Runaway Government: The PERS bite

The payments being made by state and local governments to public employees under the Oregon Personal Retirement System (PERS) was over $2.276 billion in the year ending in 2003.

The following chart shows the dramatic increase in payments in only a the last five years.*

The number of public retirees going into the PERS system grew from 75,326 in 1998 to 91,526 in 2003, a 20.5% increase. Yet, at the same time, as the chart demonstrates, the payout̶ ̶ rather than jumping 25% to 30% to absorb the extra employees and inflation, jumped 116%.

The total costs of retirement on an annual basis, jumped from approximately $1.054 billion in 1998 to $2.277 billion in 2003. Is this trend to continue or will reforms kick in?

Most local governments in Oregon, as well as State workers, participate in the PERS system.

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