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SUNNY Temp: 86 °F Wind: W at 9 mph Thursday, July 24, 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 28, 2003 Retirees respond PERS recipients say they don’t have it so rosy, despite recent public scrutiny of double dippers By DAMIAN MANN Mail Tribune Government retirees worry that misconceptions and public vilification of the Public Employees Retirement System could jeopardize their benefits. "It bothers me that they’ve decided to make PERS the scapegoat and make us sound like the bad guy," said Shirley King, a Medford resident and PERS retiree. Legislators this session are attempting to rein in an estimated $15.8 billion in long-term PERS debt, in part by approving legislation directly affecting the earnings of future retirees. In 2000, 2.5 percent of new retirees received 105 percent of their salaries in PERS benefits, a statistic that has alarmed legislators and other Oregonians. Also garnering a lot of attention are a small number of retired government employees, so-called "double dippers," who are rehired at close to their former pay and receive two checks. King doesn’t fall into either category. She collects 67 percent of her $4,389.46-a-month salary. Her benefits have fallen because her retirement money is in an account tied to the stock market. "I lost $170 a month, and nobody ever says anything about that," she said. "I have no idea how you make over 100 percent. The only people who seem to be getting that much are the managers and superintendents." Don Smith of Medford earned $3,300 before retirement from a state agency and collects $1,150 in PERS benefits, about a third of his original salary. "I hope they leave the people who have retired alone," he said, although he supports some changes to PERS. Medford resident Bob Scheelen decided to retire this month from his post as assistant regional administrator for a child protection agency about two years earlier than planned because of the governor’s threat to radically change the retirement system. "I do think that PERS and PERS retirees are being scapegoated for a much larger problem across the state," he said. He had received a salary of $5,486 a month but expects to get roughly 50 percent of that when his PERS benefits start in about two months. Scheelen, who continues to work as a county employee as manager of the West Medford Family Center, said certain aspects of PERS should be changed. "You could argue the (PERS) board should have set aside more for contingency funds but the state should have done so as well," he said. "The PERS board is not any more derelict than the Legislature." Jack Sollis, secretary-treasurer of Oregon PERS Retirees Inc., a nonprofit organization that represents 8,600 retirees, thinks politicians and the media have made too much out some high-profile retirees who have collected 105 percent of their former salaries. That’s possible in instances when an employee has worked more than 30 years for the government and also invested in accounts that did particularly well when the stock market soared. "It only represents 2.56 percent of the retirees," said Sollis. "That’s a miniscule amount." In 1992, the average monthly retirement paid to the 2,957 people who retired was $1,554, he said. By 2001, the 3,763 new retirees received an average $2,072. "So much for the big fat pensions," he said. Sollis said the Legislature created the problems with PERS and now wants to blame everyone else, including retirees. "The Legislature created this mess," said Sollis. "And they’re the ones who voted themselves retirement packages as good as fire and police." Sollis said the legislators’ plans to reform PERS are mostly doomed to defeat because they will be confronted with a rash of lawsuits from government workers’ unions. However, he did think an 8-percent cap on earnings signed by the governor recently shouldn’t hit any snags. But tampering with the mortality table to reflect longer lifespans will directly affect benefits and spark litigation, he said. Apart from a few cosmetic changes to the PERS system, Sollis believes it will remain mostly untouched. "They’re pretty much screwed, but they don’t want to admit it," he said. "It’s like being hoisted by your own petard." Republican state Rep. Dennis Richardson of Central Point said there are no proposals before the Legislature that would tamper with existing benefits of retirees. He agreed with Sollis’ assessment that it would difficult to change existing benefits. "We can’t necessarily cure bad decisions of the past," he said. At he same time, Richardson, a member of the House Committee on PERS, said although some bills affecting PERS will inevitably lead to court challenges, the Legislature has no choice but to push forward with reforms. "No matter what we do somebody’s going to take issue with it," said Richardson. He will also back legislation that takes legislators out of the PERS system. "I want to avoid any conflict of interest and to lead by example," he said. 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 | Terms & Conditions Website Feedback A D V E R T I S E R S SPECIAL SECTIONS Rogue Valley Auto Finder Rogue Valley Job Finder --> Rogue Valley Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times