2006 Legislation
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HOUSE BILL NO. 451 – Firemen’s retirement fund, benefits

HOUSE BILL NO. 451

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H0451.......................................by COMMERCE AND HUMAN RESOURCES
FIREMEN'S RETIREMENT FUND - Amends existing law relating to the Firemen's
Retirement Fund to revise provisions applicable to approved domestic
retirement orders; to provide that certain benefits may be transferred
pursuant to an approved domestic retirement order; to revise provisions
applicable to death benefits of surviving spouses and children of certain
firefighters; and to provide applicability.
                                                                        
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to Com/HuRes
02/02    Rpt out - rec d/p - to 2nd rdg
02/03    2nd rdg - to 3rd rdg
02/08    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bradford
    Floor Sponsor - Schaefer
    Title apvd - to Senate
02/09    Senate intro - 1st rdg - to Com/HuRes
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Gannon
    Floor Sponsor - Stegner
    Title apvd - to House
02/28    To enrol
03/01    Rpt enrol - Sp signed
03/02    Pres signed
03/03    To Governor
03/08    Governor signed
         Session Law Chapter 19
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 451
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE FIREMEN'S RETIREMENT FUND;  AMENDING  SECTION  59-1320,  IDAHO
  3        CODE,  TO  REVISE  PROVISIONS  APPLICABLE  TO APPROVED DOMESTIC RETIREMENT
  4        ORDERS; AMENDING SECTION 72-1422, IDAHO CODE, TO PROVIDE THAT CERTAIN BEN-
  5        EFITS MAY BE TRANSFERRED  PURSUANT  TO  AN  APPROVED  DOMESTIC  RETIREMENT
  6        ORDER; AMENDING SECTION 72-1461, IDAHO CODE, TO REVISE PROVISIONS APPLICA-
  7        BLE  TO  DEATH  BENEFITS OF SPOUSES AND SURVIVING CHILDREN OF FIREFIGHTERS
  8        KILLED IN PERFORMANCE OF DUTY; AMENDING SECTION 72-1462,  IDAHO  CODE,  TO
  9        REVISE PROVISIONS APPLICABLE TO DEATH BENEFITS OF SPOUSES OF RETIRED FIRE-
 10        FIGHTERS;  AMENDING  SECTION  72-1463,  IDAHO CODE, TO CLARIFY THE BENEFIT
 11        PAID TO A RETIRED FIREFIGHTER'S CHILDREN UPON THE DEATH OF  THE  SURVIVING
 12        SPOUSE;  AMENDING SECTION 72-1464, IDAHO CODE, TO REVISE PROVISIONS APPLI-
 13        CABLE TO DEATH BENEFITS OF SURVIVING SPOUSES AND CHILDREN OF CERTAIN FIRE-
 14        FIGHTERS AFTER FIVE YEARS OF SERVICE AND TO  MAKE  TECHNICAL  CORRECTIONS;
 15        AMENDING  SECTION  72-1465, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO
 16        DEATH BENEFITS OF SURVIVING SPOUSES AND CHILDREN OF  CERTAIN  FIREFIGHTERS
 17        AFTER  TWENTY-FIVE YEARS OF SERVICE AND TO MAKE TECHNICAL CORRECTIONS; AND
 18        TO PROVIDE APPLICABILITY.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION 1.  That Section 59-1320, Idaho Code, be, and the same  is  hereby
 21    amended to read as follows:
                                                                        
 22        59-1320.  APPROVED  DOMESTIC  RETIREMENT ORDERS -- APPLICATION AND EFFECT.
 23    (1) The executive director of the public employee  retirement  system  or  his
 24    designee  upon  receipt of a copy of a domestic retirement order, shall deter-
 25    mine whether the order is an approved  domestic  retirement  order  and  shall
 26    notify  the  member and the alternate payee of the determination within ninety
 27    (90) days. Orders shall be applied prospectively only from the  first  day  of
 28    the  month  following  the  order  being determined to be an approved domestic
 29    retirement order. The retirement system shall then pay benefits or establish a
 30    segregated account in accordance with the order. When established, the  segre-
 31    gated  account  will  consist  of  accumulated contributions identified in the
 32    approved domestic retirement order together  with  accrued  interest  on  that
 33    amount from the effective date to the date of segregation.
 34        (2)  If  the order is determined not to be an approved domestic retirement
 35    order, or if no determination is issued within ninety (90) days, the member or
 36    the alternate payee named in the order may move the  court  which  issued  the
 37    order  to  amend  the order so that it will be approved. The court that issued
 38    the order or which would otherwise  have  jurisdiction  over  the  matter  has
 39    jurisdiction  to  amend the order so that it will be qualified even though all
 40    other matters incident to the action or proceeding have been fully and finally
 41    adjudicated.
 42        (3)  The executive director of the retirement system to which  a  domestic
 43    retirement  order  is  submitted  or  his  designee has exclusive authority to
                                                                        
