PERS offers several tools and programs mandated by the Oregon Legislature and PERS Board to help slow the increase
in employer contribution rates.
Employee Pension Stability Account (EPSA)
EPSA is a product of the Member Redirect Program. It is an extra account required for some PERS members that helps
fund their pension at retirement. Learn more: About the Employee Pension Stability Account.
For approved employers who make an eligible lump-sum payment of at least $25,000 into a new side account or as an
additional payment into an existing side account (including any lump-sum payment made since June 2, 2018), the
EIF program matches 25% of that lump-sum amount, not to
exceed the greater of either 5% of an employer’s unfunded actuarial liability (UAL) or $300,000.
Using PERS’ Employer Rate Projection Tool, employers can estimate their own potential employer contribution amounts
and rates over the next several biennia. Employers may also use the tool to determine the potential financial impact
of establishing a new side account.
The Member Redirect program (introduced by Senate Bill 1049 (2019)) eases employer rates by requiring PERS members
to contribute to their future pensions. PERS members whose gross pay in a month exceeds the
monthly salary threshold in effect for that calendar year have a
portion of their 6% Individual Account Program (IAP) contributions redirected to their Employee Pension Stability
Account (EPSA). Each member’s invested EPSA will help fund their pension when they retire.
The Member Redirect salary threshold changes every January in accordance with the Consumer Price Index (CPI). The
program only operates when the PERS Fund is less than 90% funded.
Rate pooling
Rate pooling allows individual employers to be grouped with other employers for the purpose of determining pension
costs and contribution rates. Pooling stabilizes employer rates by spreading the cost of financial and demographic
changes, such as a drop in fund earnings or payroll reductions, across multiple employers rather than assigning the
entire cost to a single employer.
For more information, read the
Guide to Understanding Pooling.
The Salary Limit program limits the amount of an employee’s salary (including a rehired retiree) that PERS can use
to calculate an employee’s PERS benefits; it does not limit an employee’s actual salary. The Salary Limit changes
every January 1 based on the CPI. To calculate the salary limit for less than a full year of employment, go to
Salary Limit webpage.
School Districts Unfunded Liability Fund (SDULF)
The SDULF was established by Senate Bill 1566 (2018) as one of a handful of programs intended to ease employer
contribution rates through increased side-account deposits. The SDULF was intended to be a pooled side account that
would provide rate relief to all public-school districts, public charter schools, and education service districts.
In 2025, Senate Bill 849 changed the way the fund could be spent, allowing PERS to apply the funds directly to
school districts’ liabilities. The $168 million distribution (based on the fund’s assets on February 28, 2025)
delivered up to a 1.68% decrease in schools districts’ 2025-27 contribution rates, reducing their PERS costs by
about 6% over the next biennium. This translates into $168 million in savings — allowing districts to allocate funds
to serve other needs.
When you, an employer, make a lump-sum payment to prepay all or part of your pension unfunded actuarial liability
(UAL), the money is placed 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. The money is invested in the
Oregon Public Employees Retirement Fund
(OPERF) and is subject to earnings and losses.
If you choose to hire (or continue employing) any PERS service retiree during 2020 through 2034, most of those
retirees (note the exceptions on the
SB 1049 Changes: Work
After Retirements webpage) can work an unlimited number of hours in those calendar years while continuing to
receive their pension benefit.
Employer contributions
From 2020 through 2034, you are required to pay to PERS your
PERS employer contribution rate on any service retiree’s wages
(the “PERS rate,” which includes applicable pension and post-retirement healthcare rates but not any IAP
contributions) as if they were an active member.
The purpose of the UALRP is to provide resources and tools to educate employers about the different factors that
affect their contribution rate, such as unfunded actuarial liability, actuarial valuation, and pooling. By
understanding these factors, employers can create funding plans to manage their contribution rates.
For assistance
For additional information about employer rate relief programs, side accounts, and other actuarial/financial topics,
please email
Actuarial.Services@pers.oregon.gov.
Employers may also want to use PERS'
Employer Rate Projection Tool to determine the
potential impact of establishing a new side account.