Public Employees Retirement System

The PERS Board adopted the following earnings factors and reserve amounts for calendar year 2007 at its March 28, 2008 meeting:

ACCOUNTS

Tier One Member Regular 7.97%*
Tier Two Member Regular 9.47%
Individual Account Program 9.46%
Variable 1.75%

 

2007 RESERVING

Reserve Balance Before 2007 Crediting ($ millions) Final 2007 Crediting Amount ($ millions) Final Ending Reserve Balance ($ millions)
Contingency $295.3 $357.9 $653.2
Tier One Rate Guarantee 1,635.4 253.8 1,889.2
Tier One Accounts 6,722.6 536.4 7,259.0
Tier Two Accounts 727.6 68.9 796.5
Employer 15,666.0 1,484.3 17,150.3
Benefits in Force 22,586.9 2,139.9 24,726.8
OPSRP Pension 257.8 17.3 275.1

 

Reserve Final Crediting ($ millions)
Earnings to Contingency Reserve $357.9
Earnings to Tier One Rate Guarantee 253.8
TOTAL RESERVE ADDITIONS $611.7
Effect by Reserve  
Contingency Reserve $653.2
Rate Guarantee Reserve 1,889.3
RESERVE TOTALS $2,542,5

 

* The Oregon Supreme Court awarded fees and costs to the plaintiff's attorneys in the Strunk case in October 2007. The case restored annual earnings crediting at the assumed rate (currently 8 percent) to Tier One member regular accounts. At the direction of the Oregon Supreme Court, the attorneys representing Tier One members are entitled to $1,394,566 to be paid from earnings that would otherwise be credited to Tier One members for 2007. After crediting 8 percent to Tier One regular accounts for 2007, a portion of that 8 percent was used to pay the attorney fees/costs as directed by the Oregon Supreme Court. The PERS Board approved a 2007 earnings crediting rate of 7.97 percent after subtracting from Tier One regular account earnings for the plaintiff's attorney fees/costs.