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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 securityaccount 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