Issue Position: PERS

Issue Position

It is important for us to honor the retirement contracts we have made with our police officers, fire fighters, teachers, and other public servants. However, the way Oregon is currently fulfilling those commitments is unsustainable. Now is the time to create a long term, fiscally responsible solution to the Public Employees Retirement System (PERS). Despite previous reforms that were implemented, the financial obligation of PERS continues to increase.

The budgets of local governments and school districts will eventually be overburdened by their PERS commitments. Within the next decade, Oregon will be faced with the difficult decision between paying its retirement obligations or paying for its invaluable public employees.

Instead, let's have the courage to repair this issue and avoid having to make that choice. Two possible solutions to the PERS situation are:

Move to a defined contribution plan. This system has saved the retirement fund of the employees of the TriMet transportation system. We have proof that this system works and should follow its example in the rest of the state.

Offer current retirees an option to cash out their accounts. This would allow them to make private investments and grow their retirement fund in a personalized way. Once a lump-sum payment is made to a retiree under this plan, the state's financial obligation to them would end.

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