PERSI reports recovery gains, seeks continued software funding and modest operational increases

The Public Employee Retirement System of Idaho (PERSI) briefed the Joint Finance-Appropriations Committee on its FY2026 budget request and the system’s financial status, including asset growth, funding ratio and a multi-year pension software upgrade.

Frances Lippitt, budget and policy analyst with the Legislative Services Office, summarized PERSI’s organization and budget. PERSI is governed by a five-member retirement board appointed by the governor. Director Mike Hampton and senior staff responded to committee questions.

Key fiscal figures presented included an estimated $22.0 billion in plan assets, approximately 185,000 members in the plan, and pension payments of roughly $245.9 million paid from continuously appropriated funds in FY2024. The presentation said the system’s funded ratio was about 87% at the end of the most recent fiscal year and that the fund has an amortization period of about 10.7 years (well under the 25-year threshold mentioned in statute when boards consider contribution adjustments).

PERSI described its operating footprint and recent budget history. The agency employs 81 authorized full-time staff across offices in Boise, Pocatello and Coeur d’Alene, with an average filled rate of about 89%. In FY2024, PERSI expended roughly $11.4 million from appropriated funds with personnel costs accounting for about 56.6% of those expenses. The agency reported a 10% vacancy rate and a 24.6% turnover rate in FY2024.

PERSI’s FY2026 requests include: - Ongoing enhancements totaling $277,100 (including $25,000 to establish a dedicated travel budget for board members to attend oversight conferences and a requested 5% inflation adjustment the agency listed for consideration). - A one-time $3,000,000 request for year 4 of the pension software upgrade (the analyst noted the software upgrade program will total $12,000,000 over five years). - One-time requests for IT hardware and office furniture recommended by the Office of Information Technology Services.

Director Mike Hampton told the committee that the board recommended a cost-of-living adjustment that includes an automatic 1% adjustment as defined in statute and an additional 0.3% retroactive adjustment back to 2020; the board will recommend what it considers prudent so as not to imperil long-term fund sustainability. Hampton described the board’s annual deliberations over COLA recommendations as balancing members’ needs with the fund’s long-term funded status.

On investment performance, Hampton said the system had about a 9% return over the last year noted in the presentation and that the plan is recovering from a market correction in 2022. He said Idaho’s PERSI is comparatively well-funded among state pension systems.

Committee members asked for clarification about which costs are appropriated versus continuously appropriated: Hampton said investment management fees fall under continuously appropriated funds and do not pass through the annual appropriation, whereas personnel, operating and software costs are in the operating appropriation.

No committee action or votes were taken at the hearing; the presentation will inform the committee’s appropriation decisions.