IN THE SUPREME COURT OF THE STATE OF OREGON

EVERICE MORO, TERRI DOMENIGONI, CHARLES CUSTER, JOHN HAWKINS, MICHAEL ARKEN, EUGENE DITTER JOHN OKIEF, MICHAEL SMITH, LANE JOHNSON, GREG CLOUSER, BRANDON SILENCE, ALISON VICKERY, and JIN VOEK, Petitioners, v. STATE OF OREGON, STATE OF OREGON by and through the DEPARTMENT OF CORRECTIONS, LINN COUNTY, CITY OF PORTLAND, CITY OF SALEM, TUALATIN VALLEY FIRE & RESCUE, ESTACADA SCHOOL DISTRICT, OREGON CITY SCHOOL DISTRICT, ONTARIO SCHOOL DISTRICT, BEAVERTON SCHOOL DISTRICT, WEST LINN SCHOOL DISTRICT, BEND SCHOOL DISTRICT, and PUBLIC EMPLOYEES RETIREMENT BOARD, Respondents.

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Supreme Court Case No. S061452

PETITION FOR DIRECT REVIEW LEGISLATION (AMENDED) SENATE BILL 822 (2013)

COMMON ALLEGATIONS 1. Petitioners are public employee active or retired members of the Public Employees Retirement System (PERS). Some active member petitioners are also members of the Oregon Public Service Retirement Plan (OPSRP) of PERS. 2. The provisions of ORS Chapter 238 (2011) and ORS Chapter 238A (2011) create contracts between the public employers and their public employees (the PERS contracts). Pursuant to Page 1 - PETITION FOR DIRECT REVIEW LEGISLATION (AMENDED)

the PERS contracts the State of Oregon and the public employers acting by and through the Public Employees Retirement Board (PERB) agreed to provide certain pension benefits to petitioners upon retirement. 3. On May 6, 2013, the Governor of the State of Oregon signed into law Senate Bill 822 (SB 822"), altering, amending or repealing the PERS contracts as set forth further herein. 4. Petitioner Everice Moro (Moro) is a retired employee of respondent Estacada School District and a member of the Oregon School Employees Association (OSEA). Petitioner Moro will be adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT A and incorporated herein by this reference. 5. Petitioner Terri Domenigoni (Domenigoni) is a retired employee of respondent Oregon City School District and a member of the Oregon Education Association (OEA). Petitioner Domenigoni will be adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT B and incorporated herein by this reference. 6. Petitioner Charles Custer (Custer) is a retired employee of respondent Tualatin Valley Fire & Rescue and a member of the International Association of Fire Fighters (IAFF). Petitioner Custer will be adversely and irreparably harmed by SB 822 in that petitioners benefits on

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retirement will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT C and incorporated herein by this reference. 7. Petitioner John Hawkins (Hawkins) is a retired employee of respondent Linn County and a member of the Service Employees International Union (SEIU). Petitioner Hawkins will be adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT D and incorporated herein by this reference. 8. Petitioner Michael Arken (Arken) is a retired employee of respondent City of Portland and a member of the Oregon AFSCME Council 75 (AFSCME). Petitioner Arken will be adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT E and incorporated herein by this reference. 9. Petitioner Eugene Ditter (Ditter) is a retired employee of respondent Tualatin Valley Fire & Rescue and a member of the International Association of Fire Fighters (IAFF). Petitioner Ditter will be adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT F and incorporated herein by this reference. 10. Petitioner John OKief (OKief) is a retired employee of respondent Ontario School District and a member of the Oregon Education Association (OEA). Petitioner OKief will be

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adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT G and incorporated herein by this reference. 11. Petitioner Michael Smith (Smith) is a retired employee of respondent Beaverton School District and is a member of the Oregon PERS Retirees, Inc. (OPRI). Petitioner Smith will be adversely and irreparably harmed by SB 822 in that petitioners retirement benefits will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT Hand incorporated herein by this reference. 12. Petitioner Lane Johnson (Johnson) is a current employee of respondent West Linn School District and is a member of the Oregon Education Association (OEA). Petitioner Johnson will be adversely and irreparably harmed by SB 822 in that petitioners benefits on retirement will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT I and incorporated herein by this reference. 13. Petitioner Greg Clouser (Clouser) is a current employee of respondent State of Oregon, Department of Corrections and is a member of Oregon AFSCME (AFSCME). Petitioner Clouser will be adversely and irreparably harmed by SB 822 in that petitioners benefits on retirement will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT J and incorporated herein by this reference.

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14. Petitioner Brandon Silence (Silence) is a current employee of respondent City of Salem and is a member of the International Association of Fire Fighters (IAFF). Petitioner Silence will be adversely and irreparably harmed by SB 822 in that petitioners benefits on retirement will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT K and incorporated herein by this reference. 15. Petitioner Alison Vickery (Vickery) is a current employee of respondent Bend School District and is a member of the Oregon Education Association (OEA). Petitioner Vickery will be adversely and irreparably harmed by SB 822 in that petitioners benefits on retirement will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT L and incorporated herein by this reference. 16. Petitioner Jin Voek (Voek) is a current employee of respondent City of Portland and is a member of the International Association of Fire Fighters (IAFF). Petitioner Voek will be adversely and irreparably harmed by SB 822 in that petitioners benefits on retirement will be substantially reduced, as set forth in petitioners affidavit attached hereto as EXHIBIT M and incorporated herein by this reference. 17. Respondent Public Employees Retirement Board (PERB) is the governing authority of PERS and OPSRP and is named in this action as a necessary party solely for purposes of relief and for no other purpose.

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18. Petitioners bring this action for a determination pursuant to Section 19 of SB 822, which confers jurisdiction upon the Oregon Supreme Court to determine whether SB 822 breaches any contract between members of the Public Employees Retirement System and their employers, violates any constitutional provision, including but not limited to impairment of contract rights of members of the Public Employees Retirement System under Article I, section 21, of the Oregon Constitution, or Article I, section 10, clause 1, of the United States Constitution, or is invalid for any other reason. 19. There is a justiciable controversy between petitioners and respondents in that petitioners will be directly and adversely affected by SB 822 if it is not declared unconstitutional or a breach or invalid for some other reason. Petitioners have met all prerequisites of Section 19 of SB 822. 20. Pursuant to Section 19, subsection 6, of SB 822, the Court should appoint a special master to hear evidence and prepare recommended findings of fact in this matter. 21. Petitioners are entitled to reasonable attorney fees for protecting the PERS fund and the benefits of PERS members under the common fund doctrine and/or under ORS 652.200 for an action for the collection of wages.

