Helping Idaho Public Employees Build A Secure Retirement

PERSI History by Date

PERSI topics and important policy, statute, or rule changes in the history of PERSI.

Date Event

07/01/2012

HB579 repealed the sunset clause in Idaho Code section 59-1356(4) for teachers who retired without a reduced benefit and who have been or will be rehired by a school district.

04/03/2012

Idaho Code section 59-1302(14)(B)(h) amended to add cemetery districts and mosquito abatement districts to the list of employers that may have employees that can be certified as 8-month seasonal. "Growing season" was also removed from the text of the statute.

03/27/2012

Idaho Code section 67-5333A created to allow transfer of up to 90 days of unused sick leave from community colleges when transferred or hired immediately following termination by a state educational agency on or after 01/01/2012.

12/07/2011

The PERSI Board postpones rate increases scheduled for 07/01/2012, 07/01/2013, and 07/01/2014 by one year. Rate increases are now scheduled to commence on 07/01/1013 instead of 07/01/2012.

07/01/2011

An additional contingent annuitant factor table becomes effective for those retiring on or after 07/01/2011.

03/17/2011

SB1108 signed by Governor Otter repeals Idaho Code section 33-1004G (Early Retirement Incentive Program - ERIP) immediately (03/17/2011).

01/24/2011

The PERSI Board cancels school district sick leave contribution rate increases scheduled for July 2011 and July 2012.

12/07/2010

The PERSI Board postpones rate increases scheduled for 07/01/2011, 07/01/2012, and 07/01/2013 by one year. Rate increases are now scheduled to commence on 07/01/2012 instead of 07/01/2011.

07/01/2010

Added to Statute 59-1302(14)(B)(g) to exempt substitute teachers, substitute teaching assistants, and substitute library assistants from PERSI membership under the guidelines established by the section.
See Statute 59-1302(14)(B)(g)

07/01/2010

Statute 59-1354A added to provide circumstances under which a disability retiree can return to work and, if unsuccessful, return to disability retirement.

07/01/2010

Irrigation districts added to cities and counties as employers who may employ 8-month seasonal employees who could be ineligible for PERSI membership.

07/01/2010

Prohibits the use of severance pay by state employers to purchase PERSI service for state employees.
See Statute 67-5342A

03/01/2010

Additional employee contribution of .04% of salary becomes effective for Class II members.
See Statute 59-1352A and Rule 59.01.03.102

07/01/2009

Amended Statute 59-1351(6) to allow a retired member who marries to name their new spouse as contingent annuitant within one year after marriage and the election becomes effective 90 days after election, a change from the previous one-year effective period.

07/01/2009

Statute 59-1352A enacted to provide a $100,000 public safety officer disability benefit and Rule 59.01.03.102 set the increase in Class II employee contributions to an additional .04% of salary.
See Statute 59-1352A and Rule 59.01.03.102

07/01/2009

Sick leave contribution increases scheduled to go into effect beginning 07/01/2009 are delayed until 07/01/2011 and 07/01/2012.

03/30/2009

Statute 67-5333A allows the transfer of unused sick leave for members that transferred from Boise State University to the College of Western Idaho. This statute expires on 09/01/2009.

07/01/2008

The Idaho Digital Learning Academy changes to be treated as a public school. Employees are considered public school employees and accrue sick leave the same as other public school employees.
See Statutes 33-1228 and 33-5504A

07/01/2008

Rule 59.01.07.100 amended to set the minimum annual interest rate to be the greater of 1% or 90% of the net rate of return on the PERSI fund for the prior year.

01/01/2008

Amended Rule 59.01.05.125 to add a Roth IRA to the list of acceptable plans eligible to rollover a distribution of Base Plan funds.

10/23/2007

Based on excellent investment returns, the second and third contribution increases originally scheduled for 07/01/2005 and 07/01/2006 are cancelled by motion of the board.
07/01/2007

Amended existing law to allow retirement-in-place for school district teachers and administrators who retired with an unreduced benefit and were at least age 62 at time of retirement. Allowed teachers and administrators who meet the requirements to return to work immediately after retirement. Employers were required to pay contributions on the salary to fund the impact on PERSI. The amendment included a sunset clause for automatic expiration after five years.
See Statutes 33-1004H and 59-1356(4).

07/01/2007

Reduced the payment rate and extended the payoff period for colleges and universities to pay off the unfunded liability obligation that resulted when the ORP was established. The rate is reduced from 3.03% to 1.49% and the payoff date is extended from 2015 to 2025.
See Statute 33-107A.

