While the Public Employee Retirement System of Idaho (PERSI) is a comprehensive state-sponsored retirement system, it does offer a specific 401(k) plan as an optional savings vehicle for its members. Therefore, PERSI itself is not solely a 401(k), but it includes a prominent 401(k) option.
Understanding the PERSI 401(k) Offering
PERSI encompasses various retirement benefits, and among them is a dedicated 401(k) plan designed to complement or supplement other retirement savings. This allows active members to contribute to a tax-advantaged retirement account.
The specific plan offered is known as the PERSI Choice 401(k). It is also referred to as The Choice Plan 401(k). This is an optional defined contribution retirement savings plan that is available to active members within the PERSI system.
Key Aspects of the PERSI Choice 401(k)
To clarify the nature of this specific offering, here's a breakdown of its key characteristics:
| Aspect | Description |
|---|---|
| Plan Name | PERSI Choice 401(k) (also referred to as The Choice Plan 401(k)) |
| Plan Type | Optional Defined Contribution Retirement Savings Plan |
| Eligibility | Available to active members |
| Purpose | Designed to allow members to save additional funds for retirement |
How the PERSI Choice 401(k) Works
As a defined contribution plan, the PERSI Choice 401(k) means that the amount contributed by the employee (and sometimes the employer) is defined. The final retirement benefit depends on the investment performance of the funds within the account. Participants typically have choices regarding how their contributions are invested, and the account grows tax-deferred until retirement.
This optional plan provides flexibility for members who wish to actively manage their retirement savings and potentially accumulate a larger nest egg beyond their primary PERSI benefits, which often include a defined benefit component.
