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     Idaho Statutes

Idaho Statutes are updated to the website July 1 following the legislative session.


59-1322.  Employer contributions — Amounts — Rates — Amortization. (1) Each employer shall contribute to the cost of the system. The amount of the employer contributions shall consist of the sum of a percentage of the salaries of members to be known as the "normal cost" and a percentage of such salaries to be known as the "amortization payment." The rates of such contributions shall be determined by the board on the basis of assets and liabilities as shown by actuarial valuation, and such rates shall become effective no later than January 1 of the second year following the year of the most recent actuarial valuation, and shall remain effective until next determined by the board.
(2)  The normal cost rate shall be computed to be sufficient, when applied to the actuarial present value of the future salary of the average new member entering the system, to provide for the payment of all prospective benefits in respect to such member, which benefits are not provided by the member’s own contribution.
(3)  The amortization rate shall not be less than the minimum amortization rate computed pursuant to subsection (5) of this section, unless a one (1) year grace period has been made effective by the board. During a grace period, the amortization rate shall be no less than the rate in effect during the immediately preceding year. A grace period may not be made effective if more than one (1) other grace period has been effective in the immediately preceding four (4) year period.
(4)  Each of the following terms used in this subsection and in subsection (5) of this section shall have the following meanings:
(a)  "Valuation" means the most recent actuarial valuation.
(b)  "Valuation date" means the date of such valuation.
(c)  "Effective date" means the date the rates of contributions based on the valuation become effective pursuant to subsection (1) of this section.
(d)  "End date" means the date thirty (30) years after the valuation date until July 1, 1993. On and after July 1, 1993, "end date" means twenty-five (25) years after the valuation date.
(e)  "Unfunded actuarial liability" means the excess of the actuarial present value of (i) over the sum of the actuarial present values of (ii), (iii), (iv) and (v) as follows, all determined by the valuation as of the valuation date:
(i)   all future benefits payable to all members and contingent annuitants;
(ii)  the assets then held by the funding agent for the payment of benefits under this chapter;
(iii) the future normal costs payable in respect of all then active members;
(iv)  the future contributions payable under sections 59-1331 through 59-1334, Idaho Code, by all current active members;
(v)   the future contributions payable to the retirement system under sections 33-107A and 33-107B, Idaho Code.
(f)  "Projected salaries" means the sum of the annual salaries of all members in the system.
(g)  "Scheduled amortization amount" means the actuarial present value of future contributions payable as amortization payment from the valuation date until the effective date.
(5)  The minimum amortization payment rate shall be that percentage, calculated as of the valuation date, of the then actuarial present value of the projected salaries from the effective date to the end date which is equivalent to the excess of the unfunded actuarial liability over the scheduled amortization amount.
(6)  The board, in its discretion, may determine separate rates of contribution for employers as described in subsection (1) of this section for each of the following groups in accordance with differences in normal costs between the groups:
(a)  Police officers and firefighters;
(b)  School employees; and
(c)  All other members.

[(59-1322) 1963, ch. 349, Art. 9, sec. 1, p. 988; am. 1974, ch. 57, sec. 17, p. 1118; am. 1979, ch. 158, sec. 5, p. 485; am. 1980, ch. 51, sec. 1, p. 106; am. 1982, ch. 243, sec. 4, p. 630; am. 1984, ch. 132, sec. 7, p. 318; am. 1986, ch. 143, sec. 3, p. 401; am. 1986, ch. 146, sec. 1, p. 408; am. 1987, ch. 348, sec. 1, p. 763; am. 1988, ch. 237, sec. 1, p. 465; am. and redesig, 1990, ch. 231, sec. 18, p. 626; am. 1990, ch. 249, sec. 8, p. 712; am. 1992, ch. 342, sec. 5, p. 1047; am. 1999, ch. 271, sec. 1, p. 683; am. 2022, ch. 216, sec. 2, p. 695.]

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