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S1108.......................................by COMMERCE AND HUMAN RESOURCES
PERSI - Amends existing law relating to the Public Employee Retirement
System to provide that PERSI retirees who retire without early retirement
reductions and are reemployed after six months with an employer other than
the same employer may elect to continue receiving retirement benefits and
not accrue additional service; and to provide that the employer shall pay
contributions as determined by the board.
02/11 Senate intro - 1st rdg - to printing
02/14 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1108
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 59-1356,
3 IDAHO CODE, TO PROVIDE THAT PERSI RETIREES WHO RETIRE WITHOUT EARLY
4 RETIREMENT REDUCTIONS AND ARE REEMPLOYED AFTER SIX MONTHS WITH AN EMPLOYER
5 OTHER THAN THE SAME EMPLOYER MAY ELECT TO CONTINUE RECEIVING RETIREMENT
6 BENEFITS AND NOT ACCRUE ADDITIONAL SERVICE AND TO PROVIDE THAT THE
7 EMPLOYER SHALL PAY CONTRIBUTIONS AS DETERMINED BY THE BOARD; AND PROVIDING
8 AN EFFECTIVE DATE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 59-1356, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 59-1356. REEMPLOYMENT OF RETIRED MEMBERS. (1) If an early retired member
13 is reemployed with the same employer within ninety (90) days from retiring, or
14 the early retired member is guaranteed reemployment with the same employer the
15 member shall be considered to have continued in the status of an employee and
16 not to have separated from service. Any retirement allowance payments received
17 by the retired member shall be repaid to the system and the retirement shall
18 be negated. The month of last contribution prior to the negated retirement and
19 the month of initial contribution upon return to reemployment shall be consid-
20 ered consecutive months of contributions in the determination of an appropri-
21 ate salary base period upon subsequent retirement.
22 (2) When a retired member meets the definition of an employee as defined
23 in section 59-1302(14)(A)(a), Idaho Code, any benefit payable on behalf of
24 such member shall terminate and any contributions payable by such member under
25 sections 59-1331 through 59-1334, Idaho Code, shall again commence, except as
26 provided in subsection (3) of this section. The terminated benefit, as
27 adjusted pursuant to section 59-1355, Idaho Code, shall resume upon subsequent
28 retirement, along with a separate allowance computed with respect to only that
29 salary and service credited during the period of reemployment.
30 (3) If a retired member, who is receiving a benefit that is not reduced
31 under section 59-1346, Idaho Code, again becomes employed and an employer cer-
32 tifies to the board that the member does not qualify as an employee as defined
33 in this section and section 59-1302(14)(A)(a), Idaho Code, with an employer
34 other than the same employer more than six (6) months after retiring, the
35 retired member may elect to continue receiving benefits and not accrue addi-
36 tional service, in which event no contributions shall be made by the member or
37 employer during such reemployment and any benefit payable on behalf of such
38 member shall continue. The employer shall pay such contributions as determined
39 by the board.
40 (4) For purposes of this section, "same employer" means the employer for
41 which the retired member last worked prior to retirement.
42 SECTION 2. This act shall be in full force and effect on and after Janu-
2
1 ary 1, 2006.
STATEMENT OF PURPOSE
RS 14865
This bill amends Idaho Code 59-1356 to permit retirees under
the PERSI system to return to full time work with a PERSI employer
without a reduction in their benefit provided certain conditions
are met. The retiree must have retired with an unreduced
retirement benefit; can only return to an employer other than the
employer from which they retired; they must have at least a six
month break from their date of retirement to date of any re-
employment with a PERSI employer and the employer is required to
pay PERSI contributions as may be directed by the retirement
Board.
FISCAL IMPACT
The PERSI actuary has determined there will be an impact on the
PERSI fund due to this legislation. Under the assumption that 4%
of the future retirees will take advantage of this rehire
provision the actuary estimates an additional cost to the total
fund of 0.03% of pay and an additional $17.2 million to the
unfunded liability. The total costs are dependent upon the number
and characteristics of retirees who are rehired under this
provision; therefore the legislation provides that the Retirement
Board will establish an employer contribution rate, to provide for
appropriate funding of the impact of this benefit by those
employers involved.
Contact
Name: Senator Tim Corder, Senate
Phone: 332 1396
Rep. Rich Wills
Rep. Peter Nielsen
STATEMENT OF PURPOSE/FISCAL NOTE S 1108