Politics & You
OEA Fights for Retirement Security for Everyone
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oday, nearly half of Oregonians aged 25-64 are not covered by a retirement plan at work. As a result, many are at risk of living in poverty when they retire — unable to cover basic living and medical expenses. Unless we address this problem proactively, we face insecurity for our growing senior population and a looming crisis for Oregon’s social safety net and the state budget. In addition to working to protect the hard-earned retirement of Oregon educators, OEA has joined a coalition to help ensure all Oregonians have options for retirement. With almost half of Oregon’s current workforce having no access to employment-based retirement plans, the coalition has been urging legislators to explore solutions for the retirement crisis. Joined by Governor Kitzhaber, OEA and other partners are urging lawmakers to approve House Bill 3436. The bill would establish a Board to study the issue of retirement security, develop responsible solutions and prepare
School Funding Approved
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a retirement option for Oregonians that does not incur any liability to the state or employers. The bill remains in committee.
While women constitute just over 57 percent of all Oregon retirees, they make up nearly 83 percent of retirees in the bottom income group.
s of press time, the 2013 Legislature is in its final stretch. Lawmakers are expected to approve the State School Funding bill. The bill — Senate Bill 5519 — currently appropriates approximately $6.5 billion for Oregon’s K-12 schools. Additionally, legislators approved reductions in benefits to current and future PERS recipients, which is expected to provide an additional $200 million to school districts. While there has been universal agreement on the school budget, there are last minute attempts to hold up approval of the budget by legislators who want more reductions to PERS. For most school districts, next year will bring some stability — meaning that for many it’s likely to stave off new cuts, but it won’t allow school districts to add back what they’ve lost. And for some school districts, a $6.55 billion budget will still mean layoffs and lost programs. Please take minute to call your legislator TODAY at 1-800-332-2313 and tell them to approve the schools budget NOW! To keep updated on the school budget, visit our website at: www.oregoned.org
PERS Board Adjusts Rates by 2.5 percent
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ecently, the Public Employee Retirement System (PERS) Board directed their actuaries to reduce the 2013-2015 employer rates by 2.5 percent of payroll for all employers. Additionally, further reductions were made to all employers' base rates by up to an additional 1.9 percent of payroll, with the limitation that no employer's adjusted 2013-2015 base rates will be less than its 20112013 base rates. In other words, all employer contribution rates will go down 4.4
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TODAY’S OEA | JUNE 2013
percent unless it would reduce their rates to a level lower than 20112013. This is expected to free up approximately $200 million for K-12 schools. The rate adjustments were made in response to Senate Bill 822 approved by the Oregon Legislature. The bill reduced the Cost of Living Adjustment for all future and current Oregon PERS retirees. PERS anticipates being able to provide individual employers with their new rates in the second week of June.