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S1258.......................................by COMMERCE AND HUMAN RESOURCES PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to revise provisions relating to the calculation and remittance of certain firefighter retirement contributions to the Public Employee Retirement System Board; to revise provisions relating to the measurement and determination of the average paid salary or wage or individual firefighter's salary or wage; and to revise provisions relating to the remittance of pension fund contributions by cities and fire districts. 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 - Compton 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, Black, Block, Boe, Bolz, Bradford, 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, Campbell, Crow, Jaquet, Moyle, Raybould, Ridinger, Roberts, Stevenson, Mr. Speaker Floor Sponsor - Naccarato Title apvd - to Senate 03/16 To enrol 03/17 Rpt enrol - Pres signed 03/18 Sp signed 03/19 To Governor 03/24 Governor signed Session Law Chapter 295 Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE SENATE SENATE BILL NO. 1258 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 72-1431, 3 IDAHO CODE, TO REVISE PROVISIONS RELATING TO THE REMITTANCE OF CERTAIN 4 FIREFIGHTER RETIREMENT CONTRIBUTIONS TO THE PUBLIC EMPLOYEE RETIREMENT 5 SYSTEM BOARD, TO PROVIDE FOR THE CALCULATION OF THE AVERAGE PAID SALARY OR 6 WAGE OR THE INDIVIDUAL FIREFIGHTER'S SALARY OR WAGE BY THE DIRECTOR OF THE 7 PUBLIC EMPLOYEE RETIREMENT SYSTEM, TO REVISE PROVISIONS RELATING TO THE 8 DIRECTOR'S NOTIFICATION TO CITIES AND FIRE DISTRICTS REGARDING THE AMOUNT 9 OF CONTRIBUTIONS TO BE COLLECTED AND TO MAKE A TECHNICAL CORRECTION; 10 AMENDING SECTION 72-1432, IDAHO CODE, TO CLARIFY PROVISIONS RELATING TO 11 THE REMITTANCE OF CERTAIN PENSION FUND CONTRIBUTIONS BY CITIES AND FIRE 12 DISTRICTS TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM BOARD, TO REVISE PROVI- 13 SIONS RELATING TO THE MEASUREMENT AND DETERMINATION OF THE AVERAGE PAID 14 SALARY OR WAGE OR INDIVIDUAL FIREFIGHTER'S SALARY OR WAGE, TO REVISE PRO- 15 VISIONS RELATING TO THE REMITTANCE OF PENSION FUND CONTRIBUTIONS BY CITIES 16 AND FIRE DISTRICTS AND TO MAKE TECHNICAL CORRECTIONS; AND TO PROVIDE FOR 17 THE CALCULATION OF THE INITIAL AVERAGE PAID SALARY OR WAGE OR INDIVIDUAL 18 FIREFIGHTER'S SALARY OR WAGE FOR A DESIGNATED TWELVE MONTH PERIOD OF TIME. 19 Be It Enacted by the Legislature of the State of Idaho: 20 SECTION 1. That Section 72-1431, Idaho Code, be, and the same is hereby 21 amended to read as follows: 22 72-1431. CONTRIBUTION FROM FIREFIGHTERS -- MANNER OF COLLECTION. Begin- 23 ning October 1, 1978, there is hereby levied upon and shall be paid to the 24 public employee retirement system board, in addition to other provisions of 25 payment to the board, a contribution from each paid firefighter establishing 26 the right to benefits under the provisions of chapter 14, title 72, Idaho 27 Code, as follows: 28 (a) For a paid firefighter who selected Option I, as provided in section 29 72-1434, Idaho Code, the contribution shall be equal to eleven and forty-five 30 one hundredths percent (11.45%) of the average paid firefighter's salary or 31 wage in the state; 32 (b) For a paid firefighter who selected Option II, as provided in section 33 72-1434, Idaho Code, the contribution shall be equal to eleven and forty-five 34 one hundredths percent (11.45%) of his individual salary or wage. 35 The contribution shall be collected by the employer by deducting the 36 amount of the contribution from the fireman'sfirefighter's wages or salary as 37 and when paid. The contribution shall be payable to the board by the end of38 the succeeding payroll period, and shall beremitted to the retirement board 39 by the city or fire district employing the paid firefighter no later than five 40 (5) days after each pay date. The average paid salary or wage or the individ- 41 ual firefighter's salary or wage, shall be determinedcalculated annually on42 October 1no later than the first day of September by the director, in the 43 manner prescribed in section 72-1432, Idaho Code. , from the payroll period2 1 reports submitted to him on or before September 1 by the cities or fire dis-2 tricts; after determining the amount to be collected from each paid firefight-3 er as herein set out, tThe director shall notify each city and fire district 4 of the amount of the contribution to be collected based on the average paid 5 salary or wage or individual firefighter's salary or wage, as applicable, for 6 the ensuing fiscal yearall pay periods commencing on or after the first day 7 of October. 