[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6266878,"mediaKeyId","3084619-27856d10c88aaaffee38a88313fc186f","parentId",3084619,"title","PERS warns many employer side accounts will expire in 2027, schools likely to see biggest rate changes","audioSeconds",607,"startMs",3697000,"endMs",4304000,"viewUrl","/Search/View?dp=1&key=3084619-27856d10c88aaaffee38a88313fc186f&start=3697&end=4304","thumbnailUrl","https://assets.pipeline.soar.com/3084619-27856d10c88aaaffee38a88313fc186f/thumbnail_3697000.jpg","articleUrl","/articles/6266878/Oregon/PERS-warns-many-employer-side-accounts-will-expire-in-2027-schools-likely-to-see-biggest-rate-changes","mediaUrl","https://secure.pipeline.soar.com/6266878-414792f785f20f584c089888d6fee6a5/orig.mp4?Expires=1770440508&Signature=gZwIrSMOH2SDkWUdhZ~7-03yQBo8IIiP50Pu5tsTayM7ok6CfbGpVRlq4DvzuhnOC8GJm4rnxHkXJNDUc~PnJq~9pWWiZcmbKKMo5AkDbDi6pwol0YcTN-LrRb1XFF7ygU6dNuGm8lFhqnCu22EdOqTe84fNzIytXMpLP3GyRCUdwz-AkwTfvojxKbGajIDpnQ9EWyxMVv6AHHGM0dbt8B1g8iU-aCmRPxFzTmB99HFz6WwNZoUNSvjNv2jPWzucAaCRjQCRw6Zt92ddbgSd1X0jldqLUy5ndk1blQ8irhS6syMvkR28K0uAO3hxyNHTHcJUBxJSzd3X-rBORo6WGQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Oregon Legislature","date","2025-04-22T00:00:00Z","article","PERS actuaries told the General Government Subcommittee on April 22 that a large number of employer side accounts — prepaid arrangements that offset contribution rates — will expire in 2027 and that school districts and community colleges account for much of the exposure.

\"Out of about 350 total side accounts, more than half, 181, are expiring in the next couple of years,\" Jake Winship, actuarial manager at PERS, said. Winship explained that side accounts are an irrevocable part of the PERS trust whose benefit accrues exclusively to the employer that makes the deposit; they are typically amortized over a 20‑year period and treated as offsets to employer contribution rates.

Winship said employers established side accounts using several tools, including the Employer Incentive Fund and pension obligation bonds. Many pension obligation bonds issued in the early 2000s are scheduled to retire in 2027; where bonds expire and side accounts expire at different times, employers can experience cash‑flow pressure because pension costs and debt service are timed differently.

PERS presented a breakdown showing the largest counts and highest offset percentages in the 2027 expirations were concentrated in school districts (by count and by projected percent‑of‑payroll offset). Winship said PERS will follow a practice of changing contribution rates only at the start of a biennium unless necessary, because ad hoc changes are disruptive to employers and the PERS systems that calculate rates.

To reduce abrupt rate volatility, Winship described an option under development: PERS would calculate each employer’s 12/31/26 balance (plus 2026 earnings, which will be known in April 2027) and notify employers; employers with a remaining balance above a threshold (PERS cited a proposed $250,000 minimum) would be offered the opportunity to reestablish a new side account and set an offset effective Jan. 1, 2028. Employers that do not reestablish a side account would receive credits and the remaining balance would be distributed on scheduled dates (June 30, 2027 and Nov. 1, 2027), per PERS’ described process.

Winship emphasized legal and operational constraints: side accounts are trust assets; PERS must avoid crediting employers beyond actual balance and earnings to prevent trust or invoicing complications. He also noted administrative work steps the agency is developing with fund accounting staff to prevent post‑close transactions on fully distributed side accounts.

