Pension-Reform Task Force Considers Transferring SAIF Reserves

Thursday, August 31, 2017 | 0

According to an Oregon newspaper, one of the "most developed ideas so far" out of the governor's special task force on pension reform is transferring a portion of the workers' compensation state fund's reserves to the pension fund.

Gov. Kate Brown

SAIF Corp. had $1.6 billion in its reserve fund at the end of 2016. The task force could recommend transferring between $500 million and $1 billion directly to the Oregon Public Employees Retirement System (PERS).

An editorial from Eugene-area newspaper The Register-Guard called the transfer idea "questionable." 

"The reserve was built up by premiums paid by Oregon employers, who have a moral, and perhaps legal, argument that if the money is not needed to cover future claims, it should be returned to them in the form of reduced premiums or dividend payments," the newspaper's editorial board wrote. 

PERS currently has a $24.5 billion unfunded liability. Gov. Kate Brown assembled a seven-member task force earlier this year to look into lopping $5 billion off that amount. 

The task force held its second public meeting Monday.