The Oregon public employe., January 01, 1994, Page 7, Image 7

Tell the truth, Bob!
" Many of the things that state Representative Bob
Tiernan, R-Lake Oswego, has been saying about PERS
— on the record — simply are not true.
What Bob says...
“If you look at salary increases from 1979 to 1992, you’ll see that
they’re (public employees) actually 150,170% above that which the
average Oregonian was getting or the consumer prices were getting and
therefore the argument that they somehow substitute this for an
increase and that we’ve had a permanent decrease is not true.”
What we know...
From 1979 to 1993, pay raises for OPEU-represented state workers
increased by 68% versus an increase of 85% in the cost of living — a
loss of buying power of 17%,
Sources • Bureau of Labor Statistics’ Portland CPI for All Urban Consumers
• OPEU/SEIU Local 503 Collective Bargaining Agreements
September 13,1993
The taxpayers are paying and public employees are receiving three
A typical defined-benefit pension plan in the private sector provides a
times the pension contribution and benefit than those received by the
average working Oregonian.”
benefit based on 1.5% to 2% of final average salary for each year of
September 13,1993
for each year of service. Most larger private employers provide both
service. In PERS, the benefit is based on 1.67% of final average salary
defined benefit and defined contribution retirement plans. This is the
case for a majority of Oregon employers of 500 or more employees.
The problem is that most small businesses provide no retirement
benefits at all, thus bringing down the average for all employers.
Sources • 1991 Wage and Benefit Survey of Oregon Businesses (Towers Perrin)
• The Wyatt Company
“. . . many public employees are retiring at or predicted to retire at
Only 9 of 13,032 retirees who retired since 1988 (the date these
greater monthly benefits than their final average salary—some as high
statistics became available) receive a benefit higher than their final
as 150% of their final average salary”
average salary. None retired with a benefit as high as 150% of final
average salary.
Letter to “Dear Fellow Legislators,” May 19,1993
Source • PERS
“(RE: Sick leave credit) That’s a practice I have never heard
Forty-three of the 50 states compensate their employees for unused
about. I’ve been a labor employment attorney for the last 12
sick leave upon retirement. Some credit unused sick leave toward
years and Lhave never heard of that practice in any other state
service for purposes of computing retirement benefits. Others pay a
or the federal government.”
percentage of the unused sick leave.
September 13,1993
Also, one of the federal
government’s two retirement plans (the Civil Service Retirement Plan)
uses sick leave to adjust service credits for retirement.
Sources * Workplace Economics’ 1990 State Employee Benefit Survey
• Public Pension Coordinating Council (1992)
“Keep in mind this initiative does not lessen the retirement
Tieman’s initiative cuts retirement benefits in two ways. It repeals
system benefit.”
credit for unused sick leave (which will reduce benefits by 5% to 14%).
September 13,1993
Also, by repealing the 6% pickup, it will reduce final average salary by
6%, thereby reducing benefits by 6%.
Source • PERS
“All it says is you’re getting three times as much as anybody else, pay
a portion of it just like every other state and federal employee does.”
102 of475 public pension plans responding to a survey pay all or some
of their employees’ contributions.
September 13,1993
Source • Public Pension Coordinating Council (1992)
Pagp7