For those Gem State residents and legislators confused by the Public Employee Retirement System of Idaho (PERSI) and its operations, help is now available in the form of a video presentation prepared by the agency to save money for the state.
In an effort to educate incoming legislators on how money is pumped into the state retirement system and the manner in which benefits are accrued and then paid out, the PERSI oversight board decided earlier this year to produce a video outlining the functions of the retirement system. The video was an alternative to sending Don Drum, PERSI’s executive director, to meet with the 105 senators and representatives across the state, which likely would have been more costly than producing the 14-minute video.
The agency has yet to say how much production for the clip cost, though PERSI spokeswoman Patrice Perow told IdahoReporter.com that most of the video work was done in-house to save money.
Appearing in the video are Drum, chairman of the oversight board Jody Olson, and PERSI’s chief investment officer Bob Maynard. Together, the trio explains how market fluctuations affect the health of the state’s retirement system and the rules by which the agency must administer the program.
The video does not, however, delve into the different payout systems PERSI could use to deliver payments to beneficiaries. The retirement system utilizes a defined-benefit plan, an arrangement that delivers participants a pre-arranged payment in retirement. The other option available is the defined-contribution plan, a setup in which employees pay a certain amount and the payout is determined by investment returns on those dollars.
Drum, at a meeting of the oversight board in October, said that the point of the video is to educate and not advocate for either payout system.
Here is the full video, available through the state’s YouTube channel:
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This is all smoke & Mirrors for a troubled agency, set up to benefit the fat cats and legislature. Serve for 8 years and get a huge retirement.
Use PERSI’s formula: Eight years as a legislator at $17000 per year ($1417 per month) x multiplier of 2% x 8 years. So at age 65 the legislator can start receiving a retirement of $226.72 per month.
The 10% or so of salaries that the State and local agencies pay into PERSI as employers is money that could have been used to pay more to the employees. So the employees make 10% less, still have to contribute 6%, but end up with a reliable (although small) retirement.
PERSI is not the problem!