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Lawyer says proposed school board PERS changes are legal

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Wednesday, March 13, 2013

Portland attorney William Gary said the Oregon School Boards Association's proposed changes to PERS benefits would be legal.

The OSBA has asked for a package of legislation that would cut back PERS benefits by at least $1 billion, and possibly as much as $2 billion, if it were to pass. It has heavy support from the Republicans, who used the reforms to create an alternative budget they presented last week after the Democratic budget committee co-chairs presented theirs.

The Democrats have consistently been skeptical about the legality of changes to retirees’ and Tier One and Two employees’ benefits, given past legislation that established firm contract rights for those employees. They have also proposed cuts, to the tune of $455 million, but their model is less well defined and would reduce retirees’ annual payments by much less.

Read more at The Statesman Journal.

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