PERSI Retirement Rules: How to Plan for a Secure and Comfortable Retirement

Admin • January 5, 2024

The Public Employee Retirement System of Idaho (PERSI) is a retirement plan for public employees of Idaho, made up of members from over 850 employer organizations across the state. The $22 billion plan offers retirement, disability, and death benefit programs to over 177,000 members. In 2022, over $1 billion in benefits were paid to PERSI retirees living in Idaho, with an average monthly benefit of $1,800. 

Whether you’re a new public employee just entering PERSI, or you’re nearing retirement and thinking about your future, understanding PERSI’s retirement rules can help you in your retirement planning. Having a comprehensive plan that includes your PERSI benefits can lay the foundation for a secure and comfortable retirement in your golden years. 

Understanding PERSI Basics

PERSI was founded in 1963 as a defined benefit retirement plan to offer a measure of retirement security for Idaho’s public employees. Through the plan, retirees receive a fixed monthly pension based on factors including years of service and salary. 

During its first 35 years, PERSI’s plan was a traditional defined benefit plan, now known as the PERSI Base Plan ; in 2001, PERSI added a defined contribution plan, called the PERSI Choice 401(k) Plan , to supplement the Base Plan. 

  • Base Plan : Enrollment in the defined benefit Base Plan is automatic, and once vested, you’ll receive a lifetime benefit at retirement. Both you and your employer make contributions to the Base Plan, which are invested and grow over time. Your contributions go into your personal account, while employer contributions are pooled in a trust fund to cover future benefits for all members. 

For 2023, as a general member, you contribute 6.71% of your annual salary to the Base Plan, and your employer contributes 11.18%. This percentage varies if you are a public safety member or a school employee member, and it will increase for all members in 2024. Retiring as a vested member means you’ll receive a fixed monthly payment for the rest of your life.

  • Choice 401(k) Plan : Participation in the defined contribution Choice 401(k) Plan is voluntary, unlike the Base Plan. The Choice 401(k) Plan allows you to contribute a portion of your salary, pre-tax, via payroll deductions. You can direct your investments among several investment options. The amount available in your Choice 401(k) at retirement is dependent on your contributions and the performance of your investments.

The combination of these two plans from PERSI offers an optimal blend – the security of the Base Plan, and the opportunity for self-directed investments and voluntary contributions in the Choice 401(k) Plan.

PERSI Eligibility and Retirement Rules

Understanding how to join PERSI and what it means for your retirement is paramount for utilizing this helpful benefit and resource. 

Joining PERSI

When you work in an eligible position for one of over 850 PERSI employers, you become a PERSI member. As an eligible employee, you accrue service credit for each month you work; the credited service is used to calculate your PERSI benefit at retirement. You’ll earn one month of service for each calendar month worked, with at least 20 hours worked during a week. You won’t earn additional service credit by working overtime.

Once you’ve earned 60 months of service credit, you’ll be considered vested and receive a lifetime benefit at retirement. The five-month vesting period doesn’t need to be with the same PERSI employer – you can change public service jobs without impacting your PERSI membership.

Planning for Retirement

To receive your full PERSI retirement benefits, you must reach your service retirement age; or, you must meet the minimum age requirement when you retire, have at least 60 months of credited service, and you also must meet the Rule of 80/90 . These requirements differ if you are a general member, or public safety member – police officer or firefighter.

The Rule of 80/90 = your age + your years of service = 80/90 (or more)

For general members, you must be at least 55 years old and meet the Rule of 90. For police officers or firefighters, you must be 50 years old and meet the Rule of 80. For members with mixed service, your requirements depend on your ratio of general and police-firefighter service –  you’ll have to be between 50-55 years old and meet a Rule of 80 or 90, with both depending on your ratio.

If you retire before reaching your service retirement age (65 years old for general members, 60 years old for police and firefighters), or before reaching the Rule of 80/90, your retirement benefit will be reduced.

If you decide to work beyond your service retirement age or the Rule of 80/90, your retirement benefit will continue to increase.

Calculating Your PERSI Retirement Benefits

Determining the amount of your PERSI retirement benefits and how much income you’ll receive can help you better plan for retirement. PERSI benefits are calculated using a straightforward formula involving your average monthly salary during a Base Period (currently 42 months), a multiplier of 2% for general members or 2.3% for police officers and firefighters, and your months of service.

