2004 Legislation
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HOUSE BILL NO. 699 – College/univ research staff, PERSI


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Bill Status

H0699.......................................by COMMERCE AND HUMAN RESOURCES
COLLEGE/UNIVERSITY RESEARCH STAFF - Amends existing law to provide that an
employee shall be deemed a vested member of the Public Employee Retirement
System if the employee was an employee of a state college, university,
community college or professional-technical center in a research position
primarily funded by federal or private grant funds.
02/16    House intro - 1st rdg - to printing
02/17    Rpt prt - to Com/HuRes

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 699
  1                                        AN ACT
  7    Be It Enacted by the Legislature of the State of Idaho:
  8        SECTION  1.  That  Section 59-1302, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
 10        59-1302.  DEFINITIONS. (1) As used in this  chapter,  each  of  the  terms
 11    defined  in this section shall have the meaning given in this section unless a
 12    different meaning is clearly required by the context.
 13        (2)  "Active member" means any employee who is not establishing the  right
 14    to  receive  benefits through his or her employer's participation in any other
 15    retirement system established for Idaho public employees, if  such  participa-
 16    tion  is  mandated by applicable Idaho statutes other than this chapter. In no
 17    case will an employee be entitled to any benefit under this chapter for public
 18    service if such employee is establishing retirement  benefit  entitlements  by
 19    other Idaho statutes or federal statutes other than military service or social
 20    security for that same service.
 21        (3)  "Accumulated contributions" means the sum of amounts contributed by a
 22    member of the system, together with regular interest credit thereon.
 23        (4)  "Actuarial equivalent" means a benefit equal in value to another ben-
 24    efit,  when computed upon the basis of the actuarial tables in use by the sys-
 25    tem.
 26        (5)  "Actuarial tables" means such tables as shall have  been  adopted  by
 27    the board in accordance with recommendations of the actuary.
 28        (5A)  "Alternate payee" means a spouse or former spouse of a member who is
 29    recognized  by  an approved domestic retirement order as having a right to all
 30    or a portion of the accrued benefits in the retirement system with respect  to
 31    such member.
 32        (5B)  "Approved  domestic  retirement  order"  means a domestic retirement
 33    order which creates or recognizes the existence of an alternate payee's  right
 34    or  assigns to an alternate payee the right to all or a portion of the accrued
 35    benefits of a member under the retirement system, which directs the system  to
 36    establish a segregated account or disburse benefits to an alternate payee, and
 37    which the executive director of the retirement system has determined meets the
 38    requirements of sections 59-1319 and 59-1320, Idaho Code.
 39        (5C)  "Average  monthly  salary"  means the member's average salary during
 40    the base period as calculated pursuant to  rules  adopted  by  the  retirement
 41    board.
 42        (5D)  (a) "Base  period"  means  the period of fifty-four (54) consecutive
 43        calendar months during which the member earned:
  1             (i)   The highest average salary; and
  2             (ii)  Membership service of at least one-half  (1/2)  the  number  of
  3             months in the period, excluding months of service attributable to:
  4                  A.  Military service;
  5                  B.  Service  qualifying  as  minimum benefit pursuant to section
  6                  59-1342(5), Idaho Code; and
  7                  C.  Worker's compensation income benefits.
  8        (b)  Effective October 1, 1993, the consecutive calendar months  shall  be
  9        forty-eight  (48).  Effective  October  1,  1994, the consecutive calendar
 10        months shall be forty-two (42).
 11        (c)  Entitlement to a base period shall not vest until the effective  date
 12        of  that  base  period. The retirement benefits shall be calculated on the
 13        amounts, terms and conditions in effect at the date of the final contribu-
 14        tion by the member.
 15        (d)  If no base period exists for a member, the member's  average  monthly
 16        salary  shall be determined by the board, using standards not inconsistent
 17        with those established in this subsection.
 18        (e)  To assure equitable treatment  for  all  members,  salary  increments
 19        inconsistent  with  usual  compensation  patterns may be disallowed by the
 20        board in determining average monthly salary and base period.
 21        (6)  "Beneficiary" means the person who is nominated by the written desig-
 22    nation of a member, duly executed and filed with the  board,  to  receive  the
 23    death benefit.
 24        (7)  "Calendar  year"  means twelve (12) calendar months commencing on the
 25    first day of January.
 26        (7A) "Contingent annuitant" means the person designated by a member  under
 27    certain  retirement  options to receive benefit payments upon the death of the
 28    member. The person so designated must be born and living on the effective date