07/01/2007

Specified the obligation of employers to report employment of all PERSI-eligible employees on a timely and accurate basis and required employers that fail to comply to pay all sums owed by the employer and the employee.
See Statute 59-1356.

07/01/2006

By amendment, Statute 67-5339, Use of Unused Sick Leave, was merged into Statute 67-5333 and became Statute 67-5333(2). (Senate Bill # 1363)

07/01/2006

Required that any FRF retiree benefit transferred to an alternate payee as part of a divorce settlement be converted to a lifetime annuity. The alternate payee benefit will be paid for the lifetime of the alternate payee and will not revert to the member upon the death of the alternate payee.
See Statutes 59-1319, 59-1320, 72-1422, 72-1461, 72-1462, 72-1463, 72-1464, and 72-1465.

07/01/2006

Removed the Board of Trustees of the Idaho Petroleum Clean Water Trust Fund from PERSI, retroactive to 01/01/2003.
See Statute 41-4904

07/01/2006

Clarified the provision for defense and indemnification of the PERSI Board, staff, and special committees. Clarified the relationship between the Idaho Tort Claims Act and the PERSI statutes. Specified coverage only applies when performing duties within the course and scope of employment.
See Statutes 59-1305 and 59-1308

07/01/2006

Established the Senior Magistrate Judges Fund, funded by additional filing fees, to purchase up to 48 months of PERSI service for senior magistrate judges as defined in Idaho Code 1-2221.
See Statute 1-2224

07/01/2006

Retirees who retire without early retirement reductions and are reemployed after being retired at least six months may elect to continue receiving retirement benefits and not accrue additional service if they are elected to a public office other than an office held prior to retirement.
See Statute 59-1356

07/01/2006

Amended a 1990 bill to make it effective for certain paid firefighters who were retired on the effective date of the bill. The bill transferred active members hired between 07/01/1978 and 09/30/1980 to the general provisions of the FRF law but did not address retired members hired in the time period. Language was added to state that retired members are treated similarly to active members.

07/01/2006

Eliminated mandatory distribution of account balances exceeding one-thousand dollars ($1000), thus avoiding the new federal mandatory rollover requirements.
See Statute 59-1359

07/01/2006

Clarified death benefit calculation for rehired retiree. Suspended benefits are considered retiree benefits in the event a death benefit becomes payable.
See Statute 59-1356

07/01/2006

Changed the Unused Sick Leave Program to allow the Board to determine the rate of pay used to calculate the value of a member´s account. Also allows PERSI to apply federal tax limits to payments from unused sick leave accounts and updates the types of insurance premiums that may be deducted from unused sick leave accounts.
See Statutes 33-1228 and 67-5339

07/01/2006

Repealed Statute 59-1335 concerning the Voluntary Contribution Program. The program had two remaining participants whose tax-deferred funds were distributed or rolled to the 401k plan.

07/01/2006

Added one-year restriction for inactive members to apply for disability retirement.
See Statute 59-1352

08/22/2005

PERSI re-evaluated its spousal consent requirements for designating beneficiaries and for applying for a separation benefit. Finding that there was not a legal requirement, PERSI dropped its requirement of spousal consent from all forms except the Application for Retirement form, where it is legally required. The forms and instructions were modified over the next few months.

07/01/2005

Status of the members of the Architects Board of Examiners is changed from non-PERSI to PERSI. This reverses a 1996 statute which removed the board members from PERSI.
See Statute 54-312

07/01/2005

Clarification of status for county detention officers, EMTs and dispatchers.
See Statute 59-1303

07/01/2005

Board powers and duties include investment committee members and the retention of audit services.
See Statute 59-1305

07/01/2005

A member´s benefits are determined on the basis of the plan as it existed on the date of the member´s last contribution as active members.
See Statute 59-1315

01/25/2005

Contribution rate increases scheduled for 07/01/2005 and 07/01/2006 were postponed to 07/01/2006 and 07/01/2007 by approval of the PERSI Board. See Rules 59.01.03.26, 27 and 28 and Rules 59.01.03.100 and 101

07/01/2004

FRF annual wage and salary calculations based on 12-month PERSI fiscal year and contributions due no later than five days after each pay date.
See Statutes 72-1431 and 72-1432

07/01/2004

The designated beneficiary may waive, in writing, any death benefit otherwise payable.
See Statute 59-1361

07/01/2004

The spouse contingent annuitant of a retired member can waive the right to receive a continuation of the retirement benefit as part of a divorce settlement.
See Statutes 59-1319, 59-1320, and 59-1351