                                           2
                                                                        
  1    determine whether a domestic retirement order is an approved domestic  retire-
  2    ment order. If it is determined that a domestic retirement order does not meet
  3    the  requirements  for an approved domestic retirement order, both the issuing
  4    court and the parties to the order shall be notified so action may be taken to
  5    amend the order.
  6        (4)  Because an  approved  domestic  retirement  order  cannot  cause  the
  7    retirement  system  to  pay  any benefit or any amount of benefit greater than
  8    would have been paid had the member's account not  been  segregated,  disputes
  9    related to benefits paid under an approved  domestic retirement order shall be
 10    resolved between the parties to the order by the court issuing that order. The
 11    retirement system shall not be made a party to the action. Any cost, including
 12    attorney's fees, incurred by the retirement system as a result of such actions
 13    shall  be  distributed  by  the  court  among  the parties and included in any
 14    amended order issued.
 15        (5)  Unless the approved domestic retirement order specifies  differently,
 16    if  the member has a right to a vested benefit as of the effective date of the
 17    order, then both the member and the alternate payee shall have a  right  to  a
 18    vested  benefit  after the transfer of months of service even if the member or
 19    the alternate payee has less than sixty (60) months of membership service.
 20        (6)  For benefits under chapter 13, title  59,  Idaho  Code,  for  members
 21    other  than  retired  members,  if the domestic retirement order awards to the
 22    alternate payee a portion of the member's accumulated contributions the alter-
 23    nate payee shall be entitled to all the same benefits and rights  an  inactive
 24    member has under chapter 13, title 59, Idaho Code. The alternate payee's bene-
 25    fit  calculation for a lifetime annuity shall use the member's average monthly
 26    salary and base period as of the effective date of the order and the months of
 27    credited service transferred to the alternate payee's segregated account.  The
 28    benefit  calculation  shall use the alternate payee's age with the appropriate
 29    reduction factors based on the alternate payee's age at the time of payment of
 30    the lifetime annuity.  For the purpose of the lifetime annuity,  the  bridging
 31    factor,  as  specified  in  section 59-1355, Idaho Code, shall be the bridging
 32    factor between the effective date of the order or the last  day  of  contribu-
 33    tions  by  the  member  prior to the effective date of the order, whichever is
 34    earliest, and the date of the first lifetime annuity payment to the  alternate
 35    payee.  The alternate payee shall have the right to select any of the optional
 36    retirement  allowances  provided in section 59-1351, Idaho Code. The alternate
 37    payee shall have the right to name a beneficiary.
 38        (7)  For benefits defined under chapter 13,  title  59,  Idaho  Code,  for
 39    retired  members, and for benefits under chapter 14, title 72, Idaho Code, the
 40    retirement system shall include in the alternate payee's amount or  percentage
 41    of  the  benefit,  on  a proportional basis, all future adjustments, including
 42    postretirement increases that are granted by the retirement  system,  and  any
 43    death  benefit.  Furthermore,  upon  the death of the alternate payee, his/her
 44    percentage of the benefit will revert to the person or persons, including  the
 45    member,  who  are  entitled to the benefit under the system at the time of the
 46    alternate payee's death.
 47        (8)  For benefits under chapter 13, title 59, Idaho Code, for retired mem-
 48    bers, the form of payment previously  elected  by  the  member  under  section
 49    59-1351,  Idaho Code, cannot be changed by a domestic retirement order, except
 50    that a member's benefit may be adjusted as  provided  in  section  59-1351(2),
 51    Idaho  Code, if an alternate payee waives all survivor benefits otherwise pay-
 52    able as a contingent annuitant as provided  in  section  59-1319(1)(e),  Idaho
 53    Code. Furthermore, no segregated account will be established by the retirement
 54    system for the alternate payee. Upon the death of the alternate payee, his/her
 55    percentage  of the benefit will revert to the person or persons, including the
                                                                        
