For purposes of this chapter:
(1) “Annuity” means payments for life derived from contributions
made by a member as provided in this chapter.
(2) “Board” means the Public Employees Retirement Board.
(3) “Calendar year” means 12 calendar months commencing on January
1 and ending on December 31 following.
(4) “Continuous service” means service not interrupted for more
than five years, except that such continuous service shall be computed
without regard to interruptions in the case of:
(a) An employee who had returned to the service of the employer as
of January 1, 1945, and who remained in that employment until having
established membership in the Public Employees Retirement System.
(b) An employee who was in the armed services on January 1, 1945,
and returned to the service of the employer within one year of the date
of being otherwise than dishonorably discharged and remained in that
employment until having established membership in the Public Employees
Retirement System.
(5) “Creditable service” means any period of time during which an
active member is being paid a salary by a participating public employer
and for which benefits under this chapter are funded by employer
contributions and earnings on the fund. For purposes of computing years
of “creditable service,” full months and major fractions of a month shall
be considered to be one-twelfth of a year and shall be added to all full
years. “Creditable service” includes all retirement credit received by a
member.
(6) “Earliest service retirement age” means the age attained by a
member when the member could first make application for retirement under
the provisions of ORS 238.280.
(7) “Employee” includes, in addition to employees, public officers,
but does not include:
(a) Persons engaged as independent contractors.
(b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not total 600
hours in any calendar year.
(c) Persons, other than workers in the Oregon Industries for the
Blind under ORS 346.190, provided sheltered employment or made-work by a
public employer in an employment or industries program maintained for the
benefit of such persons.
(d) Persons employed and paid from federal funds received under the
Emergency Job and Unemployment Assistance Act of 1974 (Public Law 93-567)
or any other federal program intended primarily to alleviate
unemployment. However, any such person shall be considered an “employee”
if not otherwise excluded by paragraphs (a) to (c) of this subsection and
the public employer elects to have the person so considered by an
irrevocable written notice to the board.
(e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement plan
under federal railroad retirement statutes. This paragraph shall be
deemed to have been in effect since the inception of the system.
(8) “Final average salary” means whichever of the following is
greater:
(a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active member of
the system in three of the calendar years of membership before the
effective date of retirement of the employee, in which three years the
employee was paid the highest salary. The three calendar years in which
the employee was paid the largest total salary may include calendar years
in which the employee was employed for less than a full calendar year. If
the number of calendar years of active membership before the effective
date of retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year paid by
one or more participating public employers to the employee in all of
those years, without regard to whether the employee was employed for the
full calendar year.
(b) One-third of the total salary paid by a participating public
employer to an employee who is an active member of the system in the last
36 calendar months of active membership before the effective date of
retirement of the employee.
(9) “Firefighter” does not include a volunteer firefighter, but
does include:
(a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
(b) An employee of the State Forestry Department who is certified
by the State Forester as a professional wildland firefighter and whose
primary duties include the abatement of uncontrolled fires as described
in ORS 477.064.
(10) “Fiscal year” means 12 calendar months commencing on July 1
and ending on June 30 following.
(11) “Fund” means the Public Employees Retirement Fund.
(12)(a) “Member” means a person who has established membership in
the system and whose membership has not been terminated as described in
ORS 238.095. “Member” includes active, inactive and retired members.
(b) “Active member” means a member who is presently employed by a
participating public employer in a qualifying position and who has
completed the six-month period of service required by ORS 238.015.
(c) “Inactive member” means a member who is not employed in a
qualifying position, whose membership has not been terminated in the
manner described by ORS 238.095, and who is not retired for service or
disability.
(d) “Retired member” means a member who is retired for service or
disability.
(13)(a) “Member account” means the regular account and the variable
account.
(b) “Regular account” means the account established for each active
and inactive member under ORS 238.250.
(c) “Variable account” means the account established for a member
who participates in the Variable Annuity Account under ORS 238.260.
(14) “Normal retirement age” means:
(a) For a person who establishes membership in the system before
January 1, 1996, as described in ORS 238.430, 55 years of age if the
employee retires at that age as a police officer or firefighter or 58
years of age if the employee retires at that age as other than a police
officer or firefighter.
(b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of age if
the employee retires at that age as a police officer or firefighter or 60
years of age if the employee retires at that age as other than a police
officer or firefighter.
(15) “Pension” means annual payments for life derived from
contributions by one or more public employers.
(16) “Police officer” includes:
(a) Employees of institutions defined in ORS 421.005 as Department
of Corrections institutions whose duties, as assigned by the Director of
the Department of Corrections, include the custody of persons committed
to the custody of or transferred to the Department of Corrections and
employees of the Department of Corrections who were classified as police
officers on or before July 27, 1989, whether or not such classification
was authorized by law.
(b) Employees of the Department of State Police who are classified
as police officers by the Superintendent of State Police.
(c) Employees of the Oregon Liquor Control Commission who are
classified as enforcement officers by the administrator of the commission.
(d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the regular
duties of police officers or corrections officers.
(e) Police chiefs and police personnel of a city who are classified
as police officers by the council or other governing body of the city.
(f) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to county
employment under ORS 423.549 and adult parole and probation officers, as
defined in ORS 181.610, who are classified as police officers for the
purposes of this chapter by the county governing body. If a county
classifies adult parole and probation officers as police officers for the
purposes of this chapter, and the employees so classified are represented
by a labor organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
(g) Police officers appointed under ORS 276.021 or 276.023.
(h) Employees of the Port of Portland who are classified as airport
police by the Board of Commissioners of the Port of Portland.
(i) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of Agriculture.
(j) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than secretarial
or clerical personnel.
(k) Investigators of the Criminal Justice Division of the
Department of Justice.
(L) Corrections officers as defined in ORS 181.610.
(m) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as enforcement
agents pursuant to ORS 461.110.
(n) The Director of the Department of Corrections.
(o) An employee who for seven consecutive years has been classified
as a police officer as defined by this section, and who is employed or
transferred by the Department of Corrections to fill a position
designated by the Director of the Department of Corrections as being
eligible for police officer status.
(p) An employee of the Department of Corrections classified as a
police officer on or prior to July 27, 1989, whether or not that
classification was authorized by law, as long as the employee remains in
the position held on July 27, 1989. The initial classification of an
employee under a system implemented pursuant to ORS 240.190 does not
affect police officer status.
(q) Employees of a school district who are appointed and duly sworn
members of a law enforcement agency of the district as provided in ORS
332.531 or otherwise employed full-time as police officers commissioned
by the district.
(r) Employees at youth correction facilities and juvenile detention
facilities under ORS 419A.050, 419A.052 and 420.005 to 420.915 who are
required to hold valid Oregon teaching licenses and who have supervisory,
control or teaching responsibilities over juveniles committed to the
custody of the Department of Corrections or the Oregon Youth Authority.
(s) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody, control,
treatment, investigation or supervision of juveniles placed in such
facilities.
(t) Employees of the Oregon Youth Authority who are classified as
juvenile parole and probation officers.
(17) “Public employer” means the state, one of its agencies, any
city, county, or municipal or public corporation, any political
subdivision of the state or any instrumentality thereof, or an agency
created by one or more such governmental organizations to provide
governmental services. For purposes of this chapter, such agency created
by one or more governmental organizations is a governmental
instrumentality and a legal entity with power to enter into contracts,
hold property and sue and be sued.
(18) “Prior service credit” means credit provided under ORS 238.442
or under ORS 238.225 (2) to (6) (1999 Edition).
(19) “Qualifying position” means one or more jobs with one or more
participating public employers in which an employee performs 600 or more
hours of service in a calendar year, excluding any service in a job for
which a participating public employer does not provide benefits under
this chapter pursuant to an application made under ORS 238.035.
(20) “Retirement credit” means a period of time that is treated as
creditable service for the purposes of this chapter.
(21)(a) “Salary” means the remuneration paid an employee in cash
out of the funds of a public employer in return for services to the
employer, plus the monetary value, as determined by the Public Employees
Retirement Board, of whatever living quarters, board, lodging, fuel,
laundry and other advantages the employer furnishes the employee in
return for services.
(b) “Salary” includes but is not limited to:
(A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of deferral;
(B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of participation;
(C) Retroactive payments made to an employee to correct a clerical
error or pursuant to an award by a court or by order of or a conciliation
agreement with an administration agency charged with enforcing federal or
state law protecting the employee’s rights to employment or wages, which
shall be allocated to and deemed paid in the periods in which the work
was done or in which it would have been done; and
(D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
(c) “Salary” or “other advantages” does not include:
(A) Travel or any other expenses incidental to employer’s business
which is reimbursed by the employer;
(B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has no cash
option;
(C) Payments made on account of an employee’s death;
(D) Any lump sum payment for accumulated unused sick leave;
(E) Any accelerated payment of an employment contract for a future
period or an advance against future wages;
(F) Any retirement incentive, retirement severance pay, retirement
bonus or retirement gratuitous payment;
(G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services qualifying
pursuant to ORS 238.015 (3) will be performed, except for sick leave and
vacation;
(H) Payments for instructional services rendered to institutions of
the Department of Higher Education or the Oregon Health and Science
University when such services are in excess of full-time employment
subject to this chapter. A person employed under a contract for less than
12 months is subject to this subparagraph only for the months to which
the contract pertains; or
(I) Payments made by an employer for insurance coverage provided to
a domestic partner of an employee.
(22) “School year” means the period beginning July 1 and ending
June 30 next following.
(23) “System” means the Public Employees Retirement System.
(24) “Vested” means being an active member of the system in each of
five calendar years.
(25) “Volunteer firefighter” means a firefighter whose position
normally requires less than 600 hours of service per year. [Formerly
237.003; 1997 c.249 §64; 1997 c.853 §36; 1999 c.317 §24; 1999 c.407 §3;
1999 c.971 §1; 2001 c.295 §9; 2001 c.874 §1; 2001 c.945 §29a; 2001 c.968
§1; 2003 c.14 §112; 2003 c.67 §16; 2003 c.625 §20; 2005 c.152 §5; 2005
c.332 §1]Note: Section 3, chapter 332, Oregon Laws 2005, provides:
Sec. 3. The amendments to ORS 238.005 and 238A.005 by sections 1
and 2 of this 2005 Act apply only to members of the Public Employees
Retirement System who die on or after the effective date of this 2005 Act
[June 29, 2005]. [2005 c.332 §3]Note: Section 2, chapter 968, Oregon Laws 2001, provides:
Sec. 2. The amendments to ORS 238.005 by section 1 of this 2001 Act
apply to all service by an adult parole and probation officer that is
performed on and after the date that the adult parole and probation
officer is classified as a police officer for the purposes of ORS chapter
238 by the county governing body, whether that classification occurs
before, on or after the effective date of this 2001 Act [January 1,
2002]. [2001 c.968 §2]Note: Section 2, chapter 971, Oregon Laws 1999, provides:
Sec. 2. (1) The amendments to ORS 238.005 by section 1 of this 1999
Act apply only to persons specified in ORS 238.005 (16)(b) who are
employed by the State Forestry Department on the effective date of this
1999 Act [October 23, 1999] or who become employed by the State Forestry
Department after the effective date of this 1999 Act.
(2) Except as provided in subsection (3) of this section, the
amendments to ORS 238.005 by section 1 of this 1999 Act apply only to
service rendered to a participating public employer on or after the
effective date of this 1999 Act.
(3) Any employee who is employed by the State Forestry Department
in a position described in ORS 238.005 (16)(b) on the effective date of
this 1999 Act may acquire creditable service in the Public Employees
Retirement System as a firefighter for service performed by the employee
in a position described in ORS 238.005 (16)(b) before the effective date
of this 1999 Act by paying to the Public Employees Retirement Board an
amount determined by the board to represent the full cost to the system
of providing credit as a firefighter to the member. The member may
acquire credit as a firefighter for all or part of the service in a
position described in ORS 238.005 (16)(b) performed before the effective
date of this 1999 Act. All amounts required for acquisition of credit as
a firefighter under this subsection must be paid at least 90 days before
a member’s effective date of retirement. The board may by rule allow
members to pay amounts required under this subsection in installments in
lieu of requiring a single lump sum payment. [1999 c.971 §2]MEMBERSHIP(Membership Generally) (1) No person may become a member of
the system unless that person is in the service of a public employer and
has completed six months’ service uninterrupted by more than 30
consecutive working days during the six months’ period. Every employee of
a participating employer shall become a member of the system at the
beginning of the first full pay period of the employee following the six
months’ period. Contributions for new members shall first be made for
those wages that are attributable to services performed by the employee
during the first full pay period following the six months’ period,
without regard to when those wages are considered earned for other
purposes under this chapter. All public employers participating in the
Public Employees Retirement System established by chapter 401, Oregon
Laws 1945, as amended, at the time of repeal of that chapter, and all
school districts of the state, shall participate in, and their employees
shall be members of, the system, except as otherwise specifically
provided by law.
(2) Any active member of the Public Employees Retirement System
who, through the annexation of a political subdivision employing the
member or by change of employment, becomes the employee of another
political subdivision which is participating in the Public Employees
Retirement System and has also a separate retirement system for its
employees, shall remain an active member of the Public Employees
Retirement System unless, within 60 days after the effective date of the
annexation or change of employment or April 8, 1953, the member shall by
written notice to the Public Employees Retirement Board and to the
administrative body of the new public employer elect to relinquish
membership in the Public Employees Retirement System and become a member
of the separate retirement system of the employer, if eligible for
membership in that retirement system, and the member shall be so carried
by the new employer. Immediately upon such annexation of any political
subdivision or such change of employment, the new public employer shall
inform such employee in writing of the right of the employee to exercise
an election as in this section provided.
(3) A political subdivision (other than a school district) not
participating in the retirement system established by chapter 401, Oregon
Laws 1945, as amended, which employs one or more employees, each of whose
position requires 600 hours of service per year, or an agency created by
two or more political subdivisions to provide themselves governmental
services, which employs one or more employees, each of whose position
requires 600 hours of service per year, may, through its governing body,
notify the board in writing, that it elects to include its employees in
the system hereby established. Such public employer may request the board
to make a study and estimate of the cost of including it and its eligible
employees, other than volunteer firefighters, in the system, which the
board thereupon shall cause to be made and the cost of which the employer
shall bear. Upon completion of the study and estimate the employer may
apply for admission to the system, whereupon it shall begin to
participate therein and its eligible employees other than volunteer
firefighters shall become members of the system. If the employer is an
agency created by two or more political subdivisions to provide
themselves governmental services and ceases thereafter to transmit to the
board contributions for any of its eligible employees, the benefits based
upon employer contributions to which such employees would otherwise be
entitled shall be reduced accordingly.
(4) No inmate of a state institution or an alien on a training or
educational visa working for any participating employer, even though the
inmate or alien received compensation from a participating employer,
shall be eligible to become a member of the system. No person employed by
a participating employer and defined by such employer as a student
employee is eligible to become a member of the system for such student
employment.
(5) A person holding an elective office or an appointive office
with a fixed term or an office as head of a department to which the
person is appointed by the Governor may become a member of the system by
giving the board written notice of desire to do so within 30 days after
taking the office or, in the event that the officer is not eligible to
become a member of the system at the time of taking the office, within 30
days after becoming so eligible. Membership so established shall not be
discontinued during the appointive or elective term of the officer except
upon separation of the officer from service.
(6) A public employer employing volunteer firefighters may apply to
the board at any time for them to become members of the system. Upon
receiving the application the board shall fix a wage at which, for
purposes of this chapter only, they shall be considered to be employed
and which shall be the basis for computing the amounts of the
contributions, if any, which they pay into, and of the benefits which
they and their beneficiaries receive from, the fund; and if the wage so
fixed is satisfactory to the employer, shall include the firefighters in
the system.
(7)(a) In the event that an employee enters the service of a public
employer which is participating in or later begins to participate in the
system and in the event that at the time of entering that service or at
the time that the employer begins to participate in the system the
employee has commenced to purchase and is continuing to purchase a
retirement annuity, if the employer deems the annuity adequate for the
purposes of this chapter, it may enter into an agreement with the
employee and the board pursuant to which the employee may be exempted
from contributing to the Public Employees Retirement Fund, and, if no
public funds are being used to purchase the annuity or a corresponding
pension, the employer, in lieu of the contributions which it otherwise
would make to the fund on account of the employee, may make contributions
toward the cost of purchasing the annuity. Such employee otherwise shall
be subject to the provisions of this chapter, except that neither the
employee nor any person claiming under the employee shall receive any
payments from the retirement fund as service or disability allowance.
(b) An employee who enters into an agreement under paragraph (a) of
this subsection may elect at any time thereafter to start to participate
in the system by giving written notice of desire to participate to the
board and to the employer. The employee shall receive no retirement
credit for the period during which the employee was exempted from
contributing to the fund under the agreement, but the employee shall be
considered to have completed the six months’ service required for
membership in the system. When the employee starts to participate in the
system the employer shall start to contribute to the fund on account of
the employee in the same manner as the employer contributes on account of
other employees who are active members of the system and the employer
shall stop making contributions toward the cost of purchasing the
retirement annuity.
(8)(a) All new appointees in the Federal Cooperative Extension
Service or in any other service in which participation in the Federal
Civil Service retirement program is mandatory, who receive a federal
appointment on or after July 1, 1955, may participate in the Public
Employees Retirement System only by giving written notice of their
election to so participate to the Public Employees Retirement Board
within six months after the effective date of their appointment.
(b) All persons employed by the Federal Cooperative Extension
Service or by any other service in which participation in the Federal
Civil Service retirement program is mandatory, who are under federal
appointment as of July 1, 1955, and who are members of the state
retirement system, shall continue such membership unless, prior to
February 1, 1956, they give written notice to the Public Employees
Retirement Board of their desire to cancel their membership.
(c) Any person who is an active member of the Public Employees
Retirement System, who, on or after July 1, 1955, is employed by the
Federal Cooperative Extension Service or by any other service in which
participation in the Federal Civil Service retirement program is
mandatory, and who is given a federal appointment, shall continue such
membership in the Public Employees Retirement System unless, within six
months after the effective date of the appointment, the person gives
written notice to the Public Employees Retirement Board of the desire to
cancel membership.
(d) A cancellation of membership under paragraph (b) or (c) of this
subsection terminates membership in the Public Employees Retirement
System and cancels the right to any benefits from, or claims against,
that system. Such cancellation prevents the withdrawing member from
claiming thereafter any retirement credit for any period of employment
before the cancellation. Upon receipt of a notice of cancellation, the
Public Employees Retirement Board shall refund the member account of the
withdrawing member, regardless of the age of the withdrawing member.
(9) Employees, including managers, of foreign trade offices of the
Economic and Community Development Department who live and perform
services in foreign countries under the provisions of ORS 285A.090 (13)
shall not be members of the system. However, any person who is an active
member of the system immediately before becoming an employee of a foreign
trade office shall continue to be a member of the system during the
period of time the person serves as an employee of the foreign trade
office.
(10) An employee who is participating in an alternative retirement
program established pursuant to ORS 353.250 or an optional retirement
plan established pursuant to ORS 341.551 may not be an active member of
the Public Employees Retirement System. [Formerly 237.011; 1997 c.249
§65; 1999 c.130 §4; 1999 c.509 §23; 2001 c.192 §1; 2001 c.883 §41; 2001
c.945 §30; 2003 c.67 §17; 2005 c.152 §6; 2005 c.728 §3] Within the
limits hereinafter specified regarding absence from service, no leave of
absence, sabbatical leave, illness, accident or emergency preventing or
interrupting service by an employee to an employer participating in the
system shall be deemed to break the continuity of the employee’s
membership in the system. [Formerly 237.091](1) A public employer that is not participating in the system
may, by application to the board, designate any class of employees of the
public employer to become members of the system at the time of entering
the system.
(2) The board shall consider an application received under this
section to be an application to become a participating employer under
this chapter, but only to the extent of providing membership for the
class of employees designated in the application.
(3) The board, upon such terms as are set forth in a contract
between the board and the employer, shall allow every employee in the
designated class to become members of the Public Employees Retirement
System in accordance with this chapter. A contract entered into under
this section shall require the public employer to agree to eventually
contract to provide membership to all of the employees who do not become
members of the system at the time that the employer becomes a
participating employer.
(4) All employees who have completed the period of service with the
public employer that is required under ORS 238.015 shall become members
of the system on a date specified by the board. All other employees in
the designated class shall become members upon completion of the required
period of service.
(5) The contract provided for in subsection (3) of this section may
be in addition to or in lieu of a contract of integration under ORS
238.680.
(6) An employer entering into a contract under subsection (3) of
this section may at any time thereafter enter into a contract with the
board to provide membership to all or part of the employees who do not
become members of the system at the time that the employer becomes a
participating employer. Except as may be provided for prior service
credit, or under a contract of integration under ORS 238.680, employees
shall receive no retirement credit for the period during which the
employee was exempted from contributing to the fund under the agreement,
but the employee shall be considered to have completed the six months’
service required for membership in the system if the employee has served
with the employer for at least six months. When the employee starts to
participate in the system the employer shall start to contribute to the
fund on account of the employee in the same manner as the employer
contributes on account of other employees who are members of the system.
[Formerly 237.031; 2001 c.945 §31] Each circuit
court judge who was a district court judge before January 15, 1998, and
who is a member of the Public Employees Retirement System shall be
governed by the provisions of this chapter applicable to other persons
holding elective offices who may become members of the system. [Formerly
237.013](1) On August 1, 1991, all judges receiving
retirement pay from the Judges’ Retirement Fund and all surviving spouses
of judges receiving a pension from the Judges’ Retirement Fund shall be
retired members of the Public Employees Retirement System, except that:
(a) The amount of retirement pay or pension payable to the judge or
surviving spouse of a judge and the terms and conditions of eligibility
to receive retirement pay or a pension shall be as established by ORS
1.314 to 1.380 (1989 Edition); and
(b) The right of any person to receive any benefit as a result of
the death of a judge by reason of the provisions of ORS 1.314 to 1.380
(1989 Edition) shall solely be as provided by ORS 1.314 to 1.380 (1989
Edition).
(2) After August 1, 1991, any judge who would have become eligible
to receive retirement pay from the Judges’ Retirement Fund shall, upon
retirement, be a retired member of the Public Employees Retirement
System, except that:
(a) The amount of retirement pay or pension payable to the judge or
the surviving spouse of the judge and the terms and conditions of
eligibility to receive retirement pay or a pension shall be as
established by ORS 1.314 to 1.380 (1989 Edition); and
(b) The right of any person to receive any benefit as a result of
the death of the judge by reason of the provisions of ORS 1.314 to 1.380
(1989 Edition) shall solely be as provided by ORS 1.314 to 1.380 (1989
Edition).
(3) On August 1, 1991, the Judges’ Retirement Fund shall cease to
exist as a separate fund and the assets and earnings of the Judges’
Retirement Fund shall be paid into the employer reserves for judge
members of the Public Employees Retirement Fund. The Public Employees
Retirement Board shall continue to keep a separate regular account for
any person who may become eligible to receive a retirement benefit under
subsection (2) of this section and for any person whose child or children
may become entitled to a benefit under ORS 1.346 (1989 Edition).
(4) Upon deposit of the assets and earnings of the Judge’s
Retirement Fund as provided under subsection (3) of this section, the
Public Employees Retirement Board shall cause to be deposited from the
employer reserves for judge members to the retired reserves of the Public
Employees Retirement Fund, the amount actuarially determined to be
necessary to fund the retirement pay and pensions of those judges and
surviving spouses of judges who were receiving retirement pay or a
pension from the Judges’ Retirement Fund on August 1, 1991.
(5) The amount of retirement pay or pension payable to a judge or
spouse of a retired judge who previously received retirement pay or a
pension from the Judges’ Retirement Fund, or who would have received
retirement pay or a pension from the Judges’ Retirement Fund, shall not
be recalculated or affected in any way based on the provisions of ORS
chapter 238, nor shall the eligibility of a judge or surviving spouse of
a judge to receive retirement pay or a pension be affected by ORS chapter
238.
(6) The provisions of ORS 238.390, 238.395, 238.400 and 238.500 to
238.585 do not apply to a judge or surviving spouse of a judge who
received retirement pay or a pension from the Judges’ Retirement Fund
prior to August 1, 1991, or to a judge who retires as a member of the
Public Employees Retirement System under subsection (2) of this section.
(7) Any person who served as a judge before August 1, 1991, who had
amounts deducted from the person’s salary while serving as a judge for
the purpose of making contributions to the Judges’ Retirement Fund, and
who is not eligible to become a retired member of the Public Employees
Retirement System under this section, may withdraw the amounts deducted
from the person’s salary, with all earnings on those deductions, at any
time after May 24, 2003. Withdrawal under this subsection cancels all
rights the person may have in the Judges’ Retirement Fund or the Public
Employees Retirement System, and the rights that any spouse or
beneficiary of the person may have in the Judges’ Retirement Fund or the
Public Employees Retirement System, by reason of service by the person as
a judge for which contributions were made to the Judges’ Retirement Fund.
[Formerly 237.039; 2001 c.945 §32; 2003 c.90 §1] Any deputy
district attorney receiving any compensation from the state or from a
county participating in the Public Employees Retirement System shall
establish membership in the system after service for six months without
having been absent 30 working days. Any contributions required to be paid
by any such deputy district attorney shall be based on salary paid by the
state, by a county participating in the system or by both. The
application of this chapter to any such deputy district attorney made
prior to the effective date of this section by the Public Employees
Retirement Board hereby is confirmed and ratified. [Formerly 237.025;
2003 c.67 §18](1) Notwithstanding ORS 238.015,
any person who is a member of the Legislative Assembly at any time on or
after September 13, 1975, and before January 1, 1988, regardless of
whether the person has reached the age of 65 years, may become a member
of the Public Employees Retirement System by giving the Public Employees
Retirement Board, before January 1, 1990, written notice of desire to do
so. The written notice shall take effect on the first day of the month
following the date of receipt thereof by the board or upon the person’s
completion of six months’ service, whichever occurs last.
(2) Notwithstanding any other provision of this chapter, any person
who is a member of the Legislative Assembly and a member of the system,
and any person who is not a member of the Legislative Assembly but was a
member thereof before January 11, 1987, upon payment to the board before
July 1, 1991, of the total amount of the employee contributions the
person would have made to the Public Employees Retirement Fund for all
periods of service as a member of the Legislative Assembly before the
date of that payment for which the person was not a member of the system,
is entitled to retirement credit for those periods served as a member of
the Legislative Assembly, including those periods after reaching the age
of 65 years, that the person would have been entitled to had the person
been a member of the system for those periods. Employee contributions to
be paid by a person under this subsection may be paid at the option of
the person in a lump sum or in installments. If the person is a member of
the Legislative Assembly, upon request by the person in writing to the
state official authorized to disburse funds in payment of the salary of
the person as a member of the Legislative Assembly, the state official
shall deduct monthly from that salary the amount of money indicated in
the request for payment of employment contributions under this subsection
and shall pay amounts so deducted to the board.
(3) Notwithstanding any other provision of this chapter, any person
who is a member of the Legislative Assembly and a member of the system,
and any person who is not a member of the Legislative Assembly but was a
member thereof before January 9, 1989, who previously had been employed
by an employer participating in the system, but had separated from all
service with that employer entitling the employee to membership in the
system and withdrawn the amount credited to the member account of the
member, may have all of the rights in the system which were forfeited by
the withdrawal restored by repaying to the board by July 1, 1991, the
full amount so withdrawn together with the interest that would have
accumulated on the sum had the amount not been withdrawn. [Formerly
237.029; 2001 c.945 §33] An employee
shall not be considered to have ceased to be a member of the system under
ORS 238.095 (2) by reason of any year in which the employee is employed
by the Legislative Assembly or either house thereof, or by a committee of
the Legislative Assembly or either house thereof, for periods aggregating
eight months or more during the year, whether or not contributions are
made to the fund by or on behalf of the employee for those periods of
employment, unless the employee withdraws the amount credited to the
member account of the member. [Formerly 237.019; 2001 c.945 §34] An academic
employee of a community college who is employed 0.375 full-time
equivalent (FTE) on a 12-month basis or 0.50 FTE on a nine-month basis
shall be deemed to be employed for 600 hours or more in a year for
purposes of this chapter. The combination of duties that comprises a 1.0
FTE in any given discipline or academic activity shall be determined by
the governing body of the institution in which the academic employee is
employed. Nothing in this section is intended to affect the rights of
academic employees at institutions of higher learning or academic
employees employed in public secondary or elementary schools. [Formerly
237.017 (3)](Membership of Retired Employees) (1)(a) A retired member
who has been retired for more than six consecutive calendar months may be
reemployed by a participating public employer in the manner provided by
this subsection.
