Retiree Sisters and Brothers,

Greetings! I know that many of you reading this are PERS beneficiaries and have an interest in the subject. A total of 40 proposals regarding PERS benefits were introduced in this year’s legislative session. None passed, primarily because we were able to connect PERS “reform” to revenue reform and there was no revenue reform. Of particular note for retirees is a measure introduced in the Oregon Senate at the end of session that included a package of drastic PERS changes. One of those would put the entire system at risk by arbitrarily lowering employer rates, which would likely result in underfunding. Every Senate Republican voted for the measure, and the minority leader said it was a starting point for discussions next time.

One significant PERS development that did occur was that the PERS Board again lowered the assumed earnings rate. Effective January 1, 2018, it will be 7.2 percent, down from 7.5. No doubt, there will be a wave of retirements before then by workers retiring under Money Match. Those Money Match waves are getting smaller as the number of eligible workers continues to shrink. Last year, 35 percent of PERS retirements were Money Match.

Despite the lack of revenue reform, and despite starting the legislative session with a $1.8 billion deficit, the work of members, our political team, and bargaining teams has resulted in positive contract settlements. Two, for the state DAS unit and Higher Education, each are tentative agreements with steps, COLAs, and no increase in healthcare premiums.

A shout out to retiree Catherine Stearns, a former state employee who volunteered and served as secretary/note-taker for the Higher Ed bargaining team.

Thanks to Barbara Casey for the opportunity to write to you. I hope to do it again. Thank each of you for your devotion to our Union, to workers, their families, and our communities. Together, we have work ahead of us on revenue reform, housing, health care, and our viability as a union. I look forward to getting to do that work with you.

In Solidarity

Steven Demarest President SEIU 503