Feb 122011 Filing Judge King Show Cause PERS

Roberta Kelly, pro se
roberta (cJ,mort ga qe ga leri a. conr

5109 NE Ainsworth Street
Portland, OR 97 218-1826
Telephone: 503 -849.4634
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
Roberta Kelly, Civil 09-1125-KI

Case No.
Plaintiff, @US NINTTI CIRCUIT APPEATS
DEMAND IPERS] PIIBLIC EMPLOYEES'
V. RETIREMENT; CIVL RIGHTS $ 1983;
HLIMAN zuGHTS' VIOLATIONS' ;
FIRST CONSTITUTION ICHARTER], ETCETEM
CITY OF PORTLAND; MULTNOMAH
COUNTY; STATE OF OREGON; IALL
MLTNICIPALSI, GOVERNOR JOHN
KITZHABER; PUBLIC EMPLOYEES ;
RETIREMENT SYSTEMS IPERS] ;
PORTLAND MAYOR SAM ADAMS;
COMMISSIONER RANDY LEONARD;
COMMISSIONERS, AMANDA FRITZ;
NICK FISH; DAN SALZMAN; ALIDITOR
LAVONNE GRIFFIN-VALADE femails] ;
STEVE S. STAUL; RONALD FRASHOUR III;
LINDA MENG [email], CITY ATTORNEY,
FOR CITY OF PORTLAND, ET AL.
Defendants.
ORDER
I, Roberta Kelly, hereby dernand the Court for the necessary time to file Freedom of
Information Act IFOIA] requests and/or the Court provides transparency before the Show
Cause Order hearing on February L4,20ll: Public Employees Retirement System [PERS]:
Exhibit A [3 Pp]: Oregon Public Employees Retirement System, An Agency of the State of
Oregon, Contprehensive Annual Financial Report, For the Fiscal Year Ended June 30, 2006;
page 1 - 02.12.11 | o9-1 12s-Kt hffi6144lus NrNTH crRCUrrAIrEALS DEMAND IIERSI puBLIC
EMPLOYEES' RETIREMENT; CIVIL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,; ETCETEM
Poge 6, Oregon Public Employees Retirement System, Public Employees Retirement
System
O rg anizatio n al C hart, Te chn o logy : Saber Solutions, Inc
It is demanded that the PERS Organizational Chart Consaltantprovide one hundred
percent LI00%l transparency for an independent auditor to forensically examine the entire
discovery in the matter of Saber Red. Portland Police Bureau

IPPB] Ronald Frashour, III, is
certain in stipulating in his deposition on the record the corporation.
Exhibit 1, llPl: Judge Members If by reason of age you cannot make the requirecl
contributions during each offive calendar years at or before reaching 75 years qfage (the
mondatory retirement agefor judges), you may not become a juclge member. Any contributions
remitted on your behalf will be sent back to your employer. Exhibit2,

llP]: Struck and Eugene
- Tier One; and,IIP): Wat is Strunk / Eugene? Exhibit 3 lPp 3l; Oregon PERS Overview, A
Presentation to the Lane County Association of PERS Retirees, Steve Delaney, Deputy Director,
April 3, 2007; Page 4, PERS System Overview and Agency Responsibilities (continuecl), In early
2003, PERS had a projectecl unfunded actuarial liability @AL) of more thun gI7 billion, ancl
was only 65 percent funded . . .
... . PERS is now 104 percentfunded with ussets exceeding liubilities by 1.75 billion.
Exhibit 5, la Ppl: Letter dated Februaty 10, 2011,P{E: David Dietz, dated Febraary 7, 2011,
Bloomberg Markets Magaztne: Rich Take From Poor as (LS. Subsidy Law Funds Luxury Hotels.
The Exhibit l9Ppl, was faxed to the chambers of Judge Garr M. King, et ctl., at (503) 326.8239,
on February 17,2011. See also, SCRIBD:
http ://www. scribd. com I docl 48 57 2205lzuCH-TAKE-FROM-POOR-AS-U-S-SUB SIDy-LAw-F
UNDS-LUXURY-HOTELS-David-Dietz-Feb-7-2011-Bloomberg-Markets-Magazine-RE-1 12th-
C ongress-Patrick-Leahy.
Page2 - 02.12.11 | 09-i 12s-KtF0so144l us NrNTH crRCUrr AIrEALS DEMAND IrERS] puBr-rc
EMPLOYEES, RETIREMENT; CIVL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,: ETCETERA
The Public Employees Retirement System
TPERS] seemed much simpler to access on the
world wide web [www] when I copied the years Tg99-200g, onto CDs for the case of cv-0g-
I42L-AC, during the time line of 2008, to current: EXHIBITS were provided to U.S. Bancorp
IUS Bank] and to John V. Acosta, U.S.D.C. Judge in Portland, Oregon, in2009-2010.
PERS: SCRIBD:
http://www.scribd.com ldocl48638963lOregon-Public-Employees-Retirement-pERs-2001
http://www.scribd.com 1docl48639205/Oregon-Public-Employees-Retirement-pERs-2002
http://www.scribd.com 1docl48639266/Oregon-Public-Employees-Retirement-pERs-2003
http://www.scribd.com ldocl4863937 5lOregon-Public-Employees-Retirement-pERs-2005
http://www.scribd.com ldoc/48639385/Oregon-Public-Employees-Retirement-pERs-2006
http://www.scribd.com 1doc148639398/Oregon-Public-Employees-Retirement-pERS-2008
http://www.scribd.com 1doc14863963O/Oregon-Public-Employees-Retirement-PERs-2009
The links provide public access so that money can be saved and other forms of energy
required for the action of understanding made easier.
It is imperative we once again address the exact demand that was brought to the Coufi,
for the exposure now glaring, grown extraordinarily retirements, at the expense of the
-portfolio
American new poor. The masses have not realized: 104 percentfunded with ussets exceeding
Iiabilities by 1.75 billion, and this is said to be a Republic form of democratic govemment.
Therefore, the exposure to what windfalls 1n20I0?
During the time of cashing a U.S. Treasury Social Security Check (the check), deductions
by and through an Internal Revenue Service IIRS] not of the United States government but, in the
3 - 02.12.11 | 09-i 12s-Kt lT0€61441us NrNTH crRCUrr AeIEALS DEMAND ipERSl puBI-rc
Page
EMPLOYEES' RETIREMENT; CIVL RIGHTS $ 1983; HUMAN RIGHTS, VIOLATIONS'; ETCETERA
Courts, [2003, Freedom Law School] and also Tommy Cryer, et al fuLly exposed: global
partnership [see also, UNIFUNDI, FOIA filings or agatn, the transparency in the Court and also,
Tri-Met's claim because the money is all the same.
Further, upon attempting to cash the check, the check cashing systems, are a digital
software which has private-public parlnerships with every so-called bank. It was said that U.S.
Bancorp. issues the check. Thus, discovery immediately andlor before February 14,2011, a
discovery either by the Coufi's cooperation in transparency or, due process by and through a
FOIA. U.S. Bank refused to cash the clteck. An eye witness who has an account since 1965, or
thereabouts with U.S. Bank, Mr. Clifford C. Walker. And another eye witness to the check being
denied cashing by banks stipulating at Cash Oregon they cash goverrment checks: Yolanda
Kutp, Director for one of the govemment programs set-up to assist families and seniors.
The path of legal tender has brought an awakening. We The People should understand
how so many can reap such mountains of debt while Them The Others are in excess of
abundance. A base of have nots' for the haves,' is real and especially when the basic human
right in America, water, can be taken it's for telling the truth. Then, the reality of life's
-and,
precious gift, time, is considered an asset of a class which can apparently do whatever it chooses
until the who or whom stops it. The darkest journey in this time has been forgiven.
In closing, do we go here: http://en.wikipedia.orglwiki/Manslauehter? And who or
whom do I sewe the NOTICE, to cease, desist and end immediately the continued destruction for
the intentional tort agenda to enrich only a select few. Should our media considered The Fourtlt
Estcfte serve the people's purpose of this Country's freedom, hope can prevail in that, we may not
find the future so dark and dangerous. Terrorism may very well end in the light of all
transparency which proves the Republic form of government stands. Consultants with global
4 - 02.12.11 | og-i 12s-Kl F0-a6illus NINTH crRCUrr AIrEALS DEMAND IIERS] puBt-rc
page
EMPLOYEES, RETIREMENT; CIVIL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS'; ETCETEM

Courts, [2003, Freedom Law School] and also Tommy Cryer, et ctl fiflly exposed: global
partnership [see also, UNIFUNDI, FOIA filings or again, the transparency in the Court and also,
Tri-Met's claim because the money is all the same.
Further, upon attempting to cash the check, the check cashing systems, are a digital
software which has private-public partnerships with every so-called bank. It was said that U.S.
Bancorp. issues the check. Thus, discovery immediately and/or before February 14,201I, a
discovery either by the Court's cooperation in transparency or, due process by and through a
FOIA. U.S. Bank refused to cash the check. An eye witness who has an account since 1965, or
thereabouts with U.S. Bank, Mr. Clifford C. Walker. And another eye witness to the check being
denied cashing by banks stipulating at Cash Oregon they cash government checks: Yolanda
Kutp, Director for one of the govemment programs set-up to assist families and seniors.
The path of legal tender has brought an awakenrng. We The People should understand
how so many can reap such mountains of debt while Them The Others are in excess of
abundance. A base of have nots' for the haves,' is real and especially when the basic human
right in America, water, can be taken it's for telling the truth. Then, the reality of life's
-and,
precious gift, time, is considered an asset of a class which can apparently do whatever it chooses
until the who or whom stops it. The dark night of the soul rn this journey, understood.
In closing, do we go here: http://en.wikipedia.org/wiki/Manslaughter? And who or
whom do I serve the NOTICE, to cease, desist and end immediately the continued destruction for
the intentional tort agenda to enrich only a select f-ew. Should our media considered The Fourth
Estote serve the people's purpose of this Country's freedom, hope can prevail in that, we may not
find the future so dark and dangerous. Terorism may very well end in the light of all
transparency which proves the Republic form of government stands. Consultants with global
4 - 02.12.11 | 09-i 125-Kt h 0-e6i 44l us NINTH crRCUrr ArIEALS DEMAND IIERS] puBr-rc
page
EMPLOYEES, RETIREMENT; CIVIL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,; ETCETERA
agendas must reap the whirlwind of zillions in these modern times and that may be the end of
PERS, sooner rather than later don't last forever so that judges can surf onto retirements.
-serfs
And, Goldman Sachs' et el., with their bald-bold-faced lies about them and their full
spectrum dominance lpraytng like hell) to rule their kleptocracy on earth, with the people as
digital siave-consumer-oholics.
Exhibits, [21 Pp]: PERS for the Years Ended June 30 2001 and 2000 - June 2004.
Respectfully submitted this l2rE day of February 2011.
Roberta Kelly, Pro-Se
5 - 02.12.11 | 09-1 i2s-Kr hm6144l us NrNTH crRCUrr AIIEALS DEMAND tpERSl puBLIC
page
EMPLOYEES, RETIREMENT; CIViL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS,; ETCETERA
Oregon Public Employees
Retirement System
An Agency of the State of Oregon
Comprehensive Annual
Financial Report
For the Fiscul Yeur Ended June 30, 20A6
Paul R. Cleary
Executive Director
David W. Tyler
Chief Financial Officer
Oregon Public Emplol'ees Rctirement System
Public Employees Retirement Board
The C)regorr Legislature has delegated authority to the PERS Board of Trustees to adrninister the System. The Board
is
cotlposeci olflve trustees who administer retirement (service and disability), death, and retiree health insurance
benefits.
PERS also adrninisters the Oregon Savings Growth Plan, a deferued compensation program for
state and local govern-
ment employees.
All mernbers olthe Board are appointed by the governor and confirmed by the Senate. The governor designates the
chailperson.
one metnber must be a public employer manager or a local elected official, one member must be a union-represented
pLrblic employee, and tlrree mernbers must have experience in business management, pension
managerxent, or investing.
T'he three Board rrrembers representing business management, pension *unug.r.nt,
or investing are James Dalton, Eva
Iftipalani" and Miclrael Pittman. Thomas Grimsley was appointed to represent public employees, ancl Brenda Rocklin was
appointed to represent public ernployers. Pittman is Board chair; Rocklin is vici chair.
'lhe current term lor
each tnember began September 1,2003, with staggered expiration dates.
Michael Pittman (chair)

Michael Pithnan, chair, has approximately 20 years of experience in the human resource and employee benefits field.
He has served in senior corporate human resource roles, which have included responsibilities for pensions in the United
States and the United Kingdom. Currently, he is providing consulting services in this area. Pittman received his bachelor's
degree in environrnental health in 1975 and his nraster's degree in environmental health in 1982. He earned both degr.ees
at the University of Washington.
Brenda Rocklin (vice chair)