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FIRST CLAIM FOR RELIEF (SB 822, Sections 1 and 3; PERS-Cost of Living Adjustments) (Unconstitutional Impairment of Contract-State Constitution) 22. Petitioners Moro, Domenigoni, Custer, Hawkins, Arken, Ditter, OKief, Smith, Johnson, Clouser, and Vickery reallege paragraphs 1-21. 23. Prior to the enactment of SB 822, ORS 238.360 provided that petitioners would be entitled to a an annual Cost of Living Adjustment (COLA) based on the Consumer Price Index (Portland area-all items) up to a maximum of 2.0%, and that any amount in excess of 2.0% maximum shall be accumulated from year to year and included in the computation of the COLA in succeeding years. As a practical matter, this has meant an annual increase in benefits of 2.0%. The COLA benefits provided under ORS 238.360 are part of petitioners PERS contracts. 24. Pursuant to Section 1 of SB 822, after July 1, 2013 and before July 1, 2014, the maximum COLA to petitioners benefits will be 1.5%. On and after July 1, 2014, pursuant to Section 3 of SB 822, COLA to petitioners benefits will be limited as follows: a. for yearly allowance greater than $20,000 but not more than $40,000, $400 plus

1.5% of the allowance amount exceeding $20,000; b. for yearly allowance greater than $40,000 but not more than $60,000, $700 plus

1.0% of the allowance amount exceeding $40,000; c. for yearly allowance greater than $60,000, $900 plus 0.25% of the allowance

amount exceeding $60,000.

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25. Sections 1 and 3 of SB 822 unconstitutionally impair the contracts between petitioners, the State of Oregon and public employers in violation of Article I, Section 21 of the Oregon Constitution. Petitioners are entitled to a declaration that Sections 1 and 3 of SB 822 are unconstitutional, null and void. SECOND CLAIM FOR RELIEF (SB 822, Sections 1 and 3; PERS-Cost of Living Adjustment 2013) (Unconstitutional Impairment of Contract U.S. Constitution) 26. Petitioners Moro, Domenigoni, Custer, Hawkins, Arken, Ditter, OKief, Smith, Johnson, Clouser, and Vickery reallege paragraphs 1-21 and 23-24. 27. Sections 1 and 3 of SB 822 unconstitutionally impair the contracts between petitioners, the State of Oregon and public employers in violation of Article I, section 10, clause 1, of the United States Constitution. Petitioners are entitled to a declaration that Sections 1 and 3 of SB 822 are unconstitutional, null and void. THIRD CLAIM FOR RELIEF (SB 822, Sections 1 and 3; PERS -Cost of Living Adjustments) (Unconstitutional Taking Without Compensation) 28. Petitioners Moro, Domenigoni, Custer, Hawkins, Arken, Ditter, OKief, Smith, Johnson, Clouser, and Vickery reallege paragraphs 1-21 and 23-24.

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29. Petitioners have protected private property rights in receiving promised retirement benefits, including the annual COLA. Petitioners property interests in their pensions were established when they accepted employment with and performed work for their respective public employers. 30. Sections 1 and 3 of SB 822 constitute a taking of petitioners protected property interests. Petitioners have not received just compensation for the taking of their property interests in violation of Article I, Section 18 of the Oregon Constitution. 31. Petitioners are entitled to a declaration that Sections 1 and 3 of SB 822 constitute an unconstitutional taking for which petitioners are entitled to just compensation of the difference between what they would have received as an annual COLA had SB 822 not been enacted and what petitioners will now receive as a result of SB 822. FOURTH CLAIM FOR RELIEF (SB822, Sections 1 and 3; PERS -Cost of Living Adjustment) (Breach of Contract) 32. Petitioners Moro, Domenigoni, Custer, Hawkins, Arken, Ditter, OKief, Smith, Johnson, Clouser, and Vickery reallege paragraphs 1-21 and 23-24. 33. Even if Sections 1 and 3 of SB 822 are not unconstitutional, they breach the petitioners PERS contracts for COLA benefits/wages due and owing.

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34. Petitioners have performed all conditions precedent or have satisfied part performance and are entitled to subsequent completion of service necessary for receipt of COLA benefits. As a result of respondents breach petitioners are damaged through a reduction in their COLA benefits/non-payment of wages due and owing. Petitioners are entitled to a declaration that respondents are liable for breach of contract/non-payment of wages due and owing and that petitioners are entitled to receive an amount in COLA no less than the amount they would have received had SB 822 not been enacted and for retiree petitioners attorney fees in an action for collection of wages under ORS 652.200. FIFTH CLAIM FOR RELIEF (SB 822, Sections 5 and 7; OPSRP Cost of Living Adjustments) (Unconstitutional Impairment of Contract-State Constitution) 35. Petitioners Silence and Voek reallege paragraphs 1-21. 36. Prior to the enactment of SB 822, ORS 238A.210 provided that petitioners would be entitled to a an annual Cost of Living Adjustment (COLA) based on the Portland-Salem, OR-WA, Consumer Price Index for All items up to a maximum of 2.0%, except that no adjustment can be lower than the amount that would have been payable if no COLA had been made since the benefit first became payable. In addition, ORS 238A.470 provided that such benefits could only be changed for benefits attributable to service performed after and salary earned after the effective date of the change. The COLA benefits provided under ORS 238A.210 attributable to service performed before the effective date of SB 822 are part of petitioners OPSRP contract.

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37. Contrary to the terms of ORS 238A.470 and without regard to petitioners service performed prior to the effective date of SB 822, pursuant to Section 5 of SB 822, after July 1, 2013 and before July 1, 2014, the maximum COLA to petitioners benefit will be 1.5%. On and after July 1, 2014, pursuant to Section 7 of SB 822, petitioners COLA will be limited as follows: a. for yearly allowance greater than $20,000 but not more than $40,000, $400 plus

1.5% of the allowance amount exceeding $20,000; b. for yearly allowance greater than $40,000 but not more than $60,000, $700 plus

1.0% of the allowance amount exceeding $40,000; c. for yearly allowance greater than $60,000, $900 plus 0.25% of the allowance

amount exceeding $60,000. 38. Sections 5 and 7 of SB 822 unconstitutionally impairs the contract between petitioners, the State of Oregon and public employers in violation of Article I, Section 21 of the Oregon Constitution. Petitioners are entitled to a declaration that Sections 5 and 7 of SB 822 is unconstitutional, null and void. SIXTH CLAIM FOR RELIEF (SB 822, Sections 5 and 7; OPSRP-Cost of Living Adjustments) (Unconstitutional Impairment of Contract U.S. Constitution) 39. Petitioners Silence and Voek reallege paragraphs 1-21 and 36-37.

