Idaho's 2026 Session: How Lawmakers Changed PERSI
Published August 2, 2026 · Idaho's 2026 legislative session adjourned April 2, 2026
Six bills touching the Public Employee Retirement System of Idaho (PERSI) passed the 2026 session. Most were narrow, near-unanimous fixes to the rules around rehiring retirees — but the pension system's own FY2027 funding bill produced the session's closest PERSI vote, splitting the House 36–33.
Returning to work after retirement
Three bills loosen or clarify the rules around PERSI retirees who go back to work — a permanent removal of one restriction, a sector-specific exception, and a fix for retirees elected to office.
Retired employees can permanently return to work
Permanently removes a sunset provision that would have restricted PERSI retirees from returning to work. Framed as a way to keep experienced workers available for ongoing staffing shortages without any negative effect on the pension system itself.
Senate 33–0 · House 68–0
Irrigation districts get an extra 3 months for rehired retirees
PERSI retirees can normally work up to 5 months without affecting their retirement benefits. This carves out an exception for irrigation districts specifically, extending that window to 8 months.
Senate 33–0 · House 70–0
Retirees elected to public office keep their pension
Clarifies that a PERSI retiree who has been retired more than six months and is then elected to a public office they didn't hold before retiring can continue receiving their retirement benefit while serving.
Senate 35–0 · House 68–0
Administrative and code cleanup
Two technical bills — aligning PERSI\'s contribution language with federal tax code and removing obsolete statute text.
PERSI contribution language aligned with IRS terminology
Updates Idaho Code to replace "after-tax contributions" with "Roth contributions and investment earnings," matching current IRS regulations, and adds references to the specific federal tax code sections that apply.
House 67–0 · Senate 35–0
Obsolete PERSI code language removed
Part of the broader Idaho Code Cleanup Act follow-through — removes outdated PERSI statute language flagged for repeal.
Senate 35–0 · House 68–0
Funding
PERSI's own FY2027 appropriation — a routine budget bill that turned into the session's tightest PERSI-related vote.
PERSI pension-software upgrade funding
The FY2027 appropriation to PERSI, including one-time funding for a pension software upgrade, a continuity-of-operations plan, and equipment replacement. The closest vote of this recap — a real split in the House over a routine-looking appropriations bill.
House 36–33 · Senate 25–9
Related Tally Idaho coverage
Full 2026 PERSI-subject bills list · Full 2026 session · How Idaho laws are made