View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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's
32 surviving spouse If 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