An Oregon House committee approved a Republican-sponsored bill to offer a defined contribution plan for new state and local employees. The bill is an effort to shore up the $33 billion Oregon Public Employees Retirement Fund, Salem, which has a $16.43 billion long-term shortfall. Committee members rejected a hybrid program.
The defined contribution proposal would offer a 3% contribution to all employees, regardless of participant contribution, plus a 3% matching contribution. Fire and police employees would receive an employer contribution of 7.15%. The Oregon Investment Council would administer the plan, determining the asset classes of the investment options and selecting the money managers after issuing RFPs.
The bill goes to the House floor, where the Democrats next week are expected to offer a minority report proposing a hybrid plan.