Advertise Here

Eye On Boise

PERSI fund dropped 25 percent

PERSI, the Public Employee Retirement System of Idaho, dropped from $12 billion to $8.5 billion in the past year, losing $3.5 billion. “We’re down 25 percent for calendar year ‘08,” Jody Olson, chairman of the PERSI board, told JFAC this morning. In fiscal year 2008, the fund was down just 4.3 percent. Rather than change contribution rates, the PERSI board voted in December to adopt the minimum cost-of-living increase for retirees in the coming year, 1 percent. “Up until last year, our retirees had full purchasing power from the time they retired,” Olson told lawmakers.

The cost-of-living increase each year for PERSI, by law, can be set by the board at anywhere from 1 percent, if the consumer price index goes up at least 1 percent, up to either 6 percent or the CPI. The CPI increase was 5.4 percent. Don Drum, PERSI executive director, said a contribution rate increase likely will be sought next year. PERSI was 105 percent funded at the beginning of 2008, and 93 percent funded at the end of the year, Drum said. “We’re anticipating that losses are cyclical and the market will rebound,” he told lawmakers. “We’re doing fairly well in comparison to our peer groups.”

Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus
« Back to Eye On Boise

Get blog updates by email

About this blog

Betsy Z. Russell covers Idaho news from The Spokesman-Review's bureau in Boise.

Named best state-based political blog in Idaho for 2013 by The Fix

Latest comments »

Read all the posts from recent conversations on Eye On Boise.

Search this blog
Subscribe to this blog
Advertise Here