IDAPA 59.01.01
The following stakeholders in the public employee retirement system:
PERSI rules are established for the efficient and effective administration of the PERSI plan as established by the legislator in Chapter 13, Title 59, Idaho Code.
This rule implements the following statutes passed by the Idaho Legislature:
Public Officers in General -
Public Employee Retirement System:
PERSI
8:00am – 5:00pm
607 North 8th Street
Boise, Idaho 83702
Phone: (208) 334-3365
Fax: (208) 334-2086
Email: Michael.hampton@persi.idaho.gov
https://www.persi.idaho.gov/
This rule chapter will be reviewed in compliance with Section 67-5292, Idaho Code, and in accordance with the 8-year rule review schedule linked here.
59.01.01 – Rules for the Public Employee Retirement System of Idaho (PERSI)
001. Legal Authority. ... 6
002. (Reserved) ... 6
003. Administrative Appeal. ... 6
004. Definitions. ... 6
005. -- 099. (Reserved) ... 8
SUBCHAPTER A – PERSI RULES FOR ELIGIBILITY
100. Mandatory Membership. ... 8
101. Multiple Employers -- Membership Eligibility. ... 8
102. Elected And Appointed Officials Not Subject To Twenty Hour Requirement. ... 8
103. Elected And Appointed Officials. ... 8
104. -- 110. (Reserved) ... 8
111. Teacher Working Half-time Or More. ... 8
112. Responsibility Of Employer To Determine Employee Eligibility. ... 9
113. Normally Works Twenty Hours. ... 9
114. Application Of The Five Month Requirement. ... 9
115. -- 120. (Reserved) ... 9
121. Ceasing To Be An Employee. ... 9
122. Leave Of Absence. ... 9
123. -- 199. (Reserved) ... 10
200. Determination Of Firefighter. ... 10
201. Incorrect Classification Of Firefighter. ... 10
202. Paid Firefighter Exclusion From Rules 200 And 201. ... 10
203. -- 249. (Reserved) ... 10
SUBCHAPTER B – PERSI GENERAL PROVISIONS, CONTRIBUTION RATE, MISCELLANEOUS, AND INTEREST RATE RULES
250. -- 302. (Reserved) ... 10
303. Employee Contributions Based On Gross Salary. ... 10
304. (Reserved) ... 10
305. Multiple Employers -- Contribution Rate. ... 10
306. State Employee Contributions. ... 10
307. Police Officer Contributions Withheld Incorrectly. ... 10
308. Contributions Due While Member Is Receiving Worker's Compensation. ... 11
309. Vacation And Contractual Payments Subject To Contributions. ... 11
310. -- 349. (Reserved) ... 11
350. Regular Interest. ... 11
351. Interest – Member Contributions. ... 11
352. Reinstatement Interest. ... 11
353. -- 374. (Reserved) ... 11
SUBCHAPTER C – PERSI DISABILITY RULES
375. -- 399. (Reserved) ... 11
| 400. Applying For Disability Retirement. | 11 |
|---|---|
| 401. (Reserved) | 11 |
| 402. Disability Assessment Review. | 11 |
| 403. Reconsideration Of Disability Assessment Decision. | 12 |
| 404. Administrative Review Of The Reconsideration Decision. | 12 |
| 405. Delegation. | 12 |
| 406. Reassessment Of Disability Retirees. | 12 |
| 407. Attorney's Fees And Costs. | 12 |
| 408. -- 424. (Reserved) | 12 |
| 425. Burden On Applicant. | 12 |
| 426. Statutory Standard. | 12 |
| 427. (Reserved) | 12 |
| 428. Hire-ability Of Applicant. | 13 |
| 429. -- 449. (Reserved) | 13 |
| 450. Commencement And Duration Of Disability Allowance. | 13 |
| 451. Determining Worker's Compensation Offset. | 13 |
| 452. Effect Of Unused Sick Leave On Disability Allowance. | 13 |
| 453. -- 474. (Reserved) | 13 |
| 475. Application Of This Subchapter To FRF Disability Retirement. | 13 |
| 476. -- 499. (Reserved) | 13 |
| SUBCHAPTER D – PERSI SEPARATION FROM SERVICE RULES | |
| 500. Repayment Of Separation Benefits -- Employee Status. | 13 |
| 501. Interest Accrual And Calculation On Separation Benefits. | 13 |
| 502. Repayment Of Separation Benefits By Employees Previously Precluded From Repayment. | 13 |
| 503. Methods Of Repayment Of Separation Benefits. | 14 |
| 504. In-Service Transfers To Reinstate Service. | 14 |
| 505. (Reserved) | 14 |
| 506. Rollovers Accepted Into The Base Plan. | 14 |
| 507. Direct Rollovers Out Of The Base Plan. | 15 |
| 508. Required Minimum Distributions. | 15 |
| 509. Transfers To Non-Spouse Beneficiaries. | 16 |
| 510. -- 524. (Reserved) | 16 |
| SUBCHAPTER E – PERSI RETIREMENT RULES | |
| 525. Average Monthly Salary Computation -- Equitable Treatment -- Different Work Periods. | 16 |
| 526. Unusual Compensation Pattern Effect On Retirement Calculation. | 17 |
| 527. Maximum Retirement Allowance (Rule 111). | 17 |
| 528. Member Notified Of Available Retirement Options Prior To Board Approval. | 17 |
| 529. -- 530. (Reserved) | 17 |
| 531. Retirement Applications. | 17 |
| 532. (Reserved) | 17 |
| 533. Elected Or Appointed Official Working For Multiple State Agencies, Political Subdivisions or Government Entities. | 17 |
534. Elected Or Appointed Official Retiring In Place. ... 17
535. (Reserved) ... 17
536. Retired Member Becoming An Active Member. ... 17
537. Reemployment Less Than Five Consecutive Months. ... 18
538. Reemployment -- Working Less Than Twenty Hours Or Less Than Five Consecutive Months. ... 18
539. Retired Member Becoming An Elected Or Appointed Official. ... 18
540. Separation From Employment After Reemployment. ... 18
541. Early Retirement Member -- Reemployment. ... 18
542. Benefit Enhancement -- Qualification. ... 18
543. -- 544. (Reserved) ... 18
545. Pre-ERISA Vesting Rules. ... 18
546. Forfeitures. ... 19
547. Actuarial Assumptions To Be Specified. ... 19
548. (Reserved) ... 19
549. Defined Benefit Dollar Limitation. ... 19
550. Computation Of Benefits For Employees Of Withdrawn Employer. ... 19
551. Computing Value Of Sick Leave. ... 20
552. Sick Leave Funding Rates. ... 20
553. Limitation On Insurance Programs. ... 20
554. Payment Of Insurance Premiums. ... 20
555. Separation By Reason Of Retirement. ... 21
556. Prohibition Against Cash Option. ... 21
557. -- 575. (Reserved) ... 21
576. Participation In Subdivision Unused Sick Leave Pool. ... 21
577. Operation Of Subdivision Pool. ... 22
578. Funding Of Subdivision Pool. ... 22
579. Termination, Withdrawal, Or Removal From Subdivision Pool. ... 22
580. -- 600. (Reserved) ... 22
601. Firefighter Retirement Allowance. ... 22
602. Reemployment Of Retired FRF Firefighter. ... 22
603. -- 624. (Reserved) ... 22
625. Purchase Of Service Generally. ... 22
626. Time Of Retirement. ... 22
627. Retirement Delayed Or Negated After Purchase. ... 23
628. Treatment Of Purchase Of Service Contributions. ... 23
629. Employer Participation. ... 23
630. Additional Limits On Purchased Service. ... 23
631. -- 649. (Reserved) ... 23 SUBCHAPTER F – PERSI GAIN SHARING RULES
650. Existence Of Extraordinary Gains. ... 23
651. Value Of Plan Assets. ... 24
652. Plan Liabilities. ... 24
653. One Standard Deviation. ... 24
654. Board Discretion. ... 24
655. -- 674. (Reserved) ... 24
675. Allocation Between Groups. ... 24
676. -- 699. (Reserved) ... 24
700. Active Member Allocation. ... 24
701. Minimum Allocation Amount. ... 24
702. Active Member. ... 24
703. Accumulated Contributions. ... 25
704. Transfer To Defined Contribution Choice Accounts. ... 25
705. Limitations On Allocation. ... 25
706. Intervening Retirement. ... 25
707. Intervening Withdrawal Of Contributions. ... 25
708. Intervening Death Of Active Member. ... 25
709. Treatment Of Gain Sharing Allocations In The Choice Account. ... 25
710. -- 724. (Reserved) ... 25
725. Retiree Allocation. ... 25
726. Retiree. ... 26
727. Monthly Benefit. ... 26
728. Payment Of Allocation. ... 26
729. Limitations On Allocation. ... 26
730. Intervening Death Of A Retiree. ... 26
731. Intervening Reemployment. ... 26
732. Negated Retirement. ... 26
733. -- 749. (Reserved) ... 26
750. Employer Allocation. ... 26
751. Employer. ... 26
752. Contribution Liability. ... 26
753. Credit Of Allocation. ... 26
754. Carry-Over Of Credit. ... 27
755. Withdrawal Of Employer. ... 27
756. -- 999. (Reserved) ... 27
Sections 50-1507, 50-1508, 50-1524, 59-1301, 59-1314, 59-1372, 59-1383, 59-1392, and 72-1405, Idaho Code. (7-1-24)
Administrative appeals are conducted pursuant to these rules. (7-1-24)
The definitions in Section 59-1302, Idaho Code, and the following apply to this chapter: (7-1-24)
01. Active Member. A member participates in the active member allocation only if they are active and have at least twelve (12) months of accrued membership service on the last day of the fiscal year. For purposes of allocating extraordinary gains, active members also include: (7-1-24)
a. Seasonal employees who have a pattern of employment that includes at least six (6) months of membership service in each of the preceding three (3) consecutive years; and (7-1-24)
b. Employees who are on leave of absence on the last day of the fiscal year and either: (7-1-24)
i. Return to active service for at least thirty (30) days before December 31 immediately following the end of the fiscal year; or (7-1-24)
ii. Are entitled to benefits under the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA). (7-1-24)
02. Actuary. This is the actuary retained by the Board. (7-1-24)
03. Administrator. The Board. (7-1-24)
04. Applicant. “Applicant” means an applicant for disability retirement under Section 59-1352, Idaho Code, or an individual requesting resumption of a disability retirement allowance under Section 59-1354A, Idaho Code. (7-1-24)
