OPINION

Two Views: Services Oregonians value and rely on will suffer without bipartisan PERS solutions

Sen. Tim Knopp, R-Bend
Guest Opinion

Oregon has a pension crisis. 

It's an unavoidable truth, yet solutions are all too often overlooked, and real reform keeps being kicked down the road.

PERS reform is necessary, and not reforming PERS will be detrimental to all Oregonians.

Sen. Tim Knopp, R-Bend

Every session the Legislature is faced with tax increases, but with any revenue increase comes the fact that public schools, universities, state agencies and local governments are facing larger increases in PERS payments. PERS obligations always have first claim on any new revenue, leaving less money to use on vital services.

Without a bipartisan effort to find real PERS solutions that are fair to taxpayers and public employees, the services Oregonians value and rely on will suffer.

Another view on PERS reform:Cuts to PERS would have harmful consequences to our community

Without PERS reform Oregon will see:

  • Fewer teachers, shorter school years, bigger class sizes and fewer resources in our schools.
  • Fewer firefighters, police officers and emergency medical services in our communities.
  • Fewer community resources to support Oregonians in need and to improve infrastructure.
  • More of our taxes going to pay down PERS rather than to pay for services Oregonians rely on.
  • More tax increases to try to cover the constantly growing PERS unfunded liability.

According to an analysis released by the Oregon Business Council, Oregon's pension crisis will use a quarter of the proposed $2 billion tax increase over the next two-year budget cycle, and far more in future years.

If Oregon is serious about improving our public education system, about increasing public safety, and about supporting and improving communities across the state, we must start with PERS and structural spending reform.

Oregon’s problems cannot be addressed until the Legislature stops ducking this issue.

Sen. Tim Knopp, R-Bend, is sponsoring several PERS bills during the 2019 Legislature, including: SB 148 would require PERS members to choose between participating in the traditional defined pension program or an alternative more like a 401(k); SB 149 directs the PERS board to study options for allowing retired members to be reemployed by a participating public employer and set up an early retirement program for eligible employees that could help reduce the unfunded liability; SB 531 would cap at $100,000 the annual salary used to calculate final average salary and change final average salary to five years from three, among other changes; SB 532 would require employees and employers to each contribute 3 percent of salary to employees' accounts. Knopp can be  reached at Sen.TimKnopp@oregonlegislature.gov

Another Opinion:All Oregonians must compel lawmakers to act on PERS reform

New board leader:CFO with no pension experience to lead PERS Board

PERS Liability:PERS task force offers ways to reduce unfunded liability by $5B in final report