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.