SD,  I think I know what the "issue" is, that 104% is currently funded.  What it doesn't account for is future funding requirements I suspect.  Take a look at these two articles.

PERS: Five things to know about Oregon's pension problem

http://www.oregonlive.com/politics/index.ssf/2015/12/pers_five_things_to_know_about.html

"PERS: Oregon pension deficit up 20 percent, putting pressure on costs"

http://www.oregonlive.com/politics/index.ssf/2016/02/oregon_pension_deficit_up_20_p.html