Retirees call for Idaho to restore pension’s cost-of-living adjustments

BOLISE (Idaho Capital Sun) — Some retired government employees in Idaho are calling for the state to restore inflation-adjusted cost of living adjustments through the state’s pension program.

The newly formed nonprofit, called the Retired Public Employees of Idaho, says it’s hoping to strengthen the Public Employee Retirement System of Idaho, which is commonly called PERSI.

In a news conference Thursday at the Idaho State Capitol, the group’s spokesperson, former Boise Police Chief Mike Masterson, said the state’s bumps to pension payouts for retired government employees haven’t kept up with rising living costs.

Between 2019 and 2024, PERSI retirement benefits only rose 8% while inflation rose by more than 22%, he said. In 2023, for example, PERSI’s board has only approved a cost-of-living adjustment of around 1%, the Idaho Press reported.

“Something isn’t right,” Masterson told reporters. “A strong pension system is an investment in Idaho’s economy. 85% of retirees choose to remain in Idaho, and they receive 88% of the benefits that are paid. That money is largely reinvested in Idaho’s local and state economies.”

PERSI is Idaho’s state retirement pension program for many state and local government employees. The program serves around 78,000 people, including roughly 56,000 retirees, and has about $22 billion in funds, according to a legislative presentation late last year.

The group of retired public employees is also calling for the Legislature to add a retired public employee to PERSI’s board, Masterson told reporters.

PERSI could not be immediately reached for comment.

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