05. Base Plan or Account. This is the PERSI defined benefit plan not including gain sharing allocations or interest thereon, or the individual accounts therein. (7-1-24)
06. Board. “Board” means the governing authority of the Public Employee Retirement System of Idaho as provided by Section 59-1304, Idaho Code, of the Firefighters’ Retirement Fund created by Chapter 14, Title 72, Idaho Code, and the Policeman’s Retirement Fund created by Chapter 15, Title 50, Idaho Code. (7-1-24)
07. Choice Plan or Account. This includes two (2) elements: (7-1-24)
a. The defined contribution component of the PERSI plan consisting of gain sharing allocations together with earnings thereon or the individual accounts therein; and (7-1-24)
b. The plan designated to receive voluntary and employer contributions as provided in Section 59-1308, Idaho Code, or the individual accounts therein. (7-1-24)
08. Code. The Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to sections of the IRS Code are to such sections as they may from time to time be amended or renumbered. (7-1-24)
09. Compensation. “Compensation” as used in Section 59-1342(6), Idaho Code, means “salary” as defined by Section 59-1302(31), Idaho Code. (7-1-24)
10. Court Security. “Court Security” as used in Section 59-1303(3)(g), Idaho Code, means the employee’s primary responsibilities are designated by court order to quell disturbances in the courthouse, to prevent the escape of prisoners, to exclude weapons from the courthouse, and to perform other related courthouse security matters. (7-1-24)
11. Date of Retirement. “Date of retirement” means the effective date on which a retirement allowance becomes payable. (7-1-24)
12. Designated Beneficiary. The individual who is designated as the beneficiary under the Plan and is the designated beneficiary under section 401(a)(9) of the IRS Code and section 1.401(a)(9)-4, Q&A-4, of the Treasury regulations. (7-1-24)
13. Employment. “Employment” as used in Section 59-1302(14)(B)(b), Idaho Code, shall mean the period of time from a member’s date of hire to the member’s succeeding date of separation from that state agency, political subdivision or government entity. Placing a member on leave of absence with or without pay shall not be considered as a separation from the employer. (7-1-24)
14. Firefighters’ Retirement Fund. “Firefighters’ Retirement Fund” or “FRF” is the retirement fund provided by Chapter 14, Title 72, Idaho Code. (7-1-24)
15. Gain Sharing. This refers to the process of allocating extraordinary gains from the base plan into the defined contribution component of the PERSI plan as permitted in Section 414(k) of the Internal Revenue Code and as provided by Section 59-1309, Idaho Code, and these rules. (7-1-24)
16. General Member. “General member” is a PERSI member not classified as a police officer, firefighter, paid firefighter, or school employee. (7-1-24)
17. Likely. For the purpose of Section 59-1302(12)(b), Idaho Code, “likely” means with reasonable medical certainty. (7-1-24)
18. Occupational Hazard. “Occupational Hazard” means an injury or ailment solely resulting from the work an applicant does or from the environment in which an applicant works. (7-1-24)
19. Pension Protection Act Definitions. Solely for purposes of the implementation by PERSI of section 402(l) of the Internal Revenue Code, the following definitions apply: (7-1-24)
a. Chaplain. Any individual serving as an officially recognized or designated member of a legally organized volunteer fire department or legally organized police department, or an officially recognized or designated public employee of a legally organized fire or police department who was responding to a fire, rescue, or police emergency. (7-1-24)
b. Eligible Retired Public Safety Officer. An individual who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer with the state agency, political subdivision or government entity who maintains the eligible retirement plan from which distributions are made. (7-1-24)
c. Normal Retirement Age. The member’s age at the time that the member is eligible to retire with an unreduced benefit. (7-1-24)
d. Public Safety Officer. An individual serving a public agency in an official capacity, with or without compensation, as a law enforcement officer, as a firefighter, as a chaplain, or as a member of a rescue squad or ambulance crew. (7-1-24)
20. Primary Employer. The primary employer is the state agency, political subdivision or government entity from whom the employee receives the highest aggregate salary per month. (7-1-24)
21. Public Employee Retirement System of Idaho. “Public Employee Retirement System of Idaho” or “PERSI” is the retirement system created by Chapter 13, Title 59, Idaho Code. (7-1-24)
22. Required Beginning Date. The date specified in Section 508.02 of these rules. (7-1-24)
23. Retiree. Retiree includes any member, contingent annuitant, or surviving spouse, receiving regular monthly allowances at the close of the fiscal year. It also includes members receiving a monthly disability retirement
allowance, surviving spouses who elected an annuity option under Section 59-1361(5), Idaho Code, and members who were inactive at the close of the fiscal year but retire on or before the first day of January following the end of the fiscal year, retroactive to the first day of June of the fiscal year or earlier. (7-1-24)
24. Service. For the purposes of Sections 536 and 539, “service” includes only service for which the member is normally in the administrative offices of the state agency, political subdivision or government entity or normally required to be present at any particular work station for the state agency, political subdivision or government entity. (7-1-24)
25. Surviving Spouse. “Surviving spouse” is a person as defined in Section 15-2-802, Idaho Code. (7-1-24)
26. Transportation Of Prisoners. “Transportation of prisoners” as used in Section 59-1303(3)(g), Idaho Code, means the employee’s primary responsibility is designated by court order to move prisoners from one (1) place to another. (7-1-24)
005. -- 099. (RESERVED)
Rules 100 through 249
Membership in PERSI is mandatory for all persons who meet the statutory definition of an “employee” in Section 59-1302(14), Idaho Code. (7-1-24)
An employee establishes separate PERSI membership eligibility with each state agency, political subdivision or government entity with which the employee meets the statutory definition of an “employee” as found in Section 59-1302(14), Idaho Code. (7-1-24)
01. Does Not Meet the Statutory Definition. Because membership eligibility is established independently with each state agency, political subdivision or government entity, neither employer nor employee contributions are required on salary paid by employers to employees who do not meet the statutory definition of an “employee” as found in Section 59-1302(14), Idaho Code. (7-1-24)
02. State Agencies. An employee working for more than one (1) state agency establishes eligibility based on the total hours of employment worked with all state agencies. (7-1-24)
Elected and appointed officials are not subject to the hourly requirement of Section 59-1302(14)(A)(a), Idaho Code. (7-1-24)
01. Hourly Requirement. Elected and appointed officials are not subject to the hourly requirement of Section 59-1302(14)(A)(a), Idaho Code. (7-1-24)
02. Salary and Honorarium. Elected and appointed officials serving on boards, councils, or commissions who receive salary or honorarium for services performed are members of PERSI even though they receive nominal salary and do not normally work twenty (20) hours or more per week. (7-1-24)
104. -- 110. (RESERVED)
For the purposes of Section 59-1302(14)(A)(a), Idaho Code, a teacher is considered to be working half-time or more if the teacher’s contract specifies that the engagement is half or more of a full contract. Teachers and all other school
employees not employed under such a contractual arrangement shall be required to meet the requirement of normally working twenty (20) hours or more per week. (7-1-24)
It is the responsibility of each state agency, political subdivision or government entity to make the initial determination of which employees within its jurisdiction meet the requirements of eligibility for membership and to withhold the required member contributions from salary paid. (7-1-24)
If a person works twenty (20) hours or more per week for more than one-half (1/2) of the weeks during the period of employment being considered, then the person meets the requirements of Section 59-1302(14)(A)(a), Idaho Code (“normally works twenty (20) hours or more per week”), and shall be considered an employee if the person meets the other requirements of Section 59-1302(14), Idaho Code. (7-1-24)
An employee working twenty (20) hours or more per week who is hired with the expectation of working less than five (5) consecutive months, becomes retroactively eligible for membership and employee and employer contributions must be immediately withheld whenever it becomes evident the period of employment will be five (5) consecutive months or longer and the employee meets the other requirements of Section 59-1302(14), Idaho Code. Delinquent payments will be paid by the employer within three (3) months. Regular interest will be assessed against the outstanding balance at the rate provided in Section 59-1325, Idaho Code. (7-1-24)
