2019 Legislative Solutions2019-05-14T08:15:02-08:00

2019 Legislative Solutions

PERS Solutions Statement on Legislature’s Proposed PERS Reform Package

DOWNLOAD: Projected Savings for Services from PERS Reform Packages

Senate Bill 148 Employee Choice & Shared Responsibility Act

By far the largest ongoing cost to employers and taxpayers occurred when the legislature shifted employee contributions from the pension plan to a supplemental retirement savings plan. As a result, Oregon is only state in the country in which rank-and-file employees do not contribute to their own defined benefit pension plan. (Some states have non-contributory plans for some employees, and, in Oregon, judges do contribute to their pension plan.)

The first step to reducing the cost of the system for public employers and taxpayers is to restore employee contributions to the pension plan.

OUR LEGISLATION

Modeled after OHSU’s successful effort that instituted cost-sharing by giving employees a choice between a defined benefits pension or an individual savings plan, this approach will significantly reduce costs for taxpayers going forward

This bill:

  • Reinstates employee cost sharing (6%) in all PERS pension plans
  • Expands the current IAP into a 12% 401(K)-Style Defined Contribution Plan, 6% paid by employers and 6% paid be employees
  • Allows employees to choose the pension or defined contribution plan, but not both.

Click to view this bill on the Oregon Legislative Information system (OLIS) >>>


OTHER 2019 LEGISLATIVE STRATEGIES

1. Reducing Costs going forward

2019 Legislation
(click to view)

Brief Description

SB 531 Caps eligible PERS salary at $100,000. Directs IAP contributions to support pension plans.
SB 532 Reduces required IAP contribution from 6% to 3%
 SB 533 Redirects employee contributions to IAP to support pension plans..
 SB 641 Employees hired after effective date are hired under IAP. 10% employer contribution, maximum 2% employee match.

2. Managing Remaining Pension Liability

2019 Legislation
(click to view)

Brief Description

SB 75 Clarifies rules for state matching funds for schools and local governments’ UAL payments.
HB 2288 Direct lottery funds to buy down the UAL.
HB 5032 $100 General Fund for School Districts Unfunded Liability Fund