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CLOUDY Temp: 45 °F Wind: CLM at 0 mph Wednesday, February 26, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend February 16, 2003 PERS fixes won’t come easily, say legislators In the scheme of things, double-dipping is a sideshow in the legislative battle to reduce the towering $15 billion Public Employees Retirement System debt. Legislators anticipate they can make a dent in the debt through a few bills that could be enacted by the end of March. But with so much at stake for the 300,000 beneficiaries of the state retirement program, there is the potential for major clashes over how to bring about even deeper cuts. "Just about everything we can do involves litigation," said Republican Rep. Tim Knopp of Bend, who heads the House PERS Committee. The Legislature plans to tackle some of the easier fixes to PERS before moving on to trickier problems that will require much negotiation and may result in litigation. Legislators have announced plans that likely will be endorsed by both houses and the governor to reduce the 12-member PERS board to five in an attempt to make it more fiscally responsible. "Essentially, we fired the PERS board, which should have happened a long time ago," said Democratic Rep. Alan Bates of Ashland. Both houses also have passed legislation that would place a cap of 8 percent on earnings, cutting the overall debt by about $900 million. It is awaiting the governor’s signature. Another bill is expected this week that would update the mortality tables used by PERS. The current mortality tables were created in 1979, but the average life span has increased by four years since then. By correcting this, the state could save up to $1.5 billion. Beyond that, legislators expect it will be a tough fight to alter benefit plans to further reduce the debt. "We can’t make our decisions based on the fear of litigation," said Republican Rep. Dennis Richardson of Central Point, who is on the PERS committee. Still, Richardson said legislators are meeting with lawyers to discuss ways to avoid potential lawsuits that could tie up legislation for years in the courts. Legislators also are wrestling with ways to lessen the burden on schools, counties and other agencies that are paying more into PERS. "The benefits are just sucking valuable dollars out of the system," said Richardson. "For instance, a few months ago I was told PERS is costing 10 teaching positions in Ashland." Republican Rep. Rob Patridge of Medford said the PERS problem will be solved only if unions, public employees and others realize that everybody needs to work together on a solution. Patridge is willing to forego his own retirement plan under PERS to put his money where his mouth is. "I’m willing to surrender my rights and switch to a new system," he said. Matt Evans, executive director of the nonprofit group Oregon Tax Research, said the Legislature has the power right now to enact the kind of laws needed to bring PERS in line. However, cutting existing benefits could prove too much for the Legislature to stomach, he said. "In order to do what needs to be done, it will take benefits away from people who have already retired," he said. Legislators have a lot at stake, trying to negotiate an end to the PERS crisis without creating a new crisis in its wake. However, if legislators negotiate their way effectively through this crisis, Evans said it would go a long way toward restoring public confidence in the Legislature. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy Website Feedback A D V E R T I S E R S