A group of 16 Democratic lawmakers has called on Oregon State Treasurer Elizabeth Steiner to launch a comprehensive audit of the Oregon Public Employees Retirement Fund. These legislators cite concerns over the fund's heavy reliance on private equity, which they argue has underperformed while costing the state significant fees. While Oregon law requires such an audit every four years, a full review has not occurred in a decade.
Lawmakers pointed to data showing the fund held 27% in private equity as of May 2025, despite an established target of 20%. This over-allocation resulted in roughly $7 billion more in private equity than planned, a move that cost the pension fund gains while publicly traded stocks saw significant growth. They are now requesting the audit to verify if investment manager fees are competitive and to address the status of over $1 billion in legacy assets known as zombie funds.
Treasurer Steiner defended the current management approach, stating that her office performs audits on specific asset classes on a rotating basis. She argues this method satisfies state requirements and provides better oversight than a single, massive audit every four years. Her office reports that five such audits, covering private equity and fixed income, have taken place over the last three years.
The public pension fund manages retirement payments for 166,000 current and 249,000 future retirees. With the fund currently valued at over $100 billion, the dispute centers on transparency and the strategy used to grow capital for public workers. The lawmakers maintain that a full audit is necessary to provide clear answers to the public regarding investment performance and the impact of long-term fees.