SENATE BILL NO. 1270

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Bill Status



S1270.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to unused
sick leave funds administered by the Public Employee Retirement System to
revise provisions applicable to the severance allowance at retirement; to
clarify that amounts shall be determined by the Public Employee Retirement
Board; and to provide that amounts shall be used to pay premiums subject to
applicable federal tax limits for certain insurance programs.
                                                                        
01/18    Senate intro - 1st rdg - to printing
01/19    Rpt prt - to Com/HuRes
02/10    Rpt out - rec d/p - to 2nd rdg
02/13    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Keough
    Floor Sponsor - Stegner
    Title apvd - to House
02/23    House intro - 1st rdg - to Com/HuRes
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 61-0-9
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Denney, Edmunson, Ellsworth, Eskridge,
      Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
      Lake, LeFavour, Loertscher, Martinez, Mathews, McKague, Miller,
      Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
      Ring, Ringo, Roberts, Rusche, Rydalch, Sayler, Schaefer, Shepherd(2),
      Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail,
      Wills, Mr. Speaker
      NAYS -- None
      Absent and excused -- Block, Crow, Deal, Field(18), McGeachin, Sali,
      Shepherd(8), Stevenson, Wood
    Floor Sponsor - Ringo
    Title apvd - to Senate
03/13    To enrol
03/14    Rpt enrol - Pres signed
03/15    Sp signed
03/16    To Governor
03/22    Governor signed
         Session Law Chapter 150
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1270
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO UNUSED SICK  LEAVE  FUNDS  ADMINISTERED  BY  THE  PUBLIC  EMPLOYEE
  3        RETIREMENT  SYSTEM; AMENDING SECTION 33-1228, IDAHO CODE, TO REVISE PROVI-
  4        SIONS APPLICABLE TO THE SEVERANCE ALLOWANCE AT  RETIREMENT;  AND  AMENDING
  5        SECTION  67-5339,  IDAHO CODE, TO CLARIFY THAT AMOUNTS SHALL BE DETERMINED
  6        BY THE RETIREMENT BOARD, TO PROVIDE THAT AMOUNTS SHALL BE USED TO PAY PRE-
  7        MIUMS SUBJECT TO APPLICABLE FEDERAL TAX LIMITS FOR CERTAIN INSURANCE  PRO-
  8        GRAMS AND TO MAKE A TECHNICAL CORRECTION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 33-1228, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        33-1228.  SEVERANCE ALLOWANCE AT RETIREMENT. (1) Upon separation from pub-
 13    lic school employment by retirement in accordance with chapter 13,  title  59,
 14    Idaho Code, an employee's unused sick leave shall be determined based on accu-
 15    mulated  sick  leave earned subsequent to July 1, 1976, as provided by section
 16    33-1218, Idaho Code, and shall be reported by the employer to the Idaho public
 17    employee retirement system. A sum equal to  one-half  (1/2)  of  the  monetary
 18    value  of  such  unused  sick  leave,  calculated  at the rate of pay for such
 19    employee at the time of retirement, as determined  by  the  retirement  board,
 20    shall be transferred from the sick leave account provided by subsection (2) of
 21    this section and shall be credited to such employee's retirement account. Such
 22    sums shall be used by the Idaho public employees' retirement board to continue
 23    to pay, subject to applicable federal tax limits:
 24        (a)  Premiums for the retiree and the retiree's dependents at the rate for
 25        the  active employee's group health, accident long-term care, vision, pre-
 26        scription drug and dental insurance programs as maintained by the employer
 27        for the active employees until the retiree  and/or  the  retiree's  spouse
 28        becomes eligible for medicare at which time the district shall make avail-
 29        able  a supplemental program to medicare for the eligible individual. Upon
 30        the death of the retiree the surviving spouse's health coverage  shall  be
 31        available  and  continued  under  the  same  terms  and  conditions as the
 32        retiree. Coverage may be continued for the retiree's  surviving  dependent
 33        spouse  and  dependents  until  remarriage  of  the  spouse  or  until the
 34        retiree's surviving dependent spouse is eligible for a group  health  pro-
 35        gram by an employer. The medicare supplement program will provide the same
 36        premium  and  benefits for all retirees of all the employers served by the
 37        same insurance carrier. However, a school district may make  available  to
 38        all retirees from that district other benefits in addition to the medicare
 39        supplement  program  and  the  retiree  or the district shall pay for such
 40        additional benefits.
 41        (b)  Premiums at the time of retirement  for  the  retiree  for  the  life
 42        insurance  program  maintained  by  the employer which may be reduced to a
 43        minimum of five thousand dollars ($5,000) of coverage.
                                                                        