(b) Any person reemployed as provided in this subsection shall
resume making contributions to the retirement fund, and the employer
shall make contributions on behalf of the person as provided in ORS
238.225. Payments of retirement allowance received by such person during
separation from the service shall not be repaid into the retirement fund
after the person reenters public employment except as provided in
paragraph (c) of this subsection; but the amount of such payment shall be
deducted from such employee’s reserve in the retirement fund and the
remainder shall be credited pro rata to the funds from which it was
derived.
(c) Upon reentering public employment as provided in this
subsection, the former retirement of such person and any election of
option for payment of retirement benefits theretofore made by the person
shall be canceled; and thereafter upon retiring such person may elect any
option for payment of retirement benefits authorized by this chapter,
except that a person who elected to receive lump sum payment of benefits
pursuant to ORS 238.305 (2) or (3) at the time of former retirement may
not elect any other option at the time of subsequent retirement unless an
amount equal to the lump sum and the interest that would have accumulated
on the sum has been repaid by the employee to the fund. Upon such
subsequent retirement any prior service pension due the employee shall be
derived from the unused portion of the prior service credit reserve and
shall be calculated on the basis of then attained age.
(2) A retired member who has been retired for less than six
consecutive calendar months may be reemployed by a participating public
employer only upon immediate repayment in a lump sum by the member of the
amount of retirement benefits drawn. The member account of the member
shall be reestablished just as it was at the time of earlier retirement
after the lump sum repayment is made.
(3) If a member of the system who retired before August 21, 1981,
is reemployed, as provided in subsection (1) or (2) of this section,
beginning on or after August 21, 1981, the service retirement allowance
received upon subsequent retirement by the member shall be:
(a) For service before August 21, 1981, an allowance including a
current service pension computed on the basis of ORS 237.147 (2) (1979
Replacement Part).
(b) For service on or after August 21, 1981, an allowance including
a current service pension computed on the basis of ORS 238.300 (2).
(4) A person may be reemployed by a public employer that is not
participating in the system, or may be employed by a participating public
employer in a position that is in a class of employees that was not
designated by the public employer under ORS 238.035 as a class of
employees that become members of the system, without affecting the
person’s status as a retired member or the person’s continued receipt of
retirement benefits.
(5) Subsection (4) of this section does not apply to any member who
retires under the provisions of ORS 238.280 (1) or (2). [Formerly
237.125; 2001 c.945 §10; 2003 c.625 §33a; 2005 c.808 §39] (1)
Subject to the limitations in subsection (2) of this section, any public
employer may employ any person receiving a service retirement allowance
if the administrative head of such employer is satisfied that such
employment is in the public interest.
(2) The period or periods of employment by one or more public
employers of any person receiving a service retirement allowance may not
total 1,040 hours or more in any calendar year; but if the person is
receiving old-age, survivors or disability insurance benefits under the
federal Social Security Act, the person may be employed for the number of
hours for which the salary equals the maximum allowed for receipt of the
full amount of those benefits to which the person is entitled.
(3) The limitations on employment imposed by subsection (2) of this
section do not apply to a retired member who is employed as a teacher or
as an administrator, as those terms are defined in ORS 342.120, if the
retired member is employed by a school district or education service
district that has its administrative office located within a county with
a population of not more than 35,000 inhabitants according to the latest
federal decennial census. A retired member who is employed as a teacher,
as defined in ORS 342.120, by the same public employer that employed the
member at the time of retirement remains in the same collective
bargaining unit that included the member before retirement.
(4) The limitations on employment imposed by subsection (2) of this
section do not apply to a retired member who is employed:
(a) By the sheriff of a county with a population of fewer than
75,000 inhabitants, according to the latest federal decennial census;
(b) By the municipal police department of a city with a population
of fewer than 15,000 inhabitants, according to the latest federal
decennial census;
(c) By the state or a county for work in a correctional institution
located in a county with a population of fewer than 75,000 inhabitants,
according to the latest federal decennial census;
(d) By the Black Butte Ranch Rural Fire Protection District, the
Black Butte Ranch Service District or the Sunriver Service District; or
(e) By the Oregon State Police for work in a county with a
population of fewer than 75,000 inhabitants, according to the latest
federal decennial census.
(5) The limitations on employment imposed by subsection (2) of this
section do not apply to a retired member who is employed to temporarily
replace an employee who serves in the National Guard or in a reserve
component of the Armed Forces of the United States and who is called to
federal active duty.
(6) The limitations on employment imposed by subsection (2) of this
section do not apply to a retired member who is employed by a road
assessment district organized under ORS 371.405 to 371.535.
(7) Subsections (3) to (6) of this section do not apply to any
member who retires under the provisions of ORS 238.280 (1) or (2).
(8) Employment under this section does not affect the status of a
person as a retired member of the system and a recipient of retirement
benefits under this chapter. [Formerly 237.143; 1997 c.178 §1; 2001 c.874
§2; 2003 c.625 §34; 2005 c.808 §40]
(1) Except as provided in subsection (2) of this section, a person who is
elected to a full-time salaried office of the state or one of the
participating political subdivisions thereof, or who is appointed to a
full-time salaried office having a term fixed by statute or charter,
whether or not the person has been retired, does not forfeit any rights
accrued or accruing to the person under this chapter. However, for the
period that such person holds such office the person is not entitled to
any pension or annuity provided by this chapter. Upon ceasing to hold
such office, benefits shall be computed or recomputed by the Public
Employees Retirement Board on the basis of age then attained.
(2) If a person is elected or appointed to the office of sheriff or
county judge or commissioner in a county with a population of fewer than
75,000 inhabitants, according to the latest federal decennial census, and
the person does not elect to become an active member of the system under
ORS 238.015 (5), the person shall continue to be a retired member and to
receive retirement benefits for as long as the person holds the office.
(3) Subsection (2) of this section does not apply to any member who
retires under the provisions of ORS 238.280 (1) or (2). [Formerly
237.133; 2003 c.625 §35a; 2005 c.152 §7; 2005 c.808 §41](1) Notwithstanding any other provision of this
chapter:
(a) A retired member of the system who has retired as other than a
member of the Legislative Assembly and who thereafter becomes a member of
the Legislative Assembly and elects to become an active member of the
system as a member of the Legislative Assembly may also elect, by giving
the board written notice of desire to do so, to receive the pension and
annuity provided by this chapter for service as other than a member of
the Legislative Assembly, and be an active member of the system as a
member of the Legislative Assembly for the period the member holds office
as a member of the Legislative Assembly. The notice provided for in this
paragraph shall be given within 30 days after the retired member takes
office as a member of the Legislative Assembly.
(b) A member of the Legislative Assembly who is a member of the
system as a member of the Legislative Assembly and who becomes eligible
to retire by reason of service as other than a member of the Legislative
Assembly, without regard to when that service was performed, may elect,
by giving the board written notice of desire to do so, to retire and
receive the pension and annuity provided by this chapter for service as
other than a member of the Legislative Assembly, and to continue, for the
period the member holds office as a member of the Legislative Assembly,
as an active member of the system as a member of the Legislative Assembly.
(c) Upon receipt of the notice provided for in paragraphs (a) and
(b) of this subsection, the board shall determine that portion of the
accumulated contributions, if any, of the member and interest thereon
attributable to service as other than a member of the Legislative
Assembly, which shall be used in determining the amount of the annuity
the member shall receive for that service. The portion of the accumulated
contributions, if any, of the member and interest thereon attributable to
service as a member of the Legislative Assembly shall remain in the
member account of the member and, together with any subsequent
contributions and interest thereon, be used in determining the amount of
the additional annuity the member shall receive for that service upon
ceasing to hold office as a member of the Legislative Assembly. If the
member does not have a member account, the board shall determine the
member’s retirement allowance for nonlegislative service based on the
number of years of nonlegislative service, and shall determine any
additional benefit to be received after the member ceases to hold office
as a member of the Legislative Assembly based on the number of years of
service in the Legislative Assembly.
(2) Notwithstanding any other provision of this chapter, a person
who has reached the age of 65 years, whether or not previously employed
by a public employer and whether or not a retired member of the system,
may be employed by the Legislative Assembly, either house thereof or the
Oregon State Police for all or any part of a regular or special session
of the Legislative Assembly. A person employed under this subsection:
(a) Unless an active member of the system continuing in employment
past the age of 65 years, does not accrue any retirement benefits, and
contributions may not be made by or on behalf of the person.
(b) If a retired member of the system, is entitled, during the
period of such employment, to any pension or annuity provided by this
chapter. [Formerly 237.145; 2001 c.945 §35; 2003 c.67 §19](Termination of Membership) (1) An employee shall cease to
be a member of the Public Employees Retirement System if the employee
withdraws the member account, if any, of the member in the manner
provided by ORS 238.265.
(2) Except as provided in subsection (3) of this section, an
inactive member ceases to be a member of the system if the member is not
vested and is inactive for a period of five consecutive years.
(3) A school district employee does not cease to be a member of the
system under subsection (2) of this section if:
(a) After completing a school year, the member is inactive for the
next following five school years; and
(b) The member either is reemployed by a school district in a
qualifying position at the beginning of the sixth school year, or reaches
earliest service retirement age before the beginning of the sixth school
year.
(4) Interest shall not accrue on the amount in the member account
of the former member from the date that membership is terminated under
subsection (2) of this section. Upon request by the former member, the
Public Employees Retirement Board shall pay the amount in a member
account to a former member upon the termination of the membership of the
former member under subsection (2) of this section if the former member
is separated from all service with employers who are treated as part of a
participating public employer’s controlled group under the federal laws
and rules governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and trust.
The board may deduct, from the amount paid to a former member under this
subsection, all reasonable costs incurred by the system in locating the
member. [Formerly 237.109; 1999 c.317 §7; 2001 c.945 §36; 2003 c.67 §20;
2003 c.105 §1; 2005 c.152 §4]RETIREMENT CREDIT(Restoration of Forfeited Credit)Whenever, within five years after the employee is separated
from all service entitling the employee to membership in the system, an
employee who has withdrawn the amount credited to the member account of
the member reenters the service of an employer participating in the
system, the employee’s rights in the system that were forfeited by the
withdrawal shall be restored upon repaying to the board within one year
after reentering the service of the employer, the full amount so
withdrawn together with the interest that would have been accumulated on
the sum had the amount not been withdrawn. [Formerly 237.111 (3); 2001
c.945 §37](1)(a) A member of the system who, after
separation from all service entitling the employee to membership in the
system and withdrawal of the amount credited to the member account of the
member, reenters the service of an employer participating in the system
and serves as an active member of the system for 10 years after that
reentry, and who has not otherwise obtained restoration of creditable
service forfeited by the withdrawal, shall obtain restoration of one full
month of creditable service forfeited by the withdrawal for each three
full months of service as an active member after that reentry if the
member, within 90 days before the effective date of retirement of the
member:
(A) Applies in writing to the board for restoration of creditable
service; and
(B) Pays to the board in a lump sum for credit to the member
account of the member the amount withdrawn and interest on the amount
withdrawn compounded annually for each year or portion of a year after
the date of the withdrawal and before the effective date of retirement of
the member. The interest shall be computed at the annual rate of 7.5
percent.
(b) If a member who obtains restoration of creditable service as
provided in this subsection does not obtain restoration of all creditable
service forfeited by the withdrawal pursuant to service after reentry,
the payment under paragraph (a) of this subsection shall be reduced
proportionately to reflect the percentage of creditable service restored.
(c) A member who obtains restoration of creditable service as
provided in this subsection is not entitled to elect to receive the
service retirement benefit described in ORS 238.305 (2) or (3).
(2) A member who forfeited creditable service rendered to a public
employer before March 27, 1953, because under ORS 237.976 (2) the
employee withdrew contributions of the employee to the Public Employees
Retirement System established by chapter 401, Oregon Laws 1945, and who
did not obtain restoration of creditable service so forfeited as provided
in chapter 857, Oregon Laws 1977, shall, upon retirement, receive
restoration of creditable service so forfeited, if the member, before the
effective date of retirement of the member:
(a) Applies in writing to the board for the restoration of the
creditable service; and
(b) Pays to the board in a lump sum for credit to the member
account of the member an amount determined by the board to be equal to
the full amount of contributions so withdrawn and the interest that would
have accumulated to the regular account of the member had those
contributions not been withdrawn.
(3)(a) A member of the Public Employees Retirement System who was a
member of an association established pursuant to ORS chapter 239 (1997
Edition), but separated from all service entitling the employee to
membership in the system of the association and withdrew the amount
credited to the member account of the employee in the retirement fund of
the association, and who, after that separation, entered the service of
an employer in the field of education participating in the Public
Employees Retirement System and served as an active member of that system
for 10 years after that entry, and who has not otherwise obtained
restoration of all creditable service forfeited by the withdrawal, shall
obtain creditable service as a member of the Public Employees Retirement
System equal to all creditable service forfeited by the withdrawal if the
member within 90 days before the effective date of retirement of the
member:
(A) Applies in writing to the Public Employees Retirement Board for
that creditable service; and
(B) Pays to the board in a lump sum for credit to the member
account of the member the amount withdrawn and interest on the amount
withdrawn compounded annually for each year or portion of a year after
the date of the withdrawal and before the effective date of retirement or
effective date of application of the member. The interest shall be
computed at the rate actually credited to regular accounts for that
period.
(b) This subsection provides a method of obtaining creditable
service for forfeited creditable service described in this subsection
that is in lieu of any application of subsection (1) of this section for
that purpose. [Formerly 237.108; 1999 c.130 §5; 2001 c.945 §§11,38](Credit for Probationary Periods) A member of
the system who has a combined total of 10 years or more of creditable
service in the system and prior service credit at the time of retirement,
and who was required to complete one or more periods of six months or
less in the service of an employer participating in the system before
becoming a member of the system, shall receive retirement credit for
those periods of six months or less if the member, within 90 days before
the effective date of retirement of the member, applies in writing to the
board for that retirement credit and pays to the board in a lump sum an
amount determined by the board to be equal to:
(1) The total amount of employee contributions to the fund by or on
behalf of the employee that would have been required for the six months’
period if the employee had been a member of the system during that
period, which amount shall be credited to the regular account of the
member; and
(2) The total amount of employer contributions to the fund the
employer of the employee would have been required to make in respect to
the employee if the employee had been a member of the system during the
six months’ period, which amount shall be credited to the reserve for
pension accounts in the fund. [Formerly 237.117; 2001 c.945 §39] (1)
A member of the system who has 10 years or more of creditable service in
the system at the time of retirement, and who served for less than six
months working full-time in a seasonal position with a public employer
participating in the system before becoming a member of the system, shall
receive retirement credit for those periods of less than six months if
the member, within 90 days before the effective date of retirement of the
member, applies in writing to the board for that retirement credit and
pays to the board in a lump sum an amount determined by the board to be
equal to:
(a) The total amount of employee contributions to the fund by or on
behalf of the employee that would have been required for the six months’
period if the employee had been a member of the system during that
period, plus interest at the rate of eight percent per annum from the
date the contributions would have been made, which amount shall be
credited to the regular account of the member; and
(b) The total amount of employer contributions to the fund the
employer of the employee would have been required to make in respect to
the employee if the employee had been a member of the system during the
six months’ period, plus interest at the rate of eight percent per annum
from the date the contributions would have been made, which amount shall
be credited to the reserve for pension accounts in the fund.
(2) As used in this section, “seasonal position” means an
apprenticeship, internship or entry level role in the employ of a
participating public employer that is served by a person before being
employed in a technical or professional position with that public
employer.
(3) No retirement credit shall be allowed under this section for
any period of employment for which retirement credit is acquired under
ORS 238.125. [Formerly 237.119; 2001 c.945 §40](Credit for Periods of Service With Other Employers)(1) A member of the system employed as a
police officer or firefighter shall be entitled to receive retirement
credit as provided in subsection (3) of this section if:
(a) The member was employed by a public employer as a police
officer or firefighter prior to becoming a member of the system;
(b) The public employer that had previously employed the member was
not a participant in the system at the time the member was in the service
of that public employer; and
(c) The public employer that had previously employed the member was
located in this state.
(2) In addition to the requirements of subsection (1) of this
section, if the member first becomes a member of the system on or after
January 1, 2000, as described in subsection (5) of this section, the
member must have been a member of the system for at least 60 calendar
months at the time the purchase is made.
(3) Except as provided in subsection (4) of this section, a member
of the system employed as a police officer or firefighter who meets the
requirements of this section shall be entitled to receive retirement
credit for the period of employment with a previous public employer as
described in subsection (1) of this section up to a maximum of 10 years’
retirement credit if the member:
(a) Applies in writing to the Public Employees Retirement Board for
such retirement credit; and
(b) Pays to the board, in a lump sum, an amount representing the
contributions the member and the member’s employer would have made for
the years for which the member seeks retirement credit calculated as
though the member had received a salary for each of those years equal to
the salary received by the member in the first full calendar year of
employment as a police officer or firefighter within the system. In
addition, the member shall pay the interest that would have accrued had
the contributions been paid in the years for which the member seeks
retirement credit, compounded annually. The interest shall be computed at
the annual rate of eight percent. Payment of the lump sum shall be made
on or before the effective date of retirement for the member. The amounts
representing the contributions the member would have made and the
interest on those amounts shall be credited to the regular account of the
member. The amounts representing the contributions the employer would
have made and the interest on those amounts shall be credits to the
account of the member’s current participating employer.
(4) If a person first becomes a member of the system on or after
January 1, 2000, as described in subsection (5) of this section, the
person may not acquire more than five years of credit under this section
in combination with any credit acquired under ORS 526.052 for periods of
service with another employer that entitle the employee to retirement
credit under a retirement plan offered by the other employer. If a person
subject to limitation imposed by this subsection also is eligible for
credit under ORS 526.052, the total years of credit that may be acquired
under this subsection and ORS 526.052 may not exceed five years.
(5) A person becomes a member of the system before January 1, 2000,
for the purposes of this section if:
(a) The person is a member of the system on January 1, 2000; or
(b) The person was a member of the system before January 1, 2000,
ceased to be a member of the system under the provisions of ORS 238.095,
238.265 or 238.545 before January 1, 2000, but restores part or all of
the forfeited creditable service from before January 1, 2000, under the
provisions of ORS 238.105 or 238.115 after January 1, 2000. [Formerly
237.099; 1999 c.317 §12; 2001 c.945 §41](1)
Notwithstanding any other provision of this chapter, but subject to
subsection (4) of this section, an employee who leaves a qualifying
position for the purpose of performing service in the uniformed services
is entitled to receive contributions, benefits and service credit for the
period under rules adopted by the Public Employees Retirement Board
pursuant to subsection (2) of this section.
(2) The board shall adopt rules establishing contributions,
benefits and service credit for any period of service in the uniformed
services by an employee described in subsection (1) of this section. For
the purpose of adopting rules under this subsection, the board shall
consider and take into account all federal law relating to contributions,
benefits and service credit for any period of service in the uniformed
services. Contributions, benefits and service credit under rules adopted
by the board pursuant to this subsection may not exceed contributions,
benefits and service credit required under federal law for periods of
service in the uniformed services.
(3) Subject to subsection (4) of this section, an employee who
leaves a qualifying position for the purpose of entering or reentering
active service in the Armed Forces shall acquire retirement credit for
the period during which the employee served in the Armed Forces if:
(a) The employee returns to the service of the employer who
employed the employee immediately before commencing service in the Armed
Forces in a qualifying position;
(b) The employee returns to that employment within one year after
being otherwise than dishonorably discharged from the Armed Forces and
within five years after the date that the employee entered or reentered
active service in the Armed Forces; and
(c) After returning to employment and before retirement, the
employee pays to the Public Employees Retirement Board in a lump sum six
percent of the salary that would have been paid to the member during the
period of military service in the Armed Forces based on the employee’s
salary rate at the time the employee entered or reentered the Armed
Forces, as though the employee had remained in the employment of the
employer. Any lump sum contribution made under this paragraph shall be
added to the employee’s regular account and in all respects shall be
considered as though made by payroll deduction.
(4) An employee may not receive benefits under both subsections (1)
and (3) of this section for the same period of service in the Armed
Forces or uniformed services. If an employee is entitled to benefits
under both subsections (1) and (3) of this section by the terms of those
provisions, the employee shall receive benefits under the subsection that
provides the greater benefit.
(5) For the purposes of this section, “Armed Forces” means the
Army, Navy, Air Force, Marine Corps and Coast Guard. [1997 c.175 §2
(enacted in lieu of 238.155); 2001 c.945 §42; 2003 c.625 §21; 2003 c.733
§51a; 2005 c.152 §8](1) Any person who entered or reentered active
service in the Armed Forces of the United States after January 1, 1950,
for other than active duty for training, or who was in active service in
the Armed Forces of the United States on January 1, 1950, for other than
active duty for training, and who, after being other than dishonorably
discharged therefrom, entered the employ of an employer participating in
the Public Employees Retirement System, may acquire retirement credit for
up to four years of active service in the Armed Forces by paying in a
lump sum to the Public Employees Retirement Board within 90 days of the
member’s effective date of retirement an amount determined by the board
to represent the full cost to the system of providing the retirement
credit to the member, including all administrative costs incurred by the
system in processing the application for acquisition of the retirement
credit.
(2) No person shall receive retirement credit under this section
for any period of service with the Armed Forces of the United States for
which that person receives credit under the provisions of ORS 238.156 or
for which the person is receiving or entitled to receive a pension or
retirement pay under a public retirement system established by the United
States for the performance of service in the Armed Forces.
(3) Any person acquiring retirement credit under this section may
elect to have the service retirement allowance of the person determined
under any calculation for which the person is eligible under ORS 238.300,
even if the calculation does not produce the largest service retirement
allowance. An election under this subsection must be made within 90 days
of the member’s effective date of retirement. [1997 c.578 §2; 2003 c.105
§2; 2005 c.808 §26 ]Note: Section 27, chapter 808, Oregon Laws 2005, provides:
Sec. 27. The amendments to ORS 238.157 by section 26 of this 2005
Act apply only to members of the Public Employees Retirement System who
have an effective date of retirement that is on or after the effective
date of this 2005 Act [November 4, 2005]. [2005 c.808 §27]Any employee of an employer participating in the system shall
receive retirement credit, subject to the limitations of this chapter,
for the period of employment with the participating employer prior to
July 1, 1946, and for employment in any branch or department of the
United States Government, and for military service in the Armed Forces of
the United States, as though the person had been an employee of the
participating employer throughout such period of employment or service,
if within 40 days from and after separation from such civilian employment
with the United States Government, or within one year after being
otherwise than dishonorably discharged from military service in the Armed
Forces of the United States, the person returned to the employment of the
participating employer from which the person was transferred or loaned,
provided that such employee comes within either of the following
descriptions:
(1) Prior to employment with the United States Government, the
person was employed by the participating employer and was transferred or
loaned to a branch or department of the United States Government pursuant
to an agreement between such participating employer and such branch or
department of the United States Government for the transfer or loan of
any departmental unit of such participating employer to the federal
government during the war emergency.
(2) Served in any branch of the Armed Forces of the United States
while on military leave of absence from a position in federal government
employment as set forth in subsection (1) of this section. [Formerly
237.097](1) A member of the Public Employees Retirement System
who is a teacher as described in subsection (3) of this section is
entitled to receive retirement credit as provided in subsection (2) of
this section if:
(a) The member was employed as a teacher in a public school in
another state before being employed in a position that entitled the
member to credit in the system; and
(b) The member makes the payment required by subsection (2) of this
section within the time specified by that subsection.
(2) Except as provided in subsection (4) of this section, a member
of the system employed as a teacher as described in subsection (3) of
this section and who meets the requirements of subsection (1) of this
section is entitled to receive retirement credit for the period of the
member’s service with a public school in another state, not to exceed a
maximum of four years, if the member within 90 days of the member’s
effective date of retirement:
(a) Applies in writing to the Public Employees Retirement Board for
such retirement credit;
(b) Provides written verification to the board from the public
employer that employed the member in the other state, verifying the
period of time that the member served as a teacher in a public school in
the other state; and
(c) Pays to the board, in a lump sum, for each year of retirement
credit applied for under this section, an amount determined by the board
to represent the full cost to the system of providing the retirement
credit to the member, including all administrative costs incurred by the
system in processing the application for acquisition of the retirement
credit.
(3) The provisions of this section apply only to a licensed
teacher, as defined in ORS 342.120, who is employed by a common school
district, a union high school district or an education service district.
(4) A member may not receive retirement credit under the provisions
of this section for any period of service with a public school in another
state if the member is entitled to a pension or retirement allowance by
reason of that service under a public plan or system offered by the other
state. [1997 c.742 §2; 2003 c.105 §3](Miscellaneous)(1) As used in this section, “legislative employee” means any
person employed by the Legislative Assembly, either of its houses or any
of its committees prior or subsequent to July 22, 1973, during any period
or periods of such employment qualifying the person for membership and
participation in the Public Employees Retirement System under the
provisions of this chapter then in effect. “Legislative employee” does
not include any member of the legislature.
(2) A person shall not receive retirement credit in the Public
Employees Retirement System for any period in which the person was a
legislative employee, during which the person did not pay the employee
contributions required by law, except as provided under this section and
ORS 173.210.
(3) Nothing in this section shall be considered to change any
requirements of this chapter for membership in the Public Employees
Retirement System, or to grant any membership or other rights to persons
whose employment by the Legislative Assembly, either of its houses or any
of its committees was not of a character or duration qualifying them
under then applicable provisions of this chapter for membership in the
system.
(4) Any person who is a legislative employee on July 22, 1973, who
did not pay the employee contributions required by law during employment
as a legislative employee prior to July 22, 1973, may obtain retirement
credit for the period of such employment in the following manner:
(a) No later than one year after July 22, 1973, the employee shall
give written notice to the board that the employee elects to pay to the
fund the unpaid employee contributions attributable to legislative
employment.
(b) The employee shall then pay to the board the entire amount of
the unpaid employee contributions without interest, in a lump sum or at
the option of the employee in installments, within five years after the
date of making the election but prior to reaching compulsory retirement
age.
(c) If a person has reached compulsory retirement age on or before
July 22, 1973, or will reach compulsory retirement age no later than one
year after July 22, 1973, the time in which the employee may pay the
contributions to the system is extended to one year after July 22, 1973.
(5) Any person who was a legislative employee prior to July 22,
1973, and who is not so employed on July 22, 1973, but who becomes a
legislative employee once again after July 22, 1973, may elect to pay
employee contributions and obtain retirement credit for service prior to
July 22, 1973, as a legislative employee. The election shall be made by
giving written notice to the board no later than one year after the first
day of the subsequent employment, in the same manner and subject to the
same conditions as set forth in subsection (4) of this section.
(6) Subject to subsection (8) of this section, any person who makes
the election under subsection (4) or (5) of this section and pays to the
system the entire amount of employee contributions required thereunder,
and who during other qualifying employment by a participating public
employer contributed to the fund and subsequently but prior to July 22,
1973, withdrew contributions under ORS 238.265, may, in the same manner
and subject to the same conditions as set forth in subsection (4) of this
section, repay to the fund the full amount of the contributions withdrawn
by the employee, and rights in the system forfeited by the withdrawal
shall thereupon be restored.