                                           3
                                                                        
  1    member, who are entitled to the benefit under the system at the  time  of  the
  2    alternate payee's death.
  3        (9)  For benefits defined under chapter 14, title 72, Idaho Code, the ben-
  4    efit  paid  transferred to the alternate payee shall start when the retirement
  5    system begins paying benefits to the member, surviving  spouse,  or  surviving
  6    children of the member. Unless otherwise ordered, in the event the member dies
  7    and  leaves  a  surviving  spouse, during the surviving spouse's lifetime, the
  8    alternate payee shall be paid his/her designated amount or percentage  of  the
  9    benefit. Unless otherwise ordered, if there is no surviving spouse or the sur-
 10    viving  spouse  dies  and there is a surviving child or children of the member
 11    who are under eighteen (18) years  of age and unmarried,  then  the  alternate
 12    payee  shall  be  paid  his/her designated amount or percentage of the benefit
 13    until the child or children reach the age of eighteen (18) years  or  marries,
 14    whichever  occurs  first The transferred benefit shall be payable only for the
 15    lifetime of the alternate payee and it shall not revert to the member, surviv-
 16    ing spouse or surviving children of the member.
 17        (10) The retirement system shall be authorized to issue any and all appro-
 18    priate tax forms or reports for any payments made to the alternate payee.
 19        (11) The retirement system, the retirement board, and officers and employ-
 20    ees of the retirement system shall not be liable to any person for making pay-
 21    ments of any benefits in  accordance  with  an  approved  domestic  retirement
 22    order.
                                                                        
 23        SECTION  2.  That  Section 72-1422, Idaho Code, be, and the same is hereby
 24    amended to read as follows:
                                                                        
 25        72-1422.  BENEFITS EXEMPT FROM EXECUTION -- NOT ASSIGNABLE. No benefits or
 26    payments payable under the provisions of this chapter shall be subject to exe-
 27    cution, nor assignable, nor shall the same be hypothecated or  in  any  manner
 28    encumbered,  except  as  ordered  by a court to be transferred to an alternate
 29    payee in an approved  domestic  retirement  order,  as  provided  in  sections
 30    59-1319 and 59-1320, Idaho Code.
                                                                        
 31        SECTION  3.  That  Section 72-1461, Idaho Code, be, and the same is hereby
 32    amended to read as follows:
                                                                        
 33        72-1461.  DEATH BENEFITS -- SPOUSE AND THE SURVIVING CHILD OR CHILDREN  OF
 34    FIREFIGHTER KILLED IN PERFORMANCE OF DUTY. (1) In the event a paid firefighter
 35    is  killed  or  sustains injury from which death results, while in the perfor-
 36    mance of duty and leaves surviving a spouse or a spouse with the firefighter's
 37    surviving child or children, the spouse, during his or her lifetime, shall  be
 38    paid from the public employee retirement account the same pension the deceased
 39    firefighter  would  have been entitled to had the deceased firefighter retired
 40    as of the date of death, but in no event less than a monthly sum equal to: (a)
 41    sixty-five percent (65%) of the average paid firefighter's salary or  wage  in
 42    this  state, if the deceased firefighter was an Option I firefighter, less any
 43    portion of the benefit transferred to an alternate payee as provided  in  sec-
 44    tions 59-1319 and 59-1320, Idaho Code; or, (b) sixty-five percent (65%) of the
 45    deceased  firefighter's  average  monthly salary or wage, based on his average
 46    final compensation, if the deceased firefighter was an Option II  firefighter,
 47    less  any portion of the benefit transferred to an alternate payee as provided
 48    in sections 59-1319 and 59-1320, Idaho Code. If the  surviving  spouse  should
 49    die,  the  full  retirement  pay  shall be paid to the firefighter's surviving
 50    child or children until they reach the age of eighteen  (18)  years  or  shall
 51    marry,  whichever occurs first; provided, however, that if said deceased fire-
                                                                        
