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51 °F Forecast | Road Cams Saturday, March 12, 2005 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion Tempo AP News Weather Classified Archives Site Map SPECIAL SECTIONS Since We Asked Outdoor Journal Menu Guide How To Guide Health Readers' Choice Real Estate Showcase Real Estate Guide Joy Magazine Homelife Magazine Wedding Guide Passport to the Rogue Valley SHOP OUR VALLEY AutoFinder HomeFinder JobFinder Classified Place an ad TOP JOBS EXTRA NIE Personals Movie Times TV Times E The People Volunteer Moving here? eSouthernOregon CUSTOMER SERVICE FAQ's Advertise with us Home Delivery Employment Contact Us Media Kit Oregon Road Conditions & Cams Email Story to a Friend March 9, 2005 Retirees applaud ruling but admit uncertainties By DAMIAN MANN Mail Tribune Retirees praised the Oregon Supreme Court for striking down key reforms in the state’s public employee pension system, but local officials wondered about the long-term impacts on government budgets. "It’s momentous news for us," said Randy Iverson, fire chief for Fire District 3. "We just don’t know what it means." Iverson and other government officials were already braced for hikes in Public Employees Retirement System payments in July. With Tuesday’s court ruling, they expect to pay still more. Retirees applauded the ruling. "I’m really happy they came down in support of the contract," said June Buck, who retired in 2003 from Medford schools after 27 years as a teacher. Advertisement Buck said she will likely benefit from the change, she’s just not sure how much. She hasn’t been receiving cost-of-living increases or the 8 percent earnings guarantee that the ruling reinstated Tuesday. "I was pretty upset when they (the Legislature) did that," said Buck of those reforms. "That was one of the reasons I retired, because I thought they were going to be hurting us even more." Buck, who gets about two-thirds of her former salary in her pension, thinks the PERS system has gotten a bad rap because of a few high-profile retirees who receive at or near their previous salary in retirement benefits. Though pleased with the ruling, she said she’s also concerned about the effect on school districts and other government agencies that will be forced to cut budgets to pay for retired workers’ pensions. "I’m understandably concerned about the budgets, but it’s unfair to single out a small group of people," she said. Iverson, the fire chief, said the court decision will benefit employees who have retired and those thinking about retirement. But it’s also going to pinch his budget. The fire district was preparing to pay a 111 percent hike in PERS payments — up from $197,500 this fiscal year to $418,000 in July — out of a total projected budget of $9.6 million. With the court ruling, he expects that percentage to bump still higher. "It creates a significant unknown," he said. Dave Kanner, deputy county administrator, also said it’s too early to tell the impact on the county’s budget. "The reality is it will be weeks or months before we ... know what this means to us in dollars and cents," he said, adding that it’s tough to determine because the court upheld some reforms while rejecting others. The county has socked away $3.4 million in a special account, anticipating that PERS reforms might be struck down. The county had already anticipated that PERS payments would go up next fiscal year. Rick Levine, former president of Rogue Community College, said he can see both sides of the ruling. Levine retired in 2003 and will likely benefit from the court ruling, although he said "I haven’t really thought about it." Levine earned $120,000 annually at RCC. "My retirement is nowhere near that," he said. He expected the court’s decision based on what he knows about contract law. And, as a former president, Levine said the ruling could have a negative impact on school budgets, already hurt by years of cuts. Officials at some local school districts contacted Tuesday said they aren’t sure of the impact, although one predicted expenses going up. "We’ve just learned the facts, not the impact of the decision," said Rogue River School Superintendent Charles Hellman. The analysis will take at least a week or two, estimated Galen Anderson, Medford schools’ director of business and facilities. "It will take time to work through," he said. Hellman and Anderson said contribution percentages recently set by the PERS board for the next two bienniums should remain the same. Overall, though, Hellman expects his district’s PERS liability to increase. "We just don’t know how much the liability will change," he said. Bob Miller, fire chief for Fire District No. 4 in Shady Cove, said that with four employees on his staff, he won’t see much of an effect on his budget. "It’s not as devastating as it might be for some large employers," he said. "But most of us have been bracing for this." Miller said health insurance rates are of more concern for his fire district, costing about $1,000 a month for each employee. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune reporter Anita Burke contributed to this report. Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback Student Loan Consolidation Conference Calls - $50/Month Home Security Systems Trunks, Footlocker, Trunk, Footlockers home equity loans helzberg Slippers Student Loans afsa teleconferencing Memory Foam Mattress Advertisement s