Bill description: HCR 30 saves taxpayers more than $300 million by reducing optional PERSI Cost of Living Adjustment increases.
Does it increase government redistribution of wealth? Examples include the use of tax policy or other incentives to reward specific interest groups, businesses, politicians, or government employees with special favors or perks; transfer payments; and hiring additional government employees. Conversely, does it decrease government redistribution of wealth?
Last December, the board of the Public Employees Retirement System of Idaho (PERSI) approved a 6.54% Cost of Living Adjustment (COLA) payment increase for retired plan participants. This includes a 1% adjustment required under state law and a 0.7% adjustment the board granted under its own discretion. The board also used its discretion to grant a 4.76% increase, based on a formula that considers increases the board could have approved in the past but did not.
PERSI is not able to meet all the obligations it has already, yet its board wants to spend $374,400,000 on optional COLA increases. HCR 30 limits that optional increase to $73,200,000, thereby saving $301,200,000.
PERSI is funded at least in part through government spending which, like all government spending, is ultimately funded through taxes. It is, then, a significant redistribution of wealth, and placing a limit on PERSI payouts would lessen the amount of redistribution in the state.
(+1) Does it increase government spending (for objectionable purposes) or debt? Conversely, does it decrease government spending or debt?
PERSI is still not fully funded, which means that the optional COLA increase is funded at least partially through debt.
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