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S1257.......................................by COMMERCE AND HUMAN RESOURCES PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to revise provisions relating to waiver of a death benefit of a member of the Public Employee Retirement System by a designated beneficiary and the consequences of such waiver. 01/30 Senate intro - 1st rdg - to printing 02/02 Rpt prt - to Com/HuRes 02/16 Rpt out - rec d/p - to 2nd rdg 02/17 2nd rdg - to 3rd rdg 02/24 3rd rdg - PASSED - 33-0-2 AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw, Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- Hill, Richardson Floor Sponsor - Noble Title apvd - to House 02/25 House intro - 1st rdg - to Com/HuRes 03/10 Rpt out - rec d/p - to 2nd rdg 03/11 2nd rdg - to 3rd rdg 03/15 3rd rdg - PASSED - 59-0-11 AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer, Miller, Mitchell, Naccarato, Nielsen, Pasley-Stuart, Ring, Ringo, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Wood NAYS -- None Absent and excused -- Bedke, Bell, Black, Crow, Jaquet, Moyle, Raybould, Ridinger, Roberts, Stevenson, Mr. Speaker Floor Sponsor - Bauer Title apvd - to Senate 03/16 To enrol 03/17 Rpt enrol - Pres signed 03/18 Sp signed 03/19 To Governor 03/23 Governor signed Session Law Chapter 211 Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE SENATE SENATE BILL NO. 1257 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1361, 3 IDAHO CODE, TO REVISE PROVISIONS RELATING TO WAIVER OF A DEATH BENEFIT OF 4 A MEMBER OF THE PUBLIC EMPLOYEE RETIREMENT SYSTEM BY A DESIGNATED BENEFI- 5 CIARY AND THE CONSEQUENCES OF SUCH WAIVER. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 59-1361, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 59-1361. COMPUTATION OF DEATH BENEFITS -- METHOD OF PAYMENT -- OPTIONAL 10 DEATH BENEFIT. (1) The death benefit of an active or inactive member not 11 vested at time of death shall equal the excess, if any, of the member's accu- 12 mulated contributions at the time the benefit becomes payable over the aggre- 13 gate of all benefit payments ever made to the member. 14 (2) The death benefit of an early or service retired member shall equal 15 the excess, if any, of the member's accumulated contributions at the time the 16 member retired over the aggregate of all retirement allowance payments ever 17 made to the member, the member's named contingent annuitant, and the optional 18 death benefit recipient, if any. 19 (3) The death benefit of a vested member who, at the time of death is 20 either active, inactive, or a disability retiree, shall equal the excess, if 21 any, of two hundred percent (200%) of the member's accumulated contributions 22 at the time of death over the aggregate of all benefit payments ever made to 23 the member and the optional death benefit recipient, if any. 24 (4) The death benefit, if any, will be paid to the member's designated 25 beneficiary who is surviving the member at the time the benefit becomes pay- 26 able. If no beneficiary has been designated or the designated beneficiary has 27 predeceased the member, the death benefit will be paid to the surviving 28 spouse, and if there is no surviving spouse it will be paid in accordance with 29 the laws of descent and distribution of the state of Idaho as they may then be 30 in effect. The designated beneficiary may waive, in writing as required by the 31 board, any death benefit otherwise payable. and have it paid to the member's32 surviving spouseIf the designated beneficiary waives the death benefit, it 33 will be paid as if the designated beneficiary predeceased the member. 34 (5) When the surviving spouse of a vested member is entitled to a death 35 benefit under subsection (3) of this section, the surviving spouse may elect 36 either an allowance as provided in option 1 under section 59-1351, Idaho Code, 37 or a one (1) time lump sum death benefit payment as provided in subsection (3) 38 of this section. The initial retirement allowance upon which such optional 39 retirement allowance is based shall be calculated as if the member had retired 40 immediately before his death. If the member is not then eligible to receive a 41 service or early retirement allowance, such initial retirement allowance shall 42 equal the actuarial equivalent of the retirement allowance payable when the 43 member would first be eligible for service or early retirement, calculated as 2 1 if he had separated from service immediately before his death.
STATEMENT OF PURPOSE RS 13486 Currently Idaho Code 59-1361(4) permits the designated beneficiary of a PERSI death benefit to waive the benefit and have it paid to the member's surviving spouse. At times, a beneficiary may wish to waive the death benefit when there is no surviving spouse, or for reasons other than providing for a surviving spouse. Because of the limiting language in section 59-1361, in such situations the beneficiary has been required to formally renunciate the benefit as provided in the Uniform Probate Code, section 15-2-801. This is burdensome because it requires filing of court documents and generally requires the services of an attorney. This bill amends section 59-1361(4), Idaho Code, to permit designated beneficiaries to simply waive their death benefit for any reason. Beneficiaries will be able to more easily make the benefit available to other family members for financial planning purposes. The designated beneficiary would only be required to sign a notarized waiver form rather than having to file court documents. If a designated beneficiary waives a benefit under the amended law, the benefit would be paid as if the beneficiary had predeceased the member. FISCAL IMPACT None. CONTACT Name: Alan H. Winkle Agency: Public Employees Retirement System Phone: 334-2455 Statement of Purpose/Fiscal Impact S 1257