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40. Sections 5 and 7 of SB 822 unconstitutionally impair the contracts between petitioners, the State of Oregon and public employers in violation of Article I, section 10, clause 1, of the United States Constitution. Petitioners are entitled to a declaration that Sections 5 and 7 of SB 822 are unconstitutional, null and void. SEVENTH CLAIM FOR RELIEF (SB 822, Sections 5 and 7; OPSRP-Cost of Living Adjustments) (Unconstitutional Taking Without Compensation) 41. Petitioners Silence and Voek reallege paragraphs 1-21 and 36-37. 42. Petitioners have protected private property rights in receiving promised retirement benefits, including the annual COLA. Petitioners property interests in such benefits were established when they accepted employment with and performed work for public employers. 43. Sections 5 and 7 of SB 822 constitute a taking of petitioners protected property interests. Petitioners have not received just compensation for the taking of such property interests in violation of Article I, Section 18 of the Oregon Constitution. 44. Petitioners are entitled to a declaration that Sections 5 and 7 of SB 822 constitute an unconstitutional taking for which petitioners are entitled to just compensation of the difference between what petitioners would have received as an annual COLA had SB 822 not been enacted and what petitioners will now receive as a result of SB 822.

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EIGHTH CLAIM FOR RELIEF (SB822, Sections 5 and 7; OPSRP-Cost of Living Adjustments) (Breach of Contract) 45. Petitioners Silence and Voek reallege paragraphs 1-21 and 36-37. 46. Even if Sections 5 and 7 of SB 822 are not unconstitutional they breach petitioners OPSRP contract for COLA benefits/wages due and owing. 47. Petitioners have performed all conditions precedent or have satisfied part-performance and are entitled to subsequent completion of the necessary service for such COLA benefits. As a result of respondents breach petitioner is damaged through a reduction in COLA benefits/ non-payment of wages due and owing. Petitioners are entitled to a declaration that respondents are liable for breach of contract and for non-payment of wages due and owing and that petitioners are entitled to receive an amount in COLA benefits/wages no less than the amount petitioners would have received had SB 822 not been enacted and for retiree petitioners attorney fees in an action for collection of wages under ORS 652.200. NINTH CLAIM FOR RELIEF (SB 822, Sections 11-17-SB 656 Benefits for Out of State Retirees) (Unconstitutional Impairment of Contract-State Constitution) 48. Petitioners OKief and Smith reallege paragraphs 1-21.

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49. Petitioners reside outside the state of Oregon and their retirement benefits are not subject to Oregon personal income tax. 50. Prior to the enactment of SB 822, petitioners were entitled to receive benefits under chapter 796, Oregon Laws 1991 (SB 656) based on total years of service at retirement regardless of where they resided and even if they did not pay Oregon personal income taxes on their benefits. The years of service benefits provided under chapter 796, Oregon Laws 1991 (SB 656) are part of petitioners PERS contracts. 51. Pursuant to Sections 11-17 of SB 822, effective the first day of the calendar year following receipt of notice by the PERS Board that petitioners do not reside in Oregon and are not subject to Oregon personal income tax (i.e., January of 2014), petitioners will no longer receive the benefits under chapter 796, Oregon Laws 1991 (SB 656). 52. Sections 11-17 of SB 822 unconstitutionally impair the contracts between petitioners, the State of Oregon, and public employers in violation of Article I, Section 21 of the Oregon Constitution. Petitioners are entitled to a declaration that, Sections 11-17 of SB 822 are unconstitutional, null and void.

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TENTH CLAIM FOR RELIEF (SB 822, Sections 11-17-SB 656 Benefits for Out of State Retirees) (Unconstitutional Impairment of Contract-US Constitution) 53. Petitioners OKief and Smith reallege paragraphs 1-21 and 49-51. 54. Sections 11-17 of SB 822 unconstitutionally impair the contracts between petitioners, the State of Oregon and public employers in violation of Article I, section 10, clause 1, of the United States Constitution. Petitioners are entitled to a declaration that Sections 11-17 of SB 822 are unconstitutional, null and void. ELEVENTH CLAIM FOR RELIEF (SB 822, Sections 11-17-SB 656 Benefits for Out of State Retirees) (Unconstitutional Taking Without Compensation) 55. Petitioners OKief and Smith reallege paragraphs 1-21 and 49-51. 56. Petitioners have protected private property rights in receiving promised retirement benefits, including the years of service benefits provided under chapter 796, Oregon Laws 1991 (SB 656). Petitioners property interests in such benefits were established when they accepted employment with and performed work for public employers.

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57. Sections 11-17 of SB 822 constitute a taking of petitioners protected property interests. Petitioners have not received just compensation for the taking of their property interests in violation of Article I, Section 18 of the Oregon Constitution. 58. Petitioners are entitled to a declaration that Sections 11-17 of SB 822 constitute an unconstitutional taking for which petitioners are entitled to just compensation measured as the difference between what petitioners would have received as total service benefits under chapter 796, Oregon Laws 1991 (SB 656) had SB 822 not been enacted and what petitioners will now receive as a result of SB 822. TWELFTH CLAIM FOR RELIEF (SB 822, Sections 11-17-SB 656 Benefits for Out of State Retirees) (Breach of Contract) 59. Petitioners OKief and Smith reallege paragraphs 1-21 and 49-51. 60. Even if Sections 11-17 of SB 822 are not unconstitutional they breach the petitioners PERS contracts for total service benefits under chapter 796, Oregon Laws 1991 (SB 656)/wages due and owing. 61. Petitioners have performed all conditions precedent. As a result of respondents breach, petitioners will be damaged through a reduction in total service benefits under chapter 796, Oregon Laws 1991 (SB 656)/non-payment of wages due and owing. Petitioners are entitled to a

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declaration that respondents are liable for breach of contract and non-payment of wages due and owing and that petitioners are entitled to receive an amount in total service benefits under chapter 796, Oregon Laws 1991 (SB 656) no less than the amount they would have received had the SB 822 not been enacted and to attorney fees in an action for collection of wages under ORS 652.200. WHEREFORE, petitioners petition this court for an order: 1. Appointing a special master under Section 19, subsection 6, of SB 822 to hear

evidence and to propose recommended findings of facts; 2. 3. Declaring SB 822 to be unconstitutional and void in whole or in part; In the alternative, declaring that SB 822 in whole or in part constitute a breach of

the petitioners PERS and/or OPSRP and ordering that respondent employers by and through PERB pay to petitioners benefits in an amount no less than that they would have received had SB 822 not been passed; 4. In the alternative, declaring that SB 822 in whole or in part constitute an

unconstitutional taking and ordering that respondent employers by and through PERB pay to petitioners just compensation measured as the difference between what petitioners would have received in benefits had SB 822 not been enacted and what petitioners will now receive as a result of SB 822; 5. Enjoining respondents from implementing SB 822 in whole or in part, including

issuing a preliminary injunction; 6. Granting such other relief as may be just and equitable; and

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7.

