Thursday, January 16, 2003

Judge Orders PERS Money Changes
The Statesman Journal reports:
"Marion Circuit Judge Paul Lipscomb issued a judgment ordering the Public Employees Retirement System Board to reallocate $6.9 billion from 1999 stock market earnings, putting more money into reserves and less into worker pension accounts. Lipscomb also ordered PERS to immediately update the obsolete life expectancy assumptions it uses to set worker pensions."
"...If PERS could redeploy its 1999 earnings, that could mean up to $2.2 billion more into reserves. That would reduce worker pensions, but it also would provide some relief for a pension system now facing a $14.8 billion long-term shortfall...."
"...The PERS Board made a preliminary decision Tuesday to adopt new mortality tables next year, while assuring that no workers get a lower pension than they would accrue by the end of 2003. Lipscomb made it clear that it was too little, too late...."
"...What the board did doesn’t come remotely close to what the judge ordered,” said Bill Gary, attorney for the local governments that brought the suit...

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