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H0543

Idaho Public Employee Retirement System Supplemental Benefit Plan Changes

Last scannedAug 24, 2026, 7:59 AM

In one sentence

This law updates rules for a voluntary retirement savings plan that allows Idaho public employees to make pre-tax and Roth contributions, manage investment earnings, and handle account distributions.

Revises state code regarding qualified pre-tax and certain qualified Roth contributions and their investment earnings in supplemental benefit plans.
Requires employers to forward authorized payroll deductions to the retirement board by the fifth working day after each payroll.
Allows the retirement board to determine investment options, which may include parts of the public employee retirement fund or private vendor options.
States that voluntary contributions count toward pension benefits but are not included in income tax withholding calculations.
Requires employers to cover costs if they fail to properly withhold, transfer, limit, or report contributions.

The retirement board decides on contribution limits, administrative costs (paid from interest or assessments), and specific investment options.
Rules for splitting accounts during divorce must be separate from standard domestic retirement orders and may depend on future rules or plan documents.

Plain language

Supplemental Benefit Plan: A voluntary savings account for active members to hold extraordinary gains and additional contributions.
Pre-tax Contributions: Money put into the plan before income taxes are taken out of a paycheck, compliant with federal tax-deferred rules.
Roth Contributions: After-tax money contributed to the plan where investment earnings follow specific federal compliance requirements.

Official record

Source attached

PERSI, contributions

Official activity