News | 04.19.19
Oregon Governor Proposes Employee Contributions to Bolster Pension Fund
Oregon Gov. Kate Brown has released a proposal on how to address the shortfall in the state's Public Employees Retirement Fund, with a plan including employee contributions of 1.5 percent or 3 percent—depending on when the employee was hired. Employee contributions kick in after the first $20,000 of salary. Currently, state employees who started work after Jan. 1, 2004, contribute 6 percent of pay into an individual account program that can be rolled over to an IRA or taken as payments over various time periods. Under Brown's proposal, the new employee contribution will be deducted from the individual account program. Employees' contributions would end when the pension plan is fully funded or after 14 years, whichever comes first. After that, if at any point in the future the funded status again falls below 90 percent, employee contributions would restart at 3 percent systemwide.
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