Awarding petitioners their costs, disbursements and reasonable attorney fees

incurred herein under the common fund doctrine and/or for retirees under ORS 652.200. DATED this 1st day of July, 2013.

s/Gregory A. Hartman Gregory A. Hartman, OSB 74128 Aruna A. Masih, OSB 97324 Of Attorneys for Petitioners

Page 18 - PETITION FOR DIRECT REVIEW LEGISLATION (AMENDED)

EXHIBIT A

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Everice Moro Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member Everice Moro and her beneficiary will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon Everice Moros life expectancy combined with her survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). A summary of the year by year loss is provided in the attached report. The results of my calculations are shown below: Everice Moros estimated benefit loss attributable to SB 822: $8,101

Calculation Data
Everice Moro: Birth Date: Benefit Amount: Benefit Form: Employment Classification: Oregon Residency: David Moro: Birth Date: Survivorship Benefit: Source of Information: . $1,539.44 per month as of August 1, 2012. PERS Option 2A - 100% Joint & Survivor Annuity. School employee. In-state.

100% of Everice Moro's benefit.

Office of Greg Hartman, PERS Benefit Estimate dated August 31, 2011, PERS paystub for 1st quarter of 2013.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Everice Moro Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). Everice Moro: white collar (female) with 24-month setback. David Moro: 25% blue collar (male), with 12-month setback. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Everice Moro's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Everice Moro 24.25 years 2.90 years 27.15 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 TOTAL

COLA Loss $92 $94 $96 $98 $100 $103 $109 $117 $127 $139 $154 $171 $191 $213 $238 $266 $297 $330 $367 $407 $451 $498 $548 $602 $659 $721 $786 $128 $8,101

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT B

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Terri Domenigoni Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member Terri Domenigoni and her beneficiary will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon Terri Domenigonis life expectancy combined with her survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). A summary of the year by year loss is provided in the attached report. The results of my calculations are shown below: Terri Domenigonis estimated benefit loss attributable to SB 822: $28,797

Calculation Data
Terri Domenigoni: Birth Date: Benefit Amount: Benefit Form: Employment Classification: Oregon Residency: Daniel Domenigoni: Birth Date: Survivorship Benefit: Source of Information: . $2,174.45 per month as of August 1, 2012. PERS Option 2A - 100% Joint & Survivor Annuity. School employee. In-state. . 100% of Terri Domenigoni's benefit.

Office of Greg Hartman, PERS Notice of Entitlement dated September 26, 2006, PERS retiree internet database.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Terri Domenigoni Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). Terri Domenigoni: white collar (female) with 24-month setback. Daniel Domenigoni: 25% blue collar (male), with 12-month setback. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Terri Domenigoni's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Terri Domenigoni 24.50 years 3.14 years 27.64 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 TOTAL

COLA Loss $130 $166 $204 $245 $290 $339 $391 $446 $506 $569 $637 $709 $785 $865 $950 $1,040 $1,135 $1,235 $1,340 $1,450 $1,565 $1,687 $1,814 $1,946 $2,086 $2,235 $2,394 $1,640 $28,797

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIIT C

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Charles Custer Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member Charles Custer and his beneficiaries will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon Charles Custers life expectancy combined with his survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). A summary of the year by year loss is provided in the attached report. The results of my calculations are shown below: Charles Custers estimated benefit loss attributable to SB 822: $47,996

Calculation Data
Charles Custer: Birth Date: Benefit Amount: Benefit Form: Employment Classification: Oregon Residency: Kathryn Custer: Birth Date: Survivorship Benefit: Source of Information:

$4,192.45 per month as of August 1, 2012. PERS Option 3A 50% Joint & Survivor Annuity. Police & Fire. In-state. . 50% of Charles Custers benefit.

Office of Greg Hartman, PERS Notice of Entitlement dated August 17, 1993, PERS paystub for 1st quarter of 2013.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Charles Custer Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). Charles Custer: 33% blue collar (male) with no setback. Kathryn Custer: white collar (female), no set-back. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Charles Custer's life expectancy: Survivor's expected payment period: Total expected payment period:

Charles Custer 13.12 years 8.05 years 21.17 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 TOTAL

COLA Loss $252 $467 $695 $936 $1,190 $1,457 $1,739 $2,034 $2,344 $2,668 $3,008 $3,364 $3,739 $2,317 $2,280 $2,503 $2,738 $2,987 $3,248 $3,522 $3,810 $699 $47,996

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 24, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: John Hawkins Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member John Hawkins and his beneficiaries will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon John Hawkins life expectancy combined with his survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). A summary of the year by year loss is provided in the attached report. The results of my calculations are shown below: John Hawkins estimated benefit loss attributable to SB 822: $32,752

Calculation Data
John Hawkins: Birth Date: Benefit Amount: Benefit Form: Employment Classification: Oregon Residency: Ann Hawkins: Birth Date: Survivorship Benefit: Source of Information: . $2,618.11 per month as of August 1, 2012. PERS Option 2 - 100% Joint & Survivor Annuity. General Service. In-state. . 100% of John Hawkins benefit.

Office of Greg Hartman, PERS Notice of Entitlement dated April 10, 2003, PERS retiree internet database.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 24, 2013 Page 2 of 2 Re: John Hawkins Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). John Hawkins: 25% blue collar (male) with 12-month setback. Ann Hawkins: white collar (female), no set-back. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: John Hawkins John Hawkins's Life Expectancy: Survivor's expected payment period: Total expected payment period: 17.88 years 6.48 years 24.36 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 TOTAL

Loss $157 $220 $286 $357 $433 $513 $597 $687 $781 $881 $985 $1,095 $1,211 $1,332 $1,460 $1,598 $1,745 $1,902 $2,070 $2,248 $2,438 $2,638 $2,850 $3,074 $1,192 $32,752

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT E

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 24, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Michael Arken Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member Michael Arken and his beneficiary will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon Michael Arkens life expectancy combined with his survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). A summary of the year by year loss is provided in the attached report. The results of my calculations are shown below: Michael Arkens estimated benefit loss attributable to SB 822: $59,767

Calculation Data
Michael Arken: Birth Date: Benefit Amount: Benefit Form: Employment Classification: Oregon Residency: Penny Arken: Birth Date: Survivorship Benefit: Source of Information: . $2,778.01 per month as of August 1, 2012. PERS Option 2 - 100% Joint & Survivor Annuity. General Service. In-State.

100% of Michael Arken's benefit.