Brenda Rocl<lin, vice chair, is the presiclent and chief executive officer of the State Accident Insurance Fund (SAIF)
Corporation. Before SAIF. she served as director of the Oregon Lottery. Rocklin was an assistant attorney general in the
Oregon Department of Justice (DOJ) from 1984 to 2002, where she worked in administration, the appelite-Oivisio., the
Crirninal Justice Division, and the Civil Enforcement Division. Before joining the Department of Juitice, Rocklin u,as a
deputy district attorney in Urnatilla Counry from 1981 to 1983. Rocktin received her bachelor's degree in journalism at
Idaho State University in I 978 and her J.D. at the Willamette University College of Law in l98l .
James Dalton
James Dalton has been with Beaverton-based technology frrm Tektronix since 1989. He currently serves as the senior
vice president of Corporate Development and is responsible fol Corporate Development, Central EngineeLing, the corpo-
rate secretary, and the law deparlment. He also chairs the Tektronix Foundation. He was a past member of ihe board of
directors ol RadiSys Corporation and the Multnomah County Library Foundation. Dalton received his bachelor's deg1ee
in econonrics from tlre tJniversity of Massachr-rsetts and his.l.D. from Boston College Law School.
Thomas Grimsley
Thomas Grirnsley has taught in the Bethel School District #52 in Eugene since 1981 and was a contract negotiator for
the Bethel teachers last four labor contracts. He has served as a member of Bethel's Joint Benefits and lnsuiance com-
nrittee lor the past l7 years and as vice president of Er-rgene's Education Association for the past eight years. He taught
in the Rogue River School District from 1979 to l98l and two high schools in San Jose, Cali-fornia, from1977 to tS7S.
Grimsley received his bachelor's degree in music and his teaching credential in music, speech, English, and dranta at
Califbrnia State University Chico in 1977. He corlpleted his math endorsement at Lane Com*unity College ancl the
University of Oregon in 1990.
Eva Kripalani
Eva Kripalarli became senior vice president and general counsel of Knowledge Learning Corporation effective
Janr-rary 7,2005, following the company's acquisition ol I(inclerCare Learning Centers, Inc. She joined KinderCare in
1997, serving as senior vice president, general counsel, and corporate secretary. Prior to KinderCare, Kripalani was a
paftner irr the law firm of Stoel Rives LLP in Portlancl, Oregon, where she had worked since 1987 with an emphasis
on corporate and securities law, ntergers, and acquisitions. Kripalani serves on the boards of directors of the Cascade
AIDS Project and the Portland State University Foundation. She also serves on the advisory board for the Porlland State
University Scliool of Business. Ms. I(ripalani was selected as a 2002 outstanding woman in busiless by the Portlald
llusiness Journal. She received her B.S. in finance lar.v, magna cum laude, from Portland State University in 1983 and her
J.D., magna cum laude, from the willamette University college of Law in 19g6.
.5.
Oregon Public Employees Rctirenrent System
Public Employees Retirement System Organizational Chart
Public Employees Retirement Board
I
I
Paul Il. Cleary

Executive Director
I
F Inremal Audiror
l- HealLh lnsurance
F Hulnarr Resources
F Executive Suppon
Del-ened Compensarion
i
Steve Delaney
Deptrq Director
.Jc{nnettc S. Zang Jel'lrey I'I. Marecic Steven P. Rodemnn Craig NI. Stroud David rr\/. Tyler
AdnrinistraLor. Custolner Adrni nistrator. Information Administrator, Pol icy, Plannrng, Administrator, Benefit Adnrinistrator, Fiscal
Sen,icc Drvision Services Drvision and Legislative Analysis Division Payments Division Sen,ices Division
I I I I I
lrnage and Inibrmatiotr
Customer Service Center Legislative Issues Retirement Services Financial Reporting
Management
I I I
I I
Publications and Qualitl' Assttrance Research and Risk
Communications Beneflt Recalculation Actuarial Analysis
Intbnnation Services Management
I I I I I
Mcnrbership/Errpl o1,er
Technical Operauons Social Security Speciall-v Set.lices Budget and Fiscal Operations
Relations
I I I
Sottware Lingineering Contested Case Hearings Contracts and Procuremellt
I I
Administrative Rules Contributions and Banking
Public Employees Retirement System Consultants

;\ctuan':
Mercer Huuran Resource Consulting, LLC
Legal Counscl:
Oregon Dcpartmenl o1- Justice
Orrick Herlington & SLrtcliffe LLP
lce Millerr0
Br-rllivant Llouser Bailel' PC
Insurance Consultant:
B.W. Reed Benefrts. LLC
\'lcdical Advisor:
Lau'rence Duckler. N4D
-lcch
nologl':
Saber Solutions, Inc.
Plovaliant. Inc.
,{uclitor:
Sc(rulan ol'State Audits Dir ision
.6.
Judge Members
Note; Processing a judge member benefit estimate takes at least four weeks.
PERS Judge Member Program

238 500 to 238.585 created the PERS Judge Member Program, which allowed the transfer of all
sitting judges covered under the Judges Retirement Fund to the Judge Member Program. It also
allowed the transfer of district court judges who were previously considered regular PERS members.
The Judge Member Program now automatically includes any judge of the Oregon Supreme Court,
Court of Appeals, Oregon Tax Court, and Circuit Courts.
Generally, if you are a judge elected or appointed on or after January \, 1984, you automatically
become a judge member of PERS on the date you took office and are not subject to the original
Judges Retirement System underORS 1.314 to 1,380 (ORS 238.505(1)). As a judge member, you
may retire pursuant to ORS 238.535(1)(a), referred to as "Plan A," or pursuant to ORS
238.535(1)(b), referred to as "Plan B."
If by reason of age you cannot make the required contributions during each of five calendar years at
or before reaching 75 years of age (the mandatory retirement age for judges), you may not become a
judge member. Any contributions remitted on your behalf will be sent back to your employer.
For more information regarding this program, please refer to the Judge Member's Handbook.
Questions? Contact the PERS Judge Member Coordinator:

Kristi ne Cornett 503-431-8966
Kristin e.Cornett@pers. state. or. us
Forms and Publications

PERS provides all online forms and publications in .pdf format. To view them, you must have the
rnost recent version of Adobe Reader@, Click here to download Adobe Reader@.
o ludge Members Handbook
o Judge Member Benefit Estimate (if you have any questions, please contact Kristine Cornett at
503 -4 3 1 - B 9 66/ Kri sti n e. Corn ett@ pers. state, or, us)
o Judge Member Variable Form
. Judge Members Retirement Package
o Judge Member Retirement Application
o Pre-Retirement Designation of Beneficiary
o Election of Former Spouse as a Pension Recipient
o Variable Election Retiring Members
o PERS Acknowledgment of Receipt of Federal Tax Information Disclosure
o Verification of Age
o w-4P_2010
o Direct Deposit
I oll 2/1112011 3:41 AM

Struck and Eugene - Tier One
What do the Strunk/Eugene cases mean for me?
For Tier One members, Strunk requires PERS to annually credit at least the assumed earnings rate
(currently B percent) to member regular accounts, Account balance adjustments have been made for
2003 and 2004 to reflect the B percent earnings crediting that had not been previously credited due
to PERS Reform legislation.
Strunkalso upheld the use of regularly updated actuarial factors (effective July 1,2003) and the
redirection of Tier One and TierTwo member contributions from regular and variable accounts into
the Individual Account Program (IAP), effective for contributions made on or after January I,2004.
The Eugene case required that accounts had to be adjusted for every Tier One member with a regular
account that received earnings crediting for 1999, The Eugene case required PERS to reallocate 1999
regular account earnings crediting at 11.33 percent (20 percent was originally credited). TierTwo
members and Variable accounts were not affected.
PERS adjusted the 1999 earnings crediting from 20 percent to 11.33 percent forTier One member
regular accounts and provided 8 percent earnings crediting for 2003 and 2004.
Member annual statements for 2004 showed the recalculated regular account balance (including all
Strunk and Eugene adjustments). These statements were mailed to Tier One members in January
2006.
Tier One 2005 member annual statements, including 8 percent earnings crediting for 2005, are
scheduled for mid-2006.
The example below shows the affect of Strunk/Eugene on a Tier One member's regular account and
uses the following:
1. Beginning account balance of $75,000 as of 12-31-1998

2. Beginning salary of $50,000 annually as of 1999
>re-Strunk/ Eugene >ost-Strunk / Eusene
ear ialary 60lo Member Pre-Earnings :arnings inding Pre-Earnings Earnings Ending
'.2o/o
/Year Contribution Crediting 3rediting \ccount Crediting Crediting Account
lncrease) $) Balance ($) tate (o/o) Elalance lBalance ($) Rate (o/o) Balance
$) f$) rs)
r.99€ 75,000 75.000
0,000 3,000 78,000 20.00 )3,600 178,000 11.33 36,837
tnna 1.000 3.060 96.660 1.00 104,393 39,897 1.00 )7.OB9
2001 ;2,020 71)1 t07,5t4 1.00 16.115 100,210 1.00 108,227
002153.060 3,184 L9,299 8,00 28,843 t 11.411 3.00 120,324
20031 4.122 3.247 132.090 lb-- r32,090 r23,577 3.00 L33,457
20041 5,204 0 t32,090 1.00 L42,657 133,457 1.00 144,133
\Al hat is Stru n k/E u g en e?
Strunk/Citv of Eugene implementation memo
Slr_unt Supreme Court O
Eugene Supreme Court Decision
l of 1 21112011 3:26 AM
What is Strunk I Eugene?
What is the Strunk case?

The Strunk case was a challenge to various provision of the 2003 PERS Reform legislation. The
Oregon Supreme Court ruled that the cost-of-living-adjustment (COLA) freeze enacted by the 2003
legislature to recover overpayments from earnings crediting in 1999 was invalid. As a result of 2003
legislation, PERS temporarily suspended the COLA for all Tier One members who retired with an
effective date on or after April 1, 2000, and before April 1, 2004, under the Money Match calculation,
The court also determined that PERS must annually credit the assumed raLe, currenily 8 percent, to
Tier One member regular accounts. PERS credited 0 (zero) percent to Tier One regular accounts in
2003 based on legislation passed that year.
For Tier One members who retired from April 1, 2000 through March 1, 2004, the frozen cost-of-
living adjustments (COLAs) will be restored as part of Strunk/Eugene implementation and will help
offset any overpayment received by the benefit recipient as a result of the Eugene case.
What is the Eugene case?

Several employers and members sued to challenge PERS policies on actuarial factors, variable match,
and earnings crediting. Marion County Circuit Court Judge Paul Lipscomb remanded the pERS Board's
orders allocating 1999 earnings and setting employer rates for the petitioning employers. The Board
was directed to reissue these orders in light of the judge's final 2003 ruling on many PERS practices,
such as actuarial factors, variable account calculations, and reserving.
The Oregon Supreme Court issued its decision in the Cify of Eugenevs. PERS caseAugust 77,2005.
The Court ruled that the Settlement Agreement and 2003 PERS Reform legislation resolved the
issues in the case, The PERS Board and the original plaintiffs in the case entered into the Settlement
Ag reement.
The Settlement Agreement requires PERS to reallocate 1999 earnings to Tier One benefit recipient
accounts at 11.33 percent instead of 20 percent.
Combined application of the Strunk/Eugene decisions

The following benefit recipients who wereTierOne members will generally be affected in the manner
described based on the effective retirement dates:
1. April 1.2000 through March Lt 2OO4 retirements: these benefit recipients have received all
payable earnings for 2003 and 2004 but will have their 1999 regular account earnings corrected
using 11.33 percent instead of 20 percent, Many in this group were subject to the COIA freeze that
was effective July 1, 2003.
2. April 1' 2OO4 through December l, 2OO4 retirements: these benefit recipients need to be
credited with B percent earnings for 2003 and a prorate of 8 percenlfor 2OO4 to the date of
retirement. These retirees were not subject to the COLA freeze but will have their 1999 regular
account earnings corrected using 11.33 percent instead of 20 percent.
3, January 1,2005 through March 1,2005 retirements: these benefit recipients received the
mid-year earnings crediting which credited 8 percent for 2OO4 and a prorate of B percent for 2005 to
the retirement date. These retirees will also be credited with 8 percent earnings for 2003 but will
have their 1999 regular account earnings corrected using 11.33 percent instead of 20 percent. Most
of these retirees are receiving estimated payments. The lookback calculation, which has not yet been
applied, will be used to determine the correct benefit.
4, April 1, 2OO5 and after retirements: most of these benefits were calculated reflecting the
Strunk/Eugene changes so few of these retirements will require adjustment. These retirees are
receiving estimated payments and their retirement benefit will now be considered final, They will
receive a Notice of Entitlement as part of the slrun k/Eugene implementation.
5. Variable account participants: There is no impact on variable account earnings crediting.

Miscellaneous recipients: Everyone with a Tier One regular account that received a 20 percent
earnings allocation for 1999 (e.9., a member who retired prior to April 1, 2000 with a partial lump
sum payable in installments beyond 1999, withdrawals occurring after April 1, 2000, etc.) will have
their account corrected to reflect the 11.33 percent earnings crediting.
211112011 3:23 AM
Oregon PERS Overview
A Presentation to the
Lane County Association of PERS Retirees
Steve Delaney, Deputy Director
April 3,2007
kmffi
PERS System Overview and Agency
Responsibilities (continued)
' In early 2003, PERS had aprojected unfunded actuanal liability (UAL) of
more than $ 17 billion, and was only 65 percent funded. Due to PERS
reform, investment performance, and timely issuance of pension
obligation bonds, PERS is now 104 percent funded with assets exceeding
liabilities by $1.75 billion
' As of December 31,2006, the PERS fund totaled $60.7 billion making it
one of the largest public or private retirement funds in the nation
' The Oregon Investment Council invests fund assets on behalf of the trust.
In the past three years, the PERS fund has ranked near the top in
investment returns for public funds with assets greater than $ 10 billion
hnsffi
PERS System Overview and Agency
Respon sibilities (continued)
Investments generated more than 85 percent of PERS revenues in 2005,
with the remainder from employer and member contributions. Employer
rates for 2007 -09 will average about 15 percent before adjusting for side
account offsets and 8.1 percent after adjusting for offsets. Member
contributions rates are set in statute at 6 percent of covered salary
PERS pays benefits to approximately 110,000 retirees, injecting more than
$2.5 billion into the Oregon economy annually. The average annual
benefit for those who retired from July 1,1996 - June 30,2006 is $22,500
hnsffi
ROBERTA KELLY
5109 N.E. Ainsworth St.; Portland, Oregon 97218
503.849.4634; roberta@ mortgagegaleria.com
Februarv 10,2011
RE: Rich Take From Poor as U.S. Subsidy Law Funds Luxury Hotels
SPEND/wG CLAUSE, ie eg THE PATRIOT ACT, etcetera
ATTENTION: ALL 112TH CONGRESS, ET AL
SENATORS vra faxes
Bern ie Sanders 12021 228.07 7 6
Patrick J. Leahy 12021224.3479
UNITED STATES SENATE COMMITTEE ON THE JUDICIARY
id Carle@-le€hv-Serate.-qav rnedia contact, Senator L
GOMMITTEE ON THE JUDICIARY
via fax[202]225.7682
Lamar Smith, Chair; John Conyers, Jr., Ranking Member
COMMITTEE ON THE BUDGET
vra faxes 12021 225.8628; 12021 225.3393
John M. Spratt, Jr. [York, SC BAR 29745], The Honorable, Chair
Paul Ryan, [Wisconsin BAR #], The Honorable, Ranking Member
HARVARD BUSINESS SC
Dr, Michael l. Norton via f ax [617] 496.5853; mnorton@hbs.edu
Patrick Bayer, Chair and Professor Dan Ariely via fax [919] 684.8974:
Senator Patrick J. Leahy, Chairman, Democrat-Vermont. Democratic Members; Herb

