SALEM, Ore. (AP) -- The Oregon Public Employees Retirement System board voted Friday to raise employer pension rates 100 percent.
The Statesman Journal in Salem reported that the rates would more than double as a result of investment losses the retirement system known as PERS suffered during the market downturn.
During the current biennium which stretches from 2009 until July 2011 government entitites contributed an extra of 5.2 percent of each employee's pay to the PERS system. But because of massive investment losses in 2008, the PERS board voted today to increase that average contribution to 10.8 percent per employee beginning in July of 2011.
It means the state of Oregon, already facing budget shortfalls, will need to find an extra $357 million for its workers retirement accounts over the next two years.
The estimated fiscal impact of the 2011-2013 net rate increase was about $550 million, officials said. The vote was for a two-year period, with a total increse of just over $1 billion.
According to the agency, the average monthly benefits for those retiring at age 60 in 2009 was about $2,671 per month.
Here's a look at a few of the bigger cities, counties and school districts affected by the change:
City of Portland currently pays 4.3 percent. The new rate will be 9.3 percent
Multnomah County currently pays 7.41 percent. The new rate will be 11.65 percent
Marion County currently pays 5.37 percent. the new rate will be 10.46 percent
Washington County currently pays 10.67 percent. The new rate will be 15.05 percent
Salem Keizer Public Schools currently pay 3.16 percent. The new rate will be 11.75 percent
Hillsboro School District #1J currently pays 4.30 percent. The new rate will be 12.71 percent
Portland Public Schools currently pays .29 percent. The new rate will be 1.88 percent. The new rate will be 9.30 percent
AP contributed to this report
