Dems raise taxes, yet award half-million bonuses

By In the news
In: Measure 37
Saturday October 3, 2009

STATE INVESTMENT MANAGERS GET HUGE BONUSES AS PERS RATES SOAR
Democrats Raise Taxes to “˜Prevent Cuts,’ Yet Award $475,000 in Bonuses to State EmployeesBy House Republican Office,

State Investment Managers Get Huge Bonuses…
“Eleven employees in the Oregon treasurer’s office received bonuses in February ranging from $9,860 to $57,006.

“The money was paid as a performance reward to investment managers who oversee the Oregon Public Employees Retirement Fund, the Common Schools Fund and other portfolios totaling about $60 billion.”
(Oregon Treasurer’s Fund Managers Get Thousands in Bonuses, The Oregonian, Michelle Cole, 9/30/09)

…Even if Their Funds Lose Money.“State investment managers earn a base salary that averages about $160,000 a year. They qualify for a bonus only if the funds they manage perform better than at least 55 percent of comparable funds, based on a five-year average. The amount is determined on a sliding scale — bonuses might still be paid even if a fund loses money.” (Oregon Treasurer’s Fund Managers Get Thousands in Bonuses, The Oregonian, Michelle Cole, 9/30/09)

PERS Investments Tank, Rates Soar….
“State and local government agencies, school districts and municipalities across Oregon face a major hike in their pension costs because of last year’s financial market meltdown.

“How big? Contribution rates to Oregon’s Public Employees Retirement System differ widely by employer. But system wide, they will increase by an average of 8.4 percentage points starting July 1, 2011, according to a new report from the system’s actuary.

“That means payroll rates to fund pensions will go from an average of 4.7 percent of payroll to 13.1 percent. Looked at another way, with PERS employers’ total payroll of more than $8.1 billion, it implies an aggregate annual contribution increase of about $680 million statewide.”
(Oregon Governments, Schools Face Big Increase in Pension Costs, The Oregonian, Ted Sickinger, 9/30/09)

…While Bonuses for Investment Managers Continue to Balloon.
“The analysis warns that the state payout could balloon to more than $800,000 in 2010.”
(Oregon Treasurer’s Fund Managers Get Thousands in Bonuses, The Oregonian, Michelle Cole, 9/30/09)

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