2001 Legislation
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HOUSE BILL NO. 371 – Firefighters, retirement, options

HOUSE BILL NO. 371

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Daily Data Tracking History



H0371.......................................by COMMERCE AND HUMAN RESOURCES
FIREFIGHTERS - RETIREMENT - Amends existing law to provide that certain
paid firefighters employed on or after July 1, 1976, may elect to select
either Option I or Option II prior to retirement; and to provide that
firefighters who select Option II shall pay any additional employee
contributions prior to retirement and the firefighter's employer shall pay
the required employer contributions as determined by the Public Employee
Retirement Board.
                                                                        
03/20    House intro - 1st rdg - to printing
03/21    Rpt prt - rec d/p - to 2nd rdg
    Rls susp - PASSED - 68-0-2
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins,
      Hornbeck, Jaquet, 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, Smylie, Stevenson, Stone,
      Swan(Block), Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Jones, Smith
    Floor Sponsor -- Schaefer
    Title apvd - to Senate
03/23    Senate intro - 1st rdg - to Com/HuRes
03/26    Rpt out - rec d/p - to 2nd rdg
    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
      Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
      Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor -- Andreason
    Title apvd - to House
03/28    To enrol - rpt enrol - Sp signed
    Pres signed
03/29    To Governor
04/04    Governor signed
         Session Law Chapter 327
         Effective: 04/04/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 371
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE FIREMEN'S RETIREMENT FUND;  AMENDING  SECTION  72-1434,  IDAHO
  3        CODE,  TO PROVIDE THAT CERTAIN PAID FIREFIGHTERS EMPLOYED ON OR AFTER JULY
  4        1, 1976, MAY MAKE AN ELECTION TO SELECT EITHER OPTION I OR OPTION II PRIOR
  5        TO RETIREMENT, TO PROVIDE THAT SUCH PAID FIREFIGHTERS WHO SELECT OPTION II
  6        SHALL PAY ANY ADDITIONAL REQUIRED EMPLOYEE CONTRIBUTIONS PRIOR TO  RETIRE-
  7        MENT,  TO PROVIDE THAT THE FIREFIGHTER'S EMPLOYER SHALL PAY ANY ADDITIONAL
  8        REQUIRED EMPLOYER CONTRIBUTIONS AS DETERMINED BY THE BOARD AND TO  MAKE  A
  9        TECHNICAL CORRECTION; AND DECLARING AN EMERGENCY.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Section 72-1434, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        72-1434.  OPTIONAL PENSION AMOUNTS -- OPTION I AND  OPTION  II.  Prior  to
 14    July  1,  1976,  but  not  thereafter,  any paid firefighter in this state, as
 15    defined in subsection (A) of section 72-1403, Idaho Code, may elect to receive
 16    his or her retirement benefits in accordance with the provisions of  Option  I
 17    or  Option  II  as hereinafter set forth. Except as otherwise provided in this
 18    chapter, in the event a firefighter fails to elect an option prior to July  1,
 19    l976,  then  his or her pension benefits shall be paid to him under the provi-
 20    sions as set forth in Option I. Selection of  option  shall  be  nominated  by
 21    written  designation  duly executed and filed with the public employee retire-
 22    ment system board. Any paid firefighter employed in the state  by  a  city  or
 23    fire  district,  on  or after July 1, l976, shall be employed under the provi-
 24    sions as set forth in Option II; provided however, that any  paid  firefighter
 25    employed  on  or  after  July 1, 1976, who has consistently been treated as an
 26    Option I firefighter for contribution purposes may, prior to retirement,  make
 27    an election to select either Option I or Option II; provided further, that any
 28    such  paid  firefighter  who selects Option II shall, prior to retirement, pay
 29    any additional required employee contributions and the firefighter's  employer
 30    shall pay any additional required employer contributions, as determined by the
 31    board.
 32        (1)  OPTION  I -- On or after July 1, 1976, any employed paid firefighter,
 33    as defined in subsection (A) of section 72-1403,  Idaho  Code,  electing  this
 34    option or failing to nominate an option, after payment of the contribution, as
 35    set forth in section 72-1431, Idaho Code, and after completion of years active
 36    service,  as  defined in subsection (H) of section 72-1403, Idaho Code, may at
 37    his or her option retire, and in the event of such retirement said firefighter
 38    shall be paid from the public employee retirement account a monthly sum during
 39    the remainder of his  life  equal  to  the  percentage  of  the  average  paid
 40    firefighter's  salary  or  wage  in this state, as defined in section 72-1431,
 41    Idaho Code, and that said firefighter is entitled to under the  provisions  of
 42    this  chapter,  which  said  monthly sum shall vary annually, according to the
 43    determination of the cost  of  living  adjustment  as  set  forth  in  section
                                                                        
                                           2
                                                                        
  1    72-1471, Idaho Code.
  2        (2)  OPTION  II  --  On or after October 1, l979, any paid firefighter, as
  3    defined in subsection (A) of section 72-1403, Idaho Code, who  elected  Option
  4    II, or who was employed after July 1, 1976, after payment of the contribution,
  5    as  set  forth  in  section 72-1431, Idaho Code, and after completion of years
  6    active service, as defined in section 72-1403(H), Idaho Code, may  at  his  or
  7    her option retire, and in the event of such retirement he or she shall be paid
  8    from the public employee retirement account a monthly sum during the remainder
  9    of  his    or  her  life equal to the percentage of said firefighter's average
 10    monthly salary or wage, as defined in section 72-1431, Idaho Code,  that  said
 11    firefighter  is entitled to under the provisions as set forth in this chapter,
 12    based on his or her  "average  final  compensation,"  as  defined  in  section
 13    72-1404,  Idaho  Code, which said monthly sum shall vary annually according to
 14    the determination of the cost of living adjustment as  set  forth  in  section
 15    72-1471, Idaho Code.
                                                                        
 16        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 17    declared to exist, this act shall be in full force and effect on and after its
 18    passage and approval.

Statement of Purpose / Fiscal Impact


	             STATEMENT OF PURPOSE

                         RS 11281

This bill relates to the Firemen's Retirement Fund. In 1976, 
benefits under the plan were amended for newly hired 
firefighters, creating two categories of benefits: one based on a 
percentage of the statewide average of firefighters' salaries 
(Option I), and one based on a percentage of the firefighter's 
individual salary (Option II) . All firefighters hired after 
July 1, 1976, were to pay contributions and receive benefits 
under Option II. All firefighters hired before July 1, 1976, were 
to pay contributions and receive benefits under Option I unless 
they made an affirmative election of Option II. At the time, the 
Firemen's Retirement Fund was administered by the State Insurance 
Fund. After July 1, 1976, but prior to the transfer of the fund to 
the Public Employee Retirement System, a number of newly hired 
firefighters improperly entered the fund as Option I firefighters 
and have been making contributions and expecting retirement benefits 
based on Option I during their entire careers. This bill allows 
those few firefighters to select, prior to retirement, either Option 
I or Option II retirement. If an Option II retirement is selected, 
both the firefighter and firefighter's employer shall be required to 
pay any additional contributions that would have been paid had the 
firefighter been properly treated as an Option II firefighter from 
the date of hire, as determined by the board.



                     FISCAL IMPACT

None.



Contact
Name:	Alan Winkle, Public Employee Retirement System of Idaho
Phone:	334-3365


STATEMENT OF PURPOSE/FISCAL NOTE               H 371