The unfunded actuarial liability (UAL) is the main cost driver behind increasing employer rates, but those costs are legacy costs associated with retirees that have accumulated because of the actions of past legislatures and PERS board decisions. Benefits changes and cost sharing won't address that portion of PERS costs.
Governor Brown has appointed a task force to review and propose options for making up to $5 billion in payments toward the PERS unfunded actuarial liability. The group will examine state assets and one-time revenue streams, as well as the assets of other public employers, that could be sold, bonded against or otherwise leveraged. Their report is due November 1, 2017.
In examining solutions to reduce the PERS liability, the task force will focus on:
- State assets and ongoing concerns.
- Dedication of one-time and unexpected funds coming to the state.
- Direction of one-time and unexpected local government funds to paying down the UAL.
Governor Brown has directed the task force to not consider privatizing prisons, privatizing state parks, or selling state forests.
Members of the PERS UAL Task Force are:
Donald W. Blair
Blair served as Executive Vice President and Chief Financial Officer at NIKE for 16 years and held financial management positions at PepsiCo and Deloitte. Blair has also served on the Oregon State Board of Higher Education and on the board and executive committee of Portland Center Stage. Blair holds a Bachelor of Science in economics and an MBA from the Wharton School, University of Pennsylvania.
As Chief Executive Officer and founder of Portland-based tech company Zapproved, Enand has led the cloud-based software provider in developing a new way for corporate legal departments to respond to litigation while mitigating risk and reducing costs. Prior to founding Zapproved, Enand spent more than 15 years with blue-chip companies such as Intel and IBM. Additionally, Enand serves on the board of the Technology Association of Oregon as well as on the board of Auth0. Monica holds a B.S. in computer engineering from Carnegie Mellon University and an M.B.A. from the University of Portland.
Lawrence J. Furnstahl
Furnstahl is Executive Vice President and Chief Financial Officer of Oregon Health & Science University. Before joining OHSU in January 2011, Furnstahl served as Chief Financial and Strategy Officer for the University of Chicago Medical Center and Biological Sciences Division, and University Vice President for Financial Planning for Science; Senior Vice President and Chief Financial Officer for UCSF Stanford Health Care; Vice President and Chief Financial Officer for the University of Chicago; and Vice President & Treasurer and Senior Executive, Patient Services for the University of Chicago Hospitals. In 2015, Governor Brown appointed him to the Oregon Public Employees Retirement System Board. Furnstahl is a graduate of the College of the University of Chicago, where he studied economics.
Livingston has served for 25 years in the Salem Fire Department as a Firefighter, Engineer, Captain and is currently in the rank of Battalion Chief. For the past 20 years, Livingston has also served Oregon State Fire Fighters Council as Legislative Director and President. Livingston is the current Vice President of Oregon AFL-CIO; past member of the state Public Safety Standards and Training board; and former member of the Governor’s Fire Service Policy Council. Livingston holds a B.A. of Public Administration from San Diego State University; an A.A. in emergency medical services from Umpqua Community College; and a Masters of Public Administration from Portland State University.
Rick Miller is the founder and chairman of the board of the Avamere Group, a senior care and housing provider. Miller is also the co-founder of Rogue Venture Partners, a private equity firm that provides funding and mentoring to entrepreneurs in Oregon. A seventh-generation Oregonian, Miller graduated from the University of Oregon and earned an MBA from Portland State University. He serves on the Board of Trustees of Portland State University and on the Oregon Investment Council.
Streisinger is a former director of the Department of Consumer and Business Services, Oregon's financial regulatory and consumer protection agency. A lawyer by background, she clerked at the U.S. Supreme Court before joining Portland law firm Lindsay Hart Neil & Weigler. She served as legal counsel to Governor Neil Goldschimdt, and then as general counsel to the Port of Portland before her appointment to head DCBS. Now retired, Streisinger is on the board of the Oregon Retirement Savings Plan (OregonSaves) and is active in a number of nonprofit organizations.
Wilhoite serves as Managing Director with Willamette Management Associates, a national financial, forensic, and economic analysis consulting firm. He is also the leader of the firm’s tax-exempt entity and health care services practice. Wilhoite also serves on the Board of Directors for the Federal Reserve Bank of San Francisco – Portland Branch; the Portland Business Alliance; Meyer Memorial Trust as chairman; Legacy Health; PacificSource Health Plans; Metal Toad Media; the U.S. Bank of Oregon; and The Nature Conservancy as vice chairman.