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S1368.......................................by COMMERCE AND HUMAN RESOURCES STATE EMPLOYEES - RETIREMENT - Amends existing law relating to the state personnel system to remove the limit on unused sick leave that is transferred to an employee's retirement account upon separation from state employment by retirement. 02/01 Senate intro - 1st rdg - to printing 02/04 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1368 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE STATE PERSONNEL SYSTEM; AMENDING SECTION 33-2109A, IDAHO CODE, 3 TO PROVIDE A CORRECT CODE REFERENCE; AMENDING SECTION 67-5333, IDAHO CODE, 4 TO REMOVE THE LIMIT ON UNUSED SICK LEAVE THAT IS TRANSFERRED TO AN 5 EMPLOYEE'S RETIREMENT ACCOUNT UPON SEPARATION FROM STATE EMPLOYMENT BY 6 RETIREMENT; PROVIDING AN EFFECTIVE DATE AND PROVIDING APPLICABILITY. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 33-2109A, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 33-2109A. USE OF UNUSED SICK LEAVE. Upon separation from employment with 11 the community college district by retirement, in accordance with chapter 13, 12 title 59, Idaho Code, or with chapter 1, title 33, Idaho Code, an employee 13 shall be accorded credit for unused sick leave as provided in section 67-5333, 14 Idaho Code. Each community college district shall contribute to the sick leave 15 account for the purposes of this section, as provided in subsection (2)(cb) of 16 section 67-5333, Idaho Code. 17 SECTION 2. That Section 67-5333, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 67-5333. SICK LEAVE. (1) Sick leave shall be computed as follows: 20 (a) The rate per hour at which sick leave shall accrue to classified 21 officers and employees earning credited state service shall be at the rate 22 represented by the proportion 96/2080. Sick leave shall accrue without 23 limit, and shall be transferable from department to department. 24 (b) Sick leave shall not accrue to any officer or employee on any kind of 25 leave of absence without pay, suspension without pay or layoff. Sick leave 26 shall accrue while an officer or employee is on approved leave with pay, 27 on approved vacation leave, on approved military leave with pay, and on 28 approved sick leave, but not when compensatory time or earned administra- 29 tive leave is taken. 30 (c) All accrued sick leave shall be forfeited at the time of separation 31 from state service and no officer or employee shall be reimbursed for 32 accrued sick leave at the time of separation, except as provided in sub- 33 section (2) of this section. If such officer or employee returns to cred- 34 ited state service within three (3) years of such separation, all sick 35 leave credits accrued at the time of separation shall be reinstated, 36 except to the extent that unused sick leave was utilized for the purposes 37 specified in subsection (2) of this section. 38 (d) Sick leave shall be taken on a workday basis. Regularly scheduled 39 days off and officially designated holidays falling within a period of 40 sick leave shall not be counted against sick leave. Sick leave shall not 41 be taken in advance of being earned. 2 1 (e) In cases where absences for sick leave exceed three (3) consecutive 2 working days, the appointing authority may require verification by a phy- 3 sician or other authorized practitioner. 4 (f) If an absence for illness or injury extends beyond the sick leave 5 accrued to the credit of the officer or employee, the officer or employee 6 may be granted leave without pay. 7 (g) The administrator shall prescribe additional requirements for sick 8 leave for classified officers and employees on a part-time or irregular 9 schedule, for maintaining sick leave records, for funeral leave, and such 10 other applicable purposes as necessary. 11 (2) Unused sick leave may be used as follows: 12 (a) Upon separation from state employment by retirement in accordance 13 with chapter 13, title 59 or chapter 1, title 33, Idaho Code, an 14 employee's unused sick leave shall be determined based on accumulated sick 15 leave earned subsequent to July 1, 1976, and shall be reported by the 16 employer to the public employee retirement system. Upon separation from 17 state employment by retirement in accordance with chapter 20, title 1, 18 Idaho Code, an employee's unused sick leave shall be determined based on 19 accumulated sick leave earned subsequent to July 1, 2000, and shall be 20 reported by the employer to the public employee retirement system. A sum 21 equal to one-half (1/2), or the maximum amount allowed by paragraph (b) of22this subsection (2), whichever is the lesser,of the monetary value of 23 such unused sick leave, calculated at the rate of pay for such employee at 24 the time of retirement, as determined by the retirement board, shall be 25 transferred from the sick leave account provided by paragraph (c) of this 26 subsection (2) and shall be credited to such employee's retirement 27 account. Such sums shall be used by the Idaho public employee retirement 28 board to pay premiums, subject to applicable federal tax limits, for such 29 group health, dental, vision, long-term care, prescription drug and life 30 insurance programs as may be maintained by the state, to the extent of the 31 funds credited to the employee's account pursuant to this section. Upon an 32 employee's death, any unexpended sums remaining in the account shall 33 revert to the sick leave account. 34 (b)For the purposes of determining the monetary value of unused sick35leave, the maximum unused sick leave which may be considered, shall be:36(i) During the first ten thousand four hundred (10,400) hours of37credited state service, the maximum unused sick leave which may be38considered shall be four hundred twenty (420) hours;39(ii) During the second ten thousand four hundred (10,400) hours of40credited state service, the maximum unused sick leave which may be41considered shall be four hundred eighty (480) hours;42(iii) During the third ten thousand four hundred (10,400) hours of43credited state service, the maximum unused sick leave which may be44considered shall be five hundred forty (540) hours; and45(iv) Thereafter, the maximum unused sick leave which may be consid-46ered shall be six hundred (600) hours.47(c)Each employer in state government shall contribute to a sick leave 48 account maintained by the public employee retirement system in trust 49 exclusively for the purpose of the provisions of this section. The retire- 50 ment board shall serve as trustee of the trust and shall be indemnified to 51 the same extent as provided in section 59-1305, Idaho Code. Assets in the 52 trust shall not be assignable or subject to execution, garnishment or 53 attachment or to the operation of any bankruptcy or insolvency law. The 54 rate of such contribution each pay period shall consist of a percentage of 55 employees' salaries as determined by the board, and such rate shall remain 3 1 in effect until next determined by the board. Any excess balance in the 2 sick leave account shall be invested, and the earnings therefrom shall 3 accrue to the sick leave account except the amount required by the board 4 to defray administrative expenses. Assets of the trust may be commingled 5 for investment purposes with other assets managed by the retirement board. 6 All moneys payable to the sick leave account are hereby perpetually appro- 7 priated to the board, and shall not be included in its departmental bud- 8 get. The state insurance fund and public health districts shall be consid- 9 ered employers in state government for purposes of participation under 10 this section. 11 SECTION 3. This act shall be in full force and effect on and after July 12 1, 2008, and shall apply to all state employees who separate from state 13 employment by retirement on or after July 1, 2008. The provisions of Section 14 67-5333, Idaho Code, in effect on June 30, 2008, shall apply to all state 15 employees who separate from state employment before July 1, 2008.
STATEMENT OF PURPOSE
RS 17628
This legislation would remove the formula limiting the unused
sick leave that is made available to state employees for medical
insurance payments. Currently state and school employees are
covered by a program to permit tax free payment of medical
insurance premium up to a maximum of one-half the value of sick
leave at time of retirement. The state program provides an
additional limit of 600 hours on the account accruals. This
legislation would remove the 600 hour limit for state employees
but the one-half the value of sick leave would remain in place.
FISCAL IMPACT
Employer contributions would remain at 0.65% of salary however
the amortization period would be extended 12.1 years. to pay off
the $14.4 million addition to the total liability.
Contact
Name: Sen. Tim Corder
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE S 1368