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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
]]]] 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
2 RELATING TO THE OPTIONAL RETIREMENT PROGRAM; AMENDING SECTION 33-107A, IDAHO
3 CODE, TO REVISE INSTITUTIONAL PROGRAM CONTRIBUTION PERCENTAGES, TO REVISE
4 A CALENDAR YEAR DATE AND TO MAKE A TECHNICAL CORRECTION.
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:
8 33-107A. BOARD MAY ESTABLISH AN OPTIONAL RETIREMENT PROGRAM. (1) The
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.
2
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
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.
Contacts:
Name: Ross Borden, Boise State University, 426 1203
Jane Buser, Boise State University, 426 1739
STATEMENT OF PURPOSE/FISCAL NOTES S 1183