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H0717..........................................................by EDUCATION PERSI - MEMBERSHIP PURCHASE - Adds to existing law to provide that active, vested members of the Public Employee Retirement System may purchase up to forty-eight months of membership service. 03/07 House intro - 1st rdg - to printing 03/08 Rpt prt - to Comm/HuRes 03/14 Rpt out - rec d/p - to 2nd rdg 03/15 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 62-4-4 AYES -- Barraclough, Bell, Bieter, Black, Boe, Bruneel, Campbell, Chase, Cheirrett, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Loertscher, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann, Mr Speaker NAYS -- Alltus, Barrett, Callister, Hansen(23) Absent and excused -- Clark, Crow, Linford, Mader Floor Sponsor - Ringo Title apvd - to Senate 03/17 Senate intro - 1st rdg - to Com/HuRes 03/24 Rpt out - rec d/p - to 2nd rdg 03/27 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 - McLaughlin Title apvd - to House 03/31 To enrol 04/03 Rpt enrol - Sp signed 04/04 Pres signed - to Governor 04/17 Governor signed Session Law Chapter 440 Effective: 07/01/00
H0717|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 717 BY EDUCATION 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 59-1363, IDAHO 4 CODE, TO PROVIDE FOR THE PURCHASE OF UP TO FORTY-EIGHT MONTHS OF MEMBER- 5 SHIP SERVICE. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Chapter 13, Title 59, Idaho Code, be, and the same is 8 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 9 ignated as Section 59-1363, Idaho Code, and to read as follows: 10 59-1363. PURCHASE OF MEMBERSHIP SERVICE. (1) Notwithstanding any other 11 provision of this chapter, an active member who is vested may purchase up to 12 forty-eight (48) months of membership service. 13 (2) The cost of purchases under this section shall be the full actuarial 14 costs of the service as determined by the board. The board may provide for 15 payment options, including periodic payments, but no service shall be credited 16 until payment has been made in full. The member shall be solely responsible 17 for the costs of such purchased service, except that an employer may partici- 18 pate in the costs at its option. 19 (3) In no event shall any member be allowed to purchase in the aggregate 20 more than forty-eight (48) months of membership service whether purchased 21 under this section or any other provision authorizing purchase of membership 22 service.
STATEMENT OF PURPOSE RS 10239 This bill would allow active vested members of PERSI to purchase up to forty-eight (48) months of membership service for any reason. The purchased service is considered together with all other credited service in determining a retirement benefit. The cost of the purchased service is the full actuarial cost of providing the additional benefit to the member as determined by the board. The board has authority to permit periodic payment of the costs, including interest, but payment must be made in full before any service is credited. Neither PERSI nor the employer is obligated to pay any of the costs of purchased service. However, an employer may, at its option, participate in paying the costs of purchased service. FISCAL IMPACT There is no cost to the retirement fund because members must pay the full actuarial cost of the service. There will be additional administrative costs anticipated due to increased services associated with a purchase plan. These include providing additional and multiple retirement estimates, and setting up payment arrangements. The fiscal impact shown in HB 657 (purchase of military service) is sufficient to provide the funding for implementation of this bill also. Contact Name: Rep. Shirley Ringo Phone: 208/332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 717