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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Mail Tribune 100, Feb. 9, 1916 ... Oregon and Alaska lift suspension of troubled insurance carrier Moda ... Oregon refuge occupier releases videos mocking FBI ... Mail Tribune 100, Feb. 9, 1916 ... Oregon and Alaska lift suspension of troubled insurance carrier Moda ... Oregon refuge occupier releases videos mocking FBI ... OTHER VIEWS Other Views: Court ruling means PERS reform is dead Comment By Statesman Journal MailTribune.com By Statesman Journal Posted May. 9, 2015 at 12:01 AM By Statesman Journal Posted May. 9, 2015 at 12:01 AM » Social News Give up on trying to "reform" the Public Employees Retirement System. That was the unspoken subtext of the Oregon Supreme Court's unanimous ruling last week, which struck down most of the PERS reforms made by the Legislature in 2013. The court ruled that PERS regulations at the time of employment and retirement are an ironclad contract with the public employees covered by those provisions. Changes can be made, but they will apply only to pension calculations based on employees' pay that is earned after the time of those changes. Sound confusing? It will be a mess for PERS going forward, as future pensions will allow different cost-of-living allowances for different years of public employment. We supported the PERS reforms but thought they did not go far enough. However, the Supreme Court sided with PERS recipients that a contract is a lifetime contract, even when lawmakers might not realize they're creating one. No more changes There is little chance that any future PERS reforms could pass constitutional muster. State Senate President Peter Courtney confirmed that in a meeting with the Statesman Journal Editorial Board hours after the Supreme Court released its decision. PERS reforms are off the table, for now and probably forever. "This isn't a flimflam decision. It's a well-thought-out decision," he said. Workers vs. retirees In effect, the decision pits current and future employees against current and future retirees. Governments must pay retirees for the cost savings that now have been deemed unconstitutional. The state, cities, counties, school districts and other entities — could owe as much as $870 million during the 2017-19 budget cycle alone. That money can only be found by increasing government revenues, decreasing services or both. During the Great Recession, and before these short-lived reforms, school districts and government agencies were cutting jobs to find sufficient money for their PERS obligations. Unless the Legislature or the public provide more revenue, Oregon will face that situation again. More complex pensions The ruling creates a pension-system nightmare, with different levels of cost-of-living increases applying to current employees' work performed before and after the reforms took effect. For example, employees hired since August 2003 are covered by the Oregon Public Service Retirement Plan, a hybrid, stripped-down version of the earlier PERS. When they retire, those employees likely will get far smaller benefits while bearing the societal baggage of being linked with PERS. One positive aspect of the court ruling is that taxpayers no longer must provide special benefits for retirees who have moved out of state. The answer Yes, there is an answer to the court's ruling, and it involves Gov. Kate Brown and the Legislature. But it has little to do with PERS itself. Oregon government is most dependent on the revenue from jobs — the income taxes paid by individuals, small businesses and, to some extent, corporations. Now, government faces an increased — restored, actually — PERS obligation that could top $4 billion over the lifetimes of the affected retirees. If the Legislature and the governor want to meet those obligations without sacrificing services, they must help Oregon businesses prosper, so they can create more jobs, especially middle-income jobs. Thus the overriding issue for the 2015 Legislature becomes strengthening the economy and supporting businesses — now and in the long term — which in turn will help enlarge the state coffers. The only way for Oregon to achieve and maintain an economic advantage is for it to have the friendliest, healthiest business climate along North America's Pacific Rim. By Statesman Journal MailTribune.com By Statesman Journal Posted May. 9, 2015 at 12:01 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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