2005 Idaho Code - 33-107A — BOARD MAY ESTABLISH AN OPTIONAL RETIREMENT PROGRAM

                                  TITLE  33
                                  EDUCATION
                                  CHAPTER 1
                           STATE BOARD OF EDUCATION
    33-107A.  BOARD MAY ESTABLISH AN OPTIONAL RETIREMENT PROGRAM. (1) The
state board of education may establish an optional retirement program under
which contracts providing retirement and death benefits may be purchased for
members of the teaching staff and officers of the university of Idaho, Idaho
state university, Boise state university, Lewis Clark state college and the
state board of education who are hired on or after July 1, 1993; provided,
however, that no such employee shall be eligible to participate in an optional
retirement program unless he would otherwise be eligible for membership in the
public employee retirement system of Idaho. The benefits to be provided for or
on behalf of participants in an optional retirement program shall be provided
through annuity contracts or certificates, fixed or variable in nature, or a
combination thereof, whose benefits are owned by the participants in the
program.
    (2)  The state board of education is hereby authorized to provide for the
administration of the optional retirement program and to perform or authorize
the performance of such functions as may be necessary for such purposes.  The
board shall designate the company or companies from which contracts are to be
purchased under the optional retirement program and shall approve the form and
contents of such contracts.  In making the designation and giving approval,
the board shall consider:
    (a)  The nature and extent of the rights and benefits to be provided by
    such contracts for participants and their beneficiaries;
    (b)  The relation of such rights and benefits to the amount of
    contributions to be made;
    (c)  The suitability of such rights and benefits to the needs of the
    participants and the interests of the institutions in the recruitment and
    retention of staff members; and
    (d)  The ability of the designated company to provide such suitable rights
    and benefits under such contracts.
    (3)  Elections to participate in an optional retirement program shall be
as follows:
    (a)  Eligible employees are:
         (i)   Those faculty and nonclassified staff initially appointed or
         hired between July 1, 1990 and June 30, 1993; and
         (ii)  Those teaching staff and officers initially appointed or hired
         on or after July 1, 1993.
    All eligible employees, except those who are vested members of the public
    employee retirement system of Idaho, shall participate in the optional
    retirement program.
    (b)  Vested members of the public employee retirement system of Idaho may
    make a one (1) time irrevocable election to remain a member of that
    retirement system. The election shall be made in writing, within sixty
    (60) days of the date of initial hire or appointment or the effective date
    of this act, whichever occurs later. It shall be filed  with the
    administrative officer of the employing institution.
    (c)  An election by an eligible employee of the optional retirement
    program shall be irrevocable and shall be accompanied by an appropriate
    application, where required, for issuance of a contract or contracts under
    the program.
    (d)  The accumulated contributions of employees who make the one (1) time
    irrevocable election or are required to participate in the optional
    retirement program may be transferred by the public employee retirement
    system of Idaho to such qualified plan, maintained under the optional
    retirement program, as designated in writing by the employee.
    (4)  (a) Each institution shall contribute on behalf of each participant
    in its optional retirement program the following:
         (i)   To the designated company or companies, an amount equal to
         seven and eighty-one hundredths percent (7.81%) of each participant's
         salary, reduced by any amount necessary, if any, to provide
         contributions to a total disability program provided either by the
         state or by a private insurance carrier licensed and authorized to
         provide such benefits or any combination thereof, but in no event
         less than five percent (5%) of each participant's salary; and
         (ii)  To the public employee retirement system, an amount equal to
         three and three one-hundredths percent (3.03%) of salaries of members
         who are participants in the optional retirement program. This amount
         shall be paid until July 1, 2015, and is in lieu of amortization
         payments and withdrawal contributions required pursuant to chapter
         13, title 59, Idaho Code.
    (b)  Each participant shall contribute an amount equal to six and
    ninety-seven hundredths percent (6.97%) of the participant's salary.
    Employee contributions may be made by employer pick-up pursuant to section
    59-1332, Idaho Code.
    (c)  Payment of contributions authorized or required under this subsection
    shall be made by the financial officer of the employing institution to the
    designated company or companies for the benefits of each participant.
    (5)  Any person participating in the optional retirement program shall be
ineligible for membership in the public employee retirement system of Idaho so
long as he remains continuously employed in any teaching staff position or as
an officer with any of the institutions under the jurisdiction of the state
board of education.
    (6)  A retirement, death or other benefit shall not be paid by the state
of Idaho or the state board of education for services credited under the
optional retirement program. Such benefits are payable to participants or
their beneficiaries only by the designated company or companies in accordance
with the terms of the contracts.