Idaho § 59-1356 - Reemployment of retired members

§ 59-1356. Reemployment of retired members

(1) If an early retired member, except as provided in subsection (6) of this section, is reemployed with an employer participating in the public employee retirement system of Idaho within ninety (90) days from retiring, or the early retired member is guaranteed reemployment with an employer participating in the public employee retirement system of Idaho, the member shall be considered to have continued in the status of an employee and not to have separated from service. Any retirement allowance payments received by the retired member shall be repaid to the system and the retirement shall be negated. The month of last contribution prior to the negated retirement and the month of initial contribution upon return to reemployment shall be considered consecutive months of contributions in the determination of an appropriate salary base period upon subsequent retirement. A retired member is not considered to have separated from service if he continues performing services for an employer participating in the public employee retirement system of Idaho in any capacity, including but not limited to independent contractor, leased employee, or temporary services.

(2) Except as provided in subsections (3), (4), (5), and (6) of this section, when a retired member meets the definition of an employee as defined in section 59-1302 (14)(A)(a), Idaho Code, any benefit payable on behalf of such member shall be suspended and any contributions payable by such member under sections 59-1331 through 59-1334 , Idaho Code, shall again commence. The suspended benefit, as adjusted pursuant to section 59-1355 , Idaho Code, shall resume upon subsequent retirement, along with a separate allowance computed with respect only to that salary and service credited during the period of reemployment. Any death benefit that becomes payable under the suspended benefit shall be payable under section 59-1361 (2), Idaho Code. Any death benefit that becomes payable with respect to salary and service accrued during the period of reemployment shall be payable under section 59-1361 (3), Idaho Code, if the member dies during the period of reemployment.

(3) If a retired member who is receiving a benefit that is not reduced under section 59-1346 , Idaho Code, and who has been retired for more than six (6) months again becomes employed as defined in this section and section 59-1302 (14)(A)(b), Idaho Code, as a result of being elected or appointed to an elective public office other than an office held prior to retirement, the retired member may elect to continue receiving benefits and not accrue additional service, in which event no contributions shall be made by the member or employer during such reemployment and any benefit payable on behalf of such member shall continue.

(4) If a retired school employee, as defined in section 59-1302 (31A), Idaho Code, who retired on or after age sixty (60) years or a retired public safety officer returns to work as a school employee as defined in section 59-1302 (31A), Idaho Code, and is receiving a benefit that is not reduced under section 59-1346 , Idaho Code, again becomes an employee as defined in this section and section 59-1302 (14), Idaho Code, as a result of returning to employment with a school district as provided in section 33-1004H , Idaho Code, the retired member may elect to continue receiving benefits and not accrue additional service, in which event no contributions shall be made by the member during such reemployment and any benefit payable on behalf of such member shall continue.

(5) If a retired member as defined in section 59-1302 (27), Idaho Code, who retired prior to January 1, 2026, and retired on or after age fifty-five (55) years again becomes an employee as defined in this section and in section 59-1302 (14), Idaho Code, as a result of returning to employment with an employer as defined in section 59-1302 (15), Idaho Code, the retired member may elect to continue receiving benefits and not to accrue additional service. In such a situation, no contributions shall be made by the member during the reemployment and any benefit payable on behalf of such member shall continue.

(6) A retired member as defined in section 59-1302 (27), Idaho Code, with police officer status as defined in section 59-1303 , Idaho Code, or with firefighter member status as defined in section 59-1302 (16), Idaho Code, who retires on or after age fifty (50) years and who, within thirty (30) days after retiring, again becomes an employee as defined in section 59-1302 (14), Idaho Code, with an employer participating in PERSI, or who is guaranteed reemployment with an employer participating in PERSI, shall be considered to have continued in the status of an employee and not to have separated from service. As a result of returning to employment with an employer as defined in section 59-1302 (15), Idaho Code, the retired member may elect to continue receiving benefits and not to accrue additional service. In such a situation, contributions shall be made by the member and employer during the reemployment at the rate established by PERSI for police officer or firefighter members, as applicable, and any benefit payable on behalf of such member shall continue. The provisions of this subsection shall be null, void, and of no force and effect after June 30, 2027. However, the other provisions of this section shall remain in full force and effect and shall remain applicable to all employment.

(7) It is the responsibility of each employer to immediately report to the retirement board the employment of any retired member so that benefit payments can be suspended as provided in this section. If an employer fails to properly report the employment of a retired member and it results in the retirement board making benefit payments that should have been suspended, the employer shall, in addition to paying delinquent employee and employer contributions from the date of eligibility, also be responsible for repaying to the retirement board the benefit payments made to the retired member that should have been suspended, plus interest. The employer may then recoup such payments from the retired member.

(8)(a) A retired member may provide services as a bona fide volunteer for an employer as defined in section 59-1302 , Idaho Code, after retirement. Such service shall not be considered reemployment of a retired member, and a retired member who is a bona fide volunteer will not be considered to be an employee as defined in section 59-1302 (14), Idaho Code.

(b) A retired member shall not claim to be a bona fide volunteer unless such retired member qualifies as a bona fide volunteer pursuant to this subsection. Any retirement allowance payments received by a retired member who is not a bona fide volunteer shall be repaid to the system, such retired member’s retirement shall be negated, and the provisions of subsection (1) of this section shall apply.

(c) For the purposes of this subsection, "bona fide volunteer" means an individual who performs service without promise, expectation, or receipt of any type of compensation, who is not performing a kind of work or service that would normally be compensated by an employer, and who is not classifying employment conduct as volunteering in an effort to avoid being considered an employee as defined in section 59-1302 (14), Idaho Code.