2005 Legislation
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SENATE BILL NO. 1006 – PERSI, audits

SENATE BILL NO. 1006

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Bill Status



S1006.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to the
Public Employee Retirement System to include investment committee members
for purposes of indemnification; to provide that the board shall obtain all
audit and other services it deems appropriate; to provide for a general
investigation every four years; to provide that the board shall adopt the
assumptions in use by the system; and to provide that an independent
financial audit shall be conducted annually or as frequently as otherwise
determined by the board.
                                                                        
01/14    Senate intro - 1st rdg - to printing
01/17    Rpt prt - to Com/HuRes
02/02    Rpt out - rec d/p - to 2nd rdg
02/03    2nd rdg - to 3rd rdg
02/08    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Noble, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Compton
    Title apvd - to House
02/09    House intro - 1st rdg - to Com/HuRes
02/24    Rpt out - rec d/p - to 2nd rdg
02/25    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 67-0-3
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Mathews, McGeachin,
      McKague, Miller, Mitchell, Moyle, Nonini, Pasley-Stuart, Pence,
      Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler,
      Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30),
      Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Bedke, Martinez, Nielsen
    Floor Sponsor - Mathews
    Title apvd - to Senate
03/10    To enrol
03/11    Rpt enrol - Pres signed
03/14    Sp signed
03/15    To Governor
03/21    Governor signed
         Session Law Chapter 90
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1006
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING  SECTION  59-1305,
  3        IDAHO CODE, TO INCLUDE INVESTMENT COMMITTEE MEMBERS FOR PURPOSES OF INDEM-
  4        NIFICATION,  TO  PROVIDE  THAT  THE BOARD SHALL OBTAIN ALL AUDIT AND OTHER
  5        SERVICES IT DEEMS APPROPRIATE, TO  PROVIDE  FOR  A  GENERAL  INVESTIGATION
  6        EVERY FOUR YEARS, TO PROVIDE THAT THE BOARD SHALL ADOPT THE ASSUMPTIONS IN
  7        USE BY THE SYSTEM, TO PROVIDE THAT AN INDEPENDENT FINANCIAL AUDIT SHALL BE
  8        CONDUCTED  ANNUALLY  OR AS FREQUENTLY AS OTHERWISE DETERMINED BY THE BOARD
  9        AND TO MAKE TECHNICAL CHANGES.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION 1.  That Section 59-1305, Idaho Code, be, and the same  is  hereby
 12    amended to read as follows:
                                                                        
 13        59-1305.  POWERS  AND  DUTIES  OF  BOARD -- INDEMNIFICATION. (1) The board
 14    shall have the power and duty, subject to the limitations of this chapter,  of
 15    managing the system. It shall have the powers and privileges of a corporation,
 16    including  the right to sue and be sued in its own name as such board. Members
 17    of the retirement board, retirement system staff and retirement  system  mort-
 18    gage  and investment committee members who shall be found to be fiduciaries of
 19    the fund, jointly and individually, shall  be  indemnified  from  all  claims,
 20    demands,  judgments,  costs,  charges  and expenses, including court costs and
 21    attorney's fees, and against all liability losses and damages  of  any  nature
 22    whatsoever  that  retirement board members, retirement system staff or retire-
 23    ment system mortgage and investment committee members shall or may at any time
 24    sustain by reason of any decision made in the scope or  performance  of  their
 25    duties pursuant to the provisions of this section. The venue of all actions in
 26    which the board is a party shall be Ada Ccounty, Idaho.
 27        (2)  The board shall appoint an executive director to serve at its discre-
 28    tion. The executive director shall be the secretary to the board, bonded as is
 29    required  by the board and shall perform such duties as assigned by the board.
 30    The executive director shall be authorized to designate a staff member as act-
 31    ing director or secretary in the director's absence.
 32        (3)  The board shall authorize the creation of  whatever  staff  it  deems
 33    necessary for sound and economical administration of the system. The executive
 34    director  shall hire the persons for the staff who shall hold their respective
 35    positions subject to the rules of a merit system for state employees. The sal-
 36    aries and compensation of all persons employed for purposes  of  administering
 37    the system shall be fixed by the board and as otherwise provided by law.
 38        (4)  The  board  shall  arrange for obtain all actuarial, audit, legal and
 39    medical advisors services it deems appropriate for the system. It shall  cause
 40    a  competent  actuary  who  is a member of the academy of actuaries and who is
 41    familiar with public systems of pensions to be retained on a consulting basis.
 42    The actuary shall be the technical advisor of the board on  matters  regarding
 43    the  operation of the system. During the first year of operation of the system
                                                                        
                                           2
                                                                        
  1    and at least once every three four (34) years thereafter,  the  actuary  shall
  2    make  a  general investigation of the suitability of the actuarial tables used
  3    by the system. The board shall adopt the actuarial tables and  assumptions  in
  4    use  by the system and may change the same in its sole discretion at any time.
  5    The actuary shall make an annual valuation of the liabilities and reserves  of
  6    the  system,  and  an  annual  determination  of  the  amount of contributions
  7    required from the employers  under  this  chapter,  and  certify  the  results
  8    thereof  to the board. The actuary shall also perform such other duties as may
  9    be assigned by the board. An independent financial audit  shall  be  conducted
 10    annually or as frequently as otherwise determined by the board.
 11        (5)  The  board  shall establish the system's office or offices to be used
 12    for the meetings of the board and for the general purposes of the  administra-
 13    tive personnel. The board shall provide for the installation of a complete and
 14    adequate  system  of  accounts and records for administering this chapter. All
 15    books and records shall be kept in the system's offices.
 16        (6)  If the board determines that it has previously overpaid or  underpaid
 17    benefits  provided  under this chapter or chapter 14, title 72, Idaho Code, it
 18    shall correct the prior error. In the event of prior underpayment,  the  board
 19    shall  forthwith  pay  the  amount  of  the underpayment together with regular
 20    interest thereon. In the event of prior  overpayment,  the  board  may  offset
 21    future  benefit  payments by the amount of the prior overpayment together with
 22    regular interest thereon. Any such decision to offset future benefit  payments
 23    shall  be  administratively  and  judicially reviewable as provided in section
 24    59-1314, Idaho Code. Nothing herein contained shall be construed to limit  the
 25    rights of a member or the board to pursue any other remedy provided by law.

Statement of Purpose / Fiscal Impact


                    STATEMENT  OF  PURPOSE
                           RS 14393

This bill makes minor changes to the powers and duties of the 
Retirement Board and clarifies others by amending section 59-1305, 
Idaho Code, to provide statutory immunity not only to the mortgage 
committee as currently provided, but also to the investment 
committee; to clarify that the Retirement Board has authority and 
responsibility to obtain all services it deems appropriate to 
properly manage the retirement system consistent with its 
fiduciary duty, including but not limited to, audit services; to 
extend the required time frame for the actuary’s general 
investigation of actuarial tables from three (3) years to four (4) 
years to add management flexibility; and to clarify the Board’s 
authority to adopt actuarial assumptions other than in table form. 



                         FISCAL  IMPACT

None.




CONTACT	
Name:		Alan Winkle
Agency:		PERSI
Phone:		334-2455

Statement of Purpose/Fiscal Impact	        S 1006