2005 Idaho Code - 59-1302 — DEFINITIONS

                                  TITLE  59
                          PUBLIC OFFICERS IN GENERAL
                                  CHAPTER 13
                      PUBLIC EMPLOYEES RETIREMENT SYSTEM
    59-1302.  DEFINITIONS. (1) As used in this chapter, each of the terms
defined in this section shall have the meaning given in this section unless a
different meaning is clearly required by the context.
    (2)  "Active member" means any employee who is not establishing the right
to receive benefits through his or her employer's participation in any other
retirement system established for Idaho public employees, if such
participation is mandated by applicable Idaho statutes other than this
chapter. In no case will an employee be entitled to any benefit under this
chapter for public service if such employee is establishing retirement benefit
entitlements by other Idaho statutes or federal statutes other than military
service or social security for that same service.
    (3)  "Accumulated contributions" means the sum of amounts contributed by a
member of the system, together with regular interest credit thereon.
    (4)  "Actuarial equivalent" means a benefit equal in value to another
benefit, when computed upon the basis of the actuarial tables in use by the
system.
    (5)  "Actuarial tables" means such tables as shall have been adopted by
the board in accordance with recommendations of the actuary.
    (5A) "Alternate payee" means a spouse or former spouse of a member who is
recognized by an approved domestic retirement order as having a right to all
or a portion of the accrued benefits in the retirement system with respect to
such member.
    (5B) "Approved domestic retirement order" means a domestic retirement
order which creates or recognizes the existence of an alternate payee's right
or assigns to an alternate payee the right to all or a portion of the accrued
benefits of a member under the retirement system, which directs the system to
establish a segregated account or disburse benefits to an alternate payee, and
which the executive director of the retirement system has determined meets the
requirements of sections 59-1319 and 59-1320, Idaho Code.
    (5C) "Average monthly salary" means the member's average salary during the
base period as calculated pursuant to rules adopted by the retirement board.
    (5D) (a) "Base period" means the period of fifty-four (54) consecutive
    calendar months during which the member earned:
         (i)   The highest average salary; and
         (ii)  Membership service of at least one-half (1/2) the number of
         months in the period, excluding months of service attributable to:
              A.  Military service;
              B.  Service qualifying as minimum benefit pursuant to section
              59-1342(5), Idaho Code; and
              C.  Worker's compensation income benefits.
    (b)  Effective October 1, 1993, the consecutive calendar months shall be
    forty-eight (48). Effective October 1, 1994, the consecutive calendar
    months shall be forty-two (42).
    (c)  Entitlement to a base period shall not vest until the effective date
    of that base period. The retirement benefits shall be calculated on the
    amounts, terms and conditions in effect at the date of the final
    contribution by the member.
    (d)  If no base period exists for a member, the member's average monthly
    salary shall be determined by the board, using standards not inconsistent
    with those established in this subsection.
    (e)  To assure equitable treatment for all members, salary increments
    inconsistent with usual compensation patterns may be disallowed by the
    board in determining average monthly salary and base period.
    (6)  "Beneficiary" means the person who is nominated by the written
designation of a member, duly executed and filed with the board, to receive
the death benefit.
    (7)  "Calendar year" means twelve (12) calendar months commencing on the
first day of January.
    (7A) "Contingent annuitant" means the person designated by a member under
certain retirement options to receive benefit payments upon the death of the
member. The person so designated must be born and living on the effective date
of retirement.
    (8)  "Credited service" means the aggregate of membership service, prior
service and disabled service.
    (9)  "Date of establishment" means July 1, 1965, or a later date
established by the board or statute.
    (10) "Death benefit" means the amount, if any, payable upon the death of a
member.
    (11) "Disability retirement allowance" means the periodic payment becoming
payable upon an active member's ceasing to be an employee while eligible for
disability retirement.
    (12) "Disabled" means:
    (a)  That the member is prevented from engaging in any occupation or
    employment for remuneration or profit as a result of bodily injury or
    disease, either occupational or nonoccupational in cause, but excluding
    disabilities resulting from service in the armed forces of any country, or
    from an intentionally self-inflicted injury; and
    (b)  That the member will likely remain so disabled permanently and
    continuously during the remainder of the member's life.
It is not necessary that a person be absolutely helpless or entirely unable to
do anything worthy of compensation to be considered disabled. If the person is
so disabled that substantially all the avenues of employment are reasonably
closed to the person, that condition is within the meaning of "disabled." In
evaluating whether a person is disabled, medical factors and nonmedical
factors including, but not limited to, education, economic and social
environment, training and usable skills may be considered.
    Refusal to submit to a medical examination ordered by the board before the
commencement of a disability retirement allowance or at any reasonable time
thereafter shall constitute proof that the member is not disabled. The board
shall be empowered to select for such medical examination one (1) or more
physicians or surgeons who are licensed to practice medicine and perform
surgery. The fees and expenses of such examination shall be paid from the
administration account of the fund. No member shall be required to undergo
such examination more often than once each year after he has received a
disability retirement allowance continuously for two (2) years.
