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H0414........................................................by MR. SPEAKER
Requested by: Public Employee Retirement System of Idaho
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to the
Public Employee Retirement System to allow inactive members who are vested
to purchase membership in the Public Employee Retirement System for active
duty service in the armed forces of the United States; and to provide that
an inactive member who is vested may purchase up to forty-eight months of
membership service.
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 - 60-1-9
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark,
Collins, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
Field(20), Gould, Hadley, 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, Wood, Young, Mr. Speaker
NAYS -- Hammond
Absent and excused -- Crow, Gagner, Kellogg, Pischner, Ridinger,
Shepherd, Smith(23), Stevenson, Wheeler
Floor Sponsor - McKague
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 - Hill
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 9
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 414 BY MR. SPEAKER Requested by: Public Employee Retirement System of Idaho 1 AN ACT 2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1362, 3 IDAHO CODE, TO ALLOW INACTIVE MEMBERS WHO ARE VESTED TO PURCHASE MEMBER- 4 SHIP FOR ACTIVE DUTY SERVICE IN THE ARMED FORCES OF THE UNITED STATES; AND 5 AMENDING SECTION 59-1363, IDAHO CODE, TO PROVIDE THAT AN INACTIVE MEMBER 6 WHO IS VESTED MAY PURCHASE UP TO FORTY-EIGHT MONTHS OF MEMBERSHIP SERVICE. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 59-1362, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 59-1362. PURCHASE OF ACTIVE DUTY SERVICE IN THE ARMED FORCES. (1) Not- 11 withstanding any other provision of this chapter, an active or inactive member 12 who is vested may purchase membership service for active duty service in the 13 armed forces of the United States that does not qualify for "military service" 14 as defined in section 59-1302(23), Idaho Code. Provided, the combined amount 15 of membership service acquired under section 59-1302(23), Idaho Code, and pur- 16 chased under this section shall not exceed forty-eight (48) months. 17 (2) Purchases under this section are limited to active or inactive mem- 18 bers who provide, as required by the board, evidence of such active duty ser- 19 vice and who do not have a vested right to retirement benefits in any other 20 retirement system based in whole or in part upon the same active duty service. 21 (3) The cost of purchases under this section shall be the full actuarial 22 costs of the service as determined by the board. The board may provide for 23 payment options, including periodic payments, but no service shall be credited 24 until payment has been made in full. The member shall be solely responsible 25 for the costs of such purchased service, except that an employer may partici- 26 pate in 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. 31 SECTION 2. That Section 59-1363, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 59-1363. PURCHASE OF MEMBERSHIP SERVICE. (1) Notwithstanding any other 34 provision of this chapter, an active or inactive member who is vested may pur- 35 chase up to forty-eight (48) months of membership service. 36 (2) The cost of purchases under this section shall be the full actuarial 37 costs of the service as determined by the board. The board may provide for 38 payment options, including periodic payments, but no service shall be credited 39 until payment has been made in full. The member shall be solely responsible 40 for the costs of such purchased service, except that an employer may partici- 41 pate in the costs at its option. 2 1 (3) In no event shall any member be allowed to purchase in the aggregate 2 more than forty-eight (48) months of membership service whether purchased 3 under this section or any other provision authorizing purchase of membership 4 service.
STATEMENT OF PURPOSE
RS 11410
In 2000, the Legislature passed two bills authorizing the purchase of
service in the PERSI Base Plan. Those bills added two new sections,
Idaho Code sections 59-1362 and 59-1363. Both sections restricted
purchases to active members and authorized the Retirement Board to
determine how purchases would be made.
Because of the difficulties in accurately determining the cost of
service credit prior to retirement, the Board has adopted rules that
permit purchases only at the time of retirement. This means that
purchases will generally be made with other retirement savings, a
method made even more attractive with the recent passage of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA),
permitting purchases with 457 and 403 (b) plan proceeds. Because of
the methods adopted by the Board, there is no longer a need to
restrict purchases to active members only. Inactive members could
also take advantage of this opportunity if it fits their individual
circumstances.
This bill amends Idaho Code section 59-1362 and 59-1363 to
authorize purchase of service by both active and inactive members.
FISCAL NOTE
None
Contact: Alan H. Winkle
Agency: PERSI
Phone: 334-2451
STATEMENT OF PURPOSE/FISCAL NOTE H0414