April 4, 2004
The Oregonian, “Fund ties cloud PGE
bid”
Conflict-of-interest issues
continue to rise between the Oregon Investment
Council’s Diana Goldschmidt and her husband Neil
Goldschmidt. The former Governor of Oregon plans
to invest about $830,000 of his own money in
Oregon Electric Utility, a holding company
created by Texas Pacific Group to execute a
buyout of Portland General Electric (Bankrupt
Enron currently owns PGE).
If acquired, Neil Goldschmidt
would serve as board chairman of Oregon Electric
Utility. Earlier, a unanimous vote by the Oregon
Investment Council gave Texas Pacific Group $300
million of Oregon Public Employees Retirement
System money.
The Oregon Investment Council
has now given Oaktree Capital Management $75
million to join Texas Pacific Group’s buyout
effort of PGE from Enron.
“The Oregon council’s latest
commitment brings the public pension’s total
investment in various Oaktree funds to $473
million. It has $950 million in Texas Pacific
funds.”
April 5, 2004
www.oregoned.org, “Planning a Summer
Retirement? Take Note:”
“New money match calculation
could reduce retirement benefits for members
retiring after July 1st, 2004. This
new calculation could reduce retirement benefits
for PERS members participating in the variable
account program.”
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April 8, 2004
The Oregonian, “Oregon university
system chief will get $180,000 severance”
“The State Board of Higher
Education will pay the outgoing chancellor of
Oregon’s university system about $180,000 in a
severance deal to end his contract two years
before it was set to expire.”
“Former Gov. Neil
Goldschmidt, the board president, and Geri
Richmond, the vice president, agreed to write
‘amicable and supportive’ reference letters for
Jarvis, who is a finalist for the presidency of
San Jose State University, part of the
California State University system.”
The Oregonian,
“Superintendent search a relative bargain”
“Portland Public Schools has
spent $81,000 to date recruiting a new
superintendent, thousands less than a fruitless
search cost the district two years ago,
officials said Wednesday.”
“Two years ago, the district
paid a different consultant $125,000 in a search
that brought four finalists to Portland for
meetings across the city. All four pulled out of
the search and used the visits to leverage
promotions, higher pay or other jobs.”
The Oregonian,
“State treasurer faces long wait on NYSE post”
“Oregon State Treasurer
Randall Edwards is among 110 candidates vying
for a seat on the New York Stock Exchange’s
board of directors, but he’ll have to wait a
year to see whether he’s elected.”
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April 12, 2004
“Temporary Rule” issued by
PERS Board for members choosing to return to
work in a PERS covered position after retirement
within the first six months. Temporary Rule
states members who return to work after
retirement may work no more than 599 hours
(originally 1,039 hours) within the first six
months after retirement without having to pay
back any benefits.
Update: Total Lump-Sum Retirement Option
and Returning to Work (From
PERS)
At its April 12, 2004
meeting, the PERS Board adopted a temporary
Oregon Administrative Rule
that defines the standards for returning
to work in a PERS-covered position within six
months of retirement for members who chose the
total lump-sum option. The rule clarifies that
those members can work 599 hours or less in that
time period without having to repay benefits, if
the member is designated by his/her employer as
a casual, emergency, or seasonal worker as
defined in the rule.
The temporary rule is
retroactive to January 1, 2004. At its June 10,
2004 meeting the Board is expected to consider a
permanent rule that would be retroactive to
January 1 2003, the date the total lump sum
option became available.
Once the six-month period
following retirement ends, the member can work
unlimited hours without having to repay
benefits, but the employer must begin making
contributions, as the member will again become
an active member.
PERS has not tracked the
hours of members who retired with the total lump
sum option and returned to work for a
PERS-covered employer. If PERS receives
information that a member has exceeded the
600-hour limit, we will evaluate and resolve
each instance on a case-by-case basis depending
on the facts and circumstances of the member’s
individual situation.
