Sixteen Democratic lawmakers are urging Oregon State Treasurer Elizabeth Steiner to conduct a long-overdue comprehensive audit of the Oregon Public Employees Retirement Fund (OPERF). In a letter dated August 3, lawmakers expressed concerns over the fund’s heavy reliance on private equity investments, which they argue has not been adequately monitored.
They highlighted that Oregon law mandates a comprehensive audit every four years; however, the last one was conducted a decade ago. Concerns have amplified following an August 2025 investigation revealing that Treasury staff and the Oregon Investment Council invested significantly more in private equity than their targets indicated, leading to an imbalance in the investment strategy. The council set a 20% target for private equity, yet as of May 2025, 27% of the fund was channeled into this asset class, amounting to about $7 billion over target investment.
The lawmakers assert that excessive investment in private equity has yielded subpar results, significantly underperforming annual benchmarks, and called for an audit to assess the efficacy and transparency of these investments. While Steiner responded, indicating that her office has been conducting audits on a rotating basis for different asset classes, the lawmakers maintain that a comprehensive audit is necessary for public trust and accountability.
Moreover, they expressed specific concerns regarding “zombie funds” – private equity funds older than ten years that hold unsold assets, which currently amount to about $1.3 billion in unsold values. They outlined that if these funds are dormant, they still incur annual fees of $26 million.
The audit request aims not only to ensure responsible investment practices but also to evaluate whether investment manager fees align with best practices observed in other large state pension funds. As the state’s Public Employees Retirement System supports a significant number of current and future retirees, the need for transparency and oversight is critical.
