I just returned from the OEA rally and OEA press conference. Greg Hartman was the principal attraction at both. Hartman expressed disappointment at the Court's ruling in the City of Eugene case. He asserted that their decision to dismiss the case as "moot" was a political decision that evaded having to come to grips with the legal questions raised in the case. In effect, the court "punted" by issuing a non-ruling that allows PERS to implement the "settlement agreement" and codifies into law the 11.33% earnings crediting for 1999. He expects that PERS will adjust active and inactive member account balances for the overcredit and then turn around and credit 8% for 2003 and 2004. The effect on active and inactive members will be more-or-less a "wash" from CURRENT conditions. For retirees, especially "window" retirees, the picture is much more murky. Hartman believes that language in the Strunk opinion protects retirees from "take backs", but isn't certain that PERS necessarily sees things that way. He noted that additional litigation is forthcoming and that more legal claims may be added to the White case, pending in Multnomah County Circuit Court.
In "mooting" the claims, the Court did NOT (contrary to what the City of Portland claims in its emailed "take") rule that the intervenors had no standing. What the court ruled is that there was no "live controversy" to litigate and that there was no remedy the court could provide for issues that had already been decided in Strunk, the Legislation, and the settlement. In short, the Court held that the issues had been settled in other venues. Justice Durham wrote a strongly worded dissent, which was joined by Justice Riggs. They both disagreed with the majority in this case and held that there were controversies to be ruled on and remedies to offer. But, the court's decision (5 - 2) is final and the City of Eugene case (aka Lipscomb) is no more.
It will probably take all parties at least a week to review the decision and to begin to formulate new strategies. In the meantime, the "settlement" is real and is now effective and fully implementable. It just isn't clear how it might apply to retirees, if it applies at all. That will take time to sort out. Until then, feel free to use my "Lipscomb Calculator" (see links at left) to determine what the WORST CASE scenario might be. I'm currently leaving it unchanged - the "best case" remains - until I have a better idea of what PERS plans to do about/to/with retirees.
Time for a long bike ride in some heavy traffic.
P.S. Tim wins again. The "hit counter" crossed 200,000 shortly before 11:00 a.m. today and Time was the one who missed by only 24 hours. When you get home Tim, email me your address so I can send you that next gift card.
In "mooting" the claims, the Court did NOT (contrary to what the City of Portland claims in its emailed "take") rule that the intervenors had no standing. What the court ruled is that there was no "live controversy" to litigate and that there was no remedy the court could provide for issues that had already been decided in Strunk, the Legislation, and the settlement. In short, the Court held that the issues had been settled in other venues. Justice Durham wrote a strongly worded dissent, which was joined by Justice Riggs. They both disagreed with the majority in this case and held that there were controversies to be ruled on and remedies to offer. But, the court's decision (5 - 2) is final and the City of Eugene case (aka Lipscomb) is no more.
It will probably take all parties at least a week to review the decision and to begin to formulate new strategies. In the meantime, the "settlement" is real and is now effective and fully implementable. It just isn't clear how it might apply to retirees, if it applies at all. That will take time to sort out. Until then, feel free to use my "Lipscomb Calculator" (see links at left) to determine what the WORST CASE scenario might be. I'm currently leaving it unchanged - the "best case" remains - until I have a better idea of what PERS plans to do about/to/with retirees.
Time for a long bike ride in some heavy traffic.
P.S. Tim wins again. The "hit counter" crossed 200,000 shortly before 11:00 a.m. today and Time was the one who missed by only 24 hours. When you get home Tim, email me your address so I can send you that next gift card.
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