Senator Tim Knopp (R-Bend) and Senator Betsy Johnson (D-Scappoose) responded to the Oregon Public Employee Retirement System (PERS) Board’s announcement of PERS rate increases for employers starting in 2017.
“As expected, the final PERS rate increases for 2017-19 will add significant costs to our school districts and local governments,” said Johnson. “School districts that are already struggling to make ends meet in their annual budgets will now have to factor in even greater PERS costs to the detriment of our students and teachers who need that money in the classroom. For example, Rainer School District will face 64 to 124 percent increases.”
Senators Johnson and Knopp are leading the Bipartisan PERS Solutions Workgroup to gather ideas from the public on potential constitutional PERS solutions that could protect school districts and local governments, while ensuring fairness for government workers and protecting retirees.
“We’re seeing substantial increases in PERS rates for our school districts that now have to find millions more in their budgets to pay for PERS,” said Knopp. “The Bend-La Pine School District will see rate increase as high as 64 percent, which could cost us 66 teachers. This is not only unsustainable in the future, but a significant burden for school districts now. That’s why we have to seriously consider any bipartisan, fair, and constitutional PERS reform option.”
Other school districts that will see considerable increases in PERS costs include the Beaverton School District (60 percent increase for Tier 1 and Tier 2 and a 95 percent increase for OPSRP general service); Salem-Keizer School District (55 percent increase for Tier 1 and Tier 2 and an 89 percent increase for OPSRP general service); and North Clackamas School District, which will have to absorb rate costs as high as 814 percent for OPSRP general service.
In addition to cost increases for school districts, state agency PERS rates will increase 35 percent for Tier 1 and Tier 2 employees and 47 percent for OPSRP general service, adding to the significant PERS burden local governments are facing to pay for retirement system costs.
900 State Street NE Salem, OR 97301
https://www.oregonlegislature.gov/knopp
Sen.TimKnopp@state.or.us
