PENSIONS: Key piece of puzzle
Your recent article on teacher pensions regrettably omitted one fact that I’m sure failed to register with your readers. How about a very large THANK YOU to the Idaho taxpayers that allow PERSI to earn its high marks? The contribution percentage paid by all the government taxing districts (to include police, fire, county and state employees, politicians, to name a few) into PERSI comes on the backs of every taxpayer in the state.
Contrary to the 10.39 rate stated in the article, the current general employer contribution rate is 11.32 percent (persi.idaho.gov). Although scheduled but postponed this year because of their recovering investments, PERSI employer contributions for the lowest tiered benefactors was to increase to more than 12 percent. Surely this burden cannot be maintained. One can only imagine what the cost of any consumer good would be if private industry would provide their employees with such a generous contribution percentage toward their retirement benefits. I believe you would be hard pressed to find an average contribution over 3 percent, and that would be into a 401(k). No cost of living increases there!
This little known fact of contributions rates are ignored when public employees negotiate for ever-increasing pay scales. Something that should be considered as the cost of our government employees escalates. The current environment is to pay these individuals what they would comparatively be compensated in the private sector. In those negotiations let’s not forget to realign their benefit packages along those same lines.
PETER WARD
Spirit Lake
Your recent article on teacher pensions regrettably omitted one fact that I’m sure failed to register with your readers. How about a very large THANK YOU to the Idaho taxpayers that allow PERSI to earn its high marks? The contribution percentage paid by all the government taxing districts (to include police, fire, county and state employees, politicians, to name a few) into PERSI comes on the backs of every taxpayer in the state.
Contrary to the 10.39 rate stated in the article, the current general employer contribution rate is 11.32 percent (persi.idaho.gov). Although scheduled but postponed this year because of their recovering investments, PERSI employer contributions for the lowest tiered benefactors was to increase to more than 12 percent. Surely this burden cannot be maintained. One can only imagine what the cost of any consumer good would be if private industry would provide their employees with such a generous contribution percentage toward their retirement benefits. I believe you would be hard pressed to find an average contribution over 3 percent, and that would be into a 401(k). No cost of living increases there!
This little known fact of contributions rates are ignored when public employees negotiate for ever-increasing pay scales. Something that should be considered as the cost of our government employees escalates. The current environment is to pay these individuals what they would comparatively be compensated in the private sector. In those negotiations let’s not forget to realign their benefit packages along those same lines.
PETER WARD
Spirit Lake