2006 Legislation
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SENATE BILL NO. 1271 – PERSI, benefits suspended, when


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Bill Status

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

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                       IN THE SENATE
                                    SENATE BILL NO. 1271
  1                                        AN ACT
  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 / Fiscal Impact

                       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

Name:    Alan Winkle
Agency:  PERSI
Phone:   334-2455

STATEMENT OF PURPOSE/FISCAL NOTE                         S 1271