The Current Plan, Oregon Public Service Retirement Plan in Review: Part 1

The Oregon Public Employees Retirement System (PERS) has been one of the most controversial issues for the state of Oregon since Governor Snell signed House Bill 344 into law effective July 1, 1946. Since the market downturn in 2008, the system is faced with a potential Unfunded Account Liability (UAL) of over $14 billion of which 99%[1] of the deficit is attributable to Tier 1 and Tier 2 program liabilities. What’s worse is there are approximately 150,000[2] vested Tier 1 and 2 employees, as of September 30, 2010, that have not begun collecting benefits and that’s in addition to the already 110,000 active retirees in Tier 1.

Oregon can’t ignore the weight of the PERS program on state employers and taxpayers.

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