Kohl, Wisconsin; Dianne Feinstein, California; Ghuck Schumer, New York; Dick Durbin,
lllinois; Sheldon Whitehouse, Rhode lsland; Amy Klobuchar, Minnesota; Al Franken,
Minnesota; Christopher A. Goons, Delaware; Richard Blumenthal, Connecticut; and,
Republican Members; Ranking Member Ghuck Grassley, lowa; Orrin Hatch, Utah; Jon Kyl,
Arizona, Jeff Sessions, Alabama; Lindsey Graham, South Carolina; John Cornyn, Texas;
Mike Lee, Utah; Tom Coburn, Oklahoma.
To Whom lt Concerns:
Please find the enclosed information by David Dietz, dated February 7, 2011, Bloomberg
Markets Magazine: Rich Take From Poor as U.S. Subsidy Law Funds Luxury Hotels. [9 Pp].
As you all know, l, Roberta Kelly, have been made a pauper by and through the United States
District Court in the District of Oregon, Division of Portland and the U.S. Congresses.
P-1 - rnOU: Roberta Kelly, dated February 10,2011 llTO: COMMITTEE ON THE BUDGET, John M. Spratt,
Jr. and Paul Ryan; COMMITTEE ON THE JUDICIARY, Lamar Smith and John Conyers, Jr.; SENATORS, Bernie
Sanders and Patrick J. Leahy; HARVARD BUSINESS SCHOOL, Dr. Michael l. Norton; DUKE UNIVERSITY,
Chairman Patrick Bayer, Professor Dan Ariely; BROOKINGS INSTITUTION, Strobe Talbott, President, ET AL
ln 2003, as a fiduciary and preferred mortgage broker for U.S. Bancorp lie eg U.S. Bankl, ef
a/., l, Roberla Kelly, was intentionally defrauded. The purpose during the past decade plus,
has been viewed by the Department of the Treasury, et al. as an intentional agenda:
Ctinton regarded New Markefs as a way to spur development and create iobs in
communities held back by high unemployment and lagging bustness growth. He touted the
program on a sx-state tour in 1999.
Ihl's /s a good business opportunity here, he said at a cabinet factory in

Clarksdate, a Mississippi Delta town with a per capita income of $12,611. lf we can't fully
develop the Delta now, with the strongesf econo my, when will we get around to it?
Clarksdale has received no benefit from the tax credit program, Treasury
Department records show.
ln my understanding as a non-licensed lawyer, a non-practicing attorney at law conflict of

interest defined: reliance upon money, $billions, employed government -a
in strategic placed
positions of power, specifically protecting federal funds and abandoning the rule of law . . .
Srnce 2003, some of the world's biggest financial companies, including Goldman
Sachs Group lnc., U.S. Bancorp, JPMorgan Chase and Prudential, have taken advantage of
a federal subsidy that will cost taxpayers $10.1 billion -- and most of the public has
never heard of it.
What's surprising isn't the opulent makeover: lt's how the project was financed. The
work was subsidized by a federal development program intended to help poor communities.
Money spent on high-end development could have been used to build more than 1,000
joblraining centers, medical clinics and schools. The program, endorsed by Republican
Senator Rick Santorum and House Speaker Dennis Hastert and adopted by Congress, was
signed into law by President Bill Clinton in 2000.
ln 2003,1, Roberta Kelly, trusted and relied upon the promise of U.S. Bancorp, et al., for the
underwriting of real property loans. The 3151 Building, was renovated in real lahor
money, no less than $200,000.00.
lnvestors have used the program, called new Markets Tax Credits, to help build
more than 300 upscale projects, including hotels, condominiums, office buildings and
a car museum, on streets far from poverty, according to Treasury Department records
released through a federal Freedom of lnformation Act request.
Building high-end commercial projects goes against the intent of the New Markets
program, says Cliff Kellogg, a former senior policy adviser at the Treasury Department who
helped design New Markets.
P-2 - rnOrU: Roberta Kelly, dated February 10,2011 llTO:COMMITTEE ON THE BUDGET, John M. Spratt,
Sanders and Patrick J. Leahy; HARVARD BUSINESS SCHOOL, Dr. Michael L Norton; DUKE UNIVERSITY,
Things like luxury hotels are entirely contrary to what we sef out to do, says Kellogg,
who's now a bank consultanf. Some hotels may create jobs and spur other nearby
investment, but you have to ask if these projects prevent worthwhile ones from getting done.
Goldman targeted tracts on the upswing in Pittsburgh and Portland, Oregon, when
the firm go/ ifs first New Markets investment authorizations in 2002. ln Pittsburgh, $30.5
million of a $75 million Goldman investment authorization went to a shopping center in the
East Liberly neighborhood.
Yes I'm angry, says Larry Dowling, pastor af Sf. Agatha, a Roman Catholic parish in
the neighborhood. lt was very disturbing to hear that the Blackstone was benefitting from this
program. There's a great need in this community for economic development and iobs.
Around the Rules: ln Tacoma, Washington, investors found a way to get New Markets
handouts in an area with just a 1 percent family poverty rate. U.S. Bancorp and two other
investors used a $34 million Treasury authorization in 2010 to finance construction of an
antique car museum.
Historic Armory: ln Portland, Oregon, Goldman and U.S. Bancorp partnered with
city government on another cultural development helped by New Markets. ln 2004, the
Portland Development Commission was advocating conversion of a historic armory
into a nonprofit theater, and the project caught Goldman's eye, according to city
records.
The armory, which housed horses and cannons in the 19rH century, sat in the city's
Pearl District, a former industrial area enjoying a resurgence with upscale sfores and housing.
The tract qualified with a 41 percent individual poverly rate because it included one poor
neighborhood on its fringe. The family poverly rate was 11 percent.
Goldman arranged $28 million in New Markets financing for the theater. U.S. Bancorp
put $8.4 million into construction and loaned an additional $11 million. That allowed it to win
$10.9 million in tax credits, city records show.
Goldman will collect a fee of $1.4 million for tracking finances for the government,
according fo spokesman Cohen.
It's Ludicraus': says Shelley Lorenzen, a former League of Women Voters board
member who has studied Portland urban renewal. The area has become kind of the hottest
real-estate market in town, with the besf res/a urants, art galleries and very high-end condos.
Kellogg, the former Treasury official who helped structure the subsidy plan, says New
Markets needs changes. lt should divert money away from projecfs such as high-end hotels
and exhibit halls, he says. New Markefs shou/d target small-bustness development in regions
that truly need a lift, Kellogg says. After all, he says, that was the point from the start.
P-3 - f nOU: Roberta Kelly, dated February 10,2011 ll TO: COMMITTEE ON THE BUDGET, John M. Spratt,
United States Senate Gommittee on the Judiciary, the courts are under your jurisdiction
and therefore, I hereby once again request an intervention into the cases: Civ. Nos. 0B-1421-
AC, and 09-1125-Kl.
It should not be possible that the Judges in the U.S.D.C., ffederal building business operation
for the courts, dedicated to William Jefferson Clinton, in 19971, cannot be well informed to
protect the public: the agenda with the City of Portland and the Porlland Development
Commission.l
THIS lS AN EMERGENCY! The water was intentionally shut-off at 5109 N.E. Ainswofth
Street, Portland, Oregon! The attacks to kill my family and me, can no longer be tolerated. I
am noticing Patrick Leahy, Bernie Sanders, et al., that the City of Portland, State of Oregon,
has been noticed repeatedly and must be waiting for the top level of government to intervene.
lmmediate attention, post haste!
Respectfully submitteQ this 1OrH day of February,2011.

)
.1. ' / ^ ./ Zt, ,.ir' ,'
*."{rrttdbl,
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Roberta Kelly
c: [Faxes] Herb Kohl,202-224-9787;Jeff Sessions,202-224-3149;Dianne Feinstein,202-228-3954;Orrin
G. Hatch,202-224-6331;Chuck Grassley,202-224-6020;IFaxes USDC] 503.326.8289;503.326.8239;
541.431.4149;503.326.8339; IFaxes City] 503.832.4571; 503.823.4019;[ORGov];ioe.oteary@state.or.us;
linda.menq@portlandoreqon.qov;ian.murdock@state.or.us;dan@portlandoreqon.qov;randy@portlandoreqon.qov;
samadams@portlandoreqon.qov;nick@portlandoreqon.qov;amanda@portlandoreqon.oov;lavonne.qriffin-valade
@portlandoreqon.qov;anna.dibenedetto@portlandoreqon.qov scott.moede@portlandoreqon.qov;dcl@miller-
waqner.com; dls@miller-waqner.com;marie.eckert@millernash.com:dweidbel@bwmleqal.com;
ieannie.peurasaari@millernash.com;ieanne.sinnott@millernash.com;larrv@mortqaqeqaleria.com
[The spouse of PDC Commissioner, telephone receptionist for an office where l, Roberta Kelly,
was VP [Mortgage One] and Branch Manager, 1990s1. A Freedom of lnformation Act request
and depositions, post haste.
P-4 - f'nOU: Roberta Kelly, dated February 10,2011 llTO: COMMITTEE ON THE BUDGET, John M. Spratt,
Oregon Public Emplovees Retirement Svstem
Summary of In.r,estment Fees, Commissions, and Expenses
For the Years Ended June 30, 2001 and 2000 t001 )ono
lfllcrnational Equit) Fund Mrnager Fees
Acadian $ I,576,755 I ,605,9 1 3
Barclay's Global lnvestors (EAFE) 68 I,238 94 I ,003
Bmndes Investnlenl 2, I 94,358 2,002.424
CIay Finlay, lnc. 1 1,583,919
"405,073
Driehaus Capital 2,57 5,067 46
3,5'70.7
Ge nesis lnvestment Management Ltd. 1,478.937 1,593,066
Lazard Asset Management 60s,358
Nlarvin & Painter Associates 1,694,344 2,258.142
Montgomery Asset 1,143.827 1.29t,290
Nornura Capital Managenlenl r61,376
Rorve Price 2,667,962 3,004,1 60
Sanford Bernstein 1,906.9r l t,902,646
Schroder Capital l,t 19,097 1.276,855
TT lnternatiorral 1 ,640,711 r,67 1 ,040
Domcstic tiquitv Fund l\,lanagers
Alliance Capital Managernent I ,930,41 1 2,106,805
Barclay's Global lnvestors (all funds) 899,1 86 912,47{)
Becker Capital 1,276,596 r,095.997
Brown Capital 1,029,978 1,039,261
Equ inox I,97 t,206 1 00, r1t
Fiduciary Trust 558,65 I I,595,438
Froley-Revy Equity t,193;794 1,481,126
Nichotas Applegate 2,518,571 4,829,058
Nofihern 1'rust Cornpany q1s 70t 1,1 91 .781
Oak Associates t,-s80,612 |,422.506
Palisade Capital 62',7,304
Peachh.ee Asset N4rnagement 896,0 l4 ))) 11i
Santbrd Ilerlstein 2,236,340 2,088.9,15
Shott Capital Managenrent 2,506.635 7 t.226
ThompsonlRubenstein lnveston r,883,385 1 .833, I 43
Veredus Capital Maltagernent 236,408
Wanger Asset Managelnent 3,1 04,783 3,050,002
Wellington Matragentent 2,508,1 75 1,9 I 8,480
Winslorv Capital Mallagement 218,841
Zesiger Capital Group 1,330,483 2,240.892
Fircd hconrc i\,[anagers l.ces
Alliance Capital Management 3 r 1.996
Barclay's Global Investors (Colporate Governr)rent Bond lndex) 198,070
Blackrock Financial Management 360,267
Fidelily Managenlent Trust Co. 384,785
Mercury Asset Man:lgelrent 679,6;;
lllerrill Lynch lnvestlnenl Managers 643,289
Ilogge Clobal Partuers 796,073 844.701
Wellington Managerlent Co. 1 ,703,07 5 724,963
Western Assct Managernent 1,554,624 686,2 I 0
l{errl Lstatc InYestment I.und
La Salle Advisors (Alex Brown Realty) 4,113,633 979,566
L.cverrged llxtOut
KKR 12,837,960 12,161.660
Custoclial I'ces for Invcstment X,Ianagers
State Street lJauk 715,000 384,505
AlternatiYc E<1uit1, N{anrgers liees
Amphion Eru opean Equity 1.004,542
Arrora Equity Partners 703.1 r0 617,611
BCI Groivth 1 ,279,301 I ,807,7 I 4
Ciistle I larlan 534,701 1,894.024
CVC European 2,250.000 1,6t4,711
Doughty Hanson 2.tJ41,373 3,1 84,02r
Exxel Capital Paflners ?,015,425 857, I 33
Gryphon Parlners 5ql qs5 1,019,979
Flicks lr4use 3,319,461 2,988,312
HSBC Equity 574,886 482, l 43
JI-L 1nc. 3,005,339 ) 161 \q)
Shott Capital Managerrent 2,500,112
TPG Parrners 6,966,1 03 7,079,727
'l'SG F urd
r ,60 r ,466 I ,584,00 l
Veslar Capital |,00t ,971
Otlter Alternarive Equity Fees 6,039,406 o lol 1))
Real Estate Fees nnd Expenses 25,772,816 7,838,1.19
Real Estate Bond 5,539,596 3,528,88 8
State 'l'reasury Fccs 3.3',77,102 4,989,014
Securities [-cnding r 39,825,304 139,1 89,078
Brokcrage Commissions 32,871,207 35,329,195
Othcr Investment Fees and Expenses 82 1.556 724.3'78
'fotal lltestment Fees, Comnrissions, and Expenses -
Defined Bcncfit Pension Plrn q_315,816,s39. [__r96,938,521 .
'33
Oregon Public Employees Retirement System
Schedule of Largest Assets Held
Largest Stock Holdings (By Fair Value)

