Subcommittee hears PERS budget overview, modernization costs and growing contribution pressures

The Joint Committee on Ways and Means Subcommittee on General Government met Feb. 17, 2025, for an informational briefing on Senate Bill 5534, the Public Employees Retirement System primary budget bill and related policy and operational work for the 2025–27 biennium. Presenters outlined the governor’s proposed investments in modernization, current funding metrics, and drivers of rising employer contribution rates.

Why it matters: PERS administers retirement benefits for roughly 95% of Oregon public employees and holds more than $100 billion across its trusts. Changes in investment returns, the scheduled drawdown of employer side accounts, payroll growth and statutory adjustments affect employer budget obligations across state agencies, school districts and local governments.

Courtney Rogers, chief financial officer in the Department of Administrative Services Chief Financial Office, summarized the governor’s recommended budget for PERS and said the proposal “includes targeted investments to modernize systems, enhance operations, and strengthen compliance and risk management.” She told the committee the largest single request in the proposal is $34 million “for modernizing the core…