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H0413........................................................by MR. SPEAKER
Reqested by: Public Employee Retirement System of Idaho
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to decrease the
period of time that employers have to remit contributions to the Public
Employee Retirement System after each pay date; and to require that
contributions be remitted together with the contributions remitted under
supplemental benefit plan contributions.
01/07 House intro - 1st rdg - to printing
Rpt prt - to Com/HuRes
01/16 Rpt out - rec d/p - to 2nd rdg
01/17 2nd rdg - to 3rd rdg
01/18 3rd rdg - PASSED - 58-4-8
AYES -- Aikele, Barraclough, Bedke, Bell, Bieter, Black, Block, Boe,
Bolz, Bradford, Callister, Campbell, Clark, Collins, Cuddy, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones,
Kendell, Kunz, Lake, Langford, Loertscher, Mader, Martinez, McKague,
Meyer, Montgomery, Mortensen, Moyle, Pearce, Pomeroy, Raybould,
Roberts, Robison, Sali, Schaefer, Sellman, Smith(33), Smylie, Stone,
Tilman, Trail, Young, Mr. Speaker
NAYS -- Barrett, Bruneel, Gould, Wood
Absent and excused -- Crow, Kellogg, Pischner, Ridinger, Shepherd,
Smith(23), Stevenson, Wheeler
Floor Sponsor - Martinez
Title apvd - to Senate
01/21 Senate intro - 1st rdg - to Com/HuRes
01/25 Rpt out - rec d/p - to 2nd rdg
01/28 2nd rdg - to 3rd rdg
01/29 3rd rdg - PASSED - 32-0-3
AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Hawkins,
Hill, Ingram, Keough, King-Barrutia, Little, Lodge, Marley, Noh,
Richardson, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett,
Thorne(Thorne), Wheeler, Williams
NAYS -- None
Absent and excused -- Brandt, Ipsen, Sims
Floor Sponsor - Lodge
Title apvd - to House
01/30 To enrol
01/31 Rpt enrol - Sp signed
02/01 Pres signed
02/04 To Governor
02/05 Governor signed
Session Law Chapter 8
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 413 BY MR. SPEAKER Requested by: Public Employee Retirement System of Idaho 1 AN ACT 2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1325, 3 IDAHO CODE, TO DECREASE THE PERIOD OF TIME THAT EMPLOYERS HAVE TO REMIT 4 CONTRIBUTIONS TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM AFTER EACH PAY DATE 5 AND TO REQUIRE THAT CONTRIBUTIONS BE REMITTED TOGETHER WITH CONTRIBUTIONS 6 REMITTED UNDER SUPPLEMENTAL BENEFIT PLAN CONTRIBUTIONS. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 59-1325, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 59-1325. EMPLOYER REMITTANCE TO BOARD -- COLLECTION OF DELINQUENCIES. (1) 11 Each employer, or, where the employer's payroll is paid separately by depart- 12 ments, each department of the employer, shall remit to the retirement board 13 all contributions required of it and its employees on the basis of salaries 14 paid by it during each pay period together with whatever contributions or con- 15 tribution credits may be required to correct previous errors or omissions. 16 These remittances shall be accompanied by such reports as are required by the 17 board to determine contributions required and member benefit entitlements 18 established under this chapter and, unless extended in writing by the execu- 19 tive director, shall be remitted no later thantwentyfive (205) days after 20 each pay date. Such contributions shall be remitted together with contribu- 21 tions remitted pursuant to subsection (5) of section 59-1308, Idaho Code, as 22 directed by the board. Thereafter, unpaid contributions shall be considered 23 delinquent and interest will begin accruing at the greater of the rate of 24 interest provided in section 28-22-104(1), Idaho Code, or regular interest. 25 The executive director may, in his discretion, waive these interest charges in 26 extraordinary circumstances. 27 (2) If any employer shall fail or refuse to remit any such contributions 28 within thirty (30) days after the date due, the board may certify to the state 29 controller the fact of such failure or refusal and the amount of the delin- 30 quent contribution or contributions, together with interest. A copy of such 31 certification and request shall be furnished the delinquent employer. 32 (3) The state controller shall deduct said amount as an offset, together 33 with interest charges, from any funds payable then or in the future to the 34 delinquent employer and shall pay such amounts to the retirement fund.
STATEMENT OF PURPOSE
RS 11411
Under Idaho Code 59-1308(5), all PERSI employers are required to
remit Choice Plan contributions to the Retirement Board or its
designee within five (5) working days of each payroll. This
requirement is designed to ensure that employees' contributions to
the plan are invested as directed by the employee as soon as possible.
A similar requirement exists in Idaho Code 59-1325 with respect to
contributions under the Base Plan except it permits delay in remitting
contributions for up to twenty (20) days after payroll.
This twenty (20) day requirement was necessary in the past before
electronic transmittals but is now antiquated and unnecessary. It
deprives the PERSI trust, its members and beneficiaries, of investment
returns that could be generated during the unnecessary delay. These
lost revenues ultimately increase the costs of benefits under the plan.
Also, in response to input from employers who indicated that they
preferred to prepare one transmittal, not two, PERSI has designed its
systems to accommodate a combined or joint transmittal, rather than
two separate transmittals.
This bill will amend section 59-1325, Idaho Code, to require that
Base Plan contributions be remitted together with Choice Plan
contributions.
FISCAL NOTE
None
Contact: Alan H. Winkle
Agency: PERSI
Phone: 334-2451
STATEMENT OF PURPOSE/FISCAL NOTE H0413