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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
]]]] 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
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