Office of the

Chancellor

P.O. Box 3175

Eugene, OR 97403

http://www.ous.edu

January 26, 2004

Re: Oregon University System Optional Retirement Plan

Dear ORP Participant:

The OUS is deeply concerned about the effect of the state’s PERS rate buy-down on ORP employer contribution rates, and has been working to mitigate its effects since first learning of it in October 2003. Finding a solution or set of solutions to the problem is one of my highest priorities. Regrettably, the complexity of the problem and necessary involvement of multiple regulatory entities has required far longer than I had hoped or anticipated.

Please be assured that the Chancellor’s office is fully engaged in determining the applicable PERS rate for ORP participants. The OUS will adopt that rate or rates when we are assured that our revisions are correct. We will keep you posted on the progress.

Sincerely yours,

Richard Jarvis

Chancellor

RJ/dy