PERSI offers great news for pensioners and current employees
Since the performance of Public Employee Retirement System of Idaho (PERSI) impacts us all in one way, shape or form, the news from the pension group is encouraging.
On the heels of an extraordinary 17.2 percent annual return on PERSI’s base-plan investments, the PERSI Board voted to recommend a 4 percent Cost of Living Adjustment (COLA) for PERSI retirees – which, if approved, would mark the first increase above 1 percent since 2008. The recommendation is submitted to the legislature in late December for approval, rejection of amendment.
The Idaho Legislature has never rejected or amended a PERSI Retirement Board COLA recommendation.
According to Jody Olson, PERSI retirement board chairman, strong investment performance, solid funded status and confidence in the sustainability of the fund all factored into the recommendation.
Citing those same factors, the board unanimously voted to eliminate two remaining contribution rate increases by employees and employers, leaving rates as they are now (11.32 percent for employers and 6.79 percent for employees) – lower rates than existed 15 years ago.