1-2004A. EMPLOYER CONTRIBUTIONS — AMOUNTS — RATES — AMORTIZATION. (1) The amount of the employer contributions shall consist of the sum of a percentage of the salaries of active members to be known as the "normal cost" and a percentage of such salaries to be known as the "amortization payment." The rates of such contributions shall be determined by the retirement board on the basis of assets and liabilities as shown by the annual actuarial valuation, and such rates shall become effective no later than July 1 of the second year following the year of the most recent actuarial valuation, and shall remain effective until next determined by the retirement board.
(2) The normal cost rate shall be computed to be sufficient, when applied to the actuarial present value of the future salary of the average new justice or judge entering the system, to provide for the payment of all prospective benefits in respect to such justice or judge which are not provided by the justice’s or judge’s own contribution.
(3) The amortization rate shall not be less than the minimum amortization rate computed pursuant to subsection (5) of this section, unless a one (1) year grace period has been made effective by the retirement board. During a grace period, the amortization rate shall be no less than the rate in effect during the immediately preceding year. A grace period may not be made effective if more than one (1) other grace period has been effective in the immediately preceding four (4) year period.
(4) Each of the following terms used in this chapter shall have the following meanings:
(a) "Effective date" means the date the rates of contributions based on the valuation become effective pursuant to subsection (1) of this section.
(b) "End date" means the date twenty-five (25) years after the valuation date.
(c) "Projected salaries" means the sum of the annual salaries of all justices and judges.
(d) "Scheduled amortization amount" means the actuarial present value of future contributions payable as amortization payment from the valuation date until the effective date.
(e) "Unfunded actuarial liability" means the excess of the actuarial present value of (i) over the sum of the actuarial present values of (ii), (iii) and (iv) as follows, all determined by the valuation as of the valuation date:
(i) All future benefits payable under this chapter;
(ii) The assets then held by the funding agent for the payment of benefits under this chapter;
(iii) The future normal costs payable in respect of all then active justices and judges;
(iv) The future contributions payable under section 1-2004, Idaho Code, by all current active justices and judges;
(f) "Valuation" means the most recent annual actuarial valuation.
(g) "Valuation date" means the date of such valuation.
(5) The minimum amortization payment rate shall be that percentage, calculated as of the valuation date, of the then actuarial present value of the projected salaries from the effective date to the end date which is equivalent to the excess of the unfunded actuarial liability over the scheduled amortization amount.
History:
[1-2004A, added 2012, ch. 330, sec. 7, p. 919.]