                                           2
                                                                        
  1        (2)  The retiree may continue to pay the premiums for  the  health,  acci-
  2    dent,  dental  and  life  insurance to the extent of the funds credited to the
  3    employee's account pursuant to this section and when these funds are  expended
  4    the  premiums  may  be deducted from the retiree's allowance. Upon a retiree's
  5    death, any unexpended sums remaining in the retiree's account shall revert  to
  6    the  sick  leave  account. If funds are not available for payment by the Idaho
  7    public  employee retirement system  from  the  retiree's  surviving  dependent
  8    spouse's  allowance,  the  insurance  carrier shall implement a direct billing
  9    procedure to permit the retiree's surviving spouse to continue coverage.
 10        (3)  Each employer shall contribute to a sick leave account maintained  by
 11    the  public employee retirement system exclusively for the purpose of the pro-
 12    visions of this section. The rate of such contribution each pay  period  shall
 13    consist of a percentage of employees' salaries as determined by the board, and
 14    such  rate  shall  remain  in  effect  until next determined by the board. Any
 15    excess balance in the sick leave account shall be invested, and  the  earnings
 16    therefrom shall accrue to the sick leave account except the amount required by
 17    the  board  to  defray administrative expenses. All moneys payable to the sick
 18    leave account are hereby perpetually appropriated to the board, and shall  not
 19    be included in its departmental budget.
 20        (4)  For  purposes  of  this  section  public  school  employment shall be
 21    defined to permit inclusion of employees of  organizations  funded  by  school
 22    districts or of contributions of employees of school districts.
                                                                        
 23        SECTION  2.  That  Section 67-5339, Idaho Code, be, and the same is hereby
 24    amended to read as follows:
                                                                        
 25        67-5339.  USE OF UNUSED SICK LEAVE. (1) Upon separation from state employ-
 26    ment by retirement in accordance with chapter 13, title 59 or chapter 1, title
 27    33, Idaho Code, an employee's unused sick leave shall be determined  based  on
 28    accumulated  sick  leave  earned  subsequent  to  July  1,  1976, and shall be
 29    reported by the employer to the public employee retirement system. Upon  sepa-
 30    ration  from  state  employment  by  retirement in accordance with chapter 20,
 31    title 1, Idaho Code, an employee's unused sick leave shall be determined based
 32    on accumulated sick leave earned subsequent to July  1,  2000,  and  shall  be
 33    reported by the employer to the public employee retirement system. A sum equal
 34    to  one-half  (1/2),  or  the maximum amount allowed by subsection (2) of this
 35    section, whichever is the lesser, of the monetary value of  such  unused  sick
 36    leave,  calculated at the rate of pay for such employee at the time of retire-
 37    ment, as determined by the retirement board, shall  be  transferred  from  the
 38    sick  leave  account  provided  by subsection (3) of this section and shall be
 39    credited to such employee's retirement account. Such sums shall be used by the
 40    Idaho public employee retirement board to pay premiums, subject to  applicable
 41    federal tax limits, for such group health, accident, dental, vision, long-term
 42    care,  prescription  drug  and life insurance programs as may be maintained by
 43    the state, to the extent of the funds credited to the employee's account  pur-
 44    suant to this section. Upon an employee's death, any unexpended sums remaining
 45    in the account shall revert to the sick leave account.
 46        (2)  For  the  purposes  of  determining the monetary value of unused sick
 47    leave, the maximum unused sick leave which may be considered, shall be:
 48        (a)  During the first ten thousand four hundred (10,400) hours of credited
 49        state service, the maximum unused sick leave which may be considered shall
 50        be four hundred twenty (420) hours;
 51        (b)  During the second ten thousand four hundred (10,400) hours  of  cred-
 52        ited  state service, the maximum unused sick leave which may be considered
 53        shall be four hundred eighty (480) hours;
                                                                        
                                           3
                                                                        
  1        (c)  During the third ten thousand four hundred (10,400) hours of credited
  2        state service, the maximum unused sick leave which may be considered shall
  3        be five hundred forty (540) hours; and
  4        (d)  Thereafter, the maximum unused sick leave  which  may  be  considered
  5        shall be six hundred (600) hours.
  6        (3)  Each  employer  in  state government shall contribute to a sick leave
  7    account maintained by the public employee retirement  system  exclusively  for
  8    the  purpose of the provisions of this section. The rates of such contribution
  9    each pay period shall consist of a percentage of employees' salaries as deter-
 10    mined by the board, and such rates shall remain in effect  until  next  deter-
 11    mined  by  the  board.  Any  excess balance in the sick leave account shall be
 12    invested, and the earnings therefrom shall accrue to the  sick  leave  account
 13    except the amount required by the board to defray administrative expenses. All
 14    moneys  payable  to the sick leave account are hereby perpetually appropriated
 15    to the board, and shall not be included in its departmental budget. The  state
 16    insurance  fund  and  public health districts shall be considered employers in
 17    state government for purposes of participation under this section.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                            RS 15333c1

Idaho Code  67-5339 and Idaho Code  33-1228 provide limited
benefits, based on accrued unused sick leave, to retirees of the
state and school districts respectively, for the payment of
certain qualified health related expenses. This bill amends both
sections to better define what expenses can be covered with
unused sick leave funds. It also makes amendments to better
define "rate of pay" for purposes of calculating unused sick
leave benefits. Finally, it emphasizes the broad authority of the
PERSI board to make necessary adjustments to reported "rate of
pay" and to applicable contribution rates in order to maintain
equity in the respective funds.



                            FISCAL NOTE

None.


                    
CONTACT
                    
Name:    Alan Winkle
Agency:  PERSI
Phone:   334-2455
   
       
STATEMENT OF PURPOSE/FISCAL NOTE                   S 1270