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S1270.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to unused
sick leave funds administered by the Public Employee Retirement System to
revise provisions applicable to the severance allowance at retirement; to
clarify that amounts shall be determined by the Public Employee Retirement
Board; and to provide that amounts shall be used to pay premiums subject to
applicable federal tax limits for certain insurance programs.
01/18 Senate intro - 1st rdg - to printing
01/19 Rpt prt - to Com/HuRes
02/10 Rpt out - rec d/p - to 2nd rdg
02/13 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst,
Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Keough
Floor Sponsor - Stegner
Title apvd - to House
02/23 House intro - 1st rdg - to Com/HuRes
02/28 Rpt out - rec d/p - to 2nd rdg
03/01 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 61-0-9
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Clark, Collins, Denney, Edmunson, Ellsworth, Eskridge,
Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
Lake, LeFavour, Loertscher, Martinez, Mathews, McKague, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rusche, Rydalch, Sayler, Schaefer, Shepherd(2),
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail,
Wills, Mr. Speaker
NAYS -- None
Absent and excused -- Block, Crow, Deal, Field(18), McGeachin, Sali,
Shepherd(8), Stevenson, Wood
Floor Sponsor - Ringo
Title apvd - to Senate
03/13 To enrol
03/14 Rpt enrol - Pres signed
03/15 Sp signed
03/16 To Governor
03/22 Governor signed
Session Law Chapter 150
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1270
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO UNUSED SICK LEAVE FUNDS ADMINISTERED BY THE PUBLIC EMPLOYEE
3 RETIREMENT SYSTEM; AMENDING SECTION 33-1228, IDAHO CODE, TO REVISE PROVI-
4 SIONS APPLICABLE TO THE SEVERANCE ALLOWANCE AT RETIREMENT; AND AMENDING
5 SECTION 67-5339, IDAHO CODE, TO CLARIFY THAT AMOUNTS SHALL BE DETERMINED
6 BY THE RETIREMENT BOARD, TO PROVIDE THAT AMOUNTS SHALL BE USED TO PAY PRE-
7 MIUMS SUBJECT TO APPLICABLE FEDERAL TAX LIMITS FOR CERTAIN INSURANCE PRO-
8 GRAMS AND TO MAKE A TECHNICAL CORRECTION.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 33-1228, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 33-1228. SEVERANCE ALLOWANCE AT RETIREMENT. (1) Upon separation from pub-
13 lic school employment by retirement in accordance with chapter 13, title 59,
14 Idaho Code, an employee's unused sick leave shall be determined based on accu-
15 mulated sick leave earned subsequent to July 1, 1976, as provided by section
16 33-1218, Idaho Code, and shall be reported by the employer to the Idaho public
17 employee retirement system. A sum equal to one-half (1/2) of the monetary
18 value of such unused sick leave, calculated at the rate of pay for such
19 employee at the time of retirement, as determined by the retirement board,
20 shall be transferred from the sick leave account provided by subsection (2) of
21 this section and shall be credited to such employee's retirement account. Such
22 sums shall be used by the Idaho public employees' retirement board to continue
23 to pay, subject to applicable federal tax limits:
24 (a) Premiums for the retiree and the retiree's dependents at the rate for
25 the active employee's group health, accident long-term care, vision, pre-
26 scription drug and dental insurance programs as maintained by the employer
27 for the active employees until the retiree and/or the retiree's spouse
28 becomes eligible for medicare at which time the district shall make avail-
29 able a supplemental program to medicare for the eligible individual. Upon
30 the death of the retiree the surviving spouse's health coverage shall be
31 available and continued under the same terms and conditions as the
32 retiree. Coverage may be continued for the retiree's surviving dependent
33 spouse and dependents until remarriage of the spouse or until the
34 retiree's surviving dependent spouse is eligible for a group health pro-
35 gram by an employer. The medicare supplement program will provide the same
36 premium and benefits for all retirees of all the employers served by the
37 same insurance carrier. However, a school district may make available to
38 all retirees from that district other benefits in addition to the medicare
39 supplement program and the retiree or the district shall pay for such
40 additional benefits.
41 (b) Premiums at the time of retirement for the retiree for the life
42 insurance program maintained by the employer which may be reduced to a
43 minimum of five thousand dollars ($5,000) of coverage.
2
1 (2) The retiree may continue to pay the premiums for the health, acci-
2 dent, dental and life insurance to the extent of the funds credited to the
3 employee's account pursuant to this section and when these funds are expended
4 the premiums may be deducted from the retiree's allowance. Upon a retiree's
5 death, any unexpended sums remaining in the retiree's account shall revert to
6 the sick leave account. If funds are not available for payment by the Idaho
7 public employee retirement system from the retiree's surviving dependent
8 spouse's allowance, the insurance carrier shall implement a direct billing
9 procedure to permit the retiree's surviving spouse to continue coverage.
