LOC News
PERS Fund Valuation Looks Grim, May Improve
The Public Employee Retirement System (PERS) took a serious financial hit in 2018, but the outlook for 2019 looks better, according to a presentation made this week by the system’s actuaries during the agency’s October board meeting.
PERS will provide employers with advisory rates in December for the rate cycle beginning on July 1, 2021, the start of the next fiscal year cycle. Those advisory rates are for planning purposes and will be based on the PERS fund value as of December 31, 2018. Final rates will be based on the fund’s value as of December 31, 2019. The system-wide average advisory rate increase will be 3.16%, but individual employer rates will vary widely. Market turbulence at the end of 2018, largely the result of trade conflicts, drove earnings for the year down. The earnings picture for 2019 appears brighter, with the system earning 8.87% this year.
Additionally, cities should be advised that all employers will be eligible to apply for participation in the Employer Incentive Fund (EIF) beginning in December. Employers with unfunded liabilities that are greater than 200% of payroll are eligible to apply now. The EIF proves a 25% match on cash contributions made to an employer side-account. For more information about this program, visit the EIF webpage.
Contact: Scott Winkels, Lobbyist - swinkels@orcities.org
Last Updated 10-11-19
Related Articles
- PERS Board Adopts Emergency Rules - August 16, 2019
- PERS Reform Implementation Website Established - June 7, 2019