2005 Idaho Code - 33-107B — BOARD MAY ESTABLISH AN OPTIONAL RETIREMENT PROGRAM FOR COMMUNITY COLLEGES AND POSTSECONDARY PROFESSIONAL-TECHNICAL EDUCATION INSTITUTIONS

                                  TITLE  33
                                  EDUCATION
                                  CHAPTER 1
                           STATE BOARD OF EDUCATION
    33-107B.  BOARD MAY ESTABLISH AN OPTIONAL RETIREMENT PROGRAM FOR COMMUNITY
COLLEGES AND POSTSECONDARY PROFESSIONAL-TECHNICAL EDUCATION INSTITUTIONS. (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 community colleges and
postsecondary professional-technical education institutions, including north
Idaho college, college of southern Idaho and eastern Idaho technical college,
hired on or after July 1, 1997; 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 the teaching staff and officers initially
    appointed or hired on or after the effective date of this chapter. 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)  Eligible employees who are vested members of the public employee
    retirement system of Idaho may make a one (1) time irrevocable election to
    transfer to the optional retirement program. The election shall be made in
    writing and within sixty (60) days of the date of initial hire or
    appointment, or one hundred fifty (150) days after the effective date of
    this chapter, whichever occurs later. The election shall be filed with the
    administrative officer of the employing institution.  The election shall
    be effective not later than the first day of the second pay period
    following the date of the election.
    (c)  Teaching staff and officers employed by the institution the day
    before the effective date of this chapter may make a one (1) time
    irrevocable election to participate  in the optional retirement program.
    The election shall be made in writing and within one hundred fifty (150)
    days after the effective date of this chapter. The election shall be filed
    with the administrative officer of the employing institution. The election
    shall be effective not later than the first day of the second pay period
    following the date of the election.
    (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.
    (e)  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.
    (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 eighty-three hundredths percent (3.83%) of salaries of
         members who are participants in the optional retirement program. This
         amount shall be paid until July 1, 2011 and is in lieu of
         amortization payments and withdrawal contributions required pursuant
         to chapter 13, title 59, Idaho Code.
    (b)  For the purposes of section 59-1322, Idaho Code, the term "projected
    salaries" shall include the sum of the annual salaries of all participants
    in the optional retirement program established pursuant to this section.
    (c)  Each participant shall contribute an amount equal to six and
    ninety-seven hundredths percent (6.97%). Employee contributions may be
    made by employer pick-up pursuant to section 59-1332, Idaho Code.
    (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.