2000 Legislation
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HOUSE BILL NO. 717 – PERSI membership purchase

HOUSE BILL NO. 717

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Daily Data Tracking History



H0717..........................................................by EDUCATION
PERSI - MEMBERSHIP PURCHASE - Adds to existing law to provide that active,
vested members of the Public Employee Retirement System may purchase up to
forty-eight months of membership service.
                                                                        
03/07    House intro - 1st rdg - to printing
03/08    Rpt prt - to Comm/HuRes
03/14    Rpt out - rec d/p - to 2nd rdg
03/15    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 62-4-4
      AYES -- Barraclough, Bell, Bieter, Black, Boe, Bruneel, Campbell,
      Chase, Cheirrett, Cuddy, Deal, Denney, Ellsworth, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(29),
      Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell,
      Kunz, Lake, Loertscher, Marley, McKague, Meyer, Montgomery,
      Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds,
      Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith,
      Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail, Wheeler,
      Wood, Zimmermann, Mr Speaker
      NAYS -- Alltus, Barrett, Callister, Hansen(23)
      Absent and excused -- Clark, Crow, Linford, Mader
    Floor Sponsor - Ringo
    Title apvd - to Senate
03/17    Senate intro - 1st rdg - to Com/HuRes
03/24    Rpt out - rec d/p - to 2nd rdg
03/27    2nd rdg - to 3rd rdg
03/30    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
      Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - McLaughlin
    Title apvd - to House
03/31    To enrol
04/03    Rpt enrol - Sp signed
04/04    Pres signed - to Governor
04/17    Governor signed
         Session Law Chapter 440
         Effective: 07/01/00

Bill Text


 H0717
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 717
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM OF IDAHO;  AMENDING  CHAPTER
  3        13,  TITLE 59, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 59-1363, IDAHO
  4        CODE, TO PROVIDE FOR THE PURCHASE OF UP TO FORTY-EIGHT MONTHS  OF  MEMBER-
  5        SHIP SERVICE.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Chapter  13,  Title 59, Idaho Code, be, and the same is
  8    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  9    ignated as Section 59-1363, Idaho Code, and to read as follows:
                                                                        
 10        59-1363.  PURCHASE  OF  MEMBERSHIP  SERVICE. (1) Notwithstanding any other
 11    provision of this chapter, an active member who is vested may purchase  up  to
 12    forty-eight (48) months of membership service.
 13        (2)  The  cost of purchases under this section shall be the full actuarial
 14    costs of the service as determined by the board. The  board  may  provide  for
 15    payment options, including periodic payments, but no service shall be credited
 16    until  payment  has  been made in full. The member shall be solely responsible
 17    for the costs of such purchased service, except that an employer may  partici-
 18    pate in the costs at its option.
 19        (3)  In  no event shall any member be allowed to purchase in the aggregate
 20    more than forty-eight (48) months  of  membership  service  whether  purchased
 21    under  this  section or any other provision authorizing purchase of membership
 22    service.

Statement of Purpose / Fiscal Impact


                   STATEMENT OF PURPOSE
                       RS 10239

This bill would allow active vested members of PERSI to 
purchase up to forty-eight (48) months of membership service 
for any reason. The purchased service is considered together 
with all other credited service in determining a retirement 
benefit. The cost of the purchased service is the full 
actuarial cost of providing the additional benefit to the 
member as determined by the board. The board has authority to 
permit periodic payment of the costs, including interest, but 
payment must be made in full before any service is credited. 
Neither PERSI nor the employer is obligated to pay any of the 
costs of purchased service. However, an employer may, at its 
option, participate in paying the costs of purchased service.

                        FISCAL IMPACT

There is no cost to the retirement fund because members must pay 
the full actuarial cost of the service. There will be additional 
administrative costs anticipated due to increased services 
associated with a purchase plan. These include providing 
additional and multiple retirement estimates, and setting up 
payment arrangements. The fiscal impact shown in HB 657 
(purchase of military service) is sufficient to provide the 
funding for implementation of this bill also.

Contact Name: Rep. Shirley Ringo
Phone: 208/332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                    H 717