Print Friendly HOUSE BILL NO. 681 – PERSI, member, rollover distributn
HOUSE BILL NO. 681
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H0681....................................................by HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to provide that any
member of the Public Employee Retirement System may elect to have eligible
rollover distributions paid directly to a specified eligible retirement
plan as required by the federal tax code.
02/12 House intro - 1st rdg - to printing
02/13 Rpt prt - to HuRes
02/20 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/24 3rd rdg - PASSED - 64-0-6
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Boe, Bruneel, Callister, Campbell, Clark, Crane, Crow,
Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Hadley,
Hansen, Henbest, Hornbeck, Jaquet, Jones(9), Jones(22), Jones(20),
Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Linford,
Loertscher, Mader, Marley, McKague, Meyer, Miller, Mortensen,
Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison, Sali,
Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman,
Tippets, Trail, Watson, Wheeler, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Black(23), Chase, Geddes, Gould, Newcomb, Wood
Floor Sponsor - Lake
Title apvd - to Senate
02/25 Senate intro - 1st rdg - to Com/HuRes
03/11 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
03/18 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Twiggs, Wheeler, Whitworth
Absent and excused--Hansen
Floor Sponsor - Riggs
Title apvd - to House
03/19 To enrol - rpt enrol - Sp signed
Pres signed - to Governor
03/20 Governor signed
Session Law Chapter 193
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fourth Legislature Second Regular Session - 1998
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 681
BY HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM OF IDAHO; AMENDING SECTION
3 59-1306, IDAHO CODE, TO INCLUDE AN ADDITIONAL PROVISION OF THE FEDERAL TAX
4 CODE WITH WHICH THE PUBLIC EMPLOYEE RETIREMENT SYSTEM MUST COMPLY AND TO
5 CORRECT TERMINOLOGY; AMENDING SECTION 59-1359, IDAHO CODE, TO PROVIDE THAT
6 ANY MEMBER MAY ELECT TO HAVE ELIGIBLE ROLLOVER DISTRIBUTIONS PAID DIRECTLY
7 TO A SPECIFIED ELIGIBLE RETIREMENT PLAN AS REQUIRED BY THE FEDERAL TAX
8 CODE; AND DECLARING AN EMERGENCY.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 59-1306, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 59-1306. CONFORMITY WITH FEDERAL TAX CODE TO MAINTAIN QUALIFIED PLAN TAX
13 STATUS. Chapter 13, title 59, and chapter 14, title 72, Idaho Code, shall be
14 administered in a manner so as to comply with the requirements of 26 U.S.C.
15 section 401(a)(8), (9), (16) , and (25) and
16 (31) . The public employees retirement system board shall promulgate
17 regulations rules and amend or repeal conflicting
18 regulations rules in order to assure compliance with
19 the requirements of this section. This chapter shall be in full force and
20 effect on and after January 1, 1989, and thereafter only so long as conformity
21 to section 401(a) of the internal revenue code, 26 U.S.C., section 401(a) is
22 required for public retirement systems. If not required, this provision will
23 cease to have any force or effect.
24 SECTION 2. That Section 59-1359, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 59-1359. SEPARATION BENEFITS. (a) The separation benefit, if any, shall
27 become payable upon the written request of an inactive member who has been
28 separated from employment. If the person who received a separation benefit is
29 reemployed or reinstated by the same employer within ninety (90) days or is
30 guaranteed a right to employment or reinstatement with the same employer, the
31 person shall repay to the system any separation benefit paid.
32 (b) A separation benefit shall automatically be payable three (3) years
33 after the person becomes an inactive member if the inactive member has less
34 than five (5) years of membership service, is not eligible for a vested
35 retirement allowance, and has been separated from employment and is not reem-
36 ployed or reinstated by the same employer within ninety (90) days.
37 (c) For purposes of this section, "separated from employment" means the
38 inactive member terminated all employment with the employer. For purposes of
39 this section, "same employer" means the employer for which the person last
40 worked prior to being separated from employment.
41 (d) Any member may elect to have eligible rollover distributions
1 paid directly to a specified eligible retirement plan as required by 26 U.S.C.
2 section 401(a)(31).
3 SECTION 3. An emergency existing therefor, which emergency is hereby
4 declared to exist, this act shall be in full force and effect on and after its
5 passage and approval.
STATEMENT OF PURPOSE
This bill amends the retirement plan to comply with section 401(a)(31) of the Internal Revenue
Code. That section requires that qualified plans include a provision permitting direct payment of
eligible rollover distributions into eligible retirements plans specified by the member. Although
PERSI has always accommodated such transfers, recent IRS regulations require that a written
provision of the plan permit the transfers. This bill adds language to the plan to satisfy IRS
requirements and facilitate the receipt of a favorable determination letter from the IRS.
Name: Alan Winkle
Agency: Public Employee Retirement System of Idaho