June 30,2001
Shares Descriplion Fair Value

1 ))'7 6'7\ Pfizer Inc. $ t29,268,384
1,810,60 i Citigroup lnc. 95,612,151
4,824,265 Cisco Systems, Inc. 87 ,801,623
2,629,841 Intel Corporation 76,922,849
1,631,400 Home Depot, Inc. 16,220,910
1,208,300 Arnericredit Corporation 62,171,185
970,900 Merck & Company h-rc. 62,050,2t9
2,000,000 Aibertson's lnc. 59,980,000
t,1n,9a6 Dow Cl-remical Company 57,319,875
697,t65 Aventis S.A. 55,655,49t
$ __ls2-,6o,1s3
Largest Bond Holdings (By Fair Value)

June 30, 2001
Par Value Description Fair Value
$ 158,150,000 Federal National Mongage Association 1.125%

due 02-15-2005 Rating Aaa $ 167,589,974
97,910,540 U.S. Treasury Bonds 3.875%
due 04-i 5-2029 Rating Aaa 104,580,206
100,000,000 Federal National Mortgage Association 5.297o
due 05-26-2004 Rating Aaa 100,281,000
88,606,000 PDV America lnc. 7 .87 5o/o
due 08-01-2003 Rating Baa3 89,206,'t49
83,103,000 U.S. Treasury Notes 4.625%
due 05-i5-2006 Rating Aaa 81,947,031
due 08-3 1-2001 Rating Aaa 78,44r,291
85,583,000 Bundes Obligation (Federal Republic of Gennany) 5.0%
due 02-17-2006 Rating Aaa 73,105,060
70,009,000 Colunrbia Gas Systems lnc.7.42oh
due l1-28-2015 Rating ,A3 68,318,983
due 1i-30-2001 Rating Aaa 64,096,052
56,820,000 Cleveland Electric lllumination 7.677o
due 07-01-2004 Rating Baa3 58,179,154
$ 886,945,512
*A complete list of portfolio holdings is available for viewing upon request.

Oregon Public Employees Retirement Svstenr
Schedule of Fees and Commissions
For the Fiscal Year Ended June 30,2001
Assets Under Basis

N{anagement Fees Points
Investment N,lanagers' Fees:

Fixed Incorr-re Managers $ I 1,483,956,967 $ 5,837,233 0.050829
Equity Managels 19,383,1 l4,l5l 49,11 I ,006 0.256115
Venture Capital Managels 3,592,856 0.000000
KKR Leveraged Buy-Outs I ,141 ,547
,699 12,831,960 0.134627
Altemative Equity Managers (Limited Partnerships) 2,574,625,140 34,424,681 |.331015
Real Estate I\{anagers 1,964,359,361 30,646,449 t.560124
Total Assets Under Nlanagement $37,15'7,197,296
Othcr Investment Service Fees:

Securities Lending Fees 139,825,304
Investment Consultant Fees 1,353,263
Commissions and Other Fees 41,t20,643
Total lnvestment Sen'ice and Managers' Fees $ 315,816,539
Schedulc of Broker Commissions

For the l-iscal Year Ended June 30, 2001
Commission
Broker's Name Conlmission Share / Par per Share
Mcrrill Lyncir, Pierce, Fenler & Smith, Inc. $ 3,492,555 8 1,249,279,221 $ 0.00280
Morgan Stanley & Co., Incorporated 2,454,357I,118,640,290 0.00220
UBS Securities Inc. 2,273,150 250,187,4t4 0.00906
Goldman, Sachs & Co. 2,009,821 324,927,774 0.00619
Lehmar.r Brothers, Inc. t,824,397 2s0,492,466 0.00728
Bear', Stearns& Co., Inc. 1,162,883 31,454,736 0.05605
Salomon Smith Barney L-rc. 1,458,819 655,398,885 0.00223
Deutsche Bank Alex Brown Inc. 1,403,241 157,590,990 0.00890
Credit Suisse First Boston Corporation \,279,77t 315,756,996 0.00405
J.P. Morgan Securities, Inc. 1,038,367 93,479,664 0.011 I i
Sanford C. Bemstein & Co., Inc. 1,007 ,r91 13,919,491 0.07289
HSBC Securities, Inc. 865,57 | 140,515,667 0.00616
ABN AMRO lncorporated '791,263 100,499,033 0.00793
Instinet Corporation 128,182 32,566,L40 0.02238
Dresdner I(leinwort Benson North Arnerica, LLC 705,568 34,674,609 0.02035
Frank Russell Securities, Inc. 631,936 11,642,598 0.05419
SG Cowen Securities Colp. 458,877 51,914,023 0.00884
ING Barings LLC 445,550 298,718,369 0.00149
Jcl'lclies & C'ornpany, Inc. 410,207 11,779,249 0.03483
Credit Lyortnais Sccnlitics 384,211 339,538,348 0.00r r 3
Brokerage commissions on purchases and sales are too numerolls to list; therefore, only the top 20 brokers by
amount of commission paid are shown.
.43.
Oregon l'ublic Employees Retirement System
Summary of Investment Fees, Commissions, and Bxpenses

For tlre Years Ended June 30,2002 and 2001 200t
Internationirl Equity Fund N{anagers
Acadian 1,519,220 $ 1,576,755
Barclay's Global Investors (EAFE) 656.142 68 1,238
Brandes lnvestntent 2,031,t60 2,194,358
Clay Finlay. Inc. 1,203,816 1,405,073
Dnehaus Capital 1,923.077 2,515,067
Genesis Investment Management Ltd. I,453,643 1.478,937
Lazard Asset Managentent 218,446 605,358
Marvin & Palmer Associates |,462.994 1.694.344
Montgomery Asset 1.067,348 l.143,827
Rowe Price 2,104,01 8 ?,667,962
Sarfbrd Bernstein r ,870,8 I 8 l,906.9 I 1
Schroder Capital 1,040,790 l. l 19,097
TT International I ,371,035 I,640,7 l l
Dornestic Flqulty Fund ll{anagers
Alliance Capital Mauagentent 1,531,l 99 1,930,411
Barcltry's Clobal Investors (all tunds) 3,172,?36 899, I 86
Becker Capital r.386,-532 |,276.596
Brown Capital 386,4 r 3 1,029,978
Equ nux
i 817.501 1,971.206
FiduciarY Trust 558,65 I
Froley-Revy Equity |,122.594 1,193;194
Nicholas Applegate 1,139,243 2,5 l 8.57 I
Northern Trust CompanY 816,760 935,792
Oak Associates t,140,488 I ,580,6 l2
Peachtree Asset Managenlent 692.434 896.014
Santbrd Bernstein 2.200,768 2.236,310
Shott Cilpilal Managenlent 776,516 2,506,63s
'Ihonrpson/Rubenstein lnveston l.5s l,878 I,883.385
Veredus Capital Management I,l 59,403 236,408
Wanger Asset Management
) 111 L11 3, r 04,7t33
Wellington Management 2.88t,1 83 2,508. | 75
Winslow Capital Managenent 1 ,083,7 l7 2l 8,847
Zesiger Capital CrouP 659.036 l,330.483
Fixcd Income l\'Ianugers
Alliance Capital Managetrent 1,503,807 3 r r,996
Barclay's Global Investors (Colporate Govertrnlent Bond lndex) 60.,148 198,070
Blackrock Financial Managenrent 1,661,226 360.267
Fidelity Managerncnt'l'rust Co. 1,902,684 384,785
Merrill Lynch lnvestnrent Managers t'19.t46 643,189
Rogge Global Partners 147,805 796,073
WelJington Managenlent Co. l ,67.068
| r,703,075
Western Asse t Managelnent 1,536.908 I,554.624
Real llstate InYestment Fund Malrager
La Salle AdYisors (Alex Brown Realty) t,t6t .274 4, l 73.633
l-cveraged Iluyorrt [\lanager
KKR I 2,664,688 I 2.837,960
('ustodirrn
State Street Bank 663,659 715.000
Allernative IiquitY Nlanagers
2000 Riverside CaPital |,503.979
Aurora EquitY Partners 806,6 r7 703.t t0
BCI Growth 1,076,824 1.279,307
Castle Ilarlan 500.77.5 53r+.701
CVC European 2, r 09,538 2,250.000
DoughtY Hanson 2,177,206 2,041,373
Exxel Ctpital Partners 2,500.000 2,0r5.425
Hicks Muse 2,031,606 3.319,461
Panhenon lnYestors 2,478,685 l,500,000
Pathrvay Private Equity 2,401.304
Solera Parttlers 2,558,002
TPG Partners 6,081,352 6.966. l 03
'l'SG Fund t.s84,365 I,601,466
Vestar Capital 1,237,070 1.001,977
Other All.emative EquitY Fees t3,897,942 I I,2 r 1.758
Reril Estatc liees ancl ExPenses 21,510J23 25,7-72,816
lleal Estate Ilond ExPenses 4,903,274 5.539,596
State Treasury Fees 2,982.810 3,377,102
Securities Lending Fees 47.004,774 I 39,825,304
Ilrokerage Commissions 25,888,343 32.81 t.207

Other Investnrent l'ees and Expenses I , r 08.839 82r.556
'fottl Investment l'ees, Commissions, and Expenses '
Dclined [tenetit Pension Plan 5 2t3,2s6,215 $ 315,816,539
.i]"0.
(hegon Public Flmplovees Retirement System
Schedule of L:rrgest Assets Held
Largest Stock Holclings (by Fair Value)

June 30,2002
Description Fair Value

2.936,815 Pfizer Inc. $ 102,190,625
4,825,940 Cisco Systerns, Inc. 6t,32t,863
4,229,020 Eni Societa per Azioni 61,244,641
1,435,700 Medtronic,Inc. 61,519,745
1.783.024 MBNACorpolarion 58,964,604
1,035,329 BNP Paribas 51,260,944
341.290 Total Fina Elf 55,413,742
1,410,i00 Home Depot, Inc. 51,792,913
984.000 Johnsor.r & Johnson 51,423,840
I 19,962 Anierican lnternational Group, lnc. 49,123,001
$ 622,855,990
Largest Bond Holdings (by Fair Value)

.Iune 30, 2002
Par Value Description Fair Value
$ 196,351,441 Federal National Moltgage Association TBA 6.5Vo

due 02- l5-2099 Rating Aaa $ 505,976,854
323,500,000 Government Nationai Mortgage Association TBA 6.5Vo
dlue 12-15-2099 Rating Aaa 329,970,000
305.980,000 US Treasury Notes 3.257a
dLre 05-31-2004 Rating Aaa 308,369,698
187,080,000 Federal National Mortgage Association TBA I .}Vo
due I 2-31-2099 Rating Aaa 193,745,660
r 25,825,000 Federal National Mortgage Association TBA 6.}Va
due 12-31-2099 Rating Aaa 125,510,438
r 19,538,643 Federal Home Loan Mortgage Corporation TBA7.}Vo
doe 12-31-2099 Rating Aaa 123,797,805
93, r 49,000 US Treasury Notes 5.3757o
due 02- l5-203 I Rating Aaa 91,213,361
80,550,000 Federal Nation al Mortage Association T B A 1 .5 Vo
due 12-31-2099 Rating Aaa 84,521,559
83,200,000 Government National Mortgage Association TBA 6.0o/o
due l2-31-2099 Rating Aaa 83,096,000
69,9(:3,410 US Treasury Inflation Indexed Notes 3.875%
due 04-15-2029 Rating Aaa 78,862,056
$ 1,925,069,431
A complete list of portfolio holdings is available for viewing upon request.
.-13.
Oregon Public Fimplol'ees Retirement Systcnr
For the Fiscal Year Ended.Iune 30.2002
Assets Ilnder Basis

Management Fees Points
Investment Vlanagers' F'ees :

Fixed Income Managers $10,454,526,02s $ 8,603,092 0.082291
Equity Managers t8,502,716,s26 43,9r9,884 0.231369
Ventule Capital Managers 2,603,295 0.000000
KKR Leveraged Buyor-rts 1,247,426,921 12.664,688 1.015265
Alternative Equity Managers (Limited Partnerships) 2,275,441,963 42,945,265 1.881337
Real Estate Managers 1,132,705,739 25,215,283 1.455255
Total r\ssets Under Management $34,215,490,469
Other Investment Service Fees:

Securitics I-ending Fees 47,O04,774
Investment Cclnsultant Fees 1,67 5,660
Comrnissions and Other Fees 3t,227,569
lbtal Investment Service and Managers' l-ees $2L3,256,215
Schedule of Broker Commissions

For the Fiscal Year Ended June 30, 2002
Commission
Ilroker's Narne Commission Share / Par per Share
Merrill Lynch, Pierce, Fenner &Smith,Inc. $ 2,841,330 $ 1,343,489,063 $ 0.00211
UBS Securities, Inc. 1,907,009 624,281,1t3 0.00305
Bear, Stearns & Co.,Inc. 1,856,553 200,539,i93 0.00926
Goldman, Sachs & Co. 1,561,895 274,549,462 0.00569
Deutsche Bank 1,536,518 701,394,461 0.00219
Saiomon Sn-rith Barney, Inc. 1,512,121 i86,491,616 0.00192
credit suisse First Boston corporation 1,483,195 s49,988,490 0.00210
Morgan Stanley & Co.,Incorporated 1,4i6,141 1,39i,513,005 0.00106
Sanford C. Berstein & Co.,Inc. 1,342,626 23,939,894 0.05608
Lehman Brothers,Inc. 1,221,997 135,315,114 0.00903
J.P. Morgan Securities,Inc. 1,162,109 528,405,938 0.00220
ABN AMRO Incorporated 107,769 55,781,262 0.01269
HSBC Securities, Inc. 625,964 1,281 ,0$,A58 0.00049
Brockhor-rse & Cooper Inc. 624,418 54,689,044 0.01142
Frank Russell Securities,Inc. 621,433 13,199,519 0.04503
Credit Lyonnais Securities 587,003 381,501 ,012 0.0015 t
Dresdner Kleinwort Benson North America, LLC 513,195 11,653,225 0.02910
Lynch Jones and Ryan 452,544 8,861,459 0.05107
SC Cowen Securities Corp. 434,360 311,650,400 0.00117
Instinet Corporation 422,546 30,413,699 0.01387
Brokerage commissions on purchases and sales are too numerous to list; therefore, only the top 20 brokers by amount
of con-rmission paid are shown.
.49.
Oregon Public Employees lletircment System
Summary of Investment Fees, Commissions, and Expenses

For the Years Ended June 30, 2003 and 2002
International Equity Funtl Managers
Acadian $ 1,445,788 $ 1,519,220
Al lialtcelJentstein Intemational premier Grorvth Fund 1,796,519 1,870,8 1 8
Arrowstreet Capital, L.P 55 I ?70

Barclay's Global Investors (EAIE) 5gq 45q 656,142
Brandes Investment 1,707,119 2,037,160
Clay Finlay, Inc. I,024,"t 54 1,203,8 16
Driehaus Capital 988,806 1,923,077
Genesis Investment Managenent Ltd. 1,447,79s I,453,643
Lazard Asset Managentent ))) 11 1
218"446
Mawin & Palmer Associates 1,309,536 1,462,994
Putltam lnvestments 541,790 1,067,3,18
Rou,e Price t,'71'7,457 2,104,018
Schroder Capital I,097 1,040,790
"788
TT Iilteiltational 1,249,691 1,371,035
Wells Capital Managenlent 1,002,585
Domestic Equity Fund Managers
AllianceBemstein Domestic Equity 1,85 I,033 1,53 1,199
Al Iiance Capital Maltagement 1,226,377 2,200,768
Aronson, Johnson, Ortiz, L.P 370,577
Barclay's Clobal Investors (all funds) 3"864,876 3,172,2;;
Becker Capital 1,190,026 1,386,532
Brown Capital 386.413
Equ inox 817,501
FroleY-Reqr EquitY 1,05 I,455 1,122,594-
Goldntan Sachs 89,044
MFS Institutional Advisors, Inc. 481,370
Nicholas Applegate I,259,895 |.739,243
a Norlhern Trust Company 684,494 816,'760
Oak Associales I,000,990 1,140,488
PIMCO Advisors 81,420
Peachtree Asset Management 88,713 692,434
Shott Capital Managenrent 127,180 776,516
Thompson/Rubenstein InvestoN 1,232,7t2 I ,55 I,878
Veredus Capital Managenent 8s0,627 I,I 59,403
Wanger Asset Management 1,955,904 2,7',73,4'77
Wellington Managenent , iq1 ?n6 2,881,182
Winslow Capital Management 969,783 1,083,71 7
Zesiger Capital Group 321,988 6s9,036
Fixed Itrcome Nlanagers
All iance Capital Malagement 1,877,4ss I,503,807
Barclay's Global Investors (Corporate Govel.nnlent Bond Index) 6,305 60,448
Bl ackrock Financial Managemeltt t,966,477 t,66t,226
Fidelity Management Trust Co. 2,441,201- 1,902,684
Men ill Lynch Investment Managers I I 9,146
Rogge Globai Panners 1 47,805
Wellington Managentent Co. 1,5'74,459 1"671,068

Western Asset Mauagentent 1,473,8 I 8 1,536,908
Real Estate Investment Fund Manager
La Salie Advisors (AIex Brown Realty) i,068,346 I,161,2'74
Leveraged Buyout Manager
KKR I 6,987, I 88 12,664,688
Custotl ian
State Strcet Bank 657,087 663,659
Alternatiyc Equity NIanagers
Aurora Equity Palluers 872,171 806,6 r 7
BCI Grorvth 1,874,700 t,076,824
Castle Harlarl 1,690,608 500,775
CVC European 2,549,439 2,109,538
Doug]rty I{arson 3,145,537 2,177,206
Exxel Capital Parlners 960,521 2,500,000
Hicks Muse 2,632,843 2,031,606
Parlhenon Inveslors 2,478,685
Pathway Private Equity 1,875,000 2,40t,30,1
Solem Pal-tners 1,021,100 2,558,002
TPG Panners 6,245,268 6,08 1,352
TSG Fund 1,366,168 1,584,365
Vestar Capital 1,2'10,036 1,237,0'70
Other Altemative Equity Fees 1 5,786,005 15,401,921
Real Estate Fees and Expenses 25, r 99,585 21,s10,323
Real Estatc Bond Expenses 4,417,127 4,903,274
State Trcasury Fees 4,079,639 2,982,8 r 0
Securities Lending Fees 27,987,887 4'7,004"774
Brokerage Commissions 26,861,146 25,888,343
Other Investment Fees and Expenses 2.461.12'7 I,1 08,829
Total Investment Fces, Commissions, and Expenscs -
40 . Defincd Benefit Pension Plan $J?jlgll $:l1t25g/11

Schedule of Largest Assets Held
Largest Stock Holdings (by Fair Value)

June 30,2003
Shares Description Fair Value
3,995,455 Pfizer, Inc. $ 136,444,788

5,121,200 Cisco Systems, Inc. 85,472,828
1,702,700 Medtronic,Inc. 8I ,678,5 19
40,277,727 Vodafone Group PLC 78,760,122
I ,811 ,7 42 Citigroup, Inc. 77,542,558
1,428,020 Johnson & Johnson 73,828,634
3,348,080 IntelCorporation 69,586,495
1,500,000 Canonlncorporated 68,83 1,980
2,4\3,560 MicrosoftCorporation 6t,8rr,272
727,030 Bank of America Corporation 57,457,181
s TeJAJ!,3!
Largest Bond Holdings (by Fair Value)

June 30,2003
Par Value Descrintion Fair Value
$ rr9,444,237 US Treasury Inflation Indexed Notes 3.875% $ 152,011,903

due 04- 15-2029 Rating Aaa
13 5,0 r 0,000 US Treasury Notes 2.25%o t36,7 5t,630
due 07-31-2004 Rating Aaa
i24,900,000 Federal National Mortgage Association TBAT.}yo 131,574,344
r 18,012,882 Federal National Morfgage Association TBA 5.0% 121,922,059
109,33 5,306 Federal National Mortgage Association TBA 6.0% 113,606,216
97,410,000 Federal National Mofigage Association TBA4.5% 99,373,415
67,550,000 US Treasury Bonds 6.125% 82,554,199
due 08- I 5-2029 Rating Aaa
80,400,000 Federal Home Loan Mortgage Corporation TBA 5.0% 81,681,375
77,000,000 Federal National Mortgage Association TBA,6.5% 81,235,000
76,840,000 Federal National Mortgage Association TBA 5.5% 79,805,548
$ 1,080,515,689
A complete list of portfolio holdings is available for viewing upon request.

Orcgon Public Employees Retirement Systcnr
Assets Under Basis

Management Fees Points
Investment Managers' Fees:

Fixed Income Managers $ 9,303,145,912 8 9,339,714 0. I 00393
Equity Managers 21,087,114,214 38,100,497 0.1 8068 r
Venture Capital Managers 1,933,810 0.000000
I(l(R Leveraged Buyouts 1,291,665,504 16,987,188 L315138
Alternative EqLrity Managers (Limited Partnerships) 2,117,360,743 41,289,397 1,519467
Real Estate Managers t,724,276,464 29,616,713 | .7 t7 631
Total Assets Under Management $36,125,496,647

Commissions and Other Fees 33,528,701
Total Investment Service and Managers'Fees $ 198,448,741
Schedule of Broker Commissions

Commission
Broker's Name Commission Share / Par per Share
Merrill Lynch, Pierce, Fenner & Smith, Inc. $ 2,'764,654 $ 972,594,539 $ 0.00284
Goldrnan, Sachs & Co. 1,766,152 262,186,327 0.00674
Bear, Stearns & Co., Inc. 1,526,582 181,995,096 0.0083 9
UBS Securities Inc. 1,285,748 349,396,29'j 0.003 68
Credit Sr,risse First Boston Corporation 1,110,276 175,792,390 0.00632
Salomon Srnith Barney, lnc. 1,048,076 1,2i6,585,2'/4 0.00082
Morgan Stanley & Co., Inc. 1,037,832 749,481,669 0.00138
Deutsche Bank 822,296 413,873,035 0.00199
Lehrnan Brothers, Inc. 773,920 41 ,804,'762 0.01851
J.P. Morgan Securities, Inc. 668,989 80,164,234 0.0083 5
Jefferies & Cornpany, Inc. 534,3 I 14,504,139
tr 0.03684
Instinet Corporation 415,650 20,418,033 0.02330
Franl< Russell Securities, Inc. 419,497 8,957,158 0.04683
Citigroup Global Markets, Inc. 360,34'7 28,543,893 0.01262
Lynch Jones and Ryan 332,990 -1,202,036 0.04624
State Street Brokerage Services, Inc. 324,310 28,492,976 0.01138
Credit Lyonnais Securities 296,407 7,795,307,464 0.00017
BancAnrerica Security LLC Montgomery 213,501 6,331 ,224 0.04320
Dresdner l(leinwor1 Benson Norlh Arnerica,LLC 245,868 15,820,842 0.01 554
IISBC Securities, Inc. 245,806 68,627,251 0.003 58
Brokerage cotnmissions on purchases and sales are too numerous to list; therefore, only the top 20 brokers by arnount
of commission paid are shown.
.49.
Orcgon Public Employees Retilement System
Summary of Investment Fees, Commissions, and Expenses
For the Years Ended June 30, 2004 and 2003
International Equity Fund Managers

Acadiar-r Asset Management. Inc. s 2,389,773 $ 1,445,788
AllianceBemstein International Premier Grorvth Fund 2,540,861 t,796,519
Arrowstreet Capital, L.P 2,t93,624 551,2',70
Barclays Global Investors (EAFE) 2,268,523 699,4s9
Brandes Investr.nent Parlners LLC 2,333,9'74 t,707,119
Cenesis Investment Marragement, Ltd. 1,954,822 1,447;795
Lazard Asset Management 203,871 ))) \71
Marvin & Palmer Associates, Inc. I,989,502 1,309,536
Putnam lnvestments 638,214 541;190
T. Rorve Price Group, Inc. 2,425,363 1,7 t7 ,45'7
TT Intemational Co. Ltd. t,931,722 t,249,691
Wells Capital Manager.nent 1,434,945 1,002,585
Other international Equity Fund Managers 3, 1 1 1,348
Domestic Equity Fund Nlanagers
AllianceBemstein Domestic Equity 2,115,9s5 1,85 l,033
Alliance Capital Management 1,569,597 1,226,377
Aronson, Johnson. Ortiz. I-.P. 1,143,364 3'70,577
Barclays Global Investors (all funds) 1,944,104 3,864,8'/6
Becker Capital Management 1 ,640,7 41 I , r 90,026
i-roley Revy Equity 1,209;184 1,05 I ,455
MFS InstitLrtional Advisors, Inc. I,484,141 481,370
Nicholas Applegate Capital Management I ,4t5,1 t7 1,259,895
Oak Associales, Ltd. 195,568 1,000,990
Thompson/Rubinstein Investment Mgmt, lnc. 1,160,294 |,232,712
Veredus Asset Management LLC 1,1t2,421 850,627
Wanger Asset Manageurent, LP 3,097,973 1,955,904
Wellington Management Company, LLP 2,961,7 t4 2,593,306
Winslow Capital Management lnc t,230,669 969,783
Other Domestic Equity Fund Managers 4 \1) ))') 1,398,839
Fixcd I ncome Managers
Ailiance Capital Management 2,135,228 1,,877,455
Ilarclays Global Investors (Corporate Government Ilond Index) 112,906 5,305
Blackrock Firrancial Management 2,140,'/24 1,966,47-i
Fidelity Management Trust Co. 2,756,816 2,441,201
Wellington Management Cornpany, LLP 1,733,207 1,5't4,459
Westerr Asset Management Company I,605,935 1,473,81 8
Real Estate Investment Fund N{anager
I-a Salle Advisors Ltd. 1,150,443 1,068,346
Lcveraged Buyout Manager
Kohlberg Kravis Roberts & Co. 19,005,287 I 6,987, I 88
Custodian
State Street Bank 400,7'73 657,08'1
Alternative Equ it1' Managers
BCI Financial Corporation 98j22 1,874,700
BDCM Opportunity Fund, LP 1,252,083
Castle l-Iarlan, Inc. 1,37 1 ,725 1,690,608
CVC European Equity Ltd. 2,021,859 2,549.439
Doughty Hanson & Co. 2,432,607 3, l 45,537
Grove Street Advisors, LLC 2,187,500
Hicks, Muse, Tate & Furst Inc. 2,019,9'7 5 2,632,843
Parthenon Investors II LP l,887, i 60
Pathrvay Capital Management, LLC 1,250,000 1,875,000
Solera Capital LLC. 971 ,t 61 1 ,021, 1 00
-l'PG
Padners III, LP 3,943,430 6,245,268
TSG Capital Fund Il, LP 743,81 1 l ,366,168
Vcstar Capital Partners IV LP 923,088 t,270,036
Other Altemative Equity Fund Managers 20,27 |,015 17,618,697
Real Estate Fees and Expenscs 20,334,876 25,199,585
Real Estate Bond Expenscs 4,972,875 4,417,12'l
State Treasury Fces 5,1 1 r,583 4,079,639
Securitics Lending Fees 3t,066,547 27,98'1,881
Broherage Cornmissions 34, I 43,093 26,861,146
Other lnvcstment Fees and Expenses 2,298,962 2,461,12'7
Defelred Compensation Investment Fees and Expenses 1.893."t't9 1,655,3"/6
Total Investment Fees, Commissions, and Expenses 9-4J337-,on qiqqJq1J]_z
.41

For the Fiscal Year Ended June 30, 2004
Assets Under Basis

Management f,'ees Points
Investment Managers' Fees:

Fixed Income Managers $12,796,547,726 $ 10,484,816 0"081935
Equity Managers 25,419,99r,9s9 49, 1 00,05 g 0.1 93 1 55
Venture Capital Managers 458,317 0.000000
I(KR Leveraged Buyouts 1,398,092,032 19,00s,287 1.3s9373
Alternative Equity Managers (Limited Partnerships) 2,860,166,524 41,373,935 1.446551
Real Estate Managers 1,812,939,630 21,485,319 1.185109
Total Assets Under Management $ 44,288,196,1 88

Comrnissions and Other Fees 47,002,501
Total Investment Service and Managers'Fees $221,337,028
Schedule of Brol<er Commissions

Commission
Brokerts Name Commission Share / Par per Share
Merrill Lynch, Pierce, Fenner & Srnith, Inc. $ 3,011,309 g 1,"111,128,748 $ 0.00176
UBS Securities lnc. 1,961,776 1,5"73,168,976 0.00125
Citigroup Global Markets lnc. 1,708,482 1,948,612,993 0.00088
Goldrnan, Sachs & Co. 1,650,460 1 08,884, I 78 0.01516
Credit Suisse First Boston Corporation 7,480,979 2,618,013,716 0.00055
Morgan Stanley & Co., Incorporated 1,3 13,003 712,224,008 0.00184
Bear, Stearns & Co., lnc. 1,26-l ,307 31,171,50',7 0.04066
Deutsche Bank 1,234,026 411,868,727 0"00300
Lehman Brothers, Inc. 1,221,15',7 9t,576,606 0.013 33
J.P. Morgan Securities, Inc. 961,554 101,412,044 0.00901
Jefferies & Co. 154,226 18,998,604 0.03970
Lynch Jones and Ryan 540,5'71 15,103,0603 0.04241
Credit Lyonnais Securities 617,234 1,023,485,2'73 0.00060
Instinet Corporation 465,7',79 21,636,996 0.02153
Arnhold S. Bleichroeder, Inc. 426,941 332,878,832 0.00128
State Street Brokerage Services Inc. 424,602 38,033,970 0.01lr6
Investment Technology Group, Inc. 414,449 34,352,122 0.01206
BancAmerica Security LLC Montgornery 411,407 8,931,290 0.04606
Wachovia Securities, LLC 391,017 8,655,1 16 0.04518
Thomas Weisel Parlners 300,7 51 6,291,171 0.04780
Brokerage commissions on purchases and sales are too numerous to list; therefore, only the top 20 brokers by
arnount of cornmission paid are shown.
"M
&ffi f, t:rr'
ffiffi"ffi,wffi rrnrrrlman
W
IY
'
usA 111 SW FifthAvenue. Suite 3700
.-1.,,,rrr,or," a,d Actrr,ttras
Portland, OR 97204-3604
Tel +1 503 227.0634
Fax +1 503 227.7956
wwwmilliman.com
December 1,2004
Retirement Board
Dear Members of the Board:
We have performed an actuarial valuation of the Oregon Public Employees Retirement System as of
December 31,2002. The 2003 valuation is in progress but not completed as of this date. ln our opinion,
the System is an actuarially sound system based on the current actuarial assumptions.
Actuarial valuations are normally performed every two years, as of the end of each odd-numbered year.
Special interim valuations were performed as of December 31, 2000 and December 31 ,2002.
ln preparing the valuation, we relied upon the financial and membership data furnished by the System.
Although we did not audit this data, we compared the data for this and the prior valuation and tested for
reasonableness. Based on these tests, we believe the data to be sufficiently accurate for the purposes of
our calculations.
Milliman prepared the information presented in this Actuarial Section of the 2004 Comprehensive Annual
Financial Report, including the following supporling tables, based on information in our 2002 actuarial
valuation report:
. ActuarialAssumptionsand Methods
- Economic Assumptions
- Mortality Tables
- Rates of Retirement and Disability
- Rates of Other Terminations of Employment
- Future Salaries
- Unused Sick Leave
- Probability of Annuity
- Probability of Vesting
- Actuarial Cost Method
- ActuarialValue of Assets
. Actuarial Schedules
- Schedule of Active Member Valuation Data
- Schedule of Retirees and Beneficiaries
. Summary of Actuarial and Unfunded Actuarial Liabilities
. Solvency Test
. Recommended vs. Actual Contributions
ln addition, we reviewed the Summary of Plan Provisions and prepared the Schedules of Funding
Progress in the Financial Section of this report.
Legislation enacted during 2003 had a significant impact on the actuarial liabilities of the System.
The 2001 and 2002 valuations have been performed including the impact of the 2003 PERS Reform
Legislation. This legislation is currently under judicial review.
.54.
Oregon Public Employees Retirenrent Systenr
The Retirement Board has sole authority to determine the actuarial assumptions and methods used for
the valuation of the System. The Board adopted all of the actuarial methods and assumptions used in the
2002 valuation
The findings have been determined according to actuarial assumptions and methods that were chosen
on the basis of recent experience of the System and of current expectations concerning future economic
conditions. ln our opinion, the assumptions used in the actuarial valuation are appropriate for purposes of
the valuation, are internally consistent, and reflect reasonable expectations. The assumptions represent
our best estimate of future conditions affecting the System. Nevertheless, the emerging costs of the
System will vary from those presented in this report to the extent that actual experience differs from that
projected by the assumptions.
The actuarial valuation was prepared in accordance with generally recognized and accepted actuarial
principles and practices which are consistent with the applicable Standards of Practice adopted by the
Actuarial Standards Board of the American Academy of Actuaries. ln addition, the assumptions and
methods used meet the parameters set for disclosures by GovernmentalAccounting Standards Board
Statement No. 25.
The undersigned is an independent actuary, a Fellow of the Society of Actuaries, a Member of the
American Academy of Actuaries, an Enrolled Actuary, and experienced in performing valuations for large
public employee retirement systems.
ln conclusion, the Oregon Public Employees Retirement System is an actuarially sound system based on
the current actuarial assumptions.
Respectfu ly su bmitted,
I
ftt*--
LJ
Mark O. Johnson, F.S.A., M.A.A.A., E.A.
Principal and Consulting Actuary
.55.
Oregon Public Emplol,ees Retirement Sl,stem
b. Forcign Currency Risk
Investments at June 30, 2005 Fair Value
Foreign currency risk for deposits is the risk that changes
in exchange rates lvill adversely affect the tair value of the U.S. Treasuly Obligations 1.599.1 84.999
deposits. At June 30,2005, $75.5 nrillion in cash and caslr U.S. Federal Agency Mofigage Securities 2,115.644,t 54
eqLrivalents was exposed to foreign currency dsk. The U.S. U.S. Federal Agency Debt 434,909,304
dollar balances of these deposits, olganized by currency U.S. Treasury Obligations, Strips 53,167 ,167
denomination, are presented in the table on page 31. U.S. Tleasury Obligations - TIPS 451.668,640
Intenrational Debt Securities 1,543,'708,546
B. Itrvestnrents
Corporate Bords 2,873,410,488
The first schedule on the right presents the fair value of Municipal Bonds 40"190^431
investments held by the state ol Ot'egon for PERS as of June Collateralized Mortgage Obligations 1.368.028,s38
30. 2005. AssetBacked Securities 881,292,544
a. Credit Risk Debt Securities Futures and Options (11,056,r30)
The Oregon Investment Council (OIC) establishes policies Mutual Funds * Domestic Fixed Income 2,008,1 89,405
fol the investment pERS' Mutual Funds - Intemational Fixed lncorre 904,817,949
and reinvestrnent of moneys in lnsurance Contracts 7 )6c) )c)c)
investment firnds.
It is the OIC's policy that no more than 30 percent of Total Debt Securities Investments 14.325,485,340
the debt securitr'es portfolio be below investment grade.
Secr-rrities rvith a quality rating of below BBB- are consid- Restri cted lnvestment Coutracts 1.490,661
ered below investment grade. Policies also require that the
mininrlrm aggregate credit quality be A+ as measured by the Total Debt Investmelrts 14.329.976.001
weighted average of the portfblio. As of June 30, 2005, the
Dornestic Equiry Securities l 0,014,5 1 5,001
fajr valLre of below grade investments is $2,537.2 million or
lntcrrraliorral Equiry Securities 8,401,042,591
17.7 percent of the debt secr-rrities portfolio, and the rveight-
Mutual Funds - Domestic Equity 6,80r,264,778
ed quality t'ating avelage is AA-. Mutual Funds - International Equity 2,503,733,63 l
The second table on tlre right shows the quality ratings for. Lrnrited Paltnerships 3,009.8 1 9,8 18
debt inVestments as of June 30, 2005. Leveraged Buyouts 1,296,865,385
b. Custodial Credit Risk Venture Capital n3,629
Custodial credit lisk lor investments is the risk that, in tlre Real Estate and Real Estate Mortgages 2,907,267,839
errent of a failure ol the counterparty, PERS will not be able
to recover the valr-re of the investments or collateral securi-
Total PERS lnvestments $ 49,264,658,673
ties that ale in the possession of an outside patty. The OIC

has no formal policy regarding the holding of secur.ities by
a custodian or counterparly. At June 30, 2005, all securities
r,vere registeled in the state of Oregon's name and were held
Debt lnvestments at June 30. 2005 Fair Value
at State Street Barrk, except for $799.3 million in uninsured
dornestic eqr-rity investmeltts held by a subcustodian, the
Qualify Rating
Nolthenr Trust Company, not held in the state's nante. This AAA s 3,s20.071.419
amount lepresents I .6 percent of the fair value of invest- AA r ,204,090, l 85
ments at June 30^ 2005. 921 ,786,005
c. Concentrations of Credit Risk BBB 1,42'/ .l29 .8()5
The OJC expects investment managers to rnaintain diversi- BB I,260,8 ll,535
B 930,606,030
fied portfolios by sector and by issr.rer usirrg the follor.ving
CCC I 08,2 I 0,504
gu idelines:
CC 9.216,209
. Obligations issued or guaranteed by the U.S. C 6,248,122
government, U.S. agencies, or goveltlment Unrated _ 222,135,112
sponsored enterprises - no lestriction.
. Obligations of other national govemments Total Credit Risk - Debt Securities 9,610,911,076
no lrore than l0 percent of the debt investrnent
U.S. Covemrnent andAgency Securities 4,714,574.261
portfolio pel issuer.
. Plivate moltgage-backed and asset-backed Restricted Investment Contracts 4.490,661
secr-rrities, un less col Iateral i s credit-independent of
the issr"rel and the security's credit enhancement is Total Debt Investrnents $ 14,329,976,001
generated internally - no more than 10 percent of
the debt investment portfolio per issuer; 25 percent
pel issuel if tlre collatelal exception is met.
' Other issuet's, excluding investments in conrrningled vehicles -no more than 3 percent of the debt investment
poltfolio.
At June 30,2005, thet'e wele no single issuer debt investments that exceeded the above gLridelines, nor were there
investments in any one issuer that represent 5 percent or lrore of total investments.
.29 .
Oregon Public Emplol,ees Retirement System
There is no limit on single issuer investmellts for domestic eqLrities, althouglr the amount that may be invested in
domestic equities is tatgeted at 28 to 38 percent of PERS' portfolio. At June 30, 2005, domestic equities werc 32.2 per-
cent of total assets. Policy states that the asset class will be diversified across the U.S. stock market. Additionaily, both
passive and active investing strategies are employed, and several external managers engage in active management. The
policy for international eqr-rity investing is the same as that of the domestic equity portfolio in that holdings are diversi-
fied across stock markets outside of the United States. Passive and active investment strategies are employed, and several
active managers invest in different market segments. The target allocation range for intentational equities is 15 to 25 per-
cent of PERS' portfolio. At June 30,2005,20.9 percent of total assets were invested in international equities.
d. Interest Rate Risk
Interest rate tisk is the risk that changes in interest rates will adversely affect the fair value of an investment.
Policies state that tlre debt investment poftfolio wjll maintain an average bond duration level of plus or minus 20 per-
cent of the benchmark dulation. As of June 30,2005, the average duration of PERS'debt investment portfolio rvas 4.07
years, 4.5 percent lower than the benchmark duration of 4.26 years. Since the debt investment porlfolio may contain
holdings witlr prepayments and variable cash flows, an analysis of interest rate dsk r.rsing the segmented time distribLrtion
method is plesented in the schedule below.
Schedule ol lnterest Rale Risl< Segmenlerl Time Distribution luvestment Maturities at June 30, 20(E
-
Less than More than Total Fair
Inr,estment 1 year I - 5 years 6 - 10 years 10 years Value
U.S. Treasury Obligations $ 16,636,204 S 829,814,940 $ 236,304,75s $ 516,429,100 $ 1,599,1 84,999

U.S. Fedcral Agency Mortgage Securities (t8,126,316 t7.239,524 1 8,329,060 t,971,349,254 2,175,644,154
U.S. Fedelal Agcncy Debt 159,061.4 t0 111,908,186 1 58,1 46, 1 08 5.793,600 434,909,304
U.S. Treasury Obligations - Strips 53,167,167 53,167,16,-
U.S. TreasLrry Obligations - TIPS 294,564,852 55,201 ,229 I 0l ,902.5 59 451 ,668,640
Irrternational Debt Secr"rrittes 85,020,025 343,234,416 601,7 53,40s 5 1 3,700,700 1,543,708.546
Corporate Borxls 205,615,054 795,220,960 I,126,245,822 746.388,652 2,873,110.488
Municipal Bonds 11,571,335 9,335,172 19,283,930 40,190,437
Collateral ized Mortgage Obl igations 280,202,7 t7 t38,373,352 121,352,059 828,1 00.410 1.368,028.s38
AsserBacked Secufities 348,43'.7,555 264,614,828 123,938,232 144,301,929 881 ,292,544
Futures arrcl Options (s,837,029) 249,661 (3,141,s70) (2,327,192) (11,056,130)
MtLtual Funds - Donrestic Fixed lncorne 5 r.6s8,933 1,612,044,221 3 10,569,086 33,9 1 7,1 65 2,008,189.405
Mutual Funds International Fixed Incorre 195,227,495 553,114,904 156,475.550 904,8 1 7,949
I nsurance Cotrtracts 2,269,299 2,269,299
Restricted In vesttrent Contracts 4.490"6(rl 4,490,661
Total Debt Investnrents $ r,227,852,480 $ 4,702,492,435 $_l:]]!11g?e u4!ryq43 {.!!312?6,9qi
e. Foreign Currency Risk

Foreign clll'rency and security risk of loss arises from changes in currency exchange rates. Policy states that no more
than 15 percent of the debt investment poftfolio may be invested in non-dollar denominated secudties. As of June 30,
2005, approxi:nately 4.7 percent of the debt investrnent por-tfolio was invested in non-dollar denon,inated securities.
Policies for the equity poltion of PERS'portfolio are silent regarding this risk, although investment manager contracts
provide gr-ridelines that vary from manager to manager. The System's exposure to foreign cLlrrency risk is as follows:
.30.
lnternational Cash and Cash Equivalents and Investments at Fair Value in U.S. Dollars at June 30, 2005
Cash and Cash

Currenc,v Equivalents Equity Detrt Total
Argentine peso 31 ,5'7 5 $* 4,940,100 s 4.971,675
Australian ciollar 3,040,281 238,833,393 241.813,6'74
Brazilian real 136.234 63,3 r 5,686 63.451,920
Canaciian dollar 4,1 t9,841 286,983,3 15 46,373,300 331,416.456
Chilean peso 3,901 3,907
Colonrbian peso 250 34,725 74 975
Czech koruna 4,499 5,813,4n 5,817 ,926
Danrsh krorre 120,374 41 ,714,222 41,834,596
Egyptian pound 649.445 23,584,765 24,234,210
Eulo 1 1 ,600.01 9 2,s56,033.554 233,051,183 2,800,684,756
I-long Kong ilollar' 1,624,560 208,6s0,322 210,274,882
Hungalian lbrint 2,3 l0 l7,411,2U) 11,413,519
Indonesian rupiah 350. I 03 36,860,787 3 7,2 i 0,890
Israel i shekcl 755,506 8,0s9,394 9,918,291
1 ,103,397
Japanese ycrr t0,76t,t 4l |,4t6,217,274 181,091,679 I,608,070, l 00
Jordanian dira-r' 2 2
Malaysian ringgit 50)'t)q 1t,066,342 6,48s,459 18,054,530
Mcxican peso I,893,839 29,994,493 63,339,578 95,227,910
Neiv Russian ruble 5,561 5.561
Neu' Tair,van dollar 14,128.289 61,410.890 75,539,119
Neri, Turl<ish lila t2'7,214 50,441J% 50,s68,607
New Zcalarrcl dollar 53,64t t6,394,1n 10,325,056 26,772,896
Nolrvegian I<rolte 403,080 l 35,804,366 136.201 .446
Pal<:stan lupee 712 18,232,16 r 8,233.478
Penivian nouveau soi 30 733,500 733,530
Philippine peso 6l ,865 9,132,311 9,t94,176
Polish zloly 29,28(t 2,322.339 15,371,260 l7 ?)) RRS
Pound sterling 14.435,()82 1,259,786,808 55,715,443 1,329,938,233
Singapore dollar 1,652,195 69,700,840 71,353,035
SoLrth Alrican rand 293.286 91,526.222 97,819.508
Sot-tth I(orean r.von 1 ,171.134 211,028,619 2'78,200,353
Sn Lanka lupee 2,945,421 ) q4a a)1
Srvedish krona 2,973,444 173,935,2(X) 5t ,490,353 228.399,003
Sr.viss fi'anc 3,428,918 343,113,924 J46,542,902
Thai balrt 614,209 2r,044,118 21,658,327
Uruguayan ;teso '7
,641.992 7 641 qq)
Venezuelan bolrvar 56) )'l r 1,855,826 2,418.057
Zimbabwe clollar 9.00(r 158,129 767. i 35
Total SubjecL Lo Foreign Cunency Risk 75,541,803 7,486,139,791 676,934,36r 8,239,215.955
lnterrrational Securities Denominated in

U.S. Dollars 3,418,036,431 |,771,592,134 5,1 89.628,565
Total International Cash and Cash

E,quivalents and I nvestments $ 75,541,803 $ 10,904,776,222 $ 2,448,526,495 $ 13,428,841,520
f. Derivatives
Derivatives are contracts for which the value depends on, or derives from, the value of an underlying asset, reference
rate, or index. In accordance with state investment policy, the Oregon State Treasury invests either directly or through its
otrtside itrvestlnent managers on behalf of PERS in contracts that have derivative characteristics. Derivatives are used to
manage the overall lisk of investment portfolios. PERS does rrot hold or issue derivative financial instruments for trading
purposes.
PERS leports investments in accordance with GASB Technical Bulletin 2003-01. The standard provides disclosure
reqttirements for govemmental units holding detivatives that are not repofied at fair value in the statements of net assets.
Since all investments, including those with derivative characteristics, are reported at fair value in accordance with GASB
Statements 25 and 31, no additional disclosures are required.
Oregon Public Emplol'ees Retirement System
C. S ec u rities Le n clirt g
Securities Loaned Fair Value
hr accordance with state investment policies, PERF par-
ticipates in secr"n'ities lending transactions. Through securi- U.S. Governrnent Securities 461 ,940,029
ties lending authorization agl'eements, the state treasury lras U.S. Agency Securities 1,938,171,754
aLrthorized its custodian to lend its securities pul.suant to a Donrestic Equity Securities 1,262,833,334
lbrm of loan agreement. Both PERF and the bomower.s nrailt- Donrestic Debt Securities 399.083,894
tained the righr to tenxinate all securities lending transac- lnternational Equity Securities I,393,653,018
tions on demand. There were no significant violations of tlre lntemational Debr Seculities 53.000,826
provisions of securities lending agreements during the period
of these financial statements.
Total $ 5,514,682,855
The custodian had the authority to loan short-ternr, fixed

incorne, and equity securities and to t'ecer've as collateral Collateral Fair Value
U.S. dollal and foreign cul'l'ency cash, U.S. govemment and
agency securities, Ietters ofcredit, and foreigr sovereign debt Cash 5,486.099,9 r 5
of Organization ol'Economic Cooperation and Development Sec urities r92.911,902
(OECD) countries. Borrowers were required to deliver col-
latelal for each loan equal to not less than 1 02 percent of the
Total $ 5,679,0t7,817
nralket valLre of the loaned security, or 1 05 percent in the
case of international securities. The custodian did not have
the ability to pledge or sell collateral securities absent a borower default, and PERF did not impose any restrictions dur-ing
the fiscal year on the amount of the loans tlre custodian made on its behalf. PERF is fully indemnifiecl against losses due
to bot'rorl'er defaLrlt by its current custodian. There were no losses during the yeat from the failure of bonowers to l-etllm
loaned seculities and no recoveries of amounts fi.om prior losses"
The matr-rrities of investments made with cash collateral did not generally match the maturities of tlie secr.rlities loaned.
Since the securitjes loaned are callable on demand by either the lender or borower, the life of the loans at June 30, 2005,
is elfectively one day. On June 30, 2005, PERF had no credit risk exposure to borrowers because the amounts the PERF
otves bort'orvers exceed tlre amounts borrowers owe PERF. TIie fair values of the collateral received and the securities on
loan f}om PERF as of .lune 30,2005, including accrLred income, were $5,679.0 million and $5,514.7 million, respectively.
Forthefiscal yearendedJr,nre30,2005,total incomefromsecuritieslendingactivitywas$108.1 million,andtotalexpens-
es for the period wele $95.8 million for net income of $ 12.3 million.
Cash balances held by the state tl'easurer are invested in the Oregon Short Term Fund (OSTF), as is the cash of other-
state agencies. As olJLrne 30, 2005, the fair values of the collateral received and tlle securities on loan, including accrued
inconre, flonr the OSTF wele $1,482.8 million and $1,452.6 rnillion, respectively. PERF's allocated porlions of the collat-
eral received and secttrities on loan were $l12.8 million and $110.5 million, respectively. These amounts are not inclLrded
in the table above.
(7) Leases
Operating leases at'e rental agleements where the payrnents are chalgeable as renx
Opcrating
and recorded in the services and supplies expense account. Should the legislature I-eases
disallor.v the necessaly funding for particulat leases, all lease agreements contain 2046 $ r 36. r25
termination clauses u,hich provide for cancellation of the lease as of the end of a 2007 I 10.043
fiscal year. Lease obligations decrease each year because of various lease expira- 2008 6,61 8
Thereafter
tions. lt is expected that ongoing leases will be replaced rvith leases which have 0
Total Future N,linimum
higher rental lates due to inflation. Fiscal year 2005 operating lease expenses were Lease Payments $ 232.786
s r35.370.
The schedr-rle to the riglrt summarizes the minimunt lease payments for operating
leases in effect as of Jr,rne 30,2005.
(8) Det'erred Compensation Plan

Deferred compensation plans are ar-rthorized under Internal Revenue Code Section 457. The Oregon Legislature eilacted
Chapter 179, Oregon Laws l99l that established the Deferled Compensation Fund. ORS 243.400 to243.507 established
and provided for PERS to administet the state deferred compensation plan, known as the Oregon Savings Growth Plan
(OSGP). As of JLure 30, 2005, the fail value of investments was $742.4 miilion.
The plan is a benefit available to all state employees. To participate, an employee executes an individual agreetlent with
the state defbrring current earniugs to be paid at a future date. Participants in the plan are not required to pay federal and state
iuconte taxes on the deferred contributions and earnings until the funds are received. Participants or their beneficiaries cannot
receive the firtids Lrntil at least one of the following occurs: tennination by reason of resignation, death, disability, ol retire-
rrent, unforeseeable ernergency; or by reqr,resting ade mininis distribution from inactive accounts valued less than $5,000.
PERS contracts with CitiStleet, a joint venture between Citigroup and State Street Bank and Trust Company, to main-
tain the OSGP participantrecords. The state treasurer, as custodian of the assets, also contracts with State Street Bank and
. 32.
Oregon Public Employees Retirement Systenr
Trust Cornpany to provide financial services. There are nine investment options with varying degrees of market risk. Up to
for,rr financial institutions provide investment services in mutr.ral funds for each investnrent option. A parlicipant receives a
blend of these mutual funds within the investment option. Pafiicipants direct the selection of investment options and also
bear any market risk. The state has no liability for losses under the plan but does have the prudent investor responsibility.
ofdue cale.
PERS nray assess a chalge to the participants not to exceed 2.0 percent on amounts defened, both contr-ibutions and
investment earnings, to cover costs incurred for administering the program. Actual charges to parlicipants, inciuding
investment charges, for the year ended June 30, 2005, aver-aged 0.26 percent of arnounts deferred.
Oregon Revised Statute 243.505 established a Deferred Compensation Advisory Committee to provide input to the
PERS Boald. This comnrittee is conrposed of seven members who meet at least quarlerly.
(9) Long-Term Debt

Irr 1992 PERF enlered into an agreement to guarantee
s50 million in taxable special revenLle obligation bo'ds pamcorpTaxabreSpeciarobrigationRevenueBontrslssued
issued by the Port of Portland on behalf of a start-Lrp o.a Out.ru",rirg
aircraft maintenance company at Portland Intentational
Arrport. The cornpany ceased operations at the end of Amount
october 1993. Initial interest payments were made fi'om Issuedancl Interest
a reserve fr-rnd established from bond sale proceeds. This Outstanding Rate Due Date lssue Date
reserve fund was depleted and interest payments fi.om
the retiren.rent trust fr-rnd commelced in October I 994. Series "A" $ 6.500,000 8.350% May 15, 2010 June I , 1992
PERS has purchased a lease-fiold interest in t1e facility Series "B" 9'800'000 8.875 May 5, 201 5 June 1, 1 992 1
The value oi uny ...ouery cannot be estilrated b".a1.,se Series

"C" 27'000,000 9'200 May 15, 2022 Iwrc \,1992
it will depend on whetlrer PERS can re-lease or sell the
faciliti,, and on what terms. ln October 1996 the atto'ney
genelal filed a lawsuit agair.rst the owners of the company and the consulting finn that advised the investment. During hscal
year 2005, PERS received insr-lrance settlement paymer.rts of $5.4 million. At the tirne of this report, some claims are still
pending. The value of any recovery from pending claims cannot be estimated at this time.
'lhe table above describes taxable
obligation revenue borrds issued and outstanding guaranteed by tlre retirement fund.
'lhe table belorv summarizes the amounts necessary to pay all futr-rre long-term guaranteed
debt principal and interest
reqr"tirements for each fiscal year during tlre next five-year period ending June 30, 2010, and for the periods ending June
30, 2015, June 30, 2020, and June 30, 2022.The cru'r'ent portion of the long-terrn guaranteed debt is $4,996,500.
In 1996 PERF putchased the land and began constluction on a new retirement system headquarlets building in Tigard,
Oregon. The constrttction was financed by the sale of certificates of parlicipation. The cerlificates of participation (COPs)
rvere sold on Matcli 1 6, 1996, for' $8.6 million at a 5.4,5 percent interest rate. On March 1 ,2002, a new COP, Selies B, was
issued at a 4.41 percent interest rate and was used to pafiially refund the original Series A COP. The remaining Series A
COP has a linal repayment due May I , 2006. The Series B COP has a final repayment dr-re May 1,2017 .
Pamcorp Debt Service Requirements to Maturif

Fisc al Series "A" Series "8" Series "C" Total Total Total
Year Principal Interest Principal Interest Principal Interest Principal Interest Expenses
2006 $ r,100,000 s 542,750 $ $ 869,750 S $ 2.484,000 $ r,r00,000 $ 3,896,500 $ 4,996,500

