Members of the business community filed two prospective ballot measures Thursday that would aim to rein in the Oregon’s public pension system’s growing deficit and runaway costs.
The first potential ballot measure would give new hires the option of a 401(k)-style retirement plan financed by matching contributions of 6% of salary by employers and employees. New hires could choose that new plan or the pension system — but not both, as employees get today. And moving forward, all employees participating in the pension plan would contribute 6% of their salary toward the cost of future benefits, starting July 1, 2021.
The second initiative would require the Legislature to study a new 401(k) style retirement plan for new hires and submit recommendations to implement it by 2022. Meanwhile it would require existing and new employees to pay one-third the cost of their pension benefits moving forward, which would range between 2.8% and 6% of pay depending on their job classification and membership tier.