2006 Legislation
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SENATE BILL NO. 1345 – PERSI retirees, reemployment

SENATE BILL NO. 1345

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Bill Status



S1345.......................................by COMMERCE AND HUMAN RESOURCES
PERSI RETIREES - REEMPLOYMENT - Amends existing law to provide that Public
Employee Retirement System retirees who retire without early retirement
reductions and who are reemployed after being retired for at least six
months, may elect to continue receiving retirement benefits and not accrue
additional service if they are subsequently elected to a public office
other than an office held prior to retirement.
                                                                        
02/03    Senate intro - 1st rdg - to printing
02/06    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 - 32-1-2
      AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Langhorst, Lodge,
      Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder,
      Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- Little
      Absent and excused -- Kelly, Keough
    Floor Sponsor - Corder
    Title apvd - to House
02/23    House intro - 1st rdg - to Com/HuRes
03/02    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Clark,
      Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Garrett, Hart, Harwood, Henbest, Henderson, 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, Stevenson, Trail, Wills, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bastian, Chadderdon, Crow, Jaquet, Snodgrass,
      Wood
    Floor Sponsor - McKague
    Title apvd - to Senate
03/17    To enrol
03/20    Rpt enrol - Pres signed - Sp signed
03/21    To Governor
03/24    Governor signed
         Session Law Chapter 185
         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. 1345
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING  SECTION  59-1356,
  3        IDAHO  CODE,  TO  PROVIDE  THAT  PERSI  RETIREES  WHO RETIRE WITHOUT EARLY
  4        RETIREMENT REDUCTIONS AND ARE REEMPLOYED AFTER BEING RETIRED FOR AT  LEAST
  5        SIX  MONTHS  MAY  ELECT  TO CONTINUE RECEIVING RETIREMENT BENEFITS AND NOT
  6        ACCRUE ADDITIONAL SERVICE IF THEY ARE SUBSEQUENTLY  ELECTED  TO  A  PUBLIC
  7        OFFICE OTHER THAN AN OFFICE HELD PRIOR TO RETIREMENT.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Section 59-1356, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        59-1356.  REEMPLOYMENT OF RETIRED MEMBERS. (1) If an early retired  member
 12    is reemployed with the same employer within ninety (90) days from retiring, or
 13    the early retired member is guaranteed reemployment with the same employer the
 14    member  shall be considered to have continued in the status of an employee and
 15    not to have separated from service. Any retirement allowance payments received
 16    by the retired member shall be repaid to the system and the  retirement  shall
 17    be negated. The month of last contribution prior to the negated retirement and
 18    the month of initial contribution upon return to reemployment shall be consid-
 19    ered  consecutive months of contributions in the determination of an appropri-
 20    ate salary base period upon subsequent retirement.
 21        (2)  Except as provided in subsection (3) of this section, wWhen a retired
 22    member  meets  the  definition  of  an  employee   as   defined   in   section
 23    59-1302(14)(A)(a),  Idaho  Code,  any benefit payable on behalf of such member
 24    shall terminate and any contributions payable by such  member  under  sections
 25    59-1331  through 59-1334, Idaho Code, shall again commence, except as provided
 26    in subsection (3) of this section. The terminated benefit, as adjusted  pursu-
 27    ant  to  section 59-1355, Idaho Code, shall resume upon subsequent retirement,
 28    along with a separate allowance computed with respect to only that salary  and
 29    service credited during the period of reemployment.
 30        (3)  If  a  retired member, who is receiving a benefit that is not reduced
 31    under section 59-1346, Idaho Code, and who has been retired for more than  six
 32    (6) months, again becomes employed and an employer certifies to the board that
 33    the member does not qualify as an employee as defined in this section and sec-
 34    tion  59-1302(14)(A)(ab), Idaho Code, as a result of being elected to a public
 35    office other than an office held prior to retirement, the retired  member  may
 36    elect  to  continue  receiving  benefits and not accrue additional service, in
 37    which event no contributions shall be made by the member  or  employer  during
 38    such  reemployment and any benefit payable on behalf of such member shall con-
 39    tinue.
 40        (4)  For purposes of this section, "same employer" means the employer  for
 41    which the retired member last worked prior to retirement.

Statement of Purpose / Fiscal Impact


                                   STATEMENT OF PURPOSE

                                          RS 15830
  
  It is difficult to encourage highly qualified citizens to perform public service and run for
  elected offices, particularly in the more rural areas of Idaho. Currently a PERSI retiree
  may be elected to a part-time office and it will not affect their retirement benefit.
  However, a PERSI retiree who is elected to a full-time office must stop receiving their
  retirement benefit, make contributions to PERSI from their salary and will accrue an
  additional PERSI benefit. Depending upon the salary of the full-time office and the
  PERSI benefit the retiree is receiving, this willingness to perform public service in a full-
  time elected office could work a fmancial hardship on the retiree.
  
  The intent of this amendment is to offer the same existing re-employment right to retirees
  who are elected to a part-time office (less than 20 hours per week), to retirees who are
  elected to full-time office. Under current PERSI statutes and rules a retired PERSI
  member who is elected to a public office and who is not normally required to perform
  services of 20 hours per week or more, or for not more than five consecutive months can
  continue to receive their PERSI benefits and receive the salary for the elected office. The
  amendment will allow retired PERSI members who are elected to a public office that
  requires them to perform services of 20 hours per week or more, or for more than five
  consecutive months to continue to received their PERSI benefit and receive the salary for
  the full time elected office, under certain circumstances. The retiree must have retired
  with an unreduced retirement allowance, must have been retired for six months and
  cannot be returning to the same office from which they retired.
  
  This amendment is narrowly drafted to make re-employment arrangements for PERSI
  retiree s equivalent between part-time and full-time elected offices. It is not the intent of
  the legislature to expand re-employment right of retirees other than this specific
  amendment.
  
                                        FISCAL IMPACT
  
  There is no fiscal impact on the general fund. The actuary determined most of the costs
  are eliminated because 1) the retiree must be retired at least 6 months, 2) the retiree must
  be elected to a different position than one that may have been held prior to retirement and
  3) no benefit is accrued during the reemployment. The only actual cost impact is the loss
  of UAAL contributions which is determined to be very small (2.79% of salary).
  
  
  
  
  Contact
       Senator Dean Cameron
       Senator Joe Stegner
       Senator Dick Compton
       Senator Tim Corder
       
  
  STATEMENT OF PURPOSE/FISCAL NOTE                                                         S 1345