2000 Legislation
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HOUSE BILL NO. 657 – PERSI/membership/armed forces duty

HOUSE BILL NO. 657

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Daily Data Tracking History



H0657.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Adds to existing law to provide for the
purchase of Public Employee Retirement System membership service for
certain active duty service in the armed forces.
                                                                        
02/22    House intro - 1st rdg - to printing
02/23    Rpt prt - to Com/HuRes
03/02    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 67-0-3
      AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
      Black, Boe, Bruneel, Callister, Campbell, Chase, Cheirrett, Clark,
      Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
      Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest,
      Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake,
      Linford, Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Moss,
      Moyle, Pearce, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smylie, Stevenson, Stoicheff, Stone,
      Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Mortensen, Pischner, Smith
    Floor Sponsor - Clark
    Title apvd - to Senate
03/09    Senate intro - 1st rdg - to Com/HuRes
03/17    Rpt out - rec d/p - to 2nd rdg
03/20    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 - Thorne
    Title apvd - to House
03/31    To enrol
04/03    Rpt enrol - Sp signed
04/04    Pres signed - to Governor
04/13    Governor signed
         Session Law Chapter 281
         Effective: 07/01/00

Bill Text


 H0657
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 657
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES 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 59-1362, IDAHO
  4        CODE, TO PROVIDE FOR THE PURCHASE OF MEMBERSHIP SERVICE FOR CERTAIN ACTIVE
  5        DUTY SERVICE IN THE ARMED FORCES, TO PROVIDE REQUIREMENTS AND  LIMITATIONS
  6        AND TO PROVIDE A DEFINITION.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Chapter  13,  Title 59, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 59-1362, Idaho Code, and to read as follows:
                                                                        
 11        59-1362.  PURCHASE  OF  ACTIVE  DUTY SERVICE IN THE ARMED FORCES. (1) Not-
 12    withstanding any other provision of this chapter,  an  active  member  who  is
 13    vested  may  purchase  membership service for active duty service in the armed
 14    forces of the United States that does not qualify for  "military  service"  as
 15    defined  in  section 59-1302(23), Idaho Code. Provided, the combined amount of
 16    membership service acquired under section 59-1302(23), Idaho  Code,  and  pur-
 17    chased under this section shall not exceed forty-eight (48) months.
 18        (2)  Purchases  under  this section are limited to active members who pro-
 19    vide, as required by the board, evidence of such active duty service  and  who
 20    do not have a vested right to retirement benefits in any other retirement sys-
 21    tem based in whole or in part upon the same active duty service.
 22        (3)  The  cost of purchases under this section shall be the full actuarial
 23    costs of the service as determined by the board. The  board  may  provide  for
 24    payment options, including periodic payments, but no service shall be credited
 25    until  payment  has  been made in full. The member shall be solely responsible
 26    for the costs of such purchased service, except that an employer may  partici-
 27    pate in the costs at its option.
 28        (4)  For  purposes  of  this  section,  "active  duty service in the armed
 29    forces of the United States" means  active  duty,  other  than  primarily  for
 30    training  purposes, in the army, navy, air force, marine corps or coast guard,
 31    concluding with other than a dishonorable discharge.

Statement of Purpose / Fiscal Impact




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                      STATEMENT OF PURPOSE
                            RS 09976 

The PERSI retirement plan currently provides membership service for certain limited active duty
service in the armed forces at no cost to qualified members. However, this service is limited to
service that interrupts employment with PERSI employers. This bill permits an active member in
the PERSI system to purchase membership service for active duty service in the armed forces
that commenced on or after July 1, 1965 and is otherwise outside the scope of service available at
no cost. The cost of the purchased service is the unsubsidized full actuarial cost of providing the
additional benefit. In no event can the combined amount of membership service acquired at no
cost, together with service purchased under this section, exceed forty-eight (48) months. 



                         FISCAL IMPACT 

There will be no fiscal impact to the General Fund. There is no costs to the retirement fund
because members must pay the full actuarial costs of the service. There will be additional
administrative costs to PERSI anticipated due to increased services associated with a purchase
plan. These include providing additional and multiple retirement estimates, setting up payment
arrangements, and verifying military service. Estimated costs are $42,000 annually, plus $11,900
initial setup costs. 




Contact 
Name: Representative Jim Clark 
     Senator J.L. "Jerry" Thorne
Phone: 332-1000 



                                                                 STATEMENT OF PURPOSE/FISCAL NOTE                                 Bill No. H 657