07/01/2004

Elimination of Social Security Numbers from domestic retirement orders.
See Statute 59-1319

07/01/2004

Exclusion of ORP eligible employees from PERSI.
See Statute 59-1302(14)(B)(h)

03/23/2004

Military service will be credited for calculation of both regular retirement benefits as well as for survivor benefits in the event of the death of a PERSI member while on eligible military service.
See Statute 59-1302(23)

03/20/2004

Rate change increases of employer contribution rates for general members, Option I and II FRF, Class D firefighters, Class E, and Class II members over a three-year period beginning 07/01/2004, increasing 07/01/2005, and increasing again 07/01/2006.
See Rules 59.01.03.26, 27 & 28

03/20/2004

Rules 59.01.02.100 and 101 were amended to address rate change increases of employee contribution rates general members and Class II members over a three-year period beginning 07/01/2004, increasing 07/01/2005, and increasing again 07/01/2006.
See Rules 59.01.03.100 & 101

03/20/2004

A new subsection 03 was added to Rule 59.01.03.27 to set the contribution rate for Class E members.
See Rule 59.01.03.27

03/20/2004

Rule 59.01.03.114 was amended to clarify the guidelines for contributions due while a member is receiving worker´s compensation.
See Rule 59.01.03.114

03/20/2004

Rule 59.01.03.176 was amended to include the word "five" in the following statement: "All Contributions shall be remitted, together with an approved report to PERSI no later than five (5) days after each pay date as provided in section 59-1325(1), Idaho Code." This brings the rule into agreement with the statute.
See Rule 59.01.03.176 and Statute 59-1325

03/20/2004

Rules 59.01.03.001 and 002 were amended to make some minor name and addressing changes.
See Rules 59.01.03.001 and 002

07/01/2003

Public safety officer $100,000 death benefit.
See Statute 59-1361A, Rule 59.01.03.27, and Public Safety Officer topic

01/01/2003

Code Commission employees who were previously active PERSI members change to inactive.
See Statute 73-204

10/01/2002

Inactive members who still maintain a Choice Plan account can roll funds from eligible distributions into the Plan.

07/01/2002

Changed the remittance time for contributions from 20 days to 5 days after each pay date.
See Statute 59-1325

07/01/2002

A vested, inactive member may purchase up to 48 months of membership service, regardless of date of last contribution.
See Statute 59-1363

07/01/2002

A vested, inactive member may purchase membership service for active duty service in the armed forces of the United States that does not qualify for military service.
See Statute 59-1362

01/01/2002

Economic Growth & Tax Relief Reconciliation Act (EGTRRA) went into effect and gave Choice Plan members several new options. 
~A member who takes a hardship distribution from the Choice Plan can resume voluntary contributions after six months. 
~Plan members may be eligible for a tax credit-savers credit.
~If a member is 50 years or older in the current year, the member qualifies to participate in the catch-up provision.
~The maximum individual limit for the Choice 401(k) Plan was increased to the lesser of 100% of compensation or $40,000.

10/01/2001

State of Idaho 401(k) merged into Choice 401(k) Plan.

07/01/2001

Legislature authorized PERSI to provide certain information pertaining to the division of a member´s accounts or benefits to a spouse or former spouse. The measure specifically exempted from disclosure current addresses or phone numbers.
See Statute 59-1316.

07/01/2001

Active members may make voluntary contributions to the Choice 401(k) Plan.

02/01/2001

Choice 401(k) Plan established for all active PERSI members.

01/01/2001

First gain sharing distribution of $155 million to active members, retirees and employers.

07/01/2000

Purchase of service permitted. Members may purchase up to 48 months of Base Plan service.

07/01/2000

Eligibility for disability retirement reduced from 10 years to five.

07/01/2000

Gain sharing effective. Allows PERSI to share excess investment earnings with members and employers.

07/01/2000

Benefit enhancements effective. Multiplier increases to .02 for general members, .023 for police/fire.

01/01/2000

Regular interest rate paid to members becomes the net market rate earned by PERSI investments, or at a minimum, the yearly average of the 13-week Treasury Bills.

07/01/1999

Concept of vested retirement eliminated but requirements for "vesting" preserved.

07/01/1999

Double death benefit. If a member is vested and dies, the beneficiary may receive two times the member´s account balance plus interest.

07/01/1998

HB 678 - Allow magistrate judges the option of remaining in PERSI when they transfer to a district court position.

07/01/1998

ORP contribution rate "de-linked" from PERSI rate by HB 627.

