A PERS reform proposal has been formally introduced in SB 1049. The plan was unveiled Friday afternoon by Speaker Kotek and Senate President Courtney, and public hearings on the bill will begin tonight.
PERS Solutions for Public Services has put together a cost analysis of the bill which you can view here.
SB 1049 includes the following components:
- Tier 1 and Tier 2 members, who are public employees who entered the PERS system before 2004, would have 2.5% of their salaries diverted from their individual retirement accounts into paying off the system’s debt.
- Workers hired 2004 or later (PERS Tier 3 and Tier 4), would face a lower diversion – 0.75% of their salaries.
- Public employees earning less than $30,000 a year would be exempted.
- A reduction in assumed interest rate for retirees who use the “money match” method of calculating their pension benefits.
- Most significantly, legislators seem to have abandoned efforts to raid SAIF to cover PERS liability, which is a good development for Oregon employers.