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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.
Speaker
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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1003
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 SET FORTH CONTRIBUTION AND PAYMENT PROVISIONS TO APPLY WHEN
4 AN EMPLOYER FAILS TO PROPERLY REPORT THE EMPLOYMENT OF A RETIRED MEMBER
5 AND BENEFIT PAYMENTS HAVE BEEN MADE.
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
2
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
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
None.
CONTACT
Name: Alan Winkle
Agency: PERSI
Phone: 334-2455
STATEMENT OF PURPOSE/FISCAL NOTE S 1003