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H0040........................................................by MR. SPEAKER
Requested by: Public Employee Retirement System of Idaho
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to authorize the
Public Employee Retirement Board to defer and waive the payment of excess
costs by contract when a nonparticipating political subdivision is admitted
and remains in the Public Employee Retirement System for at least ten
years.
01/08 House intro - 1st rdg - to printing
Rpt prt - to St Aff
01/11 Rpt out - to Com/HuRes
02/02 Rpt out - rec d/p - to 2nd rdg
02/05 2nd rdg - to 3rd rdg
02/07 3rd rdg - PASSED - 66-0-4
AYES -- Barraclough, Barrett, Bedke, Bell, Black, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
Tilman, Trail, Wheeler, Wood, Young
NAYS -- None
Absent and excused -- Bieter, Crow, Cuddy, Mr. Speaker
Floor Sponsor -- Trail
Title apvd - to Senate
02/08 Senate intro - 1st rdg - to Com/HuRes
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature First Regular Session - 2001IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 40 BY MR. SPEAKER Requested by: Public Employee Retirement System of Idaho 1 AN ACT 2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1321, 3 IDAHO CODE, TO AUTHORIZE THE RETIREMENT BOARD TO DEFER AND WAIVE THE PAY- 4 MENT OF EXCESS COSTS BY CONTRACT WHEN A NONPARTICIPATING POLITICAL SUBDI- 5 VISION IS ADMITTED AND REMAINS IN THE PUBLIC EMPLOYEE RETIREMENT SYSTEM 6 FOR AT LEAST TEN YEARS. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 59-1321, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 59-1321. PROCEDURE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS TO BE INCLUDED 11 IN RETIREMENT SYSTEM. (1) A political subdivision not participating in the 12 system may, through its governing body, notify the board in writing that it 13 elects to include its employees in the system. The board shall make a study 14 and estimate the costs of including such employees in the system. Upon comple- 15 tion of the study and under the condition that the excess costs, if any, to 16 include the employees as active members is paid upon admission, the political 17 subdivision may apply for admission to the system. Payment of excess costs 18 shall be made upon admission, unless the board in its sole discretion grants 19 an extension. In no case shall an extension exceed two (2) years. Thereupon 20 the board may upon such terms, not inconsistent with this chapter, as are set 21 forth in a contract between the board and the political subdivision, integrate 22 said political subdivision, and its employees into the system established by 23 this chapter effective on the date of notice of election or later unless 24 otherwise prohibited by law. The contract shall have no effect, however, until 25 notice and hearing regarding it is afforded to such employees. Such contract 26 shall provide for the appropriate funding of accrued benefits under any exist- 27 ing retirement program at the time the political subdivision is admitted to 28 the system. 29 (2) The retirement board may, in its discretion, defer and waive the pay- 30 ment of excess costs by contract when the nonparticipating political subdivi- 31 sion is admitted and remains in the system for at least ten (10) years.
STATEMENT OF PURPOSE
RS 10520
Section 59-1321, Idaho Code, requires non-participating
political subdivisions to pay excess costs, as determined by
the actuary, as a condition of being admitted into the
Retirement System. These cost, while usually modest, are
sometimes prohibitive, particularly for small entities. This
bill is intended to make participation in the Retirement
system more accessible by authorizing the Retirement Board to
defer payment of excess costs, then waive those costs upon a
term of participation in the System at least ten (10) years.
By assuring long-term participation, excess costs are
actuarially reduced in most cases.
FISCAL IMPACT
None.
Contact
Name: Alan Winkle, PERSI
Phone: 334-3365
STATEMENT OF PURPOSE/FISCAL NOTE H 40