2008 Legislation
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SENATE BILL NO. 1368<br /> – State employee/retire/sick leave

SENATE BILL NO. 1368

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Bill Status



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

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN 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) of
 22        this  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 sick
 35        leave, the maximum unused sick leave which may be considered, shall be:
 36             (i)   During the first ten thousand four hundred  (10,400)  hours  of
 37             credited  state  service,  the maximum unused sick leave which may be
 38             considered shall be four hundred twenty (420) hours;
 39             (ii)  During the second ten thousand four hundred (10,400)  hours  of
 40             credited  state  service,  the maximum unused sick leave which may be
 41             considered shall be four hundred eighty (480) hours;
 42             (iii) During the third ten thousand four hundred  (10,400)  hours  of
 43             credited  state  service,  the maximum unused sick leave which may be
 44             considered shall be five hundred forty (540) hours; and
 45             (iv)  Thereafter, the maximum unused sick leave which may be  consid-
 46             ered 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 / Fiscal Impact



                       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