Office of Greg Hartman, PERS Notice of Entitlement dated April 11, 2002. PERS retiree internet database.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 24, 2013 Page 2 of 2 Re: Michael Arken Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). Michael Arken: 25% blue collar (male) with 12-month setback. Penny Arken: white collar (female), no set-back. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Michael Arken Michael Arken's Life Expectancy: Survivor's expected payment period: Total expected payment period: 18.53 years 10.72 years 29.25 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 TOTAL

Loss $167 $239 $316 $398 $484 $576 $672 $773 $880 $993 $1,111 $1,236 $1,372 $1,516 $1,671 $1,837 $2,013 $2,200 $2,398 $2,608 $2,829 $3,063 $3,308 $3,567 $3,839 $4,124 $4,424 $4,737 $5,065 $1,352 $59,767

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT F

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Eugene Ditter Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member Eugene Ditter and his beneficiaries will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon Eugene Ditters life expectancy combined with his survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). A summary of the year by year loss is provided in the attached report. The results of my calculations are shown below: Eugene Ditters estimated benefit loss attributable to SB 822: $465,003

Calculation Data
Eugene Ditter: Birth Date: Benefit Amount: Benefit Form: Employment Classification: Oregon Residency: Carol Ditter: Birth Date: Survivorship Benefit: Source of Information:

$7,602.30 per month as of August 1, 2012. PERS Option 3 50% Joint & Survivor Annuity. Police & Fire. In-state. . 50% of Eugene Ditters benefit.

Office of Greg Hartman, PERS Notice of Entitlement dated January 23, 2003, PERS paystub for 1st quarter of 2013.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Eugene Ditter Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). Eugene Ditter: 33% blue collar (male) with no setback. Carol Ditter: white collar (female), no set-back. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Eugene Ditter's life expectancy: Survivor's expected payment period: Total expected payment period:

Eugene Ditter 24.31 years 6.29 years 30.60 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 TOTAL

COLA Loss $456 $1,336 $2,250 $3,200 $4,186 $5,209 $6,270 $7,369 $8,508 $9,688 $10,908 $12,170 $13,475 $14,824 $16,218 $17,657 $19,143 $20,676 $22,258 $23,889 $25,572 $27,305 $29,092 $30,932 $21,502 $17,389 $18,393 $19,427 $20,490 $21,584 $13,626 $465,003

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT G

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: John Okief Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member John Okief and his beneficiary will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon John Okiefs life expectancy combined with his survivor beneficiarys life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). John Okief is currently an out-of-state resident. His tax adjustment increase percentage under SB 656 was 3.0%. The resultant reduction in his benefit under SB 822 due to the repeal of the SB 656 tax adjustment would therefore be the inverse of one plus 3.0%, or 2.91%. It was assumed this reduction would be effective January 1, 2014 under the provisions of SB 822. The elimination of the HB 3349 tax adjustment increase was not considered in the loss calculation. A summary of the year by year benefit loss is provided in the attached report. The results of my calculations are shown below: John Okiefs estimated benefit loss attributable to SB 822 (COLA): John Okiefs estimated benefit loss attributable to SB 822 (Tax Adj.): John Okiefs estimated benefit loss attributable to SB 822 (Total): $200,560 $53,513 $254,073

Calculation Data
John Okief: Birth Date: Benefit Amount: . $3,803.19 per month as of January 1, 2013.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: John Okief Estimated PERS benefit loss attributable to Senate Bill 822 Benefit Form: Employment Classification: Oregon Residency: Mary Okief: Birth Date: Survivorship Benefit: Source of Information: PERS Option 2 - 100% Joint & Survivor Annuity. School employee. Out-of-state. . 100% of John Okiefs benefit.

Office of Greg Hartman, PERS Notice of Entitlement dated July 10, 2002, PERS retiree internet database.

Actuarial Assumptions
Valuation Date: Mortality: August 1, 2013. RP-2000 (generational mortality projection using scale AA). John Okief: white collar (male) with 18-month setback. Mary Okief: white collar (female), no set-back. Not applicable. 2% per year.

Interest: Old-law COLA: (Cost-of-Living Adjustment)

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: John Okief John Okief's Life Expectancy: Survivor's expected payment period: Total expected payment period: 18.98 years 15.80 years 34.78 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 7/31/2045 7/31/2046 7/31/2047 7/31/2048 TOTAL

COLA Loss $228 $396 $575 $765 $966 $1,180 $1,406 $1,644 $1,895 $2,160 $2,438 $2,729 $3,035 $3,356 $3,692 $4,043 $4,410 $4,793 $5,196 $5,622 $6,073 $6,549 $7,050 $7,577 $8,131 $8,711 $9,320 $9,956 $10,621 $11,316 $12,041 $12,797 $13,584 $14,403 $11,899 $200,560

Tax Adjustment Loss $787 $1,363 $1,376 $1,390 $1,404 $1,418 $1,432 $1,447 $1,461 $1,476 $1,490 $1,505 $1,520 $1,536 $1,551 $1,566 $1,582 $1,598 $1,611 $1,617 $1,621 $1,625 $1,630 $1,634 $1,638 $1,642 $1,646 $1,650 $1,654 $1,658 $1,662 $1,667 $1,671 $1,675 $1,310 $53,513

Total Loss $1,015 $1,759 $1,951 $2,155 $2,370 $2,598 $2,838 $3,091 $3,356 $3,635 $3,928 $4,235 $4,556 $4,892 $5,243 $5,610 $5,992 $6,391 $6,807 $7,240 $7,695 $8,174 $8,680 $9,211 $9,768 $10,353 $10,965 $11,606 $12,276 $12,975 $13,704 $14,464 $15,255 $16,078 $13,209 $254,073

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT H

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Michael Smith Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits retired Member Michael Smith will experience due to the enactment of Senate Bill 822. The method used to compute the estimated loss is based upon Michael Smiths life expectancy. The sum of the expected future benefit payments under both SB 822 and prior law is determined assuming the date of death corresponds with his life expectancy, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. Actuarial present values are not used only expected benefit payment totals are employed. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). Michael Smith is currently an out-of-state resident. His tax adjustment increase percentage under SB 656 was 4.0%. The resultant reduction in his benefit under SB 822 due to the repeal of the SB 656 tax adjustment would therefore be the inverse of one plus 4.0%, or 3.85%. It was assumed this reduction would be effective January 1, 2014 under the provisions of SB 822. The elimination of the HB 3349 tax adjustment increase was not considered in the loss calculation. A summary of the year by year benefit loss is provided in the attached report. The results of my calculations are shown below: Michael Smiths estimated benefit loss attributable to SB 822 (COLA): Michael Smiths estimated benefit loss attributable to SB 822 (Tax Adj.): Michael Smiths estimated benefit loss attributable to SB 822 (Total): $60,191 $10,060 $70,251

Calculation Data
Michael Smith: Birth Date: Benefit Amount: Benefit Form: . $6,049.32 per month as of January 1, 2013. PERS Option 4 15-year certain and life annuity (certain period expired).

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Michael Smith Estimated PERS benefit loss attributable to Senate Bill 822 Employment Classification: Oregon Residency: Source of Information: General Service. Out-of-state.

Office of Greg Hartman, PERS Online Member Services screen shot, PERS benefit calculation worksheet.