Average Monthly Salary during Base Period  x Multiplier x Months of Service

For example, if you’re a general member, your average monthly salary is $3,000, and you have 360 months of service:

$3000 x 2% x 360 months = $21,600 

÷ 12 months = 

Monthly benefit of $1,800

The value of your PERSI benefits typically far exceeds your contributions – within the first 3-5 years of retirement, most PERSI members have received a return greater than the money they contributed while working. And you’ll continue to receive your benefits payment for the rest of your life. PERSI also considers cost-of-living adjustments (COLAs) to Base Plan benefit payments annually. Your PERSI benefits are a guaranteed, long-term source of retirement income – something very difficult to find in another investment.

Planning for Retirement with PERSI

There are several retirement distribution options available for PERSI members to choose from. The Regular Retirement option provides the largest benefit, with full payment throughout your life, but it has no Contingent Annuitant (CA) protection for your spouse or dependents. PERSI offers two CA Allowance retirement distribution options with either 100% or 50% CA allowances, as well as a Social Security Adjustment option and two options that are a CA/Social Security blend.

If you’re planning on retiring in the next few years, or even if you’re years away from retirement, knowing how the PERSI retirement process works can help make it more efficient and seamless. PERSI provides a helpful retirement checklist to follow throughout your career as a guide.

Comprehensive Retirement Planning

A comprehensive retirement plan that includes income and investments beyond your PERSI Base Plan and Choice 401(k) Plan will offer you more opportunities to save for retirement and reach your financial objectives. Your goals for retirement are based on your unique situation, and working with a financial advisor can help you create a retirement plan that is customized to your individual circumstances, risk tolerance, timeline, and objectives.  

At Five Pine Wealth Management , we work with you to develop a financial plan and retirement plan that is tailored to your specific needs. As fiduciary financial advisors , we have your best interests in mind as we help you reach your retirement goals and realize your vision of retirement. To find out more about how we can help you supplement your PERSI retirement plan with other retirement strategies, send us an email or give us a call at: 877.333.1015.

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Couples Money Management: Why Both Spouses Need to Know Where the Money Is

