(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.

Terms Used In Idaho Code 59-1322

  • Amortization: Paying off a loan by regular installments.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • board: means the board provided for in sections 59-1304 and 59-1305, Idaho Code, to administer the retirement system. See Idaho Code 59-1302
  • Employer: means the state of Idaho, or any political subdivision or governmental entity, provided such subdivision or entity has elected to come into the system. See Idaho Code 59-1302
  • Funding agent: means any bank or banks, trust company or trust companies, legal reserve life insurance company or legal reserve life insurance companies, or combinations thereof, any thrift institution or credit union or any investment management firm or individual investment manager selected by the board to hold and/or invest the employers’ and members’ contributions and to pay certain benefits granted under this chapter. See Idaho Code 59-1302
  • Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Member: means an active member, inactive member or a retired member. See Idaho Code 59-1302
  • Retirement: means the acceptance of a retirement allowance under this chapter upon termination of employment and, unless otherwise provided by law, requires a termination of employment from an employer participating in PERSI, the judges retirement fund, the firefighters retirement fund or the optional retirement plan. See Idaho Code 59-1302
  • Salary: means :
Idaho Code 59-1302
  • system: means the public employee retirement system of Idaho. See Idaho Code 59-1302
    • (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.