Actuarial Assumptions
Valuation Date: Mortality: Interest: Old-law COLA: (Cost-of-Living Adjustment) August 1, 2013. RP-2000 (generational mortality projection using scale AA). Michael Smith: 25% blue collar (male) with 12-month setback. Not applicable. 2% per year.

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Michael Smith's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Michael Smith 13.47 years 0.00 years 13.47 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 TOTAL

COLA Loss $363 $910 $1,484 $2,085 $2,716 $3,375 $4,064 $4,784 $5,534 $6,316 $7,130 $7,978 $8,859 $4,594 $60,191

Tax Adjustment Loss $442 $760 $762 $764 $766 $768 $770 $772 $774 $776 $778 $780 $781 $368 $10,060

Total Loss $805 $1,670 $2,246 $2,850 $3,482 $4,143 $4,834 $5,555 $6,308 $7,092 $7,908 $8,757 $9,640 $4,962 $70,251

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT I

Exhibit 1, Page 2 of 5

Exhibit 1, Page 3 of 5

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Lane Johnson Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits Lane Johnson will experience due to the enactment of Senate Bill 822. Lane Johnsons benefit at retirement was estimated assuming a 3.75% salary increase assumption, the same assumption used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). It was also assumed that he will survive to, and retire at, the normal retirement age of 58 and elect that his benefits be paid under Option 2, a joint and 100% survivor annuity. The method used to compute the estimated loss is based upon Lane Johnsons life expectancy at retirement combined with his survivor beneficiarys life expectancy. The sum of the expected benefits under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. It is important to note that the computed figures are not actuarial present values they are expected benefit payment totals. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report. The results of my calculations are shown below: Lane Johnsons estimated benefit at retirement (age 58): Lane Johnsons estimated benefit loss attributable to SB 822: Calculation Data Lane Johnson: Birth Date: PERS Membership Date: Credited Service: Regular Account Balance: Variable Account Balance: 2012 Salary: $1,995/month $31,418

. March 1, 1990. 23 years 5 months as of May 31, 2013. $89,262.79 as of December 31, 2012. None. $65,303.64.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Lane Johnson Estimated PERS benefit loss attributable to Senate Bill 822

PERS Classification: School employee. Oregon Residency: In-state. Source of Information: Office of Greg Hartman, PERS Online Member Services screen shots, 2012 PERS Member Annual Statement. Actuarial Assumptions and Methods Valuation Date: Mortality: August 1, 2013. Pre-retirement mortality: None. Post-retirement mortality: RP-2000 (generational mortality projection using scale AA). Lane Johnson: white collar (male) with 18-month setback. Beneficiary: white collar (female), no set-back. Not Applicable. 3.75% (2.75% inflation + 1.00% real salary growth). 58. 8.00% on Regular Account balance. 8.25% on Variable Account balance. 2% per year. Option 2. Same as Member.

Interest: Salary Scale: Retirement Age: PERS Account Balance Projection Rate: Old-law COLA: (Cost-of-Living Adjustment) Retirement Payment Option: Beneficiary Age:

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Lane Johnson's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Lane Johnson 28.25 years 5.53 years 33.78 years

Year ending 7/31/2014 7/31/2015 7/31/2016 7/31/2017 7/31/2018 7/31/2019 7/31/2020 7/31/2021 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 7/31/2045 7/31/2046 7/31/2047 TOTAL

Loss $0 $20 $42 $67 $95 $126 $160 $198 $238 $282 $329 $380 $434 $493 $555 $621 $692 $766 $846 $929 $1,018 $1,111 $1,209 $1,312 $1,420 $1,534 $1,654 $1,779 $1,910 $2,047 $2,192 $2,348 $2,514 $2,098 $31,418

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT J

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Gregory Clouser Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits Gregory Clouser will experience due to the enactment of Senate Bill 822. Gregory Clousers benefit at retirement was estimated assuming a 3.75% salary increase assumption, the same assumption used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). It was also assumed that he will survive to, and retire at, the normal retirement age of 55 and elect that his benefits be paid under Option 2, a joint and 100% survivor annuity. The method used to compute the estimated loss is based upon Gregory Clousers life expectancy at retirement combined with his survivor beneficiarys life expectancy. The sum of the expected benefits under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. It is important to note that the computed figures are not actuarial present values they are expected benefit payment totals. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report. The results of my calculations are shown below: Gregory Clousers estimated benefit at retirement (age 55): Gregory Clousers estimated benefit loss attributable to SB 822: Calculation Data Gregory Clouser: Birth Date: PERS Membership Date: Credited Service: Regular Account Balance: Variable Account Balance: 2012 Salary: $3,330/month $144,754

. March 1, 2001. 12 years 3 months as of May 31, 2013. $7,018.21 as of December 31, 2012. None. $68,634.22.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Gregory Clouser Estimated PERS benefit loss attributable to Senate Bill 822

PERS Classification: Police & Fire. Oregon Residency: In-state. Source of Information: Office of Greg Hartman, PERS Online Member Services screen shots, 2012 PERS Member Annual Statement. Actuarial Assumptions and Methods Valuation Date: Mortality: August 1, 2013. Pre-retirement mortality: None. Post-retirement mortality: RP-2000 (generational mortality projection using scale AA). Gregory Clouser: 33% blue collar (male) with no setback. Beneficiary: white collar (female), no set-back. Not Applicable. 3.75% (2.75% inflation + 1.00% real salary growth). 55. 8.00% on Regular Account balance. 8.25% on Variable Account balance. 2% per year. Option 2. Same as Member.

Interest: Salary Scale: Retirement Age: PERS Account Balance Projection Rate: Old-law COLA: (Cost-of-Living Adjustment) Retirement Payment Option: Beneficiary Age:

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Gregory Clouser's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Gregory Clouser 29.24 years 6.73 years 35.97 years

Year ending 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 7/31/2045 7/31/2046 7/31/2047 7/31/2048 7/31/2049 7/31/2050 7/31/2051 7/31/2052 7/31/2053 7/31/2054 7/31/2055 7/31/2056 7/31/2057 7/31/2058 7/31/2059 TOTAL

Loss $0 $100 $208 $326 $454 $591 $738 $895 $1,063 $1,242 $1,432 $1,633 $1,846 $2,072 $2,309 $2,560 $2,823 $3,100 $3,390 $3,695 $4,014 $4,348 $4,697 $5,062 $5,443 $5,840 $6,254 $6,690 $7,150 $7,635 $8,146 $8,683 $9,247 $9,838 $10,457 $10,771 $144,754

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT K

Name BRANDON SILENCE PERS ID Benefit Estimate - Step 3 Account OPSRP - Pension Account Type Member Tell Me More about Benefit Estimate Reference # Creation Retirement Status Calculated Date 06/10/2013 Date 07/01/2035 Retirement Eligibility Police & Fire

Final Average Salary Retirement Police & Fire Eligibility Total Service 6 yrs 10 mos Credit Monthly Final $ 7,124.14 Average Salary

