Legislative Report (Vol. XXV No. 13) April 7, 2006
The House this week accepted the IPERS language as passed earlier in the session by the Senate. The bill increases contribution rates for employees and employers by 0.5% a year over a four year period. The rate increase would take effect in FY 2008. The original House bill from last session called for the same changes in rates but was for an eight year period as opposed to the four years under the Senate compromise.
The bill also includes the following measures: no benefit enhancements until the IPERS fund has enough assets to cover 100 % of its liability; and controls over “spiking,” or the benefit increases some employees receive because their salaries dramatically increased during their last three years of service.
I am sending out the report early this week for two reasons. First my computer needs to go in for some needed work the rest of the week and second because not much is going on while the behind the scenes negotiations continue. Therefore I would like to use the remainder of this weeks’ report for a different reason. I have been sending out this report for many years and maybe it is time to determine if you as the recipients desire any changes in the future. I would appreciate any comments, if you have any, on how you might want the format or content changed in future years. I will read any comments and make changes that might prove beneficial. Thank you for your input.