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Oregon Road Conditions & Cams Email Story to a Friend October 22, 2005 PERS board works out payback plan Some retirees would lose a percentage of benefits as system pays for losses of 2001, ’02 By DAMIAN MANN Mail Tribune Retired public employees in Jackson County could see benefits drop by 2 to 9 percent under a proposal of the state retirement system following a recent court ruling. David Crosley, spokesman for the Public Employee Retirement System, said his board is considering a reduction that could affect 27,000 retirees statewide. Another 5,500 could get higher benefits. "We are going to start letting members know there is an effect on their benefits next April," he said. The PERS board met Friday to discuss a repayment plan that would be spread out over the life of each retiree. "I’d hate to see them single out some of us that have retired," said Rich Thelen, retired Jackson County archivist. Advertisement But with so many issues yet to be resolved, he said it wasn’t worthwhile to speculate about what PERS is going to do. "I have no idea at this point how it’s going to play out," he said. Marion County Circuit Court Judge Paul Lipscomb ruled that the PERS board should have put more of the pension fund's 1999 investment earnings into reserves instead of giving it to employees. On Aug. 11, the Oregon Supreme Court ruled that an appeal of Lipscomb's decision was moot, effectively upholding the judge's ruling. Crosley said that with two court rulings, PERS believes it is on solid legal ground in coming up with a plan that would reduce benefits, saving $1.6 billion over the next 24 years. Crosley said the court ruled that PERS should have withheld more of the 1999 investment income, which totaled $7.4 billion. Instead, PERS gave some retirees a 20 percent rate of return on the investments. The court ruled it should have been 11.33 percent. Under one possible scenario given by PERS, a retiree earning an average of $2,335 a month in April 2004 could see benefits drop by $64, or 2.74 percent. PERS doesn’t always get high rates of return on investments. For instance, in the economic downturn of 2001 and 2002, it lost $2.7 billion and $3.4 billion respectively. But in 2003, the investments gained $8.8 billion. The Supreme Court also ruled that PERS shouldn’t have withheld a cost-of-living increase from April 2000 to May 2004. Crosley said that returning the cost-of-living will partially offset the reduction from the investment income. Rick Levine, retired president of Rogue Community College, said, "I really don’t know how it’s going to affect me." He said the matter will likely return to the courts, adding that from his reading of the ruling, he believes it could not affect pensions that were already guaranteed to employees. No matter what the outcome, Levine said, "It’s not anything in my control." Thelen also said he wasn’t sure what would happen to his retirement income, but said, "I’d rather not have benefits reduced. I’d rather see them increased." Reach reporter Damian Mann at 776-4476, or e-mail PERS board works out payback plan ">[email protected] . 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 www.bingo.com Home Security Systems Trunks, Footlocker dvd-r Distance Education Computer Security Ztech Media Hosting Sports Equipment Student Loans Online Pharmacy tcg student loan consolidation Online Casino Reviews Myspace Home Equity Loans Windermere Van Vleet Deep Muscle Stimulator Discount Hotel Reservations Southern Oregon Loans Online Casino News Online Bingo Entertainment Guide Salvia Divinorum Online Casino Fundraisers Advertisement s