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S1002.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to the
Public Employee Retirement System to provide that certain contributions
shall be held in trust; to provide that the retirement board shall serve as
trustee of the trust; to set forth limitations applicable to trust assets;
and to provide that trust assets may be commingled for investment purposes
with other assets managed by the retirement board.
01/12 Senate intro - 1st rdg - to printing
01/15 Rpt prt - to Com/HuRes
02/14 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Goedde
Title apvd - to House
02/21 House intro - 1st rdg - to Com/HuRes
03/01 Rpt out - rec d/p - to 2nd rdg
03/02 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Jaquet, Killen, King, Kren, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, Mortimer, Moyle, Nielsen,
Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8),
Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Henderson, Labrador, McGeachin
Floor Sponsor - Thayn
Title apvd - to Senate
03/07 To enrol
03/08 Rpt enrol - Pres signed - Sp signed
03/09 To Governor
03/14 Governor signed
Session Law Chapter 78
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1002
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING SECTION 33-1228,
3 IDAHO CODE, TO PROVIDE THAT CERTAIN CONTRIBUTIONS SHALL BE HELD IN TRUST,
4 TO PROVIDE THAT THE RETIREMENT BOARD SHALL SERVE AS TRUSTEE OF THE TRUST,
5 TO SET FORTH LIMITATIONS APPLICABLE TO TRUST ASSETS AND TO PROVIDE THAT
6 TRUST ASSETS MAY BE COMMINGLED FOR INVESTMENT PURPOSES WITH OTHER ASSETS
7 MANAGED BY THE RETIREMENT BOARD; AMENDING SECTION 67-5333, IDAHO CODE, TO
8 PROVIDE THAT CERTAIN CONTRIBUTIONS SHALL BE HELD IN TRUST, TO PROVIDE THAT
9 THE RETIREMENT BOARD SHALL SERVE AS TRUSTEE OF THE TRUST, TO SET FORTH
10 LIMITATIONS APPLICABLE TO TRUST ASSETS AND TO PROVIDE THAT TRUST ASSETS
11 MAY BE COMMINGLED FOR INVESTMENT PURPOSES WITH OTHER ASSETS MANAGED BY THE
12 RETIREMENT BOARD.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 33-1228, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 33-1228. SEVERANCE ALLOWANCE AT RETIREMENT. (1) Upon separation from pub-
17 lic school employment by retirement in accordance with chapter 13, title 59,
18 Idaho Code, an employee's unused sick leave shall be determined based on accu-
19 mulated sick leave earned subsequent to July 1, 1976, as provided by section
20 33-1218, Idaho Code, and shall be reported by the employer to the Idaho public
21 employee retirement system. A sum equal to one-half (1/2) of the monetary
22 value of such unused sick leave, calculated at the rate of pay for such
23 employee at the time of retirement, as determined by the retirement board,
24 shall be transferred from the sick leave account provided by subsection (2) of
25 this section and shall be credited to such employee's retirement account. Such
26 sums shall be used by the retirement board to continue to pay, subject to
27 applicable federal tax limits:
28 (a) Premiums for the retiree and the retiree's dependents at the rate for
29 the active employee's group health, long-term care, vision, prescription
30 drug and dental insurance programs as maintained by the employer for the
31 active employees until the retiree and/or the retiree's spouse becomes
32 eligible for medicare at which time the district shall make available a
33 supplemental program to medicare for the eligible individual. Upon the
34 death of the retiree the surviving spouse's health coverage shall be
35 available and continued under the same terms and conditions as the
36 retiree. Coverage may be continued for the retiree's surviving dependent
37 spouse and dependents until remarriage of the spouse or until the
38 retiree's surviving dependent spouse is eligible for a group health pro-
39 gram by an employer. The medicare supplement program will provide the same
40 premium and benefits for all retirees of all the employers served by the
41 same insurance carrier. However, a school district may make available to
42 all retirees from that district other benefits in addition to the medicare
43 supplement program and the retiree or the district shall pay for such
2
1 additional benefits.
