Time for Pension Reform in Oregon

Oregon House of Representatives

900 Court Street NE

Salem, Oregon 97301

Dear Legislator:

In the coming days you will vote on HB 2003, a bill that would reform the Oregon Public Employees Retirement System (PERS). HB 2003 would save $667 million in employer costs and reduce the state’s unfunded PERS’ actuarial liability by $6.6 billion. On behalf of the 11,000 members of Oregon Citizens for a Sound Economy (OR CSE), I urge you to support this necessary proposal.

Under HB 2003, employees and retirees may keep all accumulated benefits to date. HB 2003, however, simply addresses the over-crediting of the retirement accounts during the1990s by restructuring the crediting and reserving policy for Tier One accounts to follow the original intent of PERS.

During the 1990s, retirement accounts at times were credited 20 percent rather than the originally intended 8 percent. This fact threatens the fiscal health of the state and has created a PERS unfunded liability that is over $16 billion. Without immediate reform, Oregon taxpayers will be responsible for an enormous deficit that will require either tremendous cuts in government programs or debilitating tax increases. This is why PERS reform is one of the most pressing issues the state faces.

Oregon’s public employees have one of the best retirement systems in the nation. OR CSE does not endorse eliminating current or future retirees benefits accrued during the 1990s; however, OR CSE believes and strongly advocates that taxpayers’ interests should be protected. HB 2003 is a sensible reform measure that protects PERS participants but defends taxpayers by making the necessary changes to ensure that future actuarial liabilities are reduced and eventually eliminated.

HB 2003 is a sensible reform measure and on behalf of OR CSE’s members, I urge you to support this bill.

Sincerely,

Russ Walker

Northwest Regional Director

CSE