Employer Incentive Fund (EIF)

About the EIF

The Employer Incentive Fund (EIF) program was established by the 2018 Oregon Legislature with Senate Bill 1566. Then-Governor Kate Brown proposed this measure to provide additional funding for PERS by creating the EIF to match side account contributions by participating PERS employers.

Employers who apply to open or increase a side account under the EIF program receive a matching deposit of 25% of their side account deposit. The match is paid from the Employer Incentive Fund, which is a separate fund managed by Oregon State Treasury that is funded by Oregon Lottery sports betting proceeds.

• The minimum match is $6,250 (25% of the minimum deposit of $25,000).
• The maximum match is either 5% of the employer’s unfunded actuarial liability (UAL) or $300,000, whichever is greater.

The EIF program is scheduled to sunset on July 1, 2042. After that, any unexpended moneys remaining in the Employer Incentive Fund will be transferred to the state General Fund.

What is a side account?

When an employer makes a lump-sum payment to prepay all or part of their pension unfunded actuarial liability (UAL), PERS deposits the money in a special account called a side account. This account is attributed solely to the employer making the payment and is held separate from other employer reserves. PERS applies the funds toward the employer’s UAL (i.e., their PERS debt), which reduces the employer’s contribution rate. The payments from the side account are amortized over a predetermined period (usually 20 years).

For the EIF, if the deposit is $10 million or more, the employer can select a shorter amortization period of 6, 10, or 16 years.

Employers can establish a side account at any time. Once you establish a side account, you can make up to two additional payments per side account per year with no additional fees. To learn more, read the Employer Side Accounts webpage.

2025–2026 — EIF cycle two

Results

Phase one, April 1 – June 30, 2025: Application period for employers with an unfunded actuarial liability (UAL) greater than 200% of valuation payroll.   

• Fund starting balance: $35.2 million
• Employers who were approved for matching funds: 8
• Matching funds allocated: $4.8 million

Phase two, July 1, 2025 – March 31, 2026: Application period for all employers.  

Fund starting balance: $30.4

Employers who were approved for matching funds: 23

Matching funds allocated: $28.8 million*

*One approved match was not fulfilled because PERS did not receive the side account deposit before the deadline.  

EIF by the numbers

  

  

Where did the money go?

 

School districts 9	Community colleges 0
State universities 1	Cities 7
Special districts 9	Counties 5

Information through April 15, 2026   

  

  

EIF matches for Oregon counties

 

County	EIF match	County	EIF match
Clackamas	$3,475,000	Lane	$19,569,456
Crook	$824,679	Linn	$875,000
Deschutes	$1,550,000	Malheur	$159,143
Douglas	$393,180	Marion	$125,000
Hood River	$300,000	Multnomah	$2,075,000
Jackson	$1,466,687	Umatilla	$480,869
Jefferson	$150,000	Wasco	$306,250
Klamath	$600,000	Washington	$1,250,000
Yamhill	$55,068

  

  

Future cycles

The EIF Program is scheduled to remain active until 2042. As long as the EIF continues to receive income, PERS will periodically open new application cycles.   

PERS Actuarial Activities Section cannot predict when the next cycle might occur. If sufficient funds become available, PERS Actuarial will announce cycle three.   

Information and assistance

For more details about the program, read the complete EIF administrative rule: Oregon PERS Chapter 459 Employer Incentive Fund Program.   

If you have any comments, questions, or concerns, email Actuarial.Services@pers.oregon.gov.  

If you do not receive emails from PERS, sign up for GovDelivery notifications.  

Go to the Employer Rate Relief Programs webpage.