September 19, 2025
Key Takeaways Both spouses should understand the family’s finances, even if only one manages them, to prevent confusion or stress during life’s unexpected events. Regular money check-ins, shared account access, and attending financial planning meetings together help couples build confidence and clarity. Partnering with a fiduciary advisor ensures both spouses have support, education, and guidance for comprehensive wealth management and long-term peace of mind. Money is one of the most common sources of stress in relationships. Some couples argue about spending habits, while others quietly hand off all financial responsibilities to one spouse and never revisit the arrangement. At first glance, this setup can feel efficient: one partner pays the bills, manages investments, and handles taxes while the other takes care of different responsibilities. However, there is a risk to this method. If something unexpected happens, the spouse who hasn’t been involved in financial decisions can feel completely lost. Even highly capable, intelligent people often tell us they don’t know where accounts are located, how much income is coming in, or what investments they own. When life throws a curveball, like illness, death, or divorce, that lack of knowledge creates unnecessary anxiety during an already difficult time. The solution is not to necessarily make both partners money managers, but to ensure both understand the big picture. Let’s walk through why this matters, what it looks like in practice, and how you can start today. Financial Planning for Couples Effective financial planning for couples goes beyond having the right investment mix or adequate insurance coverage. It requires both spouses to understand the big picture of their financial life, even if only one manages the day-to-day details. This doesn't mean both partners need to become financial experts. Instead, it means creating transparency and basic literacy that protects your family's financial security regardless of what life throws at you. Here are a few essentials: Regular check-ins : Schedule monthly or quarterly “money talks” where you review accounts, upcoming expenses, and investment performance. This keeps both partners informed. Shared access : Make sure both spouses have login information for bank, investment, and retirement accounts. A secure password manager can help keep things organized. Big-picture clarity : Even if one spouse handles the details, both should know where you stand with assets, liabilities, income, and goals. Think of it as insurance against uncertainty. If one spouse suddenly has to take the reins, they aren’t starting from zero. Couples Money Management Couples' money management doesn’t have to mean “50/50 responsibility for every financial task.” Instead, think about it as defining roles while keeping communication open. Many households operate on a “primary manager” system. One person writes the checks, monitors the accounts, and interacts with financial advisors. That’s perfectly fine, as long as the other spouse has visibility. Problems arise when the "non-manager" is completely shut out. Some practical ways to stay connected: Attend meetings together : Whether it’s with your accountant, attorney, or financial planner, both spouses should be present. Hearing the same information firsthand helps prevent misunderstandings. Document everything : Create a simple household financial binder (digital or physical) that includes account numbers, insurance policies, estate documents, and contact info for professionals you work with. Ask questions : No question is too small. If you don’t understand how an investment works or why you own it, speak up.  Practice decision-making together: Involve both partners in financial decisions, even small ones. This builds confidence and familiarity with your financial priorities and decision-making process. Fiduciary Financial Planning: The Professional Partnership Advantage Working with a fiduciary financial advisor creates an additional layer of protection for couples navigating financial planning together. Fiduciary advisors are legally required to act in your best interest, providing objective guidance that supports both partners' financial security. A good fiduciary advisor will insist on meeting with both spouses regularly, ensuring that financial strategies are understood and agreed upon by both partners. They can also provide education and support to help less financially-inclined spouses build confidence and understanding over time. This professional relationship becomes especially valuable during transitions. When one spouse dies or becomes incapacitated, having an advisor who knows both partners and understands the family's complete financial picture provides stability during chaos. Comprehensive Wealth Management Comprehensive wealth management goes beyond investments. It covers cash flow, taxes, estate planning, insurance, and long-term care strategies. For couples, it also means creating contingency plans. What happens if one spouse passes away? Will the survivor know how to access accounts? What if the “financial spouse” faces cognitive decline later in life? Will the other partner have the confidence to step in? These are not fun scenarios to imagine, but planning for them is an act of love. Comprehensive wealth management ensures: Estate documents are in place and up to date (wills, powers of attorney, trusts). Beneficiaries are correct on retirement accounts, insurance, and other assets. Tax planning strategies are understood by both spouses, so surprises don’t derail long-term goals. Cash flow is sustainable even if income sources shift (such as after retirement or the loss of a business owner’s salary). When couples approach wealth management together, they reduce the risk of financial upheaval during life’s transitions. When Life Changes Everything: Rebuilding Financial Confidence After Loss Despite the best preparation, losing a spouse creates emotional and financial challenges that feel overwhelming. If you find yourself suddenly managing finances alone, remember that feeling lost is normal and temporary. Start by taking inventory of your immediate needs. Focus on essential expenses and cash flow first. Most other financial decisions can wait while you process your grief and adjust to your new reality. Don't make significant financial changes immediately. Grief affects judgment, and rushed decisions often create problems later. Give yourself time to understand your new situation before making significant moves. Lean on your professional team. This is exactly when having existing relationships with financial advisors, attorneys, and accountants becomes invaluable. They can provide stability and guidance during an unstable time. Consider working with a counselor who specializes in financial therapy or grief counseling. Processing the emotional aspects of sudden financial responsibility is just as important as understanding the technical details. Taking the Next Step Together If you and your spouse have fallen into the habit of letting one person manage all the finances, it’s not too late to shift. Schedule a money talk this week. Write down your accounts. Ask questions. Set a reminder to attend your next financial planning meeting together. At Five Pine Wealth Management , we can guide couples through these conversations. Whether you’re in the wealth accumulation phase, approaching retirement, or already enjoying it, we help both partners feel equally confident in their financial picture. Don't wait until a crisis forces financial literacy upon you. Call (877.333.1015) or send us an email today at info@fivepinewealth.com to schedule a consultation and start building the financial transparency and security your family deserves. Frequently Asked Questions (FAQs) Q: What if one spouse has no interest in learning about finances? A: Start small and focus on the essentials. Your spouse doesn't need to become a financial expert, but they should know where important documents are located, understand your basic monthly expenses, and know how to contact your financial advisor. Q: How often should we review our finances together if only one person manages them day-to-day? A: Quarterly check-ins work well for most couples. Schedule a regular 30-minute conversation to review your progress toward goals, discuss any major upcoming expenses, and ensure both partners stay informed about your overall financial picture. Q: What's the most important thing for the non-financial spouse to understand first? A: Cash flow and immediate needs. Know where your checking accounts are, how much you typically spend each month, what bills are on autopay, and how to access emergency funds. This knowledge provides immediate stability if they suddenly need to take over financial management.

