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.