The Oregon Investment Council (OIC) has faced recent scrutiny for prioritizing its investment strategy for the Oregon’s Public Employees Retirement System Fund (OPERSF) on private equity.
According to an article from the Oregon Journalism Project, OIC’s consultants recommended investing 20% in private equity and 27.5% in public equity in 2024. Instead, 26.5% was invested in private equity and just 17.3% in public equity. As a result, OPERSF lost out on a $1.4 billion return on its investment.
These poor returns have led to increased costs for public employers. For instance, the Grant School District – which serves less than 500 students – faced a $900,000 increase in pension contributions, forcing staff reductions and program cuts.
Additionally, the lack of transparency in private equity investments has raised concerns. Public workers have limited access to information about which investments are profitable, with some firms citing confidentiality agreements.
Lawmakers and advocacy groups have questioned the OIC’s investment practices. In September 2025, a joint letter from six Oregon legislators and several organizations urged the State Treasurer to address issues related to private equity investments and their performance.
OPRI will continue monitoring this, as Oregon schools and public agencies are bracing for another significant increase in pension costs in 2027, potentially exacerbating financial challenges.
