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2007 earnings crediting

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


Tier One Member Regular7.97%*
Tier Two Member Regular9.47%
Individual Account Program9.46%


2007 Reserving

ReserveBalance Before 2007 Crediting ($ millions)Final 2007 Crediting Amount ($ millions)Final Ending Reserve Balance ($ millions)
Tier One Rate Guarantee1,635.4253.81,889.2
Tier One Accounts6,722.6536.47,259.0
Tier Two Accounts727.668.9796.5
Benefits in Force22,586.92,139.924,726.8
OPSRP Pension257.817.3275.1


ReserveFinal Crediting ($ millions)
Earnings to Contingency Reserve$357.9
Earnings to Tier One Rate Guarantee253.8
Effect by Reserve 
Contingency Reserve$653.2
Rate Guarantee Reserve1,889.3


* 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.