A member ceases to be an employee on the day following the effective date that the member is separated from their employer. Membership service credits stop on the day the member ceases to be an employee. (7-1-24)
A member is ineligible to contribute and receive membership service credit while on leave of absence without pay or while on leave of absence with less than one-half (1/2) pay, unless the absence is occasioned by a worker’s compensation claim approved by a surety. An active member separated from employment under conditions where both the member and the employer plan a later return to employment should be placed on leave of absence without pay during the planned period of absence. (7-1-24)
01. Employer and Employee Contributions -- Leave of Absence. During the leave of absence without pay, employer and employee contributions cease. If the member is on a leave of absence as a result of an approved worker’s compensation claim, employer and employee contributions are due and payable on any salary paid to the member. The member is entitled to a month of membership service credit for each month the member remains on leave of absence as a result of an approved worker’s compensation claim and receives salary in addition to income benefits. (7-1-24)
02. Documentation of Leave of Absence. The employer shall provide PERSI with documentation, on a form provided by PERSI, of a leave of absence to clarify the member’s status and retirement benefit entitlement. (7-1-24)
03. Status of Employee on Leave of Absence. An employee placed on a leave of absence by an employer remains in an employee status and is ineligible for payment of any separation benefits or for payment of a service, early, disability, or vested retirement allowance. If a member on leave of absence without pay terminates employment without returning to work, the leave without pay status is negated. (7-1-24)
04. Leave of Absence -- Effect on Benefit Enhancement. An employee shall not be placed on a leave of absence without pay prior to the effective date of a benefit enhancement and then return to work after the effective date of the benefit enhancement for the purpose of qualifying for the benefit enhancement. An employee placed on unpaid leave of absence prior to the date of the benefit enhancement who returns to work after the effective date of the benefit enhancement and subsequently applies for retirement shall include with the application for retirement, certification from the state agency, political subdivision or government entity that the leave of absence was not
granted for the purpose of allowing the person to qualify for the benefit enhancement. (7-1-24)
In addition to Section 59-1302(16), Idaho Code, the definition of a firefighter member for retirement purposes is an employee appointed to the position of fire chief by a city council but not eligible to be a “paid firefighter,” or the chief fire warden of a timber protective association, or is an employee of either the department of lands or of a timber protective association whose primary position and principal accountability in that position either requires direct supervision of employees engaged in the prevention, presuppression and suppression of wild land fires or requires the performance of those duties as the principal function of the position. A firefighter member for retirement purposes does not include an employee who may be required on occasion to engage in those functions as a secondary requirement of the position. (7-1-24)
An employer or agency which believes that any position is incorrectly classified as a firefighter position or a non-firefighter position may petition the Board for inclusion or exclusion of such position as a firefighter position. Such petition shall be in writing and explain in detail the principal duties of the position. The Board will review the petition and evidence, together with such information and evidence as may be presented by the staff of PERSI. The Board may decide the matter based upon the information supplied, may request additional information, or may request an oral presentation before the Board. (7-1-24)
The provisions of Sections 200 and 201 of this subchapter do not apply to a “paid firefighter” as defined by Sections 59-1391(f) or 72-1403(A), Idaho Code, or to any references to “firefighter” found in Title 72, Chapter 14, Idaho Code.
Statutory References: Sections 59-1302(16), 59-1391(f) and 72-1403, Idaho Code. (7-1-24)
MISCELLANEOUS, AND INTEREST RATE RULES Rules 250 through 374
Employee contributions shall be based on the employee’s total gross salary regardless of source or employer funds from which the employee is paid. (7-1-24)
If the employee has met eligibility requirements with more than one (1) employer that would result in different contribution rates, contributions shall be made at the rate for the member’s classification with the primary employer. (7-1-24)
If an employee establishes membership with the state, the employee and each agency must make contributions on the employee’s salary regardless of the number of hours worked at each state agency. (7-1-24)
If an employee’s contributions are withheld by an employer and received by PERSI at the rate established for police members on the presumption the certification required by Section 59-1303, Idaho Code, will be accepted, but if it is rejected, the employer shall adjust the employee’s contribution rate to a general member rate and PERSI shall return to the employer any excess employee contributions that have occurred. (7-1-24)
01. Contributions Due and Payable. Contributions are due and payable on whatever percentage of salary is paid while the member is on a leave of absence occasioned by an approved worker’s compensation claim and the member will be entitled to a month of membership service credit for each month the member remains eligible. (7-1-24)
02. Accruing Service. This means for an employee to continue accruing service the employer must continue to pay salary equal to the lesser of: (7-1-24)
a. The amount necessary to meet the statutory definition of employee (half-time at the pre-injury rate or more), or (7-1-24)
b. The employee’s full-time salary less the employee’s worker’s compensation income benefit. (7-1-24)
Compensation paid for vacation or remaining contractual payments is salary subject to employee and employer contributions and earns membership credit through the effective date of separation from employment at the usual rate of compensation. (7-1-24)
Regular interest for each calendar year shall be the greater of ninety percent (90%) of the rate of return on the PERSI fund net of all expenses for the fiscal year ending immediately prior to the calendar year as reported in the actuary’s annual valuation report or one percent (1%). (7-1-24)
Regular interest as defined in Section 59-1302(26), Idaho Code, shall accrue to and be credited monthly to a member’s accumulated contributions. (7-1-24)
Reinstatement interest for each calendar year shall equal the average of the prime rate on June 30 of the latest three (3) years, plus one percent (1%). For purposes of this rule, the prime rate is the “prime rate” listed in the “Money Rates” section of the Wall Street Journal on June 30, or in the event no rate is listed on June 30, on the latest date preceding June 30 for which a prime rate is listed. Unless otherwise provided by statute or rule, reinstatement interest shall apply to all amounts owed to the fund. (7-1-24)
Rules 375 through 499
Eligible members may apply for disability retirement by completing a required form available from any PERSI office. The application process may include an interview by a PERSI representative. Applicants must release all medical records and information to PERSI. The hours worked to qualify as an employee as defined in Section 59-1302(14), Idaho Code, is inapplicable for purposes of determining disability. (7-1-24)
Applicants will be assessed to determine whether they qualify for disability retirement under the applicable standard. The assessment may include without limitation, records review, medical and psychological examinations, vocational
assessments, or any combination thereof as determined by PERSI. Failure to timely comply with any request made by PERSI during the assessment process shall result in automatic denial of disability retirement. At the conclusion of the assessment process, PERSI will notify applicants in writing whether or not they qualify for disability retirement.
(7-1-24)
Applicants who are denied disability retirement as a result of an adverse disability assessment decision, and wish to contest that decision, are required to participate in a reconsideration process. A request for reconsideration must be made within thirty (30) days of the issuance of the disability assessment decision. Any additional information the applicant wishes to be considered must be submitted to PERSI within thirty (30) days of the request for reconsideration. The additional information will be reviewed and a reconsideration decision will be issued in writing to the applicant.
