Oregon Public Employees Retirement Fund, Salem, will decide on Feb. 24 whether to invest most of its $1.9 billion in reserve funds with existing money managers, or retain all or some of the money, said David Crosley, communications director.
Staff of the $48 billion fund recommended redeploying all but $100 million of the system's $1.4 billion contingency reserve and its entire $460 million capital preservation reserve - money used to offset gains and losses of invested capital - to existing money managers, according to a board presentation.
The contingency reserve was money the system had set aside until the courts decided on challenges to 2003 pension reforms. Last year, two Oregon Supreme Court decisions approved the 2003 law that capped investment earnings for certain workers' accounts at 8% per year. Workers who joined PERS before 1996 were guaranteed 8% annual investment returns, and a 2002 ruling faulted the system for not keeping enough in reserve to cover the guarantee.