SALEM, Ore. -- Local governments and school districts across Oregon learned Friday that they’ll have to pay a lot more for employee pensions. The Public Employee Retirement Board heard from an economic analyst Friday that rates will more than double on average next year. Salem Correspondent Chris Lehman reports.

School districts, cities and counties pay into a public employee retirement fund at rates set by a state panel. Those rates fluctuate based on the investment income generated by the fund. With the increase that’s now expected, the system wide average will be nearly 11 percent of a local government’s payroll. Mike Eliason is a policy manager with the Association of Oregon Counties.

Mike Eliason: “There’s no wiggle room. There’s no way to avoid it. It’s just something that’s going to have to be dealt with and factored into the budget. The money is going to have to come from somewhere, and so there will be the predictable effects of that.”

Exact rates will be determined in September. Local governments pay different amounts based on the number of their employees and how long those workers have been on the job.

Copyright 2010 Northwest News Network

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