A stellar team of POD regulars have put together a grand lunch buffet on Thursday June 18 to celebrate our great victory at the Oregon Supreme Court. Celebrants are welcome to come early and stay late. Tickets for the buffet will be $26.15 plus the opportunity to buy tickets for prepaid beer and wine . There also will be a no-host bar where, yours truly, will decamp and collect on all those drinks owed him from bets long uncollected. This looks to be a truly fun event where all the various names can finally connect with the faces behind the scenes. I've threatened to collect the titles of all my blog posts - song titles all - and assemble them into a giant playlist that will run continuously through the event.
The initial invitations went out to those who had committed to pay early so that the room could be secured. Once we've secured the needed down payment, we are opening the event up to others who have participated in this process in many ways inside and outside of POD as plaintiffs, lawyers, advocates, sources, media advocates and anyone else who should be included. We'd love to count you among the celebrants. We request that if you are a member of the Legislature, or are any of the media who have fomented the PERS-hate in the media, please don’t bother to attend. For all of the rest, please email the chief organizer and bottle washer, at podjive@gmail.com, which is in charge of arranging the event, head counting, money collecting, and leg-breaking, should that become necessary to secure your ticket dollars. Spouses, significant others, and potential beneficiaries are welcome to join. We ask only that if this event interests you, that you get your information to the organizers at the above address before May 19, so that we can finalize the menu and the head count. The chefs like to know how many they are cooking for.
For more information about the event, please send your email to podjive@gmail.com. There is an urgency about this. We need to sign the contract for the event on May 19th so if you can come and are willing to buy a ticket, please let us know real soon now.
We hope you can make it. We are looking forward to celebrating our most significant victory and the end of future attacks on current PERS retiree benefits.
8 comments:
Greetings from the Lone Star State:
Section 1 - 2015 COLA Factors
Option 1.1 - July 1, 2015 adjusted & compounded COLA formula where annual annuity is equal to or less than $40K = {(1.005 X 1.0075 X 1.02 or approximately 1.032788) X FY15 OPERS Annuity}
Background: FY13 COLA was flat .015 (FY13 variance of .005) FY14 COLA was .0125 on first $40K(variance of .0075) FY14 COLA was .01 on next $20K (variance of .01 - not considered in the above computation) FY14 COLA was .0025 on annuity over $60K (variance .0175 - not considered in the above computation) FY15 COLA (old rate) .02
Option 1.22 - July 1, 2015 adjusted & compounded COLA formula = {(1.02 X 1.02 X 1.02 or approximately 1.061208) X FY13 OPERS Annuity}
Section 2 Complications:
1) tax offset adjustment to FY13 OPERS annuity;
2) graduated FY14 COLA; and
3) calculating the underpaid compounded COLA = variance in COLA paid versus COLA due during the period Aug 2013 through Jul 2015.
Best regards,
Ken
Where did you get this from?
Fearless:
The simple answer is compounding interest ... 1.02 x 1.02 x 1.02 = 1.015 x 1.0125 x 1.0326174 = 1.061208 ( x first $40,000)
1. FY13 COLA x FY14 COLA x FY15 COLA = compounded 1.02 COLA for three FY;
2. on the first $40,000 we were given 1.015 during FY13 & 1.0125 on first $40,000 during FY14 (additional due retirees over $40,000 ... including myself);
3. to obtain the compounded COLA thru FY15 the factor is 1.0326174;
4. as alluded to under item 2 the complications come in to play for the next $20,000 and over $60,000 (FY14).
To give the retirees only 1.02 effective July 2015 is to effectively short us going forward (which should require another pay back until corrected supposely during July 2016 for FY13 through July 2016). If PERS wants to do a one touch then the 2015 correction should be completed for the July 2015 (pay Aug 2015 monthly annuity)payment as computed above.
If I did not live and work in Texas, I would point out the flaw at the upcoming PERS Board Meeting. Since there is a flaw in the getgo I suspect there is a flaw in the catchup underpayment due before Christmas.
Best regards,
Ken Johnson, CPA
Ken. In FY 2013, the COLA was 1.5% on the entire benefit. It was not limited in any way. The limitations came into play during 2014 where the $60,000 cap applied to the total 1.25% COLA. Above $60,000, the COLA was limited to 0.15% on (actual benefit - 60000). If I am able to attend Friday's meeting, I will be sure to ask about the adjustment after the 2015 COLA is distributed for retirees who retired before May 2013. For those who worked past May 2013, the recalculations will be far more complicated, which is why it will take longer for them to correct it. PERS bought an "off the shelf" retirement account management system and, as I understand it, will require some substantial reprogramming to adjust the benefits of the post-May 2013 retirees so that by July 1, 2016, all accounts will have been adjusted to their correct benefit and a blended COLA correctly established. For the pre-May 2013 retirees, the reprogramming is relatively simple so long as they get the corrected back payments set by October 31, 2015, as is their plan.
It is my understanding the FY13 COLA should have been 2 percent rather than 1.5 percent (point 1).
Retirees were shorted the 2 percent COLA during FY 13 as well as FY 14 over 1 percent compounded (point 2).
Retirees are due a 2 percent COLA Jul 2015 pay Aug 2015. If we only get 2 percent and the catchup is thru Jul 2015 ... Retirees will be short & due) a second repayment for Aug 2015 thru Jul 2016 (point 3).
Best regards,
Ken
Point 1 is now correct and understood. So we are owed the balance of 0.5% compounded from July 1 2013 to whatever date the final restitution is made (October 31, 2015?). I'm pretty certain PERS understands that the 2% on July 1 paid August 1 will be on our current (incorrect) benefit. That's why the restitution payment will be made on October 31 (? payable Nov 1) and will presumably do two things at once for retirees who left prior to May 2013. (1) it will be the catchup for all owed since July 2013 compounded properly; and (2) it will set the benefit level correctly going forward so that come July 1, 2016 all parties will have the correct basis for the 2016 COLA. I don't think the timing of your second payment is correct. I think PERS will correct both the benefit and return the monies owed by November 1 for pre May 2013 retirees, and the remainder by January 1, 2016. There will be a few retirees whose adjustment will be more complex and may require additional time, but PERS assures that everyone will be corrected to their appropriate benefit level in ample time for the July 1, 2016 COLA.
mrf
I read this post today, 5/27/15. I realize I'm too late to reserve a meal, but would like to attend anyway. Is there any room for someone that just wants to say thanks in person and perhaps buy a drink or two for some of the attendees? Steve Barrett
I think if you go ahead a click the link and get the email, I'm fairly certain it isn't too late.
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