Just a quick post to note that SB 560 (a cornucopia of crap) and SB 913 (another capsule of crap, slightly different from SB 560) will have their first public hearing on Wednesday March 15 at 3 p.m. before the Senate Workforce Committee. These two bills together contain an obnoxious amount of damage for potential PERS retirees and each strike in a slightly different way. If SB 560 isn’t to your liking, try SB 913. Both cover similar turf, although SB 913 contains a really ugly piece that isn’t a part of SB 560. That ugliness takes the form of a decoupling of the actuarially assumed interest rate (used for valuing the fund, setting employer rates, determining Tier 1 earnings), and the annuity rate, used for setting benefit levels for retirees over a large class of individuals. It would be good if affected, or potentially affected, individuals showed up for the hearing. You won’t be able to testify on the 15th because it is invited testimony only from the experts at PERS, State Lawyers, and probably PERS Coalition Lawyers who will try to sort out the probably illegal from the possibly legal aspects of each of these bills. We already know that the 6% redirection isn’t likely to fly, but I’ve already heard rumors that the bills principal Sponsor, Senator Tim Knopp, has at least half a dozen amendments ready for SB 560, the more “benign” version of the two bills. It is only benign because it gives members until December 1, 2017 to get out before being affected; SB 913 takes effect on passage, which means that you’d probably need to be out of the system (i.e. retired) by absolutely no later than May 1, 2017 (preferably April 1 to be certain).
In any case, while there is no reason to hit the panic button yet, if you are already thinking about retiring during 2017, you might want to give some thought to how you might manage an April 1 or May 1 retirement. While I continue to hear rumors that the Ds aren’t willing to support any of the bills dropped by the Rs, the problem remains that there is a $1.6 billion (or $1.7 or $1.8 depending on day of week and who is quoting the figure) shortfall between budget needs and revenue, there is a desperate need for a transportation package, and the Ds don’t have a strong enough majority to pass any revenue increases without buy-in from at least 3 or 4 Rs. So, there is the dark version of this year’s legislature in a nutshell.
You’ve been warned. At the very least, be sure to watch the recording of the meeting on March 15. The Legislature posts the feed shortly after the committee adjourns. Then you will have more information than I can provide you here.
This site will go dark next week for a short while as I will be out of town and unable to post.