Oregon PERS by the Numbers 2025: 7 Key Takeaways for Members and Retirees

If you’re an Oregon Public Employees Retirement System (PERS) member or retiree, headlines about pensions can feel confusing — and sometimes alarming. Each year, PERS publishes a report called PERS by the Numbers, and the 2025 edition offers valuable insight into how the system is funded, how benefits look in practice, and what actually matters for your retirement planning.

Below are the seven most important takeaways from the 2025 PERS by the Numbers report, translated into plain English for members and retirees.

What Is PERS by the Numbers?

PERS by the Numbers is an annual snapshot of Oregon’s pension system. It covers funded status, benefit levels, investment structure, and participation trends. While the document is technical, it provides useful context for understanding how the system is functioning beneath the headlines.

Takeaway #1: Oregon PERS Is Underfunded — but Improving

As of the most recent reporting period, Oregon PERS is approximately 73% funded on its own, and about 77% funded when employer side accounts are included. This means the system still has an unfunded liability, but it is not unusual among public pension systems and reflects long-term obligations paid over decades.

Importantly, the funded status is projected to improve over time, assuming steady contributions and reasonable investment returns.

Takeaway #2: Long-Term Projections Show a Path to Full Funding

Using a long-term assumed rate of return of 6.9%, the system is projected to reach full funding around 2036. This assumption is based on long-term market expectations rather than short-term performance.

Projections are not guarantees, but they do reflect that Oregon PERS is being actively managed with a clear long-term funding plan in place. You can learn more on our blog: Is My Oregon PERES Pension Secure?

Takeaway #3: Employer Side Accounts Explain the Headlines — Not Benefit Risk

Employer side accounts are funds set aside by public employers to help offset their pension contribution rates. These accounts are not tied to individual member benefits, but they do reduce how much employers must contribute each year.

Many of these side accounts are expected to expire beginning in 2027, which may increase employer contribution pressure and bring PERS back into public conversations. For members, this is background context, not a change to earned benefits.

Takeaway #4: Most PERS Benefits Are Moderate, Not Extreme

Despite common perceptions, most PERS retirees receive modest, predictable benefits:

• The median annual benefit is roughly $28,000
• The average annual benefit is about $35,000
• More than 75% of retirees receive less than $4,500 per month
• Fewer than 2% receive more than $10,000 per month

For most retirees, the pension is a strong foundation — but not the entirety of retirement income.

Takeaway #5: The Average Replacement Ratio Is About 45%

For recent retirees, the pension replaces approximately 45% of final average salary. This figure does not include Social Security or Individual Account Program (IAP) income, both of which often play an important role in total retirement cash flow.

Understanding this replacement ratio helps frame decisions around savings, timing, and healthcare planning.

Takeaway #6: IAP Assets Exceed $14 Billion Systemwide

The Individual Account Program (IAP) is a significant component of PERS:

• More than 340,000 IAP accounts
• Average balance around $42,000
• Total systemwide assets exceeding $14 billion

While individual balances may not feel large on their own, the IAP is often the most flexible part of a PERS member’s retirement income — and one where payout timing and tax coordination matter. Want to learn more about your IAP? Check out or blog: What is the Oregon PERS IAP (Individual Account Program)?

Takeaway #7: Work-After-Retirement Rules Are More Flexible Than Many Assume

Through 2034, most retirees may work for a PERS-participating employer without hour limits, as long as separation-of-service rules are met. For those retiring before normal retirement age, this typically requires a six-month break from PERS-covered employment.

These rules can meaningfully affect retirement timing and post-retirement income planning. You can learn more through our blog: Can You Keep Working After Oregon PERS Retirement? Here’s How It Works.

What This Means for Oregon PERS Members

The biggest takeaway from PERS by the Numbers 2025 is this: Oregon’s pension system is large, complex, and evolving — but the decisions that matter most are personal and specific.

Retirement timing, IAP payout strategy, healthcare coordination, and work-after-retirement rules often have a greater impact on financial confidence than systemwide headlines. If you have questions about how your PERS benefits fit into your broader retirement plan, focused guidance can help clarify next steps.

This article is for educational purposes only and is not individualized investment, tax, or legal advice.