As expected, the item in the PERS Board agenda on the assumed interest rate was in response to Ted Wheeler, State Treasurer, letter to Paul Cleary. In Mr. Cleary's response to Mr. Wheeler, included in the PERS Board packet for next Tuesday's meeting, is a detailed schedule of the NORMAL cycle for considering an adjustment to the assumed interest rate. As predicted, Cleary is simply informing Mr. Wheeler and the Board of what the process is and how the statutes compel compliance. According to the schedule, the rate considerations will take place next Spring with a target date of adopting whatever assumed rate is appropriate at the July 2013 Board meeting. This means, as I predicted, that PERS intends to follow the statutes and any changes in the assumed rate will occur normally and go into effect on January 1, 2014 for members and will make up the new employer rates calculated for the 2015-17 biennium.
Cleary also infers that this would also allow PERS time to figure out how to implement any plan changes that MIGHT be adopted by the Legislature as well.
I think that, for now, this should give members some breathing room to make intelligent decisions about when or if to retire.
Since we don't know what the Legislature is planning to do, that is still an open question and affected members should be watching closely for any changes introduced during the 2013 Legislative session.
P.S. The Board packet is posted on the regular PERS web site under "Board". You can download a copy of the entire packet for your own reading pleasure. It is a 138 page pdf file.
3 comments:
Countdown to the Oregonian blowing a gasket.
10 - 9 - 8 .......
The letter is also pretty revealing for indicating, by reading both on and between the lines, that an assumed rate change is inevitable.
Also note that if you don't read the letter you might not know that the first consideration of the assumed rate will be at the March 2013 meeting, brought back for discussion at the May 2013 meeting, and adopted finally at the July 2013 meeting. This will allow ample time for stakeholder input.
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