[Vision2020] Good Economic News

[JLBrown]

Visionaries,

 

This is good news for PERSI participants.  However, UI employees who are on
the University's Optional Retirement Program (ORP), which is subject to
market fluctuations, have taken a hard hit as a result of this recession.
ORP participants have been required to subsidize PERSI since 1990.
Especially with PERSI doing so well, the time is ripe to end this subsidy.

 

Judy

 

 

Moscow-Pullman Daily News

Faculty Senate calls for end to retirement plan subsidy

Published on: November 4, 2009

 

University of Idaho Faculty Senators want the state's university presidents,
board of education members and faculty leadership to pressure the Idaho
Legislature to drop a requirement that members of the UI's Optional
Retirement Plan subsidize the Public Employees Retirement System of Idaho.

 

Senators passed a resolution Tuesday afternoon strongly recommending the
aforementioned parties ask the Legislature to end the subsidy and redirect
the PERSI-bound money into accounts of ORP participants.

 

The resolution's text states the Legislature in 1990 directed that a portion
of the employer-paid contributions reserved for ORP members be paid to
PERSI, even though ORP participants do not benefit from PERSI.  It also says
ORP accounts are subject to market fluctuations, while PERSI members do not
experience such a risk, leading to "unfair and unequal treatment of OPR
participants."

 

Senate Chairman Jack Miller said if the Legislature eventually does away
with the subsidy, PERSI may need to seek additional funding in the form of a
rate increase.  However, he said the subsidy's elimination wouldn't affect
the benefits of current PERSI enrollees.

 

"All it would be doing, in my estimation, is taking away a subsidy that
should never have been there in the first place," he said.

 

 

 

 

 

 

 

 

-----Original Message-----
From: vision2020-bounces at moscow.com [mailto:vision2020-bounces at moscow.com]
On Behalf Of Tom Trail
Sent: Friday, December 11, 2009 6:51 AM
To: vision2020 at trumpet.fsr.net
Subject: [Vision2020] Good Economic News

 

Visionaries:

 

One has to look hard for good economic news in Idaho these days.  I just

talked to Don Drum, the Executive Director of PERSI--Idaho Public Employees

Retirement Fund.  The information he shared with me is current as of today.

 

The PERSI Fund  stands at $10.5 billion which is ahead of the total when

the market dropped.  From July 1, 2009 the Fund has a return of $15.8%

which is the best return in PERSI history.

 

PERSI retirees will receive a 1% COLA which will be effective March 1st.

Employers have been expecting a contribution rate increase for the

coming year, but Don told me that the Fund is performing so well that

there will probably be no increase at all.

 

That's my one good glimmer of good news.

 

Rep. Tom Trail

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