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Steven Patrick Rodeman Administrator PPLAD PERS P.O. Box 23700 Tigard, OR 97281-3700 Dear Mr. Rodeman: This letter is in response to your memos to PERB dated September 23, and October 21, 2005, pertaining to proposed amendment to Rule 459-007-0015. OPRI's objections relate to the determination of interest on overdue benefits as it would apply to 2006 and after retirees. OPRI represents more than 8,000 retirees. Although our board agrees with your stated goal of a stable, knowable rate, we believe that goal is best met by using the rate set by law (ORS 82.010) for the rate of interest payable by state agencies on overdue accounts. The rate is not on funds left voluntarily with PERS but rather on funds withheld from the retiree because of some administrative problem in determining the pension amount. Even though our suggested rate may exceed the return actuarially expected for the Fund, perhaps some disincentive to underpayments because of administrative problems is a public policy that we ought to encourage. The definition of the interest rate proposed for the amended rule is not clear and will be difficult for the affected retiree to determine. If it is all a matter of a phone call to either the State Treasury or to PERS, we suggest you try that approach personally. At least one call to Treasury officials was referred back to PERS. Have you tried calling PERS recently? As a matter of equity, retirees should be treated no differently in the matter of overdue payments than any other creditor of a state agency. We request that this letter be made part of the public record on the proposed amendment. We also request that contact with OPRI be made to me, at P.O. Box 5803, Salem, OR 97304. Very Truly Yours,
Kathleen Beaufait
Page last updated: 11/1/05 |
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