(7) If a person who has reached or will reach compulsory retirement
age within one year after July 22, 1973, the time for repayment under
this section of the full amount of withdrawn contributions in order to
restore rights in the system is extended to one year after July 22, 1973.
(8) A restoration of forfeited rights in the system shall not be
available under subsections (6) and (7) of this section if a person
withdrew contributions before the commencement of the employment in the
course of which the person was or became a legislative employee, if the
covered employment in the course of which the withdrawn contributions
were made terminated more than five years before the commencement of
employment.
(9) Any person who, on July 22, 1973, is an employee of the
Legislative Counsel, or the Legislative Counsel, and who would have been
eligible for retirement credit in the system for such employment prior to
July 22, 1973, but for failure to exercise the option to become a member
of the system under provisions of ORS 173.210 prior to its amendment by
chapter 735, Oregon Laws 1973, may nevertheless obtain retirement credit
in the system for such employment by making the election and paying
employee contributions as provided in and subject to the conditions of
subsection (4) of this section. The person shall not be eligible to make
any election under subsection (5) or subsections (6) and (7) of this
section. [Formerly 237.095] (1) A member
of the Public Employees Retirement System who receives a disability
retirement allowance or disability payments under ORS chapter 656 shall
receive retirement credit for the period during which the member receives
the disability retirement allowance or disability payments if the member
receives the allowance or payments by reason of injury or disease
sustained while in actual performance of duty and not intentionally
self-inflicted.
(2) A member of the Public Employees Retirement System who receives
a disability retirement allowance or disability payments under ORS
chapter 656 by reason of injury or disease that was not sustained while
in actual performance of duty and that was not intentionally
self-inflicted shall receive retirement credit for all or part of the
period during which the member receives the disability retirement
allowance or disability payments if the member, within 90 days before the
effective date of retirement of the member, applies in writing to the
Public Employees Retirement Board for that retirement credit and pays to
the board in a lump sum an amount determined by the board to represent
the full cost to the system of providing the retirement credit to the
member, including all administrative costs incurred by the system in
processing the application for acquisition of the retirement credit.
(3) A member may acquire retirement credit under the provisions of
this section for the purposes of calculating a service retirement
allowance only if the member returns to employment with a participating
public employer after the period of disability.
(4) A member may not acquire retirement credit under the provisions
of this section for a period of time that is in excess of the period of
time used in calculating the disability retirement allowance paid to the
member under ORS 238.320 during the period of disability for which the
member seeks credit. For the purposes of this subsection, the retirement
credit that may be acquired by a police officer or firefighter who elects
to receive the optional, service-connected disability retirement
allowance provided for under ORS 238.345 shall be determined as though
the police officer or firefighter had received a disability retirement
allowance calculated under ORS 238.320.
(5) Retirement credit acquired under this section may be used for
the purpose of establishing eligibility under ORS 238.115, 238.125 or
238.135 or any other provision of this chapter that requires a specified
number of years of creditable service.
(6) Retirement credit under this section may be acquired only for
periods occurring on or after January 1, 1985, during which a member
receives a disability retirement allowance or disability payments under
ORS chapter 656. [1997 c.648 §2; 2003 c.105 §4]If a member is eligible to receive retirement
benefits under both this chapter and ORS chapter 238A by reason of a
break in service under ORS 238A.025, the Public Employees Retirement
Board shall treat all service for which retirement credit is granted
under ORS chapter 238A as though it were creditable service under this
chapter for the purpose of any statute in this chapter that requires that
a member complete a specified period of creditable service as a condition
of retiring or receiving any other benefit under this chapter. [2005
c.332 §10]CONTRIBUTIONS(Employee Contributions) (1)(a) An active member
of the Public Employees Retirement System shall contribute to the Public
Employees Retirement Fund and there shall be withheld from salary of the
member six percent of that salary as an employee contribution.
(b) Notwithstanding paragraph (a) of this subsection, an employee
who is an active member of the system on August 21, 1981, shall
contribute to the fund and there shall be withheld from salary of the
member, as long as the employee continues to be an active member of the
system, four percent of that salary if the salary for a month is less
than $500, or five percent of that salary if the salary for a month is
$500 or more and less than $1,000. Notwithstanding subsection (2) of this
section, for the purpose of computing the percentage of salary to be
withheld under this paragraph from a member who is an employee of a
school district or of the State Board of Higher Education whose salary is
based on an annual agreement, the agreed annual salary of the member
shall be divided into 12 equal installments, and each installment shall
be considered as earned and paid in separate, consecutive months,
commencing with the first month that payment is actually made under the
terms of the salary agreement.
(2) The contributions of each member as provided in subsection (1)
of this section shall be deducted by the employer from each payroll and
transmitted by the employer to the Public Employees Retirement Board,
which shall cause them to be credited to the member account of the
member. Salary shall be considered earned in the month in which it is
paid. The date inscribed on the paycheck or warrant shall be considered
as the pay date, regardless of when the salary is actually delivered to
the member.
(3) An active member who is concurrently employed by more than one
participating public employer, and who is a member of or entitled to
membership in the system, shall make contributions to the fund on the
basis of salary paid by each employer.
(4) Notwithstanding subsections (1) to (3) of this section, a
member of the system, or a participating employer acting on behalf of the
member pursuant to ORS 238.205, is not permitted or required to make
employee contributions to the fund for service performed on or after
January 1, 2004. This subsection does not affect any contribution for the
purpose of unit purchases under ORS 238.440 or amounts paid for
acquisition of creditable service under ORS 238.105 to 238.175. [Formerly
237.071 (1) to (3); 2001 c.945 §43; 2003 c.67 §1; 2003 c.625 §9]
Notwithstanding any other provision of this chapter, and subject to the
provisions of this section, a public employer participating in the system
may agree, by a written employment policy or agreement in effect on or
after July 1, 1979, to “pick-up,” assume or pay the full amount of
employee contributions required or permitted by ORS 238.200 for all or
less than all active members of the system employed by the employer to
the extent employee contributions are required or permitted by ORS
238.200. If a public employer so agrees:
(1) The rate of contribution of each active member of the system
employed by the employer who is covered by such policy or agreement shall
uniformly be six percent of salary regardless of the amount of monthly
salary.
(2) The full amount of required employee contributions assumed or
paid by the employer on behalf of its employees shall be considered
“salary,” as defined in ORS 238.005, only for the purpose of computing a
member’s “final average salary,” as defined in ORS 238.005, and shall not
constitute additional “salary” or “other advantages,” as defined in ORS
238.005, for any other purpose.
(3) The full amount of required employee contributions “picked-up”
by the employer on behalf of its employees shall be considered “salary,”
as defined in ORS 238.005, for the purpose of calculating the amount of
the contribution, for the purpose of computing a member’s “final average
salary,” as defined in ORS 238.005, and for all other purposes.
(4) The full amount of required employee contributions “picked-up,”
assumed or paid by the employer on behalf of its employees shall be added
to the member accounts of the members for their annuities and shall be
considered employee contributions for all other purposes of this chapter.
(5) For the purposes of this section:
(a) Employee contributions are “picked-up” if the written
employment policy or agreement described in subsection (1) of this
section provides that employee compensation will be reduced to generate
the funds needed to make the employee contributions; and
(b) Employee contributions are “assumed or paid” by an employer if
the written employment policy or agreement described in subsection (1) of
this section provides that additional amounts shall be paid by the
employer for the purpose of making the employee contributions, and
employee compensation will not be reduced for the purpose of generating
the funds needed to make the employee contributions.
(6) A participating public employer must give written notice to the
Public Employees Retirement Board at the time that a written employment
policy or agreement described in subsection (1) of this section is
adopted or changed. The notice must indicate whether the employer will
“pick-up” or “assume or pay” the employee contributions as described in
subsection (5) of this section. Any change in the manner in which
employee contributions are to be paid applies only to employee
contributions made on and after the date the notice is received by the
board. [Formerly 237.075; 1997 c.175 §8; 2001 c.945 §44; 2003 c.67 §2]The state shall “pick-up,” assume or pay the
full amount of contributions to the fund required of circuit court judges
who were district court judges before January 15, 1998, and who are
members of the system, but not judge members under ORS 238.500 to
238.585. The full amount of those contributions “picked-up,” assumed or
paid by the state shall be treated as provided in ORS 238.205 (2) to (4).
[Formerly 237.079; 1997 c.175 §§9,10]
Notwithstanding any other provision of this chapter:
(1) An employee, as defined in ORS 243.910 (2), who is an active
member of the system and who has elected, and not canceled that election,
to be assisted by the State Board of Higher Education under ORS 243.920
(1), shall not contribute to the fund on any part of the annual salary of
the employee in excess of $4,800 at any time during which the State Board
of Higher Education assists the employee under ORS 243.920 (1).
(2) The current service pension, whether for service or disability
retirement, under this chapter provided by the contributions of the
employers of such employee shall be:
(a) If the State Board of Higher Education is assisting such
employee under ORS 243.920 (1) at the time of retirement, a pension equal
to the annuity provided by the employee’s accumulated contributions to
the fund.
(b) If the State Board of Higher Education is not assisting such
employee under ORS 243.920 (1) at the time of retirement, but previously
so assisted the employee:
(A) For service before the date the State Board of Higher Education
last ceased to assist the employee, a pension equal to the annuity
provided by the employee’s accumulated contributions to the fund before
that date.
(B) For service on and after the date the State Board of Higher
Education last ceased to so assist the employee, a pension computed as
provided in ORS 238.300 (2), but if the employee retires before reaching
the normal retirement age, actuarially reduced and computed on the then
attained age. For the purpose of computing the pension under this
subparagraph, only the number of years of membership of the employee
after the day before that date and only the salary of the employee on
which the employee contributes to the fund for those years shall be
considered.
(3) Subsection (2) of this section does not apply to an employee,
as defined in ORS 243.910 (2), who is an active member of the system, who
elected to be assisted by the State Board of Higher Education under ORS
243.920 (1) before January 1, 1968, who canceled that election within the
first 60 days of the calendar year 1968 as provided in ORS 243.940 (5)
and who does not thereafter elect to be assisted by the State Board of
Higher Education under ORS 243.920 (1).
(4) Subsection (2) of this section does not apply to an employee,
as defined in ORS 243.910 (2), who is an active member of the system and
has been an active member of the system continuously since any date
before January 1, 1968; who elected to be assisted by the State Board of
Higher Education under ORS 243.920 (1) before January 1, 1968; and who
cancels that election in any calendar year after 1968, but before the
calendar year in which the employee retires, as provided in ORS 243.940
(5) and does not thereafter elect to be assisted by the State Board of
Higher Education under ORS 243.920 (1). In this case the benefit, whether
for service or disability retirement, shall be computed as under ORS
238.300; however, for service during periods in which the employee was
assisted by the State Board of Higher Education under ORS 243.920 (1), a
year of membership as used in ORS 238.300 (2) shall be a portion of a
year which is represented by a fraction the numerator of which is $4,800
and the denominator of which is the salary earned by the employee in that
year. However, in no case shall the fraction be greater than one.
[Formerly 237.073](Employee Rollover Contributions) (1) The Public
Employees Retirement Board may, at its discretion, accept rollover
contributions from an active member. The board may accept rollover
contributions under this section only if the amounts contributed qualify
for pretax rollover treatment under the federal income tax laws governing
qualified retirement plans.
(2) If the board accepts a rollover contribution under this
section, the contribution shall be paid into the Public Employees
Retirement Fund and credited to an individual rollover account in the
name of the member who made the contribution. The rollover account must
be kept separate from the member account of the member and must be
invested separately from all other moneys in the Public Employees
Retirement Fund. All earnings on the rollover account shall be credited
by the board to the rollover account. If the membership of the employee
in the Public Employees Retirement System is terminated under the
provisions of ORS 238.095, the board shall cease investment of the
amounts in the rollover account and, after the effective date of the
termination, shall no longer credit earnings and losses to the rollover
account.
(3) Except as provided in subsection (2) of this section, amounts
in a rollover account established under this section shall be invested in
the same manner as funds in regular accounts. However, ORS 238.255 does
not apply to rollover accounts.
(4) Amounts held in a rollover account under this section shall be
distributed to the member within 90 days after the member’s effective
date of retirement under this chapter, or within 90 days after
termination of the person’s membership in the system under ORS 238.095.
(5) Distribution from a member’s rollover account shall be made in
a single lump sum payment. Distribution from a member’s rollover account
shall not affect the calculation of any other service or disability
retirement allowance, death benefit or other benefit payable to a member
under this chapter.
(6) The board shall adopt rules and establish procedures for
determining whether a member will be allowed to make a rollover
contribution under this section. Rules and procedures adopted by the
board must ensure that the rollover contributions do not adversely affect
the status of the system and the Public Employees Retirement Fund as a
qualified governmental plan and trust under federal income tax law.
(7) The board shall by rule establish a maintenance fee for
rollover accounts established under this section. The fee may be
collected out of earnings on rollover accounts or, if there are no
earnings, from the principal amounts paid into the rollover accounts. The
fee shall be in an amount determined by the board to be adequate to pay
the full cost to the system of maintaining rollover accounts under this
section. [1999 c.988 §2; 2001 c.945 §45; 2003 c.67 §29](Employer Contributions) A participating public employer
shall, at intervals designated by the Public Employees Retirement Board,
transmit to the board those amounts the board determines to be
actuarially necessary to adequately fund the benefits to be provided by
the contributions of the employer under this chapter and the benefits to
be provided under the pension program established by ORS 238A.100 to
238A.245, except for the disability benefit for which funding is provided
under ORS 238A.240. From time to time, the board shall determine the
liabilities of the system and shall set the amount of contributions to be
made by participating public employers, and by other public employers who
are required to make contributions on behalf of members, to ensure that
those liabilities will be funded no more than 40 years after the date on
which the determination is made. [Formerly 237.081; 2001 c.945 §13; 2002
s.s.1 c.9 §1; 2002 s.s.3 c.5 §1; 2003 c.625 §8; 2003 c.746 §7; 2003 c.802
§160; 2005 c.808 §10](1) For the purpose of computing the employer
contributions required under ORS 238.225 for benefits to be provided
under this chapter:
(a) The Public Employees Retirement Board shall group together the
school districts of the state and treat the school districts of the state
as a single employer for actuarial purposes; and
(b) The board shall group together all community college districts
and the state and treat the community college districts and the state as
a single employer for actuarial purposes.
(2) For the purpose of computing the employer contributions
required under ORS 238.225 for benefits to be provided under this
chapter, any participating public employer other than school districts
may elect to be grouped with the state and all community college
districts and treated as a single employer for actuarial purposes. An
election under this subsection is irrevocable.
(3) The computation of the contributions of a participating public
employer that makes an election under subsection (2) of this section
shall be based only on the liabilities of the employer under this chapter
that are incurred after the effective date of the employer’s election.
The board shall separately compute the contribution of the employer for
the liabilities incurred by the employer under this chapter before the
effective date of the employer’s election.
(4) A participating public employer may make an election under
subsection (2) of this section only by the adoption of a resolution or
ordinance by the governing body of the public employer.
(5) Except as provided in this section, the board may not require
that any participating public employer be grouped with any other
participating public employer for the purpose of computing the employer
contributions required under ORS 238.225 for benefits to be provided
under this chapter. If two participating public employers merge or
otherwise consolidate, and one of the public employers has made an
election under subsection (2) of this section:
(a) The board may not require that the public employer that is the
product of the consolidation be grouped with the state and all community
college districts unless the public employer makes an election under
subsection (2) of this section; and
(b) The board may require that the participating public employer
that is the product of the consolidation make contributions based on the
group rate only for those members for whom contributions based on the
group rate were made before the consolidation. [2005 c.808 §12](1) If a participating public employer is grouped with any
other public employer for the purpose of computing employer contributions
under ORS 238.225 and the individual public employer makes a lump sum
payment that is in addition to the normal contribution of the public
employer, the Public Employees Retirement Board shall adjust the amount
of contributions to be made by the individual public employer to ensure
that the benefit of the lump sum payment accrues only to the individual
public employer making the payment. An individual public employer that
makes a lump sum payment under the provisions of this subsection shall
remain grouped with other public employers as provided by ORS 238.227 and
238A.220 for the purpose of all liabilities of the employer that are not
paid under this subsection. The board by rule may establish a minimum
lump sum payment that must be made by an individual public employer
before adjusting contributions under this subsection. Notwithstanding any
minimum lump sum payment established by the board, the board must allow
an individual public employer to make a lump sum payment under this
subsection if the payment is equal to the full amount of the individual
public employer’s accrued unfunded liabilities under this section and ORS
chapter 238A.
(2) The board shall establish a separate account within the Public
Employees Retirement Fund for each lump sum payment made under this
section by an individual public employer. The board shall credit to each
account all interest and other income received from investment of the
account funds during the calendar year. Except as provided in subsection
(3) of this section, the board may not collect any administrative expense
or other charge from the account or from earnings on the account. The
account shall be used to offset contributions that the public employer
would otherwise be required to make for the liabilities against which the
lump sum payment is applied.
(3) The board may charge a participating public employer expenses
for administration of an account established under subsection (2) of this
section in an amount not to exceed $2,500 for the calendar year in which
the account is established and for the immediately following two calendar
years, and in an amount not to exceed $1,000 per year for all subsequent
years.
(4) If a participating public employer has any liabilities that are
attributable to creditable service by employees of the employer before
the participating public employer was grouped with other public employers
under ORS 238.227, whether under this section or pursuant to board rule,
any lump sum payment made under this section must be applied first
against those liabilities, with the oldest liability being paid first.
Any amounts remaining after application under this subsection must be
deposited in a separate account established under subsection (2) of this
section. [2005 c.808 §13](1) If a participating public
employer transfers employees who are members of the Public Employees
Retirement System to another public employer, the two public employers
must enter into a written agreement that addresses the manner in which
any unfunded liability or surplus of the transferring public employer
under the system will be paid or credited.
(2) If two or more public employers merge or consolidate, and any
of the public employers participate in the system, the public employers
that merged or consolidated must enter into a written agreement that
addresses the manner in which any unfunded liability or surplus of the
merged or consolidated public employers under the system will be paid or
credited.
(3) If a participating public employer splits into two or more
public employers, the public employers that result from the split must
enter into a written agreement that addresses the manner in which any
unfunded liability or surplus of the original participating public
employer under the system will be paid or credited.
(4) A written agreement entered into under this section must be
delivered to the Public Employees Retirement Board not later than 60 days
after the transfer, merger, consolidation or split becomes effective. If
public employers affected by a transfer, merger, consolidation or split,
including public employers created by a merger, consolidation or split,
fail to deliver to the board a written agreement that addresses the
unfunded liabilities or surpluses, or fail to deliver to the board a
written agreement that addresses the unfunded liabilities or surpluses in
a manner satisfactory to the board, the board shall decide the manner in
which unfunded liabilities or surpluses will be allocated among the
public employers. [2005 c.808 §14]MEMBER ACCOUNTS(Generally) The board shall provide for a regular
account for each active and inactive member of the system who has made
contributions to the fund. The regular account of the member shall show
the amount of the member’s contributions to the fund and the interest
which they have earned. The board shall furnish a written statement
thereof upon request by any member or beneficiary of the system.
[Formerly 237.275; 2001 c.945 §46; 2003 c.67 §22](1) The regular account for members who established
membership in the system before January 1, 1996, as described in ORS
238.430, and for alternate payees of those members, shall be examined
each year. If the regular account is credited with earnings for the
previous year in an amount less than the earnings that would have been
credited pursuant to the assumed interest rate for that year determined
by the Public Employees Retirement Board, the amount of the difference
shall be credited to the regular account and charged to a reserve account
in the fund established for the purpose. In years following the year for
which a charge is made to the reserve account, all earnings on the
regular accounts of members who established membership in the system
before January 1, 1996, as described in ORS 238.430, and of alternate
payees of those members, shall first be applied to reduce or eliminate
the amount of a deficit. Only earnings on the regular accounts of members
who established membership in the system before January 1, 1996, as
described in ORS 238.430, and of alternate payees of those members, may
be used to reduce or eliminate the amount of a deficit.
(2) Notwithstanding subsection (1) of this section and except as
provided in subsection (5) of this section, the board may not credit any
earnings to the regular accounts of members who established membership in
the system before January 1, 1996, as described in ORS 238.430, or of
alternate payees of those members, in any year in which there is a
deficit in the reserve account established under subsection (1) of this
section, or credit any earnings to the regular accounts of those members,
or alternate payees, that would result in a deficit in that reserve
account. In any year in which the fund experiences a loss, the board
shall charge the amount of the loss attributable to the regular accounts
of members who established membership in the system before January 1,
1996, as described in ORS 238.430, against the reserve account.
(3) The regular account for members who established membership in
the system before January 1, 1996, as described in ORS 238.430, and for
alternate payees of those members, may not be credited with earnings in
excess of the assumed interest rate until:
(a) The reserve account established under subsection (1) of this
section is fully funded with amounts determined by the board, after
consultation with the actuary employed by the board, to be necessary to
ensure a zero balance in the account when all members who established
membership in the system before January 1, 1996, as described in ORS
238.430, have retired; and
(b) The reserve account established under subsection (1) of this
section has been fully funded as described in paragraph (a) of this
subsection in each of the three immediately preceding calendar years.
(4) The board may divide the reserve account established under
subsection (1) of this section into one or more subaccounts for the
purpose of implementing the provisions of this section.
(5) Subsection (2) of this section does not apply to a person who
is a judge member of the system on June 30, 2003. [Formerly 237.277; 2001
c.945 §4; 2003 c.3 §1; 2003 c.67 §5; 2003 c.625 §10] (1) Notwithstanding any
other provision of this chapter, the regular account balance of a member
or alternate payee described in subsection (3) of this section may not be
less than the amount provided for under subsection (2) of this section
for the purpose of computing retirement allowances, death benefits and
amounts to be paid to a withdrawing member under ORS 238.265 and for
other computations under the provisions of this chapter that are based on
a member’s or alternate payee’s regular account balance. If the regular
account balance of a member or alternate payee described in subsection
(3) of this section is less than the amount provided for under subsection
(2) of this section at the time of retirement or withdrawal of the
account, the Public Employees Retirement Board shall credit the account
with the difference and charge the amount so credited to the reserve
account established under ORS 238.255.
(2) The minimum regular account balance for a member or alternate
payee described in subsection (3) of this section is the amount that the
regular account of a member or alternate payee would have contained if
the regular account of the member had been credited with earnings at the
assumed interest rate in every year in which the regular account of the
member or alternate payee was in existence.
(3) The provisions of this section apply only to:
(a) A member who establishes membership in the system before
January 1, 1996, as described in ORS 238.430, and who retires or
withdraws the member account of the member on or after April 1, 2004; and
(b) An alternate payee of a member described in paragraph (a) of
this subsection. [2003 c.67 §8; 2003 c.625 §12] (1) The purpose of this
section is to establish a well balanced, broadly diversified investment
program for certain contributions and portions of the member accounts so
as to provide retirement benefits for members of the system that will
fluctuate as the value and earnings of the investments vary in relation
to changes in the general economy. It is anticipated that investment of
those contributions and portions of the member accounts in equities will
result in the accumulation of larger deposit reserves for those members
during their working years, tend to preserve the purchasing power of
those reserves and the retirement benefits provided thereby and afford
better protection in periods of economic inflation.
(2) There is established in the Public Employees Retirement Fund an
account, separate and distinct from the General Fund, to be known as the
Variable Annuity Account. Interest earned by the account shall be
credited to the account. The account is part of the Public Employees
Retirement System and is not a separate defined contribution plan or
account for the purposes of the Internal Revenue Code.
(3)(a) A member who is making contributions to the fund may elect
at any time to have 25, 50 or 75 percent of contributions by the member
to the fund on and after the effective date of the election paid into the
Variable Annuity Account, credited to a variable account, and reserved
for the purchase of a variable annuity. A member who has elected to have
a percentage of contributions so paid, credited and reserved may elect at
any time thereafter to have an additional 25 or 50 percent of
contributions by the member, but not to exceed a maximum of 75 percent,
so paid, credited and reserved. An election shall be in writing on a form
furnished by the board and be filed with the board. An election shall be
effective on January 1 following the filing thereof.
(b) Notwithstanding any other provision of this section, a member
may not contribute to the Variable Annuity Account after December 31,
2003.
(4) A member who has elected to have contributions paid into the
Variable Annuity Account under subsection (3) of this section may
thereafter cause the contributions to cease being paid into the member’s
variable account by filing a request in writing on a form furnished by
the board and filed with the board. The contributions shall cease being
paid into the member’s variable account after December 31 following the
filing of the request. Contributions paid into the member’s variable
account before the effective date of the request for cessation shall
remain in the member’s variable account.
(5)(a) An employee who is a member of the system on January 1,
1968, and who thereafter made contributions to the Variable Annuity
Account, may elect at any time to have an amount equal to 10 percent per
year, for not more than five years, of the balance of the regular account
of the member in the fund on the effective date of an election filed
under subsection (3) of this section, transferred from the regular
account of the member to the Variable Annuity Account, credited to the
member’s variable account, and reserved for the purchase of a variable
annuity. An election shall be in writing on a form furnished by the board
and be filed with the board. An election is final and irrevocable upon
the filing thereof. The first transfer pursuant to an election shall be
made on July 1 following the filing of the election, but may be made, in
the discretion of the board, on an earlier date.
(b) If the transfers elected by a member under this subsection have
not been completed at the time of retirement, a transfer equal to one
annual transfer shall be made pursuant to an election by the member made
and filed as provided in this subsection.
(c) No transfer shall be made under this subsection after the first
payment of the service retirement allowance of the member becomes
normally due.
(d) Notwithstanding paragraphs (a) to (c) of this subsection, a
member may not elect to transfer funds under this subsection after
December 31, 2003.
(6) Moneys in the Variable Annuity Account may be invested in
investments authorized by law for investment of moneys in the Public
Employees Retirement Fund; but, notwithstanding any other general or
specific law, moneys in the account shall be invested primarily in
equities, including common stock, securities convertible into common
stock, real property and other recognized forms of equities, whether or
not subject to indebtedness. Not more than five percent of the amortized
value of all the investments of the Variable Annuity Account and of
moneys in the account immediately available for investment may be
invested in the obligations of or equities in a single, primary obligor
or issuer. A pro rata share of the administrative expenses of the system
shall be paid from interest earned by the Variable Annuity Account.
(7)(a) Except as provided in subsection (8) of this section, the
policy-making investment authority for the Public Employees Retirement
Fund shall enter into contracts with one or more persons whom the
authority determines to be qualified, whereby the persons undertake to
invest and reinvest moneys in the Variable Annuity Account available for
investment and acquire, retain, manage and dispose of investments of the
account in accordance with subsections (1) and (6) of this section and to
the extent provided in the contracts.
(b) Performance of functions under contracts so entered into shall
be paid for out of the gross interest or other income of the investments
with respect to which the functions are performed, and the net interest
or other income of the investments after that payment shall be considered
income of the Variable Annuity Account.
(c) The policy-making investment authority may require a person
contracted with to give to the state a fidelity bond in a penal sum as
may be fixed by law or, if not so fixed, as may be fixed by the
authority, with corporate surety authorized to do business in this state.
(d) Contracts so entered into and functions performed thereunder
are not subject to the State Personnel Relations Law or ORS 279A.050 (2)
and 279A.140.
(e) A person contracted with shall report to the policy-making
investment authority as often as the authority may require, but at least
annually, the earnings of the moneys invested during the period covered
by the report, the capital gains and losses of the Variable Annuity
Account during the period, the changes in the market value of the
investments of the account during the period and such other information
as the authority may require.
