A review by the Oregon State Treasury has determined that legislation that would have allowed public employees who participate in the state’s Individual Account Plan (IAP), an account-based benefit, to select their own investments would violate the state’s legal and fiduciary standards.
An announcement on the Oregon Public Employees Retirement System (PERS) website explains that House Bill 4159 would have allowed IAP plan members to begin selecting the investments for their accounts on their own starting in 2019. However, after a mandated review, it was determined that PERS cannot move forward with implementation of the legislation without additional legislation.
“PERS will work [with] the Oregon State Treasury, employee groups, and other partners to develop a proposal to be considered during the 2019 legislative session,” the announcement states. “In the interim, members will remain invested in age-based IAP target-date funds until the legal and fiduciary constraints are resolved and appropriate beneficiary protections are in place.”All IAP plan members’ accounts were invested in age-appropriate target-date funds starting January 1, 2018.