Exhibit 1, Page 4 of 5

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Brandon Silence Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of OPSRP pension benefits Brandon Silence will experience due to the enactment of Senate Bill 822. Brandon Silences benefit at retirement was estimated assuming a 3.75% salary increase assumption, the same assumption used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). It was also assumed that he will survive to, and retire at, the normal retirement age of 53 and elect that his benefits be paid under Option 2, a joint and 100% survivor annuity. The method used to compute the estimated loss is based upon Brandon Silences life expectancy at retirement combined with his survivor beneficiarys life expectancy. The sum of the expected benefits under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. It is important to note that the computed figures are not actuarial present values they are expected benefit payment totals. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report. The results of my calculations are shown below: Brandon Silences estimated benefit at retirement (age 53): Brandon Silences estimated benefit loss attributable to SB 822: $7,922/month $1,008,558

Calculation Data Brandon Silence: Birth Date: . PERS Membership Date: August 1, 2006. Credited Service: 6 years 5 months as of December 31, 2013. Final Average Salary: $86,667/year (based on 2010, 2011, and 2012 salary). PERS Classification: Police and Fire. Oregon Residency: In-state. Source of Information: Office of Greg Hartman, PERS Online Member Services screen shots, 2012 PERS Member Annual Statement.
Tel & Fax: (503) 246-1654 1752 SE 25th Ave Portland OR 97214-4905 www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Brandon Silence Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions and Methods Valuation Date: Mortality: August 1, 2013. Pre-retirement mortality: None. Post-retirement mortality: RP-2000 (generational mortality projection using scale AA). Brandon Silence: 33% blue collar (male) with no setback. Beneficiary: white collar (female), no set-back. Not Applicable. 3.75% (2.75% inflation + 1.00% real salary growth). 53. 8.00% on Regular Account balance. 8.25% on Variable Account balance. 2% per year. Option 2. Same as Member.

Interest: Salary Scale: Retirement Age: PERS Account Balance Projection Rate: Old-law COLA: (Cost-of-Living Adjustment) Retirement Payment Option: Beneficiary Age:

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Brandon Silence's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Brandon Silence 31.27 years 6.76 years 38.03 years

Year ending 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 7/31/2045 7/31/2046 7/31/2047 7/31/2048 7/31/2049 7/31/2050 7/31/2051 7/31/2052 7/31/2053 7/31/2054 7/31/2055 7/31/2056 7/31/2057 7/31/2058 7/31/2059 7/31/2060 7/31/2061 7/31/2062 7/31/2063 7/31/2064 7/31/2065 7/31/2066 7/31/2067 7/31/2068 7/31/2069 7/31/2070 7/31/2071 7/31/2072 7/31/2073 TOTAL

Loss $0 $914 $1,863 $2,849 $3,871 $4,932 $6,031 $7,170 $8,349 $9,569 $10,831 $12,136 $13,485 $14,879 $16,318 $17,804 $19,338 $20,920 $22,552 $24,234 $25,969 $27,756 $29,597 $31,493 $33,445 $35,455 $37,523 $39,651 $41,839 $44,091 $46,405 $48,785 $51,231 $53,744 $56,326 $58,979 $61,704 $64,502 $2,021 $1,008,558

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT L

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Alison Vickery Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of PERS pension benefits Alison Vickery will experience due to the enactment of Senate Bill 822. Alison Vickerys benefit at retirement was estimated assuming a 3.75% salary increase assumption, the same assumption used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). It was also assumed that she will survive to, and retire at, the normal retirement age of 60 and elect that his benefits be paid under Option 2, a joint and 100% survivor annuity. The method used to compute the estimated loss is based upon Alison Vickerys life expectancy at retirement combined with her survivor beneficiarys life expectancy. The sum of the expected benefits under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. It is important to note that the computed figures are not actuarial present values they are expected benefit payment totals. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report. The results of my calculations are shown below: Alison Vickerys estimated benefit at retirement (age 60 ): Alison Vickerys estimated benefit loss attributable to SB 822: Calculation Data Alison Vickery: Birth Date: PERS Membership Date: Credited Service: Regular Account Balance: Variable Account Balance: 2012 Salary: $2,167/month $32,859

. March 1, 2001. 12 years 3 months as of May 31, 2013. $12,245.89 as of December 31, 2012. None. $63,167.

Tel & Fax: (503) 246-1654

1752 SE 25th Ave Portland OR 97214-4905

www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Alison Vickery Estimated PERS benefit loss attributable to Senate Bill 822

PERS Classification: School employee. Oregon Residency: In-state. Source of Information: Office of Greg Hartman, 2012 PERS Member Annual Statement. Actuarial Assumptions and Methods Valuation Date: Mortality: August 1, 2013. Pre-retirement mortality: None. Post-retirement mortality: RP-2000 (generational mortality projection using scale AA). Alison Vickery: white collar (female) with 24-month setback. Beneficiary: 25% blue collar (male), with 12-month setback. Not Applicable. 3.75% (2.75% inflation + 1.00% real salary growth). 60. 8.00% on Regular Account balance. 8.25% on Variable Account balance. 2% per year. Option 2. Same as Member.

Interest: Salary Scale: Retirement Age: PERS Account Balance Projection Rate: Old-law COLA: (Cost-of-Living Adjustment) Retirement Payment Option: Beneficiary Age:

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Alison Vickery's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Alison Vickery 28.31 years 4.20 years 32.51 years

Year ending 7/31/2022 7/31/2023 7/31/2024 7/31/2025 7/31/2026 7/31/2027 7/31/2028 7/31/2029 7/31/2030 7/31/2031 7/31/2032 7/31/2033 7/31/2034 7/31/2035 7/31/2036 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 7/31/2045 7/31/2046 7/31/2047 7/31/2048 7/31/2049 7/31/2050 7/31/2051 7/31/2052 7/31/2053 7/31/2054 TOTAL

Loss $0 $0 $30 $63 $99 $139 $182 $228 $278 $331 $389 $450 $515 $584 $658 $736 $819 $906 $998 $1,095 $1,197 $1,305 $1,417 $1,536 $1,660 $1,790 $1,926 $2,072 $2,228 $2,394 $2,570 $2,758 $1,508 $32,859

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

EXHIBIT M

Exhibit 1, Page 5 of 5

Alka MacLennan, MBA David MacLennan, ASA, EA

THE CREVELING MACLENNAN COMPANY

Bradford Creveling, EA (Advisor)