(7-1-24)
A reconsideration decision shall be considered a final decision under Section 59-1314(2), Idaho Code, and may be appealed to the Board for review. In any related administrative hearing, the applicant shall be limited to presenting facts and evidence made available to PERSI in the reconsideration process. No new or additional evidence may be presented at the hearing. If the applicant has additional facts or evidence that were not made available to PERSI during the assessment or reconsideration process, the applicant must submit a new application for disability retirement, proceed again through the assessment process, and pay the costs associated with the second or subsequent assessment process.
(7-1-24)
PERSI may, by contract or otherwise, delegate all or part of these processes to third parties. Where such delegation has been made, the term “PERSI” includes those third parties. When a member requests the resumption of a disability retirement allowance pursuant to Section 59-1354A, Idaho Code, the board may delegate its authority under Section 59-1354A, Idaho Code, to a third party. Where such delegation has been made, the term “Board” includes those third parties.
(7-1-24)
Disability retirees are subject to reassessment of their disability at any time to determine whether they continue to be disabled under the standard in Section 59-1302(12), Idaho Code. However, pursuant to Section 59-1302(12)(b), Idaho Code, after two (2) years of continuous disability retirement, a disability retiree is not required to undergo medical examinations more often than every twelve (12) months. Disability retirees who are notified that they have been selected for reassessment are under the same obligation as applicants to supply information.
(7-1-24)
Attorney’s fees and costs incurred by an applicant in his efforts to obtain disability retirement are the sole responsibility of the applicant and shall not be paid by PERSI except for fees related to judicial review for which applicant is found to be entitled under applicable law.
(7-1-24)
Applicant must demonstrate that, on or before applicant’s last day of employment, he was disabled under the disability standard. The last day of employment is the last day applicant earned compensation, including annual leave and sick leave. When a member requests the resumption of a disability retirement allowance pursuant to Section 59-1354A, Idaho Code, the member must demonstrate that he could not successfully return to work because of the same disability on which his disability retirement was based.
(7-1-24)
In applying the disability standard in Section 59-1302(12), Idaho Code, substantially all avenues of employment are reasonably closed if the applicant is permanently prevented, due to bodily injury or disease, from performing every substantial and material duty of any occupation for which the applicant is reasonably qualified by education, training or experience.
(7-1-24)
The inability of the applicant to secure employment in and around the area where the applicant resides is not considered in determining whether or not the applicant is disabled. If the applicant is able to perform every substantial and material duty of any jobs existing in the economy for which the applicant is reasonably qualified by education, training or experience, the applicant will not be considered disabled regardless of other factors that might affect the applicant’s ability to actually secure employment, such as employer decisions and practices or the fact that there are no open positions or that the applicant is not selected for those positions. (7-1-24)
The commencement and duration of payment of disability benefits is governed by Section 59-1354, Idaho Code. For purposes of Section 59-1354(1)(b), Idaho Code, a member “becomes eligible” on the first of the month following the date selected by the member which follows the date on which the member is unable to and thereafter does not return to work on a regular basis for two (2) consecutive weeks but not later than the date on which the member ceases to make contributions. (7-1-24)
To determine the offset required by Section 59-1353, Idaho Code, the amount payable under the provisions of any worker’s compensation law which represents income benefits as defined in Section 72-102, Idaho Code, shall be converted to a monthly equivalent and deducted from the monthly retirement allowance. (7-1-24)
Unused sick leave entitlement provided for by either Section 33-1228, 33-2109A, or 67-5339, Idaho Code, shall not be considered salary or compensation in the application of Section 59-1354(1), Idaho Code. (7-1-24)
All the provisions of this subchapter, except Sections 375, 376, 406, 426, 427, 451 and 452, apply also to applications for disability retirement under the FRF plan to the extent they do not conflict with the provisions of Title 72, Chapter 14, Idaho Code. (7-1-24)
Rules 500 through 524
Repayment of a separation benefit must commence while the member is an employee, as defined in Section 59-1302(14), Idaho Code. For purposes of this rule the term employee includes employees accruing benefits under the Department of Employment Retirement Plan, the Firefighters’ Retirement Fund, and the Policeman’s Retirement Fund. (7-1-24)
Repayment of separation benefits as provided in Section 59-1360, Idaho Code, for employees whose most recent date of reemployment is after January 23, 1990, shall include payment of interest that shall accrue from the date each separation benefit was issued. Repayment of separation benefits as provided in Section 59-1360, Idaho Code, for employees whose most recent date of reemployment is before January 23, 1990, shall include payment of interest as determined by the law, statutes and rules in effect on the date of last reinstatement to employee status, except as provided in Section 502 of this subchapter. (7-1-24)
Any employee who was precluded from repaying a separation benefit due to the fact they failed to meet the requirements of Section 59-1360, Idaho Code, may reinstate their previous credited service by repaying the full
amount of their accumulated contributions provided such repayment includes payment of regular interest accruing from the date of each such separation benefit payment. (7-1-24)
01. Periodic and Lump-Sum Payments. Where an active member elects to repay a separation benefit to reinstate previous service as provided in Section 59-1360, Idaho Code, the member may request that repayment be made in periodic payments or in a lump-sum payment. No service will be reinstated until the full repayment has been made. (7-1-24)
02. Repayments Initiated on or After March 1, 2000. For all repayments initiated on or after March 1, 2000, except as provided in Section 501 of this subchapter, a repayment amount will be determined which shall be the sum of the separation benefit(s) plus regular interest from the date of the benefit payment(s) until the date of the first payment. The repayment amount will be amortized over the repayment period at the reinstatement rate in effect on the date of the first periodic payment. (7-1-24)
03. Repayments Initiated Before March 1, 2000. For all periodic repayments initiated before March 1, 2000, a repayment amount will be determined which shall be the sum of the separation benefit(s) plus regular interest from the date of the benefit payment(s) until the date of the first payment. The repayment amount will be amortized over the repayment period at four point seventy-five percent (4.75%) interest. This is a grandfathered rate based on the rate in effect December 31, 1999, and will apply so long as payments exceed interest charges on a calendar year basis. If payments fail to exceed interest charges in any calendar year, the grandfathered rate will be forfeited and replaced by the reinstatement rate beginning in January immediately after the year in which the failure occurs. For purposes of these rules, a repayment is initiated by signing an agreement and making a payment. (7-1-24)
04. Repayments Under Section 59-1331(2), Idaho Code. For (waiting period) payments made pursuant to Section 59-1331(2), Idaho Code, the repayment amount is the sum of contributions that would have been made plus regular interest from December 31, 1975 until the date of the first payment. The repayment amount will be amortized over the payment period at the reinstatement rate in effect on the date of the first periodic payment. (7-1-24)
To the extent permitted by federal law, and in accordance with any regulation or other guidance issued by the Internal Revenue Service, an active member may transfer funds from a 401(k), a 403(b), or an eligible 457(b) plan, in which they are currently eligible to participate, to the Base Plan for purposes of buying back service previously forfeited due to receiving a separation benefit, purchasing service related to eligible waiting periods, or purchasing service for periods of delinquent contributions. (7-1-24)
The PERSI Base Plan will accept participant rollover contributions and direct rollovers of distributions made after December 31, 2001, for purposes of reinstating or purchasing service as permitted under the plan, from the following plans. No after-tax contributions may be rolled over into the Base Plan. (7-1-24)
01. Qualified Plans. A qualified plan described in section 401(a) or 403(a) of the Internal Revenue Code (Code). (7-1-24)
02. Annuity Contracts. An annuity contract described in section 403(b) of the IRS Code. (7-1-24)
03. 457 Plans. An eligible plan under section 457(b) of the IRS Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. (7-1-24)
04. IRAs. Any portion of a distribution from an individual retirement account or annuity described in section 408(a) or 408(b) of the IRS Code that is eligible to be rolled over and would otherwise be includable in gross income. (7-1-24)
A direct rollover is a payment by the plan to an eligible retirement plan specified by the distributee. (7-1-24)
01. Rollover Election. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this part, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution that is equal to at least five hundred dollars ($500) paid directly to an eligible retirement plan specified by the distributee in a direct rollover. (7-1-24)
02. Eligible Rollover Distribution. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: (7-1-24)
a. Any distribution that is one (1) of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; (7-1-24)
b. Any distribution to the extent such distribution is required under section 401(a)(9) of the IRS Code; (7-1-24)
c. Any amount that is distributed on account of hardship; (7-1-24)
d. The portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and (7-1-24)
e. Any other distribution(s) that is reasonably expected to total less than two hundred dollars ($200) during a year. (7-1-24)
