2000 Legislation
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HOUSE CONCURRENT RESOLUTION NO. 37 – PERSI, 100% funded/reserve

HOUSE CONCURRENT RESOLUTION NO. 37

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HCR037......................................by COMMERCE AND HUMAN RESOURCES
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Stating findings of the Legislature and
stating the intent of the Legislature that the Public Employee Retirement
System continue to be fully funded at a 100% funded ration with a
stabilization reserve sufficient to absorb normal market fluctuations,
within one standard deviation, without a contribution rate increase, as
determined by the Public Employee Retirement Board.
                                                                        
02/04    House intro - 1st rdg - to printing
02/07    Rpt prt - to Com/HuRes
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/15    3rd rdg - ADOPTED - 66-0-4
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Jaquet, Jones,
      Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher,
      Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer,
      Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone,
      Taylor, Trail(Miller), Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Callister, Hornbeck, Pischner, Tilman
    Floor Sponsor - Lake
    Title apvd - to Senate
02/16    Senate intro - 1st rdg - to Com/HuRes
02/25    Rpt out - to 10th Ord
02/28    10th ord - ADOPTED - voice vote
    Title apvd - to House
02/29    To enrol
03/01    Rpt enrol - Sp signed
03/02    Pres signed
03/03    To Secretary of State

Bill Text


 HCR037
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                             HOUSE CONCURRENT RESOLUTION NO. 37
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                               A CONCURRENT RESOLUTION
  2    STATING FINDINGS OF THE LEGISLATIVE COUNCIL INTERIM COMMITTEE  ON  THE  PUBLIC
  3        EMPLOYEE RETIREMENT SYSTEM,  AFFIRMING THE GOAL OF THE RETIREMENT BOARD TO
  4        MAINTAIN  A  FULLY-FUNDED  SYSTEM  AT  A ONE HUNDRED PERCENT FUNDED RATIO,
  5        ENDORSING THE INVESTMENT POLICIES OF THE BOARD, AND STATING THE INTENT  OF
  6        THE  LEGISLATURE THAT THE PUBLIC EMPLOYEE RETIREMENT SYSTEM CONTINUE TO BE
  7        FULLY-FUNDED AT A ONE HUNDRED PERCENT FUNDED RATIO  WITH  A  STABILIZATION
  8        RESERVE  SUFFICIENT TO ABSORB NORMAL MARKET FLUCTUATIONS, WITHIN ONE STAN-
  9        DARD DEVIATION, WITHOUT A CONTRIBUTION RATE INCREASE, AS DETERMINED BY THE
 10        BOARD.
                                                                        
 11    Be It Resolved by the Legislature of the State of Idaho:
                                                                        
 12        WHEREAS, the Legislative Council Interim Committee on the Public  Employee
 13    Retirement  System  was charged by the 1999 Idaho Legislature in House Concur-
 14    rent Resolution No. 21 to  undertake  and  complete  a  study  of  the  Public
 15    Employee  Retirement  System  and  options which could provide enhancements or
 16    alternatives to existing provisions; and
 17        WHEREAS, H.C.R. No. 21 directed the committee to report its findings, rec-
 18    ommendations and proposed legislation to the Second  Regular  Session  of  the
 19    Fifty-fifth Idaho Legislature; and
 20        WHEREAS,  the  committee  has  conducted  a thorough review of the system,
 21    including an in-depth examination of the  current  and  anticipated  financial
 22    status  of  the  retirement fund and the investment policies of the Retirement
 23    Board; and
 24        WHEREAS, the committee finds that the retirement fund  has  produced  out-
 25    standing  returns  under  the investment policies of the board, resulting in a
 26    fully-funded system for the first time since the inception of PERSI; and
 27        WHEREAS, the committee recommends adoption of a resolution  affirming  the
 28    board's  goal  of  maintaining  a  fully-funded system at a 100% funded ratio,
 29    endorsing the investment policies of the board, and stating the intent of  the
 30    Legislature that the system continue to be fully-funded at a 100% funded ratio
 31    with  a stabilization reserve sufficient to absorb normal market fluctuations,
 32    within one standard deviation, without a contribution rate increase, as deter-
 33    mined by the board.
 34        NOW, THEREFORE, BE IT RESOLVED by the members of the Second  Regular  Ses-
 35    sion  of  the  Fifty-fifth Idaho Legislature, the House of Representatives and
 36    the Senate concurring therein, that the goal of the Retirement  Board  of  the
 37    Public  Employee Retirement System to maintain a fully-funded system at a 100%
 38    funded ratio is hereby affirmed, that the investment policies of the board are
 39    hereby endorsed and that it is the intent of the Legislature that  the  Public
 40    Employee  Retirement System continue to be fully-funded at a 100% funded ratio
 41    with a stabilization reserve sufficient to absorb normal market  fluctuations,
 42    within one standard deviation, without a contribution rate increase, as deter-
 43    mined by the board.

Statement of Purpose / Fiscal Impact


                 STATEMENT OF PURPOSE
                      RS09502C1

As recently as July 1, 1995 the Public Employee Retirement 
System of Idaho (PERSI) had an unfunded liability in excess 
of One Billion dollars. Based on contribution rates existing 
at that time it was projected to take 22 years to achieve 
fully funded status. Due to excellent market performance, as 
of July 1, 1999 the system was fully funded (approximately 
Six Billion dollars) and held a surplus of approximately one 
standard deviation (700 Million dollars). 

The purpose of this Concurrent Resolution is to affirm that it 
is the intent of the legislature that the Public Employee 
Retirement System of Idaho shall remain fully funded and that 
a reserve sufficient to absorb normal market fluctuations 
shall be provided.

                               FISCAL IMPACT

There is no impact on the general fund. This resolution expresses 
the will of the legislature regarding prudent financial management 
of the Public Employee Retirement System of Idaho.

           CONTACT:      Representative Dennis Lake     332-1156

STATEMENT OF,PURPOSE/ FISCAL NOTE                       HCR 37