Oregon House votes to limit pension benefit

Published:

 

SALEM, Ore. (AP) -- The state House has voted to eliminate a pension benefit for government workers who leave Oregon after they retire.

Oregon pays retired public employees an extra stipend to help them cover state taxes on their pension benefits. The House voted 58-2 on Monday to eliminate those extra payments for pensioners who live outside of Oregon and don't pay taxes here.

The change was recommended by former Gov. Ted Kulongoski, who said it could save $72 million in a two-year budget. But lawmakers made it apply only to workers who retire after Jan. 1 because they were afraid they can't legally modify benefits for current retirees.

The change means the bill will cost $600,000 in the short term and only save money in the future. It now goes to the Senate.