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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's firefighter's wages or salary as
37 and when paid. The contribution shall be payable to the board by the end of
38 the succeeding payroll period, and shall be remitted 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 determined calculated annually on
42 October 1 no later than the first day of September by the director, in the
43 manner prescribed in section 72-1432, Idaho Code., from the payroll period
2
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 year all 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 annual average paid firefighter's salary or wage in the state of Idaho or
21 the monthly gross salary 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 sum The 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 purpose salary or
27 wage earned during the twelve (12) month period beginning July 1 and ending
28 June 30 immediately preceding year from September 1. to August 31, and Sums
29 shall be remitted by the end of the succeeding payroll period no later than
30 five (5) days after each pay date as herein provided 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