    (12A) "Disabled service" means the total number of months elapsing from
the first day of the month next succeeding the final contribution of a member
prior to receiving a disability retirement allowance to the first day of the
month following the date of termination of such disability retirement
allowance. During such period, the member shall remain classified in the
membership category held during the month of final contribution. The total
number of months of disabled service credited for a person first becoming
disabled after the effective date of this chapter shall not exceed the excess,
if any, of three hundred sixty (360) over the total number of months of prior
service and membership service.
    (12B) "Domestic retirement order" means any judgment, decree, or order,
including approval of a property settlement agreement which relates to the
provision of marital property rights to a spouse or former spouse of a member,
and is made pursuant to a domestic relations law, including the community
property law of the state of Idaho or of another state.
    (13) "Early retirement allowance" means the periodic payment becoming
payable upon an active member's ceasing to be an employee while eligible for
early retirement.
    (14) (A) "Employee" means:
    (a)  Any person who normally works twenty (20) hours or more per week for
    an employer or a school teacher who works half-time or more for an
    employer and who receives salary for services rendered for such employer;
    or
    (b)  Elected officials or appointed officials of an employer who receive a
    salary; or
    (c)  A person who is separated from service with less than five (5)
    consecutive months of employment and who is reemployed or reinstated by
    the same employer within thirty (30) days.
    (B)  "Employee" does not include employment as:
    (a)  A person rendering service to an employer in the capacity of an
    independent business, trade or profession; or
    (b)  A person whose employment with any employer does not total five (5)
    consecutive months; or
    (c)  A person provided sheltered employment or made-work by a public
    employer in an employment or industries program maintained for the benefit
    of such person; or
    (d)  An inmate of a state institution, whether or not receiving
    compensation for services performed for the institution; or
    (e)  A student enrolled in an undergraduate, graduate, or
    professional-technical program at and employed by a state college,
    university, community college or professional-technical center when such
    employment is predicated on student status; or
    (f)  A person making contributions to the United States civil service
    commission under the United States Civil Service System Retirement Act
    except that a person who receives separate remuneration for work currently
    performed for an employer and the United States government may elect to be
    a member of the retirement system in accordance with rules of the board;
    or
    (g)  A person occupying a position that does not exceed eight (8)
    consecutive months in a calendar year with a city or county when the city
    or county has certified, in writing to the system, the position is (i)
    seasonal or casual; and (ii) affected by weather and the growing season,
    including parks and golf course positions; or
    (h)  A person in a position that (i) is eligible for participation in an
    optional retirement program established under section 33-107A or 33-107B,
    Idaho Code, or (ii) would be eligible for participation in an optional
    retirement program established under section 33-107A or 33-107B, Idaho
    Code, if the person was not working less than half-time or less than
    twenty (20) hours per week.
    (15) "Employer" means the state of Idaho, or any political subdivision or
governmental entity, provided such subdivision or entity has elected to come
into the system. Governmental entity means any organization composed of units
of government of Idaho or organizations funded only by government or employee
contributions or organizations who discharge governmental responsibilities or
proprietary responsibilities that would otherwise be performed by government.
All governmental entities are deemed to be political subdivisions for the
purpose of this chapter.
    (15A) "Final contribution" means the final contribution made by a member
pursuant to sections 59-1331 through 59-1334, Idaho Code.
    (16) "Firefighter" means an employee, including paid firefighters hired on
or after October 1, 1980, whose primary occupation is that of preventing and
extinguishing fires as determined by the rules of the board.
    (17) "Fiscal year" means the period beginning on July 1 in any year and
ending on June 30 of the next succeeding year.
    (18) "Fund" means the public employee retirement fund established by this
chapter.
    (19) "Funding agent" means any bank or banks, trust company or trust
companies, legal reserve life insurance company or legal reserve life
insurance companies, or combinations thereof, any thrift institution or credit
union or any  investment management firm or individual investment manager
selected by the board to hold and/or invest the employers' and members'
contributions and pay certain benefits granted under this chapter.
    (20) "Inactive member" means a former active member who is not an employee
and is not receiving any form of retirement allowance, but for whom a
separation benefit has not become payable.
    (20A) "Lifetime annuity" means periodic monthly payments of income by the
retirement system to an alternate payee.
    (20B) "Lump sum distribution" means a payment by the retirement system of
the entire balance in the alternate payee's segregated account, together with
regular interest credited thereon.
    (21) "Member" means an active member, inactive member or a retired member.
    (22) "Membership service" means military service which occurs after the
commencement of contributions payable under sections 59-1331 through 59-1334,
Idaho Code, and service with respect to which contributions are payable under
sections 59-1331 through 59-1334, Idaho Code, which, except for benefit
calculations described in sections 59-1342 and 59-1353, Idaho Code, includes
service transferred to a segregated account under an approved domestic
retirement order.