How to Build a Retirement Plan That Works No Matter What the Economy Does

August 14, 2025
We’re all feeling it these days: the underlying feeling of uncertainty about what lies ahead. Each day, we see headlines about inflation, Social Security’s future, or market swings. Unsurprisingly, Gallup tells us that the top three American fears have to do with money: the economy, availability/affordability of healthcare, and inflation. If you’re in your 50s and 60s, these concerns probably hit even closer to home. You’re not just thinking about the economy in general terms. You’re wondering how it will affect your specific retirement plans. Your mind likely turns to: Increasing healthcare costs – can you absorb unexpected costs on a fixed income? Inflation and market volatility – will the value of the dollar diminish your retirement savings? Social Security uncertainty – will it exist when you retire? Having enough saved – will your retirement budget hold up when the time comes? About 1 in 4 Americans over 50 are delaying retirement , and it’s not hard to understand why. With thoughtful planning and the right strategies, you can build confidence in your ability to maintain your lifestyle on a fixed income, regardless of what economic curveballs come your way. 5 Key Strategies to Prepare for Living on a Fixed Income Uncertainty doesn’t have to derail your retirement plans. By addressing these five critical areas, you can build a foundation that allows you to enjoy the retirement you’ve worked toward. 1. Review (And Potentially Adjust) Your Retirement Timeline One of the most powerful tools you have is flexibility with your retirement timeline. While certain ages qualify you for benefits or withdrawals from certain accounts, there’s no concrete age you have to retire at. Traditional retirement at 62 or 65 might not make sense for your unique situation; you should feel free to alter your timeline to make sense for you and your family. Consider Your Social Security Strategy Your Social Security benefits increase each year you delay claiming them beyond your full retirement age, up until age 70. For many people, this creates a meaningful boost to their guaranteed monthly income. If you can afford to wait, this strategy alone can significantly strengthen your fixed-income foundation. Explore Phased Retirement Options Rather than going from full-time work to complete retirement overnight, consider a gradual or phased transition. Many of our clients find success with: Part-time consulting in their field of expertise Freelance work that leverages their skills Small business ventures they've always wanted to try Investment properties that generate passive income This approach not only eases the financial transition but often provides a sense of purpose and engagement during early retirement. 2. Fine-Tune Your Investment Mix and Retirement Income Strategy Adjusting your portfolio is an ongoing responsibility, not a one-time task before retirement. Continue to revisit and rebalance as a proactive part of your retirement plan. Equally important is creating multiple income streams to reduce your reliance on any single source. Diversify Your Retirement Income Sources Think of building several income bridges instead of relying on one massive one. Your retirement income might come from Social Security, traditional retirement accounts (401(k), IRA), Roth accounts for tax-free withdrawals, and taxable investment accounts for flexibility. Each serves a different purpose in your overall strategy. Is Your Portfolio Inflation-Resistant? Cash can feel safe, but inflation quietly erodes its purchasing power over time. If you want an honest look at the hard numbers of inflation, see the Bureau of Labor Statistics CPI Inflation Calculator . For example, we see that $1,000,000 in 2015 has the buying power of $1,380,194 in 2025. You would need an extra (almost) $380,000 to make up for inflation. Inflation is a reality of the economy that everyone deals with, but your investment strategies can mitigate its impact on your net worth. Consider allocating a portion of your portfolio to assets that historically perform well during inflationary periods. Don’t Abandon Growth Too Soon If you're retiring in your early 60s, you could have 20-30 years ahead of you. Being overly conservative with your investments might feel safer in the short term, but it could leave you struggling to maintain your lifestyle later. A balanced approach that includes growth-oriented investments can help ensure your money lasts as long as you do. 3. Reduce Outstanding Debts The Federal Reserve’s most recent Survey of Consumer Finances reports that the average older adult (ages 65 and up) carries between $95,000 and $172,000 in debt. The bulk of those debts is from outstanding mortgage balances, but credit card and medical debts contribute significantly. Prioritize