03. After-Tax Contributions. For purposes of the direct rollover provisions in Subsection 507.02, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includable in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in section 408(a) or (b) of the IRS Code, or to a qualified defined contribution plan described in section 401(a) or 403(a) of the IRS Code that agrees to separately account for the amounts so transferred, including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not so includable. (7-1-24)
04. Eligible Retirement Plan. An eligible retirement plan is an individual retirement account described in section 408(a) of the IRS Code, an individual retirement annuity described in section 408(b) of the IRS Code, a Roth IRA described in Section 408A of the IRS Code, an annuity plan described in section 403(a) of the IRS Code, an annuity contract described in section 403(b) of the IRS Code, an eligible plan under section 457(b) of the IRS Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan, or a qualified plan described in section 401(a) of the IRS Code, that accepts the distributee's eligible rollover distribution. (7-1-24)
05. Alternate Payees. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse, who is the alternate payee under a domestic retirement order, approved as provided in Sections 59-1319 and 1320, Idaho Code, are distributees with regard to the interest of the spouse or former spouse. (7-1-24)
01. Default Application of Federal Requirements. With respect to distributions under the Base Plan, and except as provided in Subsection 508.06, the Plan will apply the minimum distribution requirements of section 401(a)(9) of the IRS Code in accordance with a good faith interpretation of section 401(a)(9), notwithstanding any provision of the Base Plan to the contrary. (7-1-24)
02. Required Beginning Date. Except as otherwise provided in Subsections 508.04 through 508.08, distributions under the Base Plan shall begin not later than April 1 following the later of (a) the commencement year or (b) the year in which the member retires. For purposes of Section 508, the “commencement year” is the calendar year in which the member reaches the applicable age, as defined in Internal Revenue Code Section 401(a) as now in effect and thereafter amended. (7-1-24)
03. PERSI Selects Retirement Option. Any member required to take minimum distributions, as provided in this Section 508, and fails to complete and submit an approved retirement application and select either a regular or optional retirement allowance by April 1 following the later of (a) the commencement year or (b) the year in which the member retires shall be deemed to have made the following selection: (7-1-24)
a. If single, a regular retirement allowance and no other selection shall be required or permitted. (7-1-24)
b. If married, Option 1 and no other selection shall be required or permitted, unless proof is provided that spouse has no community property interest in the benefit. (7-1-24)
04. Lifetime Distributions. Distribution shall be made over the life of the participant or the lives of the participant and his beneficiary; or over a period certain not extending beyond the life expectancy of the member or the joint life and last survivor expectancy of the member and his beneficiary. (7-1-24)
05. Timing of Required Distributions. A required distribution shall be deemed to have been made during the commencement year if actually made by the following April 1, but such delayed distribution shall not change the amount of such distribution, and the distribution otherwise required during the subsequent calendar year shall be calculated as if the first distribution had been made on the last day of the commencement year. (7-1-24)
06. Adjustment of Required Distributions. Benefits paid prior to the commencement year shall reduce the aggregate amount subject to (but shall not otherwise negate) the minimum distribution requirements described herein. (7-1-24)
07. Benefits Deferred Beyond Service Retirement. The first payment of benefits of an inactive member following deferment beyond service retirement will be in a lump sum that includes payment for those months of service dating from the date of service retirement when a monthly retirement payment would have started through the current monthly payment. Subsequent payments will be for the monthly retirement allowance only. (7-1-24)
08. Death Benefits. All death benefits payable under the Base Plan will be distributed as soon as administratively practicable after request, but must in any event be distributed within fifteen (15) months of the member’s death, unless the identity of the beneficiary is not ascertainable. (7-1-24)
Notwithstanding any other provision of the Base Plan to the contrary that would otherwise limit the options of the beneficiary of a deceased member who is not the member’s spouse, the administrator shall, upon the request of such a beneficiary, transfer a lump sum distribution to the trustee of an individual account established under Section 408 of the IRS Code in accordance with the provisions of Section 402(e)(11) of the IRS Code. (7-1-24)
510. -- 524. (RESERVED)
Rules 525 through 649
Equitable treatment for all members can be achieved only if members whose career patterns covering the same time frame and who received identical annual salaries during each of the twelve-month periods of that time frame accrue the same monthly service retirement allowance. To achieve this equity for the member whose annual salary has been
paid on other than a twelve-month salary schedule during any contractual or like twelve-month period, the average monthly salary used for each one of those twelve-month periods will be determined from the total base period salary by using a divisor representing the months of membership service which would have been accumulated at that rate over a full base period. (7-1-24)
Upon application for a retirement benefit, any portion of compensation which represents payments in excess of and inconsistent with the usual compensation pattern, for example, but not limited to lump sum contract payouts, excess vacation paid but not taken, paid sick leave, or a clothing allowance. (7-1-24)
If the amount of a member's initial retirement allowance on the date of retirement would exceed the average salary during the member's highest thirty-six (36) consecutive calendar months of salary, then the member's initial retirement allowance will be limited to the greater of: the average salary during the highest thirty-six (36) consecutive calendar months of salary; or the initial retirement allowance based on credited service through April 1990. Optional retirement allowances will be computed after any limitation above has been applied. (7-1-24)
The Retirement Board shall not act on any application for retirement unless the member has previously been provided with notification of the regular retirement option and options one (1) and two (2) election available to the member including the value of the monthly allowance of each. The value of options three (3) and four (4) will be provided if the member so requests the value of the option and provides information required to calculate that option (such as but not limited to social security benefit estimates) which is not available to PERSI but that can be provided by the member. (7-1-24)
Except as provided in this rule, a member is required to complete and submit an approved retirement application and select either a regular or optional retirement allowance. The member's signature must be notarized. The application for retirement indicating the election made by the retiring member shall also be signed by the spouse certifying the spouse understands and consents to the election made by the member. The spouse's signature must be notarized. Until an application for retirement is filed, no benefit payment is required. Applications with retroactive retirement dates are entitled to lump sum payments and do not include interest. (7-1-24)
An active member separated from employment by one (1) state agency, political subdivision or government entity for whom he or she did normally work twenty (20) hours or more per week and who is age sixty-two (62) or older and eligible to retire but remains an elected or appointed official with a different state agency, political subdivision or government entity, may retire and continue in that elected or appointed position provided that position is one in which he or she does not normally work twenty (20) hours or more per week. The member shall receive retirement allowances under the conditions provided by Section 538. (7-1-24)
An active member serving as an elected or appointed official who does not normally work twenty (20) hours or more per week who is age sixty-two (62) or older and eligible to retire and who is not an eligible employee with another state agency, political subdivision or government entity pursuant to Section 101 may then retire and continue in that position. The member shall receive retirement allowances under the conditions provided by Section 538. (7-1-24)
01. Return to Service. A PERSI retired member employed in a position which involves service of normally twenty (20) hours or more per week for a period of five (5) or more consecutive months or longer will return to the status of an active member. Retirement benefits will suspend on reemployment and employee and employer contributions will resume to provide additional retirement credits. If a retired member is reemployed in a position which involves service of twenty (20) hours or more per week for a period of less than five (5) consecutive months, their monthly retirement benefits will continue to be paid. If the member's reemployment should equal or exceed the five (5) month period for any reason, the member will be required to repay the retirement benefits paid during the five (5) month period which they were reemployed and they will return to the status of an active member. Employee and employer contributions will be due for the five (5) consecutive month period. (7-1-24)
537. REEMPLOYMENT LESS THAN FIVE CONSECUTIVE MONTHS.
If the period of reemployment develops to be less than five (5) consecutive months, contributions will be refunded and retirement allowances will resume as of the date they were discontinued. (7-1-24)
538. REEMPLOYMENT -- WORKING LESS THAN TWENTY HOURS OR LESS THAN FIVE CONSECUTIVE MONTHS.
Monthly retirement allowances will continue to be paid to the PERSI retired member who returns to employment in a position where the member does not normally work twenty (20) hours or more per week or the reemployment is for a period which does not total five (5) consecutive months and the state agency, political subdivision or government entity so certifies. In such cases, employee and employer contributions are neither required nor acceptable and no new retirement credits can be earned. (7-1-24)
