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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 — 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

  1. 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).
  2. When each phase opens, eligible employers will receive an email with a link to the online application.
  3. 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.
  4. 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.
  5. They will provide confirmation of your submission and share next steps.
  6. 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.  
 
 


Employer Incentive Fund by the numbers: 110 employers participated. (14 Independent employers, 37 School District Pool employers, and 59 State and Local Government Rate Pool (SLGRP) employers.) 117 side accounts matched. $96.4 million in matching funds paid. $480 million added to PERS Trust. (This total includes transition liability payments that were not part of EIF. Deposits for only EIF and side accounts total $475.2 million.) 6% improvement in system-wide funded status. (Attributable to all side accounts, not only EIF side accounts.) 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