Employer rate summary

2027-29 employer contribution rates

This page is a summary of changes since the last rate-setting valuation that led to rate adjustments for the 2027-29 biennium.

The 2027-29 employer contribution rates are effective for pay dates beginning July 1, 2027.

2027-29 Employer Contribution Rates (PDF)

These rates were adopted by the PERS Board on September 25, 2026.

• Read the presentation of 2027-29 rates given to the PERS Board by PERS actuary Milliman: PERS Board Sept. 25, 2026, meeting packet, starting on PDF page 140.
• Read more about 2027-29 rates in the 2025 valuation reports posted on the Actuarial Valuations webpage.

Changes since the last rate-setting valuation

1. Cumulative 2024 and 2025 asset returns of the Oregon Public Employees Retirement Fund (OPERF) were more than the assumed annual rate of 6.9%:
   • In 2024, the OPERF gained 5.71%; in 2025, the OPERF earned 9.68%.
   • This increased fund assets by $6.6 billion.
   • These returns increased the funding ratio and reduced the unfunded actuarial liability (UAL) of the fund. Despite this, employer net contribution rates increased somewhat. This is primarily due to the expiration of more than 180 side accounts in 2027, which, in early 2026, was slightly more than half of all side accounts.
2. System payroll grew more than 9% during 2024 and 4.5% during 2025.
   • The actuarial assumption of annual system payroll growth is 3.4%.
   • Because valuation payroll is used to calculate the UAL rate, the uncollared UAL rate decreased.
   • PERS rate collar methodology prevents a decrease in collared UAL rates until certain funding targets are met, so the base collared UAL rate remains the same. These choices promote rate stability and help the system reach its financial goals.
3. 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.
     • 2.40% for Tier One/Tier Two payroll.
     • 0.65% for Oregon Public Service Retirement Plan (OPSRP) payroll. The 0.10% difference between the actual member redirect amount (2.5% for Tier One/Tier Two, 0,75% for OPSRP) and the offset to your normal cost rate is due to some members earning less than the current monthly salary threshold for member redirect (find the member redirect salary threshold on the EPSA Overview webpage, section “Does EPSA Apply to Every PERS Member?”).
   • Employer contributions are paid on salary for working 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 the salary limit in effect for each calendar year. Find this year’s salary limit on the employers’ Salary Limit webpage.
4. The State and Local Government Rate Pool and the School Districts Pool have a rate collar adjustment of 1.99% and 4.46%, respectively.
   • This means that the employer contribution rates are higher than they would be without 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 rate collar policy prevents premature reduction of employer contribution rates and, thus, ensures funding adequacy over the long term.

Considerations for valuation reports and contribution rates

When reviewing your valuation reports or contribution rates, please consider the following:

• Rates in this valuation only reflect data from January 1, 2025, to December 31, 2025.
• The 2027-29 Employer Contribution Rates (PDF) 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 based on pay date. These rates are effective for payrolls dated on and after July 1, 2027, even if the pay is 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% 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, 2025, do not have an individual valuation. They pay the rates shown under the employer name “School Districts,” employer number 3000, in the 2027-29 Employer Contribution Rates (PDF).
• State agencies and some SLGRP local governments pay separate Tier One/Tier Two rates for General Service and Police and Fire job-classification employees. The Tier One/Tier Two rates shown in the 2027-29 Employer Contribution Rates (PDF) are a blend of General Service and Police and Fire employees. Refer to your organization’s 2025 valuation report, available for download on the Actuarial Valuations webpage, for the separate rates for Tier One/Tier Two General Service and Police and Fire employees.

Questions and more information

If you have any questions about side accounts, pension obligation bonds, contribution rates, UAL, the Employer Incentive Fund Program, legislative changes to PERS, or employer actuarial valuation reports, email Actuarial.Services@pers.oregon.gov.