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PERSI reports strong returns and a near‑90% funded ratio, requests final year for pension software upgrade
Summary
PERSI Director Mike Hampton told the committee the trust returned 10.76% for the year, reported a fund balance above $24.1 billion and a funded ratio around 90%, and requested $2 million to finish a multi‑year pension software upgrade while noting higher ongoing maintenance costs after the upgrade.
Mike Hampton, director of the Public Employee Retirement System of Idaho (PERSI), told the Joint Finance‑Appropriations Committee that PERSI had a strong investment year, remains well funded, and is seeking the final year of funding to complete a planned pension software upgrade.
Hampton said net investment returns for the fiscal year ended June 30, 2025, were 10.76% and that the fund balance exceeded $24.1 billion with a funded ratio "right around 90%," placing PERSI among the better‑funded public retirement systems nationally. He emphasized that the system pays benefits broadly across the state and that 88% of benefits paid go to Idaho addresses.
The agency requested one‑time dedicated funding for the final year of a multi‑year pension software upgrade (reported as $2,000,000 in the FY2027 request), plus funds for replacement IT equipment and disaster‑recovery planning. Lippitt told the committee that after the upgrade, annual maintenance charges are estimated at $480,000—about $100,000 more than current maintenance costs—driven by licensing and support for the updated system.
Hampton also explained Idaho’s statutory post‑retirement allowance (PAA): a 1% mandatory base adjustment is pre‑funded in contributions, and additional discretionary adjustments are funded from investment earnings and must be recommended by the board and approved by the Legislature. The board recommended catching up retroactive PAAs through 2022 and brought that recommendation to the committee.
On participation, Hampton said PERSI serves nearly 879,000 active members and hundreds of employer units and that smaller employer units categorized as "other" include library districts, canal districts, mosquito abatement and other small governmental entities; he added that grandfathered, non‑governmental associations joined in earlier decades but that going forward only governmental employers may join.
What happens next: the committee will continue to evaluate the FY2027 requests and the board's recommendations on retroactive PAA adjustments as part of its broader budget deliberations.