Richard Horford, the agency chief financial officer, introduced the item to the committee and thanked Winship; the subcommittee had no immediate questions. PERS said it will provide employers with balances and an opt‑in process to reestablish offsets where feasible, and urged employers to engage with the agency as the 2027 expirations approach.","mediaType","Video","parentTitle","Joint Committee On Ways and Means Subcommittee On General Government 04/22/2025 8:00 AM","oneSentenceSummary","PERS actuaries said more than half of about 350 employer side accounts will expire in the next few years, with 181 expiring around 2027; school districts comprise a large share of the high‑impact expirations and employers must notify PERS by May 2027 to reestablish offsets under a proposed process.","taxTitle","General Government, Ways and Means, Joint, Committees, Legislative, Oregon","taxId",18636,"location","Oregon","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6266883,"PERS modernization: agency resets program, Gartner flags risks and options analysis due in June",2239,1345000,3584000,"/Search/View?dp=1&key=3084619-27856d10c88aaaffee38a88313fc186f&start=1345&end=3584","https://assets.pipeline.soar.com/3084619-27856d10c88aaaffee38a88313fc186f/thumbnail_1345000.jpg","/articles/6266883/Oregon/PERS-modernization-agency-resets-program-Gartner-flags-risks-and-options-analysis-due-in-June","https://secure.pipeline.soar.com/6266883-d0013e23db8db0dbffd6ab865ca01a07/orig.mp4?Expires=1770440508&Signature=B9Q~IOfkbdtMFv~LQ8TSue~LUjsb83vYYZyoh0KK2CHMsJEaxg3axPz-NCffnFjKEjaH-26Bp~9vhkQ17X7yIRyXVlzic5HoSWrNC6R4pTkzc~HJcBKhiq7-zKfvV1V9ULOr6SSAzQ8ywqo-otS3ZJ4dU6-X80w2hUEYD3vdH758EEKqt0AeDTvffjzG5DpJKQHlu9dWS3B-51ofy8EX28g1udUaI3U9E93D4vRZqyDUipGk2PdXHBB6LrYKE95MqGr9k7QBQHQPORJ7jrICtxasjp7Q1asPo4BOiTYCVliVV-6OktUEwv9jBdN4mcn9kCFMAduazGU33JTAmGANLQ__&Key-Pair-Id=KUT5TJCACFTXG","Deputy Director Yvette Elledge Rhodes and newly onboarded modernization director Christie Ivers told the General Government Subcommittee on April 22 that PERS is resetting its modernization program and expects an options analysis from Gartner in June to guide a solutions analysis.

\"We are actually resetting the program,\" Elledge Rhodes said, describing refreshed governance and a one‑year modernization roadmap completed April 11. Christie Ivers, who said she has been in the job about two months, told the committee she is building foundational documents, reestablishing project plans and working to reduce risks identified by oversight bodies.

Ivers summarized risks Gartner and Enterprise Information Services (EIS) flagged: an incomplete solutions analysis, insufficient multi‑year budget detail, competing priorities and constrained resources, and telephony work that may not deliver core functionality by the end of the current biennium. She said Gartner’s options decision framework will present alternatives in June that the agency will use to complete a solutions analysis.

Gartner’s materials, summarized by PERS, lay out four components for consideration: a continuous technology‑readiness and legacy stabilization effort (to run in parallel with other work), rebuilding or modernizing the current J Clarity pension administration system, building a new custom solution, or buying a commercial‑off‑the‑shelf (COTS) product. Ivers said agency staff view modularization — breaking the existing entangled architecture into smaller components — as an important path regardless of which option is chosen.

Ivers acknowledged the agency lost a modernization director and had an extended vacancy; she said recent governance changes and the onboarding of contractors and consultants have reduced program risk. She presented a one‑year budget that would start eight projects (modernization planning, telephony modernization, integration platform, data cleaning, DevOps, hazardous positions build‑out, UI/UX and identity/access management) and estimated a 2025–27 request totaling about $24.8 million (including personnel and consulting services). Ivers said the original policy option package had requested roughly $34 million and the updated package reduces that ask by about $9.2 million.

On the telephony project, Ivers said user acceptance testing uncovered more defects than anticipated, pushing the implementation timeline into question and raising the risk that phase 1 may not go live this biennium. She said phase 2 and 3 are expected in the next biennium.

Ivers and Elledge Rhodes emphasized that PERS must run two tracks in parallel: continue to care for the legacy systems while building or procuring the modern system. \"We will be following best practices,\" Ivers said, adding the program’s purpose is to improve service for members and employers.

