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S1271.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to the
Public Employee Retirement System to clarify that suspended benefits are
considered retiree benefits in the event a death benefit becomes payable.
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
02/21 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Werk
Title apvd - to House
02/22 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 - 64-0-6
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Cannon, Chadderdon, Clark, Collins, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
Mathews, McGeachin, 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 -- Crow, Deal, Sali, Shepherd(8), Stevenson, Wood
Floor Sponsor - Lake
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 151
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1271
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 REVISE TERMINOLOGY AND TO CLARIFY THAT SUSPENDED BENEFITS
4 ARE CONSIDERED RETIREE BENEFITS IN THE EVENT A DEATH BENEFIT BECOMES PAY-
5 ABLE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 59-1356, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 59-1356. REEMPLOYMENT OF RETIRED MEMBERS. (1) If an early retired member
10 is reemployed with the same employer within ninety (90) days from retiring, or
11 the early retired member is guaranteed reemployment with the same employer the
12 member shall be considered to have continued in the status of an employee and
13 not to have separated from service. Any retirement allowance payments received
14 by the retired member shall be repaid to the system and the retirement shall
15 be negated. The month of last contribution prior to the negated retirement and
16 the month of initial contribution upon return to reemployment shall be consid-
17 ered consecutive months of contributions in the determination of an appropri-
18 ate salary base period upon subsequent retirement.
19 (2) When a retired member meets the definition of an employee as defined
20 in section 59-1302(14)(A)(a), Idaho Code, any benefit payable on behalf of
21 such member shall terminate be suspended and any contributions payable by such
22 member under sections 59-1331 through 59-1334, Idaho Code, shall again com-
23 mence, except as provided in subsection (3) of this section. The terminated
24 suspended benefit, as adjusted pursuant to section 59-1355, Idaho Code, shall
25 resume upon subsequent retirement, along with a separate allowance computed
26 with respect to only that salary and service credited during the period of
27 reemployment. Any death benefit that becomes payable under the suspended bene-
28 fit shall be payable under section 59-1361(2), Idaho Code. Any death benefit
29 that becomes payable with respect to salary and service accrued during the
30 period of reemployment shall be payable under section 59-1361(3), Idaho Code,
31 if the member dies during the period of reemployment.
32 (3) If a retired member again becomes employed and an employer certifies
33 to the board that the member does not qualify as an employee as defined in
34 this section and section 59-1302(14)(A)(a), Idaho Code, no contributions shall
35 be made by the member or employer during such reemployment and any benefit
36 payable on behalf of such member shall continue.
37 (4) For purposes of this section, "same employer" means the employer for
38 which the retired member last worked prior to retirement.
STATEMENT OF PURPOSE
RS 15334
Idaho Code 59-1361 defines death benefits payable on behalf of
active, inactive, disabled, and retired members of PERSI. Death
benefits payable on behalf of active, inactive, and disabled
members under subsection (3) are calculated at two (2) times a
member s accumulated contributions, less any benefits paid. Death
benefits payable on behalf of retired members under subsection
(2), if any, are equal to accumulated contributions less any
benefits paid.
Idaho Code 59-1356 permits retired members to return to PERSI
covered employment and provides that their monthly PERSI benefit
be "terminated" while they are so employed. This bill amends the
"terminated" language in Idaho Code 59-1356 to "suspended" to
more accurately describe the status of the benefit while re-
employed. It also clarifies that the member Is treated as a
retiree under subsection (2) of Idaho Code 59-1361 for purposes
of any death benefit that might be payable with respect to the
"suspended benefit." Any death benefit payable with respect to
new service accrued during the period of reemployment would be
paid according to the member s status at the time of death. This
means that the benefit accrued during the period of re-employment
could be paid under subsection (3) of Idaho Code 59-1361 if the
member dies during the period of reemployment. This is consistent
with current PERSI practice under current law.
FISCAL NOTE
None.
CONTACT
Name: Alan Winkle
Agency: PERSI
Phone: 334-2455
STATEMENT OF PURPOSE/FISCAL NOTE S 1271