 29    of retirement.
 30        (8)  "Credited service" means the aggregate of membership  service,  prior
 31    service and disabled service.
 32        (9)  "Date  of  establishment"  means July 1, 1965, or a later date estab-
 33    lished by the board or statute.
 34        (10) "Death benefit" means the amount, if any, payable upon the death of a
 35    member.
 36        (11) "Disability retirement allowance" means the periodic payment becoming
 37    payable upon an active member's ceasing to be an employee while  eligible  for
 38    disability retirement.
 39        (12) "Disabled" means:
 40        (a)  That  the  member  is  prevented  from  engaging in any occupation or
 41        employment for remuneration or profit as a result of bodily injury or dis-
 42        ease, either occupational or nonoccupational in cause, but excluding  dis-
 43        abilities  resulting  from  service in the armed forces of any country, or
 44        from an intentionally self-inflicted injury; and
 45        (b)  That the member will likely remain so disabled permanently  and  con-
 46        tinuously during the remainder of the member's life.
 47    It is not necessary that a person be absolutely helpless or entirely unable to
 48    do anything worthy of compensation to be considered disabled. If the person is
 49    so  disabled  that  substantially all the avenues of employment are reasonably
 50    closed to the person, that condition is within the meaning of  "disabled."  In
 51    evaluating  whether  a person is disabled, medical factors and nonmedical fac-
 52    tors including, but not limited to, education, economic  and  social  environ-
 53    ment, training and usable skills may be considered.
 54        Refusal to submit to a medical examination ordered by the board before the
 55    commencement  of  a  disability retirement allowance or at any reasonable time
  1    thereafter shall constitute proof that the member is not disabled.  The  board
  2    shall be empowered to select for such medical examination one (1) or more phy-
  3    sicians or surgeons who are licensed to practice medicine and perform surgery.
  4    The  fees  and expenses of such examination shall be paid from the administra-
  5    tion account of the fund. No member shall be required to undergo  such  exami-
  6    nation  more  often  than  once  each  year after he has received a disability
  7    retirement allowance continuously for two (2) years.
  8        (12A) "Disabled service" means the total number of  months  elapsing  from
  9    the  first day of the month next succeeding the final contribution of a member
 10    prior to receiving a disability retirement allowance to the first day  of  the
 11    month  following  the date of termination of such disability retirement allow-
 12    ance. During such period, the member shall remain classified in the membership
 13    category held during the month of final  contribution.  The  total  number  of
 14    months of disabled service credited for a person first becoming disabled after
 15    the  effective  date  of  this chapter shall not exceed the excess, if any, of
 16    three hundred sixty (360) over the total number of months of prior service and
 17    membership service.
 18        (12B) "Domestic retirement order" means any judgment,  decree,  or  order,
 19    including  approval  of  a  property settlement agreement which relates to the
 20    provision of marital property rights to a spouse or former spouse of a member,
 21    and is made pursuant to a domestic  relations  law,  including  the  community
 22    property law of the state of Idaho or of another state.
 23        (13) "Early retirement allowance" means the periodic payment becoming pay-
 24    able  upon  an  active  member's  ceasing to be an employee while eligible for
 25    early retirement.
 26        (14)  (A) "Employee" means:
 27        (a)  Any person who normally works twenty (20) hours or more per week  for
 28        an  employer  or  a  school  teacher  who  works  half-time or more for an
 29        employer and who receives salary for services rendered for such  employer;
 30        or
 31        (b)  Elected officials or appointed officials of an employer who receive a
 32        salary; or
 33        (c)  A  person  who is separated from service with less than five (5) con-
 34        secutive months of employment and who is reemployed or reinstated  by  the
 35        same employer within thirty (30) days.
 36        (B)  "Employee" does not include employment as:
 37        (a)  A person rendering service to an employer in the capacity of an inde-
 38        pendent business, trade or profession; or
 39        (b)  A  person  whose employment with any employer does not total five (5)
 40        consecutive months; or
 41        (c)  A person provided sheltered  employment  or  made-work  by  a  public
 42        employer in an employment or industries program maintained for the benefit
 43        of such person; or
 44        (d)  An  inmate of a state institution, whether or not receiving compensa-
 45        tion for services performed for the institution; or
 46        (e)  A student enrolled in an undergraduate,  graduate,  or  professional-
 47        technical  program  at and employed by a state college, university, commu-
 48        nity college or professional-technical  center  when  such  employment  is
 49        predicated on student status; or
 50        (f)  A person making contributions to the United States civil service com-
