Document text
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 Rogue Valley gubernatorial candidate blasts Gov. Brown on climate change ... Historical Society executive director stepping down ... Police say Grants Pass man admits to 50 vehicle thefts in Rogue Valley ... Rogue Valley gubernatorial candidate blasts Gov. Brown on climate change ... Historical Society executive director stepping down ... Police say Grants Pass man admits to 50 vehicle thefts in Rogue Valley ... OTHER VIEWS Other Views: Give treasurer more control of PERS investments Comment By The (Coos Bay) World MailTribune.com By The (Coos Bay) World Posted Jun. 16, 2015 at 12:01 AM By The (Coos Bay) World Posted Jun. 16, 2015 at 12:01 AM » Social News State Treasurer Ted Wheeler is a frustrated man these days. Investing funds for the Public Employees Retirement System is one of his numerous responsibilities. Last month's state Supreme Court decision overturned the majority of PERS cuts that the Legislature passed in 2013, meaning pension liabilities will increase by about $5 billion. That money will have to come from local government and school district coffers, meaning less money for city and school needs. And here's where Wheeler's frustration comes in. He has less than optimal control over how PERS investments are made to make the fund grow. For the third year in a row, Wheeler has tried to sell legislators his "Investment Modernization Act." The act would allow the treasury to pay fewer Wall Street investment managers and instead perform many management functions more cheaply in-house. But the Legislature doesn't like the idea. Lawmakers are still bristling over the Cover Oregon fiasco last year. Gov. John Kitzhaber's administration allowed the health insurance project to fail spectacularly, and lawmakers aren't eager to cede any additional oversight authority. That's too bad. Outside audits prepared for the Treasury over the last three years show potential savings of $80 million to $90 million a year in costs to the fund. Reinvested over time those savings would accrue to about $2.8 billion over 20 years. According to Wheeler's spokesman, Michael Cox, if the Investment Modernization Act were passed, "we are confident we could achieve immediate savings of $22 million per year, which would accrue to nearly $1 billion over 20 years." What Wheeler is asking for is the autonomy and flexibility to act on investment markets similar to that exercised by the $50 billion Alaska Permanent Fund Corp., the entity that generates that famous $1,000 average annual dividend to each and every Alaska resident. The state-owned corporation is run by a six-member board of trustees and a staff of about 35 managers, all of whom operate independently from the legislature. All lawmakers do is sit back and watch the fund earn on average of 10 percent annually. We think Oregon lawmakers should follow suit. Give the treasurer some broken-field running room. We think they could learn to enjoy sitting back and simply watching a home-managed fund grow impressively, year after year. We know taxpayers would prefer that. So would PERS recipients. By The (Coos Bay) World MailTribune.com By The (Coos Bay) World Posted Jun. 16, 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... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site 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. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501