                                           4
                                                                        
  1    fighter shall have died without leaving a surviving spouse and leaving surviv-
  2    ing a child or children, said firefighter's surviving child or children  shall
  3    be  entitled  to  be paid from the public employee retirement account the same
  4    pension the deceased firefighter would have been entitled to had the  deceased
  5    firefighter  retired  as of the date of death, less any portion of the benefit
  6    transferred to an alternate payee as provided in sections 59-1319 and 59-1320,
  7    Idaho Code, until they shall reach the age of eighteen  (18)  years  or  shall
  8    marry, whichever occurs first.
  9        (2)  The monthly benefits provided for in this section shall vary annually
 10    according  to  the  cost of living adjustment as set forth in section 72-1471,
 11    Idaho Code.
 12        (3)  Those benefits payable under the provisions  of  subsection  (1),  or
 13    under the provisions of section 72-1429G, Idaho Code, which were ordered prior
 14    to July 1, 1978, shall continue under the provisions of this chapter in effect
 15    at the time such benefit payment was ordered.
 16        (4)  Eligibility  for benefits of surviving spouses that was terminated on
 17    or after July 1, 1987, solely because of the  spouse's  remarriage  is  hereby
 18    reinstated effective July 1, 1992. Such spouses are entitled to have the bene-
 19    fits,  including any cost of living allowances approved by the board effective
 20    on or after July 1, 1987, commence prospectively effective July  1,  1992,  or
 21    upon their application to the retirement system, whichever is later.
                                                                        
 22        SECTION  4.  That  Section 72-1462, Idaho Code, be, and the same is hereby
 23    amended to read as follows:
                                                                        
 24        72-1462.  DEATH BENEFITS -- SPOUSE OF  RETIRED  FIREFIGHTER.  (1)  In  the
 25    event  a paid firefighter, retired on retirement pay, shall die and leave sur-
 26    viving a spouse, but no minor children, such surviving  spouse  shall  receive
 27    for  life  the retirement benefits to which the deceased firefighter was enti-
 28    tled, less any portion of the benefit transferred to  an  alternate  payee  as
 29    provided in sections 59-1319 and 59-1320, Idaho Code.
 30        (2)  Those  benefits  payable under the provisions of subsection (1) which
 31    were ordered prior to July 1, 1978, shall continue  under  the  provisions  of
 32    this chapter in effect at the time such benefit payment was ordered.
 33        (3)  Eligibility  for benefits of surviving spouses that was terminated on
 34    or after July 1, 1987, solely because of the  spouse's  remarriage  is  hereby
 35    reinstated effective July 1, 1992. Such spouses are entitled to have the bene-
 36    fits,  including any cost of living allowances approved by the board effective
 37    on or after July 1, 1987, commence prospectively effective July  1,  1992,  or
 38    upon their application to the retirement system, whichever is later.
                                                                        
 39        SECTION  5.  That  Section 72-1463, Idaho Code, be, and the same is hereby
 40    amended to read as follows:
                                                                        
 41        72-1463.  DEATH BENEFITS -- SURVIVING SPOUSE AND SURVIVING CHILD OR  CHIL-
 42    DREN  OF  RETIRED FIREFIGHTER. (1) In the event a paid firefighter, retired on
 43    retirement pay, shall die and leave  surviving  a  spouse,  or  a  spouse  and
 44    firefighter's  surviving  child  or  children, the spouse, during the spouse's
 45    lifetime shall be paid the retirement pay to which  the  deceased  firefighter
 46    was  eligible. If the surviving spouse dies the full same retirement pay shall
 47    be paid to the firefighter's surviving child or children until they reach  the
 48    age  of  eighteen  (18) years or shall marry, whichever occurs first. Should a
 49    paid firefighter, retired on retirement pay, die without leaving  a  surviving
 50    spouse,  and  leave surviving him or her a minor child or children, said child
 51    or children shall be entitled to receive the pension to which said firefighter
                                                                        
                                           5
                                                                        
  1    was entitled until they marry or shall attain  eighteen  (18)  years  of  age,
  2    whichever occurs first.
  3        (2)  Eligibility  for benefits of surviving spouses that was terminated on
  4    or after July 1, 1987, solely because of the  spouse's  remarriage  is  hereby
  5    reinstated effective July 1, 1992. Such spouses are entitled to have the bene-
  6    fits,  including any cost of living allowances approved by the board effective
  7    on or after July 1, 1987, commence prospectively effective July  1,  1992,  or
  8    upon their application to the retirement system, whichever is later.
                                                                        