(8) The policy-making investment authority for the Public Employees
Retirement Fund, for and on behalf of the Public Employees Retirement
System and Public Employees Retirement Board, may enter into group
annuity contracts with one or more insurance companies authorized to do
business in this state. In lieu of any investment of moneys in the
Variable Annuity Account as provided in subsections (6) and (7) of this
section, the authority may pay, from time to time under contracts so
entered into, any moneys in that account available for investment
purposes. Contracts so entered into:
(a) May provide that annuities purchased thereunder be payable in
variable dollar amounts, but if that provision is made, provision also
shall be made that a member of the system who has a variable account,
upon retiring from service and before the first payment of retirement
allowance becomes normally due, may elect an option to have the annuities
payable to the member or the beneficiary of the member in fixed or
variable dollar amounts or both.
(b) May provide that payment of annuities purchased thereunder may
be made by the insurance company directly to persons entitled thereto or
to the Variable Annuity Account for payment therefrom to those persons.
(c) Are not subject to ORS 279A.050 (2) and 279A.140.
(9) Upon retiring from service but within 60 days after the date of
the first benefit payment, a member of the system who has a variable
account may elect to transfer the balance in the variable account to the
regular account of the member, and by that transfer the annuity shall be
based on the amount in the regular account of the member as otherwise
provided in this chapter and the member shall not receive a variable
annuity as provided in this section.
(10) When an annuity is payable under this chapter to a member of
the system who has a variable account, or is payable to a beneficiary of
that person, the portion of the annuity payable from the Variable Annuity
Account shall be proportionately increased or decreased for a calendar
year when, as of October 31 of the preceding calendar year, the balance
of the member’s variable account exceeds or is less than the current
value of the annuity, determined in accordance with the rate of interest
and approved actuarial tables then in effect.
(11) Notwithstanding subsection (10) of this section, the board, in
the event of extraordinary fluctuation in the market value of investments
of the Variable Annuity Account and in order to avoid substantial
inequities, may increase or decrease the portions of annuities paid from
the account for periods less than a calendar year and determined as of
dates other than October 31.
(12) Notwithstanding any other provision of this chapter, the
retirement allowance to which a member of the system who has a variable
account or who made contributions on salary in excess of $4,800 per year
during the period January 1, 1956, through December 31, 1967, and whose
effective date of retirement is January 1, 1982, or later, is otherwise
entitled under this chapter shall be subject to the following adjustment:
(a) The board shall determine the difference between the member
account of the member and what the member account of the member would
have been had the member not participated in the variable annuity program
on or after January 1, 1982, plus the contributions made on salary in
excess of $4,800 per year during the period January 1, 1956, through
December 31, 1967.
(b) If the member account of the member due to participation in the
variable annuity program or due to the contributions made on salary in
excess of $4,800 per year is greater, the monthly retirement allowance of
the member shall be increased by the value of the difference, using the
annuity tables applicable to the plan selected by the member.
(c) If the member account of the member due to participation in the
variable annuity program or due to the contributions made on salary in
excess of $4,800 per year is lesser, the monthly retirement allowance of
the member shall be decreased by the value of the difference, using the
annuity tables applicable to the plan selected by the member.
(13) Except as otherwise specifically provided in this section, the
rights and benefits under this chapter of an active or retired member of
the system or of a beneficiary of the member are not affected by this
section and the provisions of this chapter applicable to regular accounts
of active and retired members of the system in the fund are also
applicable to variable accounts.
(14)(a) In addition to the transfer provided for in subsection (9)
of this section, a member of the system who has a variable account may at
any time prior to retirement elect to transfer the balance in that
account to the regular account of the member in the fund if:
(A) The member is other than a police officer or firefighter and
has attained the age of 50;
(B) The member is a police officer or firefighter and has attained
the age of 45; or
(C) The member has a combined total of 25 years or more of
creditable service in the system and prior service credit.
(b) An election under paragraph (a) of this subsection is
irrevocable, and a member who has so elected may not thereafter elect to
make contributions to the Variable Annuity Account under subsection (3)
of this section.
(c) An election under paragraph (a) of this subsection shall be in
writing and shall be filed with the board. The board by rule shall
prescribe a form for the purposes of application. An election so made
shall be effective on January 1 of the year following the year in which
the election is made. If the member account of the member as of the
effective date of the election is less than what the member account of
the member would have been had the member not participated in the
variable annuity program, not including the contributions made on salary
in excess of $4,800 per year during the period January 1, 1956, through
December 31, 1967, the monthly retirement allowance of a member
calculated under ORS 238.300 (2)(a) or (b)(B) shall be decreased by the
value of the difference.
(d) As of the effective date of an election under this subsection,
the board shall credit all earnings to the member’s variable account
based on the actual calendar year variable earnings rate for the year in
which the election is made. This account balance shall:
(A) Be used by the board in determining whether the member’s
election is effective under paragraph (c) of this subsection; and
(B) Be the account balance credited by the board to the regular
account of the member in the fund if the election is determined to be
effective.
(e) Subject to paragraph (c) of this subsection, the annuity of a
member who makes an effective transfer under this subsection shall be
based on the amount in the regular account of the member in the fund as
otherwise provided in this chapter, and the member shall not receive a
variable annuity as provided in this section. [Formerly 237.197; 2001
c.945 §47; 2003 c.67 §3; 2003 c.625 §36; 2003 c.794 §218; 2005 c.808
§§2,3]Note: Section 19, chapter 625, Oregon Laws 2003, provides:
Sec. 19. The amendments to ORS 238.260 by section 3, chapter 67,
Oregon Laws 2003, do not apply to any judge member who is a judge member
of the system on June 30, 2003. A person who is a judge member of the
system on June 30, 2003, may continue to make contributions to the
Variable Annuity Account for services as a judge member performed on or
after January 1, 2004. [2003 c.625 §19](Withdrawal or Transfer of Member Account) (1) Except as otherwise
provided in this section, a member of the Public Employees Retirement
System may withdraw from the Public Employees Retirement Fund the amount
credited to the member account, if any, for the member if:
(a) The member is separated from all service with participating
public employers;
(b) The member is separated from all service with employers who are
treated as part of a participating public employer’s controlled group
under the federal laws and rules governing the status of the system and
the fund as a qualified governmental retirement plan and trust;
(c) The member has not attained earliest service retirement age; and
(d) The separation from service is not by reason of death or
disability.
(2) If a member wishes to withdraw the member account, if any, of
the member under this section, the member must transmit to the Public
Employees Retirement Board a withdrawal request. The board shall deny the
withdrawal, or shall take all reasonable steps to recover withdrawn
amounts, if:
(a) The board determines that the separation is not a bona fide
separation; or
(b) The member fails to remain absent from the service of all
employers described in subsection (1) of this section for at least one
calendar month following the month in which the member separates from
service.
(3) If a member has contributed to the fund in each of five
calendar years and has separated from all service in the manner described
in subsection (1) of this section before reaching earliest service
retirement age, the member may elect to withdraw the member account of
the member under this section at any time before reaching earliest
service retirement age. If the inactive member does not make an election
to withdraw under this section, the member shall be paid the benefits or
retirement allowances described in ORS 238.425.
(4) Withdrawal of a member account under this section cancels all
membership rights in the system, including the right to claim credit for
any employment before withdrawal. [Formerly 237.111 (2); 1999 c.317 §5;
2001 c.945 §48; 2003 c.67 §11]Note: Section 2, chapter 276, Oregon Laws 2003, provides:
Sec. 2. (1) An inactive member who withdraws the account of the
member under ORS 238.265 shall receive an additional amount equal to 50
percent of the balance of the account, to be paid from employer
contributions, if:
(a) The member was an inactive member on January 1, 2000, and
remains an inactive member until the member account is withdrawn;
(b) The member made contributions to the Public Employees
Retirement Fund during each of five calendar years or more, and the
amounts in the member account are attributable to those contributions; and
(c) The withdrawal is made on or after July 1, 2004, and before
June 30, 2006.
(2) A member who withdraws a member account under this section may
not obtain restoration under ORS 238.105 or 238.115 of the creditable
service forfeited by the withdrawal.
(3) In addition to an inactive member described in subsection (1)
of this section, the provisions of this section apply to the alternate
payee of a member who withdraws the account of the alternate payee on or
after July 1, 2004, and before June 30, 2006. [2003 c.276 §2; 2003 c.625
§23]Whenever a person who is past the earliest service
retirement age separates from the service of a public employer
participating in the Public Employees Retirement System and who
thereafter, but before applying to the Public Employees Retirement Board
for retirement benefits, is employed in a position that entitles the
person to membership in another public employees retirement system,
either within or without this state, the board, upon the written request
of the person and if in conformance with the provisions of law governing
the other public employees retirement system, may transfer the member
account, if any, of the person in the fund to the other public employees
retirement system. Such transfer shall cancel the right of the person to
claim any future benefits under the Public Employees Retirement System
for service rendered to a public employer in this state prior to the date
of the transfer. [Formerly 237.115; 2001 c.945 §49; 2003 c.67 §23]ELIGIBILITY FOR RETIREMENT (1) Except as otherwise
provided in this section, a member of the Public Employees Retirement
System who attains the age of 55 shall be retired upon written
application by the member to the Public Employees Retirement Board on a
reduced service retirement allowance, which shall be the actuarial
equivalent of the service retirement allowance provided for in ORS
238.300 at the normal retirement age.
(2) A police officer or firefighter who is a member of the system
and attains the age of 50 shall be retired upon written application by
the member to the board on a reduced service retirement allowance, which
shall be the actuarial equivalent of the service retirement allowance
provided for in ORS 238.300 at the normal retirement age. The provisions
of this subsection apply to an inactive member of the system who was
employed as a police officer or firefighter in a qualifying position
immediately before becoming inactive.
(3) Notwithstanding ORS 238.215 (2)(b)(B):
(a) A police officer or firefighter who is a member of the system,
attains the age of 50 and has a combined total of 25 years or more of
creditable service in the system and prior service credit shall be
retired upon written application by the member to the board on a service
retirement allowance including, without actuarial reduction, the same
current service pension and prior service pension provided for in ORS
238.300 at the normal retirement age. The provisions of this paragraph
apply to an inactive member of the system who was employed as a police
officer or firefighter in a qualifying position immediately before
becoming inactive.
(b) An employee who is a member of the system, has a combined total
of 30 years or more of creditable service in the system and prior service
credit, and is not eligible to retire under paragraph (a) of this
subsection shall be retired upon written application by the member to the
board on a service retirement allowance including, without actuarial
reduction, the same current service pension and prior service pension
provided for in ORS 238.300 at the normal retirement age. [Formerly
237.121; 2001 c.945 §78; 2005 c.808 §§37,38]BENEFITS(Service Retirement Allowance) Upon retiring from service at
normal retirement age or thereafter, a member of the system shall receive
a service retirement allowance which shall consist of the following
annuity and pensions:
(1) A refund annuity which shall be the actuarial equivalent of
accumulated contributions, if any, by the member and interest thereon
credited at the time of retirement, which annuity shall provide an
allowance payable during the life of the member and at death a lump sum
equal in amount to the difference between accumulated contributions at
the time of retirement and the sum of the annuity payments actually made
to the member during life shall be paid to such person, if any, as the
member nominates by written designation duly acknowledged and filed with
the board or shall otherwise be paid according to the provisions of this
chapter for disposal of an amount credited to the member account of a
member at the time of death in the event the member designates no
beneficiary to receive the amount or no such beneficiary is able to
receive the amount. If death of the member occurs before the first
payment is due, the member account of the member shall be treated as
though death had occurred before retirement.
(2)(a) A life pension (nonrefund) for current service provided by
the contributions of employers, which pension, subject to paragraph (b)
of this subsection, shall be an amount which, when added to the sum of
the annuity, if any, under subsection (1) of this section and the
annuity, if any, provided on the same basis and payable from the Variable
Annuity Account, both annuities considered on a refund basis, results in
a total of:
(A) For service as a police officer or firefighter, two percent of
final average salary multiplied by the number of years of membership in
the system as a police officer or firefighter before the effective date
of retirement.
(B) For service as other than a police officer or firefighter,
including service as a member of the Legislative Assembly, 1.67 percent
of final average salary multiplied by the number of years of membership
in the system as other than a police officer or firefighter before the
effective date of retirement.
(b) A pension under this subsection shall be at least:
(A) For a member who first establishes membership in the system
before July 1, 2003, the actuarial equivalent of the annuity provided by
the accumulated contributions of the member. A person establishes
membership in the system before July 1, 2003, for the purposes of this
subparagraph if:
(i) The person is a member of the system, or a judge member of the
system, on the day immediately before July 1, 2003; or
(ii) The person performed any period of service for a participating
public employer before July 1, 2003, that is credited to the six-month
period of employment required of an employee under ORS 238.015 before an
employee may become a member of the system.
(B) For a member who made contributions before August 21, 1981, the
equivalent of a pension computed pursuant to this subsection as it
existed immediately before that date.
(c) As used in this subsection, “number of years of membership”
means the number of full years of creditable service plus any remaining
fraction of a year of creditable service. Except as otherwise provided in
this paragraph, in determining a remaining fraction a full month shall be
considered as one-twelfth of a year and a major fraction of a month shall
be considered as a full month. Membership of a school district employee,
an employee of the State Board of Higher Education engaged in teaching or
other school activity at an institution of higher education or an
employee of the Department of Human Services, the Oregon Youth Authority,
the Department of Corrections or the State Board of Education engaged in
teaching or other school activity at an institution supervised by the
authority, board or department, for all portions of a school year in a
calendar year in which the district school, institution of higher
education or school activity at an institution so supervised in which the
member is employed is normally in session shall be considered as a full
one-half year of membership. The number of years of membership of a
member who received a refund of contributions as provided in ORS 237.976
(2) is limited to the number of years after the day before the date on
which the refund was received. The number of years of membership of a
member who is separated, for any reason other than death or disability,
from all service entitling the member to membership in the system, who
withdraws the amount credited to the member account of the member in the
fund during absence from such service and who thereafter reenters the
service of an employer participating in the system but does not repay the
amount so withdrawn as provided in this chapter, is limited to the number
of years after the day before the date of so reentering.
(3) An additional life pension (nonrefund) for prior service
credit, including military service, credited to the member at the time of
first becoming a member of the system, as elsewhere provided in this
chapter, which pension shall be provided by the contributions of the
employer. [Formerly 237.147; 1997 c.249 §67; 2001 c.900 §49; 2001 c.945
§50; 2003 c.67 §4; 2003 c.625 §22; 2003 c.733 §46e]Note: Section 46f, chapter 733, Oregon Laws 2003, provides:
Sec. 46f. The amendments to ORS 238.300 by section 46e of this 2003
Act apply to periods of service as a member of the Legislative Assembly
served by reason of appointment or election to the Legislative Assembly
on or after the effective date of this 2003 Act [August 29, 2003],
including periods of service as a member of the Legislative Assembly
served by reason of reelection to the Legislative Assembly after the
effective date of this 2003 Act. [2003 c.733 §46f] (1) Not
later than 60 days after the first benefit payment is made to a retired
member of the Public Employees Retirement System, the member may elect to
convert the allowance described by ORS 238.300 as payable after
retirement into a service retirement annuity of equivalent actuarial
value of one of the optional forms named below. The election of Option 2,
2A, 3 or 3A shall be effective immediately upon the member’s retirement.
Option 1. (a) A life annuity (nonrefund) payable during the
member’s life only, which shall be the actuarial equivalent of
accumulated contributions by the member and interest thereon credited at
the time of retirement (if death occurs before the first payment is due,
the member account shall be treated as though death had occurred before
retirement); (b) a life pension (nonrefund) provided by the contributions
of employers as provided in ORS 238.300 (2); (c) an additional nonrefund
pension for prior service credit, including military service, credited to
the member at the time of first becoming a member of the system, as
elsewhere provided in this chapter, which pension shall be provided by
the contributions of the employer; or
Option 2. A reduced service retirement allowance payable during the
member’s life, with the provision that it continue after death for the
life of the beneficiary the member nominates by written designation duly
acknowledged and filed with the Public Employees Retirement Board at the
time of election, should the beneficiary survive the member; or
Option 2A. A reduced service retirement allowance payable during
the member’s life which, unless modified under subsection (6) of this
section, continues after death for the life of the beneficiary the member
nominates by written designation duly acknowledged and filed with the
board at the time of election, should the beneficiary survive the member;
or
Option 3. A reduced service retirement allowance payable during the
member’s life, with the provision that it continue after death at
one-half the rate paid to the member and be paid for the life of the
beneficiary the member nominates by written designation duly acknowledged
and filed with the board at the time of election, should the beneficiary
survive the member; or
Option 3A. A reduced service retirement allowance payable during
the member’s life which, unless modified under subsection (6) of this
section, continues after death at one-half the rate paid to the member
and is paid for the life of the beneficiary the member nominates by
written designation duly acknowledged and filed with the board at the
time of election, should the beneficiary survive the member; or
Option 4. A reduced service retirement allowance payable during the
member’s life, with the provisions that if the member dies before a total
of 180 monthly payments is made, the remainder of the 180 monthly
payments shall be paid monthly to the beneficiary the member nominates by
written designation duly acknowledged and filed with the board at any
time before the member’s death; and that if the member designates no
beneficiary to receive the monthly payments or no such beneficiary is
able to receive the monthly payments, an amount equal to the actuarial
value, on the date of the member’s death, of the total of the monthly
payments not made to the member shall be paid according to ORS 238.390
for disposal of an amount credited to the member account of a member at
the time of death; and that if the beneficiary receiving monthly payments
dies before the total number of monthly payments to which the beneficiary
is entitled is made, an amount equal to the actuarial value, on the date
of the beneficiary’s death, of the total of the monthly payments not made
to the member and beneficiary shall be paid according to ORS 238.390 for
disposal of an amount credited to the member account of a member at the
time of death and as if the beneficiary had been a member.
(2) Not later than 60 days after the first benefit payment is made
to a retired member of the system, the member may elect, in lieu of the
allowance described by ORS 238.300 as payable after retirement, a service
retirement benefit consisting of:
(a) A refund of accumulated contributions by the member and
interest thereon credited at the time of refund; and
(b) A life pension (nonrefund) provided by the contributions of
employers as provided in ORS 237.147 (2) (1979 Replacement Part), and an
additional life pension (nonrefund) for prior service credit as provided
in ORS 238.300 (3). At the same time as making the election under this
subsection, the member may elect to convert the pensions described by
this paragraph into a service retirement annuity of equivalent actuarial
value of one of the optional forms named as Option 2, 2A, 3 or 3A under
subsection (1) of this section.
(3) Not later than 60 days after the first benefit payment is made
to a retired member of the system, the member may elect in lieu of the
allowance described by ORS 238.300 a refund service retirement benefit
consisting of:
(a) A refund of accumulated contributions by the member and
interest thereon credited at the time of retirement;
(b) An amount that matches the amount of accumulated contributions
by the member and interest thereon, provided by the contributions of
employers; and
(c) Interest on the amounts described in paragraphs (a) and (b) of
this subsection from the effective date of retirement until the amounts
are paid.
(4)(a) If the member elects to receive the service retirement
benefit described in subsection (2) or (3) of this section, the member
shall elect at the same time to receive the refund described in
subsection (2)(a) or (3) of this section in one lump sum payment or in
more than one but not more than five installment payments. If the member
elects installment payments:
(A) The amount to be paid by employer contributions under
subsection (3)(b) of this section shall be transferred to the individual
account of the member in the Public Employees Retirement Fund as of the
effective date of retirement.
(B) The installment payments shall be paid once each year for the
number of consecutive years equal to the number of installment payments
elected.
(C) The amount of each installment payment shall be designated by
the member at the time of making the election, but the last installment
payment shall be the unrefunded balance remaining in the member account
of the member in the fund.
(D) The member account of the member in the fund shall be
maintained until the last installment payment is paid. The board shall
establish procedures for computing and crediting interest annually on the
unrefunded balance of the member account.
(E) A yearly installment payment shall be paid on the anniversary
of the date of the first installment payment.
(F) The member is considered to have elected to transfer any
balance in the variable account of the member to the regular account of
the member.
(G) If the member dies before payment of all installment payments,
the unrefunded balance in the member account of the member plus interest
to date of disbursement is payable as provided in ORS 238.390 (4).
(b) If a member elects to receive the refund service retirement
benefit described in subsection (3) of this section, and does not elect
to receive those amounts in installments under the provisions of this
subsection, all rights of the member in the system shall terminate upon
the payment of the amounts provided for in subsection (3) of this
section, except as provided in paragraph (c) of this subsection. If a
member elects to receive the refund service retirement benefit described
in subsection (3) of this section, and also elects to receive those
amounts in installments under the provisions of this subsection, all
rights of the member in the system shall terminate upon the making of the
first payment, except as provided in paragraph (c) of this subsection.
(c) A member who elects to receive the refund service retirement
benefit described in subsection (3) of this section, and any eligible
spouse or dependent of the member, shall continue to be eligible for
insurance under ORS 238.410, and for any premium payments the member may
be entitled to under ORS 238.415 and 238.420.
(5) The designation of a beneficiary, the election of an option or
any other election or designation under subsection (1), (2), (3) or (4)
of this section may be changed by the member within 60 days after the
date of the first benefit payment, except that the designation of a
beneficiary under Option 4 may be changed by the member at any time
before the member’s death.
(6) If a retired member has elected to receive a service retirement
allowance under Option 2A or Option 3A as provided in subsection (1) of
this section, and if the beneficiary under that option dies after the
expiration of the time within which the member could change the election
of an option or if the beneficiary is the spouse of the member and the
marriage relationship is terminated as provided by law after the
expiration of the time within which the member could change the election
of an option, the member may elect to receive, in lieu of the optional
form of allowance previously elected, the allowance that the member would
have received on the effective date of retirement under Option 1 as
provided in subsection (1) of this section and adjusted by the actual
amount of any cost-of-living or other post-retirement adjustments made to
the original allowance since the effective date of retirement. Notice of
election under this subsection must be in a form approved by the board.
If an election is made under this subsection, the Option 1 payment amount
is applicable to the first full month after the death of the beneficiary,
or the first full month after entry of the judgment of divorce, and
payable the first day of the month thereafter. If the increased amount is
not paid in any month in which the increased amount is due, the board
shall make a lump sum payment to the retired member that is equal to the
difference between the amount paid to the member for that month and the
amount that should have been paid under the provisions of this subsection.
(7) Notwithstanding any other provision of this section, any member
of the system who retired before October 3, 1989, and elected to receive
a service retirement allowance under either Option 2 or 3 as provided in
subsection (1) of this section shall be entitled to receive a service
retirement allowance equal to that which the member would have received
on the effective date of retirement under Option 1 as provided in
subsection (1) of this section and adjusted by the actual amount of any
cost-of-living or other post-retirement adjustments made to the original
allowance since the effective date of retirement if:
(a) The member has attained 80 years of age;
(b) The person designated by the member as the member’s beneficiary
has predeceased the member; and
(c) The member gives written notice to the board of the death of
the member’s beneficiary.
(8) Notwithstanding any other provision of this section, any member
of the system who retired before October 3, 1989, who elected to receive
a refund of accumulated employee contributions and a life pension or
pensions under subsection (2) of this section, and who elected to convert
the life pension or pensions provided for in subsection (2) of this
section into a service retirement annuity under Option 2 or 3 under
subsection (1) of this section, shall be entitled to receive a life
pension or pensions equal to that which the member would have received on
the effective date of retirement under subsection (2) of this section and
adjusted by the actual amount of any cost-of-living or other
post-retirement adjustments made to the original life pension or pensions
since the effective date of retirement if:
(a) The member has attained 80 years of age;
(b) The person designated by the member as the member’s beneficiary
has predeceased the member; and
(c) The member gives written notice to the board of the death of
the member’s beneficiary.
(9) The service retirement allowance provided in subsection (7) or
(8) of this section shall be applicable to the first full month after the
death of the member’s beneficiary, or the first full month after the
member attains 80 years of age, whichever is later.
(10) The board may deny an election to convert a service retirement
allowance under this section, a change of beneficiary under this section
or a change in benefit options under this section if that denial is
required to maintain the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and trust
under the Internal Revenue Code and under regulations adopted pursuant to
the Internal Revenue Code. [Formerly 237.155; 1997 c.180 §1; 1999 c.317
§10; 2001 c.945 §§8,68; 2003 c.625 §3; 2005 c.138 §1]Note: Section 3, chapter 138, Oregon Laws 2005, provides:
Sec. 3. The amendments to ORS 238.305 and 238.325 by sections 1 and
2 of this 2005 Act apply to any retired member whose beneficiary dies on
or after the effective date of this 2005 Act [January 1, 2006] or for
whom a judgment of divorce is entered on or after the effective date of
this 2005 Act. [2005 c.138 §3]Note: Section 3, chapter 180, Oregon Laws 1997, provides:
Sec. 3. (1) If on October 4, 1997, a retired member is eligible for
the service retirement allowance provided by ORS 238.305 (7) or (8) but
was not eligible under ORS 238.305 (1995 Edition):
(a) The member may give written notice of the member’s eligibility
to the Public Employees Retirement Board at any time after October 4,
1997; and
(b) The service retirement allowance of the retired member under
ORS 238.305 (7) or (8) is first applicable to the first full month after
the death of the member’s beneficiary, or the first full month after the
member attained 80 years of age, whichever is later.
(2) As soon as possible after October 4, 1997, the board shall
calculate and mail a check for the amount of any retroactive payment
required under subsection (1) of this section. The retroactive payment
shall represent the difference between the total of all monthly amounts
paid to the member before the first recalculated monthly payment is made
under subsection (1) of this section, and the total of all monthly
amounts that would have been paid to the member if ORS 238.305, as
amended by section 1, chapter 180, Oregon Laws 1997, had been in effect
on and after October 3, 1989. In no event shall the increased service
allowance under ORS 238.305 (7), or the increased life pension or
pensions under ORS 238.305 (8), be applicable to any monthly payment that
was made before the first full month following October 3, 1989, and no
retroactive payment shall be made under this section for any monthly
payment that was made before the first full month following October 3,
1989. [1997 c.180 §3; 2001 c.945 §9]
(1) Notwithstanding
any other provision of this chapter, the service retirement allowance of
a member who has 15 or more years of creditable service shall be not less
than $100 a month, computed under the nonrefund plan:
(a) For a member who retires and begins receiving a service
retirement allowance before or on reaching the age of 65 years, on the
basis of retirement at the age of 65 years.
(b) For a member who retires and begins receiving a service
retirement allowance after reaching the age of 65 years, on the basis of
age reached at retirement.
(2) Any member who receives a service retirement allowance
calculated under the provisions of this section shall receive the
retirement benefit in the form of a lump sum amount as provided in ORS
238.315. [Formerly 237.200; 2001 c.945 §85] A member of
the system who has separated from the service of all participating
employers, who retires for service and whose total service retirement
allowance on the effective date of retirement, as computed by the board
in accordance with the nonrefund plan, is less than $200 per month, shall
receive, in lieu of any and all retirement allowance or other benefits
under the system, a retirement benefit in the form of a lump sum amount
equal to the actuarial value, on the effective date of retirement, of the
retirement allowance computed by the board in accordance with the
nonrefund plan. A member who receives a retirement benefit as provided in
this section is eligible to participate in insurance coverage under ORS
238.410, and the board shall determine the manner in which the cost of
that coverage payable by the member shall be paid. [Formerly 237.151;
2001 c.945 §84](Disability Retirement Allowance) (1) Whenever an employee
who is a member of the system is found, after being examined by one or
more physicians selected by the board, to be mentally or physically
incapacitated for an extended duration, as determined by medical
examination, and thereby unable to perform any work for which qualified,
by injury or disease sustained while in actual performance of duty and
not intentionally self-inflicted, the member shall receive a disability
retirement allowance consisting of:
(a) A disability retirement refund annuity based on the
contributions, if any, credited to the member account of the member.