539. RETIRED MEMBER BECOMING AN ELECTED OR APPOINTED OFFICIAL.
A PERSI retired member who is subsequently elected or appointed by an employer to public office and who is not normally required to perform services of twenty (20) hours or more per week in that position may continue to receive retirement allowances in the status of a reemployed retired member under conditions outlined by Section 537. (7-1-24)
540. SEPARATION FROM EMPLOYMENT AFTER REEMPLOYMENT.
Upon subsequent separation from employment after reemployment, the member's original monthly retirement allowance will resume with appropriate cost-of-living adjustments plus the addition of a separate allowance computed with respect to salary and service credited during the reemployment period. (7-1-24)
541. EARLY RETIREMENT MEMBER -- REEMPLOYMENT.
A PERSI member who had been receiving an early retirement allowance and who returns to employment as an active member may refund all retirement benefits previously paid plus regular interest accrued from the date each monthly allowance had been paid, thereby negating the previous retirement status. The month of last contribution prior to the negated retirement and the month of initial contribution upon return to active membership shall be considered consecutive months of contributions in the determination of an appropriate salary base period upon subsequent retirement. (7-1-24)
542. BENEFIT ENHANCEMENT -- QUALIFICATION.
To qualify for a benefit enhancement, a person must remain an active member through the day following the effective date of the enhancement. (7-1-24)
543. – 544. (RESERVED)
545. PRE-ERISA VESTING RULES.
01. Termination or Partial Termination. Upon the effective date of any termination or partial termination or upon a complete discontinuation of contributions: (7-1-24)
a. No persons who were not theretofore members shall be eligible to become members; (7-1-24) b. No further benefits shall accrue; and (7-1-24) c. The accrued benefits of all members not theretofore vested and not theretofore forfeited shall
immediately become fully vested.
(7-1-24)
Forfeitures will not be applied to increase the benefits any employee would otherwise receive under the Base Plan.
Whenever the amount of any Base Plan benefit is to be determined on the basis of actuarial assumptions, such assumptions will be specified in rule in a manner that precludes employer discretion.
The “maximum permissible benefit” is the defined benefit dollar limitation (adjusted where required, as provided in Subsection 549.01 and, if applicable, in Subsections 549.02 through 549.04 of these rules).
01. Less Than Ten Years of Service. If the participant has fewer than ten (10) years of participation in the plan, the defined benefit dollar limitation shall be multiplied by a fraction:
a. The numerator of which is the number of years (or part thereof) of participation in the plan; and
02. Benefit Begins at Age Sixty-Five. If the benefit of a participant begins after the participant attains age sixty-five (65), the defined benefit dollar limitation applicable to the participant at the later age is the annual benefit payable in the form of a straight life annuity beginning at the later age that is actuarially equivalent to the defined benefit dollar limitation applicable to the participant at age sixty-five (65) (adjusted under Subsection 549.01, if required). The actuarial equivalent of the defined benefit dollar limitation applicable at an age after age sixty-five (65) is determined as set forth in IRS regulation under section 415(b)(2) of the IRS Code.
03. Transition. Benefit increases resulting from the increase in the limitations of section 415(b) of the IRS Code shall be provided to all current and former participants (with benefits limited by section 415(b)) who have an accrued benefit under the plan immediately prior to the effective date of this Section (other than an accrued benefit resulting from a benefit increase solely as a result of the increases in limitations under section 415(b)).
01. PERSI’s Responsibility. PERSI’s responsibility to a withdrawing political subdivision or governmental entity or its employees is limited to the vested accrued actuarial benefits of the system’s members upon the date of complete withdrawal.
02. Withdrawal Liability Calculations. On the occasion that a withdrawing political subdivision or governmental entity fails to pay, in full with accrued interest from date of withdrawal, the withdrawal liability calculated in accordance with Section 59-1326(7), Idaho Code, PERSI shall exhaust all efforts to collect the outstanding withdrawal liability as follows:
a. Collect the full withdrawal liability from withdrawing political subdivision or governmental entity at date of withdrawal. If full withdrawal liability is not paid, then;
b. Contract with withdrawing political subdivision or governmental entity, in accordance with section 59-1326(9) and file a lien on the assets of the withdrawing political subdivision or governmental entity. If scheduled payments are not timely made or assets are insufficient or unavailable, then;
c. PERSI will pursue collection efforts against the authorizing state agency, political subdivision or governmental entity that caused the withdrawing political subdivision or governmental entity to be formed. If these collection efforts are ineffective, then;
d. PERSI will cause an actuarial study to be performed for the withdrawing political subdivision or governmental entity and its employees to determine the actuarial value of the accrued benefits at time of withdrawal and will reduce an employee’s benefit to match funded status. (7-1-24)
For those members who accrue sick leave based upon each month of service, the rate of pay for purposes of computing the monetary value of a retired member’s unused sick leave as outlined in Sections 59-1365, 67-5333, and 33-2109A, Idaho Code, shall be the base hourly rate of compensation reported by the employer during the month of separation from employment prior to retirement, not including any temporary increases, bonuses, or payoffs. For those members employed on a contract basis under Section 33-1228, Idaho Code, the rate of pay for purposes of computing the monetary value of a retiring member’s unused sick leave based upon each month of service shall be determined at a daily rate by dividing the annual contract amount by the required days of work. No temporary increases, bonuses or payoffs shall be included in the contract amount. Where the daily rate is affected by changes in the work week such as adoption of a four (4) day work week or similar events, adjustments shall be made to convert the daily rate to maintain equity within the pool. No other forms of leave may be converted to sick leave or otherwise considered in computing the value of unused sick leave. (7-1-24)
The sick leave pools shall be funded by employer contributions as follows: (7-1-24)
01. State Agencies and Junior College Districts. All employer groups participating in the pools established by Sections 33-2109A and 67-5333, Idaho Code, shall contribute point sixty-five percent (.65%) of employee covered payroll. (7-1-24)
02. Schools. All employer groups participating in the pool established by Section 33-1228, Idaho Code, shall contribute the percentage of employee covered payroll based on the number of days of paid sick leave permitted during the contract year for certified teachers as set forth in the following table:
| Beginning: | July 1, 2006 |
|---|---|
| 9-10 days | 1.16% |
| 11-14 days | 1.26% |
| More than 14 days | Individual rate to be set by the Retirement Board based on current cost and actuarial data and reviewed annually |
Where a four (4) day work week or similar policies have been adopted, adjustments shall be made to convert the number of days of paid sick leave to the contribution level necessary to maintain equity within the pool. (7-1-24)
03. Subdivisions. All political subdivision or government entity groups participating in the pool established by Section 59-1365, Idaho Code, shall make contributions as provided in Section 578. (7-1-24)
The health, accident, and life insurance programs maintained by state agencies, political subdivisions or government entities as outlined in Sections 59-1365, 33-1228, and 33-2109A, Idaho Code, are limited to plans where the policy holder is the state agency, political subdivision or government entity or a consortium of state agencies, political subdivisions or government entities. Insurance programs outlined in Section 67-5333, Idaho Code, shall be maintained by the state agency, political subdivision or government entity. The board may require plans to sign an agreement before participating. (7-1-24)
Upon certification by the state agency, political subdivision or government entity and the insurance carrier that a plan qualifies under Section 553 of this subchapter, the board may pay the monthly premiums for a retired member using unused sick leave account funds as prescribed by Idaho Code. (7-1-24)
01. Adjustments. Coverage and premium changes or adjustments must be submitted to PERSI no less
than thirty (30) days prior to their effective date unless PERSI has previously agreed in writing to a shorter period.
02. Duration of Payments. Premium payments will continue to be made from the unused sick leave account until credits are insufficient to make a premium payment, or until the retiree’s death, whichever first occurs.
Unused sick leave benefits are credited only to employees who are eligible to retire at the time they separate from the state agency, political subdivision or government entity. When an employee separates from service and does not immediately retire, unused sick leave benefits are credited to the member but not available for use unless the member actually retires without intervening employment resulting in PERSI participation. The existence of available unused sick leave credits does not necessarily mean they are usable. A member must also be eligible to participate in the retiree plan offered by the state agency, political subdivision or government entity from which the member retired. Except for school district employees transferring from one (1) district to another, unused sick leave credits may not be transferred from one (1) state agency, political subdivision or government entity to another. If a member negates their retirement under Section 541 and returns to work for a new PERSI state agency, political subdivision or government entity, unused sick leave credits are also negated and eligibility for unused sick leave credits must be reestablished with the new state agency, political subdivision or government entity.
