2007 Legislation
Print Friendly

SENATE BILL NO. 1183 – College/univ, optionl retirmnt prog


View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status

S1183................................................by JUDICIARY AND RULES
RETIREMENT - Amends existing law relating to the optional retirement
program to revise institutional program contribution percentages; and to
revise a calendar year date.

03/01    Senate intro - 1st rdg - to printing
03/02    Rpt prt - to Educ
03/06    Rpt out - Ref'd to Com/HuRes
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
    Rls Susp - PASSED - 34-1-0
      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, Stennett, Werk
      NAYS -- Stegner
      Absent and excused -- None
    Floor Sponsor - Andreason
    Title apvd - to House
03/09    House intro - 1st rdg - to Com/HuRes
03/16    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 59-10-1
      AYES -- Anderson, Andrus, Bedke, Bell, Bilbao, Black, Block, Bock,
      Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Collins,
      Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Henbest, Henderson,
      Jaquet, Killen, King, Kren, LeFavour, Luker(Luker), Marriott,
      Mathews, McGeachin, 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, Wills, Wood(27), Mr. Speaker
      NAYS -- Barrett, Bayer, Clark, Harwood, Labrador, Lake, Loertscher,
      Mortimer, Vander Woude, Wood(35)
      Absent and excused -- Moyle
    Floor Sponsor - Trail
    Title apvd - to Senate
03/23    To enrol
03/26    Rpt enrol - Pres signed - Sp signed - To Governor
03/30    Governor signed
         Session Law Chapter 318
         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. 1183
                              BY JUDICIARY AND RULES COMMITTEE
  1                                        AN ACT
  5    Be It Enacted by the Legislature of the State of Idaho:
  6        SECTION 1.  That Section 33-107A, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
  9    state board of education may establish an optional  retirement  program  under
 10    which  contracts  providing retirement and death benefits may be purchased for
 11    members of the teaching staff and officers of the university of  Idaho,  Idaho
 12    state  university,  Boise  state university, Lewis-Clark state college and the
 13    state board of education who are hired on or after  July  1,  1993;  provided,
 14    however, that no such employee shall be eligible to participate in an optional
 15    retirement program unless he would otherwise be eligible for membership in the
 16    public employee retirement system of Idaho. The benefits to be provided for or
 17    on  behalf of participants in an optional retirement program shall be provided
 18    through annuity contracts or certificates, fixed or variable in nature,  or  a
 19    combination  thereof, whose benefits are owned by the participants in the pro-
 20    gram.
 21        (2)  The state board of education is hereby authorized to provide for  the
 22    administration  of the optional retirement program and to perform or authorize
 23    the performance of such functions as may be necessary for such purposes.   The
 24    board  shall designate the company or companies from which contracts are to be
 25    purchased under the optional retirement program and shall approve the form and
 26    contents of such contracts.  In making the designation  and  giving  approval,
 27    the board shall consider:
 28        (a)  The  nature  and  extent of the rights and benefits to be provided by
 29        such contracts for participants and their beneficiaries;
 30        (b)  The relation of such rights and benefits to the amount  of  contribu-
 31        tions to be made;
 32        (c)  The  suitability of such rights and benefits to the needs of the par-
 33        ticipants and the interests of the institutions  in  the  recruitment  and
 34        retention of staff members; and
 35        (d)  The ability of the designated company to provide such suitable rights
 36        and benefits under such contracts.
 37        (3)  Elections  to  participate in an optional retirement program shall be
 38    as follows:
 39        (a)  Eligible employees are:
 40             (i)   Those faculty and nonclassified staff  initially  appointed  or
 41             hired between July 1, 1990 and June 30, 1993; and
 42             (ii)  Those  teaching staff and officers initially appointed or hired
 43             on or after July 1, 1993.
  1        All eligible employees, except those who are vested members of the  public
  2        employee  retirement  system  of  Idaho, shall participate in the optional
  3        retirement program.
  4        (b)  Vested members of the public employee retirement system of Idaho  may
  5        make  a  one  (1)  time  irrevocable  election  to remain a member of that
  6        retirement system. The election shall be made  in  writing,  within  sixty