June 27, 2013 Greg Hartman Bennett, Hartman, Morris & Kaplan LLP 210 SW Morrison St Ste 500 Portland OR 97204 Re: Jin Voeks Estimated PERS benefit loss attributable to Senate Bill 822 Dear Greg: At your request, I have determined the estimated loss of OPSRP pension benefits Jin Voeks will experience due to the enactment of Senate Bill 822. Jin Voekss benefit at retirement was estimated assuming a 3.75% salary increase assumption, the same assumption used to compute PERS system costs in the December 31, 2011 actuarial report (the most recent report available). It was also assumed that he will survive to, and retire at, the normal retirement age of 53 and elect that his benefits be paid under Option 2, a joint and 100% survivor annuity. The method used to compute the estimated loss is based upon Jin Voekss life expectancy at retirement combined with his survivor beneficiarys life expectancy. The sum of the expected benefits under both SB 822 and prior law is determined assuming the dates of death correspond with their life expectancies, and the difference is the estimated average benefit loss for PERS Members with similar ages and benefit levels. It is important to note that the computed figures are not actuarial present values they are expected benefit payment totals. The mortality assumptions used in computing life expectancy, and the old-law COLA assumption, are identical to those used to compute PERS system costs in the December 31, 2011 actuarial report. The results of my calculations are shown below: Jin Voekss estimated benefit at retirement (age 53): Jin Voekss estimated benefit loss attributable to SB 822: $4,334/month $316,436

Calculation Data Jin Voeks: Birth Date: . PERS Membership Date: January 1, 2011. Credited Service: 2 years as of December 31, 2012. 2012 Salary: $51,568.40. PERS Classification: Police and Fire. Oregon Residency: In-state. Source of Information: Office of Greg Hartman, PERS Online Member Services screen shots, 2011 PERS Member Annual Statement.
Tel & Fax: (503) 246-1654 1752 SE 25th Ave Portland OR 97214-4905 www.pen-val.com

Exhibit 2, Page 1 of 3

Greg Hartman June 27, 2013 Page 2 of 2 Re: Jin Voeks Estimated PERS benefit loss attributable to Senate Bill 822

Actuarial Assumptions and Methods Valuation Date: Mortality: August 1, 2013. Pre-retirement mortality: None. Post-retirement mortality: RP-2000 (generational mortality projection using scale AA). Jin Voeks: 33% blue collar (male) with no setback. Beneficiary: white collar (female), no set-back. Not Applicable. 3.75% (2.75% inflation + 1.00% real salary growth). 53. 8.00% on Regular Account balance. 8.25% on Variable Account balance. 2% per year. Option 2. Same as Member.

Interest: Salary Scale: Retirement Age: PERS Account Balance Projection Rate: Old-law COLA: (Cost-of-Living Adjustment) Retirement Payment Option: Beneficiary Age:

Statement of Qualifications: I am a consulting actuary who has been employed in pension-related actuarial work since 1984. I am an Associate of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries, a Member of the ASPPA College of Pension Actuaries, and an Enrolled Actuary. I satisfy the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. I am not aware of any actual or potential conflict of interest that would impair my objectivity. Please contact me if you have any questions. Sincerely,

David MacLennan, ASA, MSPA, FCA, EA Consulting Actuary david@pen-val.com

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 2 of 3

Member: Jin Voeks's Life Expectancy: Survivor's expected payment period: Total expected payment period:

Jin Voeks 31.27 years 6.76 years 38.03 years

Year ending 7/31/2037 7/31/2038 7/31/2039 7/31/2040 7/31/2041 7/31/2042 7/31/2043 7/31/2044 7/31/2045 7/31/2046 7/31/2047 7/31/2048 7/31/2049 7/31/2050 7/31/2051 7/31/2052 7/31/2053 7/31/2054 7/31/2055 7/31/2056 7/31/2057 7/31/2058 7/31/2059 7/31/2060 7/31/2061 7/31/2062 7/31/2063 7/31/2064 7/31/2065 7/31/2066 7/31/2067 7/31/2068 7/31/2069 7/31/2070 7/31/2071 7/31/2072 7/31/2073 7/31/2074 7/31/2075 TOTAL

Loss $0 $220 $453 $698 $957 $1,230 $1,516 $1,817 $2,133 $2,463 $2,810 $3,176 $3,566 $3,979 $4,416 $4,878 $5,365 $5,878 $6,417 $6,983 $7,577 $8,198 $8,848 $9,527 $10,236 $10,976 $11,746 $12,549 $13,383 $14,251 $15,153 $16,090 $17,062 $18,069 $19,114 $20,196 $21,317 $22,477 $710 $316,436

THE CREVELING MACLENNAN COMPANY

Exhibit 2, Page 3 of 3

CERTIFICATE OF FILING I hereby certify that on July 1, 2013 I served a true copy of this PETITION FOR DIRECT REVIEW LEGISLATION (AMENDED), by United States Postal Service, certified mail, return receipt requested, on: Governor John Kitzhaber 160 State Capitol 900 Court Street Salem, Oregon 97301-4047 Office of the County Attorney Linn County Courthouse 104 SW Fourth Avenue, Room 123 Albany, OR 97321 Office of City Attorney City of Salem Legal Dept., Room 205 555 Liberty Street SE Salem, OR 97301 Superintendent Larry Didway Oregon City School District 1417 12th St, PO Box 2110 Oregon City, OR 7 5 Superintendent Jeff Rose Beaverton School District 16550 SW Merlo Road Beaverton, Oregon 97006 Superintendent Ron Wilkinson Bend School District 520 NW Wall Street Bend, OR 97701 Fire Chief Mike Duyck Tualatin Valley Fire & Rescue Command & Business Operations Center 11945 SW 70th Avenue Tigard Oregon 97223-9196 Attorney General Ellen Rosenblum Oregon Department of Justice 1162 Court Street NE Salem, OR 97301-4096 Office of the City Attorney City of Portland 1221 SW 4th Avenue, Ste 430 Portland, OR 97204 Board Chair Mark Greene Estacada School District 255 NE 6th Ave Estacada, OR 97023 Superintendent Nicole Albisu Ontario School District 195 SW Third Avenue Ontario, Oregon 97914 Superintendent Bill Rhoades West Linn School District 22210 SW Stafford Rd Tualatin, OR 7 2 Chair John Thomas Public Employees Retirement Board 11410 SW 68th Parkway PO Box 2127 Portland, OR 97208-2127

Page 1 - CERTIFICATE OF FILING AND SERVICE

CERTIFICATE OF FILING I certify that on July 1, 2013, I filed the original of this PETITION FOR DIRECT REVIEW LEGISLATION (AMENDED) with the State Court Administrator at this address:

State Court Administrator Supreme Court Building 1163 State Street Salem, OR 97301-2563 by electronic filing with the Appellate Court Administrator, Appellate Court Records Section, by using the courts electronic filing system pursuant to ORAP 16. DATED this 1st day of July, 2013.

s/Gregory A. Hartman Gregory A. Hartman, OSB 74128 Aruna A. Masih, OSB 97324 Of Attorneys for Petitioners

Page 2 - CERTIFICATE OF FILING AND SERVICE