Established in 1948, the permanent Fire and Police Disability and Retirement (FPDR) levy was created to fund disability and retirement costs for fire and police personnel. The levy is currently capped at $2.80 per $10,000 of a property's real market value. However, the City is contractually obligated to pay for these costs, even if the levy can’t cover all the costs, which continue to rise due to inflation and other market factors.

If the levy becomes insufficient to meet its obligations, the City would need to use other revenue sources to cover the disability and retirement costs, potentially reducing its ability to fund other essential services. To manage these risks, the City closely monitors the fund’s financial health.

The data shows that the financial outlook for the FPDR levy has remained stable over the past ten years. Since 2018, there has been a 99% probability that the fund will meet its obligations over the next twenty years. This 99% forecast is the most statistically reliable prediction for the fund’s future over two decades.

This is the only levy in the City that funds disability and retirement benefits, specifically for Fire and Police staff hired before 2007. Police and Fire staff hired in 2007 or later receive retirement benefits through Oregon's Public Employee Retirement System (PERS). All other City staff, regardless of when they were hired, also receive their retirement benefits through PERS.

The annual tax to cover the cost of this fund is based on the estimated need for the next year. As the number of retirees supported by the FPDR levy decreases, the levy amount will also decrease, eventually ending when there are no more pre-2007 Fire and Police hires to support.

Every two years, an independent financial consultant reviews the financial health of the FPDR levy and checks if the fund has enough money to cover all expected expenses for the next twenty years.

The consultant’s report gives the probability that the FPDR levy will be able to fulfill its obligations. The probability can’t be 100% because there is always a chance something unexpected could happen, so a 99% forecast is the statistically best outcome for predicting the future of this fund over twenty years.

For more information on FPDR levy including recent presentations and reports from the financial consultants, visit FPDR Budget & Reports.

For more information about the current disability and retirement program, visit PERS.