Many people don’t think about retirement until they are almost ready to retire...and then, it may be too late to take much action. Through the Public Employee Retirement System of Idaho (PERSI), state employees have a guaranteed lifetime retirement benefit afforded to them. PERSI encourages public employees to think about retirement early in their careers, and educates them on ways to achieve a more secure retirement regardless of when they plan to retire.

Created in 1963, PERSI is directed by a five-member Retirement Board, each appointed by the Governor for 5 year terms. The Board maintains fiduciary responsibility for investment policy, asset allocation, the selection of individual investment managers, post-retirement increases (cost of living adjustments), and setting the contribution rates. PERSI staff and board members have the fiduciary responsibility to act solely in the best interest of the beneficiaries without using social issues or political interests to sway decisions.

The Base Plan (defined benefit) provides guaranteed income security for members. Members receive annual cost of living adjustments to keep pace with inflation, it is a tax-deferred retirement medium, and participation does not depend on the members’ ability to save. PERSI members may also participate in the Choice Plan 401(k). This deferred retirement savings vehicle (defined contribution plan) is funded through payroll deductions, and members have control over how much they save and can benefit from good investment results.

As of the end of its last fiscal year (June 30, 2006), PERSI had 64,762 active members, 21,848 inactive members (9,069 of whom are entitled to vested benefits), and 28,438 retirees, with annual benefits averaging $13,421. Approximately 89 percent of the benefits paid to retirees stay in Idaho. This equated to more than $31 million per year in December 2006. A mix of state, city, county, police and firefighters, schools, and political subdivisions comprise the nearly 700 employers units in PERSI. Revenue is derived from three sources: member contributions, employer contributions, and investment earnings. With a value of more than $11 billion, PERSI is fiscally strong. Our funding level may exceed 100 percent for FY07, which means PERSI is positioned to meet its obligations regardless of when benefit payments are due to retirees.

PERSI employs 63 staff, working in three locations: Boise, Pocatello, and Coeur d’Alene. Headquartered at 607 North 8^th Street, Boise, Idaho, 83702, PERSI can be reached by calling (208) 334-3365 or toll-free at 1(800)451-8228. Visit PERSI’s Web site at www.persi.idaho.gov for more information.

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