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<p class="MsoNormal"><i>Sent on behalf of Budget and Resource Planning:</i><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Dear RU Budget Partners,<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">This email adjusts previous guidance regarding PERS Side Account repayment schedules.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In calendar year 2022 the state of Oregon made available to PERS employers a 25% match for establishing a PERS side account. Investing in the side account pre-pays some portion of the employers PERS liability and increases the system’s
overall funded status. After careful evaluation the University of Oregon elected to invest in a PERS side account as an investment from the internal bank recognizing that the 25% state match and anticipated investment returns would yield a substantial net
savings to the university. This side account will be drawn down over 20 years and will reduce the institutions annual PERS payments on behalf of employees. This investment was made during early FY23 and savings of 2.11% on PERS Tier I/II and OPSRP rates are
included in the FY24 blended OPE calculations. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The blended OPE rates for FY24 and beyond include savings from a PERS Side Account that the university established during FY23. In order to fund this investment a portion of the savings realized by units across campus must be used to repay
the Internal Bank. The savings generated by the PERS Side Account is in excess of this repayment amount, creating a net savings for all units because of this investment. All fund groups will have a new OPE like charge applied to all non-Student/GE salary and
wages except for <span style="color:#333333;background:white">grant funds, restricted gifts and plant funds</span>. The new OPE charge will be less than the savings generated from the PERS Side Account creating a net benefit to all impacted units. Because
the employee type composition is different for each Fund Type, the repayment percentage varies between Fund types. These are outlined in the table below:<o:p></o:p></p>
<table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="701" style="width:525.5pt;border-collapse:collapse">
<tbody>
<tr style="height:33.05pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:33.05pt">
<p class="MsoNormal"><b>Fund Type</b><o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:33.05pt">
<p class="MsoNormal"><b>Description</b><o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:33.05pt">
<p class="MsoNormal"><b>Bank Repayment</b><o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:33.05pt">
<p class="MsoNormal"><b>Projected FY24 Salary/Wages</b><o:p></o:p></p>
<p class="MsoNormal"><b>(AT 61-64)</b><o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:33.05pt">
<p class="MsoNormal"><b>Repay %</b><o:p></o:p></p>
</td>
</tr>
<tr style="height:18.1pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:18.1pt">
<p class="MsoNormal">11<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:18.1pt">
<p class="MsoNormal">E&G<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:18.1pt">
<p class="MsoNormal"> 3,064,946 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:18.1pt">
<p class="MsoNormal"> 243,750,702 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:18.1pt">
<p class="MsoNormal">1.26%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">12<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Designated Ops<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 116,457 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 7,419,962 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.57%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">13<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Service Center<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 262,206 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 13,890,256 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.89%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">15<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Internal Bank<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 2,752 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 240,319 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.15%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">21<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Housing<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 236,721 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 12,847,535 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.84%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">22<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Student Services<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 113,304 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 5,410,566 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">2.09%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">23<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Athletics<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 278,554 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 35,122,147 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">0.79%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">24<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Health Center<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 122,279 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 8,276,309 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.48%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">25<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Parking<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 8,139 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 472,968 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.72%<o:p></o:p></p>
</td>
</tr>
<tr style="height:16.8pt">
<td width="115" valign="bottom" style="width:85.9pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">29<o:p></o:p></p>
</td>
<td width="187" valign="bottom" style="width:140.15pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">Other Aux<o:p></o:p></p>
</td>
<td width="133" valign="bottom" style="width:100.1pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 7,345 <o:p></o:p></p>
</td>
<td width="163" valign="bottom" style="width:122.6pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal"> 389,853 <o:p></o:p></p>
</td>
<td width="102" valign="bottom" style="width:76.75pt;padding:.6pt .6pt 0in .6pt;height:16.8pt">
<p class="MsoNormal">1.88%<o:p></o:p></p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" align="center" style="text-align:center"><o:p> </o:p></p>
<p class="MsoNormal">Each month a JV will be executed charging each index with pay activity a rate by Fund Type beginning in FY24. For budgeting purposes please include this additional OPE in your FY24 planning, on account code 10906.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If a fund reaches its repayment type before the end of the fiscal year their charges will be stopped. If a fund does not reach its full repayment it will be charged the remaining balance.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Cheers<o:p></o:p></p>
<p class="MsoNormal">Stuart<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Stuart Laing</span><span style="font-size:10.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">Director, Budget and Resource Planning<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">5239 University of Oregon<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Thompson University Center<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">720 E 13<sup>th</sup> Ave, Suite 306<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Eugene, OR 97403-5239<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">541.346.5838 (voice)<o:p></o:p></span></p>
<p class="MsoNormal"><a href="mailto:slaing@uoregon.edu"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">slaing@uoregon.edu</span></a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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