As of Thursday, April 4, 2013
SALEM (AP) — A Democratic proposal to cut pension benefits for public employees is one step closer to being law.
The full budget committee is intended to vote on the measure Friday. A key legislative subcommittee approved the measure in a party-line vote Tuesday. It could get a vote in the Senate and House next week.
Democrats have put the bill on a fast track, angering Republicans who say it doesn’t do enough to curb the rising cost of funding pensions for government workers.
The Democratic measure would reduce cost-of-living increases in retirement checks on a graduated scale. It also would eliminate supplemental tax payments for retirees living outside Oregon.
Public pensions will cost taxpayers at all levels of government $2.9 billion over the next two years, an increase of $900 million over the last two years.
Public employee unions say the proposal is illegal.