REP. MIKE MCLANE
HOUSE DISTRICT 55
For Immediate Release
Wednesday, October 2, 2013
Contact: Kevin Curry, 503-986-1351
OREGON HOUSE PASSES PUBLIC EMPLOYEES RETIREMENT SYSTEM
REFORMS SAVING AN ADDITIONAL $1.9 BILLION LONG-TERM
SALEM, OR – The Oregon House of Representatives voted today to implement additional measures to control the growing cost of the Public Employees Retirement System. The bill, SB 861, changes the cost of living adjustment to benefits. It also includes temporary supplemental payments for low income PERS retirees through 2019.
“With an unfunded liability of around $13.2 billion, the Public Employees Retirement System is a program on tenuous financial ground. We must act to fix PERS,” said Rep. Mike McLane (R – Powell Butte) the House Republican Leader. “While this measure does not solve the problem, it does provide an additional reduction of about $1.9 billion to the unfunded liability, which is a step in the right direction.”
In a separate bill, SB 862, the Oregon House passed three new provisions to provide additional accountability to the system. First, the bill removes the conflict of interest related to PERS for future legislators by placing them in a 401(k) plan instead of PERS. Second, it makes sure a PERS member’s final salary is not “spiked” by additional benefits like health insurance payments. Finally, it permits criminal restitution judgments to attach PERS benefits to compensate victims of felonies.