All state agencies, political subdivisions or government entities participating in any PERSI administered sick leave pool are prohibited from offering or permitting any employee to convert unused sick leave to cash, other forms of leave, or any other benefit, even if the employee is not eligible to receive credits. Failure to comply with this prohibition will result in the state agencies, political subdivisions or government entities inability to participate in PERSI administered unused sick leave pools.
Any PERSI state agency, political subdivision or government entity meeting the following requirements may elect to participate in the unused sick leave pool authorized by Section 59-1365, Idaho Code:
01. No Current Plan. The state agency, political subdivision or government entity does not participate in any other statutorily created plan that offers benefits for unused sick leave, including but not limited to, those plans created under Sections 33-1228, 33-2109, and 67-5333, Idaho Code.
02. All Inclusive Participation. All of a participating state agencies, political subdivisions or government entities employees who are PERSI members and who accrue sick leave must be participants in the plan, except that state agencies, political subdivisions or government entities may exclude certain distinctive classes of employees for legitimate business reasons. For example, a city could exclude employees covered by a collective bargaining agreement, or a county may choose to exclude elected officials.
03. No Other Options for Unused Sick Leave. No employee may be given any option to receive benefits from unused sick leave other than through this plan. For example, no employee, other than those properly excluded under Subsection 576.02, may be given the option of exchanging sick leave for cash or other forms of payment or leave.
04. Fixed Annual Accrual of Sick Leave. State agency, political subdivision or government entity must comply with a policy that offers a fixed amount of sick leave annually that is applicable to all employees or employee groups. A “personal leave” option that fails to distinguish between sick, vacation, or other forms of leave is not permitted.
05. Medicare Eligible Retirees. State agencies, political subdivisions or government entities plan must provide coverage to all retired employees eligible for unused sick leave credits, including retirees that become Medicare eligible.
06. Annual Application. State agency, political subdivision or government entity must annually update and submit an application for participation in the Subdivision Unused Sick Leave Pool on the form prescribed by PERSI. (7-1-24)
Upon separation from employment by retirement, in accordance with Chapter 13, Title 59, Idaho Code, every employee of a participating state agency, political subdivision or government entity shall, upon payment by the state agency, political subdivision or government entity under Section 578, receive a credit for unused sick leave in the same manner and under the same terms as provided in Section 67-5333(1), Idaho Code. (7-1-24)
Participating state agencies, political subdivisions or government entities shall, within ten (10) days of retiree’s last day in pay status, pay to PERSI a sum equal to the retiree’s unused sick leave credit, together with any administrative fees the board may require. Investment earnings on funds paid into this pool will remain in the pool, together with any reversions due to the death of a retiree, and may be used by the board to pay some or all administrative costs. (7-1-24)
Any state agency, political subdivision or government entity failing to meet the requirements of participation provided by Section 576 shall be terminated from participation in the Subdivision Pool. Any state agency, political subdivision or government entity failing to meet the funding requirements provided by Section 578 shall be terminated from participation in the Subdivision Pool, provided however, a state agency, political subdivision or government entity may submit a detailed explanation for its failure to meet the funding requirements as required in Section 578 and subject to PERSI approval. State agencies, political subdivisions or government entities that have withdrawn or have been terminated shall not be allowed to rejoin. (7-1-24)
Notwithstanding Sections 525 and 526 of this subchapter, the retirement allowances of firefighter members, as defined by Section 59-1391(b), Idaho Code, shall be determined pursuant to the provisions of Chapter 14, Title 72, Idaho Code. (7-1-24)
A paid firefighter retired under the provisions of Chapter 14, Title 72, (FRF), Idaho Code, who returns to employment as a paid firefighter with the same fire department from which retired shall be considered reemployed in the manner provided for PERSI members by Section 59-1356(1), Idaho Code. Retirement benefits shall then terminate and contributions shall again commence under conditions specified prior to retirement. The terminated benefit shall resume upon subsequent retirement with adjustments made in the manner prescribed by Section 59-1356(1), Idaho Code, as they would apply to the member’s retirement benefit entitlement computed under the provisions of Chapter 14, Title 72, Idaho Code. (7-1-24)
No member may purchase more than forty-eight (48) months of membership service, whether purchased under Section 59-1362, or 59-1363, Idaho Code, or a combination thereof. In all cases, the cost of purchasing service shall be the full actuarial costs, as determined by the board, of providing additional benefits resulting from the purchased service. Service may only be purchased at the time of retirement. In no event can a member revoke a purchase of service after payment has been made. (7-1-24)
Within ninety (90) days before a member’s effective date of retirement, the member may request the cost of service to be purchased. Costs provided for purchased service are valid only for the effective date requested. Purchased service will be calculated into the member’s benefit only to the extent that it is paid by the effective date. In no event shall service be credited for which payment has not been made. Service may be purchased with after-tax dollars or with eligible rollover distributions. The member’s service class at the time of purchase determines the class of service that
may be purchased.
(7-1-24)
If a member purchases service and thereafter revokes their application for retirement or negates their retirement as provided in Rule 541, the contributions made to purchase the service shall remain in the system until a distributable event occurs. If the distributable event results in payment of a monthly retirement benefit or an optional death benefit, the purchase price of the service previously purchased will be recalculated based on factors existing on the date the new benefit becomes effective. If, based on the new factors, the purchase price is higher than previously determined, the number of months purchased will be reduced to reflect the higher cost unless the member elects to pay the difference. If the purchase price is lower, the difference will be paid to the member as a lump-sum payment within sixty (60) days after the date of retirement unless the member elects to convert the difference into additional months and can do so without exceeding the forty-eight (48) month limit, the IRS limit referenced in Subsection 705.05, or any other statutory limitation, including the limitation in Section 59-1342(6), Idaho Code.
(7-1-24)
Contributions made for purposes of purchasing service, and interest earnings thereon, are not considered for purposes of determining death benefits under Section 59-1361(3), Idaho Code, and distributions under Section 59-1309(5), Idaho Code. When determining death benefits under Section 59-1361(3), Idaho Code, first calculate two hundred percent (200%) of accumulated contributions, excluding contributions and interest related to purchased service, then add member contributions and interest related to purchased service. Member contributions and interest will also be included in any separation benefit. In no event shall employer contributions for purchased service be included in any separation benefit or lump-sum death benefit.
(7-1-24)
State agency, political subdivision or government entity participation must be in the form of lump-sum payments at the time of retirement. In the event a state agency, political subdivision or government entity makes a contribution on behalf of a member and a distribution other than periodic payments occurs prior to the actual retirement effective date, the state agency, political subdivision or government entity may claim a credit against future contributions equal to the amount of the contribution. State agency, political subdivision or government entity contributions must be accompanied by or preceded by a written statement endorsed by the governing body or officer of the state agency, political subdivision or government entity verifying that the participation is properly authorized and that the state agency, political subdivision or government entity indemnifies PERSI against any loss resulting from failure of the state agency, political subdivision or government entity, or any person acting on its behalf, to act within its authority.
(7-1-24)
The Internal Revenue Code imposes limits on the amount of retirement benefits that can be paid to a retiree under a defined benefit plan. Benefits acquired through purchase of service are subject to these limits for some purposes. In no event can a member purchase service that would result in the member exceeding the limits imposed in Section 415(n)(1)(A) of the IRS Code. In addition, a member's initial retirement benefit, including purchased service, continues to be subject to the limitation in Section 59-1342(6), Idaho Code.
(7-1-24)
Rules 650 through 755
The existence of extraordinary gains triggers the possibility that allocations will be made as provided in Section 59-1309, Idaho Code. However, the existence of extraordinary gains does not obligate the retirement board to make an allocation. The Board may choose not to allocate extraordinary gains, or it may choose to allocate all or part of the extraordinary gains. Extraordinary gains exist when, at the close of the fiscal year, the value of plan assets exceeds plan liabilities as determined by the actuary, plus a sum necessary to absorb a one (1) standard deviation market event without increasing contribution rates, as determined by the Board. The amount of extraordinary gains available for possible distribution equals the amount by which the assets exceed the sum of the liabilities and the one standard deviation.
