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Supreme Court Decision
Supreme Court Decision: City of Eugene vs. PERS
The Oregon Supreme Court issued its decision in the City of Eugene vs. PERScase on August 11, 2005. The Court ruled that the issues in the case have been resolved by the Settlement Agreement and 2003 PERS Reform legislation. The Settlement Agreement was entered into by the PERS Board and the original plaintiffs in the case.
The Settlement Agreement requires PERS to reallocate 1999 earnings to Tier One member accounts at 11.33 percent instead of 20 percent. Other tenets of the Settlement Agreement have been met. The Settlement Agreement is posted on the PERS website at http://www.oregon.gov/PERS/section/board_information/city_of_eugene_v_pers.shtml. Although PERS is required to recalculate 1999 earnings crediting for Tier One members, PERS will credit the assumed rate, currently 8 percent, to Tier One accounts for 2003 and 2004 as a result of the recent Oregon Supreme Court decision in the Strunkcase.
PERS does not know how individual members may be affected by the Court's ruling. We are examining all aspects of implementing the decision and will outline the various options and schedules for consideration by the PERS Board at its September 23, 2005 meeting.
The decision is posted on the Oregon Supreme Court's website at: http://www.publications.ojd.state.or.us/S50617.htm