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About Illinois Valley news. (Cave City, Oregon) 1937-current | View Entire Issue (April 30, 2003)
Illinois Valley News, Cave Junction, OR Wednesday, April 30, 2003
Fairness only way to fix PERS, says Oregon tax research analyst
BY RICHARD LEONETTI
Research Analyst for
Oregon Tax Research
A lot of time and conversation is being
spent on trying to fix Public Employees Retire-
ment System (PERS).
The reality is that PERS is unfixable and the
Legislature must take major steps to solve the
There are many separate bills being consid-
ered to “fix PERS.” Any fix that makes a real
change is sure to result in a lawsuit that won’t
be settled for years.
The unfunded liability is now nearly $17
billion and growing. The increasing contribution
rates required from public employers (schools,
cities, water districts, the state etc.) are now so
high they are wrecking budgets and forcing
higher fees and taxes on taxpayers at all levels.
Since 1946, PERS has been added to,
amended, or changed in major ways at least 36
times leaving an unmanageable set of laws. The
only way to fix PERS is to use the provisions
already in the law to end the system and them
replace it with a new retirement program.
The key to ending PERS is to do it fairly.
No one who retired before Jan. 1 should see
their benefits changed. Begin with this year’s
retirees and everyone else currently in the pro-
Give them a one-time choice of continuing
with the Full Formula provisions-1.67 percent
times the number of years times their final sal-
ary-or a roll out of the balance in their account
in cash or to a 401k or IRA plus and equal
amount of money from PERS.
Continue with a 401k type plan for new
hires and those who elect the cash or rollover
options. Employers could contribute up to 6
percent of salary to match employee contribu-
tions. These accounts should be independent
401k’s, invested by private firms, out of the
reach of Legislature. This would protect the
plan and its participants.
The governor’s suggestion of a defined
benefit plan is a bad idea because it is unfair.
Consider two employees, one 20, the other 30,
hired the same day, who each work 30 years in
public employment. With a defined benefit plan
both would receive the same monthly amount at
retirement, but the younger person and family
would collect far more in total benefits because
he could expect to live 10 years longer.
Also, with a defined benefit the Legislature
would be tempted to do like a number of corpo-
rations did when the stock market went up and
decided their retirement systems were over
funded and withdrew large amounts for other
purposes, only to leave their retirement systems
under funded when the market turned down.
Sharon Voigt, LTC EA
Now at the office of: Wayne W. Voigt C.P.A.
323 NE 7th, Grants Pass
Tax Planning - Tax Preparation - Mutual Funds - IRAs
Ted Crocker, Required Representative
Securities offered through H.D. Vest Investment Services, Inc.
Member: SIPC - 6333 North State Hwy.
161, Fourth Floor, Irving, TX 95038 (972) 870-6000
Licensed Tax Consultant
(541) 592– 3187
Lamb’s Baaa-dy Shop
New Construction- Remodels - Repairs
Specializing in all your drywall needs
Sand - Gravel - Crushed Rock - Concrete - Aggregates
Federal & State approved materials
1436 Rockydale Road
1711 Rockydale Road, Cave Junction
Try the Rest - Come to the Best!
(behind old Goodwill Bldg.)
TED’S TREE SERVICE & LOGGING
38 years experience in JoCo
Top $ for Timber - One Tree or a Forest
Danger Tree & Residential Specialist
CCB#68247 - Bonded & Insured
592-4789 (Free Estimates)
Serving Josephine County
seven days a week
6375 Lakeshore Drive, Selma
Licensed * Bonded * Insured
CCB #70126 UC #3079S
Phone: (541)597-4553 Cell: (541) 660-9660
Efficient Oil Heaters
Mayfield Oil Co.
Michelle - 597- 4617
(541) 597- 4085
(541) 592- 4520 or
Bonded & Insured
Carpet - vinyl - laminate
New Homes - Additions - Garages
Decks - Concrete Work - Shops
144 S. Redwood Hwy.
License # 80820
Networking Repairs Troubleshooting Upgrades
No job too small - free estimates
Cell - 592-9219
Quaality Repairs * Watch Batteries * Stock of gems & finished jewelry
Pat’s Sanitary Service
( 800) 922-1025 or 479-5335
Payments can be deposited
at Cave Junction City Hall
‘HAVE TRUCK, WILL TRAVEL
Debris Hauling - Cleanup - Odd Jobs
Materials picked up and delivered
Butch’s Professional Services
Cleaning & More
for winter specials
OLD STAGE MINI STORAGE
Gates open 7 a.m. to 7 p.m. - 7 days a week
On-site Manager - Reasonable Rates - Secure
181 South Old Stage Road
Title & Escrow Service
Authorized Starband dealer
Computer Sales, Service & Update
137 S. Redwood Hwy. 592-5151 (next to Caves Rx)
Sewing & Alterations
Foundations * Slabs * Custom Work
‘Do it right - it’s permanent!’
First American Title
Pet Cremation Services
Mountain View Pet Services
Lori’s Sewing Room
Alterations, sewing & classes
Fence & Decks LLC
Don’t drink and drive
Pacific Computer & Satellite
All phases of excavation
All types of fencing & decks - More than 21-years experience
Making your landscape dreams become reality.
Installations - Rock Walls - Water Features
(541) 659– 1511
Your ads work here.
Custom Designs * Gold/Silversmith * Remounts & Stone Setting
Roofing - Remodeling - Additions
3/4 Minus - Sand: 3/4” - 1/4” Crushed
Drain Rock- Base Rock - Dry Top Soil
Natural Settings Construction
Licensed - Bonded - Insured
(866) 442-6879 or 596-2243
DESIGN & DRAFTING
Sandy Raymond, Owner
Complete body work* Paint* Fiberglass
Stallion Services - Stock For Sale
RAYMOND CONSTRUCTION INC.
HIGH COUNTRY SHUTTLE
Please don’t litter!
JBD & S
CCB License #10254
Puts your ad in every week for
THREE FULL MONTHS
No changes - paid in advance
NEW & REMODEL
A one-day class about the history, construc-
tion and importance of local covered bridges is
offered by Rogue Community College Commu-
nity Education to examine the importance of
each covered bridge to the early pioneers of
Oregon has 52 covered bridges, five of
them in Jackson and Josephine counties.
“Southern Oregon Covered Bridges” is a
day-long tour set for Saturday, May 10. Partici-
pants will meet at the RCC Riverside Campus
in Medford for an orientation and short presen-
tation, then travel by van to the various bridges.
A lunch stop at a pioneer café near one of
the bridges is planned. Transportation and lunch
are included in the enrollment fee of $62.
Students should dress for the weather and
bring an umbrella if necessary.
Income Tax Service, Ted Crocker, LTC
(541) 592– 3667
RCC covered bridges
tour scheduled May 10
DOWN & OUT
Seamless Gutters & Sheet Metal Fabrication
Heating Systems, Fabricate Duct Work/Fittings
Flashing - Any Shape or Size
License # 00289
(Josephine County Title Division)
9 a.m. to 4 p.m.
Complete Escrow & Title Service
210 W. Lister St., Cave Jct.
All-natural herbal produce,
lose 20-30 pounds in 30 days,
30-day money-back guarantee