2007 Legislation
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SENATE BILL NO. 1003 – PERSI, retired member, employed


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Bill Status

S1003.......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to the
Public Employee Retirement System to set forth contribution and payment
provisions to apply when an employer fails to properly report the
employment of a retired member and benefit payments have been made.
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 - Coiner
    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 - 68-0-2
      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, Henderson, 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.
      NAYS -- None
      Absent and excused -- Labrador, McGeachin
    Floor Sponsor - Mortimer
    Title apvd - to Senate
03/07    To enrol
03/08    Rpt enrol - Pres signed - Sp signed
03/09    To Governor
03/12    Governor signed
         Session Law Chapter 45
         Effective: 07/01/07

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                       IN THE SENATE
                                    SENATE BILL NO. 1003
  1                                        AN ACT
  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)  Except  as provided in subsection (3) of this section, when a retired
 20    member  meets  the  definition  of  an  employee   as   defined   in   section
 21    59-1302(14)(A)(a),  Idaho  Code,  any benefit payable on behalf of such member
 22    shall be suspended and any contributions payable by such member under sections
 23    59-1331 through 59-1334, Idaho Code, shall again commence. The suspended bene-
 24    fit, as adjusted pursuant to section 59-1355, Idaho Code,  shall  resume  upon
 25    subsequent  retirement,  along with a separate allowance computed with respect
 26    to only that salary and service credited during the  period  of  reemployment.
 27    Any  death  benefit  that becomes payable under the suspended benefit shall be
 28    payable under section 59-1361(2), Idaho Code. Any death benefit  that  becomes
 29    payable  with respect to salary and service accrued during the period of reem-
 30    ployment shall be payable under section 59-1361(3), Idaho Code, if the  member
 31    dies during the period of reemployment.
 32        (3)  If  a  retired member, who is receiving a benefit that is not reduced
 33    under section 59-1346, Idaho Code, and who has been retired for more than  six
 34    (6)  months,  again  becomes  employed  as defined in this section and section
 35    59-1302(14)(A)(b), Idaho Code, as a result of being elected to a public office
 36    other than an office held prior to retirement, the retired member may elect to
 37    continue receiving benefits and not accrue additional service, in which  event
 38    no contributions shall be made by the member or employer during such reemploy-
 39    ment and any benefit payable on behalf of such member shall continue.
 40        (4)  It  is  the  responsibility of each employer to immediately report to
 41    the retirement board the employment of any retired member so that benefit pay-
 42    ments can be suspended as provided in this section. If an  employer  fails  to
 43    properly  report  the  employment  of  a  retired member and it results in the
  1    retirement board making benefit payments that should have been suspended,  the
  2    employer shall, in addition to paying delinquent employee and employer contri-
  3    butions  from the date of eligibility, also be responsible for repaying to the
  4    retirement board the benefit payments made to the retired member  that  should
  5    have been suspended, plus interest. The employer may then recoup such payments
  6    from the retired member.
  7        (5)  For  purposes of this section, "same employer" means the employer for
  8    which the retired member last worked prior to retirement.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 16458

PERSI Employers are required to accurately report, withhold and
transmit to PERSI all employee and employer contributions, under Idaho
code 59-1325. This bill amends section 59-1356, Idaho Code, to place
the burden of incorrect reporting on the employer who fails to
correctly report re-employed retirees. Under section 59-1356, Idaho
Code, a retiree s benefit is suspended when they become reemployed and
meet eligibility for PERSI with a PERSI employer. In addition, both
employee and employer contributions must commence and the retiree earns
a supplemental retirement benefit related to this service. At times
employers sometimes fail to report the retiree as an eligible employee
and sometimes months go by until PERSI discovers the failure, usually
during an audit. Because of this delay, the retiree is required to
repay the benefits that should have been suspended plus interest, and
pay the employee contributions that should have been withheld and paid
by the employer, creating a substantial burden on the retiree. This
amendment will put the burden of repayment on the employer who has the
statutory obligation to correctly report eligible employees and failed
to do so. It does not prevent the employer from seeking repayment from
the employee, but it assures that PERSI trust funds are quickly repaid
without a substantial burden on the employee.

                            FISCAL NOTE


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

STATEMENT OF PURPOSE/FISCAL NOTE                              S 1003