This is Floyd Wynne with THE VIEW FROM HERE 5/17/05

What is the trouble with PERS?
That’s the Public Employee Retirement System.
Every tax supported budget claims that their PERS costs will cost them thousands of dollars more in this year’s budget.
Why?
If my memory is correct the officials at PERS indicated some time ago that they invested funds of the organization in the stock market and suffered severe losses.
As a matter of fact the officials at PERS announced a while back that they would need about a 17 percent increase in their costs in order to maintain current requirements.
That, in turn, means that virtually every institution in the state that relies on PERS for their retirement systems is facing a terribly large increase in their costs.
Not long ago the City School Superintendent noted that there were sharp budget shortfalls there, attributing part of that to a great increase in PERS costs.
More recently, our Sheriff has indicated that unless the budget is changed, he will face layoffs and cell closures. He also indicated that part of the problem is in the increased costs of retirement as well as increases in insurance costs.
If I also remember correctly, earlier in the year there was supposedly a shakeup at PERS and new board members were appointed in the light of past financial problems.
It is well known that the board assured investors that they would
get a minimum of eight per cent on their investments regardless of what happened to interest rates. If their investments exceed the eight per cent then retirees get the benefit of the higher rates.
If that is correct, then retirees also should expect cuts in their interest rates if the actual rate of return is less or big losses are suffered as a result of unwise investments.
We’re not taking issue with retirees from tax supported jobs, but feel that there should be a careful scrutiny of just what is or is not proposed by PERS . Retirement programs of these same tax supported institutions should also come under careful scrutiny. It’s obvious that retirement costs, health benefits and insurance costs are rising rapidly and threaten to consume the giant share of most of these budgets.
Much of these costs have been passed from the individuals to the various tax supported programs in labor negotiations, and while it will be difficult to undue some of these overly generous benefits....it’s obvious that something must be done if we are going to be able to adequately support our schools, for instance, as well as support much needed police protection, and jails that form the brunt of the public safety.....after all in my book that is the prime role of government....protect the public safety.

This is Floyd Wynne and that’s THE VIEW FROM HERE.