(b) A current service pension provided by the contributions of
employers equal to:
(A) For a police officer or firefighter, the pension to which the
member would have been entitled if the member had worked continuously
until attaining the age of 55, or if the member has attained the age of
55, the pension which the member would receive were the member to retire
for service, as provided in this chapter.
(B) For a member other than a police officer or firefighter, the
pension to which the member would have been entitled if the member had
worked continuously until attaining the age of 58, or if the member has
attained the age of 58, the pension which the member would receive were
the member to retire for service, as provided in this chapter.
(c) The same prior service pension the member would have received
had the member worked until normal retirement age.
(2) As used in subsection (1) of this section, “injury” means
bodily injury causing the disability directly and independently of all
other causes and effected solely through accidental means.
(3) Whenever an employee who is a member of the system and who has
been an employee for 10 years or more of an employer participating in the
system is found, after being examined by one or more physicians selected
by the board, to be mentally or physically incapacitated for an extended
duration, as determined by medical examination, and thereby unable to
perform any work for which qualified, from cause other than injury or
disease sustained while in actual performance of duty or intentionally
self-inflicted, the member shall receive a disability retirement
allowance as provided in subsection (1) of this section.
(4) Payments under a disability retirement allowance provided for
in subsection (1) or (3) of this section for the first 90-day period of
incapacity shall be withheld until such 90-day period has elapsed.
(5) An inactive member is not eligible for disability benefits
referred to in subsection (1) or (3) of this section unless the member
applies for such disability benefits within five calendar years after the
date of separation from service with a participating public employer if
the disability is continuous from such separation date or within six
months after the date of such separation from service if disability
occurs after such separation date.
(6) In computing years of employment for the purpose of subsection
(3) of this section, the following schedule shall be used: For employment
before the employee established membership in the Public Employees
Retirement System, a member shall be considered to have been employed for
one year for each year of prior service credit allowed, and for any minor
fraction of a year of continuous service as certified by the employer for
which no prior service credit was granted. After having established
membership in the Public Employees Retirement System a member shall be
considered to have been employed one year for each 12-month period or
major fraction thereof during which time the member received compensation
for employment which entitled the member to membership in the system, as
evidenced by payroll records. For the purpose of determining a member’s
eligibility for disability benefits, no leave of absence after a member
ceases to work for any participating employer shall be considered other
than accumulated sick leave not in excess of 90 days. The effective date
of the disability shall not in any event be determined by the board as
prior to the last day for which the disabled member performed services
for a participating employer. No benefits may be paid for any month in
which the member received salary or sick leave benefits from the
participating employer.
(7) For the purposes of subsections (1) and (3) of this section, a
member of the system shall be considered to be mentally or physically
incapacitated for an extended duration if the mental or physical
incapacity can be expected to result in death or has lasted or can be
expected to last for a continuous period of not less than 90 days.
[Formerly 237.171; 2001 c.945 §51; 2003 c.67 §24] (1)
At any time after establishing membership, but before the expiration of
90 days after the Public Employees Retirement Board makes its finding
that the employee is disabled, an employee who is a member of the Public
Employees Retirement System may elect to convert the disability
retirement allowance otherwise payable on the member account of the
member into a disability retirement annuity of equivalent actuarial
value, by selecting one of the optional forms named below. The election
of Option 2, 2A, 3 or 3A shall be effective immediately upon the
effective date of the member’s disability, and in the event of death
within the first 90-day period of incapacity, payment to the beneficiary
of the member shall be made in accordance with the option selected.
Option 1. (a) A life annuity (nonrefund) payable during the
member’s life only, which shall be the actuarial equivalent of the
accumulated contributions and interest thereon credited to the member at
the time the member retires (if death occurs before the first payment is
due, the member account of the member shall be treated as though death
had occurred before retirement); (b) a life pension (nonrefund) provided
by the contributions of employers as provided in ORS 238.320 (1)(b); (c)
an additional nonrefund pension for prior service credit, including
military service, credited to the member at the time the member first
becomes a member of the system, as elsewhere provided in this chapter,
which pension shall be provided by the contributions of the employer; or
Option 2. A reduced disability retirement allowance payable during
the period of incapacity, with the provision that after death, if death
shall occur after the effective date of the disability and during the
period of incapacity, it shall continue for the life of the beneficiary
whom the member has designated in writing duly acknowledged and filed
with the board at the time of election, should the beneficiary survive
the member; or
Option 2A. A reduced disability retirement allowance payable during
the period of incapacity which, unless modified under subsection (3) of
this section, continues after death, if death shall occur after the
effective date of the disability and during the period of incapacity, for
the life of the beneficiary whom the member nominates by written
designation duly acknowledged and filed with the board at the time of
election, should the beneficiary survive the member; or
Option 3. A reduced disability retirement allowance payable during
the period of incapacity, with the provision that after death, if death
shall occur after the effective date of the disability and during the
period of incapacity, such allowance shall continue at one-half the rate
paid to the member and be paid for the life of the beneficiary whom the
member has designated in writing duly acknowledged and filed with the
board at the time of election, should the beneficiary survive the member;
or
Option 3A. A reduced disability retirement allowance payable during
the period of incapacity which, unless modified under subsection (3) of
this section, continues after death, if death shall occur after the
effective date of the disability and during the period of incapacity, at
one-half the rate paid to the member and is paid for the life of the
beneficiary whom the member nominates by written designation duly
acknowledged and filed with the board at the time of election, should the
beneficiary survive the member; or
Option 4. A reduced disability retirement allowance payable during
the period of incapacity, with the provisions that if the member dies
during the period of incapacity and before a total of 180 monthly
payments is made, the remainder of the 180 monthly payments shall be paid
monthly to the beneficiary the member nominates by written designation
duly acknowledged and filed with the board at any time before the
member’s death; and that if the member designates no beneficiary to
receive the monthly payments or no such beneficiary is able to receive
the monthly payments, an amount equal to the actuarial value, on the date
of the member’s death, of the total of the monthly payments not made to
the member shall be paid according to ORS 238.390 for disposal of an
amount credited to the member account of a member at the time of death;
and that if the beneficiary receiving monthly payments dies before the
total number of monthly payments to which the beneficiary is entitled is
made, an amount equal to the actuarial value, on the date of the
beneficiary’s death, of the total of the monthly payments not made to the
member and beneficiary shall be paid according to ORS 238.390 for
disposal of an amount credited to the member account of a member at the
time of death and as if the beneficiary had been a member.
(2) The beneficiary designated by a member to receive any benefit
under this section shall be the same as designated under ORS 238.390 (1).
The designation of a beneficiary or the election of an option may be
changed by a member within 60 days after the date of the first benefit
payment, except that the designation of a beneficiary under Option 4 may
be changed by the member at any time before the member’s death.
(3) If a retired member has elected to receive a disability
retirement allowance under Option 2A or Option 3A as provided in
subsection (1) of this section, and if the beneficiary under that option
dies after the expiration of the time within which the member could
change the election of an option or if the beneficiary is the spouse of
the member and the marriage relationship is terminated as provided by law
after the expiration of the time within which the member could change the
election of an option, the member may elect to receive, in lieu of the
optional form of allowance previously elected, the allowance that the
member would have received on the effective date of retirement under
Option 1 as provided in subsection (1) of this section and adjusted by
the actual amount of any cost-of-living or other post-retirement
adjustments made to the original allowance since the effective date of
retirement. Notice of election under this subsection must be in a form
approved by the board. If an election is made under this subsection, the
Option 1 payment amount is applicable to the first full month after the
death of the beneficiary, or the first full month after entry of the
judgment of divorce, and payable the first day of the month thereafter.
If the increased amount is not paid in any month in which the increased
amount is due, the board shall make a lump sum payment to the retired
member that is equal to the difference between the amount paid to the
member for that month and the amount that should have been paid under the
provisions of this subsection.
(4) The cost to the system of a disability retirement allowance in
any optional form may not exceed the cost to the system of a nonrefund
disability retirement allowance payable to, and on account of, the member
making such election.
(5) The obligation for payment of any benefit in force prior to
April 8, 1953, may not be altered by subsections (1) to (4) of this
section. However, the beneficiary of a retired member who prior to July
1, 1953, elected an option but died prior to the effective date of such
election, shall have a right to repay, before December 31, 1953, the
amount of the lump sum refund made in lieu of the monthly life benefit
elected and receive payment of such benefit, computed as of the date of
the member’s death and payable from such date.
(6) If a member who would have qualified for disability benefits
makes preliminary application for such benefits but dies prior to being
found by the board to be disabled or prior to electing a plan of benefit
payments, and the records of the board indicate that the member had
designated the surviving spouse as beneficiary under ORS 238.390 (1),
such surviving spouse may, not more than 90 days after the board makes
its finding that the member would have qualified for disability benefits
if living:
(a) Elect to receive the amount referred to in ORS 238.395 if such
benefit would have been available if the member had not applied for
disability benefits;
(b) If not eligible for benefits under ORS 238.395, elect to
receive benefits under ORS 238.390 (1); or
(c) Elect Option 2 or 3 under subsection (1) of this section and
designate the surviving spouse as beneficiary thereunder with the same
force and effect as if the election and designation had been properly
made by the deceased member.
(7) The board may deny an election to convert a disability
retirement allowance under this section, a change of beneficiary under
this section or a change in benefit options under this section if that
denial is required to maintain the status of the system and the Public
Employees Retirement Fund as a qualified governmental retirement plan and
trust under the Internal Revenue Code and under regulations adopted
pursuant to the Internal Revenue Code. [Formerly 237.181; 1999 c.317 §11;
2001 c.945 §52; 2005 c.138 §2]Note: See first note under 238.305. (1) Whenever an
active or inactive member of the system has been found to be entitled to
a disability retirement allowance as provided in ORS 238.320, the member
shall receive not less than an aggregate of $100 a month under the
nonrefund plan, subject to reduction to equivalent actuarial value in the
event of the member’s exercising any option provided by ORS 238.325.
(2) Notwithstanding ORS 238.320, 238.325 and subsection (1) of this
section, if an active or inactive member of the system has been found to
be entitled to a disability retirement allowance as provided in ORS
238.320 after the member has passed earliest service retirement age, the
amount of monthly disability retirement allowance shall not be less than
the amount which the member would have received had the member retired
for service and elected the same option.
(3) Notwithstanding ORS 238.320, 238.325 and subsection (1) of this
section, the amount of a monthly disability retirement allowance shall be
reduced by the amount by which the combined total of the disability
retirement allowance to which the retired member is otherwise entitled
for the month and the earned income for the month exceeds the monthly
salary received by the retired member at the time of retirement for
disability; but the amount of the reduction shall not reduce the combined
total of the disability retirement allowance and earned income for the
month to less than $400. [Formerly 237.187]
The board shall require medical examinations for all applicants for
retirement for disability under such general rules as it prescribes, and
may provide for the discontinuance of any disability retirement allowance
and the forfeiture of all rights under this chapter, in the case of any
person who refuses to submit to such an examination. [Formerly 237.191] When a member retired because of disability
is determined by the Public Employees Retirement Board to be not
incapacitated to the extent that the member is disabled from the
performance of any work for which the member is qualified, the disability
retirement shall be canceled forthwith, the member shall be eligible for
reemployment and the member account of the member shall be credited with
the amount that stood to the credit in the member account of the member
in the fund at the time of retirement for disability. Any such person who
for any reason is not reinstated in the service of an employer
participating in the system shall receive separation benefits or service
retirement benefits as provided in this chapter. [Formerly 237.195; 1997
c.53 §1; 2001 c.945 §53](1) A police officer or
firefighter, other than a volunteer firefighter, who would be entitled to
receive disability benefits as a member of the Public Employees
Retirement System under ORS 238.320 (1), may elect to receive the
service-connected disability retirement allowance authorized under this
section. The allowance authorized under this section is an amount equal
to 50 percent of the police officer’s or firefighter’s final average
salary as determined at the date of the injury causing the disability. If
elected, the allowance authorized under this section is in lieu of any
service-connected disability retirement benefit available under this
chapter.
(2) The election to receive the benefits authorized under
subsection (1) of this section shall be made within 90 days after the
board makes its decision that the police officer or firefighter is
disabled. The election once made shall not be changed.
(3) A police officer or firefighter electing to receive the
benefits authorized under subsection (1) of this section may elect to
convert those benefits to a service-connected disability retirement
annuity of equivalent actuarial value as provided in ORS 238.325.
(4) Nothing in this section shall interfere with the right of a
police officer or firefighter to receive a disability retirement
allowance under this chapter for disability not incurred in the line of
duty. [Formerly 237.173](Use of Sick Leave to Increase Retirement Allowance)(1)(a) Upon the request by a public employer that its employees be
compensated for accumulated unused sick leave with pay in the form of
increased retirement benefits upon service or disability retirement, the
board shall establish a procedure for adding to the gross amount of
salary used in determining final average salary the monetary value of
one-half of the accumulated unused sick leave with pay of each retiring
employee of the requesting public employer and shall establish benefits
of the retiring employee on the basis of a final average salary
reflecting that addition.
(b) For employees of a common school district, a union high school
district, an education service district or a community college, or
employees of the State Board of Higher Education engaged in teaching or
other school activity at an institution of higher education, or employees
of state schools for the deaf or blind engaged in teaching or other
school activity, who are employed under contract for a period of less
than 12 consecutive months and who are entitled to sick leave with pay of
less than 96 hours for a year, each hour of accumulated unused sick leave
with pay shall be valued on the basis of the actual number of contract
hours of employment during the last year of contributing membership of an
employee before retiring and the salary of the employee during the same
period. This paragraph does not apply to any employee who is employed
under contract for 12 consecutive months in any of the three or less
years used in determining the final average salary of the employee.
(c) For the purpose of this subsection, accumulated unused sick
leave with pay includes unused sick leave with pay accumulated by an
active member of the system while in the service of any public employer
participating in the system that has the request described in paragraph
(a) of this subsection in effect at the time of the member’s separation
from the service of the employer, whether that employer is or is not the
employer of the member at the time of the member’s retirement.
(d) The board shall establish rules requiring all public employers
participating in the system to transmit to the board reports of unused
sick leave with pay accumulated by their employees who are members of the
system and to provide timely notification to each of those employees of
unused sick leave with pay accumulated by the employee and reported to
the board.
(2) Accumulated unused sick leave with pay may be considered for
the purpose of subsection (1) of this section only in accordance with the
following requirements:
(a) Sick leave not credited at the rate actually provided by the
public employer may not be considered. The amount of sick leave exceeding
an amount credited at the lowest rate in effect for any employee of the
public employer who is normally entitled to sick leave, and in any event
exceeding an amount credited at a rate of eight hours for each full month
worked, may not be considered.
(b) Sick leave credited for periods when an employee was absent
from employment on sabbatical leave, educational leave or any leave
without pay may not be considered.
(c) Any period during which an employee was absent from employment
for illness or injury that was charged against sick leave not qualified
for consideration shall be deducted from sick leave qualified for
consideration.
(d) Sick leave for any period for which the public employer
provides no sick leave with pay for its employees may not be considered.
(e) Sick leave accumulated on and after July 1, 1973, may be
considered only to the extent it is supported by records of accumulation
and use pursuant to a plan adopted formally by the public employer.
(f) Accumulated unused sick leave for periods before July 1, 1973,
may be considered as follows:
(A) If any department, bureau or other organizational unit of a
public employer maintained formal records of accumulation and use even
though the public employer did not require that those records be
maintained, the accumulated unused sick leave shall be considered
according to those records.
(B) Where the public employer provided sick leave before July 1,
1973, but formal records of accumulation and use were not required or if
required, are unavailable or incomplete, or the sick leave was subject to
administrative limitations on total accumulation or transfer between
public employers, accumulated unused sick leave for periods before July
1, 1973, may be considered as equal to 2.675 hours for each full month
worked or an amount per month equal to the average monthly accumulation
by an employee during the period beginning July 1, 1973, and ending at
the time of retirement, whichever amount is greater, but reduced by the
amount of any accumulated unused sick leave credited to the employee on
July 1, 1973.
(g) The written certification of a member or former member of the
Legislative Assembly shall constitute a formal record of accumulation and
use in determining the amount of accumulated unused sick leave of an
employee of the Legislative Assembly, either of its houses or any of its
committees or officers for periods of employment before July 1, 1981.
Sick leave accumulated on and after July 1, 1981, by employees of the
Legislative Assembly, either of its houses or any of its committees or
officers may be considered only to the extent it is supported by records
of accumulation and use maintained by the Legislative Administration
Committee, or any statutory, standing, special or interim committee of
the Legislative Assembly or either house thereof, or any constitutional
or statutory office of the Legislative Assembly or either house thereof,
pursuant to a plan adopted formally by the committee or officer.
(3)(a) As used in this subsection, “legislative employee” means any
person employed by the Legislative Assembly, either of its houses or any
of its committees or officers, but does not include a regular employee of
a statutory committee or statutory office of the Legislative Assembly
described in ORS 173.005 (1).
(b) Upon the request of a retiring legislative employee who is a
member of the system, and the request of the public employer of the
legislative employee, that the legislative employee be compensated for
accumulated unused vacation with pay for periods of legislative
employment in the form of increased retirement benefits upon service or
disability retirement, the board shall add to the gross amount of salary
used in determining final average salary of the legislative employee the
monetary value of one-half of the accumulated unused vacation with pay of
the legislative employee and shall establish the benefits of the
legislative employee on the basis of a final average salary reflecting
that addition.
(c) Accumulated unused vacation with pay may be considered for the
purposes of paragraph (b) of this subsection only in accordance with the
following requirements:
(A) Vacation not credited at the rate actually provided by the
public employer may not be considered.
(B) Amounts of vacation exceeding amounts creditable to employees
in the classified service of the state service pursuant to ORS 240.515
(1), and rules adopted pursuant thereto, in effect on June 30, 1981,
shall not be considered.
(C) Vacation accumulated before, on and after July 1, 1981, may be
considered only to the extent it is supported by records of accumulation
and use pursuant to a plan adopted formally by the public employer.
However, the written certification of a member or former member of the
Legislative Assembly shall constitute a formal record of accumulation and
use in determining the amount of accumulated unused vacation of a
legislative employee for periods of legislative employment before July 1,
1981.
(4) Employers with plans providing payments on account of sickness
in lieu of sick leave with pay may request the board to consider the
monetary value of accumulated unused payments on account of sickness as
if such payments were an equivalent amount of accumulated unused sick
leave with pay under the same terms and conditions specified in
subsections (1) and (2) of this section. [Formerly 237.153; 1997 c.249
§68; 2001 c.295 §10]Notwithstanding ORS 238.350 (2)(a), unused sick leave for
community college employees shall accumulate for an unlimited number of
days and shall accumulate at the rate of 10 days per school year or one
day per month employed, whichever is greater. Except as provided in ORS
238.350 (1)(b), unused sick leave accumulated by community college
employees shall be computed in the same manner as for employees in state
classified service for computation of retirement benefits. [Formerly
237.017 (1)](Cost-of-Living Adjustments) (1) As soon as practicable
after January 1 each year, the Public Employees Retirement Board shall
determine the percentage increase or decrease in the cost-of-living for
the previous calendar year, based on the Consumer Price Index (Portland
area–all items) as published by the Bureau of Labor Statistics of the
U.S. Department of Labor for the Portland, Oregon area. Prior to July 1
each year the allowance which the member or the member’s beneficiary is
receiving or is entitled to receive on August 1 for the month of July
shall be multiplied by the percentage figure determined, and the
allowance for the next 12 months beginning July 1 adjusted to the
resultant amount.
(2) Such increase or decrease shall not exceed two percent of any
monthly retirement allowance in any year and no allowance shall be
adjusted to an amount less than the amount to which the recipient would
be entitled if no cost-of-living adjustment were authorized.
(3) The amount of any cost-of-living increase or decrease in any
year in excess of the maximum annual retirement allowance adjustment of
two percent shall be accumulated from year to year and included in the
computation of increases or decreases in succeeding years.
(4) Any increase in the allowance shall be paid from contributions
of the public employer under ORS 238.225. Any decrease in the allowance
shall be returned to the employer in the form of a credit against
contributions of the employer under ORS 238.225. [Formerly 237.060; 2001
c.945 §79](Benefit Increases in Compensation of Claims Based on Taxation of
Benefits)(1) Notwithstanding any
other provision of sections 3 to 10, chapter 569, Oregon Laws 1995, the
increased benefits payable under ORS 238.380 and 238.387 (2), including
all increased benefits payable to judge members by reason of the
application of ORS 238.380 and 238.387 (2) to judge members, and under
section 10, chapter 569, Oregon Laws 1995:
(a) Shall not be paid in any tax year in which retirement benefits
that are payable under the Public Employees Retirement System and that
are attributable to service rendered by the member before September 29,
1991, are wholly exempt from Oregon personal income taxation under Oregon
law.
(b) Shall be reduced proportionately for any tax year in which
retirement benefits that are payable under the Public Employees
Retirement System and that are attributable to service rendered by the
member before September 29, 1991, are partially exempt from Oregon
personal income taxation under Oregon law.
(2) An overpayment of benefits that results from the operation of
subsection (1) of this section is not recoverable from the recipient of
the benefits, but the Public Employees Retirement Board shall ensure that
no additional overpayments are made.
(3) No member of the system or beneficiary of a member of the
system shall acquire a right, contractual or otherwise, to the increased
benefits provided by sections 3 to 10, chapter 569, Oregon Laws 1995.
(4)(a) Notwithstanding any other provision of law, a class action
may not be commenced on or after July 14, 1995, based on a claim for
damages arising out of the subjecting of benefits paid under this chapter
to Oregon personal income taxation by act of the Legislative Assembly.
(b) Notwithstanding any other provision of law, any court in which
there is pending on May 30, 1997, a class action that was commenced
before July 14, 1995, based on a claim for damages arising out of the
subjecting of benefits paid under this chapter to Oregon personal income
taxation, may at any time after May 30, 1997, reopen that class action if
by act of the Legislative Assembly there is a decrease in the benefit
payable under ORS 238.380 or 238.387 (2), or in the benefits payable to
judge members by reason of the application of ORS 238.380 or 238.387 (2)
to judge members, or in the benefits payable to any member, judge member
or beneficiary under section 10, chapter 569, Oregon Laws 1995, without
an equivalent decrease in the personal income tax imposed under Oregon
law on benefits paid under the system that are attributable to service
rendered before September 29, 1991. Upon reopening the class action, the
court may change the membership of the classes and may grant such further
relief as may be warranted, including the entry of a judgment for damages
or a judgment for supplemental relief under ORS 28.080. [1995 c.569 §2;
1997 c.175 §4; 2001 c.945 §70]
(1)(a) Upon retirement of an employee who is a member of the Public
Employees Retirement System and computation of that member’s service
retirement allowance under ORS 238.300, 238.305 or 238.425, or
computation of any disability retirement allowance under ORS 238.320,
238.325, 238.330, 238.345 or 238.425, the Public Employees Retirement
Board shall add to the amount of the allowance, including amounts
attributable to prior service credit and the amount of any refund of
accumulated employee contributions, the greater of the percentage
increase calculated under ORS 238.385 or a percentage increase calculated
under subsection (4) of this section. No benefit shall be paid to a
member or beneficiary under ORS 238.385 if the benefit payable to the
member or beneficiary under this section is larger than the benefit
payable under ORS 238.385.
(b) The percentage increase provided for in this section shall be
adjusted by the board to reflect increases or decreases in a member’s
retirement allowance that are attributable to the member’s participation
in the Variable Annuity Account established by ORS 238.260, that are
attributable to a change in the member’s beneficiary or payment option
under ORS 238.305 or 238.325, or that are attributable to corrections to
the member’s retirement allowance calculation.
(c) The percentage increase provided for in this section shall be
applied to any lump sum payment made to a member or a beneficiary of a
member on or after January 1, 1991, that is attributable to a retroactive
correction or adjustment of the amount payable to the member or
beneficiary as a retirement allowance or that is attributable to a
retroactive correction or adjustment to any other benefit that entitles a
member or beneficiary to an increased benefit under this section. The
percentage increase payable under this paragraph applies only to the
principal amounts included in the lump sum payment as a retroactive
correction or adjustment and does not apply to any interest on the
retroactive correction or adjustment paid as part of the lump sum payment.
(2) The amount of any death benefit under ORS 238.390, 238.395,
238.400 or 238.405, including the amount of any monthly payments, shall
be increased by the greater of the percentage provided for in ORS 238.385
or the percentage calculated under subsection (4) of this section.
(3)(a) A member of the system who elects to receive a lump sum in
lieu of a retirement allowance or other benefit under ORS 238.315 shall
receive an increase based on the greater of the percentage provided for
in ORS 238.385 or the percentage calculated under subsection (4) of this
section.
(b) A member of the system who withdraws the amount credited to the
member account, if any, of the member in the fund under the provisions of
ORS 238.265, or whose member account is returned to the employee after
the membership of the employee is terminated under the provisions of ORS
238.095, shall receive an additional amount calculated by multiplying the
amount of the member account of the member by the greater of the
percentage provided for in ORS 238.385 or the percentage calculated under
subsection (4) of this section. If a member thereafter elects to obtain
restoration of creditable service by repaying the amount of the withdrawn
member account pursuant to the provisions of ORS 238.105, the member must
also repay all amounts paid under this section, together with interest
from the date of withdrawal at the same rate as applied to the withdrawn
member account under ORS 238.105. If a member repays only part of the
withdrawn member account pursuant to the provisions of ORS 238.115, the
member must repay that part of the amount paid under this section that is
proportionate to the portion of the withdrawn member account that is
repaid under ORS 238.115, together with interest from the date of
withdrawal at the same rate as applied to the withdrawn member account
under ORS 238.115. All amounts paid to the member that are subsequently
repaid under ORS 238.105 or 238.115 shall be deposited by the board to
the employer reserve for pension accounts in the fund.
(4)(a) The Public Employees Retirement Board shall calculate a
multiplier for the purposes of this section equal to the percentage
produced by the following formula:1
______________________
1 - the maximum Oregon
personal income tax rate (b) Upon the retirement or death of a member of the system, the
board shall determine the fraction of the member’s retirement allowance
or death benefit, including any refund or lump sum payment, that is
attributable to service rendered by the member before October 1, 1991.
The board shall then calculate a percentage that is equal to that
fraction multiplied by the multiplier determined by the board under
paragraph (a) of this subsection. The percentage so calculated shall be
used to determine the amount of the increase in benefits provided to a
member, if any, under this section.
(5) For the purpose of determining that portion of a retirement
allowance or death benefit attributable to service rendered before
October 1, 1991, the board shall divide the number of years of creditable
service performed before October 1, 1991, by the total number of years of
creditable service during which the pension income was earned. For the
purposes of this subsection:
(a) The number of years of creditable service does not include any
period of employment for which a benefit is paid for prior service credit.
(b) Except as provided in subsection (8)(a) of this section, the
number of years of creditable service includes all retirement credit of
the member, and any retirement credit of a member that is attributable to
periods of service, employment or other activity performed before October
1, 1991, shall be considered creditable service performed before October
1, 1991.
(6) The increased benefits provided for in this section shall be
funded by employer contributions.
(7) If the maximum Oregon income tax rate is changed for any
taxable year, the board shall utilize the new rate for the purposes of
calculating the benefit provided for in this section for all members of
the system who retire or die after the change in rates takes effect. In
addition, the board shall recalculate the benefits payable to all retired
members of the Public Employees Retirement System, or to the
beneficiaries of those members, using the new tax rate. The benefit so
recalculated shall be applicable to the first full month after the
recalculation is made, and be payable the first day of the month
immediately following. If by reason of the calculation or recalculation
of the benefit under this subsection the amount of the benefit provided
for in this section is decreased, any benefits paid after the change in
the tax rate takes effect and before the calculation or recalculation is
made shall not be recoverable by the system, but the Public Employees
Retirement Board shall ensure that only the amount of the benefit so
calculated or recalculated shall be paid after the calculation or
recalculation is made.
