Gov. in Talks for Possible SAIF Sale or Transfer of Assets

Wednesday, February 20, 2019 | 0

A $1.4 billion surplus held by Oregon’s state-chartered workers’ comp insurer may be an irresistible treasure trove for Gov. Kate Brown, who is grappling with a $9 billon pension fun deficit. 

Gov. Kate Brown

The Oregonian reported late Monday that it has obtained documents that show Brown is considering selling SAIF or raiding its surplus to fund the Public Employees Retirement System. A task force appointed by the governor in 2017 to recommend solutions to the PERS shortfall had offered a sale of SAIF or a transfer of its assets as options.

The downside is that a sale or transfer of assets will likely lead to increases in workers’ compensation costs for employers, the task force said in its final report. Business groups oppose any tampering with SAIF.

SAIF was created as a state agency and was made a public corporation, dubbed the State Accident Insurance Fund, in 1980. The governor appoints board members.

The Oregonian reported that it obtained records showing that the governor and two aides met on Jan. 10 with retired insurance executive Pat Kilkeeny and John von Schleggal, founder of Endeavour Capital, to discuss ways of reducing the PERS unfunded liabilities.

Later, TigerRisk Partners, a New York-based mergers and acquisition specialist, contacted the governor’s office offering its advice on “strategic alternatives available to SAIF.”

Mike Salsgiver, executive director of the Associated General Contractors of Oregon, told the newspaper that his group opposes any effort to use SAIF’s mandated reserves to ease the PERS deficit.