 DURING THE PAST FISCAL YEAR
In January 2024, Director Don Drum retired from PERSI after sixteen years with the agency. The Board selected Deputy Director Michael Hampton to serve as PERSI’s new Executive Director. Mr. Alex Simpson, PERSI’s Financial Executive Officer, was chosen to serve as Deputy Director.
This past summer and fall, Director Hampton met with hundreds of PERSI employers around the state.
During those meetings, he discussed several PERSI matters, including contribution rates, fiscal year-end numbers, passed legislation, and the fund’s health. He enjoyed meeting with and receiving valuable feedback from all who attended.
NEW BOARD TRUSTEE
In September 2024, Governor Brad Little appointed Josh Whitworth, Executive Director of the Idaho State Board of Education, to supersede Trustee Joy Fisher on the PERSI Retirement Board. Trustee Whitworth has over a decade of public service experience in Idaho.
FUND STATUS
PERSI’s fiscal year 2024 ended with a funded ratio of 85.4% and an amortization of 10.8 years. Had the amortization been more than twenty-five years, the Board would have been required by law to propose contribution rate increases for employers and employees, per Idaho Statute 59-1322.
PERSI’s sustainability is the Board’s priority. Adjustments made ensure retirement benefits will be here for you, other PERSI members, and Idaho’s future public employees.
CONTRIBUTION RATES
In October 2022, the Board proposed a series of three contribution rate increases to comply with the statutory requirement to amortize the unfunded actuarial liability in less than 25 years. These three contribution rate increases were proposed to be implemented July 1, 2024, July 1, 2025, and July 1, 2026. The first of these proposed contribution rate increases (1.25%) went into effect July 1, 2024.
Contribution rates are reviewed annually by PERSI’s Board. While the fund has had a second consecutive year of recovery after the 2022 market decline, due to market volatility the Board was unable to eliminate future proposed contribution rate increases, but was able to delay the July 1, 2025 and July 1, 2026 contribution rate increases by one year.
POSTRETIREMENT ALLOWANCE ADJUSTMENT (PAA) – IDAHO STATUTE 59-1355
Annually the Retirement Board must review the automatic PAA as well as provide recommendations to the legislature for any discretionary or retroactive PAAs. At the December meeting, the Board discussed the annual PAA for retirees. The Board confirmed that an automatic PAA of one percent (1%) will go into effect on March 1, 2025, based upon the August to August consumer price index – urban (CPI-U).
Per Idaho Statute 59-1355, retirees in their first year of retirement will receive a proration of the 1% PAA based on the number of months they have been retired.
In addition, the Board is proposing an additional 0.3% retro-PAA from fiscal year 2020, subject to legislative approval. If approved, the retro-PAA will also go into effect on March 1, 2025.
DOES THE WINDFALL ELIMINATION PROVISION (WEP) IMPACT YOU?
PERSI has received a few questions from members about the Windfall Elimination Provision and if it will impact them.
The Windfall Elimination Provision is a formula used to adjust Social Security benefits for people who receive “non-covered pensions” and qualify for Social Security benefits based on other Social Security covered earnings.
A non-covered pension is a pension paid by an employer that does not withhold Social Security taxes from your salary, typically state and local governments or non-US employers.
Since most PERSI members pay into Social Security, this does not impact most PERSI members. For additional information, go to the Social Security Administration’s website at www.ssa.gov.
myPERSI
PERSI’s member portal, myPERSI, received multiple new features and enhancements this year, including:
- Optimizations for all operating systems (including mobile devices).
- Required security features like multi-factor authentication and enhanced ID verification.
- An improved user experience.
- Integrated messaging for faster, more-personalized communication with representatives.
Through myPERSI, important documents like your 1099-R tax forms are easy to locate and ready to download as soon as they are made available (typically at the end of each January).
If you have not claimed your myPERSI member account yet, go to www.persi.idaho.gov. If you have questions, call the PERSI Answer Center at 208-334-3365 or 1-800-451-8228.
PROTECT YOUR MEMBER INFORMATION
PERSI is beginning to hear more and more about fraudsters offering retirement services and/or advice every year.
Please know that solicited retirement services and/or financial counseling are not authorized or affiliated with PERSI. PERSI does not sell retirement services, advice and/or financial counseling.
Protect your personal information by not sharing or discussing your personally identifiable information, including your PERSI membership and benefit information, with others.
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