A House committee introduced legislation Wednesday that would block a nearly 6.5 percent cost of living adjustment for Idaho state retirees, barely three weeks before the increase is set to take effect.
Rep. Steven Harris, R-Meridian, sponsored the measure. He wants to reduce the increase to 1.7 percent, which would match last year’s inflation rate.
“With the current economic conditions, I think we should be cautious,” he told the House Commerce and Human Resources Committee. “If there’s an economic downturn, it would put direct pressure (on the state retirement plan) and possibly require an increase in contribution rates.” The Public Employee Retirement System of Idaho has about 160,000 members, including 48,000 retirees who currently receive benefits. As of Jan. 17, it had $19.9 billion in assets.