2003 Legislation
Print Friendly

HOUSE BILL NO. 243 – Teachers, retiremnt benefts/reports


View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

H0243.........................................................by STATE AFFAIRS
TEACHERS - RETIREMENT BENEFITS - Amends existing law to require enrollment and
cost experience reports by the insurance carrier to the school district.
02/11    House intro - 1st rdg - to printing
02/12    Rpt prt - to St Aff
02/18    Rpt out - Ref'd to Bus

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 243
                                 BY STATE AFFAIRS COMMITTEE
  1                                        AN ACT
  4    Be It Enacted by the Legislature of the State of Idaho:
  5        SECTION  1.  That  Section 33-1228, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
  7        33-1228.  SEVERANCE ALLOWANCE AT RETIREMENT. (1) Upon separation from pub-
  8    lic school employment by retirement in accordance with chapter 13,  title  59,
  9    Idaho Code, an employee's unused sick leave shall be determined based on accu-
 10    mulated  sick  leave earned subsequent to July 1, 1976, as provided by section
 11    33-1218, Idaho Code, and shall be reported  by  the  employer  to  the  public
 12    employee  retirement  system.  A  sum  equal to one-half (1/2) of the monetary
 13    value of such unused sick leave, calculated  at  the  rate  of  pay  for  such
 14    employee  at  the time of retirement, shall be transferred from the sick leave
 15    account provided by subsection (2) of this section and shall  be  credited  to
 16    such  employee's retirement account. Such sums shall be used by the Idaho pub-
 17    lic employees' retirement board to continue to pay:
 18        (a)  Premiums for the retiree and the retiree's dependents at the rate for
 19        the active employee's group health, accident and dental insurance programs
 20        as maintained by the employer for the active employees until  the  retiree
 21        and/or  the  retiree's  spouse becomes eligible for medicare at which time
 22        the district shall make available a supplemental program to  medicare  for
 23        the  eligible  individual.  Upon  the  death  of the retiree the surviving
 24        spouse's health coverage shall be available and continued under  the  same
 25        terms  and  conditions  as  the retiree. Coverage may be continued for the
 26        retiree's surviving dependent spouse and dependents  until  remarriage  of
 27        the  spouse  or until the retiree's surviving dependent spouse is eligible
 28        for a group health program by an employer. The medicare supplement program
 29        will provide the same premium and benefits for all  retirees  of  all  the
 30        employers served by the same insurance carrier. However, a school district
 31        may  make  available  to all retirees from that district other benefits in
 32        addition to the medicare supplement program and the retiree  or  the  dis-
 33        trict  shall  pay  for such additional benefits. Because both retirees and
 34        active employees are to be covered by the same insurance carrier, the car-
 35        rier shall provide enrollment and cost experience reports  to  the  school
 36        district on a regular basis.
 37        (b)  Premiums  at  the  time  of  retirement  for the retiree for the life
 38        insurance program maintained by the employer which may  be  reduced  to  a
 39        minimum of five thousand dollars ($5,000) of coverage.
 40        (2)  The  retiree  may  continue to pay the premiums for the health, acci-
 41    dent, dental and life insurance to the extent of the  funds  credited  to  the
 42    employee's  account pursuant to this section and when these funds are expended
 43    the premiums may be deducted from the retiree's allowance.  Upon  a  retiree's
  1    death,  any unexpended sums remaining in the retiree's account shall revert to
  2    the sick leave account. If funds are not available for payment  by  the  Idaho
  3    public  employee  retirement  system  from  the  retiree's surviving dependent
  4    spouse's allowance, the insurance carrier shall  implement  a  direct  billing
  5    procedure to permit the retiree's surviving spouse to continue coverage.
  6        (3)  Each  employer shall contribute to a sick leave account maintained by
  7    the public employee retirement system exclusively for the purpose of the  pro-
  8    visions  of  this section. The rate of such contribution each pay period shall
  9    consist of a percentage of employees' salaries as determined by the board, and
 10    such rate shall remain in effect until  next  determined  by  the  board.  Any
 11    excess  balance  in the sick leave account shall be invested, and the earnings
 12    therefrom shall accrue to the sick leave account except the amount required by
 13    the board to defray administrative expenses. All moneys payable  to  the  sick
 14    leave  account are hereby perpetually appropriated to the board, and shall not
 15    be included in its departmental budget.
 16        (4)  For purposes of  this  section  public  school  employment  shall  be
 17    defined  to  permit  inclusion  of employees of organizations funded by school
 18    districts or of contributions of employees of school districts.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                           RS 12680 C1
This bill amends Section 33-1228 of the Idaho Code, to require
insurers to regularly provide enrollment and cost experience data
to school districts for their covered retiree population. School
districts in Idaho are required to maintain retiree and active
employees under the same insurance carrier contract. The
information on the school district's retirees is necessary for
the district to be able to obtain the most cost effective
coverage for their employees and retirees. In today's environment
of rapidly escalating health care costs, school districts need
data on their entire covered population in order to obtain
competitive bids. Presently, there is no incentive for insurers
to provide this necessary census information to districts, which
ties their hands in seeking options for the active employees, and

                         FISCAL IMPACT
This proposed legislation will have no fiscal impact on the
state's General Fund. The requirements of the legislation relate
only to the school district and their insurance carrier.

Name: Rep. Elaine Smith 
Phone: 332-1130

STATEMENT OF PURPOSE/FISCAL NOTE                         H 243