  9        SECTION  6.  That  Section 72-1464, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        72-1464.  DEATH BENEFITS -- SURVIVING SPOUSE AND CHILDREN  OF  FIREFIGHTER
 12    DYING FROM CAUSES UNCONNECTED WITH DUTIES BUT DURING SERVICE AFTER FIVE YEARS.
 13    (1)  In  the  event  a  paid  firefighter  who  shall  have  died  from causes
 14    unconnected with said firefighter's official duties, but during the period  of
 15    said  firefighter's  service,  leaves  surviving  a  spouse  or  a spouse with
 16    firefighter's surviving child or children, and who shall have  completed  less
 17    than  twenty  (20)  years,  but  more than five (5) years of active service as
 18    defined in subsection (H) of section 72-1403, Idaho Code, as a paid firefight-
 19    er, said spouse, during the spouse's lifetime shall be paid from the account a
 20    monthly sum equal to: (a) two per  cent  percent  (2%)  of  the  average  paid
 21    firefighter's salary or wage in this state, if the deceased firefighter was an
 22    Option  I firefighter, for each year's active service, less any portion of the
 23    benefit transferred to an alternate payee as provided in sections 59-1319  and
 24    59-1320,  Idaho  Code; or, (b) two per cent percent (2%) of said firefighter's
 25    average monthly salary or wage, based on his average  final  compensation,  if
 26    the  deceased firefighter was an Option II firefighter, for each year's active
 27    service, less any portion of the benefit transferred to an alternate payee  as
 28    provided  in  sections  59-1319  and  59-1320, Idaho Code. The monthly sum for
 29    Option I benefits shall vary annually, according to the determination  of  the
 30    average  paid  firefighter's salary or wage in this state as set forth in sec-
 31    tion 72-1431, Idaho Code. If said surviving  spouse  dies,  said  monthly  sum
 32    shall  be  paid  to  the  firefighter's surviving child or children until they
 33    reach the age of eighteen (18) years or shall marry, whichever  occurs  first;
 34    provided,  however,  that if said deceased firefighter shall have died without
 35    leaving a surviving spouse and leaving surviving a  child  or  children,  said
 36    firefighter's  surviving  child  or children shall be entitled to receive said
 37    monthly sum until they shall reach the age of eighteen  (18)  years  or  shall
 38    marry, whichever occurs first.
 39        (2)  In  the  event  a  paid  firefighter  who shall have died from causes
 40    unconnected with said firefighter's official duties, but during the period  of
 41    said  firefighter's  service,  leaves  surviving  a  spouse  or  a spouse with
 42    firefighter's surviving child or children, and who shall have  completed  less
 43    than twenty-five (25) years, but more than twenty (20) years of active service
 44    as  defined  in subsection (H) of section 72-1403, Idaho Code, as a paid fire-
 45    fighter, said spouse, during his or  her  lifetime  shall  be  paid  from  the
 46    account  a  monthly  sum  equal to the sum the firefighter would have received
 47    under the provisions of section 72-1435,  Idaho  Code,  had  said  firefighter
 48    retired  as  of  the date of his or her death, less any portion of the benefit
 49    transferred to an alternate payee as provided in sections 59-1319 and 59-1320,
 50    Idaho Code, and for the purposes of this section, said  firefighter  shall  be
 51    deemed  to  have  retired  as of the date of death. The monthly retirement sum
 52    shall vary annually according to the  determination  of  the  cost  of  living
 53    adjustment  as  set  forth  in section 72-1471, Idaho Code, and if said spouse
                                                                        
                                           6
                                                                        
  1    dies said monthly sum shall be paid to the firefighter's  surviving  child  or
  2    children  until  they  reach  the  age  of eighteen (18) years or shall marry,
  3    whichever occurs first, provided, however, that if said  deceased  firefighter
  4    shall  have  died  without  leaving a surviving spouse and leaving surviving a
  5    child or children, said firefighter's surviving child  or  children  shall  be
  6    entitled to receive said monthly sum until they reach the age of eighteen (18)
  7    years or shall marry, whichever occurs first.
  8        (3)  Those  benefits  payable  under the provisions of subsections (1) and
  9    (2) of this section which were ordered prior to July 1, 1978,  shall  continue
 10    under  the  provisions of this chapter in effect at the time such benefit pay-
 11    ment was ordered.
 12        (4)  Eligibility for benefits of surviving spouses that was terminated  on
 13    or  after  July  1,  1987, solely because of the spouse's remarriage is hereby
 14    reinstated effective July 1, 1992. Such spouses are entitled to have the bene-
 15    fits, including any cost of living allowances approved by the board  effective
 16    on  or  after  July 1, 1987, commence prospectively effective July 1, 1992, or
 17    upon their application to the retirement system, whichever is later.
                                                                        
