STATEMENT OF PURPOSE
RS27559 / HCR030
The Board of the Public Employees Retirement System of Idaho (PERSI) met in December and approved
a 6.54% Cost of Living Adjustment (COLA) for retired plan participants. This includes a 1% mandatory
adjustment, a 0.7% current-year discretionary adjustment (based on 2019 CPI-U), and a 4.76% application
of "retroactive" adjustments that the Board is also allowed to apply.
These non-mandatory adjustments have a cost to PERSI of $374,400,000. By statute, the Idaho Legislature may
adjust the Board's direction. This must be done by the 45th day of the legislative session through a Concerrent
Resolution. Otherwise, the discretionary adjustments become effective on 1 March 2020.
We should not be approving such a large COLA. Employer and employee contribution rates are at record highs.
Even after a record bull market, PERSI is still below 100% funded. And we could experience a choppy future.
This Concurrent Resolution strikes a balance by allowing this year's discretionary adjustment of 0.7% to go
forward but holds off on giving the 4.76% in "retroactive adjustments. Added to the 1% mandatory adjustment,
this would provide a 1.7% COLA.
FISCAL NOTE
The cost of this year's 0.7% discretionary adjustment is $73,200,000. This represents a savings from the Board's
recommendation of $301,200,000
Contact:
Representative Steven Harris
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/06/2020, 10:10 AM