    (23) "Military service" means any period of active duty service in the
armed forces of the United States including the national guard and reserves,
under the provisions of title 10, title 32, and title 37, United States code,
which commences less than ninety (90) days after the person ceases to be an
employee and ends less than ninety (90) days before the person again becomes
an employee. Provided, if a member fails to again become an employee due to
being killed while in active duty service, the member shall be entitled to
military service through the date of death. In no event shall military service
include:
    (a)  Any period ended by dishonorable discharge or during which
    termination of such service is available but not accepted; or
    (b)  Any active duty service in excess of five (5) years if at the
    convenience of the United States government, or in excess of four (4)
    years if not at the convenience of the United States government.
    (24) (a) "Police officer" for retirement purposes shall be as defined in
    section 59-1303, Idaho Code.
    (b)  "POST" means the Idaho peace officer standards and training council
    established in chapter 51, title 19, Idaho Code.
    (25) "Prior service" means any period prior to July 1, 1965, of military
service or of employment for the state of Idaho or any political subdivision
or other employer of each employee who is an active member or in military
service or on leave of absence on the date of establishment, provided,
however, an employee who was not an active member or in military service or on
leave of absence on the date of establishment shall receive credit for the
member's service prior to July 1, 1965, on the basis of recognizing two (2)
months of such service for each month of membership service. For the purpose
of computing such service, no deduction shall be made for any continuous
period of absence from service or military service of six (6) months or less.
    (26) "Regular interest" means interest at the rate set from time to time
by the board.
    (27) "Retired member" means a former active member receiving a retirement
allowance.
    (28) "Retirement" means the acceptance of a retirement allowance under
this chapter upon termination of employment.
    (29) "Retirement board" or "board" means the board provided for in
sections 59-1304 and 59-1305, Idaho Code, to administer the retirement system.
    (30) "Retirement system" or "system" means the public employee retirement
system of Idaho.
    (31) (A) "Salary" means:
    (a)  The total salary or wages paid to a person who meets the definition
    of employee by an employer for  personal services performed and reported
    by the employer for income tax purposes, including the cash value of all
    remuneration in any medium other than cash.
    (b)  The total amount of any voluntary reduction in salary agreed to by
    the member and employer where the reduction is used as an alternative form
    of remuneration to the member.
    (B)  Salary in excess of the compensation limitations set forth in section
401(a)(17) of the Internal Revenue Code shall be disregarded for any person
who becomes a member of the system on or after July 1, 1996. The system had no
limitations on compensation in effect on July 1, 1993. The compensation
limitations set forth in section 401(a)(17) of the Internal Revenue Code shall
not apply for an "eligible employee." For purposes of this subsection,
"eligible employee" is an individual who was a member of the system before
July 1, 1996.
    (C)  "Salary" does not include:
    (a)  Contributions by employers to employee held medical savings accounts,
    as those accounts are defined in section 63-3022K, Idaho Code.
    (b)  Lump sum payments inconsistent with usual compensation patterns made
    by the employer to the employee only upon termination from service
    including, but not limited to, vacation payoffs, sick leave payoffs, early
    retirement incentive payments and bonuses.
    (31A) "Segregated account" means the account established by the retirement
system for the alternate payee of a member who is not a retired member. It
shall include the months of credited service and accumulated contributions
transferred from the member's account.
    (32) "Separation benefit" means the amount, if any, payable upon or
subsequent to separation from service.
    (33) "Service" means being shown on an employer's payroll as an employee
receiving a salary. For each calendar month, service is credited only when a
member is an employee as defined in subsection (14)(A) of this section and is
employed for fifteen (15) days or more during the calendar month. Employment
of fourteen (14) days or less during any calendar month shall not be credited.
No more than one (1) month of service shall be credited for all service in any
month.
    (34) "Service retirement allowance" means the periodic payment becoming
payable upon an active member's ceasing to be an employee while eligible for
service retirement.
    (35) "State" means the state of Idaho.
    (36) "Vested member" means an active or inactive member who has at least
five (5) years of credited service, except that a member, who at the time of
his separation from service:
    (a)  Held an office to which he had been elected by popular vote or having
    a term fixed by the constitution, statute or charter or was appointed to
    such office by an elected official; or
    (b)  Was the head or director of a department, division, agency, statutory
    section or bureau of the state; or
    (c)  Was employed on or after July 1, 1965, by an elected official of the
    state of Idaho and occupied a position exempt from the provisions of
    chapter 53, title 67, Idaho Code; and
    (d)  Was not covered by a merit system for employees of the state of
    Idaho,
is vested without regard to the length of credited service.
    (37) The masculine pronoun, wherever used, shall include the feminine
pronoun.