PERSI Legislation Update from Rep. Trail

[Tom Trail <RepTrail@infotrail.com>]

PERSI Legislation  -- The Senate passed HBs 510 and 511 late this afternoon.  I
spoke with the Governor at noon and he is ready to sign the legislation.  This
marks the first major improvement in the PERSI retirement system in about six
years.   Rep. Bert Marley and I were the Co-sponsors of the legislation.  Rep.
Maynard Miller worked diligently for more than two years on the development of
the legislation, and we thank him for his effort which will benefit 60,000
employees and 20,000 retirees.

HB 510 will raise the retirement benefit formula from 1.917% to 2.0% for
general members and from 2.225% to 2.3% for PERSI firefighters/police
officers.  This will improve retirement benefits by 4.3%.

HB 511 established gains sharing.  This is a way for excess investment gains
from the PERSI fund to be distributed to the employees, employers and retirees
in a form that will benefit each group the most.  The bill will add a Defined
Contribution (DC) component to the PERSI plan for the gains sharing
distributions for active members.  A DC plan is a supplemental retirement
savings plan, such as 401 (k) plan.  If there are excess investment gains in
fiscal the 2000 the plan will be effective beginning in 2001.  PERSI will be
communicating more details in the near future.

This is a significant piece of legislation which makes the State of Idaho much
more competitive with surrounding states in terms of pension plans.






Rep. Trail, district 5

 I would like constituents to e-mail, phone, fax, or write me with their
ideas, comments and recommendations.  

by phone: (at the House Communications Center)

208-332-1000 switchboard
208-332-1202 desk
208-334-5397  (fax)

by email:

ttrail@house.state.id.us      My email in Boise
infocntr@lso.state.id.us      Information desk at the Capitol
            
Address:

Rep. Tom Trail
Idaho State Legislature
State Capitol Building
P.O. Box 83720
Boise, ID 83720-0038

Legislative newsletters and additional materials and information can be
located on my web
and home page http://www.infotrail.com/idaho