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 — EIF cycle two
The Employer Incentive Fund program is opening a new application cycle in 2025. This cycle has $40 million for side account deposit matches.
As with cycle one, this cycle has two phases:
Phase one, April 1 – June 30, 2025: Application period for employers with an unfunded actuarial liability (UAL) greater than 200% of valuation payroll.
- Determination based on 12/31/2023 actuarial valuation.
- PERS Actuarial Activities Section will identify and reach out to eligible employers.
List of phase-one eligible employers
Phase two, July 1, 2025 – all funds are matched: Application period for all other employers, if funds are still available. PERS Actuarial Activities Section will keep employers informed about the application process through the employer newsletter and emails.
EIF application process
- Before each phase opens, employers should prepare to complete the application by gathering the information listed in the
EIF application instructions (PDF). They should also ensure they understand the EIF application process by reading the
EIF fact sheet (PDF).
- When each phase opens, eligible employers will receive an email with a link to the online application.
- The application is in a survey format. Complete all required questions on the application and click
Submit. Your application is successfully submitted. You may click Submit again to return to the PERS Employer website.
- PERS Actuarial Activities Section will record the exact date and time when each application is submitted. They will process applications in order of arrival time, as required by law.
- They will provide confirmation of your submission and share next steps.
- When all funds are matched, the cycle is over. There will be no wait list for this cycle.
EIF application instructions
Read, print, or download the
EIF application instructions (PDF) document to learn the information that you will need for each question of the application.
Requirements for EIF participation
To participate in the EIF, the employer must:
Learn more about EIF qualification criteria in the
EIF fact sheet, facts 4 and 5.
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.
2019–2023 — EIF cycle one
The first cycle of the EIF closed on March 31, 2023. During the 2022 legislative session, the Oregon Legislature appropriated $17,250,000 in General Funds to the EIF. When combined with the forecasted $19,500,000 in Sports Betting funding already anticipated to fund EIF by year-end 2023, these funds provided sufficient matching dollars to offer a match for each of the 44 waitlisted payments.
The first cycle was highly successful and financially benefited all participating employers. More than $96 million in matching funds went to 110 employers, causing a 6% improvement in system-wide funded status.
Funds matched/calendar years |
2019 | $41,488,630 |
2020 | $23,264,532 |
2021* | 0 |
2022 | $30,118,737 |
2023 | $1,550,000 |
Total |
$96,421,899 |
* No funds were matched because of temporary reallocation of state funds.
Information through November 30, 2023
Where did the money go?
School districts
28 | Charter schools
6 |
Cities
30 | Education service districts
3 |
Special districts
26 | Community college
1 |
Counties
13 | State universities
2 |
Information through November 30, 2023
EIF matches for Oregon counties
County |
EIF match |
County |
EIF match |
Baker | $100,000 | Lake | $442,037 |
Benton | $4,861,723 | Lane | $25,289,732 |
Clackamas | $2,931,690 | Lincoln | $722,565 |
Columbia | $1,144,869 | Linn | $701,184 |
Crook | $200,000 | Malheur | $550,137 |
Deschutes | $7,501,085 | Marion | $2,226,728 |
Douglas | $1,906,184 | Multnomah | $28,248,146 |
Gilliam | $12,500 | Polk | $141,314 |
Grant | $87,500 | Sherman | $600,000 |
Hood River | $409,684 | Union | $62,500 |
Jackson | $4,712,647 | Wasco | $588,034 |
Jefferson | $1,403,671 | Washington | $10,042,189 |
Klamath | $672,030 | Yamhill | $353,750 |