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The County did not have any significant reduction in insurance coverage from the prior year. The County has not experienced settlements in excess of insurance coverage in prior years. The County also monitors risk activity to ensure that prope: reserves are maintained. Various County funds participate in the program. Pension Plans Substantially all regular full- and part-time employees are participants in the State of Oregon Public Retirement System (PERS), an agent multiple-employer public employee retirement system that acts as common investment and administrative agent for governmental units in the State of Oregon. The County's payroll for employees covered by PERS for the year ending June 30, 1998 was $42,635,836. The County's total payroll for the year ending on June 30, 1998 was $45,325,004. All County regular full-time, part-time, and temporary employees working over 600 hours in one year are eligible to participate in PERS. Benefits usually vest after 5 yeazs of continuous service. Retirement is allowed at age 58 with unreduced benefits, but retirement is generally available after 55 with reduced benefits. Compulsory retirement age is 70. Retirement benefits are based on salary and length of service, and are calculated using a predetermined formula. Benefits aze available in a lump sum or in monthly installments using several payment options. PERS also has death and disability benefits. All benefit provisions under PERS are established by state statute. The County is required by the rules applicable to PERS to contribute 835 percent of eligible employees salaries to PERS. The required employee contribution of 6 percent of covered compensation prior to the pay period that began December 1, 1994 was paid by the County. Since that date, employees have been paying the required 6 percent contribution. PERS policy provides for actuarially determined periodic contributions that are sufficient to pay benefits when due. The contribution rate for normal costs aze determined using the "entry age actuarial cost method." A thirty-year amortization, which started in 1976, is used to amortize the costs of the unfunded actuarial liabilities. Any ad hoc benefit increases are funded over 30 years. In 1992, the Oregon Supreme Court ruled that the State of Oregon was responsible for breaching a contract with PERS members when the Legislature passed House Bill 2352 during the 1991 Legislative session. HB 2352 changed PERS laws to allow the state taxation of PERS benefits. The Court ruled that PERS members must be compensated for the breach, for benefits derived from work performed before September 28, 1991, but not for benefits attributable to that date. The court did not specify the remedy, but left it to the Legislature. During the 1995 legislative session, House Bi113349 was passed. The bill required the PERS Boazd to increase contribution rates to pay for the benefit increases, to remedy the state taxation of PERS retirement benefits accrued prior to September 28, 1991. The details of the bill have been finalized and maximum amount liable has been computed. The County anticipates that the start payment date of the projected I.89 percent increase will be July 1, 1999, and that cost to the County will be approximately $420,000 of General Fund moneys, annually. This liability has been amortized over a 30-year period. It is anticipated though, that this cost will be offset by about 0.5 percent, because of predictions that the post-retirement benefits will be completely funded by July 1, 2000. However, in response to a 1998 Oregon Supreme Court decision and recent legislation, PERS Employers have put into question the final determination of whether the Public Employers will in fact be held liable to pay for this benefit increase, which was required to remedy the States' Obligation. ECONOMIC AND DEMOGRAPHIC INFOItMATION General This section focuses on the County and the major cities located within the County. Information is also provided on the Salem Metropolitan Statistical Area ("Salem MSA") which includes the County. Sources include: the Oregon ~ Blue Book, the Center for Population Research and Census at Portland State University, the Mid-Willamette Valley Council of Governments, Oregon State University Extension Service. 43