This bill amends Section 59-1308 of the Idaho Code to update provisions related to the public employee retirement system, specifically concerning qualified pre-tax contributions, investment earnings, and Roth contributions. The amendments clarify that qualified pre-tax contributions and investment earnings must comply with the requirements of sections 401(a) and 401(k) of the Internal Revenue Code, as well as any other tax-deferred plans permitted by law. Additionally, the bill replaces references to "after-tax contributions" with "Roth contributions and investment earnings," ensuring that these also adhere to the relevant sections of the Internal Revenue Code.

The bill also establishes that all contributions made by employees under the supplemental benefit plans will continue to be considered regular compensation for calculating retirement contributions and benefits, while not being included in income tax computations. Furthermore, it provides for the defense and indemnification of retirement board members and staff against claims arising from their official duties. The bill declares an emergency, making it effective on July 1, 2026.

Statutes affected:
Bill Text: 59-1308