ID H0552

Replaces terminology of "withdrawal liability" with "withdrawal penalty" throughout the statute governing political subdivision withdrawals from the Public Employee Retirement System.

Revises partial withdrawal calculation to require membership decline over two consecutive fiscal years by more than 25 members or 25% of average membership, with "average membership" calculated as one twenty-fourth of the sum of active members for each month of the period.

Requires withdrawing political subdivisions to enter into contracts establishing payment terms for withdrawal penalties, with interest rates based on the actuarial valuation rate and payment duration not exceeding 10 years or the current amortization period, whichever is less.

Confirms that upon complete withdrawal, the system has no further legal obligation to the political subdivision or its employees, and requires the withdrawing political subdivision to indemnify and hold harmless the system, its board, employees, and the state of Idaho from any claims or liabilities resulting from the withdrawal.

Effective date of July 1, 2022, with the act declared an emergency measure.