AARP fights attempt to block a COLA increase for Idaho public service retirees
From John Curry, March 1, 2010
COLAs contribute to state and local economies, as every dollar paid out in benefits is estimated to generate $2.36 in economic impact. A 1% COLA totaling $4.28 million could bring as much as $10.1 million to state and local economies.
AARP Applauds Senate for Saying No Way to No COLA for State Retirees
Harsh Bill to Deny State Retirees Modest 1% COLA Stopped in Senate Commerce and Human Resources Committee
BOISE, Idaho, Feb. 23 /PRNewswire-USNewswire/ -- Already seeing costs for the basics soar while retirement savings dwindle, Idaho state retirees who were bracing for the worst received some good news today – they'll receive a much needed 1% cost of living adjustment this year. The Senate Commerce and Human Resources Committee, chaired by Senator John Andreason, cancelled a hearing on the bill today, effectively stopping the measure in it's tracks. AARP commends the Senators on the committee for saying 'NO WAY' to 'NO COLA.'
"AARP applauds Senator Andreason and the members of the committee for taking a stand for state retirees and ensuring Idaho continues to value those who have contributed so much to this state," said Jim Wordelman, State Director for AARP in Idaho.
The bill (HCR 42) was the first time state lawmakers have tried to block a recommended increase by the Public Employees Retirement System of Idaho (PERSI). COLAs do not cost the state any revenue; rather the funds are already in the PERSI fund, which has been rated one of the strongest retirement funds in the nation.
"Without this COLA, state retirees living on the brink would see tougher times ahead," added Wordelman.
An AARP survey released earlier today found that many older Idahoans are struggling and some would have been hit particularly hard by no COLA for state retirees this year. According to the survey, one third saw retirement savings and investments decrease, while 71% stated the cost of living has increased (71% reported increases in grocery prices, 64% in utility costs, and 53% in health care related expenses).
Economic impact of a COLA for state retirees:
COLAs contribute to state and local economies, as every dollar paid out in benefits is estimated to generate $2.36 in economic impact. A 1% COLA totaling $4.28 million could bring as much as $10.1 million to state and local economies. To see a county by county breakdown of retirees and the COLA's impact on local economies, click here: http://bit.ly/au1yVI
The full survey, Economic Well Being in Idaho, can be found online at: http://www.aarp.org/research/surveys/money/econ/trends/articles/id_ewb_10.html
AARP is Idaho's largest membership organization with over 180,000 members.
posted by Kathie Bracy at 5:02 PM
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