Oregon Investment Council Holds October Meeting, Implements New Policies Following Passage of Climate-Related Investment Legislation

The Oregon Investment Council (OIC) held its regular meeting on October 22, where Council members advanced several key initiatives to strengthen the state's investment strategies and align with new legislative mandates, including the recently passed Climate Resilience Investment Act.

Council members reviewed the 2024 benchmarking results for the Oregon Public Employees Retirement Fund (OPERF), which compares the Oregon public pension fund's costs and performance to other public pension funds of similar size. The analysis showed OPERF's five-year net return of 7.3% outperformed its policy benchmark but was slightly below the average peer median, while the fund's long-term performance of 7.4% over 20 years remained above peers. The benchmarking review also found that Treasury's active management of the retirement fund delivered nearly $3.8 billion in cumulative added value over the past five years, while investment costs continue to trend downward and be in alignment with pension plan peers.

"The benchmarking results highlight the tremendous value our investment team brings to Oregonians. Generating billions in added value over the past five years reflects our team's expertise and commitment to delivering retirement security for Oregon's public employees, while lessening the burden for employers," said Oregon State Treasurer Elizabeth Steiner.

The Council also discussed the results of its 2025 Risk Survey, a cornerstone of the ongoing asset-liability study. Survey feedback from Council members and staff showed alignment on maintaining a steady investment approach, prioritizing long-term funded status, and managing risks to protect the fund from major losses. The results will guide the Council's asset allocation decisions expected in 2026.

The OIC formally adopted policies to establish the Oregon Environmental Restoration Fund, which will be managed under a long-term investment strategy to support the mission of the fund. The fund, established by the Oregon Legislature in 2024 with assets of approximately $560 million, is designed to support watershed and ecological restoration efforts across Oregon.

In addition, the Council approved updates to its investment policies to implement requirements of the Thermal Coal Act (2024 HB4083A) and the Climate Resilience Investment Act (2025 HB 2801A), as well as other legislative mandates. These updates provide a framework for managing climate-related financial risks, incorporating lower carbon investment preferences where prudent, and ensuring transparent reporting to both the Council and the Legislature.

Other agenda items included receiving updates regarding new investment commitments for Chief Investment Officer, Rex Kim, and providing time for public comment.

The OIC is a six-member board responsible for setting investment policy for OPERF and other state investment funds. Four members are appointed by the governor. The state treasurer and the director of the Public Employees Retirement System serve by position.
The next OIC meeting is scheduled for Wednesday, December 3.