 18        SECTION 7.  That Section 72-1465, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
                                                                        
 20        72-1465.  DEATH  BENEFITS -- SPOUSE AND CHILDREN OF FIREFIGHTER DYING FROM
 21    CAUSES UNCONNECTED WITH DUTIES BUT DURING SERVICE AFTER TWENTY-FIVE YEARS. (1)
 22    In the event a paid firefighter who shall have died  from  causes  unconnected
 23    with  said  firefighter's  official  duties,  but  during  the period of  said
 24    firefighter's service, and left surviving  a  spouse  or  a  spouse  with  the
 25    firefighter's  surviving  child  or  children,  and  who  shall have completed
 26    twenty-five (25) years' active service as defined in subsection (H) of section
 27    72-1403, Idaho Code, as a paid firefighter, said spouse,  during  his  or  her
 28    lifetime shall be paid from the account a monthly sum equal to: (a) sixty-five
 29    per  cent  percent  (65%)  of the average paid firefighter's salary or wage in
 30    this state, if the deceased firefighter was an Option I firefighter, less  any
 31    portion  of  the benefit transferred to an alternate payee as provided in sec-
 32    tions 59-1319 and 59-1320, Idaho Code; or, (b)  sixty-five  per  cent  percent
 33    (65%) of said firefighter's average monthly salary or wage, based on his aver-
 34    age  final  compensation,  if  the deceased firefighter was an Option II fire-
 35    fighter, less any portion of the benefit transferred to an alternate payee  as
 36    provided  in  sections  59-1319 and 59-1320, Idaho Code. The monthly sum shall
 37    vary annually according to the determination of the cost of living  adjustment
 38    as  set  forth  in  section  72-1471,  Idaho  Code, and if he or she dies said
 39    monthly sum shall be paid to the firefighter's  surviving  child  or  children
 40    until  they  shall reach the age of eighteen (18) years or shall marry, which-
 41    ever occurs first; provided, however, that if said deceased firefighter  shall
 42    have  died without leaving a surviving spouse and leaving a child or children,
 43    said firefighter's surviving child or children shall be  entitled  to  receive
 44    the pension which said firefighter was entitled until they shall reach the age
 45    of eighteen (18) years or shall marry, whichever occurs first.
 46        (2)  Those  benefits  payable under the provisions of subsection (1) which
 47    were ordered prior to July 1, 1978, shall continue  under  the  provisions  of
 48    this chapter in effect at the time such benefit payment was ordered.
 49        (3)  Eligibility  for benefits of surviving spouses that was terminated on
 50    or after July 1, 1987, solely because of the  spouse's  remarriage  is  hereby
 51    reinstated effective July 1, 1992. Such spouses are entitled to have the bene-
 52    fits,  including any cost of living allowances approved by the board effective
 53    on or after July 1, 1987, commence prospectively effective July  1,  1992,  or
                                                                        
                                           7
                                                                        
  1    upon their application to the retirement system, whichever is later.
                                                                        
  2        SECTION  8.  The  provisions of Section 1 of this act shall not apply to a
  3    domestic retirement order issued prior to  the  effective  date  of  this  act
  4    unless such an order is amended after the effective date of this act to incor-
  5    porate those specific provisions.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                             RS 15499

     In 1998, provisions governing the procedure for dividing retirement
benefits under the Firemen's Retirement Fund (FRF) in the event of
divorce were modified to require the use of approved domestic retirement
orders (ADROs).  That procedure did not permit any change to the
statutory benefit when it was divided; it provided only that the existing
benefit could be divided.
     The FRF provides a statutory survivor benefit for a surviving
spouse or minor children, and provides that all benefits end upon the
later of the death of the member or surviving spouse, or the majority of
a minor child.  Because of this benefit structure, it is currently
possible that an alternate payee's benefit can end before they die,
potentially leaving them without any benefit for the remainder of their
life.
     This bill would amend section 59-1320 Idaho Code, to provide that
any benefit transferred to the alternate payee would be converted into a
lifetime annuity for the alternate payee and that no benefit would revert
to the member, the surviving spouse or the surviving children of the
member.  This amendment effectively changes the FRF benefit structure
without increasing actuarial costs.
     This bill also clarifies that the effect of transferring benefits
to an alternate payee under the FRF plan is to reduce the benefits
otherwise payable to the member, the surviving spouse, or the surviving
children of the member.


                           FISCAL NOTE

The actuary has determined there is no cost to this amendment.



Contact
Name: Rep. Robert Schaefer, Chair-House Commerce & Labor Committee 
Phone: 332-1156
Alan Winkle - PERSI - 334-2455


STATEMENT OF PURPOSE/FISCAL NOTE                         H 451