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The DOJ legal analysis addresses that subject head on. "As the governor has said before, he believes there is a feasible path" to make changes to PERS, said Tim Raphael, a spokesman for Kitzhaber. "The governor has shared this with legislative leadership because he thinks it's important for them to have when considering reforms to PERS. "Public employee unions, meanwhile, are trying to convince legislators that the COLA change is illegal. Greg Hartman, a lawyer for the PERS Coalition of public employees and their unions, called the DOJ memo "more speculation than legal opinion.

at every opportunity. If legislative leaders don't like them, they have to find budget cuts elsewhere. It remains to be seen how far lawmakers will go. Democrats control both chambers of the Legislature and have traditionally been reluctant to consider PERS reforms. One of their regular rationales for killing PERS reform bills without debate is that further reforms will be shot down by the courts.

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ublic employee retirees, according to a legal analysis prepared by the Oregon Department of Justice. The 10 page memo was prepared for the governor's staff by Keith Kutler, the attorney in charge of the DOJ's Tax Nike Roshe Men White Finance Section, and is making the rounds among legislative leaders at the capitol. In it, Kutler outlines three legal arguments that support a COLA cap if the Legislature enacts one, and if, as expected, public employees sue to overturn it. But he stops far short of saying the governor's main proposal to reform the Oregon Public Employee Retirement System is a legal slam dunk. "This is an issue on which no guarantees are possible," Kutler wrote. "The only way to know whether the Supreme Court will uphold a modification to the COLA is for the legislature to enact a change and for someone to challenge it.