The agency framed overall program health as in an early, indeterminate state pending completion of the Gartner analysis and the solutions analysis that follows. PERS asked the committee for continued oversight and said it will return with more detailed plans and a two‑year roadmap when the solutions analysis is complete.","PERS reported a reset of its modernization program, a one‑year roadmap and a solutions analysis due in June; Gartner described four options and warned the full modernization could take 8–12 years, while PERS seeks $24.8 million in upcoming budget requests.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6266887,"PERS says major 2019 pension reforms implemented; agency outlines costs and effects",704,71000,775000,"/Search/View?dp=1&key=3084619-27856d10c88aaaffee38a88313fc186f&start=71&end=775","https://assets.pipeline.soar.com/3084619-27856d10c88aaaffee38a88313fc186f/thumbnail_71000.jpg","/articles/6266887/Oregon/PERS-says-major-2019-pension-reforms-implemented-agency-outlines-costs-and-effects","https://secure.pipeline.soar.com/6266887-f68d8dc997be090a56d41c32e63af291/orig.mp4?Expires=1770440508&Signature=TFxZ3P4MP1MMQN1yY1bMyqegpD6mFdqdcDejPU5EKG0Iq9s9pVf5NPcvWGM~G4-9pgyUQ8BNbrMv-rD~Rqq6HXguUMHz4I5AwCMwA3SgauJ3tfNBz98I6u5Ue6tAl81Fd-9DuXx-laN92-Fk8clyMmtkxAYkNUhAKp2UPVyWbQXzA0ow5P69WtlZVZv4kymc2cMaCdTej5V6GFKPmjglwY4Yfx7EqPzxzTujq5s~O0yiZ9asNBgNhInar9gD9RCMBZD~iJIolXa~lLS8lYMS03yWEVw-BHPDyide10S8dEN3Wqq1xq277WDGyGYCEwmxCSUqlvJr9i5RrKvHMginOA__&Key-Pair-Id=KUT5TJCACFTXG","The Public Employees Retirement System told the General Government Subcommittee of Ways and Means on April 22 that implementation of the package of changes enacted in Senate Bill 1049 (2019) is complete and described how the work was organized and funded.

PERS Director Kevin Olynyk said the agency divided SB 1049 into multiple concurrent projects — including employer incentives, salary caps for benefit calculations, changes to work-after-retirement rules, member redirects to fund defined benefits, and the creation of individual account program (IAP) target-date funds — and ran them as parallel work streams with project- and program-level oversight. \"As of last Thursday night, we did our final implementation. So all the implementations with respect to Senate Bill 10 49 are complete,\" he said.

The agency told the subcommittee the bill produced several discrete streams of work. Among them: employer incentive funds that matched employer deposits into side accounts, salary limits that change which earnings count toward final average salary, removal of some limits on work after retirement (with employers effectively paying a proxy contribution on returning employees), and member IAP choice with 10 target‑date investment funds. The agency also reamortized unfunded actuarial liabilities for Tier 1 and Tier 2 over a 22‑year period, which the agency described as a deferral of payments analogous to stretching a mortgage to lower near‑term payments but shift costs forward.

PERS presented a program-level funding summary showing roughly $68,000,000 in external allocations for the various projects and about $8,800,000 in internal resource costs, yielding a stated total of approximately $77,780,000 for the SB 1049 implementation work (director Olynyk; slide referenced). The agency also reported that about $649,000,000 flowed into side accounts as a result of the employer incentive fund and a $100,000,000 General Fund contribution in 2019.

On employer contribution rates, the agency presented before/after estimates from external actuaries and staff updates. Olynyk said reamortization of Tier 1 and Tier 2 liabilities produced the largest single effect on employer rates; other elements—work after retirement and salary limits—had smaller effects. He said the member redirect impact measured about a 1.0 reduction (down from 1.2 in earlier estimates) because the composition of active members shifted toward those in OPSRP, which altered the weighted offsets.

Representative Reschke pressed whether all the subprojects were foreseen when the bill passed; the director said the work became immediately apparent as complex and was managed via parallel project teams, project managers and shifting resources to meet implementation timelines.

The agency said Gartner provided independent quality assurance and quarterly reviews; a final lessons‑learned report was pending. Director Olynyk and staff said they would apply lessons from SB 1049 to upcoming work tied to House Bill 4045 and the PERS modernization program.

Less critical details include that some implementation tasks addressed general ledger and unfunded actuarial liability accounting flows, and that internal staff effort accounted for roughly 130,000 hours of work (agency estimate).","The Public Employees Retirement System told the General Government Subcommittee that implementation of Senate Bill 1049 (2019) is complete and summarized the program elements, costs (about $77.8 million total), and how the changes affected employer contribution rates.","actionData","errors"]

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PERS warns many employer side accounts will expire in 2027, schools likely to see biggest rate changes

PERS modernization: agency resets program, Gartner flags risks and options analysis due in June

PERS says major 2019 pension reforms implemented; agency outlines costs and effects