(8)(a) The increased benefits provided by this section apply only
to members who establish membership in the Public Employees Retirement
System before July 14, 1995, and whose effective date of retirement or
date of death is on or after January 1, 1991. The increased benefits
provided by this section do not apply to any creditable service or prior
service credit acquired by a member under the terms of a contract of
integration entered into pursuant to ORS 238.035, 238.680 or 238.690 on
or after October 1, 1991.
(b) The recalculation of benefits provided for in subsection (7) of
this section applies to all retired members, without regard to the date
of the member’s retirement or death.
(9) If a member is entitled to receive an increased benefit under
the provisions of this section, and any portion of the member’s
retirement allowance or other benefit payable under the system is payable
to an alternate payee under the provisions of ORS 238.465, the increased
benefits payable under this section shall be divided between the member
and the alternate payee in proportion to the share of the total benefit
received by each person. If an alternate payee elects to begin receiving
benefits under ORS 238.465 (1) before the member’s effective date of
retirement, the alternate payee may not begin receiving the increased
benefit provided for in this section until benefits are first paid from
the system on behalf of the member.
(10) A person establishes membership in the system before July 14,
1995, for the purposes of subsection (8) of this section if:
(a) The person is a member of the system, or a judge member of the
system, on July 14, 1995;
(b) The person was a member of the system before July 14, 1995,
ceased to be a member of the system under the provisions of ORS 238.095,
238.265 or 238.545 before July 14, 1995, but restores part or all of the
forfeited creditable service from before July 14, 1995, under the
provisions of ORS 238.105 or 238.115 after July 14, 1995; or
(c) The person performed any period of service for a participating
public employer before July 14, 1995, that is credited to the six-month
period of employment required of an employee under ORS 238.015 before an
employee may become a member of the system. [1995 c.569 §3; 1997 c.175
§5; 2001 c.945 §54; 2003 c.67 §30]
(1)(a) Upon retirement of an employee who is a member of the Public
Employees Retirement System and computation of that member’s service
retirement allowance under ORS 238.300, 238.305 or 238.425, or
computation of any disability retirement allowance under ORS 238.320,
238.325, 238.330, 238.345 or 238.425, the Public Employees Retirement
Board shall add to the amount of the allowance, including amounts
attributable to prior service credit and the amount of any refund of
accumulated member contributions, an additional amount equal to the
percentage increase provided in subsection (4) of this section.
(b) The percentage increase provided for in this section shall be
adjusted by the board to reflect increases or decreases in a member’s
retirement allowance that are attributable to the member’s participation
in the Variable Annuity Account established by ORS 238.260, that are
attributable to a change in the member’s beneficiary or payment option
under ORS 238.305 or 238.325, or that are attributable to corrections to
the member’s retirement allowance calculation.
(c) The percentage increase provided for in this section shall be
applied to any lump sum payment made to a member or a beneficiary of a
member on or after January 1, 1991, that is attributable to a retroactive
correction or adjustment of the amount payable to the member or
beneficiary as a retirement allowance or that is attributable to a
retroactive correction or adjustment to any other benefit that entitles a
member or beneficiary to an increased benefit under this section. The
percentage increase payable under this paragraph applies only to the
principal amounts included in the lump sum payment as a retroactive
correction or adjustment and does not apply to any interest on the
retroactive correction or adjustment paid as part of the lump sum payment.
(2) The amount of any death benefit under ORS 238.390, 238.395,
238.400 or 238.405, including the amount of any monthly payments, shall
be increased by an amount equal to the percentage increase provided in
subsection (4) of this section.
(3)(a) A member of the system who receives a lump sum under ORS
238.315 in lieu of a retirement allowance or other benefit shall receive
an additional amount equal to the percentage increase provided in
subsection (4) of this section.
(b) A member of the system who withdraws the amount credited to the
member account, if any, of the member under the provisions of ORS
238.265, or whose member account is returned to the employee after the
membership of the employee is terminated under the provisions of ORS
238.095, shall receive an additional amount calculated by multiplying the
amount of the member account of the member by the percentage increase
provided for under subsection (4) of this section. If a member thereafter
elects to obtain restoration of creditable service by repaying the amount
of the withdrawn member account pursuant to the provisions of ORS
238.105, the member must also repay all amounts paid under this section,
together with interest from the date of withdrawal at the same rate as
applied to the withdrawn member account under ORS 238.105. If a member
repays only part of the withdrawn member account pursuant to the
provisions of ORS 238.115, the member must repay that part of the amount
paid under this section that is proportionate to the portion of the
withdrawn member account that is repaid under ORS 238.115, together with
interest from the date of withdrawal at the same rate as applied to the
withdrawn member account under ORS 238.115. All amounts paid to the
member that are subsequently repaid under ORS 238.105 or 238.115 shall be
deposited by the board to the employer reserve for pension accounts in
the fund.
(4)(a) The percentage increases provided for in this section to the
benefits payable to or on account of a member of the system who is
serving as other than a police officer or firefighter at the time of
death or retirement shall be:
(A) For a member with a combined total of 10 or more years of
creditable service in the system and prior service credit but less than a
combined total of 20 years, one percent.
(B) For a member with a combined total of 20 or more years of
creditable service in the system and prior service credit but less than a
combined total of 25 years, two percent.
(C) For a member with a combined total of 25 or more years of
creditable service in the system and prior service credit but less than a
combined total of 30 years, three percent.
(D) For a member with a combined total of 30 or more years of
creditable service in the system and prior service credit, four percent.
(b) The percentage increases provided for in this section to the
benefits payable to or on account of a member of the system who is
serving as a police officer or firefighter at the time of death or
retirement shall be:
(A) For a member with a combined total of 10 or more years of
creditable service in the system and prior service credit but less than a
combined total of 20 years, one percent.
(B) For a member with a combined total of 20 or more years of
creditable service in the system and prior service credit but less than a
combined total of 25 years, two and one-half percent.
(C) For a member with a combined total of 25 or more years of
creditable service in the system and prior service credit, four percent.
(c) The benefits payable to or on account of a member with less
than a combined total of 10 years of creditable service in the system and
prior service credit at the time of death or retirement shall not be
increased under the provisions of this section.
(5) The increased benefits provided for in this section shall be
funded by employer contributions.
(6) This section applies only to a member who establishes
membership in the Public Employees Retirement System before July 14,
1995, as described in ORS 238.380 (10), and whose effective date of
retirement or date of death is on or after January 1, 1991. The increased
benefits provided by this section do not apply to any creditable service
or prior service credit acquired by a member under the terms of a
contract of integration entered into pursuant to ORS 238.035, 238.680 or
238.690 on or after October 1, 1991.
(7) If a member is entitled to receive an increased benefit under
the provisions of this section, and any portion of the member’s
retirement allowance or other benefit payable under the system is payable
to an alternate payee under the provisions of ORS 238.465, the increased
benefits payable under this section shall be divided between the member
and the alternate payee in proportion to the share of the total benefit
received by each person. If an alternate payee elects to begin receiving
benefits under ORS 238.465 (1) before the member’s effective date of
retirement, the alternate payee may not begin receiving the increased
benefit provided for in this section until benefits are first paid from
the system on behalf of the member. [Formerly 237.208; 1997 c.175 §6;
2001 c.945 §55; 2003 c.67 §31](1) In addition to any increase under ORS
238.360, first effective for the month of December 1990, payable January
1, 1991, the monthly retirement allowance payable to or on account of any
person who has retired as a member of the Public Employees Retirement
System shall be increased by the following percentages:
(a) If the member was serving as other than a police officer or
firefighter at the time of retirement, the percentage increase shall be:
(A) For a member with a combined total of 10 or more years of
creditable service in the system and prior service credit but less than a
combined total of 20 years, one percent.
(B) For a member with a combined total of 20 or more years of
creditable service in the system and prior service credit but less than a
combined total of 25 years, two percent.
(C) For a member with a combined total of 25 or more years of
creditable service in the system and prior service credit but less than a
combined total of 30 years, three percent.
(D) For a member with a combined total of 30 or more years of
creditable service in the system and prior service credit, four percent.
(b) If the member was serving as a police officer or firefighter at
the time of retirement, the percentage increase shall be:
(A) For a member with a combined total of 10 or more years of
creditable service in the system and prior service credit but less than a
combined total of 20 years, one percent.
(B) For a member with a combined total of 20 or more years of
creditable service in the system and prior service credit but less than a
combined total of 25 years, two and one-half percent.
(C) For a member with a combined total of 25 or more years of
creditable service in the system and prior service credit, four percent.
(c) The monthly retirement allowance payable to or on account of a
member with less than a combined total of 10 years of creditable service
in the system and prior service credit at the time of retirement shall
not be increased under the provisions of this subsection.
(2) In addition to any increase under ORS 238.360, first effective
for the month of December 1990, payable January 1, 1991, the monthly
retirement allowance payable to or on account of any person who has
retired as a member of the Public Employees Retirement System shall be
increased by a percentage equal to the percentage calculated under ORS
238.380 (4), less any increase provided to the retired member under
subsection (1) of this section.
(3) The increased allowance provided in subsections (1) and (2) of
this section shall be funded by employer contributions. [Formerly 238.365](Death Benefits) (1) If a member of the system dies before
retiring, the amount of money, if any, credited at the time of death to
the member account of the member in the fund shall be paid to the
beneficiaries designated by the member. For this purpose a member may
designate as a beneficiary any person or the executor or administrator of
the estate of the member or a trustee named by the member to execute an
express trust in regard to such amount. The termination of a person’s
membership in the system pursuant to ORS 238.095 (1) or (2) invalidates
any designation of beneficiary made by the person before the termination
of membership.
(2) If a member dies before retiring and has not designated a
beneficiary under subsection (1) of this section, the Public Employees
Retirement Board shall pay the amount of money, if any, credited at the
time of death to the member account of the deceased member to a personal
representative appointed for the estate of the deceased member. If an
affidavit has been filed under ORS 114.505 to 114.560, and the amount of
money credited to the account does not exceed the maximum amount of
personal property for which an affidavit may be filed under ORS 114.505
to 114.560, the board shall pay the amount to the person who filed the
affidavit.
(3) The beneficiary designated under subsection (1) of this section
may elect to receive the amount payable in actuarially determined monthly
payments for the life of such beneficiary as long as such monthly
payments are at least $200.
(4) Accrued benefits due a retired member at the time of death are
payable to the designated beneficiary or as provided in subsection (2) of
this section. For the purpose of determining accrued benefits due a
retired member at the time of death, accrued benefits are considered to
have ceased as of the last day of the month preceding the month in which
the retired member dies; but if Option 2 or Option 3 under ORS 238.305
has been elected as provided in this chapter and the beneficiary survives
the retired member, the benefits to the beneficiary shall commence as of
the first day of the month in which the retired member dies, and payment
of benefits under Option 2 or Option 3 shall cease with the payment for
the month preceding the month in which the beneficiary dies.
(5) If a member dies before retiring and has designated a
beneficiary under subsection (1) of this section, but the beneficiary
dies before the member, or dies before distribution is made under this
section, the Public Employees Retirement Board shall pay the amount of
money, if any, that would otherwise have been paid to the beneficiary to
a personal representative appointed for the estate of the deceased
beneficiary. If an affidavit has been filed under ORS 114.505 to 114.560,
and the amount of money that would have been paid to the beneficiary does
not exceed the maximum amount of personal property for which an affidavit
may be filed under ORS 114.505 to 114.560, the board shall pay the amount
to the person who filed the affidavit on behalf of the estate of the
beneficiary.
(6) Interest upon the member account of the member shall accrue
until the date that the amount in the member account is distributed. Any
balance in the variable account of the deceased member is considered to
be transferred to the regular account of the member as of the date of
death. The board shall establish procedures for computing and crediting
interest on the balance in the member account for the period between the
date of death and date of distribution.
(7) Payment by the board of amounts in the manner provided by this
section completely discharges the board and system on account of the
death, and shall hold the board and system harmless from any claim for
wrongful payment. [Formerly 237.165; 2001 c.945 §56; 2003 c.67 §25; 2003
c.625 §1; 2005 c.808 §28]Note: Section 29, chapter 808, Oregon Laws 2005, provides:
Sec. 29. (1) Except as provided in subsection (2) of this section,
the amendments to ORS 238.390 by section 28 of this 2005 Act apply to all
members of the Public Employees Retirement System whose membership in the
system is terminated, whether the termination occurs before, on or after
the effective date of this 2005 Act [November 4, 2005].
(2) The amendments to ORS 238.390 by section 28 of this 2005 Act do
not apply to any member of the system who died before the effective date
of this 2005 Act. [2005 c.808 §29] (1) In addition to any other
benefits under this chapter, a death benefit, provided by contributions
of the public employer under ORS 238.225, shall be paid to the
beneficiaries designated under ORS 238.390 (1) of a person who is an
active or inactive member of the system and who dies as a result of
injuries received while employed in the service of the public employer or
within 120 days after termination from service with a participating
public employer. A member who is on a leave of absence without pay from
employment with a participating public employer has not terminated
service with that participating public employer for the purposes of this
section.
(2) The death benefit referred to in subsection (1) of this section
shall be an amount equal to the amount in the member account of the
deceased member at the time of death.
(3) In the event that a beneficiary has not been named as provided
in subsection (1) of this section and ORS 238.390 (1), the death benefit
referred to in subsection (1) of this section shall be paid in the manner
provided for payment of money credited to the member account of the
member in ORS 238.390 (2).
(4) The beneficiary designated under subsection (1) of this section
and ORS 238.390 (1) may elect to receive the amount payable in
actuarially determined monthly payments for the life of such beneficiary
as long as such monthly payments, plus the monthly amount if elected
under ORS 238.390 (3), are at least $200.
(5) Interest upon the death benefit provided by this section shall
accrue until the date that the benefit is distributed. The board shall
establish procedures for computing interest to be credited on the benefit
for the period between the date of death and date of distribution.
(6) Payment by the Public Employees Retirement Board of additional
death benefits in the manner provided by this section completely
discharges the board and system on account of the death, and shall hold
the board and system harmless from any claim for wrongful payment.
[Formerly 237.169; 2001 c.945 §57; 2003 c.625 §4]If a person who is a member of the
system, who has attained normal retirement age and who has retired from
service, dies without making an election under ORS 238.305 and prior to
the expiration of the time within which such an election could be made by
the person, and the records of the Public Employees Retirement Board
indicate that the person has designated the surviving spouse as the
beneficiary under ORS 238.390 (1), such surviving spouse may, not more
than 60 days after the date of the death of such deceased member, elect
to receive the amount referred to in ORS 238.390 (1), or elect Option 2
or Option 3 under ORS 238.305 and designate self as the beneficiary
thereunder with the same force and effect as if the election and
designation had been properly made by the deceased member. [Formerly
237.167](1) The surviving spouse or child of a police
officer or firefighter, who died a member of the Public Employees
Retirement System while retired either for service or disability and
while receiving or being entitled to receive a benefit under ORS 238.345
or under this chapter, is entitled to a benefit under this section. The
benefit shall be equal to 25 percent of the unmodified retirement
allowance the police officer or firefighter was receiving or was entitled
to receive at the time of death under ORS 238.345 or under this chapter.
The benefit authorized by this section is in addition to any other
benefit the surviving spouse or child is entitled to and is available to
the child until the child attains 18 years of age.
(2) For the purpose of this section, the unmodified retirement
allowance is that allowance described in ORS 238.300, or if election to
receive the benefits authorized under ORS 238.345 has been made, the
unmodified retirement allowance is 50 percent of the final average salary
of the police officer or firefighter as determined on the date of the
injury causing disability.
(3) The board shall pay to a surviving spouse or child entitled to
a benefit under this section a lump sum amount equal to the actuarial
value of the allowance provided under this section if the allowance is
less than $30 per month. The lump sum amount shall be in lieu of the
allowance provided for under this section. [Formerly 237.163](Insurance Premium Payments) (1)
As used in this section:
(a) “Carrier” means an insurance company or health care service
contractor holding a valid certificate of authority from the Director of
the Department of Consumer and Business Services, an insurance company or
health care service contractor licensed or certified in another state
that is operating under the laws of that state, or two or more of those
companies or contractors acting together pursuant to a joint venture,
partnership or other joint means of operation.
(b) “Eligible person” means:
(A) A member of the Public Employees Retirement System who is
retired for service or disability and is receiving a retirement allowance
or benefit under the system, and a spouse or dependent of that member;
(B) A person who is a surviving spouse or dependent of a deceased
retired member of the system or the surviving spouse or dependent of a
member of the system who had not retired but who had reached earliest
retirement age at the time of death;
(C) A person who is receiving retirement pay or a pension
calculated under ORS 1.314 to 1.380 (1989 Edition), and a spouse or
dependent of that person; or
(D) A surviving spouse or dependent of a deceased retired member of
the system or of a person who was receiving retirement pay or a pension
calculated under ORS 1.314 to 1.380 (1989 Edition) if the surviving
spouse or dependent was covered at the time of the decedent’s death by a
health care insurance plan contracted for under this section.
(c) “Health care” means medical, surgical, hospital or any other
remedial care recognized by state law and related services and supplies
and includes comparable benefits for persons who rely on spiritual means
of healing.
(2) The Public Employees Retirement Board shall conduct a
continuing study and investigation of all matters connected with the
providing of health care insurance protection to eligible persons. The
board shall design benefits, devise specifications, invite proposals,
analyze carrier responses to advertisements for proposals and do acts
necessary to award contracts to provide health care insurance, including
insurance that provides coverage supplemental to federal Medicare
coverage, with emphasis on features based on health care cost containment
principles, for eligible persons. The board is not subject to the
provisions of ORS chapters 279A and 279B, except ORS 279B.235, in
awarding contracts under the provisions of this section. The board shall
establish procedures for inviting proposals and awarding contracts under
this section.
(3) The board shall enter into a contract with a carrier to provide
health care insurance for eligible persons for a one or two-year period.
The board may enter into more than one contract with one or more
carriers, contracting jointly or severally, if in the opinion of the
board it is necessary to do so to obtain maximum coverage at minimum cost
and consistent with the health care insurance needs of eligible persons.
The board periodically shall review a current contract or contracts and
make suitable study and investigation for the purpose of determining
whether a different contract or contracts can and should, in the best
interest of eligible persons, be entered into. If it would be
advantageous to eligible persons to do so, the board shall enter into a
different contract or contracts. Contracts shall be signed by the
chairperson on behalf of the board.
(4) Except as provided in ORS 238.415 and 238.420, the board may
deduct monthly from the retirement allowance or benefit, retirement pay
or pension payable to an eligible person who elects to participate in a
health care insurance plan the monthly cost of the coverage for the
person under a health care insurance contract entered into under this
section and the administrative costs incurred by the board under this
section, and shall pay those amounts into the Standard Retiree Health
Insurance Account established under subsection (7) of this section. The
board by rule may establish other procedures for collecting the monthly
cost of the coverage and the administrative costs incurred by the board
under this section if the board does not deduct those costs from the
retirement allowance or benefit, retirement pay or pension payable to an
eligible person.
(5) Subject to applicable provisions of ORS chapter 183, the board
may make rules not inconsistent with this section to determine the terms
and conditions of eligible person participation and coverage and
otherwise to implement and carry out the purposes and provisions of this
section and ORS 238.420.
(6) The board may retain consultants, brokers or other advisory
personnel, organizations specializing in health care cost containment or
other administrative services when it determines the necessity and,
subject to the State Personnel Relations Law, shall employ such personnel
as are required to assist in performing the functions of the board under
this section.
(7) Pursuant to section 401(h) of the Internal Revenue Code, the
Standard Retiree Health Insurance Account is established within the
Public Employees Retirement Fund, separate and distinct from the General
Fund. All payments made by eligible persons for health insurance coverage
provided under this section shall be held in the account. Interest earned
by the account shall be credited to the account. All moneys in the
account are continuously appropriated to the Public Employees Retirement
Board and may be used by the board only to pay the cost of health
insurance coverage under this section and to pay the administrative costs
incurred by the board under this section.
(8) The sum of all amounts paid by eligible persons into the
Standard Retiree Health Insurance Account, by participating public
employers into the Retiree Health Insurance Premium Account under ORS
238.415, and by participating public employers into the Retirement Health
Insurance Account under ORS 238.420, may not exceed 25 percent of the
aggregate contributions made by participating public employers to the
Public Employees Retirement Fund on or after July 11, 1987, not including
contributions made by participating public employers to fund prior
service credits.
(9) Until all liabilities for health benefits under the system are
satisfied, contributions and earnings in the Standard Retiree Health
Insurance Account, the Retiree Health Insurance Premium Account under ORS
238.415 and the Retirement Health Insurance Account under ORS 238.420 may
not be diverted or otherwise put to any use other than providing health
benefits and payment of reasonable costs incurred in administering this
section and ORS 238.415 and 238.420. Upon satisfaction of all liabilities
for providing health benefits under this section, any amount remaining in
the Standard Retiree Health Insurance Account shall be returned to the
participating public employers who have made contributions to the
account. The distribution shall be made in such equitable manner as the
board determines appropriate. [Formerly 237.320; 1999 c.317 §16; 1999
c.407 §7; 2003 c.794 §219; 2005 c.808 §§4,5]Note: 238.410 was added to and made a part of ORS chapter 237 (1993
Edition) by legislative action but was not added to ORS chapter 238 or
any smaller series therein. See Preface to Oregon Revised Statutes for
further explanation. (1)
As used in this section:
(a) “Board” means the Public Employees Retirement Board.
(b) “Eligible retired state employee” means:
(A) A retired member of the Public Employees Retirement System who
was a state employee at the time of retirement, is retired for service or
disability, is receiving a retirement allowance or benefit under the
system, had eight years or more of qualifying service in the system at
the time of retirement or is receiving a disability retirement allowance
including a pension computed as if the member had eight years or more of
creditable service in the system at the time of retirement, and has
attained earliest service retirement age but is not eligible for federal
Medicare coverage; or
(B) A person who is a surviving spouse or dependent of a deceased
eligible retired state employee as provided in subparagraph (A) of this
paragraph at the time of death, who:
(i) Is receiving a retirement allowance or benefit under the
system; or
(ii) Was covered at the time of the eligible retired state
employee’s death by the retired employee’s health insurance contracted
for under ORS 238.410, and the employee retired on or after September 29,
1991.
(c) “Qualifying service” means creditable service in the system and
any periods of employment with an employer participating in the system
required of the employee before becoming a member of the system.
(d) “System” means the Public Employees Retirement System.
(2) Of the monthly cost of coverage for an eligible retired state
employee under a health care insurance contract entered into under ORS
238.410, an amount as determined under subsection (3) of this section
shall be paid from the Retiree Health Insurance Premium Account
established by subsection (4) of this section, and any monthly cost in
excess of the amount so determined shall be paid by the eligible retired
state employee in the manner provided in ORS 238.410 (4). Any amount paid
under this subsection shall be exempt from all state, county and
municipal taxes imposed on the eligible retired member.
(3) On or before January 1 of each year, the Public Employees
Retirement Board shall calculate the average difference between the
health insurance premiums paid by retired state employees under contracts
entered into by the board under ORS 238.410 and the health insurance
premiums paid by state employees who are not retired under contracts
entered into by the Public Employees’ Benefit Board. For the purposes of
subsection (2) of this section, an eligible retired state employee shall
be entitled to receive toward the monthly cost of coverage under a health
insurance contract entered into under ORS 238.410:
(a) For an eligible retired state employee with eight years or more
of qualifying service in the system, but less than 10 years of qualifying
service in the system, 50 percent of the amount calculated by the board
under this subsection.
(b) For an eligible retired state employee with 10 years or more of
qualifying service in the system, but less than 15 years of qualifying
service in the system, 60 percent of the amount calculated by the board
under this subsection.
(c) For an eligible retired state employee with 15 years or more of
qualifying service in the system, but less than 20 years of qualifying
service in the system, 70 percent of the amount calculated by the board
under this subsection.
(d) For an eligible retired state employee with 20 years or more of
qualifying service in the system, but less than 25 years of qualifying
service in the system, 80 percent of the amount calculated by the board
under this subsection.
(e) For an eligible retired state employee with 25 years or more of
qualifying service in the system, but less than 30 years of qualifying
service in the system, 90 percent of the amount calculated by the board
under this subsection.
(f) For an eligible retired state employee with 30 years or more of
qualifying service in the system, 100 percent of the amount calculated by
the board under this subsection.
(4) Pursuant to section 401(h) of the Internal Revenue Code, the
Retiree Health Insurance Premium Account is established within the Public
Employees Retirement Fund, separate and distinct from the General Fund.
Interest earned by the account shall be credited to the account. All
moneys in the account are continuously appropriated to the Public
Employees Retirement Board and may be used only to pay costs of health
care insurance contract coverage under subsection (2) of this section,
paying the administrative costs incurred by the board under this section
and investment of moneys in the account under any law of this state
specifically authorizing that investment.
(5) The Retiree Health Insurance Premium Account shall be funded by
employer contributions. The state shall transmit to the board those
amounts the board determines to be actuarially necessary to fund the
liabilities of the account. The level of employer contributions shall be
established by the board using the same actuarial assumptions it uses to
determine employer contribution rates to the Public Employees Retirement
Fund. The amounts shall be transmitted at the same time and in the same
manner as contributions for pension benefits are transmitted under ORS
238.225.
(6) The Public Employees Retirement Board shall, by rule, establish
a procedure for calculating the average difference between the health
insurance premiums paid by retired state employees under contracts
entered into by the board under ORS 238.410 and the health insurance
premiums paid by state employees who are not retired under contracts
entered into by the Public Employees’ Benefit Board.
(7) As provided in section 401(h)(5) of the Internal Revenue Code
of 1986, upon satisfaction of all liabilities for providing benefits
described in subsection (2) of this section, any amount remaining in the
Retiree Health Insurance Premium Account shall be returned to the state.
(8) No member of the system shall have an interest in the Retiree
Health Insurance Premium Account or in the benefits provided under this
section. [Formerly 237.247; 1997 c.222 §45; 1999 c.317 §17; 2001 c.945
§80; 2003 c.14 §113; 2005 c.808 §6]Note: 238.415 was added to and made a part of ORS chapter 237 (1993
Edition) by legislative action but was not added to ORS chapter 238 or
any smaller series therein. See Preface to Oregon Revised Statutes for
further explanation. (1)
As used in this section, “eligible retired member” means:
(a) A retired member of the Public Employees Retirement System who
is retired for service or disability, is receiving a retirement allowance
or benefit under the system, had eight years or more of qualifying
service in the system at the time of retirement or is receiving a
disability retirement allowance including a pension computed as if the
member had eight years or more of creditable service in the system at the
time of retirement, and is eligible for federal Medicare coverage; or
(b) A person who is a surviving spouse or dependent of a deceased
eligible retired member as provided in paragraph (a) of this subsection
at the time of death, who is eligible for federal Medicare coverage and
who:
(A) Is receiving a retirement allowance or benefit under the
system; or
(B) Was covered at the time of the retired member’s death by the
retired member’s health insurance contracted for under ORS 238.410, and
the member retired before May 1, 1991.
(2) For purposes of subsection (1)(a) of this section, “qualifying
service” means creditable service in the system and any periods of
employment with an employer participating in the system required of the
employee before becoming a member of the system.
(3) Of the monthly cost of coverage for an eligible retired member
under a health care insurance contract that provides coverage
supplemental to federal Medicare coverage entered into under ORS 238.410,
an amount equal to $60 or the total monthly cost of that coverage,
whichever is less, shall be paid from the Retirement Health Insurance
Account established by subsection (4) of this section, and any monthly
cost in excess of $60 shall be paid by the eligible retired member in the
manner provided in ORS 238.410 (4). Any amount paid under this subsection
shall be exempt from all state, county and municipal taxes imposed on the
eligible retired member.
