Polk County News
6A Polk County Itemizer-Observer • January 4, 2017
PERS: Governments tackle increases in variety of ways
Continued from Page 1A
In 2013, the Legislature
passed reforms including
lowering cost of living ad-
justments on benefits. The
court ruled in 2015 that idea
is OK for benefits earned
after the legislation was en-
acted, but not before. That
decision wiped out most of
longterm cost savings.
That ruling, and others,
have held the system to past
agreements with employees,
which lead PERS Executive
Director Steven Patrick
Rodeman to say that the ris-
ing unfunded liability is
both a concern and a stub-
born problem to solve.
In a September 2016 pres-
entation to the Bipartisan
PERS Solutions Work Group,
Rodeman said that retired
employees are responsible
for most of the increases.
Those benefits account for
64 percent of the program’s
liability.
“Proposed legislative con-
cepts either shift the benefit
cost from employers to mem-
bers, or reduce the normal
cost incrementally by reduc-
ing benefits for active mem-
bers, but do not reduce the
unfunded legacy benefits
that are the principal driver
of higher employer rates,”
Rodeman’s presentation read.
Forward-thinking
changes have been made.
The Oregon Public Service
Retirement Plan was created
for workers hired after Aug.
29, 2003, and is significantly
less costly, Crosley said.
Even with those changes,
PERS payments to retirees
will continue to grow from
about $4.5 billion in 2016 to
PERS definitions and facts
• Accrued liability: Benefits already earned by retired or active employees.
• Unfunded actuarial liability: difference between the cost of benefits already earned
and funds projected to be available to pay for them. In 2015, that difference was about $22
billion.
• Tier 1: Pension program covering public employees hired before Jan. 1, 1996.
• Tier 2: Pension program covering public employees hired from Jan. 1, 1996, through
Aug. 28, 2003.
• Oregon Public Service Retirement Plan (OPSRP): Program covering public employ-
ees hired on or after Aug. 29, 2003.
New PERS rates for local governments
Polk County
2017-19 rates: Tier 1 & 2 payroll =
20.96%; OPsRP general payroll = 12.44%;
OPsRP police & fire payroll = 17.21%
Polk County Fire District No. 1
2017-19 rates: Tier 1 & Tier 2 payroll =
22.53%; OPsRP general payroll = 11.91%;
OPsRP police & fire payroll = 16.68%
City of Dallas
2017-19 rate: Tier 1 & Tier 2 payroll =
22.03%; OPsRP general payroll = 13.74%;
OPsRP police & fire payroll = 18.51%
City of Falls City
2017-19 rates: Tier 1 & Tier 2 payroll =
17.05%; OPsRP general payroll = 10.19%;
OPsRP police & fire payroll = 14.96%
City of Independence
2017-19 rates: Tier 1 & Tier 2 payroll =
21.10%; OPsRP general payroll = 11.43%;
OPsRP police & fire payroll = 16.20%
a peak of $8 billion in 2040.
For the immediate fu-
ture — the 2017-18 budgets
about to be written — local
governments are responding
in a variety of ways.
Polk County Administra-
tor Greg Hansen said the
county’s budget can absorb
PERS if other costs don’t get
City of Monmouth
2017-19 rates: Tier 1 & Tier 2 payroll =
19.09%; OPsRP general payroll = 10.81%;
OPsRP police & fire payroll = 15.58%
Central School District
2017-19 rates: Tier 1 & Tier 2 payroll =
12.47%; OPsRP general payroll = 7.14%
Falls City School District
2017-19 rates: Tier 1 & Tier 2 payroll =
6.59%; OPsRP general payroll = 1.26%
Dallas School District
2017-19 rates: Tier 1 & Tier 2 payroll =
27.20%; OPsRP general payroll = 21.87%
Perrydale School District
2017-19 rate: Tier 1 & Tier 2 payroll =
27.20%; OPsRP general payroll = 21.87%
source: PERs
out of hand at the same
time.
“If we don’t get large in-
creases in health insurance
… we should be able to
w e a t h e r t h a t s t o r m ,”
Hansen said.
The city of Dallas set aside
$84,000 in the current budg-
et, and employees will begin
paying a percentage of their
health care plans to defray
PERS costs, said Finance Di-
rector Cecilia Ward.
Falls City Mayor Terry Un-
gricht said the information
he has now points to mini-
mal impact, but he will
know more in a few months.
Gloria Butsch, Indepen-
PERS By The Numbers
1945
About 21
The year the Oregon Legis-
lature created the PERS
program.
213,455
Number of active or inac-
tive employees who are
part of the PERS system.
134,323
Number of people cur-
rently receiving PERS ben-
efits.
925
Number of employers that
are part of the PERS sys-
tems.
About 74
Percentage of benefit pay-
ments paid for by invest-
ment earnings.
dence’s finance director,
doesn’t anticipate cuts to
compensate for PERS, but
said, “It is a bit early in the
process to know fully how
we will respond.”
School districts may be in
wait-and-see mode for the
Legislature’s final say on the
state’s 2017-19 budget.
Gov. Kate Brown’s budget
proposal released in Decem-
ber — the first take on the
more than $20 billion
spending plan — attempted
to set aside enough to main-
tain current programs, in-
Percentage of benefit pay-
ment paid by employers.
$2,347
Average monthly benefit
payment for 2014 retirees.
44
Percentage of salary re-
placed at retirement for
2014 retirees.
64
Percentage of actual liabil-
ity accounted for by cur-
rent retirees.