1.8 SECTION 2. That Section 72-1432, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 72-1432. PENSION FUND CONTRIBUTIONS BY CITIES AND FIRE DISTRICTS -- 11 REMITTANCES. Beginning October 1, 1978, it shall also be the duty of the cit- 12 ies and fire districts of this state employing paid firefighters who are 13 establishing the right to benefits under the provisions of chapter 14, title 14 72, Idaho Code, and of the boards and officers having authority therein, to 15 cause to be remitted to the public employee retirement system board, as an 16 incident to and part of the current expenses of such cities and fire dis- 17 tricts, a sum equivalent to the total contribution rate and tax percentage 18 paid into the Idaho public employee retirement system and the Ssocial 19 Ssecurity Aact on other public employees plus one percent (1%) thereafter of 20 the annualaverage paid firefighter's salary or wage in the state of Idaho or 21 the monthly grosssalary or wage of each individual firefighter, to be com- 22 puted according to the classification of each firefighter under Option I or 23 Option II as defined under section 72-1434, Idaho Code, for each paid fire- 24 fighter employed by said cities or fire districts. ; which said sumThe average 25 paid salary or wage or individual firefighter's salary or wage shall be mea- 26 sured and determined by the actual expenditures for such purposesalary or 27 wage earned during the twelve (12) month period beginning July 1 and ending 28 June 30 immediately preceding year fromSeptember 1. to August 31, andSums 29 shall be remitted by the end of the succeeding payroll periodno later than 30 five (5) days after each pay date as hereinprovided for remittances for indi- 31 vidual firefighters as set forth in section 72-1431, Idaho Code. 32 SECTION 3. When calculating the initial average paid salary or wage or 33 individual firefighter's salary or wage after July 1, 2004, salaries or wages 34 paid through August 31, 2003, shall not be included when determining salaries 35 or wages earned for the twelve (12) month period beginning July 1, 2003, and 36 ending June 30, 2004.
STATEMENT OF PURPOSE RS 13513C2 The Firefighters Retirement Fund (FRF) statutes require PERSI to annually calculate the "Statewide Average Firefighters Wage" which is used for the calculation of the FRF retiree COLA (Idaho Code 72- 1471) and for setting Option I firefighter contributions (Idaho Code 72-1434(1)). Idaho Code 72-1432 provides that the Average Salary is calculated from wages paid to "paid firefighters" from September 1 to August 31 of the following year. This has become increasingly difficult because new data system and procedures now require that employers report on a pay period basis (not monthly when paid). Additionally, one month is not adequate time to process all the information and get the new contribution rates back to employers in a timely fashion. This bill amends section 72-1431 and 72-1432, Idaho Code. First, it converts the compensation component to salary earned in a particular pay period rather than salary paid in a month. Second, it changes the measurement period to July 1 through June 30 (rather than Sept 1 through Aug 31), to more closely track the state fiscal year and to provide additional time for employers to change their payroll deductions. These changes will have no impact on the FRF members and will be more administratively accommodating for employers and the PERSI rate calculation. Section 3 of the bill addresses transition between the current and new methodologies used to determine the Statewide Average Firefighters Wage. Salary and wages paid through August 31, 2003, are already in the wage base under the current methodology, and therefore must be excluded from the salary and wages earned for the twelve (12) month period beginning July 1, 2003 and ending June 30, 2004, to avoid duplication under this new methodology. FISCAL IMPACT None. CONTACT Name: Alan H. Winkle Agency: Public Employees Retirement System Phone: 334-2455 Statement of Purpose/Fiscal Impact S 1258