PERS - Members Strunk / Eugene Implementation Frequently Asked Questions (FAQs)

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Strunk / Eugene Implementation Frequently Asked Questions (FAQs)

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Q1. What does the Strunk decision mean for some PERS retirees and benefit recipients who were Tier One members?

Q2. What does the Eugene decision mean for benefit recipients?

Q3. In general, how are various retirement dates and/or classes of members affected by Strunk/Eugene

Q4. Are benefit recipients who had a variable account affected by Strunk and/or Eugene?

Q5. How will the account adjustment work for retired members?

Q6. How can I determine how the recalculation will affect me?

Q7. What is the “direct recovery” method?

Q8. As an affected retiree, can I repay the overpaid amount in a lump sum and will that lessen the monthly reduction to my benefit?

Q9. Can an affected benefit recipient receiving a monthly benefit repay the overpaid amount in some manner other than a lump sum or actuarial reduction (e.g., equal payments over five years)?

Q10. Will the actuarial reduction end when the member has fully repaid the overpayment from the 1999 earnings allocation (calculated as of the benefit adjustment date)?

Q11. Will the actuarial reduction end with the death of the recipient, or will the collections continue to affect the beneficiary over their lifetime?

Q12. Can I change my benefit option election originally made at retirement because the amount of my benefit is changing?

Q13. Can an affected retiree purchase service credit in light of the adjusted accounts, benefits, and possible retirement method changes?

Q14. Which life expectancy factors will be used to determine the amount of my monthly repayment - the blended life expectancies from the last Milliman study or a new experience study done by Mercer?

Q15. Will the actuarial "factors" be derived from occupational groups, gender groups, or simply from the blend of these as is currently used for actuarial equivalency factors?

Q16. Why not charge off the overpayments made to retirees to administrative expenses or reserves?

Q17.What are the financial impacts of the Strunk/Eugene decisions to PERS’ unfunded actuarial liability?

Q18. Will interest be paid if PERS owes me money based on voiding the COLA freeze?

Q19. Will PERS help individual members with possible tax issues associated with the overpayment and potential tax consequences and penalties associated with repayments?

Q20. What does the term “window retiree” mean?

Q21. Will PERS wait until the White case is resolved before adjusting Tier One regular accounts for the 1999 overcrediting? (The White case challenges elements of the Settlement Agreement entered into by the PERS Board and the original plaintiffs in the Eugene case).

Q22. If I retired under the Full Formula method, will the Strunk/Eugene adjustments affect my retirement benefits?

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Page updated: April 30, 2007

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