07/01/1998

Division of PERSI account at time of divorce with an approved domestic retirement order dated after 07/01/1998, PERSI accounts are divided into member and alternate payee accounts. Before that time, division was not possible before member qualified for an IRS qualified distributable event.

07/01/1997

Community colleges and post-secondary professional- technical education institutions implement Optional Retirement Program (ORP).
See Statute 33-107B

07/01/1997

Spouse is automatic beneficiary if there is no surviving named beneficiary or if PERSI has no completed beneficiary form on file.

07/01/1997

Eligibility period increased from 5 to 8 consecutive months for county employees whose position is related to weather and growing season. Certification required.

07/01/1997

Lump sum payoffs at separation (including vacation pay) are not considered salary.

07/01/1996

Spousal consent required on separation benefit payments and rollovers.

07/01/1996

Refund of contributions on "unusual" compensation at time of retirement discontinued.

03/14/1996

Minimum of 90 day break in employment required to be eligible for a separation benefit if member returns to work for same employer. Retiring members under age 60 (police/firefighters) or 65 (general members) cannot retire and return to work for the same employer within 90 days. Employees cannot receive a separation benefit even if they drop below the 20 hours per week required for membership. For a member to be eligible for separation benefit or retirement before age 60/65, the employer cannot promise re-employment. All of these requirements are due to IRS regulations.

03/14/1996

Repayment of separation benefit by active members becomes irrevocable once tax-deferred payments begin due to IRS regulations.

07/01/1995

401(k) supplemental savings plan established for State employees. PERSI administers plan.

07/01/1995

Revised contingent annuitant option factors for retirements effective 07/01/1995 or later.

07/01/1995

Eligibility period increased from 5 to 8 consecutive months for city employees whose position is related to weather and growing season. Certification required.

10/01/1994

Third phase of benefit enhancements effective.
~Contribution rates increase to: 6.97% for general members, 8.53% for police/firefighters, 11.61 for general member employers, 11.85 for police/fire employers.
~Multiplier increases to .01917 for general members, .02225 for police/fire.
~Early retirement reductions improved.

10/01/1993

Second phase of benefit enhancements effective.
~Contribution rates increase to: 6.38% for general members, 7.82% for police officers/firefighters, 10.63% for general member employers, 10.87% for police/fire employers.
~Multiplier increases to .01833 for general members, .0215 for police/fire.
~Early retirement reductions improved.

07/01/1993

Non-vested, inactive members can only leave contributions in PERSI for 3 years.

07/01/1993

Employees separated with less than 5 months of service who are rehired with less than a 30-day break are eligible for PERSI. Section(c) was added to Statute 59-1302(14)(A) to include them in the definition of employee.

07/01/1993

Police officers and PERSI firefighters hired after 07/01/1993 are eligible for disability retirement from the first day on the job if the disability is job-related. To fund this, the police/fire members´ contribution rates increased to 7.19% and the police/fire employer rate increased to 9.99%. Prior to this date, employers paid one rate for Class 1 and Class 2 members.

01/01/1993

PERSI can now pay separation benefit payments as direct rollovers to a member´s IRA or qualified retirement plan.

01/01/1993

20% withholding tax required on lump-sum payments unless rolled directly to IRA or qualified retirement plan.

10/01/1992

First phase of benefit enhancements effective.
~Contribution rates increase to: 5.84% for general members, 7.02% for police officers/firefighters, 9.75% for employers.
~Multiplier increases to .0175 for general members, .02075 for police officers/firefighters.
~Early retirement reductions improved.

09/01/1992
10/01/1992
12/01/1992

Credit unions removed from PERSI. Credit unions no longer met the definition of employer as contained in Statute 59-1302(15) and were removed from PERSI with all contributions and liability returned to the credit unions.

07/01/1992

Employees working at more than one PERSI employer must meet eligibility at each employer to contribute at each employer. State employees working at multiple state agencies are eligible at all agencies if combined total is 20 hours or more per week (double employees).
See Rule 59.01.02.101

07/01/1992

If retiree´s contingent annuitant dies first, the retirement benefit "pops up" to higher benefit amount. For members who were active 07/01/1992 and whose retirement is effective 10/01/1992 or later.

07/01/1991

Unused sick leave program implemented for universities´ Optional Retirement Program (ORP).

07/01/1991

For disability retirement, workers´ compensation offset is eliminated if member is also receiving Social Security disability benefits that are offset.

07/01/1991

Retirement Options 3, 4A, and 4B based on the Social Security full retirement age (SSFRA), not age 65, for members born 1938 or later.

