IdahoS 12612026 regular legislative sessionSenateWALLET

PERSI – Amends existing law to provide for a retired member who is appointed to an elective public office.

Sponsored By: COMMERCE AND HUMAN RESOURCES COMMITTEE

Signed by Governor

PERSI

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Bill Overview

Analyzed Economic Effects

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

Working again pauses PERSI; early return cancels

Beginning July 1, 2026, if you return to PERSI‑covered work within 90 days of retiring, or had a guaranteed rehire, your retirement is treated as never ending. You must repay any pension checks for that time, and the retirement is canceled for that period. Work as a contractor, leased employee, or through a temp agency still counts as reemployment. In general, when you again meet the law’s employee definition, PERSI suspends your pension and your payroll contributions restart; death benefits follow normal PERSI rules while suspended. The last month you paid in before a canceled retirement and the first month you pay in after you return count back‑to‑back when PERSI figures your pay base for a later retirement.

Keep PERSI checks in elected or school jobs

Beginning July 1, 2026, if you have been retired more than six months, receive a non‑reduced benefit, and are elected or appointed to a different public office, you can choose to keep your pension. In that case, neither you nor the public employer pays contributions, and you do not earn new service while serving. Also starting July 1, 2026, a retired school employee who left at age 60 or older, or a retired public safety officer returning to school work under state law, may choose to keep benefits and not accrue service. While you keep the benefit in a school job, you do not pay member contributions.

Pre-2022 keep-benefit option ends June 2026

The separate option for people who retired before January 1, 2022 at age 55 or older to keep receiving benefits while working ends after June 30, 2026. After that date, this special choice is no longer available.

Employers must report rehired retirees or pay

Beginning July 1, 2026, PERSI employers must report right away when they hire a retiree. If they fail to report and PERSI pays benefits that should have been suspended, the employer owes the missed employee and employer contributions and must repay the improper benefits with interest. Employers may seek repayment from the retiree.

Temporary police/fire rule to keep PERSI

From July 1, 2026 through June 30, 2027, retired police officers and firefighters who retired at age 50 or older and return (or are guaranteed rehire) within 30 days are treated as still employed. You may choose to keep your pension and not earn new service during this time. You and your employer must pay the police/fire contribution rates while you work. This temporary rule ends after June 30, 2027.

True volunteers keep PERSI while serving

Beginning July 1, 2026, you can volunteer for a PERSI employer without being treated as reemployed if you get no pay, the work is not normally a paid job, and the role is not used to avoid employee rules. Your pension can continue while you truly volunteer. If you claim volunteer status but do paid or normally paid work, you must repay any pension checks and your retirement is canceled for that time.

Sponsors & Cosponsors

Sponsor

COMMERCE AND HUMAN RESOURCES COMMITTEE
Affiliation unavailable

Cosponsors

Jon O. Weber
Republican • House

Roll Call Votes

All Roll Calls

Yes: 103 • No: 0

Senate vote • 3/12/2026

Senate Floor Vote

Yes: 68 • No: 0

Senate vote • 2/18/2026