Interest
crediting for 2003 delayed
Confusion level remains high for members at
today’s PERS Board Meeting.
PERS Help
Update – March 29, 2005
Tier One members hopes had been raised after
the recent Supreme Court decision. Members
have been anxiously waiting for their
guaranteed “assumed rate” of 8% for 2003.
Patience has now worn thin with the PERS
board’s decision to wait until the Oregon
Supreme Court rules on the Lipscomb decision
before paying members for 2003. Board
members, their attorneys and others believe
the benefits from the Strunk ruling will be
“washed” with the results from the Lipscomb
case.
For members retiring this year, PERS will
continue to use the pre-Strunk calculation.
Tier One members should receive 8% in their
Regular Account, 12.96% for the Variable
Account and 3.4% for their IAP in 2004.
In addition, member statements were
scheduled to be delivered in May. However,
the board has now decided to delay mailing
statements until the Lipscomb decision is
made. The Supreme Court is under no
obligation to render their decision anytime
soon.
In related news, the Retirement Information
Management System (RIMS) will require
substantial reprogramming (198,000 hours)
and cost to deal with the implementation of
Strunk and Lipscomb decisions. An estimated
completion date of August 2006 is projected
with adjustments to members due on or after
September 2006.
All
information from sources deemed to be true
and reliable.
