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IdahoH 05432026 regular legislative sessionHouse

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

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

New supplemental retirement plan for PERSI workers

Beginning July 1, 2026, the state creates supplemental retirement plans for active PERSI members. The board sets up an account for each member who is due an extraordinary gains transfer. After that transfer, any active member can choose payroll-deducted contributions instead of that amount as salary, up to legal limits. Employers must send authorized deductions to the plan by the fifth working day after payroll and file reports. If an employer fails to do this, the employer must pay the costs.

Tax rules for PERSI supplemental contributions

Beginning July 1, 2026, pre-tax contributions and earnings must meet federal 401(a) and 401(k) rules, and Roth money must meet 401(a), 401(k), and 402A rules. Your extra contributions still count as regular pay when PERSI computes pension contributions and benefits. They are not counted when figuring income tax withholding from your paycheck. Employers must coordinate all your plans to stay within federal limits; any excess is applied to other plans, not the new supplemental plan.

Dividing supplemental accounts in divorce

Beginning July 1, 2026, if a court awards part of a supplemental account to a spouse or former spouse, that order is separate from a domestic retirement order. The PERSI board can set rules for how these assignments work.

How PERSI supplemental accounts are managed

Beginning July 1, 2026, all supplemental plan money is held by a trustee picked by the PERSI board. The funds are permanently available to invest and to pay plan costs. The board can offer payout options other than a lump sum, but withdrawals must follow federal limits. The board may require inactive members to move their balances. Administrative costs can be paid from fund earnings or charged to accounts, and investment expenses do not need a legislative appropriation.

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

Senate vote • 3/12/2026

Senate 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. Delivered to Governor at 1:35 p.m. on March 17, 2026

    3/17/2026

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

    3/17/2026Senate

  4. Signed by President; returned to House

    3/16/2026Senate

  5. Received from the House enrolled/signed by Speaker

    3/16/2026Senate

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

    3/16/2026House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/13/2026House

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

    3/12/2026Senate

  9. Read second time; filed for Third Reading

    3/5/2026Senate

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

    3/4/2026Senate

  11. Introduced, read first time; referred to: Commerce & Human Resources

    2/23/2026Senate

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

    2/23/2026Senate

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

    2/20/2026House

  14. Read second time; Filed for Third Reading

    2/19/2026House

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

    2/18/2026House

  16. Reported Printed and Referred to Commerce & Human Resources

    1/29/2026House

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

    1/28/2026House

Bill Text

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