[Vision2020] PERSI update from Rep. Trail

[ttrail at moscow.com]

Constituents:

This is a letter from Alan Winkle, PERSI Director, to me regarding the 
current status of PERSI.  Many constituents have asked about the status 
of COLAS and this decision will be made by the PERSI Board next Tuesday.

Rep. Tom Trail

>
>Hi Tom:  Well, as we have been saying - "It's ugly out there."  Our 
>funding fluctuates daily, as you might expect.  Generally we are hanging
>between    -20% and -25% investment return.  At -20% (assuming that is
>where we end the year) the actuarial model projects about a 70% funded 
>ratio compared to 93.3% for the year ending July 1, 2008.  Obviously 
>-25% return is lower than that.  The amortization period at a -20% 
>return is over 100 years so the model stops there.
>
>As far as a COLA - that is a tough one for the Board.  They have been 
>working on it for several months and will make a decision at the 
>Tuesday meeting next week.  The CPI increased 5.4% is the second 
>largest increase since 1983.  With a cost of about $220 million I don't 
>think they will be able to do the full COLA.  However, our sense is 
>they want to do something more than the minimum 1% but what that means 
>remains to be seen.
>
>I hope that answers your questions.
>
>Just to let you know, I will be retiring at the end of this month and 
>Don Drum is the new Executive Director.  He is all geared up and ready 
>to go for the legislative session so please feel free to contact him on 
>any PERSI questions.  How's that for a set up?  His direct line is 
>208-334-2455.
>
>It has been a pleasure working with you over the years.  I wish you the 
>best in the future.
>
>Alan H. Winkle  |  Executive Director  |  PERSI   | 
>>Helping Build a Secure Retirement for Idaho Public Employees



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