Oregon PERS seeks $60.8 million and 60 FTEs for implementation and system modernization, agency tells subcommittee

Oregon Public Employees Retirement System officials told the General Government Subcommittee on Wednesday, Feb. 19, that the governor's budget includes requests totaling $60,800,000 and 60 positions to implement recent legislative changes and begin a multi-year modernization of PERS systems.

The funding request covers a series of policy option packages (POPs) the agency said are needed to automate recent statutory changes, hire staff to clear backlogs and manage new technical operations, and begin replacing or modernizing PERS' aging IT infrastructure. Agency leaders summarized the packages and answered questions from committee members during the informational hearing.

Why it matters: PERS officials said recent laws and administrative changes have added complexity and manual work across the pension system. Agency witnesses told lawmakers that without additional staff and technical projects, current backlogs for retiree payments and appeals are likely to persist, and the agency will struggle to implement future statutory deadlines without additional resources.

What the agency requested and why

- HB 4045 implementation and automation: PERS described a one-time implementation step taken after passage of House Bill 4045 (2024) that required an immediate manual process to implement a change to police-and-fire retirement age (effective Jan. 1, 2025). The agency asked for a POP to automate that process and fund two Office Specialist 2 positions and a retirement counselor; the package includes a roughly $2.2 million service-and-supplies line to pay consultants and integration work. Agency staff said the counselor…