The Oregon Supreme Court announced a decision Thursday which dismissed all the complaints of government employee unions and upheld SB 1049 which was passed by a vote of 31-29 in the House and 16-12 in the Senate during the 2019 session, despite the objections of many Democrats. Indeed, House floor proceedings had to be halted while House Speaker Tina Kotek met separately with Reps. Mitch Greenlick and Andrea Salinas, presumably to secure their votes.

The bill was not liked by government employee unions. It has two major effects. First, it requires that public employees make a small contribution toward their own retirement plans. The second, is that it establishes a cap on the amount of annual pay that can be used in retirement calculations at $195,000.

Government employee unions sued, using the argument that the new law was an "impairment of a contract" made with employees at the time they were hired. The high court noted the distinction between changing someones benefit based on work already performed, as opposed to changing the arrangement for future work, which they said is legal. This is what SB 1049 does.

This legislation caused quite a stir in Democratic circles, inspiring at least one primary challenge in May. Sponsored by Senate President Peter Courtney and House Speaker Tina Kotek, it was widely seen as a way for Democrats to deflect criticism for not taking measures to resolve the unfunded PERS liablity, which stands at about $27 billion and grows each day. SB 1049 will not change that number much.


--Staff Reports

Post Date: 2020-08-07 13:53:39

Last Update: 2020-08-07 14:22:30