View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
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