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:
- Redirects the Individual Account Program (IAP), and restores IAP once Unfunded Actuarial Liability (UAL) is funded at 90 percent;
- Reamortization of Tier One and Two UAL over a 22-year period;
- Creates a work after retirement option for PERS retirees to pay into the system while working and create cost savings;
- Changes annuitization rate for Money Match; and
- 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:
- 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.
- 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.
- Creates a work after retirement option for PERS retirees to pay into the system while working and sunsets the program in 2025.
- 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