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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