PERSI Credited Service :. Public Employee Retirement System of Idaho

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Credited Service

Your benefits are based on the law in effect at the time of your termination from employment; thus, some information in this brochure may not apply in specific cases. This publication is meant to explain PERSI law as simply and accurately as possible. If there is any discrepancy between this publication and the law, the provisions of the law will prevail.

What is PERSI?
The Public Employee Retirement System of Idaho (PERSI) is a "defined benefit retirement plan" designed to provide secure pension benefits for employees who choose careers in public service. Because PERSI is a defined benefit plan, the lifetime allowance you receive at retirement is not directly dependent on the amount of money you contribute to the system. PERSI is a qualified tax-deferred plan under IRS Code Section 401(a).

PERSI Membership
PERSI membership is made up of public employers throughout the state and their employees. By law, the State of Idaho and school districts are PERSI members. Political subdivisions, such as city and county governments, water and sewer districts, public hospitals, libraries and others have also elected to join the retirement system. PERSI has more than 700 employer members, over 64,000 active employee members, nearly 22,000 inactive members and more than 28,000 retired members.

Any eligible employee working for an employer member of PERSI automatically becomes an active member of the plan. You are "eligible" for PERSI membership if you normally work 20 hours or more per week, or are a teacher who works half-time or more, AND your employment is for five or more consecutive months, OR you are an elected or appointed official receiving salary and hold your office for five or more consecutive months.

You are not eligible to join PERSI if your employment period does not total five consecutive months. You are also not eligible if you are:

providing service to a PERSI employer as an independent contractor,
provided employment in a public program benefiting yourself,
an inmate of a state institution,
a student at a state college or university, and employed at the same school when the employment depends on maintaining student status,
making contributions to the U.S. Civil Service Commission under the U.S. Civil Service System Retirement Act.

Special requirements for certain city employees: "Seasonal or casual" city employees "whose employment is dependent on weather and growing seasons" must have eight months of service to be eligible.

(Note: Faculty members and non-classified employees at Boise State University, Idaho State University, Lewis-Clark State College, University of Idaho or the office of the State Board of Education hired July 1, 1990 or later should contact PERSI's membership department regarding eligibility.)

Membership Categories
There are two types of PERSI membership: 1) General and 2) Police Officer and PERSI Firefighter (firefighters hired on or after October 1, 1980). Benefits and membership requirements for Firefighter's Retirement Fund firefighters (those hired before October 1, 1980), are explained in Title 72, Chapter 14, Idaho Code.

Credited Service
You accrue one month of membership service for each calendar month you work as an active member of PERSI. A calendar month is one in which you are employed 15 days or more. You may earn a maximum of 12 months of service credit for any calendar year. You cannot exceed one month of credit per month of service even if you are employed in more than one public job at the same time. You must be paid for at least 20 hours per week, or if you are a teacher on contract, you must work half time or more. Overtime does not earn additional credited service.

Your total credited service is one of the factors used to determine your pension benefit amount when you retire. This total includes membership service, prior service, eligible military service and disability service.

Membership Service
Eligible employment after July 1, 1965 is considered membership service.

Prior Service
PERSI began operations July 1, 1965. If, prior to that date, you worked for a governmental entity within Idaho, you may be eligible for prior service credit. The employment must have been for more than 20 hours per week for at least five calendar months during a year (15 days or more each month). Contributions are not required for prior service. Note: you must apply for prior service credit if you were NOT working for an employer when they joined PERSI.

Military Service
Military service is any active duty in the United States armed forces, including the national guard and reserves, which interrupts your membership service or which interrupted any prior service. Military service must begin within 90 days after you leave eligible public employment, and you must return to eligible PERSI employment within 90 days of release from active duty. It does not include any period of active duty which ends in dishonorable discharge, or any period in which you could have chosen to discontinue active duty. Military service may not exceed five years if it is at the convenience of the U.S. government, or four years if it is not at the convenience of the U.S. government. You do not have to pay contributions to get credit for eligible military service.

Disability Service
Disability service is the number of months between the date you become disabled and your normal service retirement age. The time is automatically credited to you when you are declared disabled. After adding disability service, total credited service may not exceed 360 months.

Changes in "Eligible" Employment since 1965
Employment prior to July 1, 1965 - Documented Idaho public employment normally in excess of 20 hours per week for at least five calendar months during a year.

Employment from July 1, 1965 through June 30, 1976 - Same requirements as above, AND the employer must have been participating in PERSI. Contributions were required. From July 1, 1965 through June 30, 1971, there was a 12-month waiting period before contributions were required. Eligible employment during the waiting period may now be credited if contributions for this time are paid to PERSI before retirement. School teachers who did not contribute to the Teacher's Retirement System between July 1, 1965 and July 1, 1967, or who withdrew their contributions for that period, cannot receive credit for employment during that two-year period.

Employment since July 1, 1976 - Same requirements as for the period from July 1, 1965, except that employment must be for at least five CONSECUTIVE months.

Employment since July 1, 1990 - Same requirements as for the period from July 1, 1976, except that hours worked must normally be 20 hours or more per week.

Contributions
Your employer will take a percentage of your gross salary from your paycheck every pay period, and will transfer that money, along with an employer contribution, to PERSI. The rate of your contribution is, by state law, a percentage of the employer contribution rate. The employer contribution rate is set by the Retirement Board based on system benefit levels, the number of members in the system, the age and average life expectancy of those members, and the system's funding level.

Currently, employees contribute 6.23% of pay to PERSI (police officer/PERSI firefighter members contribute 7.65%). Employers contribute an amount equal to 10.39% (10.73% police/firefighter) of your pay to the fund. Your employee contributions go into an "account" credited specifically to you. You earn interest on your account at a rate set by the Retirement Board. Contributions made by your employer are pooled in a common account for future retirement benefits.

If you leave public employment, whether or not you qualify for a pension, you may take a separation benefit consisting of your contributions plus interest. Contributions made by your employer are not refundable.

Service Credit Earned During Leaves

Medical Leave
If you are on authorized paid sick leave, the normal employee contributions are deducted from your salary and your employer pays their required contributions. You continue to earn service credit as long as you remain an eligible employee receiving at least half-pay. You must work, or be in payroll status, at least 15 days per calendar month to accrue one month of service credit. When you are on authorized unpaid sick leave (such as that for the federal Family Medical Leave Act which allows 12 weeks of unpaid leave for medical purposes), no service credit is earned, but your PERSI benefits are "preserved," meaning you will not lose any credits already earned.

Workers Compensation
As with medical leave, you earn service credit if, while drawing workers compensation benefits, you are receiving some salary and making contributions to PERSI. If you are out of pay status and are receiving only workers compensation benefits, you will not earn service credit.

Vacation Leave
If you are on authorized paid vacation leave, employee contributions are deducted from your salary and your employer pays their required contributions. You continue to earn service credit as long as you remain an eligible employee. You must work, or be in payroll status, at least 15 days per calendar month to accrue one month of service credit.

Personal Leave
No service credit is given for an educational or non-paid personal leave of absence, or for time off due to a strike.

Sabbaticals
For teachers or university faculty taking a sabbatical, service credit can only be earned for the leave if you receive at least one-half contract salary and continue contributions during the sabbatical. Be aware that if the sabbatical occurs during your "base period," it may affect your final average monthly salary.