(4) Pursuant to section 401(h) of the Internal Revenue Code, the
Retirement Health Insurance Account is established within the Public
Employees Retirement Fund, separate and distinct from the General Fund.
Interest earned by the account shall be credited to the account. All
moneys in the account are continuously appropriated to the Public
Employees Retirement Board and may be used only to pay costs of health
care insurance contract coverage under subsection (3) of this section,
paying the administrative costs incurred by the board under this section
and investment of moneys in the account under any law of this state
specifically authorizing that investment.
(5) The Retirement Health Insurance Account shall be funded by
employer contributions. Each public employer that is a member of the
system shall transmit to the board such amounts as the board determines
to be actuarially necessary to fund the liabilities of the account. The
level of employer contributions shall be established by the board using
the same actuarial assumptions it uses to determine employer contribution
rates to the Public Employees Retirement Fund. The amounts shall be
transmitted at the same time and in the same manner as contributions for
pension benefits are transmitted under ORS 238.225.
(6) As provided in section 401(h)(5) of the Internal Revenue Code
of 1986, upon satisfaction of all liabilities for providing benefits
described in subsection (1) of this section, any amount remaining in the
Retirement Health Insurance Account shall be returned to the employers
participating in the retirement system on an equitable basis as
determined by the board.
(7) No member of the system shall have an interest in the
Retirement Health Insurance Account. [Formerly 237.248; 1999 c.317 §18;
2001 c.945 §88; 2005 c.808 §7](Benefits Payable to Vested Inactive Member) In the event
that an employee who is a vested member of the system and who has not
attained earliest service retirement age is separated, for any reason
other than death or disability, from all service entitling the employee
to membership in the system, the member account, if any, of the member
shall remain to the member’s credit in the fund unless the member elects
to withdraw it and there shall be paid such death benefits as this
chapter provides; or a disability retirement allowance or, after
attaining earliest service retirement age, a service retirement
allowance, either of which shall consist of the allowance provided in ORS
238.300, but actuarially reduced based on the member’s then attained age.
[Formerly 237.111 (1); 2001 c.945 §58; 2003 c.67 §12; 2003 c.625 §15](Benefits Payable to Persons Establishing Membership on or After January
1, 1996)(1) Notwithstanding any other
provisions of this chapter, a person who establishes membership in the
Public Employees Retirement System on or after January 1, 1996, is
entitled to receive only the benefits provided under ORS 238.435 for
periods of service with participating public employers after January 1,
1996, and has no right or claim to any other benefit provided under this
chapter. A person who establishes membership in the Public Employees
Retirement System before January 1, 1996, is entitled to receive those
benefits otherwise provided by this chapter, and is not subject to the
provisions of ORS 238.435.
(2) A person establishes membership in the system before January 1,
1996, for the purposes of this section if:
(a) The person is a member of the system, or a judge member of the
system, on January 1, 1996;
(b) The person was a member of the system before January 1, 1996,
ceased to be a member of the system under the provisions of ORS 238.095,
238.265 or 238.545 before January 1, 1996, but restored part or all of
the forfeited creditable service from before January 1, 1996, under the
provisions of ORS 238.105 or 238.115 after January 1, 1996;
(c) The person performed any period of service for a participating
public employer before January 1, 1996, that is credited to the six-month
period of employment required of an employee under ORS 238.015 before an
employee may become a member of the system; or
(d) The person becomes a member of the system under the terms of an
integration contract pursuant to the terms of ORS 238.680, and under the
terms of the contract the person receives retirement credit in the system
for periods of employment performed for the public employer before
January 1, 1996.
(3) The provisions of ORS 238.435 do not apply to judge members of
the system. [1995 c.654 §2; 1997 c.175 §12; 2005 c.22 §176](1) Notwithstanding the definition of “salary”
or “other advantages” provided by ORS 238.005, for the purpose of
calculating the retirement allowance of a person who establishes
membership in the system on or after January 1, 1996, as described in ORS
238.430, the Public Employees Retirement Board shall not include any lump
sum payment for accrued vacation pay made to the member during the last
36 calendar months of membership before the effective date of retirement
of the member, or during any period of time taken into account for
purposes of determining the three years in which the member was paid the
highest salary for the purposes of determining the member’s final average
salary.
(2) Notwithstanding the definition of “final average salary”
provided by ORS 238.005, for the purpose of calculating the retirement
allowance of a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, and who is not
employed by a local government as defined in ORS 174.116, the term “final
average salary” means whichever of the following is greater:
(a) The average salary per calendar year paid to a public employee
who is an active member of the system in three of the calendar years of
membership before the effective date of retirement of the employee, in
which three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total salary
may include calendar years in which the employee was employed for less
than a full calendar year. If the number of calendar years of active
membership before the effective date of retirement of the employee is
three or less, the final average salary for the employee is the average
salary per calendar year paid to the public employee in all of those
years, without regard to whether the employee was employed for full
calendar years.
(b) One-third of the total salary paid to a public employee who is
an active member of the system in the last 36 calendar months of
membership before the effective date of retirement of the employee.
(3) For the purposes of calculating the final average salary of a
member under subsection (2) of this section, the Public Employees
Retirement Board shall:
(a) Include any salary paid in or for the calendar month of
separation from employment;
(b) Exclude any salary for any pay period before the first full pay
period that is included in the three calendar years of membership under
subsection (2)(a) of this section if the three calendar years were
consecutive; and
(c) Exclude any salary for any pay period before the first full pay
period that is included in the last 36 calendar months of membership
under subsection (2)(b) of this section.
(4) Notwithstanding the definition of “final average salary”
provided by ORS 238.005, for the purpose of calculating the retirement
allowance of a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, and who is employed
by a local government as defined in ORS 174.116, the term “final average
salary” means whichever of the following is greater:
(a) The average salary per calendar year earned by a public
employee who is an active member of the system in three of the calendar
years of membership before the effective date of retirement of the
employee, in which three years the employee earned the highest salary.
The three calendar years in which the employee earned the largest total
salary may include calendar years in which the employee was employed for
less than a full calendar year. If the number of calendar years of active
membership before the effective date of retirement of the employee is
three or less, the final average salary for the employee is the average
salary per calendar year earned by the public employee in all of those
years, without regard to whether the employee was employed for full
calendar years.
(b) One-third of the total salary earned by a public employee who
is an active member of the system in the last 36 calendar months of
membership before the effective date of retirement of the employee.
(5) The normal retirement age is 60 years of age for a member who
establishes membership in the system on or after January 1, 1996, as
described in ORS 238.430, and who retires as other than a police officer
or firefighter.
(6) ORS 238.255 does not apply to any person who establishes
membership in the Public Employees Retirement System on or after January
1, 1996, as described in ORS 238.430.
(7) Notwithstanding any other provision of this chapter, for the
purpose of calculating a monthly disability retirement allowance payable
to a member who establishes membership in the system on or after January
1, 1996, as described in ORS 238.430, the sum of the monthly amount of
the disability retirement allowance and of any monthly payment on account
of temporary total disability or permanent total disability under the
provisions of ORS chapter 656 may not exceed the member’s monthly salary,
determined as of the date the member becomes disabled. The board shall
reduce any disability retirement allowance payable under this chapter in
the amount determined to be necessary by the board to meet the limitation
imposed by this subsection.
(8) Except as provided in this section, all provisions of this
chapter are applicable to persons who establish membership in the system
on or after January 1, 1996, as described in ORS 238.430. [1995 c.654 §3;
1999 c.407 §4; 2005 c.808 §33](Optional Purchase of Benefit Units by Police and Firefighters)(1) A police officer or firefighter who is a member of the
system may elect to make additional contributions to the fund to purchase
increased benefits between the date of retirement and age 65. The rate of
additional contribution shall be determined by the actuary, dependent
upon the age of the police officer or firefighter at the date of
election, so as to provide monthly payments on the basis of $10 per unit
of benefits purchased. No police officer or firefighter may elect to
purchase more than eight units. For each $10 unit purchased by the police
officer or firefighter, the employer shall purchase an equal $10 unit. A
police officer or firefighter who is retained until age 65 shall receive
a lump sum refund of the additional contributions made toward units
purchased, plus interest thereon, but shall receive no benefits from the
additional contributions by the employer for such units. If a police
officer or firefighter retires after age 60 but prior to age 65, the
units purchased by additional contributions shall provide increased
monthly benefits based on life expectancy, but the matching units
purchased by the employer shall not, regardless of age, exceed $10 per
month per unit purchased by the police officer or firefighter. If a
police officer or firefighter is absent from the employment of a
participating employer for any reason and because of such absence is
unable to make monthly additional contributions, the benefits provided
under this section shall be actuarially reduced upon the retirement of
the police officer or firefighter.
(2) Notwithstanding subsection (1) of this section, a police
officer or firefighter who retires prior to age 60 may apply for and
receive an actuarially reduced unit income commencing at any date between
the date of early retirement and age 60, with monthly benefits payable
for at least 60 months or any other monthly formula in excess of 60
months but always terminating by age 65. Such a police officer or
firefighter may elect to pay in a lump sum within the 60 days immediately
preceding early retirement the contribution that the police officer or
firefighter would have made to the unit income account had the police
officer or firefighter worked to age 60.
(3) Any police officer or firefighter who elects to make additional
contributions to purchase increased benefits may elect at any time before
termination to cancel such election. Having once canceled such election,
no police officer or firefighter shall be again permitted to make
additional contributions.
(4) The additional contributions made by the police officer or
firefighter under this section shall be refunded to the police officer or
firefighter only when:
(a) The member is separated from all service with participating
public employers; and
(b) The member is separated from all service with employers who are
treated as part of a participating public employer’s controlled group
under the federal laws and rules governing the status of the system and
the fund as a qualified governmental retirement plan and trust.
(5) A police officer or firefighter who has elected to make
additional contributions under this section and who transfers to
employment in which not entitled to make such additional contributions
may retain the account established under subsection (1) of this section
for five years immediately following such transfer by not requesting a
withdrawal. If, at the end of the five-year period, the police officer or
firefighter has not reached age 50, or has not returned to employment in
which entitled to make additional contributions under this section, the
election shall be canceled and the amount of the account established
under subsection (1) of this section shall be refunded to the police
officer or firefighter.
(6) Any election to make additional contributions under this
section and any cancellation of such election shall be submitted to the
employer and to the board in writing. [Formerly 237.071 (4); 1999 c.317
§5a](Prior Service Credit) (1) Subject to the rules of the
Public Employees Retirement Board, upon commencing participation in the
system a public employer that is not a school district may elect to
provide prior service credit for employees of the employer who are
employees of the employer on the date on which the employer commences
participation. Prior service credit may be provided only for employees
who are members of the system. Prior service credit under this section
may be provided for continuous service by the employee to the public
employer before the public employer commenced participation in the system
and for any accumulated seasonal employment by an employee before the
public employer commenced participation in the system. The public
employer and the board shall enter into an agreement that will specify
the number of years of prior service credit that employees of the
employer will receive. Prior service credit under this section shall be
equal to $4 for each year of prior service or major fraction of a year.
(2) If a public employer elects to provide prior service credit
under this section, the board shall issue a certificate to each employee
entitled to receive prior service credit. The certificate shall show the
amount of prior service credit that the employee is entitled to receive
under the agreement between the board and the public employer. The
certificate shall be final unless the board, upon the motion of the
member or upon the board’s own motion, modifies the certificate for cause.
(3) Prior service credit under this section shall be funded by
employer contributions in the manner provided by ORS 238.225.
(4) A public employer who agrees to provide prior service credit
under this section may elect to treat any year, or part of a year, for
which prior service credit is granted as a year in which the employee is
an active member for the purpose of becoming vested. An election under
this subsection must be made at the time the public employer enters into
the agreement providing for prior service credit. [2001 c.945 §75; 2001
c.945 §75a; 2003 c.67 §32](Miscellaneous)(1) Except as provided in this section, the right of a
person to a pension, an annuity or a retirement allowance, to the return
of contribution, the pension, annuity or retirement allowance itself, any
optional benefit or death benefit, or any other right accrued or accruing
to any person under the provisions of this chapter or ORS chapter 238A,
and the money in the various funds created by ORS 238.660 and 238.670,
shall be exempt from garnishment and all state, county and municipal
taxes heretofore or hereafter imposed, except as provided under ORS
chapter 118, shall not be subject to execution, garnishment, attachment
or any other process or to the operation of any bankruptcy or insolvency
law heretofore or hereafter existing or enacted, and shall be
unassignable.
(2) Subsection (1) of this section does not apply to state personal
income taxation of amounts paid under this chapter and ORS chapter 238A.
(3) Unless otherwise ordered by a court under ORS 25.387, the
exemption from execution or other process granted under this section
applies to 75 percent of amounts paid under this chapter and ORS chapter
238A if the execution or other process is issued for a support obligation
or an order or notice entered or issued under ORS chapter 25, 107, 108,
109, 110, 416, 419B or 419C. [Formerly 237.201; 1999 c.80 §86; 1999 c.745
§3; 2003 c.733 §52](1) Upon receiving an application for a retirement allowance or
benefit from a member of the system and obtaining information necessary
for computation of the retirement allowance or benefit to which the
member is entitled upon retirement, the system shall provide to the
member a written computation of the retirement allowance or benefit to
which the member is entitled upon retirement and summary of the
information used in making that computation.
(2) A member of the system may contest the accuracy of the
information used by the system in making the computation of the
retirement allowance or benefit to which the member is entitled upon
retirement only by filing a written notice of contest with the system not
later than whichever of the following days occurs last:
(a) The 240th day after the date on which the computation and
information summary is provided to the member pursuant to subsection (1)
of this section.
(b) The 240th day after the date on which the retirement allowance
or benefit to which the member is entitled first becomes payable.
(3) The filing of a notice of contest under subsection (2) of this
section extends the time allowed for election of an optional form of
retirement allowance or benefit until the 30th day after the conclusion
of the contest proceeding and any judicial review thereof if the
proceeding or review results in a change in the computation of the
retirement allowance or benefit.
(4) Upon receiving a notice of contest under subsection (2) of this
section, the system shall determine the accuracy of the contested
information and make a written decision either affirming the accuracy of
the information and computation based thereon or changing the computation
using corrected information. The system shall provide to the member a
copy of the decision and a written explanation of any applicable statutes
and rules. The member is entitled to judicial review of the decision as
provided in ORS 183.484 and rules of the board consistent with applicable
statutes.
(5) This section does not affect any authority of the system, on
its own initiative, to correct an incorrect computation of any retirement
allowance or benefit. [Formerly 237.210] (1)(a) Whenever a member of the
system is retired for service and is entitled to receive a retirement
allowance or benefit that is payable monthly, and the Public Employees
Retirement Board is unable to calculate the amount of the monthly payment
in time to allow mailing of the monthly payment to the member within 62
days of the date the first monthly payment is due, the board shall
calculate an estimated amount for the monthly payment based on the
information then available to the board and shall mail that payment to
the member within 62 days of the date the first monthly payment is due.
(b) Whenever a member of the system is retired for disability and
is entitled to receive a retirement allowance or benefit that is payable
monthly, and the board is unable to calculate the amount of the monthly
payment in time to allow mailing of the monthly payment to the member
within 10 days of either the date the board approves the member’s
application or the date that the first monthly payment is due, whichever
is later, the board shall calculate an estimated amount for the monthly
payment based on the information then available to the board and shall
mail that payment to the member within 10 days of the date the board
approves the member’s disability benefit, the date the board receives the
member’s election of one of the optional forms of disability retirement
allowance or the date the first monthly payment is due, whichever is
later.
(2) The board shall continue to mail estimated payments under
subsection (1) of this section until such time as the correct amount of
the monthly payment is determined.
(3) The board shall notify the member receiving an estimated
payment under subsection (1) of this section that the payment is an
estimated payment only. The board shall further notify the member of the
provisions of subsection (4) of this section.
(4) If the board determines that any estimated payment made to the
member under subsection (1) of this section resulted in payment to the
member of an amount other than the correct amount due the member as a
retirement allowance or benefit, the board shall immediately so notify
the member. Thereafter, the board may increase or decrease the monthly
payment to the member until such time as the total difference between the
amount or amounts the member received and the amount or amounts the
member should have received is accounted for. Thereafter the member shall
receive the monthly payment as finally calculated by the board.
(5) If the estimated payment made to the member under subsection
(1) of this section results in an underpayment to the member of $10 or
more a month, the board shall pay interest on the balance of such
underpayment at a rate established by rule of the board until such time
as the underpayment is paid to the member pursuant to subsection (4) of
this section.
(6) No member shall have any right to any allowance or other
benefit other than that provided for in this chapter and ORS chapter 238A
based on the board’s estimate under this section or based on any other
estimate made by the board for any other purpose under this chapter and
ORS chapter 238A. [Formerly 237.159; 2003 c.733 §53; 2005 c.302 §1]Note: Section 2, chapter 302, Oregon Laws 2005, provides:
Sec. 2. (1) Except as provided in subsection (2) of this section,
the amendments to ORS 238.455 by section 1 of this 2005 Act become
operative on January 1, 2006.
(2) The amendments to ORS 238.455 by section 1 of this 2005 Act
become operative on the effective date of this 2005 Act [June 28, 2005]
for the purpose of adoption by the Public Employees Retirement Board of a
rule establishing an interest rate as provided in ORS 238.455 (5).
(3) The amendments to ORS 238.455 by section 1 of this 2005 Act
apply only to members of the Public Employees Retirement System who have
effective dates of retirement that are on or after the operative date
specified in subsection (1) of this section. [2005 c.302 §2] (1) A benefit that is owed to a member
or beneficiary of a member under the Public Employees Retirement System
shall be forfeited at the end of the system’s plan year in which the
benefit becomes due if the Public Employees Retirement Board is unable to
locate the member or beneficiary. If the member, beneficiary or any other
person thereafter establishes a right to the forfeited benefit, the board
shall reinstate the benefit. If the benefit is a periodic payment, the
board shall make a retroactive payment to the member, beneficiary or
other person in a lump sum for all amounts that would have been paid
before reinstatement of the benefit. No interest shall be paid on the
benefit for the period commencing when the benefit became due and the
date of the retroactive payment.
(2) Death benefits and other amounts payable by reason of the death
of a member do not escheat to the state when the member dies without
heirs, devisees or beneficiaries designated under ORS 238.390. If a
beneficiary has not been designated under ORS 238.390, and a personal
representative or a person filing an affidavit under ORS 114.505 to
114.560 fails to make claim for the benefits within one year after the
member dies, the benefits shall be forfeited to the Public Employees
Retirement Fund in the manner provided by subsection (1) of this section
and are subject to reinstatement only upon subsequent appointment of a
personal representative or the filing of an affidavit in the manner
provided by ORS 114.505 to 114.560. If benefits are paid to a personal
representative or a person filing an affidavit under ORS 114.505 to
114.560, the personal representative or person filing the affidavit shall
return to the board the amount that would otherwise escheat to the state
after payment of administrative expenses and claims against the estate.
Any amounts returned to the board under this subsection shall be
forfeited to the fund. [1999 c.317 §20; 2003 c.625 §2] (1) If receipt in full by a
person of a retirement allowance or other benefit under this chapter or
ORS chapter 238A would prevent such person from receiving in full any
other governmental pension to which the person is entitled, such person
may waive for a calendar year sufficient monthly payments, or portions
thereof, of retirement allowance or other benefit under this chapter or
ORS chapter 238A to permit the person to receive in full the other
governmental pension. The waiver shall be made in writing and filed with
the Public Employees Retirement Board not less than 15 days before the
first day of the month to which the waiver applies.
(2) If for any month the waiver does not apply to the full
retirement allowance due under this chapter, the waiver applies first to
all or the necessary portion of prior service pension, then to all or to
the necessary portion of current service pension, and then to the
necessary portion of annuity.
(3) The waiver may be revoked at any time, but no retirement
allowance or other benefit waived for the period of time in which the
waiver is in effect shall be paid. The revocation shall be made in
writing and filed with the board. If a person dies during the period of
time in which the waiver is in effect, the waiver is considered revoked
on the date of such death. [Formerly 237.157; 2003 c.733 §54; 2005 c.22
§177](1) A member of the Public Employees Retirement
System who is married on the effective date of the member’s retirement
shall receive a service retirement allowance in the form provided for in
Option 3 under ORS 238.305 (1) or a disability retirement allowance in
the form provided for in Option 3 under ORS 238.325 (1) unless the member
provides proof of spousal consent to receiving an allowance in the form
provided by ORS 238.300 or 238.320, or in one of the optional forms
provided for in ORS 238.305 and 238.325 other than Option 3.
(2) Except as provided in subsection (3) of this section, a member
of the system who is married on the effective date of the member’s
retirement may not change the form in which a retirement allowance is
paid after an election has been made as to the form of the retirement
allowance unless the member provides proof of spousal consent.
(3) A member of the system who is married on the effective date of
the member’s retirement is not required to provide spousal consent to a
change in the form in which a retirement allowance is paid if the spouse
of the member dies after the effective date of the member’s retirement or
disability and the change in the form of the allowance is made within the
time periods provided by ORS 238.305 and 238.325. A member seeking to
change the form of a retirement allowance without spousal consent under
the provisions of this subsection must provide a notarized statement to
the Public Employees Retirement Board that certifies to the board that
the spouse of the member is deceased.
(4) Any member of the system who is not married on the effective
date of the member’s retirement must provide a notarized statement to the
Public Employees Retirement Board that certifies to the board that the
member is not married. No retirement allowance may be paid to a member of
the system who is not married until the statement required by this
subsection is provided to the board.
(5) A member of the system who is married on the effective date of
the member’s retirement must provide proof of spousal consent for the
purposes of this section by submitting a statement to the board that:
(a) Contains the notarized signature of the member’s spouse;
(b) Indicates the form in which the retirement allowance is to be
paid; and
(c) Contains a statement that the member’s spouse consents to the
payment of the retirement allowance in the specified form.
(6) If a member of the system who is married on the effective date
of the member’s retirement fails to provide proof of spousal consent as
required by this section, the board shall calculate and pay to the member
a retirement allowance in the form provided for in Option 3 under ORS
238.305 (1) if the retirement is for service, or a retirement allowance
in the form provided for in Option 3 under ORS 238.325 (1) if the
retirement is for disability. The allowance will be calculated based on
the ages of the member and the spouse, and the spouse will be designated
as the beneficiary for any survivor benefits that may thereafter become
payable.
(7) Proof of spousal consent under this section is not required
for, and cannot alter, the designation of any form of a retirement
allowance that is required under the terms of any judgment of annulment
or dissolution of marriage or of separation, or the terms of any court
order or court-approved property settlement agreement incident to any
judgment of annulment or dissolution of marriage or of separation, that
has been received by the board in compliance with the requirements
prescribed by ORS 238.465. [1997 c.476 §2; 1999 c.407 §5; 2003 c.576
§404; 2005 c.22 §178]
(1) Notwithstanding ORS 238.445 or any other provision of law, payments
under this chapter or ORS chapter 238A of any pension, annuity,
retirement allowance, disability benefit, death benefit, refund benefit
or other benefit that would otherwise be made to a person entitled
thereto under this chapter or ORS chapter 238A shall be paid, in whole or
in part, by the Public Employees Retirement Board to an alternate payee
if and to the extent expressly provided for in the terms of any judgment
of annulment or dissolution of marriage or of separation, or the terms of
any court order or court-approved property settlement agreement incident
to any judgment of annulment or dissolution of marriage or of separation.
Notwithstanding any other provisions of this section, the total value of
benefits payable to a member and to an alternate payee under this section
may not be greater than the value of the benefits the member would
otherwise be eligible to receive. Any payment under this subsection to an
alternate payee bars recovery by any other person.
(2) A judgment, order or settlement providing for payment to an
alternate payee under subsection (1) of this section may also provide:
(a) That payments to the alternate payee may commence, at the
election of the alternate payee, at any time after the earlier of:
(A) The earliest date the member would be eligible to receive
retirement benefits if the member separates from service; or
(B) The date the member actually separates from service due to
death, disability, retirement or termination of employment.
(b) That the alternate payee may elect to receive payment in any
form of pension, annuity, retirement allowance, disability benefit, death
benefit, refund benefit or other benefit, except a benefit in the form of
a joint and survivor annuity, that would be available to the member under
this chapter or ORS chapter 238A, or that would be available to the
member if the member retired or separated from service at the time of
election by the alternate payee, without regard to the form of benefit
elected by the member.
(c) That the alternate payee’s life is the measuring life for the
purpose of measuring payments to the alternate payee under the form of
benefit selected by the alternate payee and for the purpose of
determining necessary employer reserves.
(d) Except as provided in ORS 238.305 (10) and 238.325 (7), that
any person designated by the member as a beneficiary under ORS 238.300,
238.305, 238.325, 238A.190 or 238A.400 be changed, even though the member
has retired and has begun receiving a retirement allowance or pension. If
a change of beneficiary is ordered under this paragraph, the board shall
adjust the anticipated benefits that would be payable to the member and
the beneficiary to ensure that the cost to the system of providing
benefits to the member and the new beneficiary does not exceed the cost
that the system would have incurred to provide benefits to the member and
the original beneficiary. The judgment, order or settlement may not
provide for any change to the option selected by the retired member under
ORS 238.300, 238.305, 238.320, 238.325, 238A.190 or 238A.400 as to the
form of the retirement benefit.
(3) The board shall adopt rules that provide for:
(a) The creation of a separate account in the name of the alternate
payee reflecting the judgment’s, order’s or agreement’s distribution of
the member’s benefits under this chapter or ORS chapter 238A;
(b) The establishing of criteria to determine whether domestic
relations judgments, orders and agreements comply with this section; and
(c) The definitions and procedures for the administration of this
section.
(4) An alternate payee may designate a beneficiary for the purposes
of death benefits payable under ORS 238.390 and 238.395. Subject to ORS
238A.410 (2), an alternate payee may designate a beneficiary for the
purposes of death benefits payable under ORS 238A.410. If the alternate
payee fails to designate a beneficiary for the purposes of death benefits
payable under ORS 238.390 and 238.395, the benefits shall be paid as
provided by ORS 238.390 (2). If the alternate payee fails to designate a
beneficiary for the purposes of death benefits payable under ORS
238A.410, the benefits shall be paid as provided by ORS 238A.410 (3). If
a judgment, order or agreement awards an interest to an alternate payee,
and if the alternate payee predeceases the member before the alternate
payee has commenced receiving benefits, the alternate payee shall be
considered a member of the system who died before retiring for the
purposes of the death benefits provided in ORS 238.390, 238.395, 238A.230
and 238A.410, but for purposes of the death benefits provided in ORS
238.395, the alternate payee shall be considered a member of the system
who died before retiring only if the member would have been eligible for
death benefits under ORS 238.395 had the member died at the same time as
the alternate payee. Payment of the death benefits to the beneficiaries,
estate or other persons entitled to receive the benefits under ORS
238.390, 238.395, 238A.230 and 238A.410, shall constitute payment in full
of the alternate payee’s interest under the judgment, order or agreement.
(5) Any increase in the retirement allowance provided to the member
shall increase the amounts paid to the spouse or former spouse of the
member in the same proportion, except that an alternate payee is not
entitled to receive cost-of-living adjustments under ORS 238.360 or any
other retirement allowance increase until benefits are first paid from
the system on behalf of the member.
(6) An alternate payee under this section is not eligible to
receive the benefits provided under ORS 238.410, 238.415, 238.420 and
238.440 by reason of the provisions of this section.
(7) An alternate payee who elects to begin receiving payments under
subsection (1) of this section before the member’s effective date of
retirement is not eligible to receive any additional payment by reason of
credit in the system acquired by the member after the alternate payee
begins to receive payments.
(8) Subsection (1) of this section applies only to payments made by
the board after the date of receipt by the board of written notice of the
judgment, order or agreement and such additional information and
documentation as the board may prescribe.
