Stating findings of the Legislature and amending the retroactive cost of living adjustment approved by the PERSI board at its December 2019 meeting.

The Board of the Public Employees Retirement System of Idaho (PERSI) met in December and approved a 6.54% Cost of Living Adjustment (COLA) for retired plan participants. This includes a 1% mandatory adjustment, a 0.7% current-year discretionary adjustment (based on 2019 CPI-U), and a 4.76% application of "retroactive" adjustments that the Board is also allowed to apply. Thesenon-mandatoryadjustmentshaveacosttoPERSIof$374,400,000. Bystatute,theIdahoLegislaturemay adjust the Board's direction. This must be done by the 45th day of the legislative session through a Concerrent Resolution. Otherwise, the discretionary adjustments become effective on 1 March 2020. We should not be approving such a large COLA. Employer and employee contribution rates are at record highs. Even after a record bull market, PERSI is still below 100% funded. And we could experience a choppy future. This Concurrent Resolution strikes a balance by allowing this year's discretionary adjustment of 0.7% to go forward but holds off on giving the 4.76% in "retroactive adjustments. Added to the 1% mandatory adjustment, this would provide a 1.7% COLA.