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S1403.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to provide for a
graduated increase in the amount of unused sick leave available for
application by a retiree toward health insurance costs until 100% of a
maximum of 600 hours may be applied.
02/08 Senate intro - 1st rdg - to printing
02/11 Rpt prt - to Com/HuRes
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1403
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO PUBLIC EMPLOYEE RETIREMENT BENEFITS; AMENDING SECTION 67-5339,
3 IDAHO CODE, TO PROVIDE FOR A GRADUATED INCREASE IN THE AMOUNT OF UNUSED
4 SICK LEAVE AVAILABLE FOR APPLICATION BY A RETIREE TOWARD HEALTH INSURANCE
5 COSTS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 67-5339, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 67-5339. USE OF UNUSED SICK LEAVE. (1) Upon separation from state employ-
10 ment by retirement in accordance with chapter 13, title 59 or chapter 1, title
11 33, Idaho Code, an employee's unused sick leave shall be determined based on
12 accumulated sick leave earned subsequent to July 1, 1976, and shall be
13 reported by the employer to the public employee retirement system. Upon sepa-
14 ration from state employment by retirement in accordance with chapter 20,
15 title 1, Idaho Code, an employee's unused sick leave shall be determined based
16 on accumulated sick leave earned subsequent to July 1, 2000, and shall be
17 reported by the employer to the public employee retirement system. A sum equal
18 to one-half (1/2), or the maximum amount allowed by subsection (2) of this
19 section, whichever is the lesser, of the monetary value of such unused sick
20 leave, calculated at the rate of pay for such employee at the time of retire-
21 ment, shall be transferred from the sick leave account provided by subsection
22 (3) of this section and shall be credited to such employee's retirement
23 account. Provided that, after July 1, 2003, a sum equal to sixty percent
24 (60%), or the maximum amount allowed by subsection (2) of this section, and
25 after July 1, 2004, a sum equal to seventy percent (70%), or the maximum
26 amount allowed by subsection (2) of this section, and after July 1, 2005, a
27 sum equal to eighty percent (80%), or the maximum amount allowed by subsection
28 (2) of this section, and after July 1, 2006, a sum equal to ninety percent
29 (90%), or the maximum amount allowed by subsection (2) of this section, and
30 after July 1, 2007, a sum equal to one hundred percent (100%), or the maximum
31 amount allowed by subsection (2) of this section, whichever is the lesser, of
32 the monetary value of such unused sick leave, calculated at the rate of pay
33 for such employee at the time of retirement, shall be transferred from the
34 sick leave account provided by subsection (3) of this section and shall be
35 credited to such employee's retirement account. Such sums shall be used by the
36 Idaho public employee retirement board to pay premiums for such group health,
37 accident, and life insurance programs as may be maintained by the state, to
38 the extent of the funds credited to the employee's account pursuant to this
39 section. Upon an employee's death, any unexpended sums remaining in the
40 account shall revert to the sick leave account.
41 (2) For the purposes of determining the monetary value of unused sick
42 leave, the maximum unused sick leave which may be considered, shall be:
43 (a) During the first ten thousand four hundred (10,400) hours of credited
2
1 state service, the maximum unused sick leave which may be considered shall
2 be four hundred twenty (420) hours;
3 (b) During the second ten thousand four hundred (10,400) hours of cred-
4 ited state service, the maximum unused sick leave which may be considered
5 shall be four hundred eighty (480) hours;
6 (c) During the third ten thousand four hundred (10,400) hours of credited
7 state service, the maximum unused sick leave which may be considered shall
8 be five hundred forty (540) hours; and
9 (d) Thereafter, the maximum unused sick leave which may be considered
10 shall be six hundred (600) hours.
11 (3) Each employer in state government shall contribute to a sick leave
12 account maintained by the public employee retirement system exclusively for
13 the purpose of the provisions of this section. The rate of such contribution
14 each pay period shall consist of a percentage of employees' salaries as deter-
15 mined by the board, and such rate shall remain in effect until next determined
16 by the board. Any excess balance in the sick leave account shall be invested,
17 and the earnings therefrom shall accrue to the sick leave account except the
18 amount required by the board to defray administrative expenses. All moneys
19 payable to the sick leave account are hereby perpetually appropriated to the
20 board, and shall not be included in its departmental budget. The state insur-
21 ance fund and public health districts shall be considered employers in state
22 government for purposes of participation under this section.
STATEMENT OF PURPOSE
RS 11799
Starting in FY 2004 an additional 10% of accumulated sick leave
could be used to purchase insurance upon retirement. The
percentage would continue to go up 10% each year until it reached
the 100% level in 2008 and would then continue at that level.
(At the present time, state employees can use only 50 percent of
the value of their accumulated sick leave hours to purchase
health insurance upon their retirement, up to a maximum of 600
hours, depending on their number of years of service.) This bill
would not remove or change the statutory maximum limit of hours
that could be used to purchase health insurance, and also would
not increase the percentage of sick leave that could be used
until Fiscal Year 2004.
FISCAL IMPACT
As per PERSI actuary:
For those retiring in: Contribution Rate as Percent of Pay
2003 50% 0.65%
2004 60% 0.92%
2005 70% 1.19%
2006 80% 1.47%
2007 90% 1.74%
2008 100% 2.01
And thereafter
These rates assume the amortization of the unfunded liability
will remain at 11.6 years. Depending upon the growth in salary
levels for the State, this could result in additional funding of
$1.7 million to $2 million per year increase. After the
implementation, the increase will be a total of between $8 and
$10 million additional funding each year.
Contact
Name: Sen. Gary Schroeder
Phone: 332-1321
Rep. Tom Trail 332-1202
STATEMENT OF PURPOSE/FISCAL NOTE Bill No. 1403
REVISED REVISED REVISED REVISED