2005 Idaho Code - 59-1342 — COMPUTATION OF SERVICE RETIREMENT ALLOWANCES -- MINIMUM BENEFITS

                                  TITLE  59
                          PUBLIC OFFICERS IN GENERAL
                                  CHAPTER 13
                      PUBLIC EMPLOYEES RETIREMENT SYSTEM
    59-1342.  COMPUTATION OF SERVICE RETIREMENT ALLOWANCES -- MINIMUM
BENEFITS. (1) The annual amount of accrued retirement allowance for each month
of credited service for which a member was not classified as a police member
or firefighter shall equal one and two-thirds percent (1 2/3%) of the member's
average monthly salary. Effective October 1, 1992, the annual amount of
accrued retirement allowance for all service for which a member was not
classified as a police member or firefighter shall equal one and seventy-five
hundredths percent (1.75%) of the member's average monthly salary; effective
October 1, 1993, the annual amount of accrued retirement allowance shall equal
one and eight hundred thirty-three thousandths percent (1.833%) of the
member's average monthly salary; effective October 1, 1994, the annual amount
of accrued retirement allowance shall equal one and nine hundred seventeen
thousandths percent (1.917%); and effective June 30, 2000, the annual amount
of accrued retirement allowance shall equal two percent (2%) of the member's
average monthly salary. Entitlement to an annual amount of accrued retirement
allowance shall not vest until the effective date of that annual amount of
accrued retirement allowance. The retirement benefits shall be calculated on
the amounts, terms and conditions in effect on the date of the final
contribution by the member. The annual amount of initial service retirement
allowance of such a member shall equal (a) or (b), whichever is greater:
    (a)  the member's accrued retirement allowance; or
    (b)  five dollars ($5.00) multiplied by the number of months of credited
    service and by the bridging factor, as provided in section 59-1355, Idaho
    Code, between July 1, 1974 and the first of the month following the
    member's final contribution.
    (2)  The annual amount of accrued retirement allowance for each month of
credited service for which a member was classified as a police member or
firefighter shall equal two percent (2%) of the member's average monthly
salary. Effective October 1, 1992, the annual amount of accrued retirement
allowance for all service for which a member was classified as a police member
or firefighter shall equal two and seventy-five thousandths percent (2.075%)
of the member's average monthly salary; effective October 1, 1993, the annual
amount of accrued retirement allowance shall equal two and fifteen hundredths
percent (2.15%) of the member's average monthly salary; effective October 1,
1994, the annual amount of accrued retirement allowance shall equal two and
two hundred twenty-five thousandths percent (2.225%); and effective June 30,
2000, the annual amount of accrued retirement allowance shall equal two and
three-tenths percent (2.3%) of the member's average monthly salary.
Entitlement to an annual amount of accrued retirement allowance shall not vest
until the effective date of that annual amount of accrued retirement
allowance.  The retirement benefits shall be calculated on the amounts, terms
and conditions in effect on the date of the final contribution by the member.
The annual amount of initial service retirement allowance of such a member
shall equal (a) or (b), whichever is greater:
    (a)  the member's accrued retirement allowance; or
    (b)  six dollars ($6.00) multiplied by the number of months of credited
    service and by the bridging factor, as provided in section 59-1355, Idaho
    Code, between July 1, 1974 and the first of the month following the
    member's final contribution.
    (3)  Provisions of this section shall be applicable to members and
contingent annuitants of the retirement system and to members, annuitants and
beneficiaries of the teachers and city systems. In any recomputation of an
initial retirement allowance for a person not making a final contribution
subsequent to 1974, the bridging factor referred to in subsections (1) and (2)
shall be 1.000. Any recomputed retirement allowance shall be payable only
prospectively from July 1, 1974.
    (4)  Benefits payable to a person who became a member prior to July 1,
1974, or to the member's beneficiaries shall never be less than they would
have received under this chapter as in effect on June 30, 1974; provided,
however, that the member shall have accrued the amount of accumulated
contributions required thereby prior to payment of an initial retirement
allowance.
    (5)  If the majority of a member's credited service is as an elected
official or as an appointed official, except as a member of the Idaho
legislature, and that official was normally in the administrative offices of
the employer less than twenty (20) hours per week during the term of office,
or was normally not required to be present at any particular work station for
the employer twenty (20) hours per week or more during the term of office, and
that member's initial service retirement allowance for service credited only
during that period would be computed under subsection (1)(b) and/or (2)(b) of
this section, without consideration of any other credited service, then it
will be so computed for that period of service. If that member has credited
service from any other employment, the accrued service retirement allowance
for the credited service from such other employment shall be computed from an
average monthly salary for salary received during the period of such other
employment. The initial service retirement allowance of members of the Idaho
legislature will be computed under subsection (1) and/or (2) of this section,
on the basis of their total months of credited service.
    (6)  In no case, however, will a member's initial service retirement
benefit be equal to more than the member's accrued benefit as of May 1, 1990,
or one hundred percent (100%) of the member's average compensation for the
three (3) consecutive years of employment which produce the greatest aggregate
compensation, whichever is greater. If the benefit is calculated to exceed one
hundred percent (100%) of the member's average compensation, the member shall
be eligible for and may choose either:
    (a)  an annual service retirement allowance equal to the member's average
    annual compensation for the three (3) consecutive years of employment
    which produced the greatest aggregate compensation; or
    (b)  a separation benefit.
    (7)  The annual amount of initial service retirement allowance of a member
who is over age seventy (70) on the effective date of the member's retirement
shall be a percentage of the member's initial service retirement allowance.
Such percentage shall be one hundred percent (100%) increased as determined by
the board to compensate for each month that the member's retirement is
deferred beyond age seventy (70).
    (8)  A member's accrued retirement allowance, as otherwise provided in
subsections (1), (2), (3), (4) and (5) of this section, shall not be less than
the minimum accrued retirement allowance provided in this subsection. The
determination of the initial service retirement allowance provided in
subsections (1) and (2) of this section, and the application of the provisions
in subsections (6) and (7) of this section, will be made after the
determination of the minimum accrued retirement allowance provided in this
subsection.
    This subsection shall apply to members who have at least two (2) separate
periods of employment covered under this chapter where each separate period of
employment would otherwise be eligible for a separation benefit described in
section 59-1359, Idaho Code. For purposes of this subsection, if a separation
of employment occurs that does not exceed sixty (60) consecutive calendar
months then the member's period of employment shall be considered a continuous
period of employment. For purposes of this subsection, date of last
contribution is the date of final contribution for each period or periods of
employment.
    For each separate period of employment considered under this subsection,
the member must not have received a separation benefit for that period, or if
he has received such a separation benefit under section 59-1359, Idaho Code,
he must have completed reinstatement of all previous credited service
associated with all separation benefits for all periods of employment as
permitted under section 59-1360, Idaho Code.
    The minimum accrued retirement allowance shall be equal to the largest
accrued retirement allowance calculated at each date of last contribution
based upon the benefit and eligibility provisions in effect as of the date of
the last contribution made during such separate period of employment. For
purposes of determining the accrued retirement allowance for each date of last
contribution:
    (a)  the member must have at least sixty (60) months of credited service
    at the date of last contribution;
    (b)  the member's months of credited service and average monthly salary
    are determined based solely on all periods of employment up to that date
    of last contribution, ignoring later periods of employment; and
    (c)  the accrued retirement allowance computed for each period is
    multiplied by the bridging factor as provided in section 59-1355(3), Idaho
    Code, between the date of the last contribution made during that separate
    period of employment and the date of the member's final contribution made
    during the last period of employment prior to retirement.