Democrats in the Oregon Senate have proposed a bill that would reform the state's public employees pension system.

The bill, SB 822, would help curb state payments toward pension costs that are expected to jump by around $900 million in July as the Oregon Public Employees Retirement System increases required contributions, according to the Oregonian newspaper.

The system is raising rates to help pay for a $14 billion unfunded liability that ballooned during the recession, the paper said.

The proposed legislation would cut contributions by $810 million in the next two-year budget, with half coming from savings from reducing cost of living adjustments, which unions said they would challenge in court, according to the newspaper.

The paper said $350 million of proposed savings would come from skipping required payments.

The bill is expected to pass with the help of Democratic majorities in both chambers and get the Democratic Gov. John Kitzhaber's signature.

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