Idaho State Statutes - Idaho Attorney Directory

SUPPLEMENTAL BENEFIT PLAN -- CONTRIBUTIONS AND EXPENSES OF THE
SUPPLEMENTAL BENEFIT PLAN -- INDEMNIFICATION. (1) The state shall sponsor and
the board shall administer one (1) or more supplemental benefit plans to be
used for allocation of extraordinary gains as provided in section 59-1309,
Idaho Code, and for voluntary contributions of active members. The
supplemental plans may be established under the qualified requirements of
section 401(a) of the Internal Revenue Service Code and with the qualified
cash or deferred arrangements under section 401(k) of the Internal Revenue
Service Code or any other tax-deferred plan permitted by law, as determined by
the retirement board. The board is authorized to secure such qualified staff
and consultants as it determines necessary to establish and administer such
plans. Employee and employer contributions shall be permitted according to the
provisions of these plans as established by the board. For purposes of this
section "employee" shall mean a participant as defined in the supplemental
benefit plan documents or board rules.
(2) The board is authorized, but not required, to establish separate
trust funds to hold the assets of the supplemental benefit plans created under
this section. The investment options available under supplemental benefit
plans shall be determined by the board, and may include, but are not limited
to, investment in all or part of the public employee retirement fund and use
of private vendor options.
(3) Supplemental benefit plans shall be available to all active members
and shall be in addition to any other retirement or tax-deferred compensation
system established by the employer. The board may provide educational
opportunities related to supplemental benefit plans and retirement savings, as
determined by the board.
(4) Accounts shall be established in supplemental benefit plans for all
active members eligible for an extraordinary gains transfer under section
59-1309, Idaho Code. After the initial transfer of extraordinary gains, any
active member may make additional voluntary contributions to his/her account,
subject to applicable limitations, by authorizing his/her employer to
contribute an amount by payroll deduction to the supplemental benefit plan in
lieu of receiving such amount as salary. The amount of such contributions
shall be subject to any limitations established by the board, state or federal
law. The employer shall provide coordination of contributions between multiple
plans to assure that contribution limits are not exceeded. Should aggregate
contributions to multiple plans exceed applicable limits, excess contributions
shall be deemed to apply exclusively to plans not created by this chapter. In
the event a preexisting plan is used as a supplemental plan, voluntary
contributions may continue to be made to that plan despite the absence of
extraordinary gains transfers.
(5) For purposes of this section the employer is authorized to make such
deductions from salary for any employee who has authorized such deductions in
writing. The employer shall forward all contributions under this section to
the board by the fifth working day after each payroll, in addition to reports
as directed by the board. Any costs incurred by the board, whether direct or
indirect, due to an employer's failure to properly withhold, transfer, limit
and report contributions, shall be the responsibility of the employer and
shall be immediately due and payable upon notice from the board. This
includes, but is not limited to, costs associated with plan corrections. Such
costs shall be treated as delinquent contributions under section 59-1325,
Idaho Code.
(6) The board may enter into agreements with employers or require
participation to implement the supplemental benefit plans and the board may
designate administrative agents to execute all necessary agreements pertaining
to the supplemental benefit plans.
(7) All contributions received from participants in the supplemental
benefit plans shall be deposited with a trustee designated by the board. All
such funds are hereby perpetually appropriated to the board, shall not be
included in the department's budget, and may be invested or used to pay for
investment and administrative expenses of the supplemental benefit plans.
Inactive members may be required to transfer supplemental benefit plan account
balances as determined by the board.
(8) The board may establish rules to implement and administer
supplemental benefit plans. Costs of administration shall be appropriated by
the legislature and may be paid from the interest earnings of the funds
accrued as a result of the deposits or as an assessment against each account,
to be decided by the board. Investment related expenses are exempt from
appropriation.
(9) Contributions and investment earnings under the supplemental benefit
plans shall be exempt from federal and state income taxes until the ultimate
distribution of such contributions. Distributions of funds held in
supplemental benefit plan accounts are subject to federal law limitations. The
board may provide for retirement disbursement options other than lump sum
payments.
(10) All additional contributions made by the employee under this section
shall continue to be included as regular compensation for the purpose of
computing the employer and employee retirement contributions and pension
benefits earned by an employee under this chapter, but such sum shall not be
included in the computation of any income taxes withheld on behalf of any
employee. However, funds accrued in a supplemental benefit plan account shall
not be considered in determining any other benefits under this chapter.
(11) The provisions of sections 59-1316 and 59-1317(1), (2) and (5), Idaho
Code, shall also apply to the supplemental benefit plans created under this
section. Should a court order that an assignment be made to a participant's
spouse or former spouse of all or part of an account created under this
section, the assignment shall be separate and distinct from any approved
domestic retirement order required by section 59-1317(4), Idaho Code.
Requirements for assignments of supplemental accounts may be set forth in rule
or other plan documents.
(12) Members of the retirement board or retirement system staff, jointly
or individually, shall be indemnified from all claims, demands, judgments,
costs, charges and expenses, including court costs and attorney's fees, and
against all liability losses and damages of any nature whatsoever that the
retirement board or retirement system staff shall or may at any time sustain
by reason of any decision made in the scope or performance of their duties
pursuant to the provisions of this section, except as may result from their
willful and intentional malfeasance. The venue of all actions in which the
retirement board or retirement staff is a party shall be in Ada county, Idaho.

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