The Board will consider seeking a bill for the 2001 legislative session on this issue. After consulting with legal counsel, the Board determined that no such deficit exists or is likely to exist in the foreseeable future. As a result, use of a contingency reserve does not appear to be an option to address employer rate issues. In the conduct of the 1997 actuarial valuation, which resulted in the most recent changes to employer contribution rates, the Board and actuary recognized the dominance of the Money Match calculation method and adjusted accordingly the assumptions on which the valuation was based. This change is expected to contribute significantly toward stabilizing future employer rates.
Valuations occur every two years.
Employer outreach Finally, the Board approved a PERS staff plan to conduct an employer outreach program to provide information to employers on the concept of pooling and other contribution rate issues. Summary Board approved an option that allows employers to phase in rate increases over five years. Board established an ad hoc committee to explore all facets of a rule that would pool local government rates. The PERS Board and others will continue discussions on how employers may issue bonds to amortize their unfunded liabilities. Lump-sum employer payout will be considered for future legislation.