2007 1.200.000 450,900 8(r9,750 2,484,000 1,200,000 3,804,650 5,004,650
2008 1.300,000 350,700 869,750 2,484,000 1,300,000 3,104,45A 5.004,450
2009 1,400.000 242,150 869,750 2,484,000 1,400,000 3,595,900 4,995.900
2010 1.500,000 125,250 869,750 2,484,000 1,500,000 3.479,00A 4,979,000
2011-2015 9,800.000 2,724,628 12,420,000 9,800,000 15,144,628 24,944,628
20t6-2020 14,900,000 9,908.400 14,900,000 9,908,400 2.1,808,400
202t-2022 l 2, I 00.000 1,876,800 12,100,000 1,876,800 1 3,976.800
$ 6,s00,000 $ tJtll!! $ 9,800,000 $ 7,073,378 $27,000,000 $66rsllo !1349{!! $1!l]gl3g $m,rt o"lr8
.33.
Oregon Public Emplol'ees Retirement S5'stem
The first table on this page describes PERS building COPs issued and outstanding. The second table below summarizes
all ftrtule PERS bLrilding COPs payments of principal and interest for each fiscal year during the next five-year period
ending June 30, 2010, and the periods ending June 30, 2015, and June 30, 2017. The cun'ent portion ofthe PERS buildin"
debt is $71 1.825.
PERS Building Certilicates ol'Participation lssued and Outstanding
Amount
and Interest
Issued
Outstanding Rate Due Date lssue Date
Series "A" S 375,000 5.450% May I , 2006 March 16, 1996

Series "8" 5,840,000 4.410 May 1,2017 March 1, 2002
PERS Building Debt Service Requirements to Maturitv
Fiscal Series o'A" Series "B" Total Total Total

Year Princioal I nterest I Interest Princ Interest Exnenses
2006 s 375,000 s 18.750 $ 15,000 $ 303,07s $ 390,000 $ $

321,825 711,825
2001 405.000 302.625 40s,000 302,625 101 ,625
2008 425,000 282,375 425,000 282;75 ',701
,315
2009 44s,000 261,125 445,000 261,125 106,125
201 0 470,000 238,875 470.000 238,875 708,875
2011-2015 2,165,000 195,900 2,165,000 795,900 3.560,900
2016-2011 l 3 15.000 t04,475 1,3 15,000 104.475 I .419,475
s==95,q!g s l s,tso q:,gruu $-f7E[450 GT@ mo-Ztdo Sepz"zoo
In 2004 COPs, Series A, were issued to finance the purchase of computer software and system upgrades to maintain
accttl'acy and statutory compliance with current Oregon larv. The COPs were sold on June 16,2004, for $9.9 million at
a 3.20 percent interest rate. The Series A COP has a final repayment due May 1,2009. Proceeds from the2004 Series A
COP, not yet used, are listed as "Restficted lnvestment Contlacts" on the Statement of Fiduciary Net Assets.
This table desclibes OPSRP computer system COPs issued and outstanding.
OPSRP Computer System Certilicates of Participation lssued and Outstanding
Amount
Issued and Interest
Outstanding Rate Due Date Issue Date
Series "A" 7.960.000 3.200% May l. 2009 iunc I 6. 2004

The table belorv summarizes all futLu'e COPs payments of principal arrd interest for each fiscal yeat dudng the next five-
yeal period ending JLrne 30, 2010. The current portion of OPSRP computer system debt is $2,149,625.
OPSRP Computer System
Fiscal Series "A" Total

Year Principal Interest Expenses
2006 1,910,0fi) 231),625 2,149,625

2001 1,960,000 191,875 2,1 5 1,875
2008 2,015,000 133,075 2,148,015
2009 2,075,000 12,625 2,141.625
2010
u,egg$g S--6i?,roo $__!f2ll!9
The follorving table summarizes the changes in long-term debt for tlie year ended June 30, 2005:
Long-Term Debt Activity

Balance Balance Amounts Due
July l,2004 Additions Deductions June 30. 2005 Within One Year
Panrcorp Principal s 44,300,000 $ 1,000,000 $ 43,300.000 $ 4,996,500

PERS Building Principal 6,585,000 370,000 6,215,000 711 ,825
OPSRP Corrputer Syslem 9,865,000 l,905,000 7,960.000 2,149,625
Plus: Prenriunr (Net) 403,821 41,936 361,891 41.385
Less: Defen'ed Cain (Net) (3 l 6,052) (28,e23) (281,129) (29,002)
Total Bonds/COPS Pavable s--30332ii's s- SJ-'3Er.il $--S75aJ3A, S---iF?o=n
(10) Litigation
Follorving is a summaly of cument PERS-related lawsuits:
A. Cottsolidated Public Ernployees Retirement System Litigttion ('Strunk')
On Mar"ch 8, 2005, the Oregon Suplenre Court rendeled its decision in Strunkv. PERB, el al. ovefiuming portions of the
2003 PERS Refornr Legislation and Lrpholding the balance. After the Supreme Courl's opinion, petitioners filed petitions
for awalds oiattorleys'fees and costs totaling about $2.5 million. On May 31,2005, all of the respondents (the State, the
public employers, and PERB) filed oppositions to the petitjons. Petitioners filed reply bliefs on June 28,2005. There is no
deadline fol the Courl to render a decision. Counsel is unable to provide an opinion as to the olltcome.
B. Cit1, OJ'Eugene v. State of Oregon, PERB, et ul.
The Marion County District Court determirred that cefiain rate orders that PERB issued in 1998 and 2000 were enone-
ous and remanded so that PERB could revise the rate ol'ders. After appealing the decision, PERB and petitioners entered
into a settlement agreement. Interveners, who are PERS nembers, objected to the settlement agreement and nroved that
the Coult not disrniss the appeal. On August I l, 2005, the Oregon Supreme Courl determined that the appeal by tlre inter-
veners was moot by virtue of the settlement agreement between PERB and the employers.
On August 24,2005, intervener-appellants filed a Petition for Reconsideration with the Supreme Court. In the petition,
the intelveners asl(ed the Court to nrodify its decision to not sirnply disrniss the appeal, but to vacate Judge Lipscomb's
judgnrent as moot. The Couil has not asked for a response to the petition, and neither PERB nor the State nor the employ-
ers have filed any l'esponse. There is no deadline for the Courl to render a decision. Counsel is unable to provide an opin-
ion as to the outcome.
C. PERS Reform Legislntiort
There ale a number of related state and federal coult challenges to the 2003 PERS Reform Legislation and its implemen-
tation. Currently cor-rnsel is unable to provide an opinion as to the outcome of these cases.
D. l{hite, et al. v. PERB
On April 22,2004, in Multnomah County Circuit Cotrt(White.1), petitioners challenged the Citl: of Eugene settlement
(see above), tlie reallocation of 1999 eamings, and tlre allocation of 2003 eamings. Vafious local PERS employers inter-
vened and also began a separate action in Marion County Circuit Coult.
.35.
Oregon Public Employees Retirenent Sl,stem
On July 9,2004, the Boar"d filed a motion to change the venue of this case to Marion County (White 11), which was
later granted. A writ of ntandcmuts was filed with the Oregon Supreme Court challenging the change of venue. While the
Marion County White case was on hold, plaintiffs, facing statute of limitation concelns, filed a new action in MLrltnomah
County (White III).
The Oregon Supreme Conrt granted the writ of mandnmus setting aside the transfet of l(hite 1to Marion County. Due to
various pt'ocedr-rral challenges, including a motion to change the judge, the Marion Courrty case was not transferredback
to Multnomah County untilJuly 21 ,2005.
Shortly after the City of Eugene decision came down, Judge Henry Kantor sent an e-mail to the parties inqr-riring as to
the next steps. After a Septenrber 30,2005 status confelence, plaintiffs' counsel filed stipulated orders with the Court con-
solidating tyhite I and 1/ and dismissing White III. Defendants filed motions for judgn.rent on the pieadings and to disn.riss
on October 21 ,2005. The hearing on these motions is set for December i6,2005. Counsel js unable to provide an opinion
as to the outcome.
E. Hon,ser v" PERI] et al.
Orr Jtrly 29,2005, Bradford Horvser and Bryon Beaulieu broLrght a purported class action on behalf of themselves
and all othels sjmilarly situated against PERS, the Board, the state of Oregon, and the Oregon Deparlment of Revenue
over alleged enoneoLrs reporting of duty-related disability payments on fedelal tax reporling forns (Fotm 1099-R).
Plaintift's sued PERB for breach of contract and conversion. Although tlre complaint does not specify a doliar amount the
Deparlment of Revenue and PERS staff estimate a potential exposure of approximately $1.8 million. As pled, if a judg-
tnent lvas entered against PERS the judgment would be covered under Oregon's Torl Claims Act. If the matter is settled,
there is an ttnt'esolved question as to whether PERS or the Torts Claims Act would cover the loss. Counsel has no opinion
at the present time as to the likelihood of an unfavorable olltcome. Parties are exploring settlement.
F. Murcuy v. PERB
The petitioner t'equestecl that PERS change its method of allocating administrative expenses to variable accounts for
200 I and 2002" Petitioner is appealing to the Oregon Court of Appeals from a final order by the Board rejecting his con-
tention. No specific monetary amount has been pled. There is no insurance. Plaintifls objective is to obtain additional
benefits fbr himselland other members who participate in the Variable Account. PERS is contesting the case and counsel
has no opinion on the likelihood of an unfavorable outconre or an estimate of potential loss at this time.
G. Contests and Appeals o.f Stalf Determinatiorts
Thele are a number of claims by petitioners appealing orders of the Board or determinations made by PERS staff. These
ploceedings are being ntade putsuant to the administrative process. These olders or determinations resulted in denying
petitioners some or all of the benefits to whiclr they claim to be entitled. The Board is contesting the cases and counsel is
unable to determine possible losses at this time.
(11) Subsequent Events

As a r-esr"rlt of the AugLrst 11, 2005 Oregon Supren.re Cour-t decision regarding the PERS Refom Legislation, active and
inactive Tiel One member accollnts, employer accollnts and the Benefit Reserve will be adjr-rsted to reflect a crediting of
1 1.33 pelcent for 1999 rather than the previor,rsly credited 20.00 percent. In addition, Tier One member accounts that had
previously received zero percent crediting for 2003 will be creclited with 8.00 percent for 2003. The effect ofthese adjust-
ments will resr.rlt in a decrease in amounts clrarged to ernployers to fund retiree benefits with a corresponding reduction
in amounts held in the Benefit Reserve, a decrease in tlie rernaining Deficit Reserve, and an increase in the Contingency
Resett,e. TIre amounts will not be determined until all member and employer accollnts and retiree benefits have been
adjLrsted and cannot be reliably estimated at this time. Certain Tier One members who have retired and received 20.00
percent crediting for I 999, their beneficiaries, and altemate payees will have their benefits adj Lrsted for a reduced account
balance; some retired members will also see benellt adjustrnents through reinstated cost of living increases due to this
decision. Certain retired Tier One membels, beneficiaries, and altemate payees who received lump-sum distributions will
be ir.rvor'ced to l'ecover overpayments. The amourts to be recovered cannot be reliably estimated at this time.
.36.

Feb 122011 Filing Judge King Show Cause PERS

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Feb 122011 Filing Judge King Show Cause PERS

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Roberta Kelly, pro se

roberta (cJ,mort ga qe ga leri a. conr

IN THE UNITED STATES DISTRICT COURT

Roberta Kelly, Civil 09-1125-KI

O rg anizatio n al C hart, Te chn o logy : Saber Solutions, Inc

It is demanded that the PERS Organizational Chart Consaltantprovide one hundred

discovery in the matter of Saber Red. Portland Police Bureau

certain in stipulating in his deposition on the record the corporation.

remitted on your behalf will be sent back to your employer. Exhibit2,

was only 65 percent funded . . .

on February 17,2011. See also, SCRIBD:

http ://www. scribd. com I docl 48 57 2205lzuCH-TAKE-FROM-POOR-AS-U-S-SUB SIDy-LAw-F

http://www.scribd.com ldocl4863937 5lOregon-Public-Employees-Retirement-pERs-2005

required for the action of understanding made easier.

Therefore, the exposure to what windfalls 1n20I0?

Tri-Met's claim because the money is all the same.

In closing, do we go here: http://en.wikipedia.orglwiki/Manslauehter? And who or

EMPLOYEES, RETIREMENT; CIVIL RIGHTS $ 1983; HUMAN RIGHTS' VIOLATIONS'; ETCETEM

Tri-Met's claim because the money is all the same.

Respectfully submitted this l2rE day of February 2011.

Roberta Kelly, Pro-Se

Michael Pittman (chair)

Brenda Rocklin (vice chair)

Public Employees Retirement System Organizational Chart

Public Employees Retirement Board

Paul Il. Cleary

Sottware Lingineering Contested Case Hearings Contracts and Procuremellt

Administrative Rules Contributions and Banking

Public Employees Retirement System Consultants

PERS Judge Member Program

Questions? Contact the PERS Judge Member Coordinator:

Forms and Publications

I oll 2/1112011 3:41 AM

What do the Strunk/Eugene cases mean for me?

1. Beginning account balance of $75,000 as of 12-31-1998

\Al hat is Stru n k/E u g en e?

Strunk/Citv of Eugene implementation memo

Slr_unt Supreme Court O

Eugene Supreme Court Decision

What is the Strunk case?

What is the Eugene case?

Combined application of the Strunk/Eugene decisions

5. Variable account participants: There is no impact on variable account earnings crediting.

Steve Delaney, Deputy Director

Senator Patrick J. Leahy, Chairman, Democrat-Vermont. Democratic Members; Herb

Ihl's /s a good business opportunity here, he said at a cabinet factory in

ln my understanding as a non-licensed lawyer, a non-practicing attorney at law conflict of

Respectfully submitteQ this 1OrH day of February,2011.

Schedule of Largest Assets Held

Largest Stock Holdings (By Fair Value)

Shares Descriplion Fair Value

Largest Bond Holdings (By Fair Value)

Par Value Description Fair Value

$ 158,150,000 Federal National Mongage Association 1.125%

*A complete list of portfolio holdings is available for viewing upon request.

Assets Under Basis

Investment N,lanagers' Fees:

Othcr Investment Service Fees:

Schedulc of Broker Commissions

Summary of Investment Fees, Commissions, and Bxpenses

Ilrokerage Commissions 25,888,343 32.81 t.207

Schedule of L:rrgest Assets Held

Largest Stock Holclings (by Fair Value)