2002 Legislation
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HOUSE BILL NO. 413 – PERSI, employer contribution, remit

HOUSE BILL NO. 413

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Daily Data Tracking History



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

Bill Text


                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN 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 than twenty five (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 / Fiscal Impact


                       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