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S1259.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law to require that
members account numbers rather than social security numbers be specified in
approved domestic retirement orders; to delete the requirement that social
security numbers be provided for alternate payees in domestic retirement
orders; and to require that social security numbers of alternate payees be
provided to the Public Employee Retirement System Board prior to the
approval of domestic retirement orders.
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 - Werk
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 - 60-0-10
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Black, Block,
Boe, Bolz, Bradford, Cannon, Clark, Collins, Crow, 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, Jaquet, Moyle, Raybould,
Ridinger, Roberts, Stevenson, Mr. Speaker
Floor Sponsor - Trail
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 212
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1259
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1319,
3 IDAHO CODE, TO ELIMINATE THE REQUIREMENT THAT THE SOCIAL SECURITY NUMBER
4 OF A MEMBER BE SPECIFIED IN AN APPROVED DOMESTIC RETIREMENT ORDER, TO
5 REQUIRE THAT THE ACCOUNT NUMBER OF A MEMBER BE SPECIFIED IN AN APPROVED
6 DOMESTIC RETIREMENT ORDER, TO ELIMINATE THE REQUIREMENT THAT THE SOCIAL
7 SECURITY NUMBER OF AN ALTERNATE PAYEE BE SPECIFIED IN AN APPROVED DOMESTIC
8 RETIREMENT ORDER AND TO REQUIRE THAT THE SOCIAL SECURITY NUMBER OF AN
9 ALTERNATE PAYEE BE PROVIDED TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM BOARD
10 PRIOR TO A DOMESTIC RETIREMENT ORDER BEING APPROVED BY THE EXECUTIVE
11 DIRECTOR OF THE PUBLIC EMPLOYEE RETIREMENT SYSTEM OR HIS DESIGNEE.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 59-1319, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 59-1319. APPROVED DOMESTIC RETIREMENT ORDERS -- REQUIREMENTS. (1) An
16 approved domestic retirement order must meet the following requirements:
17 (a) Clearly specify that such order applies to the retirement system;
18 (b) Clearly specify the effective date of the order, which is the date of
19 divorce or the date of an earlier property settlement agreement incorpo-
20 rated into the initial divorce decree, the name, social security account
21 number, date of birth, sex, and last known mailing address of the member
22 and the name, social security number, date of birth, sex, and last known
23 mailing address of the alternate payee covered by the order;
24 (c) Provide for a proportional reduction of the amount awarded to an
25 alternate payee in the event that benefits available to the member are
26 reduced by law;
27 (d) For benefits as defined in chapter 13, title 59, Idaho Code, for mem-
28 bers who are not retired members: (i) clearly specify the amount or per-
29 centage of the member's taxed and tax deferred accumulated contributions
30 which are to be credited to the segregated account or the manner in which
31 such amount or percentage is to be determined, and (ii) clearly specify
32 the member's months of credited service, either by specific amount or per-
33 centage, to be transferred by the retirement system to the segregated
34 account or the manner in which such amount or percentage is to be deter-
35 mined. The months of credited service transferred to the alternate payee
36 shall be proportional to the accumulated contributions attributable to
37 such months of credited service. Months of credited service transferred
38 shall be whole months and not partial months;
39 (e) For benefits as defined in chapter 13, title 59, Idaho Code, for
40 retired members, clearly specify the amount or percentage of the member's
41 benefit being paid that the retirement system is to pay to the alternate
42 payee, or the manner in which such amount or percentage is to be deter-
43 mined; and
2
1 (f) For benefits as defined in chapter 14, title 72, Idaho Code, clearly
2 specify the amount or percentage of the member's benefit paid at the time
3 of retirement which the retirement system is to pay to the alternate
4 payee, or the manner in which such percentage is to be determined.
5 (2) An approved domestic retirement order cannot:
6 (a) Require the retirement system to provide any type or form of benefit
7 or any option not otherwise provided under the retirement system;
8 (b) Require the retirement system to provide increased benefits deter-
9 mined on the basis of actuarial value;
10 (c) Require the payment of benefits to an alternate payee which are
11 required to be paid to another alternate payee under another order previ-
12 ously determined to be an approved domestic retirement order or a court
13 order entered prior to July 1, 1998;
14 (d) Require any action on the part of the retirement system contrary to
15 its governing statutes or rules other than the direct payment of the bene-
16 fit awarded to an alternate payee;
17 (e) Segregate or attempt to segregate the right to reinstate previous
18 credited service as provided in section 59-1360, Idaho Code, unless such
19 credited service has been fully reinstated by full payment of contribu-
20 tions and interest as provided in section 59-1360, Idaho Code;
21 (f) Purport to award to the alternate payee any future benefit increases
22 that are provided or required by the legislature, except as provided in
23 subsections (6) and (7) of section 59-1320, Idaho Code; or
24 (g) Require the payment of benefits to an alternate payee before the date
25 on which the alternate payee attains the earliest retirement age under the
26 retirement system. However, an alternate payee may take a lump sum distri-
27 bution any time prior to receiving a lifetime annuity payment.
28 (3) In no event shall an approved domestic retirement order cause the
29 retirement system to pay any benefit or any amount of benefit greater than
30 would have been paid had the member's account not been segregated.
31 (4) A party to any domestic retirement order issued prior to July 1,
32 1998, which distributes benefits defined in either chapter 13, title 59, Idaho
33 Code, or chapter 14, title 72, Idaho Code, may move the court to modify such
34 order to comply with the requirements of this section and section 59-1320,
35 Idaho Code, provided that modifications be limited to issues related to the
36 distribution of benefits defined in either chapter 13, title 59, Idaho Code,
37 or chapter 14, title 72, Idaho Code, and that the value of the distribution is
38 not materially changed.
39 (5) The alternate payee's social security number shall be provided to the
40 board before a domestic retirement order is approved under section 59-1320,
41 Idaho Code, in a manner prescribed by the board.
STATEMENT OF PURPOSE
RS 13580
Congress has recently passed legislation that effectively limits
the use of social security numbers in an effort to protect
citizens' private information. Prudent business practices also
require protection of members' sensitive information. This bill
does not eliminate the requirement that social security numbers be
provided to PERSI when seeking an approved domestic retirement
order. However, it eliminates the requirement that social security
numbers be included in domestic retirement orders so they do not
become public records when filed with the court. Since PERSI
already has access to the member's social security number, only the
member's account number needs to be included in the domestic
retirement order. The alternate payee's social security number
still needs to be provided to PERSI before an order is approved, in
a manner outside of the order, as determined by the retirement
board.
FISCAL IMPACT
None.
CONTACT
Name: Alan Winkle
Agency: Public Employees Retirement System of Idaho (PERSI)
Phone: 334-2455
Statement of Purpose/Fiscal Impact S 1259