[Vision2020] Good Economic News

[Donovan Arnold]

Judy,
 
Perhaps you can explain to us why people are on the ORP instead of PERSI?
 
Thanks,
 
Donovan Arnold

--- On Fri, 12/11/09, JLBrown <jlbrown at turbonet.com> wrote:


From: JLBrown <jlbrown at turbonet.com>
Subject: Re: [Vision2020] Good Economic News
To: vision2020 at moscow.com
Date: Friday, December 11, 2009, 6:36 PM








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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