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IdahoH 05432026 regular legislative sessionHouseWALLET

PERSI – Amends existing law to revise provisions regarding qualified pre-tax contributions and investment earnings and certain qualified Roth contributions and investment earnings.

Sponsored By: COMMERCE AND HUMAN RESOURCES COMMITTEE

Signed by Governor

PERSI

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

New supplemental retirement plans for public workers

Beginning July 1, 2026, Idaho sponsors new supplemental retirement plans for public workers. All active members can enroll, and accounts are set up to receive any extraordinary gains. The retirement board runs the plans, may set up separate trusts, and picks investment options. Employers may be required to participate, and a trustee holds and invests contributions; plan funds can pay investment and admin costs. These plans are in addition to your regular employer retirement benefits.

Payroll saving and tax rules for contributions

Beginning July 1, 2026, you can put pay into the supplemental plan by payroll deduction after you sign written permission. Your employer must send your contributions within five working days and coordinate all plans so legal limits are not exceeded. You can keep contributing to a preexisting plan that is used as a supplemental plan. Extra contributions still count as pay for pension calculations, but they are not subject to income tax withholding. Pre-tax and Roth contributions follow federal rules (401(a), 401(k), and 402A).

Payout choices, court splits, and transfers

Beginning July 1, 2026, the board may offer payout options other than a lump sum, but federal distribution limits still apply. A court-ordered split of your supplemental account for a spouse or ex-spouse must be in a separate order. If you become inactive, the board can require your account to be transferred. Plan officials receive legal defense and indemnity, and related lawsuits are heard in Ada County.

Sponsors & Cosponsors

Sponsor

  • COMMERCE AND HUMAN RESOURCES COMMITTEE

    Affiliation unavailable

Cosponsors

  • Treg A. Bernt

    Republican • Senate

  • Ben G. Fuhriman

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 102 • No: 0

House vote • 3/12/2026

House Floor Vote

Yes: 35 • No: 0

House vote • 2/20/2026

House Floor Vote

Yes: 67 • No: 0

Actions Timeline

  1. Reported Signed by Governor on March 18, 2026 Session Law Chapter 49 Effective: 07/01/2026

    3/18/2026

  2. Returned Signed by the President; Ordered Transmitted to Governor

    3/17/2026House

  3. Reported Enrolled; Signed by Speaker; Transmitted to Senate

    3/16/2026House

  4. Returned from Senate Passed; to JRA for Enrolling

    3/13/2026House

  5. Read third time in full – PASSED - 35-0-0

    3/12/2026House

  6. Read second time; filed for Third Reading

    3/5/2026House

  7. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    3/4/2026House

  8. Received from the House passed; filed for first reading

    2/23/2026Senate

  9. Read Third Time in Full – PASSED - 67-0-3

    2/20/2026House

  10. Read second time; Filed for Third Reading

    2/19/2026House

  11. Reported out of Committee with Do Pass Recommendation, Filed for Second Reading

    2/18/2026House

  12. Reported Printed and Referred to Commerce & Human Resources

    1/29/2026House

  13. Introduced, read first time, referred to JRA for Printing

    1/28/2026House

Bill Text

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