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Retirement and Savings
The State of Idaho offers many opportunities to prepare for your future:
The Public Employee Retirement System of Idaho (PERSI) offers a pension, a 401(k), and a variety of other valuable benefits to members.
- Eligibility
- Membership
- Retirement Benefits
- Gain Sharing
- Disability Retirement Benefits
- Death Benefits
- Portability of Funds
- Cost of Living Allowances (COLAs)
The PERSI Retirement Program is mandatory for all state employees working 20 or more hours per week for at least 5 consecutive months.
As a PERSI member you have 6.23% of your gross salary deducted, tax deferred, from your bi-weekly paycheck as contributions toward your retirement. The State contributes 10.39% for this purpose.
Some positions, due to nature of the work (i.e. Law Enforcement Officers, the Fish and Game Wardens, Correctional Officers), contribute 7.65% and the State contributes 10.73%. Because these positions contribute a higher percentage, their benefit structure is also higher.
Read your PERSI member handbook for more information.
PERSI is designed to provide pension benefits to public employees. PERSI has two retirement benefit programs: a Defined Benefit Base Plan, and a Defined Contribution Choice Plan 401(k).
Your PERSI Base Plan contributions are secure and protected by federal and state law. PERSI funds may only be used for the benefit of PERSI members. Once you are vested (generally after 5 years of service), your PERSI Base Plan lifetime benefits are guaranteed.
The Choice Plan 401(k) is open for enrollment to all active Base Plan members. Through convenient payroll deductions, you may save 1-100% of your gross income on a pre-tax deferral basis. This means you pay no federal or state income tax on the money until it is withdrawn. You are 100% vested to all money in your Choice Plan account.
For 2007, you may contribute up to $15,500 to the Choice Plan. After 2007, this amount will be adjusted annually in $500 increments. If you are at least age 50 during 2007, you may make additional "catch-up" contributions up to $5,000.
Although your Choice Plan account is intended for retirement, loans are permitted for any reason during employment. Under certain conditions, “hardship” withdrawals are also possible.
For detailed information about the Choice Plan 401(k), call toll-free 1-866-437-3774.
With gain sharing, PERSI will share excess earnings with members by depositing gain sharing payments into individual 401(k) Choice Plan accounts for all eligible active PERSI members. The funding level for the Choice Plan will be decided annually and will be based on PERSI earnings.
If your career is cut short because of a permanent disability, you may be eligible for a monthly disability benefit from your PERSI Base Plan if you meet certain eligibility requirements. Disability for retirement purposes is considered to be a total and permanent physical or mental impairment that prevents you from earning a livelihood. You cannot perform any work for compensation if you are determined to be disabled. Effective July 1, 2006, PERSI members applying for disability benefits have a limited period of time to file an application. Visit the PERSI Web site for more information.
When you die, PERSI offers valuable financial protection in the form of death benefits. If you die with 60 or more months of credited service while active or inactive, and you have named your spouse as your sole beneficiary, PERSI will offer your spouse the choice of a lump sum payment of two times your contributions plus interest, or a monthly allowance payable for his or her lifetime. If you named other beneficiaries to share the death benefit with your spouse, your beneficiaries may waive their right to a lump sum death payment which would allow your spouse to receive a monthly allowance for his or her lifetime. Regardless of your length of service, your beneficiary will receive the funds in your Choice Plan 401(k) account upon your death.
Your Base Plan contributions are always yours. If you leave PERSI-covered employment, you may withdraw your Base Plan money, plus any interest earned — although tax penalties and withholdings may apply, or you may roll over your money and interest to an Individual Retirement Account (IRA) or other qualified retirement plan.
If you leave one PERSI employer and keep your money in the system, and later go to work for any of the nearly 700 public employers covered by PERSI, you retain the service credit earned in your previous job. All service credit you earn while working for any PERSI employer is automatically combined in one account for you.
PERSI's Base Plan offers annual Cost of Living Allowances (COLAs) to all retirees so that your benefit will keep pace with inflation. Without COLAs, inflation would dramatically reduce the value of your benefit over the years. (For example, if you retired with a $1,000 a month benefit and received 3% COLAs for 10 years, after 10 years your benefit would be $1304.80, and would be keeping up with inflation.) The Choice Plan does not offer COLAs.
When you went to work for the State of Idaho, you automatically became a PERSI member. You do not need to complete an enrollment form. You will need to complete a Beneficiary Designation form, however. Enrollment in the PERSI Base Plan is automatic. If you want to participate in the Choice Plan 401(k), you must complete an enrollment form. Keep a copy of the completed forms for your own files, and forward the originals to PERSI along with a copy of your Social Security card.
For more information visit PERSI.
Nationwide Retirement Solutions (also known as PEBSCO or The 457 Plan) offers a deferred compensation program through Nationwide Investment Services Corporation. A deferred compensation program allows you to defer, or put aside, a portion of your earnings each pay period into a special account for retirement.
You pay no current federal or state income tax on the money you defer today. And you pay no current federal or state income tax on the money your account earns through the years. You will not be taxed for these contributions or the interest earned until they are withdrawn. This allows you to get more from your paycheck today by decreasing your taxes and increasing your retirement savings for tomorrow.
For more information contact your personnel/payroll representative or call Nationwide Investment Services Corporation at (208) 342-8600 or (800) 627-1583.
See your personnel/payroll representative for information on Savings Bonds.
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