  7        (60) days of the date of initial hire or appointment or the effective date
  8        of  this  act, whichever occurs later. It shall be filed with the adminis-
  9        trative officer of the employing institution.
 10        (c)  An election by an eligible employee of the optional  retirement  pro-
 11        gram    shall  be  irrevocable  and shall be accompanied by an appropriate
 12        application, where required, for issuance of a contract or contracts under
 13        the program.
 14        (d)  The accumulated contributions of employees who make the one (1)  time
 15        irrevocable  election  or  are  required  to  participate  in the optional
 16        retirement program may be transferred by the  public  employee  retirement
 17        system  of  Idaho  to  such  qualified plan, maintained under the optional
 18        retirement program, as designated in writing by the employee.
 19        (4)  (a) Each institution shall contribute on behalf of  each  participant
 20        in its optional retirement program the following:
 21             (i)   To  the  designated  company  or  companies, an amount equal to
 22             seven and eighty-one hundredths percent (7.81%) nine and  thirty-five
 23             hundredths  percent  (9.35%) of each participant's salary, reduced by
 24             any amount necessary, if any, to provide  contributions  to  a  total
 25             disability  program  provided  either  by  the  state or by a private
 26             insurance carrier licensed and authorized to provide such benefits or
 27             any combination thereof, but in no event less than five percent  (5%)
 28             of each participant's salary; and
 29             (ii)  To  the  public  employee retirement system, an amount equal to
 30             three and three one-hundredths percent  (3.03%)  one  and  forty-nine
 31             hundredths  percent  (1.49%)  of salaries of members who are partici-
 32             pants in the optional retirement program. This amount shall  be  paid
 33             until  July  1,  20125,  and  is in lieu of amortization payments and
 34             withdrawal contributions required pursuant to chapter 13,  title  59,
 35             Idaho Code.
 36        (b)  Each  participant shall contribute an amount equal to six and ninety-
 37        seven hundredths percent (6.97%) of  the  participant's  salary.  Employee
 38        contributions may be made by employer pick-up pursuant to section 59-1332,
 39        Idaho Code.
 40        (c)  Payment of contributions authorized or required under this subsection
 41        shall be made by the financial officer of the employing institution to the
 42        designated company or companies for the benefits of each participant.
 43        (5)  Any  person participating in the optional retirement program shall be
 44    ineligible for membership in the public employee retirement system of Idaho so
 45    long as he remains continuously employed in any teaching staff position or  as
 46    an  officer  with  any of the institutions under the jurisdiction of the state
 47    board of education.
 48        (6)  A retirement, death or other benefit shall not be paid by  the  state
 49    of  Idaho  or  the  state  board  of education for services credited under the
 50    optional retirement program. Such benefits  are  payable  to  participants  or
 51    their  beneficiaries only by the designated company or companies in accordance
 52    with the terms of the contracts.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE
                            RS 16948
The legislation adjusts the contribution rates for the
university Optional Retirement Program. Under the existing law
universities contribute 7.81% of salary to each participant in the
retirement program for university professors and professional
administrative staff. An additional 3.03% contribution is made to
the Public Employee Retirement System as a result of agreements
made when the ORP was created. The proposal in this legislation is
to reduce the 3.03% contribution to PERSI to 1.49% and extend the
time for the payment of the contribution to 2025 then add the
1.54% to the contribution to the employees retirement accounts.
The effect of the legislation is to increase the contribution to
the employees to 9.35% of salary while extending the time for
payments to be made to PERSI at a reduced rate.

                           FISCAL NOTE
There will be no fiscal impact on state or local funds. The
legislation contemplates a shifting of payment amounts within the
existing system but there will be no new revenue required. The
actuarial effect on PERSI is minimal because of the relatively
small amount of the contribution to PERSI.

Name:  Ross Borden, Boise State University, 426 1203
       Jane Buser, Boise State University, 426 1739

STATEMENT OF PURPOSE/FISCAL NOTES                         S 1183