07/01/1991

If retiree finishes repaying separation benefit, retirement benefit increases the first month following the completion of repayment.

07/01/1991

Ten-year rule for repaying separation benefits eliminated. Members may begin repaying at anytime while an active member.

07/01/1991

Non-vested FRF members can convert any number of years of FRF service to PERSI under specific conditions.

07/01/1991

FRF accounts begin accruing interest.

03/01/1991

FRF retiree´s widow permitted to remarry without losing widow´s benefits.

10/19/1990

Changes in benefit calculations of Social Security Options when there is a contingent annuitant.

07/01/1990

Universities implement Optional Retirement Program (ORP).
See Statute 33-107A

07/01/1990

Board obtains ability to recommend retroactive retiree cost of living allowances (COLAs) if funds are available.

07/01/1990

Eligibility changed from "normally in excess of 20 hours per week" to "normally 20 hours or more per week," and for teachers from "more than one-half contract" to "one-half time contract or more."

05/01/1990

Members eligible for service retirement have option to receive separation benefit instead of retirement benefit.

05/01/1990

Death benefits payable to beneficiary if both the retired member and their contingent annuitant die while funds remain in the member´s account.

05/01/1990

Benefits improved plus up for vested members retiring over age 70.

05/01/1990

No benefit can exceed high 3-year average of salary.

02/01/1990

Rollovers from conduit IRAs (401a, 401k, ESOP, IRA, TIAA-CREF) allowed for repaying separation benefits.

01/23/1990

When repaying a separation benefit, interest on withdrawn contributions begins at the date of the separation payment.

07/01/1987

Tax exclusion calculated due to Tax Reform Act of 1986, federal taxes begin on retirees´ non-taxed contributions.

07/01/1985

Police officers certified as Class 2 members. Grandfather rights for members who were class 2 members on 06/30/85 but reclassified to general members 07/01/1985, if they remain in the same position until retirement.

07/01/1985

Mixed service ratio for police officer/general member service added to benefit calculation.

03/15/1984

2-year interest-free period for repaying separation benefit eliminated. Interest begins accruing on reappointment or 04/01/1984, whichever is later.

07/01/1983

Contributions become tax-deferred.

07/01/1982

Rule of 80/90 changed from minimum ages of 50 (police/fire) and 60 (general members) to any combination of age and years of service as long as the members are at least 50/55 respectively.

07/01/1981

Voluntary contribution program discontinued.

07/01/1981

Upon hiring, employer must report member immediately instead of reporting during "first full payroll period."

10/01/1980

Firefighters´ Retirement Fund (FRF) merges with PERSI. All new firefighters are PERSI members.

10/01/1980

Department of Employment (DOE) merges with PERSI. All new DOE employees are PERSI members.

07/01/1980

Early retirement factors improved.

07/01/1979

Mandatory retirement age eliminated.

10/01/1977

CETA employees no longer eligible for PERSI membership.

07/01/1976

Supplemental Teachers´ Service (STS) redefined as membership service and calculated the same providing better benefits for TRS service from 07/01/1965 to 06/30/1967.

07/01/1976

Membership eligibility changed from "5 months per calendar year" to "5 consecutive months per calendar year."

07/01/1976

Total credited service for disability retirement cannot exceed 360 months.

03/15/1976

If a separation benefit is not repaid within 2 years of reemployment, the member can still repay with interest charged on the unpaid balance up to 2 years from the rehire date.

12/31/1975

First-year waiting period can still be picked up, but with interest charged from 12/31/1975 until repaid.

07/01/1975

Salary inconsistent with usual compensation patterns may be disallowed in determining "highest average monthly salary."

07/01/1974

Members can pick up the first-year waiting period if repaid by 12/31/1975.

07/01/1974

Sex bias removed from optional retirement factors.

07/01/1974

Sex bias removed from benefit formula. Benefit formula improved retroactively for all retired members.

07/01/1971

Allowed number of years separating periods of eligible employment for reinstatement of past service changed from "no more than 5 years" to "no more than 10." Time allowed for repayment of the separation benefit after reemployment changed from 6 months to 2 years.

07/01/1971

End of 1-year waiting period.

07/01/1969

Discretionary cost-of-living increases and death benefit provisions were adopted.

07/01/1967

Teachers´ Retirement System (TRS) merges with PERSI.

06/01/1967

Elected and appointed officials working less than 20 hours per week are eligible for membership.

07/01/1965

Created in 1963 by the 37th legislature, PERSI became operational effective 07/01/1965.

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