Following up on last week’s article: What’s Happening with PERS?, the Legislature expedited movement on Senate Bill 1049 A, the Public Employee Retirement (PERS) reform bill, after introducing and adopting a complex amendment with funding.

The previously considered proposal (-2 amendment) for PERS reform broadly included the following policies:

  1. Redirects the Individual Account Program (IAP), and restores IAP once Unfunded Actuarial Liability (UAL) is funded at 90 percent;
  2. Reamortization of Tier One and Two UAL over a 22-year period;
  3. Creates a work after retirement option for PERS retirees to pay into the system while working and create cost savings;
  4. Changes annuitization rate for Money Match; and
  5. Changes the final average salary limit.

The ultimate proposal (-8 amendment) adopted by the full Joint Committee on Ways and Means on a 15-5 vote on May 21 broadly:

  1. Changes system financing:
    • Reamortization of Tier One and Two UAL over a 22-year period;
    • Adds dedicated net lottery revenues from sports betting games to the Employer Incentive Fund; and
    • Appropriates $100 million in General Fund dollars to the Employer Incentive Fund.
  2. Modifies benefits:
    • Redirects the Individual Account Program (IAP),  and restores IAP once Unfunded Actuarial Liability (UAL) is funded at 90 percent; and
    • Changes the final average salary limit to $195,000 and indexes the cap to inflation.
  3. Creates a work after retirement option for PERS retirees to pay into the system while working and sunsets the program in 2025.
  4. Sets an expedited legal review by the Oregon Supreme Court.

To view a full Legislative Fiscal Office review of the policy, click here.

The bill passed the Senate floor on a 16-12 vote May 23, and now moves to the House floor for a vote.

Contributed by: Megan Chuinard | Public Affairs Associate