2 (b) Premiums at the time of retirement for the retiree for the life
3 insurance program maintained by the employer which may be reduced to a
4 minimum of five thousand dollars ($5,000) of coverage.
5 (2) The retiree may continue to pay the premiums for the health, acci-
6 dent, dental and life insurance to the extent of the funds credited to the
7 employee's account pursuant to this section and when these funds are expended
8 the premiums may be deducted from the retiree's allowance. Upon a retiree's
9 death, any unexpended sums remaining in the retiree's account shall revert to
10 the sick leave account. If funds are not available for payment by the Idaho
11 public employee retirement system from the retiree's surviving dependent
12 spouse's allowance, the insurance carrier shall implement a direct billing
13 procedure to permit the retiree's surviving spouse to continue coverage.
14 (3) Each employer shall contribute to a sick leave account maintained by
15 the public employee retirement system in trust exclusively for the purpose of
16 the provisions of this section. The retirement board shall serve as trustee of
17 the trust and shall be indemnified to the same extent as provided in section
18 59-1305, Idaho Code. Assets in the trust shall not be assignable or subject to
19 execution, garnishment or attachment or to the operation of any bankruptcy or
20 insolvency law. The rate of such contribution each pay period shall consist of
21 a percentage of employees' salaries as determined by the board, and such rate
22 shall remain in effect until next determined by the board. Any excess balance
23 in the sick leave account shall be invested, and the earnings therefrom shall
24 accrue to the sick leave account except the amount required by the board to
25 defray administrative expenses. Assets of the trust may be commingled for
26 investment purposes with other assets managed by the retirement board. All
27 moneys payable to the sick leave account are hereby perpetually appropriated
28 to the board, and shall not be included in its departmental budget.
29 (4) For purposes of this section public school employment shall be
30 defined to permit inclusion of employees of organizations funded by school
31 districts or of contributions of employees of school districts.
32 SECTION 2. That Section 67-5333, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 67-5333. SICK LEAVE. (1) Sick leave shall be computed as follows:
35 (a) The rate per hour at which sick leave shall accrue to classified
36 officers and employees earning credited state service shall be at the rate
37 represented by the proportion 96/2080. Sick leave shall accrue without
38 limit, and shall be transferable from department to department.
39 (b) Sick leave shall not accrue to any officer or employee on any kind of
40 leave of absence without pay, suspension without pay or layoff. Sick leave
41 shall accrue while an officer or employee is on approved leave with pay,
42 on approved vacation leave, on approved military leave with pay, and on
43 approved sick leave, but not when compensatory time or earned administra-
44 tive leave is taken.
45 (c) All accrued sick leave shall be forfeited at the time of separation
46 from state service and no officer or employee shall be reimbursed for
47 accrued sick leave at the time of separation, except as provided in sub-
48 section (2) of this section. If such officer or employee returns to cred-
49 ited state service within three (3) years of such separation, all sick
50 leave credits accrued at the time of separation shall be reinstated,
51 except to the extent that unused sick leave was utilized for the purposes
52 specified in subsection (2) of this section.
53 (d) Sick leave shall be taken on a workday basis. Regularly scheduled
3
1 days off and officially designated holidays falling within a period of
2 sick leave shall not be counted against sick leave. Sick leave shall not
3 be taken in advance of being earned.
4 (e) In cases where absences for sick leave exceed three (3) consecutive
5 working days, the appointing authority may require verification by a phy-
6 sician or other authorized practitioner.
7 (f) If an absence for illness or injury extends beyond the sick leave
8 accrued to the credit of the officer or employee, the officer or employee
9 may be granted leave without pay.
10 (g) The administrator shall prescribe additional requirements for sick
11 leave for classified officers and employees on a part-time or irregular
12 schedule, for maintaining sick leave records, for funeral leave, and such
13 other applicable purposes as necessary.
