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<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>When we came here in 1987, PERSI
(a defined benefit plan) was the only retirement plan for UI employees. Sometime
in the early 1990s (I don’t remember the exact date), all new UI salaried
employees (faculty and non-faculty exempt) were put on ORP, which is a defined
contribution plan. Hourly employees remain on PERSI to this day. Replacing
defined benefit plans with defined contribution plans saves the employer money
and protects them from future unfunded obligations. It shifts more of the
responsibility and all of the risk of saving for retirement onto the employee.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>At the time the switch was made
from PERSI to ORP, PERSI participants who had been here for 6 years or less could
either stay with PERSI or switch to ORP, but if they switched to ORP they
forfeited all their PERSI contributions—another subsidizing of PERSI by ORP.
It would be interesting to know what percentage of those newer employees
switched to ORP. <o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>It’s complicated. I think perhaps
it makes sense for hourly employees to be on PERSI, since hourly employees tend
to be the lower-paid employees at the UI and PERSI offers more retirement
security. However, I have never heard of any reason as to why ORP participants
should be required subsidize PERSI in perpetuity.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:225.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>Judy<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> Donovan Arnold
[mailto:donovanjarnold2008@yahoo.com] <br>
<b>Sent:</b> Friday, December 11, 2009 12:38 PM<br>
<b>To:</b> vision2020@moscow.com; JLBrown<br>
<b>Subject:</b> Re: [Vision2020] Good Economic News<o:p></o:p></span></p>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0>
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<td valign=top style='padding:0in 0in 0in 0in'>
<div>
<p class=MsoNormal>Judy,<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal>Perhaps you can explain to us why people are on the ORP
instead of PERSI?<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal>Thanks,<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal>Donovan Arnold<br>
<br>
--- On <b>Fri, 12/11/09, JLBrown <i><jlbrown@turbonet.com></i></b>
wrote:<o:p></o:p></p>
</div>
<blockquote style='border:none;border-left:solid #1010FF 1.5pt;padding:0in 0in 0in 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-bottom:5.0pt'>
<p class=MsoNormal style='margin-bottom:12.0pt'><br>
From: JLBrown <jlbrown@turbonet.com><br>
Subject: Re: [Vision2020] Good Economic News<br>
To: vision2020@moscow.com<br>
Date: Friday, December 11, 2009, 6:36 PM<o:p></o:p></p>
<div id=yiv19824803>
<div>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'>Visionaries,</span><o:p></o:p></p>
</div>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
</div>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'>This is good news for PERSI
participants.<span style='color:#1F497D'> </span> 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.<span style='color:#1F497D'> </span> ORP participants have
been required to subsidize PERSI since 1990.<span style='color:#1F497D'> </span> Especially
with PERSI doing so well, the time is ripe to end this subsidy.</span><o:p></o:p></p>
</blockquote>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'>Judy</span><o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'><span style='font-size:
10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>Moscow-Pullman <i>Daily
News</i><o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'><b><span
style='font-size:16.0pt'>Faculty Senate calls for end to retirement plan
subsidy</span></b><o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>Published on: November 4,
2009<o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>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.<o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>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.<o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>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.”<o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>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.<o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'>“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.<o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText style='margin-right:189.75pt'> <o:p></o:p></p>
<p class=MsoPlainText> <o:p></o:p></p>
<p class=MsoPlainText> <o:p></o:p></p>
<p class=MsoPlainText> <o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>-----Original
Message-----<br>
From: vision2020-bounces@moscow.com [mailto:vision2020-bounces@moscow.com] On
Behalf Of Tom Trail<br>
Sent: Friday, December 11, 2009 6:51 AM<br>
To: vision2020@trumpet.fsr.net<br>
Subject: [Vision2020] Good Economic News</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Visionaries:</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>One
has to look hard for good economic news in Idaho these days. I just</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>talked
to Don Drum, the Executive Director of PERSI--Idaho Public Employees</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Retirement
Fund. The information he shared with me is current as of today.</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The
PERSI Fund stands at $10.5 billion which is ahead of the total when</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>the
market dropped. From July 1, 2009 the Fund has a return of $15.8%</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>which
is the best return in PERSI history.</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>PERSI
retirees will receive a 1% COLA which will be effective March 1st.</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Employers
have been expecting a contribution rate increase for the</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>coming
year, but Don told me that the Fund is performing so well that</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>there
will probably be no increase at all.</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>That's
my one good glimmer of good news.</span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p>
<p class=MsoPlainText><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Rep.
Tom Trail</span><o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:12.0pt'><br>
-----Inline Attachment Follows-----<o:p></o:p></p>
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