JASON CONGER

STATE REPRESENTATIVE

HOUSE DISTRICT 54

FOR IMMEDIATE RELEASE September 28, 2012

Contact: Jordan Conger 541-633-9719

REP. CONGER TO INTRODUCE PERS REFORMS

AS PENSION SYSTEM COSTS CONTINUE TO GROW

SALEM— Rep. Jason Conger (R-Bend) today said he will introduce reforms to the Public Employee Retirement System (PERS) in 2013 after the state announced higher contribution rates for state agencies, local governments and Oregon school districts.  He said the Legislature must assure fiscal stability to school districts and help preserve school days, reduce class sizes and retain and hire more teaching positions.

The reforms, known as the School Savings Act, would help save school districts an estimated $500 million per biennium. The plan is supported by Bend/LaPine School District.

“We need to be doing all we can to protect funding for local classrooms,” Rep. Conger said.  “Every budget cycle, more than $1 billion will be taken out of our schools and put directly into the PERS fund. This is forcing schools to lay off hundreds of teachers; and ultimately the quality of education offered to our children is suffering for it. The School Savings Act includes common sense PERS reforms to significantly reduce the amount of money leaving our schools and ensures that the money stays where we need it the most – in classrooms.”

The PERS Board announced today a 6.25% employer rate increase for the Bend-La Pine School District, which comes out to approximately $4.1 million in increased costs annually. Over the past two budget cycles, the Bend-La Pine School Districts’ employer contributions have gone from $1.2 million annually to over $10 million.

The School Savings Act would help contain these costs through a number of specific reforms, including redirecting PERS Tier 1 and 2 contributions from Individual Account Programs and into the PERS Fund; reducing the PERS guaranteed rate of return for money match annuity crediting to six percent; phasing in a maximum PERS benefit cap, establishing a Rate Stabilization Reserve Fund, and more.

Once the reforms are adopted, Rep. Conger said the state government can reevaluate the PERS unfunded liability, lower contribution rates, and divert excess savings to the Rate Stabilization Reserve Fund to help stabilize pension costs in the future and help the state meet its obligations to public employees.

“These reforms would not affect existing retirees nor violate existing agreements with current and former public employees,” Rep. Conger said. “However, they will allow the Legislature and school districts to reinvest in our classrooms and our children’s education.”

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