Because the Public Employee Retirement System of Idaho (PERSI) Base Plan is a defined benefit plan, the lifetime allowance you receive at retirement from this plan is not dependent on the amount of money you contribute to PERSI. The Base Plan is a qualified tax-deferred plan under IRS Code Section 401(a).
PERSI is designed to provide pension benefits to career public employees. The longer you work for PERSI employers, the greater your retirement benefit will be. Although you may not plan on being a public employee your whole career, if you belong to PERSI for as little as five years you will receive a lifetime benefit at retirement. That five years does not need to be all at once or with one employer. Over 700 different employers across the state belong to PERSI. This retirement system is a tax-deferred program. Vesting is accomplished after five years of service for a regular retirement benefit and five years for disability retirement. Employees may make voluntary tax-deferred contributions to a 401(k) PERSI Choice Account, up to $20,500 annually ($27,000 if you are over 50).
Both the City and the employee contribute according to State law at the rate outlined below:
|Classification||Employer Contributions (Gross Salary)||Employee Contributions (Gross Salary)|
|Sworn Police Officers||12.28%||9.13%|