR OF THE PUBLIC EMPLOYEE RETIREMENT SYSTEM OR HIS DESIGNEE.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That  Section 59-1319, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        59-1319.  APPROVED DOMESTIC RETIREMENT  ORDERS  --  REQUIREMENTS.  (1)  An
 16    approved domestic retirement order must meet the following requirements:
 17        (a)  Clearly specify that such order applies to the retirement system;
 18        (b)  Clearly specify the effective date of the order, which is the date of
 19        divorce  or  the date of an earlier property settlement agreement incorpo-
 20        rated into the initial divorce decree, the name, social  security  account
 21        number,  date  of birth, sex, and last known mailing address of the member
 22        and the name, social security number, date of birth, sex, and  last  known
 23        mailing address of the alternate payee covered by the order;
 24        (c)  Provide  for  a  proportional  reduction  of the amount awarded to an
 25        alternate payee in the event that benefits available  to  the  member  are
 26        reduced by law;
 27        (d)  For benefits as defined in chapter 13, title 59, Idaho Code, for mem-
 28        bers  who  are not retired members: (i) clearly specify the amount or per-
 29        centage of the member's taxed and tax deferred  accumulated  contributions
 30        which  are to be credited to the segregated account or the manner in which
 31        such amount or percentage is to be determined, and  (ii)  clearly  specify
 32        the member's months of credited service, either by specific amount or per-
 33        centage,  to  be  transferred  by  the retirement system to the segregated
 34        account or the manner in which such amount or percentage is to  be  deter-
 35        mined.  The  months of credited service transferred to the alternate payee
 36        shall be proportional to the  accumulated  contributions  attributable  to
 37        such  months  of  credited service. Months of credited service transferred
 38        shall be whole months and not partial months;
 39        (e)  For benefits as defined in chapter 13,  title  59,  Idaho  Code,  for
 40        retired  members, clearly specify the amount or percentage of the member's
 41        benefit being paid that the retirement system is to pay to  the  alternate
 42        payee,  or  the  manner in which such amount or percentage is to be deter-
 43        mined; and
                                                                        
                                           2
                                                                        
  1        (f)  For benefits as defined in chapter 14, title 72, Idaho Code,  clearly
  2        specify  the amount or percentage of the member's benefit paid at the time
  3        of retirement which the retirement system  is  to  pay  to  the  alternate
  4        payee, or the manner in which such percentage is to be determined.
  5        (2)  An approved domestic retirement order cannot:
  6        (a)  Require  the retirement system to provide any type or form of benefit
  7        or any option not otherwise provided under the retirement system;
  8        (b)  Require the retirement system to provide  increased  benefits  deter-
  9        mined on the basis of actuarial value;
 10        (c)  Require  the  payment  of  benefits  to  an alternate payee which are
 11        required to be paid to another alternate payee under another order  previ-
 12        ously  determined  to  be an approved domestic retirement order or a court
 13        order entered prior to July 1, 1998;
 14        (d)  Require any action on the part of the retirement system  contrary  to
 15        its governing statutes or rules other than the direct payment of the bene-
 16        fit awarded to an alternate payee;
 17        (e)  Segregate  or  attempt  to  segregate the right to reinstate previous
 18        credited service as provided in section 59-1360, Idaho Code,  unless  such
 19        credited  service  has  been fully reinstated by full payment of contribu-
 20        tions and interest as provided in section 59-1360, Idaho Code;
 21        (f)  Purport to award to the alternate payee any future benefit  increases
 22        that  are  provided  or required by the legislature, except as provided in
 23        subsections (6) and (7) of section 59-1320, Idaho Code; or
 24        (g)  Require the payment of benefits to an alternate payee before the date
 25        on which the alternate payee attains the earliest retirement age under the
 26        retirement system. However, an alternate payee may take a lump sum distri-
 27        bution any time prior to receiving a lifetime annuity payment.
 28        (3)  In no event shall an approved domestic  retirement  order  cause  the
 29    retirement  system  to  pay  any benefit or any amount of benefit greater than
 30    would have been paid had the member's account not been segregated.
 31        (4)  A party to any domestic retirement order  issued  prior  to  July  1,
 32    1998, which distributes benefits defined in either chapter 13, title 59, Idaho
 33    Code,  or  chapter 14, title 72, Idaho Code, may move the court to modify such
 34    order to comply with the requirements of this  section  and  section  59-1320,
 35    Idaho  Code,  provided  that modifications be limited to issues related to the
 36    distribution of benefits defined in either chapter 13, title 59,  Idaho  Code,
 37    or chapter 14, title 72, Idaho Code, and that the value of the distribution is
 38    not materially changed.
 39        (5)  The alternate payee's social security number shall be provided to the
 40    board  before  a  domestic retirement order is approved under section 59-1320,
 41    Idaho Code, in a manner prescribed by the board.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13580
Congress has recently passed legislation that effectively limits
the use of social security numbers in an effort to protect
citizens' private information.  Prudent business practices also
require protection of members' sensitive information.  This bill
does not eliminate the requirement that social security numbers be
provided to PERSI when seeking an approved domestic retirement
order.  However, it eliminates the requirement that social security
numbers be included in domestic retirement orders so they do not
become public records when filed with the court.  Since PERSI
already has access to the member's social security number, only the
member's account number needs to be included in the domestic
retirement order.  The alternate payee's social security number
still needs to be provided to PERSI before an order is approved, in
a manner outside of the order, as determined by the retirement
board.


                         FISCAL  IMPACT
None.


CONTACT   
Name:     Alan Winkle
Agency:   Public Employees Retirement System of Idaho (PERSI)
Phone:    334-2455

Statement of Purpose/Fiscal Impact                     S 1259