Task force struggles to cut $5B from Oregon pension costs

SALEM, Ore. – A special task force convened by Gov. Kate Brown is deciding how to cut $5 billion from the Oregon Public Employees Retirement System’s unfunded liability without hurting the retirement benefits of government workers who draw from it.

The Register Guard reported that options discussed Monday include selling some state lands and partially or wholly privatizing state agencies, with the proceeds going to the pension liability.

Those agencies could include the Oregon Liquor Control Commission, the state workers’ compensation agency or even Oregon Health & Science University.

The state has $22 billion in unfunded pension liability.

Pension costs for many Oregon public agencies are increasing by 20 percent this year.

Similar hikes are expected again in 2019 and in 2021, despite strong stock market returns.