Idaho State Statutes - Idaho Attorney Directory

(1) At the close of each
fiscal year, the board shall determine whether the fund has experienced
extraordinary gains. If extraordinary gains exist the board may allocate all
or part of them as set forth in this section. In determining whether
extraordinary gains should be allocated, the board shall exercise its
fiduciary discretion.
(2) Extraordinary gains are defined as the excess, if any, at the close
of the fiscal year of plan assets over the plan's accrued actuarially
determined liabilities plus a sum necessary to absorb a one (1) standard
deviation market event without increasing contribution rates, as determined by
the board.
(3) If the board determines that extraordinary gains should be allocated,
the gains shall be allocated to retirees, to active members, and to employers
in such proportion as determined by the board. The board shall determine no
later than the first day of December following the close of the fiscal year
the amount of extraordinary gains to be allocated, if any.
(4) Retirees shall receive their allocation in the form of a one-time
payment made in addition to their regular monthly benefit payments. For
purposes of this section, "retirees" include retired members, members
receiving a disability retirement allowance, contingent annuitants, and
surviving spouses who elected the annuity option under section 59-1361(5),
Idaho Code. To participate in the retiree allocation, a retiree must be
receiving a regular monthly allowance at the close of the fiscal year and on
the date of distribution. The retiree allocation shall be distributed
proportionally based on the final monthly retirement allowance of the fiscal
year divided by the total of all monthly retirement allowances paid for the
same month. The date of distribution shall be no later than the first day of
February following the close of the fiscal year.
(5) Active members shall receive their allocation as a transfer of funds
to a supplemental retirement account established by the board. Funds
transferred to or held in supplemental retirement accounts shall be accounted
for separately and shall not be considered in determining any other benefits
under this chapter. To participate in the active member allocation, the member
must have been an active member on the last day of the fiscal year and have
accrued at least twelve (12) months of service on that date. Any member who
has withdrawn contributions from the fund prior to the date of transfer is not
eligible to receive a transfer under this section. The active member
allocation shall be distributed proportionally based on accumulated
contributions at the close of the fiscal year divided by the total accumulated
contributions of all active members at the close of the fiscal year, not to
exceed the amount that would result by applying the limits imposed by rule or
by section 415(c)(1) of the Internal Revenue Code to compensation earned
during the fiscal year. The transfer of funds shall occur in the following
calendar year but shall be subject to reduction and forfeiture, based on the
application of limits imposed by rule or by section 415 of the Internal
Revenue Code for that year.
(6) Employers shall receive their allocation as a credit against future
contributions required by section 59-1325, Idaho Code. Credits are not
available to any employer who has withdrawn from participation in the fund
prior to the transfer date. The employer allocation shall be credited
proportionally based on employer contribution liability accrued during the
fiscal year as provided in section 59-1322, Idaho Code, divided by the total
employer contribution liability for the fiscal year. The credits shall be
established no later than the first day of February following the close of the
fiscal year. The credits shall be applied thereafter in the same manner as
provided in section 59-1325, Idaho Code, until exhausted. If, after twelve
(12) months of remittances, an employer's credits have not been exhausted, and
the employer has not withdrawn from participation in the fund, the value of
the remaining credits shall carry over to the next year, together with an
interest payment equal to regular interest on the remaining credits.

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