Oregon’s public pension deficit reaches $25.3 billion

PORTLAND, Ore. (AP) — A new valuation by the actuary for Oregon’s public pension says the system’s deficit has ballooned to $25.3 billion, meaning higher costs will be coming.

According to the valuation by Milliman Inc., the growing deficit will cost schools and local and state government an additional $1.4 billion.

The Oregonian/Oregon Live reports the increase was likely caused in part by the Public Employees Retirement System Board’s decision to lower its investment return assumption from 7.5 percent to 7.2 percent, taking the deficit from $21.8 billion to $25.3 billion by the end of 2016.

The board has allowed employers to underfund the system by billions of dollars over two year periods.