Oregon Lawmakers Consider Changes to Retirement Benefits

Oregon legislators are currently focused on reducing federal health and food assistance programs in Salem.

Simultaneously, some members of Congress are pushing to enhance retirement benefits for particular civil servants.

One significant proposal, Senate Bill 1569, aims to boost the retirement allowances for juvenile court counselors, police fingerprinting technicians, and deputy attorneys general dealing with criminal cases. This adjustment would modify the definition of “police” within the Oregon Public Employees Retirement System.

This distinction is crucial since police officers and firefighters can retire earlier with more substantial pensions. Their roles are classified as riskier compared to civilian jobs.

According to analysts from the Public Employees Retirement System (PERS), the changes proposed could result in a 20% increase in pension benefits for affected employees. Notably, members who retired in 2024 received an average pension of about $48,807.

The total financial implications of SB 1569 remain uncertain, as PERS and local governments are still determining the potential rise in employee benefits if the bill is approved. Early estimates suggest there are at least 700 individuals, possibly more, who would qualify.

Over the past twenty years, discussions around cutting pension benefits for public workers have surfaced periodically. Lawmakers argue that earlier commitments resulted in overly generous pension promises, leading to an underfunded system. As noted in PERS’ latest annual report, the system’s assets cover only 77 cents for every dollar owed, resulting in a $24.8 billion shortfall.

Despite these financial concerns, there’s been a recent trend of lawmakers increasing benefits once again.

In 2023, the Oregonian reported that officials had reclassified many assistant district attorneys as police personnel. The following year, the definition of police was broadened to include elected district attorneys as well as Oregon State Police evidence technicians and forensic scientists.

Additionally, there were calls for enhanced pensions for 911 operators and staff at the Oregon State Hospital who provide patient care.

However, PERS officials expressed concerns in 2024 that designating hospital and 911 workers as police could threaten the PERS system’s legal structure. To address this, lawmakers established a new classification of “hazardous positions,” enabling these groups to receive similar retirement benefits as police and firefighters, according to Willamette Week.

Governor Tina Kotek considered the 2024 PERS expansion satisfactory, encouraging lawmakers to “pause any substantive benefit changes to PERS for now.”

Now, as discussions progress, public employees are advocating for this reclassification. During a recent Senate Labor and Business Committee meeting, many shared their job challenges and the idea of “benefits equity.”

A fingerprinting technician from the Portland Police Department raised questions about why technicians from the Oregon State Police should have better retirement benefits. He pointed out disparities in pay for deputy state attorneys general working on criminal cases compared to their county counterparts.

According to SB 1569, various technical employees in county, city, and university police departments would see improved benefits, in addition to juvenile court counselors and “enforcement protection officers” within the Oregon military.

However, opposition came from two public employer organizations: the Oregon League of Cities and the Oregon Association of Counties. Their representatives noted that local government agencies are already paying a significant portion—over 23% of salaries—toward PERS costs, at a historically high rate. Some institutions are even contributing a third of their salaries for this purpose, as pointed out by Scott Winkels from the League of Cities.

“Now is not the appropriate time for an increase,” Winkels cautioned.

Addressing concerns regarding the bill’s timing, state Senator Chris Gorsek, a lead sponsor, indicated it would ultimately be up to the Legislature’s Joint Committee on Ways and Means to assess the merits of SB 1569.

“That’s where we determine our boundaries,” Gorsek remarked. “That’s how the process functions.”

Joe Beisler, executive director of the American Federation of State, County and Municipal Employees, emphasized fairness for the approximately 200 members who would benefit from the bill. He asserted that there are many workers outside the police and fire sectors performing equally hazardous jobs.

When questioned about pursuing benefits during a session primarily focused on budget reductions, Beisler responded, “100% of issues not addressed are lost.”

Regarding the governor’s request to pause PERS changes, her spokesperson stated that Kotek wouldn’t commit to signing or vetoing SB 1569 if it passes.

The bill is set for an information hearing and possible work session on February 9th at 1:00 p.m.