10 (3) Each employer shall contribute to a sick leave account maintained by
11 the public employee retirement system exclusively for the purpose of the pro-
12 visions of this section. The rate of such contribution each pay period shall
13 consist of a percentage of employees' salaries as determined by the board, and
14 such rate shall remain in effect until next determined by the board. Any
15 excess balance in the sick leave account shall be invested, and the earnings
16 therefrom shall accrue to the sick leave account except the amount required by
17 the board to defray administrative expenses. All moneys payable to the sick
18 leave account are hereby perpetually appropriated to the board, and shall not
19 be included in its departmental budget.
20 (4) For purposes of this section public school employment shall be
21 defined to permit inclusion of employees of organizations funded by school
22 districts or of contributions of employees of school districts.
23 SECTION 2. That Section 67-5339, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 67-5339. USE OF UNUSED SICK LEAVE. (1) Upon separation from state employ-
26 ment by retirement in accordance with chapter 13, title 59 or chapter 1, title
27 33, Idaho Code, an employee's unused sick leave shall be determined based on
28 accumulated sick leave earned subsequent to July 1, 1976, and shall be
29 reported by the employer to the public employee retirement system. Upon sepa-
30 ration from state employment by retirement in accordance with chapter 20,
31 title 1, Idaho Code, an employee's unused sick leave shall be determined based
32 on accumulated sick leave earned subsequent to July 1, 2000, and shall be
33 reported by the employer to the public employee retirement system. A sum equal
34 to one-half (1/2), or the maximum amount allowed by subsection (2) of this
35 section, whichever is the lesser, of the monetary value of such unused sick
36 leave, calculated at the rate of pay for such employee at the time of retire-
37 ment, as determined by the retirement board, shall be transferred from the
38 sick leave account provided by subsection (3) of this section and shall be
39 credited to such employee's retirement account. Such sums shall be used by the
40 Idaho public employee retirement board to pay premiums, subject to applicable
41 federal tax limits, for such group health, accident, dental, vision, long-term
42 care, prescription drug and life insurance programs as may be maintained by
43 the state, to the extent of the funds credited to the employee's account pur-
44 suant to this section. Upon an employee's death, any unexpended sums remaining
45 in the account shall revert to the sick leave account.
46 (2) For the purposes of determining the monetary value of unused sick
47 leave, the maximum unused sick leave which may be considered, shall be:
48 (a) During the first ten thousand four hundred (10,400) hours of credited
49 state service, the maximum unused sick leave which may be considered shall
50 be four hundred twenty (420) hours;
51 (b) During the second ten thousand four hundred (10,400) hours of cred-
52 ited state service, the maximum unused sick leave which may be considered
53 shall be four hundred eighty (480) hours;
3
1 (c) During the third ten thousand four hundred (10,400) hours of credited
2 state service, the maximum unused sick leave which may be considered shall
3 be five hundred forty (540) hours; and
4 (d) Thereafter, the maximum unused sick leave which may be considered
5 shall be six hundred (600) hours.
6 (3) Each employer in state government shall contribute to a sick leave
7 account maintained by the public employee retirement system exclusively for
8 the purpose of the provisions of this section. The rates of such contribution
9 each pay period shall consist of a percentage of employees' salaries as deter-
10 mined by the board, and such rates shall remain in effect until next deter-
11 mined by the board. Any excess balance in the sick leave account shall be
12 invested, and the earnings therefrom shall accrue to the sick leave account
13 except the amount required by the board to defray administrative expenses. All
14 moneys payable to the sick leave account are hereby perpetually appropriated
15 to the board, and shall not be included in its departmental budget. The state
16 insurance fund and public health districts shall be considered employers in
17 state government for purposes of participation under this section.
STATEMENT OF PURPOSE
RS 15333c1
Idaho Code 67-5339 and Idaho Code 33-1228 provide limited
benefits, based on accrued unused sick leave, to retirees of the
state and school districts respectively, for the payment of
certain qualified health related expenses. This bill amends both
sections to better define what expenses can be covered with
unused sick leave funds. It also makes amendments to better
define "rate of pay" for purposes of calculating unused sick
leave benefits. Finally, it emphasizes the broad authority of the
PERSI board to make necessary adjustments to reported "rate of
pay" and to applicable contribution rates in order to maintain
equity in the respective funds.
FISCAL NOTE
None.
CONTACT
Name: Alan Winkle
Agency: PERSI
Phone: 334-2455
STATEMENT OF PURPOSE/FISCAL NOTE S 1270