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Post by lebaneaver on Apr 3, 2019 20:40:55 GMT -8
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Post by mbabeav on Apr 3, 2019 21:11:58 GMT -8
As long as the state refuses to address the elephants in the room; mandated increases in retirement funding and declining state allocations towards higher education - the colleges and universities are basically privatized institutions with public sector designated employees given how much Oregon actually provides as a percentage of the cost of operations - we are going to be facing deficit situations now for the foreseeable future.
IMO this is going to actually increase costs to the university overall as larger numbers of people retire earlier - not sure whether the reduction in top-end salaries will offset the increased demand on PERS.
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Post by kersting13 on Apr 5, 2019 8:43:22 GMT -8
As long as the state refuses to address the elephants in the room; mandated increases in retirement funding and declining state allocations towards higher education - the colleges and universities are basically privatized institutions with public sector designated employees given how much Oregon actually provides as a percentage of the cost of operations - we are going to be facing deficit situations now for the foreseeable future. IMO this is going to actually increase costs to the university overall as larger numbers of people retire earlier - not sure whether the reduction in top-end salaries will offset the increased demand on PERS. I work for a government agency in the budgeting sector, and projections for PERS costs over the next 5 years are a real concern. I don't think people will be prepared for the budget cuts that will be coming. |
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Post by Tigardbeav on Apr 5, 2019 14:52:29 GMT -8
As long as the state refuses to address the elephants in the room; mandated increases in retirement funding and declining state allocations towards higher education - the colleges and universities are basically privatized institutions with public sector designated employees given how much Oregon actually provides as a percentage of the cost of operations - we are going to be facing deficit situations now for the foreseeable future. IMO this is going to actually increase costs to the university overall as larger numbers of people retire earlier - not sure whether the reduction in top-end salaries will offset the increased demand on PERS. I work for a government agency in the budgeting sector, and projections for PERS costs over the next 5 years are a real concern. I don't think people will be prepared for the budget cuts that will be coming. kersting when do the projections turn the other direction as Tier 1 employees leave this world. Or is this bigger than just Tier 1 employees? *my Mom was Tier 1 and died in late '17. Dad (as survivor beneficiary) died in '18,. So they did their part to solve the budget crunch |
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Post by kersting13 on Apr 5, 2019 21:33:12 GMT -8
I work for a government agency in the budgeting sector, and projections for PERS costs over the next 5 years are a real concern. I don't think people will be prepared for the budget cuts that will be coming. kersting when do the projections turn the other direction as Tier 1 employees leave this world. Or is this bigger than just Tier 1 employees? *my Mom was Tier 1 and died in late '17. Dad (as survivor beneficiary) died in '18,. So they did their part to solve the budget crunch I do not know. I used to be a lot more involved in PERS related stuff, but now I just get projections from our main budget office. I only know the next 2 biennial rate increases are projected to be fairly high. Tier 1 ended 12/31/95, and Tier 2 ended in late 2003, so anyone hired into PERS positions after October 2003 is Tier 3. Most current employees are Tier 3. An example though, is Tier 3 contribution rates this fiscal year are 16.6% of salary. Next year and the following year they will be 21.5%. Projections for the following 2 years are 27%, and projections for the 2 after that are 33%. Now, those projections could be conservative budgeting, but again, I'm not involved in building those projections. Some PERS employers have worse rates than those, and Tier 1 & 2 rates are about 6% higher than the Tier 3 rates. I don't think public coffers are going to be able to handle paying 25-33% of salary to PERS to keep funding the pensions if it comes to that. I mean, they will pay it if that's the rate, but that means fewer teachers, police, fire-fighters, Parks workers, etc. Once all of those guys are gone, they might look at reducing the number of "equity managers" and "public information officers".  The good news is that if the stock market continues to do well, then perhaps some of those projected rates will not reach the levels shown. But, to bluntly answer your question, I think the problem is bigger than Tier 1 employees. |
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