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Employer rate summary

2023-2025 Employer Contribution Rates

The below summary report includes employer contribution rates effective for pay dates beginning July 1, 2023. These rates were adopted by the PERS Board on September 30, 2022. Additional rate details are contained in the 2021 valuation reports that are posted to the Actuarial Valuations webpage.

PERS 2023-2025 Employer Contribution Rates

Changes since the last rate-setting valuation:

  • Cumulative 2020 and 2021 asset returns of the Oregon Public Employees Retirement Fund (OPERF) were more than assumed (6.9% annually), generating over $8 billion in actuarial investment gain.
    • In 2020 the OPERF earned 7.18% and in 2021 the OPERF earned 20.05%.
    • This strong performance would suggest a decrease to rates for the 2023-2025 biennium except for the rate collar.
  • System payroll increased 4.4% during 2020 and 5.5% during 2021.
    • The actuarial assumption is 3.4% annually.
  • Although not new to this rate-setting valuation, the provisions of Senate Bill 1049 (2019) continue to have an impact on rates.
    • A Member Redirect offset will be applied to your Normal Cost rate. The 0.10% difference between the actual Member Redirect amount and the offset to your Normal Cost rate is due to some members earning less than the current monthly salary threshold.
      • 2.40% for Tier One/Tier Two payroll.
      • 0.65% for OPSRP payroll.
    • Employer contributions are paid on salary for rehired retirees. Salaries paid to retirees are not considered when calculating an employer’s valuation payroll.
    • Subject salary used for PERS benefit calculations and contributions is limited to $225,533 a year (pro-rated to $18,794 per month) as of January 1, 2023.
  • The State and Local Government Rate Pool and the School Districts Pool have a rate collar adjustment of (2.34%) and (4.47%), respectively.
    • This means that the employer contribution rates are higher than they would be in the absence of the rate collar.
    • The rate collar was modified in 2021 so that UAL rates will not decrease unless certain funded status thresholds are met.
    • This change prevents premature reduction of employer contribution rates due to strong earnings in a period and thus improves funding adequacy over the long term.

When reviewing the valuations or contribution rates, please consider the following:

  • Rates in this valuation only reflect data from January 1, 2021, to December 31, 2021.
  • The Employer Contribution Rates report is arranged by actuarial pool, with Independent (non-pooled) employers listed first, followed by School Districts, ending with employers participating in the State and Local Government Rate Pool (SLGRP).
  • Rates are applied based on pay date. These rates are effective for payrolls dated on and after July 1, 2023, even if the pay was for work performed before that date.
  • Rates in this report include normal cost, unfunded actuarial liability (UAL), side accounts (if applicable), transition liabilities/surpluses (if applicable), and retiree healthcare.
  • Rates in this report do not include the 6% employee (member) Individual Account Program (IAP) contribution, even if the employer is paying the contribution on their employees' behalf.
  • School districts and charter schools without a side account as of December 31, 2021, do not have an individual valuation. They will pay the rates shown under the employer name "School Districts," employer number 3000, listed near the top portion of page 8 (see PERS ER Contribution Rates (oregon.gov)).
  • State agencies and some SLGRP-participating local governments pay separate Tier One/Tier Two rates for general-service and police/fire employees. The Tier One/Tier Two rates shown in the attached report are a blend of general-service and police/fire employees. Please refer to the 2021 valuation report for your jurisdiction that is posted to the Actuarial Valuations website for the separate rates for Tier One/Tier Two general-service and police/fire employees.

If you have any questions regarding your employer rates, please contact Actuarial.Services@PERS.state.or.us.

Return to the Actuarial & Financial Information for Employers webpage.



In compliance with the Americans with Disabilities Act, PERS will provide these documents in an alternate format upon request. To request this, contact PERS at 888-320-7377 or TTY 503-603-7766.