by Tim Nesbitt
Interim Executive Director, PERS Solutions
March 8, 2019
At a hearing of the Senate Workforce Committee this week, PERS staff testified that applying our “work back/payback” proposal to reform what’s known as “double dipping” in Oregon’s public jurisdictions would generate $100 million in debt reduction for PERS over the next two years. Also, that total would climb rapidly in future years, as PERS costs rise for employers.
“Work back/Pay back” would reform the current practice for the re-employment of retirees, which lets districts and retirees avoid contributing to the PERS system, while other positions bear the cost of paying off the system’s unfunded liabilities. Reforming that practice would also give older employees the opportunity to retire early, keep working, draw a pension and a salary and contribute to paying off the pension fund’s liabilities. That’s the “pay back” feature of our plan.
Watch Tim Nesbitt’s remarks from the March 5 hearing: