Oregon Gov. Ted Kulongoski was expected today to sign a bill restructuring the state’s $33 billion pension plan, a move that may cut its $16.43 billion long-term shortfall almost in half. The bill eliminates crediting investment earnings to employee accounts, including an 8% guaranteed return, until the deficit is eliminated. Also, beginning Jan. 1, a 6% employee contribution that is often paid by PERS employers will be deposited into a separate transition account.
The House also passed a bill that would set up a defined contribution plan for new employees. The bill is in the Senate General Government Committee.