Among the proposals for reforming the Public Employees Retirement System is one to redirect the contribution that currently goes to employees' individual retirement accounts to the pension fund instead. The idea is to help reduce payments employers have to make to the woefully underfunded system.
The idea, understandably, immediately draws employees' ire and accusations of unfairness. But it's important to dissect some of the underlying principles that make this a proposal worth deep consideration.
First, keep in mind that all PERS recipients receive both a pension and the individual account. The pension is the monthly payment that an employee is promised upon retirement. The individual account, however, is like a 401(k), in which the employee or employer makes contributions to an account whose funds are invested. The ultimate payout depends on how those investments fare.
Public employers in Oregon cover the pension payment, but a majority also cover the 6 percent contribution to those individual accounts for most of their employees. (Some represented employees have recently agreed to make the contribution themselves after negotiating salaries with a 6 percent bump). While employees understandably don't like the redirection proposal, which would cut their total compensation, the sustainability of the pension system as well as Oregon's ability to provide basic public services are at stake here. Already, public employers are contemplating significant layoffs starting in July. The unfortunate reality is that 6 percent of nothing is nothing.
Legislators: 132 days to go.
- The Oregonian/OregonLive Editorial Board
Our editors found this article on this site using Google and regenerated it for our readers.
Publish Date : 01 Mart 2017 Çarşamba 10:47
Iniesta and Torres, two miracles for Japan: 40%...
Sanchez downgrade Spain at the height of their...
Sanchez begging for their accounts to Torra
'The House of Paper', the protagonist in congratulating...
Lazio-Seville, Celtic-Valencia, Sporting-Villarreal...
Is urgently to reduce the public debt
How will Mourinho to Real Madrid?
Bale and Asensio, on the stretcher
The desire to learn the japanese football
The new dart Boxes to Mourinho: "When you see...
The 'minor offences' in London
Alberto Puig: "Others have wanted more the title...
|Valerio dodge the shock with the CEOE and downgrade to 7% the rise of the bases maximum contribution|