AARP lauds Senate move on retiree COLA
The AARP of Idaho has released a statement lauding the state Senate for killing HCR 42, the measure to block a scheduled 1 percent cost-of-living increase next month for state retirees. “Without this COLA, state retirees living on the brink would see tougher times ahead,” said Jim Wordelman, state director. He said a new AARP survey has found that Idaho seniors are struggling; click below to read the AARP's full statement.
Tuesday, February 23, 2009
AARP APPLAUDS SENATE FOR SAYING NO WAY TO NO COLA FOR STATE RETIREES
Harsh Bill to Deny State Retirees Modest 1% COLA Stopped in Senate Commerce and Human Resources Committee
BOISE, Idaho – Already seeing costs for the basics while retirement savings dwindle, Idaho state retirees who were bracing for the worst received some good news today – they’ll receive a much needed 1% cost of living adjustment this year. The Senate Commerce and Human Resources Committee, chaired by Senator John Andreason, cancelled a hearing on the bill today, effectively stopping the measure in it’s tracks. AARP commends the Senators on the committee for saying ‘NO WAY’ to ‘NO COLA.’
“AARP applauds Senator Andreason and the members of the committee for taking a stand for state retirees and ensuring Idaho continues to value those who have contributed so much to this state,” said Jim Wordelman, State Director for AARP in Idaho.
The bill (HCR 42) was the first time state lawmakers have tried to block a recommended increase by the Public Employees Retirement System of Idaho (PERSI). COLAs do not cost the state any revenue; rather the funds are already in the PERSI fund, which has been rated one of the strongest retirement funds in the nation.
“Without this COLA, state retirees living on the brink would see tougher times ahead,” added Wordelman.
An AARP survey released earlier today found that many older Idahoans are struggling and some would have been hit particularly hard by no COLA for state retirees this year. According to the survey, one third of saw retirement savings and investments decrease, while 71% stated the cost of living has increased (71% reported increases in grocery prices, 64% in utility costs, and 53% in health care related expenses).
Economic impact of a COLA for state retirees:
COLA’s contribute to state and local economies, as every dollar paid out in benefits is estimated to generate $2.36 in economic impact. A 1% COLA totaling $4.28 million, could bring as much as $10.1 million to state and local economies. To see a county by county breakdown of retirees and the of a COLAs impact on local economies, click here: http://bit.ly/au1yVI
The full survey, Economic Well Being in Idaho, can be found online at: http://www.aarp.org/research/surveys/money/econ/trends/articles/id_ewb_10.html
AARP is Idaho’s largest membership organization with over 180,000 members.
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