 51        mission under the United States Civil Service System Retirement Act except
 52        that  a  person who receives separate remuneration for work currently per-
 53        formed for an employer and the United States government may elect to be  a
 54        member of the retirement system in accordance with rules of the board; or
 55        (g)  A person occupying a position that does not exceed eight (8) consecu-
  1        tive  months  in  a  calendar  year with a city or county when the city or
  2        county has certified, in writing to the system, the position is  (i)  sea-
  3        sonal  or  casual;  and  (ii)  affected by weather and the growing season,
  4        including parks and golf course positions.
  5        (15) "Employer" means the state of Idaho, or any political subdivision  or
  6    governmental  entity,  provided such subdivision or entity has elected to come
  7    into the system. Governmental entity means any organization composed of  units
  8    of  government of Idaho or organizations funded only by government or employee
  9    contributions or organizations who discharge governmental responsibilities  or
 10    proprietary  responsibilities that would otherwise be performed by government.
 11    All governmental entities are deemed to be political subdivisions for the pur-
 12    pose of this chapter.
 13        (15A) "Final contribution" means the final contribution made by  a  member
 14    pursuant to sections 59-1331 through 59-1334, Idaho Code.
 15        (16) "Firefighter" means an employee, including paid firefighters hired on
 16    or  after  October 1, 1980, whose primary occupation is that of preventing and
 17    extinguishing fires as determined by the rules of the board.
 18        (17) "Fiscal year" means the period beginning on July 1 in  any  year  and
 19    ending on June 30 of the next succeeding year.
 20        (18) "Fund"  means the public employee retirement fund established by this
 21    chapter.
 22        (19) "Funding agent" means any bank or banks, trust company or trust  com-
 23    panies,  legal  reserve life insurance company or legal reserve life insurance
 24    companies, or combinations thereof, any thrift institution or credit union  or
 25    any   investment  management firm or individual investment manager selected by
 26    the board to hold and/or invest the employers' and members' contributions  and
 27    pay certain benefits granted under this chapter.
 28        (20) "Inactive member" means a former active member who is not an employee
 29    and  is not receiving any form of retirement allowance, but for whom a separa-
 30    tion benefit has not become payable.
 31        (20A) "Lifetime annuity" means periodic monthly payments of income by  the
 32    retirement system to an alternate payee.
 33        (20B) "Lump  sum distribution" means a payment by the retirement system of
 34    the entire balance in the alternate payee's segregated account, together  with
 35    regular interest credited thereon.
 36        (21) "Member" means an active member, inactive member or a retired member.
 37        (22) "Membership  service"  means  military service which occurs after the
 38    commencement of contributions payable under sections 59-1331 through  59-1334,
 39    Idaho  Code, and service with respect to which contributions are payable under
 40    sections 59-1331 through 59-1334, Idaho Code, which, except for benefit calcu-
 41    lations described in sections 59-1342 and 59-1353, Idaho Code,  includes  ser-
 42    vice transferred to a segregated account under an approved domestic retirement
 43    order.
 44        (23) "Military  service"  means active duty service in the armed forces of
 45    the United States including the national guard and reserves, under the  provi-
 46    sions  of title 10, title 32, and title 37, United States code. Provided, how-
 47    ever, for the purposes of this chapter, military service SHALL NOT include:
 48        (a)  Any period ended by dishonorable discharge or during  which  termina-
 49        tion of such service is available but not accepted;
 50        (b)  Any  period which commences more than ninety (90) days after the per-
 51        son ceases to be an employee or ends more than ninety (90) days before the
 52        person again becomes an employee unless such ninety (90) day  requirements
 53        are  waived  by  the board due to circumstances beyond the employee's con-
 54        trol; or
 55        (c)  Any active duty service in excess of five (5) years if at the  conve-
  1        nience  of the United States government, or in excess of four (4) years if
  2        not at the convenience of the United States government.
  3        (24)  (a) "Police officer" for retirement purposes shall be as defined  in
  4        section 59-1303, Idaho Code.
  5        (b)  "POST"  means  the Idaho peace officer standards and training council
  6        established in chapter 51, title 19, Idaho Code.
  7        (25) "Prior service" means any period prior to July 1, 1965,  of  military
  8    service  or  of employment for the state of Idaho or any political subdivision
  9    or other employer of each employee who is an active member or in military ser-
 10    vice or on leave of absence on the date of establishment,  provided,  however,
 11    an employee who was not an active member or in military service or on leave of
