City Club of Central Oregon February forum: PERS SNATCHERS
Is Oregon’s Pension Promise Broken? Can it be fixed?
Oregon has sought to attract and retain the best and brightest public employees by promising fixed rates of return on pensions within the Public Employee Retirement System (PERS). Oregon originally failed, however, to adequately fund those promises. Accordingly, the Legislature reduced pensions in 2003. But when the stock market crashed, public employers still had to make up the difference. This situation begs the following questions:
- Is PERS broken? If so, can it be fixed without breaking promises to employees?
- How is PERS impacting other programs?
- If pensions are reduced or privatized, will Oregon need to increase wages to attract and retain quality employees?
- What are the alternatives to the current system?
- What legal, economic, and political obstacles exist to those alternatives?
- Who gets to decide, and how do we hold them accountable?
- Should Oregon retire its public retirement program, as we know it?
How is paddling down the Deschutes River similar to the stock market? David Rosell of Rosell Wealth Manangement explains and how this eventually leads to retirement.
David has written a new book, “Keep Climbing,” and it is due out May 2017, with a book release party at The Barrel Thief on June 7.
In our money segment, Tyler Simones of Northwest Quadrant Wealth Management joined Central Oregon Daily at 3pm to talk about the stock market. The market is at a record high, yet some investors are not experiencing that same kind of growth. Tyler explained it’s because when stocks are up, bonds are typically down, and most investors have a mixed portfolio with both stocks and bonds. He recommends having bonds in your mix but perhaps look for shorter term bonds.
Tyler also talked about the importance of paying yourself first, which means deciding on an amount, no matter how low or high, to put aside first before paying bills or anything else. He says if young people can begin this habit now, it will make all the difference for their financial future.