14 (2) Unused sick leave may be used as follows:
15 (a) Upon separation from state employment by retirement in accordance
16 with chapter 13, title 59 or chapter 1, title 33, Idaho Code, an
17 employee's unused sick leave shall be determined based on accumulated sick
18 leave earned subsequent to July 1, 1976, and shall be reported by the
19 employer to the public employee retirement system. Upon separation from
20 state employment by retirement in accordance with chapter 20, title 1,
21 Idaho Code, an employee's unused sick leave shall be determined based on
22 accumulated sick leave earned subsequent to July 1, 2000, and shall be
23 reported by the employer to the public employee retirement system. A sum
24 equal to one-half (1/2), or the maximum amount allowed by paragraph (b) of
25 this subsection (2), whichever is the lesser, of the monetary value of
26 such unused sick leave, calculated at the rate of pay for such employee at
27 the time of retirement, as determined by the retirement board, shall be
28 transferred from the sick leave account provided by paragraph (c) of this
29 subsection (2) and shall be credited to such employee's retirement
30 account. Such sums shall be used by the Idaho public employee retirement
31 board to pay premiums, subject to applicable federal tax limits, for such
32 group health, dental, vision, long-term care, prescription drug and life
33 insurance programs as may be maintained by the state, to the extent of the
34 funds credited to the employee's account pursuant to this section. Upon an
35 employee's death, any unexpended sums remaining in the account shall
36 revert to the sick leave account.
37 (b) For the purposes of determining the monetary value of unused sick
38 leave, the maximum unused sick leave which may be considered, shall be:
39 (i) During the first ten thousand four hundred (10,400) hours of
40 credited state service, the maximum unused sick leave which may be
41 considered shall be four hundred twenty (420) hours;
42 (ii) During the second ten thousand four hundred (10,400) hours of
43 credited state service, the maximum unused sick leave which may be
44 considered shall be four hundred eighty (480) hours;
45 (iii) During the third ten thousand four hundred (10,400) hours of
46 credited state service, the maximum unused sick leave which may be
47 considered shall be five hundred forty (540) hours; and
48 (iv) Thereafter, the maximum unused sick leave which may be consid-
49 ered shall be six hundred (600) hours.
50 (c) Each employer in state government shall contribute to a sick leave
51 account maintained by the public employee retirement system in trust
52 exclusively for the purpose of the provisions of this section. The retire-
53 ment board shall serve as trustee of the trust and shall be indemnified to
54 the same extent as provided in section 59-1305, Idaho Code. Assets in the
55 trust shall not be assignable or subject to execution, garnishment or
4
1 attachment or to the operation of any bankruptcy or insolvency law. The
2 rate of such contribution each pay period shall consist of a percentage of
3 employees' salaries as determined by the board, and such rate shall remain
4 in effect until next determined by the board. Any excess balance in the
5 sick leave account shall be invested, and the earnings therefrom shall
6 accrue to the sick leave account except the amount required by the board
7 to defray administrative expenses. Assets of the trust may be commingled
8 for investment purposes with other assets managed by the retirement board.
9 All moneys payable to the sick leave account are hereby perpetually appro-
10 priated to the board, and shall not be included in its departmental bud-
11 get. The state insurance fund and public health districts shall be consid-
12 ered employers in state government for purposes of participation under
13 this section.
STATEMENT OF PUPPOSE
RS 16457
This bill makes similar amendments to section 67-5333, Idaho Code,
governing unused sick leave funds for state employees, and to section
33-1228, Idaho Code, governing unused sick leave funds for school
district employees. In both cases, regular contributions are collected
by PERSI and managed to pay the benefits provided by those sections. In
order to protect those funds so they can be used for their intended
purpose, this bill clarifies that the funds are held in trust and not
subject to claims of creditors. It also designates the Retirement
Board, who currently manages the funds, as trustees of the trust and
indemnifies them. Finally, it clarifies that assets in the trust may be
commingled for investment purposes with other assets managed by the
Retirement Board.
FISCAL NOTE
None.
CONTACT
Name: Alan Winkle
Agency: PERSI
Phone: 334-2455
STATEMENT OF PURPOSE/FISCAL NOTE S 1002