4
Percentage of estimated
increase every two years
until the 2021-23 bien-
nium.
source: PERs
cluding PERS costs.
Tami Montague, Dallas
School District business man-
ager, said the $8 billion going
to schools in the governor’s
draft may not be enough to
save schools from cuts.
“However, we really won’t
know what potential reduc-
tions look like until the Leg-
islature sets the final budget
for K-12 during their up-
coming session,” she said.
“Historically, the legislative
final budget is a little higher
than the governor’s, but we
can’t be assured of that.”
Cold weather settles in Polk County
Itemizer-Observer staff report
POLK COUNTY — As tem-
peratures drop, the American
Red Cross shares these 10
steps to help you stay safe dur-
ing cold weather.
1. Layer up. Wear layers of
lightweight clothing.
2. Don't forget furry friends.
Bring pets indoors, or make sure
they have enough shelter to
keep them warm and that they
can get to unfrozen water.
3. Remember the three-
feet rule. If Using a space
heater, place it on a level, hard
surface and keep anything
flammable at least three feet
away.
4. Requires supervision —
Turn off space heaters and
make sure fireplace embers are
out before leaving the room or
going to bed.
5. Don't catch fire. If using
a fireplace, use a glass or metal
fire screen large enough to
catch sparks and rolling logs.
6. Protect your pipes. Run
water, even at a trickle, to help
prevent pipes from freezing.
Open the kitchen and bath-
room cabinet doors to allow
warmer air to circulate around
the plumbing.
7. Better safe than sorry.
Keep the thermostat at the same
temperature day and night.
8. The kitchen is for cook-
ing. Never use a stove or oven
to heat a home.
9. Use generators outside.
Never operate a generator in-
side the home, including in the
basement or garage.
10. Knowledge is power.
Don't hook a generator up to
the home's wiring. The safest
thing to do is to connect the
equipment you want to power
directly to the outlets on the
generator. (redcross.org)
travel by reading 100 novels
each year. He even enjoyed
playing games on his Wii.
After his failing eyesight,
he still traveled by watching
movies and TV.
He is preceded in death
by his wife Lois, his daughter
Carol his brothers Chuck,
Bob and Ray, and sister
Ginny.
He is survived by his son
Mike (his wife Eva), grand-
daughter Jennifer (her hus-
band Johnathan) Mullins
and 3 great grandchildren
C o l b y, M a d d i l y n A n d
William.
Come celebrate Harry’s
life for an informal gathering
on Saturday, Jan. 7, from 3 to
5 p.m. at the Hong Kong
Restaurant in Dallas.
Private interment will be
in Dallas Cemetery. Bollman
Funeral Home is caring for
the family.
Photo by LUKAs EggEN/
Itemizer-Observer
OBITUARIES
Harry A. Moore
March 2, 1928 – Dec. 21, 2016
Harry A. Moore, a resident
of Dallas, died on Wednes-
day, Dec. 21. He was born on
March 2, 1928, in San Pedro,
Calif., the son of Harry and
Venley Moore.
He was the middle child
of five children.
Harry joined the Mer-
chant Marines at the age of
17 for two years.
He then joined the Navy
and served for 12 years sail-
ing around the world, criss-
crossing the equator and
many great adventures.
Harry
later met
Lois May-
field, and
they were
married in
August of
1966, at
Catalina
Island,
Calif. They
settled in
Falls City.
Harry
worked for
Willamette Industries ply-
wood mill in Dallas for
many years until his retire-
ment.
Harry and Lois enjoyed
traveling to Hawaii several
times. They also enjoyed
traveling around Oregon, es-
pecially, to the coast. They
were a very active couple.
After Lois had a massive
stroke Harry cared for his
wife in their home for 12
years. Lois passed away on
April 17, 2004.
Harry continued to stay
active by golfing. He liked to
Joyful Sound Hearing
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Mark Sturtevant
503-623-0290
Personally involved
and invested in the
Dallas community
Billy M. Sanders
April 27, 1937 – Dec. 25, 2016
Billy M. Sanders, 79, died
Dec. 25.
Billy was born in Nampa,
Idaho, to William and Mar-
garette Sanders.
Billy is preceded in death
by his brother Lynn Sanders.
Billy is survived by daugh-
ters, Dena Sanders and
Kerry Sanders-Leos; sisters,
Darlene Eamons and Carma
Hanson; brother, Nick John-
son; and four grandchildren.
Private family services will
be held at a later date.
Keizer Funeral Chapel
handled arrangements. To
leave an online tribute: Keiz-
erchapel.com.
Norma
Lambert-Crites
Welcoming new patients.
Most insurance health plans accepted. Also a Moda preferred provider.
Dec. 5, 1959 – Dec. 29, 2016
Salem
412 Lancaster Drive NE
Salem, OR 97301
(503) 581-6265
Low Cost
Cremation & Burial
Funerals & Memorials
Simple Direct Cremation $595
Simple Direct Burial
$710
Traditional Funeral
$2,275
Discount priced
Caskets, Urns and
other Memorial items.
~ Polk County’s ONLY Family Owned Funeral Homes ~
Privately owned
cremation facility.
Locally owned and operated
by Oregon families.
www.ANewTradition.com
Services are pending at
this time. Dallas Mortuary
Tribute Center is caring for
the family.
Horace ‘Bill’ Steele
Jan. 31, 1928 – Dec. 29, 2016
Horace “Bill” Steele, 88,
died Dec. 29, 2016, in Dallas.
Service will be on Jan. 6 at
Dallas Alliance Church.