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Friday, May 26, 2006

Message in a Bottle

PERS has kindly sent me the "actuarial reduction factors" that will be used in the Strunk/Eugene recovery process. These apply to "window retirees" and serve to represent the repayment factors to be applied to amounts PERS deems to have "overpaid" such retirees. These are *not* mortality factors; instead they combine existing mortality expectations with an assumed 2% COLA on the money being repaid. This has the effect of spreading out the repayment over a longer period of time than mortality tables would suggest but insure that at the expected age of demise (joint or individual), the owed money would be repaid by including the lost interest. It is more complicated, but this method insures that retirees will have less money taken out monthly than they would if PERS simply took the amount owed and divided it by the number of months of single or joint life expectancy remaining. PERS still does not have "actuarial reduction factors" for members who elected "refund" options. Hopefully soon. In the meantime, check back to this post later for a link to the "actuarial recovery factors" I have. I will post them soon.

On an unrelated topic, I have, apparently, overstayed my welcome on Robert Gourley's SEIU retiree's mailing list. Although I never belonged to SEIU or any union (I was unclassified), Robert let me have "guest" status on his list. I had the temerity to suggest that Dawn Morgan did not testify before the Strunk Special Master hearings in a way that favored PERS members (either she wasn't permitted to do so, wasn't asked, or chose not to do so. The reason remains unclear.), Mr. Gourley decided that I no longer deserved "guest" status and he "unsubscribed" me from his list. Strangely, Mr. Gourley continues to cc me on emails related to things I've posted here and elsewhere and so I'm still privy to his various rants about me and other members who post on the Oregon PERS Discussion Group. I want to thank Mr. Gourley for allowing me a window into the inner workings of SEIU politics while I had the opportunity to do so. For me, however, the loss of my occasional email from Mr. Gourley's list spares me from email whose noise to signal ratio was rapidly approaching 100:1.

6:00 pm. Here are the Option 2 & 2A Actuarial Reduction Factors and the Option 3 & 3A Actuarial Reduction Factors. Finally, here are the Option 1 Actuarial Reduction Factors. To use these "factors", you need to determine what you "owe" PERS (my calculator will give you a ballpark figure, but the collection date has changed and the amount you owe will be different. It's a good start though). To use the factors, find the appropriate "factor" in the tables. Then divide what you owe to PERS by this factor and the result is your monthly reduction in benefits or your monthly payback amount. Be sure to use your age and your beneficiary's exact age (in years only) as of 8/31/07. Hope this helps.

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