(7-1-24)
651. VALUE OF PLAN ASSETS.
This is the total assets held in the PERSI base plan, as reported in the actuarial valuation at the end of the fiscal year. (7-1-24)
652. PLAN LIABILITIES.
This is the actuarial liability of the PERSI base plan, including but not limited to, the cost of the proposed COLA to be effective in March following the close of the fiscal year, the cost of any benefit enhancements to the base plan approved by the legislature, and the cost of actuarial gains and losses, as reported in the actuarial valuation for the fiscal year. (7-1-24)
653. ONE STANDARD DEVIATION.
This is the amount of reserve necessary to absorb normal market fluctuations and is a function of the risk associated with investment holdings and strategies, and will be determined by the Board based on those factors. (7-1-24)
654. BOARD DISCRETION.
The Board retains full discretion in determining whether to allocate extraordinary gains when they exist. Because of the broad range of factors that might be relevant to such a determination, and to assure that the Board will not be limited in exercising its discretion, these rules do not attempt to identify any of the factors that might be considered in the Board's fiduciary capacity. When extraordinary gains exist, the Board will decide whether they will be allocated no later than the first day of December following the end of the fiscal year. Such decision shall be in writing and shall constitute an amendment to the plan document for purposes of the Internal Revenue Code of 1986, as amended, or any successor thereto. In the absence of any such decision, the allocation for that year shall be zero (0.00). (7-1-24)
655. -- 674. (RESERVED)
675. ALLOCATION BETWEEN GROUPS.
If extraordinary gains exist, and the Board determines that all or part of such gains should be allocated, an allocation will be made among the three (3) groups identified by Section 59-1309, Idaho Code. The three (3) groups and allocations are: (7-1-24)
a. Active PERSI members - 38 percent (38%); (7-1-24) b. PERSI retirees - twelve percent (12%); and (7-1-24) c. PERSI employers - fifty percent (50%) (7-1-24)
676. -- 699. (RESERVED)
700. ACTIVE MEMBER ALLOCATION.
After the amount to be allocated to the active member group has been determined, it shall be allocated among the members of the group. The active member allocation determines each member's initial share before considering any applicable individual limits. Each member's initial share shall be determined by dividing that member's accumulated contributions in the base plan at the close of the fiscal year by the total accumulated contributions in the base plan of all members of the group at the close of the fiscal year, multiplied by the amount allocated to the active member group. In no event shall a member's initial share, before considering individual limits, exceed the maximum annual contribution limit under Section 415(c) of the IRS Code applicable for the limitation year. (7-1-24)
701. MINIMUM ALLOCATION AMOUNT.
Due to the costs associated with maintaining individual choice accounts, no allocation shall be made to any member whose allocation share does not exceed thirty-eight dollars ($38) after considering individual limits, unless the member had a PERSI choice account on the last day of the fiscal year and has not withdrawn funds before the allocation date. (7-1-24)
702. ACTIVE MEMBER.
A member participates in the active member allocation only if such member is active and has at least twelve (12) months of accrued membership service on the last day of the fiscal year. For purposes of allocating extraordinary gains, active members also include: (7-1-24)
a. Seasonal employees who have a pattern of employment that includes at least six (6) months of membership service in each of the preceding three (3) consecutive years; and (7-1-24)
b. Employees who are on leave of absence on the last day of the fiscal year and either: (7-1-24)
i. Return to active service for at least thirty (30) days before the December 31st immediately following the end of the fiscal year; or (7-1-24)
ii. Are entitled to benefits under the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA). (7-1-24)
For purposes of allocating extraordinary gains within the active member group, accumulated contributions do not include contributions or interest related to the purchase of permissive service credits or contributions or interest in the Choice Plan or accounts. (7-1-24)
After each member's initial share has been determined, it will be transferred to an individual account as permitted under Section 414(k) of the IRS Code, subject to individual limits imposed by the Internal Revenue Code. The Board may transfer allocations anytime after necessary compensation data is received and processed by the Board. (7-1-24)
In no event shall a member's final allocation exceed the limits imposed by Section 415(c) of the IRS Code, based on compensation earned during the calendar year that included the end of the fiscal year. (7-1-24)
When a member is included in the active member pool but retires prior to the transfer of allocations, the member's allocation will be made as a one-time payment directly to the member rather than a transfer to an individual account. Such allocations will not be limited by Section 705 but will be subject to the limitations of Section 729. (7-1-24)
When a member is included in the active member pool but terminates prior to the transfer of allocations, the allocation will be made to the member's individual account if the member has not withdrawn contributions from the Base account prior to the date of transfer of the allocation. No member who has withdrawn contributions from the Base account prior to the transfer of the allocation is eligible to receive an allocation. (7-1-24)
When a member would have been included in the active member allocation but dies prior to the transfer of allocations, no allocation shall be made to the member, beneficiary or estate except that an optional death benefit recipient will receive the active member's allocation as limited by Section 729. (7-1-24)
Gain sharing allocations transferred to individual Choice Accounts have no effect on an individual's Base Plan benefit. Gain sharing allocations, and the earnings thereon, will be accounted for separately from other Choice Plan contributions but will be treated as one plan for purposes of reporting, investing, distributions, and fees to the extent they are applicable. Related provisions of the Plan adopted by the Board to facilitate voluntary and employer contributions are applicable to gain sharing allocations to the extent not inconsistent with these rules and Sections 59-1308 and 59-1309, Idaho Code. However, no loans or hardship withdrawals may be taken against gain sharing account balances. (7-1-24)
After the amount to be allocated to the retiree group has been determined, it shall be allocated among the members of the group. The retiree allocation determines each member's share before considering any applicable individual limits. Each member's initial share shall be determined by dividing that retiree's monthly benefit at the close of the fiscal
year by the total monthly benefits payable to all members of the group at the close of the fiscal year, multiplied by the amount allocated to the retiree group. (7-1-24)
For purposes of allocating extraordinary gains, a member must be a retiree as defined in this subchapter. (7-1-24)
This is the monthly benefit for the last month of the fiscal year but does not include benefits related to other months that may also have been paid during the last month of the fiscal year. In no event shall a retiree’s share be determined based on more than the retiree’s annual benefit, not including any gain sharing allocations, divided by twelve (12). (7-1-24)
After each retiree’s initial share has been determined, it will be paid no later than February 1 following the close of the fiscal year directly to the retiree either together with the retiree’s monthly benefit or separately, subject to individual limits imposed by the Internal Revenue Code. (7-1-24)
Prior to allocation, a retiree’s initial share shall be further limited as necessary to comply with the limits of Section 415(b) of the IRS Code. (7-1-24)
When a retiree is included in the retiree allocation but dies prior to the transfer of allocations, no allocation shall be made unless benefit payments are continuing to be made to a contingent annuitant. (7-1-24)
When a retiree is included in the retiree allocation but becomes reemployed as defined in Section 59-1356, Idaho Code, prior to the date of distribution, the retiree allocation shall be made in the form of an active member allocation, and shall be subject to active member limitations. (7-1-24)
Gain sharing allocations received by a retiree are not included in the amounts required to be repaid when negating retirement under Section 541. (7-1-24)
After the amount to be allocated to the employer group has been determined, it shall be allocated among the members of the group. Each employer’s share shall be determined by dividing that employer’s contribution liability for the fiscal year by the total contribution liability for all members of the group for the fiscal year, multiplied by the amount allocated to the employer group. (7-1-24)
Participation in the employer pool is limited to those entities defined as an employer in this subchapter. (7-1-24)
This includes only employer contributions that are accrued during the fiscal year and required to be paid by Section 59-1322, Idaho Code, unreduced by gain sharing credits. It does not include contributions made to fund sick leave pools, to pay costs of other plans such as the Firefighters Retirement Fund, or to contributions required by Sections 33-107A and 33-107B, Idaho Code. Only adjustments related to fiscal year contributions will be considered. (7-1-24)
After each employer’s share has been determined, it will be credited against the employer’s future contribution invoices. The credits shall be applied only to offset future employee and employer contributions required to be remitted by Section 59-1325(1), Idaho Code, until the credit is exhausted. An employer may elect to use the credits solely against employer contributions to the extent that no carry-over credits (as described in Section 754) result. (7-1-24)
Should the credit exceed the employer’s contribution invoices for the succeeding twelve (12) month period, any remaining credits will carry over to the following year together with an additional credit representing an interest payment. The interest credit shall equal the balance of remaining credits multiplied by a ratio representing the regular rate of interest. This process shall be repeated annually until all credits have been used. (7-1-24)
When an employer is included in the employer pool but withdraws from the system as provided in Section 59-1326, Idaho Code, prior to allocation of credits, the employer shall not be entitled to receive any credits. When an employer is entitled to carry-over credits but withdraws prior to using all its credits, it shall not be entitled to additional credits based on interest payments. (7-1-24)
756. -- 999. (RESERVED)