Portland police retirements this year have set a record, a city public safety pension official said.
Portland’s Fire & Police Disability and Retirement Fund reported a significant increase in retirements, with 64 retirements so far this fiscal year. Stacy Jones, the fund’s pension manager, called it “the most we’ve ever had,” with police accounting for the "massive'' spike in recent years.
In the 2018-19 fiscal year, 47 officers retired, compared to 17 firefighters.
There were a total of 167 police and firefighter retirements in the last five years, nearly double the 86 retirements in the prior five years, Jones said.
Jones cited a number of potential factors for the police retirements: a good economy that makes other jobs available for officers after retirement, uncertainty around their union contracts, changes in management, changes in the City Council make-up, changes in their day-to-day working environment, such as the U.S. Department of Justice settlement over excessive force used against people with mental illness.
Aside from the retirements, the bureau is struggling to fill vacancies. As of Tuesday, it had 110 sworn officer vacancies.
The public safety fund’s pension costs are at $137 million this fiscal year, up from $133 million in 2017-18, and $111 million in 2009-2010.
The costs are rising because more people are retiring, the retirees are living longer and the final salaries the pensions are based on are higher due to recent union contracts.
The public safety fund, which covers active and retired Portland police and firefighters, is unique in that it is not fully funded, but financed by taxpayers through annual property taxes. Each year, the city levies a property tax in an amount equal to the fund’s administrative expenses and benefit costs. The fund’s tax levy is now $2.70 per $1,000 of assessed value, fund managers said.
Under vote-approved reforms passed in 2006, Portland officers and firefighters hired after Jan. 1, 2007, have been enrolled in the Oregon Public Service Retirement Plan, which is funded through investments
“We are beginning to see the impact of funding two generations of pensions simultaneously,’’ Jones said.
The transition from the older pay-as-you-go plan to the newer, pre-funded public employee retirement system plan for newer hires will ultimately reduce pension costs for future generations of taxpayers, she said.
-- Maxine Bernstein
Email at mbernstein@oregonian.com
Follow on Twitter @maxoregonian
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