Print Friendly SENATE BILL NO. 1129 – PERSI membership, veterans purchase
SENATE BILL NO. 1129
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S1129.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - VETERANS - Amends existing law to
provide a reduced formula for veterans purchasing membership service in the
Public Employee Retirement System.
02/12 Senate intro - 1st rdg - to printing
02/13 Rpt prt - to Com/HuRes
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1129
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1362,
3 IDAHO CODE, TO PROVIDE A REDUCED FORMULA FOR VETERANS PURCHASING MEMBER-
4 SHIP SERVICE.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 59-1362, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 59-1362. PURCHASE OF ACTIVE DUTY SERVICE IN THE ARMED FORCES. (1) Not-
9 withstanding any other provision of this chapter, an active member who is
10 vested may purchase membership service for active duty service in the armed
11 forces of the United States that does not qualify for "military service" as
12 defined in section 59-1302(23), Idaho Code. Provided, the combined amount of
13 membership service acquired under section 59-1302(23), Idaho Code, and pur-
14 chased under this section shall not exceed forty-eight (48) months.
15 (2) Purchases under this section are limited to active members who pro-
16 vide, as required by the board, evidence of such active duty service and who
17 do not have a vested right to retirement benefits in any other retirement sys-
18 tem based in whole or in part upon the same active duty service.
19 (3) The cost of purchases under this section shall be the full actuarial
20 costs of the service as determined by the board, reduced by one percent (1%)
21 of the cost of the purchase for each month of active duty service purchased to
22 a maximum of forty-eight (48) months. The board may provide for payment
23 options, including periodic payments, but no service shall be credited until
24 payment has been made in full. The member shall be solely responsible for the
25 costs of such purchased service, except that an employer may participate in
26 the costs at its option.
27 (4) For purposes of this section, "active duty service in the armed
28 forces of the United States" means active duty, other than primarily for
29 training purposes, in the army, navy, air force, marine corps or coast guard,
30 concluding with other than a dishonorable discharge.
STATEMENT OF PURPOSE
This legislation amends Idaho Code 59-1362, adopted
by the 2000 Legislature, which authorizes the Public
Employee Retirement System of Idaho(PERSI) to allow
active public employees who are vested in the system
to purchase membership service for active duty service
in the armed forces of the United States. The current
law provides that the PERSI Board will calculate the
amount an employee must pay for the purchase of such
additional service on the basis of the full actuarial
value of that additional service. The proposed amendment
required that that calculation be reduced at the rate of
one percent per month of active duty service purchased to
a maximum of forty-eight(48) months, thereby allowing for
a reduction in the amount required to be paid by public
employees who choose this option and who are veterans by
as much as 48%, depending on the amount of active duty
The PERSI actuary has estimated a maximum cost of $13.5
million liability charged to the PERSI fund. This
assumes that all the eligible members purchased all the
eligible service in one year. In practice, this cost
will be somewhat less because only a portion of the
eligible members will purchase the military service,
even with the proposed reduction. Also, the liability
will be spread out over many years since it will occur
only when the member who purchases the service retires.
PERSI cannot estimate how many people will take advantage
of this purchase of service and, therefore, precisely
determine the liability.
Name: Senator Jerry Thorne
STATEMENT OF PURPOSE/FISCAL NOTE S 112