 12    absence  on  the  date  of establishment shall receive credit for the member's
 13    service prior to July 1, 1965, on the basis of recognizing two (2)  months  of
 14    such  service for each month of membership service. For the purpose of comput-
 15    ing such service, no deduction shall be made  for  any  continuous  period  of
 16    absence from service or military service of six (6) months or less.
 17        (26) "Regular  interest"  means interest at the rate set from time to time
 18    by the board.
 19        (27) "Retired member" means a former active member receiving a  retirement
 20    allowance.
 21        (28) "Retirement"  means  the  acceptance  of a retirement allowance under
 22    this chapter upon termination of employment.
 23        (29) "Retirement board" or "board" means the board provided  for  in  sec-
 24    tions 59-1304 and 59-1305, Idaho Code, to administer the retirement system.
 25        (30) "Retirement  system" or "system" means the public employee retirement
 26    system of Idaho.
 27        (31) (A) "Salary" means:
 28        (a)  The total salary or wages paid to a person who meets  the  definition
 29        of  employee  by an employer for  personal services performed and reported
 30        by the employer for income tax purposes, including the cash value  of  all
 31        remuneration in any medium other than cash.
 32        (b)  The  total  amount  of any voluntary reduction in salary agreed to by
 33        the member and employer where the reduction is used as an alternative form
 34        of remuneration to the member.
 35        (B)  Salary in excess of the compensation limitations set forth in section
 36    401(a)(17) of the Internal Revenue Code shall be disregarded  for  any  person
 37    who becomes a member of the system on or after July 1, 1996. The system had no
 38    limitations  on compensation in effect on July 1, 1993. The compensation limi-
 39    tations set forth in section 401(a)(17) of the Internal Revenue Code shall not
 40    apply for an "eligible employee." For purposes of this  subsection,  "eligible
 41    employee" is an individual who was a member of the system before July 1, 1996.
 42        (C)  "Salary" does not include:
 43        (a)  Contributions by employers to employee held medical savings accounts,
 44        as those accounts are defined in section 63-3022K, Idaho Code.
 45        (b)  Lump  sum payments inconsistent with usual compensation patterns made
 46        by the employer to the employee only upon termination from service includ-
 47        ing, but not limited to,  vacation  payoffs,  sick  leave  payoffs,  early
 48        retirement incentive payments and bonuses.
 49        (31A) "Segregated account" means the account established by the retirement
 50    system  for  the  alternate  payee of a member who is not a retired member. It
 51    shall include the months of credited  service  and  accumulated  contributions
 52    transferred from the member's account.
 53        (32) "Separation benefit" means the amount, if any, payable upon or subse-
 54    quent to separation from service.
 55        (33) "Service"  means  being shown on an employer's payroll as an employee
  1    receiving a salary. For each calendar month, service is credited only  when  a
  2    member  is an employee as defined in subsection (14)(A) of this section and is
  3    employed for fifteen (15) days or more during the calendar  month.  Employment
  4    of fourteen (14) days or less during any calendar month shall not be credited.
  5    No more than one (1) month of service shall be credited for all service in any
  6    month.
  7        (34) "Service  retirement  allowance"  means the periodic payment becoming
  8    payable upon an active member's ceasing to be an employee while  eligible  for
  9    service retirement.
 10        (35) "State" means the state of Idaho.
 11        (36) "Vested  member"  means an active or inactive member who has at least
 12    five (5) years of credited service, except that a member, who at the  time  of
 13    his separation from service:
 14        (a)  Held an office to which he had been elected by popular vote or having
 15        a  term  fixed by the constitution, statute or charter or was appointed to
 16        such office by an elected official; or
 17        (b)  Was the head or director of a department, division, agency, statutory
 18        section or bureau of the state; or
 19        (c)  Was employed on or after July 1, 1965, by an elected official of  the
 20        state of Idaho and occupied a position exempt from the provisions of chap-
 21        ter 53, title 67, Idaho Code; and
 22        (d)  Was  not  covered  by  a  merit  system for employees of the state of
 23        Idaho; or
 24        (e)  Was an employee  of  a  university,  college,  community  college  or
 25        professional-technical  center in a research position funded by federal or
 26        private grant funds,
 27    is vested without regard to the length of credited service.
 28        (37) The masculine pronoun, wherever used, shall include the feminine pro-
 29    noun.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                            RS 14061C1

     This bill allows for individuals conducting research as
state employees, funded by "soft grant monies," who are mandated
to participate in PERSI, to be vested once qualified as state

                          FISCAL IMPACT

No impact to the general fund.

Name: Rep. Bayer 
Phone: 322 1000