Your Debt Payoff Strategy High-interest debts from credit cards and personal loans can take up a lot of room on a fixed income. Consider whether it makes sense to use some of your current higher income to aggressively pay down these balances before you retire. There are two primary ways of tackling multiple debts: Avalanche: Pay off your balances starting with the highest interest rates. Snowball: Pay off your balances from smallest to largest. Entering retirement debt-free can be a very freeing experience. Consider Your Mortgage Your mortgage situation is more nuanced. Some retirees find comfort in owning their home outright, while others benefit from maintaining their mortgage if it's at a low interest rate, and money can be invested for higher returns. The right choice depends on your specific situation and comfort level. 4. Plan for Healthcare Costs and Insurance Transitions Healthcare expenses are frequently retirees' most underestimated cost. Add in Medicare's maze of coverage options, and it's no wonder many retirees feel unprepared. Planning for these expenses and understanding your options before you need them can prevent costly surprises that strain your fixed income. Understand Your Medicare Options If you're 65 or older: Enroll in Medicare during your Initial Enrollment Period (IEP), which begins 3 months before your 65th birthday and extends 3 months after Consider supplemental coverage options: Medigap (if you choose Original Medicare Parts A and B) Medicare Advantage (Part C) as an alternative to Original Medicare Prescription Drug Coverage (Part D), if not included in your plan If you’re under 65 and retiring, consider: COBRA coverage from your employer allows you to keep your current plan for up to 18 months, but you'll pay the full premium plus administrative fees (typically $400-$700 per person monthly) Your spouse's employer plan (if available and you're eligible) An Affordable Care Act (ACA) marketplace plan Prepare for the end of employer-sponsored insurance coverage about a year in advance to avoid lapses in coverage. Build a Healthcare Reserve According to the 2025 Fidelity Retiree Health Care Cost Estimate , a 65-year-old individual may require approximately $172,500 in after-tax savings to cover health care expenses in retirement. Consider establishing a separate savings account specifically for medical expenses. Health Savings Accounts (HSAs), if you're eligible, offer triple tax advantages and can be particularly valuable for retirement healthcare planning. 5. Create a Flexible Retirement Budget It’s wise to reevaluate where your money is going every month so you can enjoy once-in-a-lifetime retirement opportunities fully. This, combined with an emergency fund, helps avoid lifestyle creep and the stress of unexpected expenses. Plan for the “Retirement Smile” Retirement spending tends to move in a “U” shape: higher spending in early retirement, less in the middle, and back up again towards the end. While your bucket list trips and experiences are significant expenses, they’re often one-and-done. Most people do these things early on in retirement and slow down into a more predictable financial rhythm. Towards the end of retirement, costs often increase again to cover long-term care needs. Organize Your Budget Into Categories Consider dividing your retirement expenses into essential costs (housing, utilities, healthcare), lifestyle expenses (travel, dining, hobbies), and discretionary spending (gifts, major purchases). Cover your essentials with your most reliable income sources like Social Security, while funding lifestyle expenses through portfolio withdrawals that can adjust during market downturns. How Can You Reduce Your Future Cost-of-Living? Consider ways you can capitalize on your existing assets to better position yourself for the future. If you’ve built significant home equity, downsizing or moving to a more affordable city may be a great option, as you’ll benefit from liquidity and reduced costs. Rely on A Trusted Fiduciary Financial Planner If you’re feeling anxious about the future, know this: you’re not stuck doing it on your own. With the help of a fiduciary financial planner, you can not only see if your plan holds up against inflation and economic uncertainties, but they will:  Prioritize tax-efficient retirement withdrawal strategies Strategize Required Minimum Distributions (RMDs) Create a sustainable withdrawal strategy The best thing you can do for a healthy retirement is to leverage the experts. At Five Pine Wealth Management , we create comprehensive financial plans that align with your financial goals and personal values. If you'd like to discuss how these strategies might apply to your specific situation, we're here to help. Email us at info@fivepinewealth.com or call 877.333.1015 to schedule a conversation about your retirement planning needs.