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S1345.......................................by COMMERCE AND HUMAN RESOURCES
PERSI RETIREES - REEMPLOYMENT - Amends existing law to provide that Public
Employee Retirement System retirees who retire without early retirement
reductions and who are reemployed after being retired for at least six
months, may elect to continue receiving retirement benefits and not accrue
additional service if they are subsequently elected to a public office
other than an office held prior to retirement.
02/03 Senate intro - 1st rdg - to printing
02/06 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 - 32-1-2
AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Langhorst, Lodge,
Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder,
Stegner, Stennett, Sweet, Werk, Williams
NAYS -- Little
Absent and excused -- Kelly, Keough
Floor Sponsor - Corder
Title apvd - to House
02/23 House intro - 1st rdg - to Com/HuRes
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 64-0-6
AYES -- Anderson, Andrus, Barraclough, Barrett, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Clark,
Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Kemp, Lake,
LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
Smylie, Stevenson, Trail, Wills, Mr. Speaker
NAYS -- None
Absent and excused -- Bastian, Chadderdon, Crow, Jaquet, Snodgrass,
Wood
Floor Sponsor - McKague
Title apvd - to Senate
03/17 To enrol
03/20 Rpt enrol - Pres signed - Sp signed
03/21 To Governor
03/24 Governor signed
Session Law Chapter 185
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1345
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 BEING RETIRED FOR AT LEAST
5 SIX MONTHS MAY ELECT TO CONTINUE RECEIVING RETIREMENT BENEFITS AND NOT
6 ACCRUE ADDITIONAL SERVICE IF THEY ARE SUBSEQUENTLY ELECTED TO A PUBLIC
7 OFFICE OTHER THAN AN OFFICE HELD PRIOR TO RETIREMENT.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 59-1356, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 59-1356. REEMPLOYMENT OF RETIRED MEMBERS. (1) If an early retired member
12 is reemployed with the same employer within ninety (90) days from retiring, or
13 the early retired member is guaranteed reemployment with the same employer the
14 member shall be considered to have continued in the status of an employee and
15 not to have separated from service. Any retirement allowance payments received
16 by the retired member shall be repaid to the system and the retirement shall
17 be negated. The month of last contribution prior to the negated retirement and
18 the month of initial contribution upon return to reemployment shall be consid-
19 ered consecutive months of contributions in the determination of an appropri-
20 ate salary base period upon subsequent retirement.
21 (2) Except as provided in subsection (3) of this section, wWhen a retired
22 member meets the definition of an employee as defined in section
23 59-1302(14)(A)(a), Idaho Code, any benefit payable on behalf of such member
24 shall terminate and any contributions payable by such member under sections
25 59-1331 through 59-1334, Idaho Code, shall again commence, except as provided
26 in subsection (3) of this section. The terminated benefit, as adjusted pursu-
27 ant to section 59-1355, Idaho Code, shall resume upon subsequent retirement,
28 along with a separate allowance computed with respect to only that salary and
29 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, and who has been retired for more than six
32 (6) months, again becomes employed and an employer certifies to the board that
33 the member does not qualify as an employee as defined in this section and sec-
34 tion 59-1302(14)(A)(ab), Idaho Code, as a result of being elected to a public
35 office other than an office held prior to retirement, the retired member may
36 elect to continue receiving benefits and not accrue additional service, in
37 which event no contributions shall be made by the member or employer during
38 such reemployment and any benefit payable on behalf of such member shall con-
39 tinue.
40 (4) For purposes of this section, "same employer" means the employer for
41 which the retired member last worked prior to retirement.
STATEMENT OF PURPOSE
RS 15830
It is difficult to encourage highly qualified citizens to perform public service and run for
elected offices, particularly in the more rural areas of Idaho. Currently a PERSI retiree
may be elected to a part-time office and it will not affect their retirement benefit.
However, a PERSI retiree who is elected to a full-time office must stop receiving their
retirement benefit, make contributions to PERSI from their salary and will accrue an
additional PERSI benefit. Depending upon the salary of the full-time office and the
PERSI benefit the retiree is receiving, this willingness to perform public service in a full-
time elected office could work a fmancial hardship on the retiree.
The intent of this amendment is to offer the same existing re-employment right to retirees
who are elected to a part-time office (less than 20 hours per week), to retirees who are
elected to full-time office. Under current PERSI statutes and rules a retired PERSI
member who is elected to a public office and who is not normally required to perform
services of 20 hours per week or more, or for not more than five consecutive months can
continue to receive their PERSI benefits and receive the salary for the elected office. The
amendment will allow retired PERSI members who are elected to a public office that
requires them to perform services of 20 hours per week or more, or for more than five
consecutive months to continue to received their PERSI benefit and receive the salary for
the full time elected office, under certain circumstances. The retiree must have retired
with an unreduced retirement allowance, must have been retired for six months and
cannot be returning to the same office from which they retired.
This amendment is narrowly drafted to make re-employment arrangements for PERSI
retiree s equivalent between part-time and full-time elected offices. It is not the intent of
the legislature to expand re-employment right of retirees other than this specific
amendment.
FISCAL IMPACT
There is no fiscal impact on the general fund. The actuary determined most of the costs
are eliminated because 1) the retiree must be retired at least 6 months, 2) the retiree must
be elected to a different position than one that may have been held prior to retirement and
3) no benefit is accrued during the reemployment. The only actual cost impact is the loss
of UAAL contributions which is determined to be very small (2.79% of salary).
Contact
Senator Dean Cameron
Senator Joe Stegner
Senator Dick Compton
Senator Tim Corder
STATEMENT OF PURPOSE/FISCAL NOTE S 1345