Idaho

Overview

The Public Employees Retirement System of Idaho (PERSI) administers pension and other benefits to substantially all public employees in the state, including state employees, teachers, and employees of political subdivisions electing to participate. In addition to the basic defined benefit plan, PERSI administers two defined contribution plans: a voluntary 401(k) and a gain-sharing plan, in which excess investment gains are distributed to participant accounts when the plan is overfunded.

Plan Design

Defined benefit plans serve as the primary retirement benefit for substantially all public employees in Idaho.

According to the US Government Accountability Office, 98 percent of employees of state and local government in Idaho participate in Social Security.

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Authorizing Statutes and Board Structure

ID Code § 59-1301 establishes the Public Employee Retirement System. ID Code § 59-1304 creates the retirement board, which is composed of five members.

Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.

Fiduciary Duty/Prudence Standard

ID Code § 59-1301 describes the fiduciary responsibilities of the PERSI Board of Trustees:

With respect to the retirement fund created in this chapter, the fiduciaries of the fund shall discharge their duties with respect to the fund solely in the interest of the members and their beneficiaries
(a)  for the exclusive purpose of:

(i)  providing benefits to members and their beneficiaries; and
(ii) defraying reasonable expenses of administering the system;
(b)  with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;
(c)  by diversifying the investments of the fund so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and
(d)  in accordance with the provisions of the Idaho Code governing the system.

Legal Protections of Retirement Benefits

No explicit constitutional protection for public pension benefits, but courts recognize contractual protection for public pensions. "The rights of the employees in pension plans such as Idaho's Retirement Fund Act are vested, subject only to the reasonable modification to keep the pension system flexible and maintain its integrity. Since the employee's rights are vested, the pension plan cannot be deemed to provide gratuities. Instead, it must be considered compensatory in nature." Hansen v. City of Idaho Falls, 446 P.2d 634 (1968); Nash v. Boise City Fire Department, 663 P.2d 1105 (1983). (ID CONST., Article I, §16) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits

See also the following search tools:

More Data

• Public Fund Survey Summary of Findings
• Roll Call (NASRA members-only)