Based on statute, members who
retire under any option other than the total
lump-sum option can return to work for a
PERS-covered employer under the 1039 rule
without having to repay benefits. Under that
rule, a member may work up to 1,039 hours in a
calendar year.
A member can cancel his/her
retirement up to the date of the first benefit
check and can change his/her retirement option
up to 60 days after the date of the first
benefit payment.
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April 14, 2004
The Oregonian, “Pension board adds $1
billion to reserve”
Pension Board adds $1 Billion
to reserve. In addition, agrees to use $1.7
Billion to decrease a deficit that led to Tier
One Regular Accounts being frozen.
Tier Two members are notified
that they will receive 21.5 percent to their
pension accounts for 2003. For those invested in
variable accounts, they will receive 34.7
percent for 2003.
April 26, 2004
Former Governor Neil
Goldschmidt submits his higher education board
resignation letter to Governor Kulongoski.
April 27, 2004
The Oregonian, “Some PERS pensions
near pay”
“‘No other statewide pension
system in the nation has benefits that match the
PERS retirements in 2003,’ said Jim Voytko,
former PERS executive director who prepared a
report on other state plans for the Legislature
before he resigned in October.”
“‘Those benefit levels are
substantially higher on average than any of the
pension systems I studied,’ Voytko said Monday.”
“‘In pension systems that
base benefits on a formula, the most common
provides 45 percent after 30 years of service,’
said Dallas Salisbury, president and chief
executive officer of the Employee Benefit
Research Institute, a nonprofit in Washington,
D.C. ‘The most generous plans offer 75 percent
after 30 years,’ he said.”
“‘In the private sector, the
more lucrative pension plans aim to provide 75
percent after 30 years when combined with Social
Security,’ Salisbury said.”
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April 30, 2004
Former Governor Neil
Goldschmidt informs Texas Pacific Group chairman
David Bonderman of his pending resignation as
chairman of newly created Oregon Electric
Utility, due to health reasons.
May 3, 2004
PERS
News Release, “Paul R. Cleary to be
Recommended as Executive Director for the Oregon
Public Employees Retirement System”
“The Chairman
of the Board of the Oregon Public Employees
Retirement System announced today that he will
recommend Paul R. Cleary as Executive Director
when the PERS Board meets May 11.”
May 5, 2004
The Oregonian, “Oregon asks court for
priority to recoup its Enron money”
“Oregon is trying to move
closer to the front of the line of creditors in
the Enron bankruptcy.”
“The state’s claims in the
Enron bankruptcy include investments by the
Oregon Public Employees Retirement Fund, which
had to sell Enron shares at a great loss.”
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May 12, 2004
Statesman Journal, “New chief of
service district to get pay raise”
“Maureen Casey will get an 18
percent salary boost in July when she takes over
the top job at the Willamette Education Service
District.”
“Casey, who is being promoted
from deputy superintendent, will be paid
$116,000 per year, the service-district board
decided Tuesday. That is about the same as
outgoing Superintendent Skip Liebertz.”
“Also Tuesday, the board
agreed to hire Liebertz back on contract for one
month after his retirement, which he has moved
up to June 1.”
“Liebertz said he decided
to retire a month early on the advice of Public
Employees Retirement System officials, who
he said will announce a number of changes to the
system effective July 1.”
“‘They’re recommending people
retire June 1 and continue on a contract basis,’
Liebertz said.”
Oregon PERS, “Paul Cleary Named
Executive Director”
“The PERS
Board has appointed Paul R. Cleary as PERS
Executive Director. Cleary is expected to start
on or around June 1, 2004. The Director serves
at the discretion of the Board and is
responsible for the PERS administrative staff.”
(Note: Cleary received a substantial pay
increase over previous PERS Executive Director
James Voytko, who abruptly resigned last
October.)
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All information is from
sources believed to be accurate and
reliable. Please consult your advisor before
making any decisions regarding PERS.
