PORTLAND, Ore. (AP) — Oregon lawmakers passed a bill establishing two funds to help schools and other public employers cover their rising public pension costs.
The Oregonian/OregonLive reports the bill in part incentivizes the costs to make extra, one-time contributions to pay down unfunded liabilities faster.
The bill is the product of a task force that Gov. Kate Brown created last year. The task force was dealt the responsibility of looking for ways to reduce the state’s $25 billion in unfunded pension liabilities by $5 billion.
The bill would redirect a portion of state revenues to establish two new funds. The first would receive most of the money, which would be deposited with PERS in a pooled “side account” for school districts.
The second stream of money would create a fund to incentivize all public employers to tap their own reserves and make extra one-time contributions to the pension fund.