(9) Whenever the board is required to make payment to an alternate
payee under the provisions of this section, the board shall charge and
collect out of the benefits payable to the member and the alternate payee
actual and reasonable administrative expenses and related costs incurred
by the board in obtaining data and making calculations that are necessary
by reason of the provisions of this section. The board may not charge
more than $300 for total administrative expenses and related costs
incurred in obtaining data or making calculations that are necessary by
reason of the provisions of this section. The board shall allocate
expenses and costs charged under the provisions of this subsection
between the member and the alternate payee based on the fraction of the
benefit received by the member or alternate payee.
(10) Unless otherwise provided by the judgment, order or agreement,
a member has no interest in the benefit payable to an alternate payee
under this section. Upon the death of an alternate payee, the board shall
make such payment to the beneficiary designated by the alternate payee as
may be required under the form of benefit elected by the alternate payee.
If a death benefit is payable under ORS 238.390 or 238.395 by reason of
the death of an alternate payee, payment of the death benefit shall be
made to the beneficiary designated by the alternate payee under ORS
238.390 (1), or as otherwise provided by ORS 238.390 and 238.395.
(11) As used in this section, “court” means any court of
appropriate jurisdiction of this or any other state or of the District of
Columbia. [Formerly 237.205; 2001 c.945 §§82,89; 2003 c.576 §405; 2003
c.733 §55; 2005 c.808 §32]Note: Section 83, chapter 945, Oregon Laws 2001, provides:
Sec. 83. The amendments to ORS 238.465 by section 82 of this 2001
Act apply only to decrees, orders or settlements entered on or after the
effective date of this 2001 Act [August 9, 2001]. Any decree, order or
settlement entered on or after the effective date of this 2001 Act may
provide for a change of beneficiary under ORS 238.465, as amended by
section 82 of this 2001 Act, without regard to whether the member of the
Public Employees Retirement System retired before, on or after the
effective date of this 2001 Act. [2001 c.945 §83] Interest is not payable on
any payment from the Public Employees Retirement Fund unless specifically
provided for in this chapter. [Formerly 237.202]No transfer after July 1, 1946, by a member of the system from
the service of one employer participating in the system to the service of
another such employer shall impair any rights or deprive the member of
any credits accruing to the member as a result of membership in the
system after July 1, 1946, and prior to the transfer. [Formerly 237.101]All contributions made and all service credit earned
under the Public Employes’ Retirement Act of 1953 prior to January 1,
1956, on the basis of a fiscal year shall not be affected by the change
from fiscal year basis to calendar year basis on January 1, 1956, under
the 1955 amendments of the Public Employes’ Retirement Act of 1953, and
such contributions and credit are recognized as if no such change had
been made. [Formerly 237.107]PUBLIC EMPLOYEE BENEFIT EQUALIZATION FUND (1) Pursuant to section 415(m) of the
Internal Revenue Code, there is established a Public Employee Benefit
Equalization Fund, separate and distinct from the General Fund and from
the Public Employees Retirement Fund. The Public Employee Benefit
Equalization Fund is declared to be a trust fund. Interest earned on the
fund, if any, shall inure to the benefit of the fund. The Public
Employees Retirement Board shall administer the fund and shall act as
trustee for the fund.
(2) The assets of the Public Employee Benefit Equalization Fund
that are attributable to the contributions of a participating public
employer pursuant to ORS 238.488 remain available to the general
creditors of the employer in the event of the employer’s insolvency until
those assets are distributed to members of the Public Employees
Retirement System, distributed to the beneficiaries of those members or
used to pay the administrative expenses of the fund. Before distribution,
members of the Public Employees Retirement System and beneficiaries of
those members have no right to or interest in any asset of the fund.
(3) All moneys paid into the fund shall be deposited with the State
Treasurer, who is custodian of the fund. The board may draw warrants and
issue checks on the fund in the same manner that it draws warrants and
issues checks on the Public Employees Retirement Fund.
(4) Any warrant, check or order issued by the board for payment
from the fund that is canceled, declared void, abandoned or otherwise
made unpayable pursuant to law because it is outstanding and unpaid for a
period of more than two years, may be reissued by the board without bond
if the payee is located after such warrant, check or order is canceled,
declared void, abandoned or otherwise made unpayable pursuant to law.
[1997 c.201 §2; 2005 c.808 §8] (1) A member
of the Public Employees Retirement System, or the beneficiary of that
member, who by reason of the benefit limitations imposed by Internal
Revenue Code section 415 receives a retirement allowance under the system
that is less than the allowance the member or beneficiary would otherwise
have received under ORS chapter 238, excluding any payments the member or
beneficiary may receive under this section and ORS 238.485 and 238.490,
shall receive from the Public Employee Benefit Equalization Fund a
monthly amount equal to the difference. Any overpayment or improperly
made payment from the Public Employee Benefit Equalization Fund may be
recovered from the member or beneficiary, or from payments to the member
or beneficiary from the Public Employee Benefit Equalization Fund, in the
same manner as provided in ORS 238.715 for recovery of overpayments and
improperly made payments from the Public Employees Retirement Fund.
Notwithstanding ORS 238.445, an overpayment or improperly made payment
from the Public Employee Benefit Equalization Fund may be recovered on
behalf of the Public Employee Benefit Equalization Fund from payments to
the member or beneficiary from the Public Employees Retirement Fund in
the same manner as provided in ORS 238.715 for recovery of overpayments
and improperly made payments from the Public Employees Retirement Fund if:
(a) No payments are being made to the member or beneficiary from
the Public Employee Benefit Equalization Fund at the time recovery of an
overpayment or improperly made payment is sought; or
(b) The Public Employees Retirement Board in its discretion
determines that the payments being made from the Public Employee Benefit
Equalization Fund are inadequate to ensure full recovery of the
overpayment or improperly made payment.
(2) A public employer that participates or has participated in the
Public Employees Retirement System and that employs or has employed a
member of the system who receives a benefit under subsection (1) of this
section, or whose beneficiary receives a benefit under subsection (1) of
this section, must contribute to the Public Employees Retirement Board a
sum equal to all amounts paid to the member or beneficiary that is
attributable to the member’s employment by the public employer, plus any
amount assessed by the board to pay administrative costs under ORS
238.490 (3). If the member has retirement credit attributable to
employment with more than one public employer, the board shall allocate
the costs of the benefit under this section among the public employers
involved, based on the member’s length of service with each employer.
(3) A public employer that makes a contribution to the Public
Employee Benefit Equalization Fund under subsection (2) of this section
shall receive a credit equal to the amount of the contribution against
any obligation of the public employer to make contributions to the Public
Employees Retirement Fund under ORS 238.225. The credit shall be equal to
the amount paid by the employer to the board under subsection (2) of this
section less any sums paid to the board by the public employer for
administrative costs under ORS 238.490 (3). The board shall apply the
credit to reduce the public employer’s payment obligation under ORS
238.225 for the month in which the payment is made under this section.
The credit does not reduce any obligation below zero and any credit not
used may be carried over as a credit against future obligations under ORS
238.225.
(4) All amounts collected from public employers under this section
shall be deposited in the Public Employee Benefit Equalization Fund
established by ORS 238.485.
(5) The Public Employees Retirement Board shall pay the benefits
specified in subsection (1) of this section only to the extent that the
benefits have been funded by contributions made by the member’s employer
under subsection (2) of this section before the date on which the
benefits are to be paid. The Public Employees Retirement Board may
enforce the provisions of subsection (2) of this section in the manner
provided in ORS 238.705 and 238.710 for the enforcement of employer
contributions to the Public Employees Retirement Fund.
(6) The board shall notify all participating employers of the
records and information needed for the implementation and administration
of this section. Each participating employer shall maintain records for
all employees who are members of the system, and all former employees who
have been members of the system, and shall supply the board with all
information required by the board to allow the board to identify members
and beneficiaries who are entitled to payment under subsection (1) of
this section. [1997 c.201 §3] (1) The administrative expenses
incurred by the Public Employees Retirement Board in administering the
Public Employee Benefit Equalization Fund shall be paid from interest
earned by the fund. If the interest is insufficient, the excess expense
shall be paid from the contributions by participating employers under ORS
238.488.
(2) In order to facilitate financing the establishment and
administration of the Public Employee Benefit Equalization Fund, the
board may designate fiscal periods and may provide that extraordinary
expenses incurred during a period, such as expenses for equipment and
actuarial studies, may, for purposes of equitably distributing part of
the burden of expenses, be apportioned to subsequent fiscal periods in
any manner that seems equitable to the board.
(3) For each fiscal period designated by the board, the
administrative expenses of the fund for that period shall be deducted
from the interest earned by the Public Employee Benefit Equalization
Fund. If such interest be insufficient for such purpose, each employer
contributing to the Public Employee Benefit Equalization Fund shall pay a
fraction of those administrative expenses determined by dividing the
employer’s total contribution to the fund for the period by the sum of
all the employers’ contributions to the fund for the period. [1997 c.201
§4] The Public Employees
Retirement Board may adopt rules for the administration of ORS 238.485,
238.488 and 238.490. In adopting rules under this section, the board
shall consider and take into account all federal law requirements
relating to deferred compensation plans, including the requirements
imposed for the deferral of income tax on deferred compensation benefits
until those benefits are paid or made available to the recipient. [1997
c.201 §5]Note: 238.492 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 238 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.JUDGE MEMBERS As used in ORS
238.500 to 238.585, unless the context requires otherwise:
(1) “Court” means the Supreme Court, the Court of Appeals, the
Oregon Tax Court and a circuit court.
(2) “Judge” means a judge of any court.
(3) “Judge member” means a judge who is a member of the Public
Employees Retirement System subject to ORS 238.500 to 238.585.
(4) “Service as a judge” means creditable service, as defined by
ORS 238.005, by a judge as:
(a) A regularly elected or appointed judge of a court; or
(b) A regularly elected or appointed judge of a court temporarily
in another court. [Formerly 237.211] (1) Except as provided in
subsection (2) of this section, a person who is not a judge on December
31, 1983, and who is elected or appointed to the office of judge on or
after January 1, 1984, shall become a judge member on the date the person
takes the office.
(2) A person who, by reason of the age at which becoming a judge,
could not make contributions to the Public Employees Retirement Fund
during each of five calendar years as a judge member at or before
attaining the age of 75 years shall not become a judge member. [Formerly
237.215] (1)(a) Each judge member shall contribute
monthly to the Public Employees Retirement Fund seven percent of the
monthly salary of the judge member. The contributions of a judge member
and earnings on the contributions shall be credited to the member account
of the judge member.
(b) The state shall pick-up, assume or pay the full amount of
contributions to the fund required of judge members. The full amount of
required judge member contributions picked-up, assumed or paid by the
state on behalf of judge members shall be considered salary only for the
purpose of computing a judge member’s final average salary within the
meaning of ORS 238.535 (2) and not for any other purpose. The full amount
of required judge member contributions picked-up, assumed or paid by the
state on behalf of judge members shall be added to the member account of
the judge members and shall be considered judge member contributions for
all other purposes of ORS 238.500 to 238.585.
(2) The state shall make employer contributions to the fund in
respect to judge members as provided in ORS 238.225. Notwithstanding ORS
238.227, for the purposes of actuarial computation and contributions of
the state under ORS 238.225, judge members shall be considered a separate
group of employees. [Formerly 237.217; 2001 c.945 §59; 2005 c.808 §25] A judge member shall be retired
from judicial office at the end of the calendar year in which the judge
member attains the age of 75 years. [Formerly 237.219] (1) Prior to attaining 60
years of age, all judge members shall elect in writing to retire under
either paragraph (a) or (b) of this subsection. The election shall be
irrevocable after the judge member attains 60 years of age. Any judge
member who fails to make the election provided for in this subsection
prior to attaining 60 years of age shall be retired under the provisions
of paragraph (a) of this subsection.
(a) Upon retiring from service as a judge at the age of 65 years or
thereafter, a judge member who has made contributions to the Public
Employees Retirement Fund during each of five calendar years shall
receive as a service retirement allowance, payable monthly, a life
pension (nonrefund) provided by the contributions of the judge member and
the state in an annual amount equal to 2.8125 percent of final average
annual salary multiplied by the number of years of service as a judge not
exceeding 16 years of service as a judge and 1.67 percent of final
average salary multiplied by the number of years of service as a judge
exceeding 16 years of service as a judge, but the annual amount shall not
exceed 65 percent of final average salary.
(b) Upon retiring from service as a judge at the age of 60 years or
thereafter, a judge member who has made contributions to the Public
Employees Retirement Fund during each of five calendar years shall
receive as a service retirement allowance, payable monthly, a life
pension (nonrefund) provided by the contributions of the judge member and
the state in an annual amount equal to 3.75 percent of final average
salary multiplied by the number of years of service as a judge not
exceeding 16 years of service as a judge and two percent of final average
salary multiplied by the number of years of service as a judge exceeding
16 years of service as a judge, but the annual amount shall not exceed 75
percent of final average salary.
(c) Any judge member electing to retire under paragraph (b) of this
subsection shall serve as a pro tem judge, without compensation, for 35
days per year for a period of five years. A judge who serves more than 35
days per year may carry over the additional days to fulfill the pro tem
service obligation in future years. The five-year period shall commence
on the judge member’s date of retirement or the date on which the judge
member commences pro tem service under ORS 238.545 (4), whichever is
earlier. Judge members may be reimbursed for expenses incurred in
providing pro tem services under this paragraph. Upon certification from
the Chief Justice that any judge member who retired under paragraph (b)
of this subsection has failed to perform the pro tem services required
under this paragraph, and has not been relieved of the obligations to
perform those services in the manner provided by this paragraph, the
Public Employees Retirement Board shall recalculate the service
retirement allowance of the noncomplying judge member as though the judge
member elected to retire under paragraph (a) of this subsection, and the
noncomplying judge member shall receive only that recalculated amount
thereafter. A judge may be relieved of the pro tem service obligation
imposed by this paragraph if the judge fails for good cause to complete
the obligation. A retired judge member who is relieved of the obligation
to serve as a pro tem judge shall continue to receive the retirement
allowance provided in paragraph (b) of this subsection.
(d) For the purpose of paragraph (c) of this subsection:
(A) “Good cause” includes, but is not limited to:
(i) Physical or mental incapacitation of a judge that prevents the
judge from discharging the duties of judicial office;
(ii) Failure of the appointing authority to assign a judge to the
requisite amount of pro tem service, whether because of insufficient need
for pro tem judges, a determination by the appointing authority that the
skills of a judge do not match the needs of the courts, clerical mistake,
or otherwise; or
(iii) Death of a judge.
(B) “Good cause” does not include:
(i) A judge’s refusal, without good cause, to accept pro tem
assignments sufficient to meet the required amount; or
(ii) A judge’s affirmative voluntary act that makes the judge
unqualified to serve as a judge of this state including, but not limited
to, failure to maintain active membership in the Oregon State Bar,
acceptance of a position in another branch of state government, or
acceptance of a position in the Government of the United States or of
another state or nation.
(e) The Chief Justice may make rules for the implementation of this
subsection.
(2) As used in subsection (1) of this section, “final average
salary” means whichever of the following is greater:
(a) The average salary per calendar year paid to a judge member in
three of the calendar years of service as a judge before the judge member
retires, in which three years the judge member was paid the highest
salary.
(b) One-third of the total salary paid to a judge member in the
last 36 calendar months of service as a judge before the judge member
retires.
(3) As used in subsection (1) of this section, “number of years of
service” means the number of full years plus any remaining fraction of a
year. In determining a remaining fraction, a full month shall be
considered as one-twelfth of a year and a major fraction of a month shall
be considered as a full month.
(4) For a judge who elects to become a judge member as provided in
ORS 237.215 (3) (1989 Edition), the service retirement allowance under
subsection (1) of this section on retirement at the age of 70 years and
either 12 years of service or two full six-year terms as a judge shall be
at least the equivalent of the retirement pay the judge would have
received had the judge retired under ORS 1.314 to 1.390 (1989 Edition).
(5) A judge member who has made contributions to the Public
Employees Retirement Fund during each of five calendar years and who
attains the age of 60 years shall be retired upon written application by
the judge member to the board on a reduced service retirement allowance
that shall be the actuarial equivalent of the service retirement
allowance provided for in subsection (1)(a) of this section.
(6) For the purposes of this section, a judge who elects to become
a judge member as provided in ORS 237.215 (3) (1989 Edition) shall be
considered to have made contributions to the Public Employees Retirement
Fund during one calendar year for each calendar year during which the
judge made contributions to the Judges’ Retirement Fund.
(7)(a) Notwithstanding subsection (1)(a) of this section, the
maximum percentage used in calculating the annual amount of the life
pension (nonrefund) for a judge who is a judge member on September 27,
1987, or who elected to become a judge member in the manner provided by
ORS 237.215 (3)(b) or (4)(b) (1989 Edition), shall be the percentage
specified by paragraph (b) of this subsection if either:
(A) On September 27, 1987, the judge had more than 28 years of
service that were creditable either under the system; or
(B) On September 27, 1987, the judge had more than 28 years of
service that were creditable under the Judges’ Retirement Fund
established pursuant to ORS 1.314 to 1.390 (1989 Edition) and the judge
became a member of the system under the provisions of ORS 237.215 (3)(b)
(1989 Edition).
(b) The maximum percentage used in calculating the annual amount of
the life pension (nonrefund) of a judge member who meets the requirements
of paragraph (a) of this subsection shall not exceed 45 percent plus 1.67
percent multiplied by the number of years of service as a judge that
exceed 16 years and that were served on or before September 27, 1987.
(c) In computing the annual amount of the life pension of a judge
who meets the requirements of paragraph (a) of this subsection, the board
shall use the percentage specified by paragraph (b) of this subsection
and the final average salary of the judge computed on the date of
retirement, not the final average salary of the judge computed as of
September 27, 1987. In making the computation under this subsection, the
board shall use the definition of “final average salary” provided by ORS
238.535 as amended by section 2, chapter 625, Oregon Laws 1987. [Formerly
237.220; 1997 c.801 §19; 1999 c.317 §21; 2005 c.22 §179] (1)
A judge member who elects to retire under ORS 238.535 (1)(b):
(a) Shall continue to be eligible as a nonretired employee for
health benefit plans contracted for under ORS 243.135 during the time
that the judge member is serving as a pro tem judge under ORS 238.535
(1)(c); and
(b) Subject to availability of funding, shall continue to receive
the monthly state contribution as payment of all or part of the cost of a
health benefit plan during the time that the judge member is serving as a
pro tem judge under ORS 238.535 (1)(c).
(2) A judge member receiving the monthly state contribution as
payment of all or part of the cost of a health benefit plan under this
section is not eligible for payments against the cost of Medicare
supplemental insurance under ORS 238.420 until such time as the judge
member is no longer serving as a pro tem judge under ORS 238.535 (1)(c).
[2001 c.823 §6](1) Except as otherwise provided in this section,
a judge member may withdraw from the Public Employees Retirement Fund the
amount credited to the member account of the judge member if:
(a) The judge member is separated from all service with
participating public employers;
(b) The judge member is separated from all service with employers
who are treated as part of a participating public employer’s controlled
group under the federal laws and rules governing the status of the Public
Employees Retirement System and the Public Employees Retirement Fund as a
qualified governmental retirement plan and trust;
(c) The judge member has not attained 60 years of age; and
(d) The separation from service is not by reason of death or
disability.
(2) If a judge member wishes to withdraw the member account balance
under this section, the judge member must transmit to the Public
Employees Retirement Board a withdrawal request. The board shall deny the
withdrawal, or shall take all reasonable steps to recover withdrawn
amounts, if:
(a) The board determines that the separation is not a bona fide
separation; or
(b) The judge member fails to remain absent from the service of all
employers described in subsection (1) of this section for at least one
calendar month following the month in which the judge member separates
from service.
(3) If a judge member who is eligible to withdraw as provided in
subsection (1) of this section does not elect to withdraw, the member
account of the judge member shall remain to the credit of the judge
member, and the judge member is entitled to such death benefits and
disability retirement allowance as ORS 238.500 to 238.585 provide. Before
attaining 60 years of age, a judge member who is eligible to withdraw as
provided in subsection (1) of this section but who does not withdraw must
elect in writing to retire under either ORS 238.535 (1)(a) or (b). The
election is irrevocable after the judge member attains 60 years of age.
Any inactive judge member who fails to make the election provided for in
this subsection prior to attaining 60 years of age shall be retired under
the provisions of ORS 238.535 (1)(a). The service retirement allowance of
an inactive judge member who retires under ORS 238.535 (1)(a) shall be a
reduced service retirement allowance that is the actuarial equivalent of
the service retirement allowance provided for in ORS 238.535 (1)(a). An
inactive judge member who elects to retire under ORS 238.535 (1)(b) must
meet all other requirements imposed by ORS 238.535 for retirement under
ORS 238.535 (1)(b).
(4) If approved by the Chief Justice of the Supreme Court, an
inactive judge member who elects to retire under ORS 238.535 (1)(b)
pursuant to the provisions of subsection (3) of this section may commence
to serve the pro tem service obligation imposed by ORS 238.535 before the
judge member’s date of retirement. If the Chief Justice determines, at
any time after the judge member commences performing the pro tem service
obligation, that the judge member has failed to perform the pro tem
services in the manner required by ORS 238.535 (1)(c), and the judge
member has not been relieved of the obligation to perform those services
in the manner provided by ORS 238.535 (1)(c), the Chief Justice shall
notify the Public Employees Retirement Board. If the judge member has not
yet retired, the board shall calculate the service retirement allowance
of the noncomplying judge member at the time of retirement in the manner
provided by ORS 238.535 (1)(a). If the judge member has retired, the
board shall recalculate the service retirement allowance of the
noncomplying judge member in the manner provided by ORS 238.535 (1)(a),
and the noncomplying judge member shall receive only that recalculated
amount thereafter. An inactive judge member may be relieved of the pro
tem service obligation imposed by ORS 238.535 (1)(c) in the same manner
as provided in ORS 238.535 for retired judge members.
(5) Withdrawal of the member account balance under this section
cancels all membership rights in the system, including the right to claim
credit for any employment before withdrawal.
(6) ORS 238.105 and 238.115 (1) apply to a former judge member who
has withdrawn the member account balance under this section. [Formerly
237.223; 1997 c.801 §20; 1999 c.317 §6; 2001 c.566 §1; 2001 c.945 §60] (1)(a) A judge member who
has not attained the age of 65 years and who is found to be mentally or
physically incapacitated for an extended duration, as determined by
medical examination by one or more physicians selected by the board, and
thereby unable to perform any work for which qualified, by injury or
disease sustained while in actual performance of duty and not
intentionally self-inflicted, shall be retired for disability and shall
receive as a disability retirement allowance, payable monthly, a pension
equal to the service retirement allowance to which the judge member would
be entitled under ORS 238.535 (1)(a), had the judge member served as a
judge continuously until attaining the age of 65 years, but not less than
an annual amount equal to 45 percent of the final average salary, as
defined in ORS 238.535 (2), of the judge member.
(b) As used in paragraph (a) of this subsection, “injury” means
bodily injury causing the disability directly and independently of all
other causes and effected solely through accidental means.
(2) A judge member who has six or more years of service as a judge,
who has not attained the age of 65 years and who is found to be mentally
or physically incapacitated for an extended duration, as determined by
medical examination by one or more physicians selected by the board, and
thereby unable to perform any work for which qualified, from cause other
than injury or disease sustained while in actual performance of duty and
not intentionally self-inflicted, shall be retired for disability and
shall receive as a disability retirement allowance, payable monthly, a
pension equal to the service retirement allowance to which the judge
member would be entitled under ORS 238.535 (1)(a) had the judge member
served as a judge continuously until attaining the age of 65 years, but
not less than an annual amount equal to 45 percent of the final average
salary, as defined in ORS 238.535 (2), of the judge member.
(3) The effective date of the disability of a judge member shall
not be determined by the board as prior to the last day for which the
judge member performed service as a judge.
(4) No disability retirement allowance may be paid for any month in
which the judge member received salary or sick leave benefits from the
state.
(5) ORS 238.320 (4) and (5), 238.330 (3), 238.335 and 238.340 apply
to retirement of a judge member for disability.
(6) A judge member who is retired under the provisions of ORS 1.310
is entitled to any applicable retirement allowance for which eligible
under ORS 238.500 to 238.585. [Formerly 237.225] (1) For the
purposes of this section, the beneficiary of the judge member shall be
any person, or the personal representative of the estate of the judge
member, or a trustee named by the judge member to execute an express
trust, whom the judge member designates as a beneficiary by written
designation duly acknowledged and filed with the board before the death
of the judge member.
(2)(a) If a judge member who has six or more years of service as a
judge dies before retiring, and the judge member is not an inactive judge
member who is performing a pro tem service obligation under the
provisions of ORS 238.545 (4), the surviving spouse of the judge member
shall receive a life pension, payable monthly, equal to two-thirds of the
service retirement allowance the judge member would have received under
ORS 238.535 (1)(a) had the judge member retired on the date of death.
(b) If a judge member who has six or more years of service as a
judge dies before retiring, and the judge member is an inactive member
who is performing a pro tem service obligation under the provisions of
ORS 238.545 (4), the surviving spouse of the judge member shall receive a
life pension, payable monthly, equal to two-thirds of the service
retirement allowance the judge member would have received under ORS
238.535 (1)(b) had the judge member retired on the date of death.
(c) If a surviving spouse receiving a pension under paragraph (a)
or (b) of this subsection dies and the total amount received as pension
by the surviving spouse is less than the amount credited to the member
account of the judge member in the fund on the date of death of the judge
member, the beneficiary shall receive a lump sum amount equal to the
difference between the total amount received by the surviving spouse and
the amount so credited to the member account of the judge member.
(d) If a judge member who has six or more years of service as a
judge dies before retiring and has no surviving spouse, the beneficiary
shall receive a lump sum amount equal to the amount credited to the
member account of the judge member in the fund on the date of death of
the judge member.
(e) If the surviving spouse of a judge member who dies before
retiring is not entitled to a pension under paragraph (a) or (b) of this
subsection, the surviving spouse shall receive a lump sum amount equal to
the amount credited to the member account of the judge member in the fund
on the date of death of the judge member.
(3)(a) If a judge member dies after retiring, the surviving spouse
of the judge member shall receive a life pension, payable monthly, equal
to two-thirds of the retirement allowance the judge member is receiving
or is entitled to receive on the date of death.
(b) If a surviving spouse receiving a pension under paragraph (a)
or (b) of this subsection dies and the total amount received as
retirement allowance by the retired judge member and as pension by the
surviving spouse is less than the amount credited to the member account
of the judge member on the date of retirement of the judge member, the
beneficiary shall receive a lump sum amount equal to the difference
between the total amount received as retirement allowance and pension and
the amount so credited to the member account of the judge member.
(c) If a judge member dies after retiring and has no surviving
spouse, and the total amount received as retirement allowance by the
retired judge member is less than the amount credited to the member
account of the judge member on the date of retirement of the judge
member, the beneficiary shall receive a lump sum amount equal to the
difference between the total amount received as retirement allowance and
the amount so credited to the member account of the judge member.
(4) At any time after becoming a judge member, but not later than
the date on which the first payment on account of retirement is due, a
judge member may elect to provide an addition to the pension of the
surviving spouse of the judge member under subsection (3)(a) of this
section by selecting a reduced retirement allowance for the judge member.
The additional pension to the surviving spouse shall be the actuarial
equivalent of the reduction in the retirement allowance of the judge
member and, in no event, when added to the pension under subsection
(3)(a) of this section, shall it exceed the reduced retirement allowance
elected by the judge member.
(5) Any accrued retirement allowance due a retired judge member
that is unpaid at the time of death of the judge member shall be paid to
the surviving spouse of the judge member. If there is no surviving
spouse, the accrued retirement allowance shall be paid to the beneficiary
of the judge member. If there is no surviving spouse or beneficiary, the
accrued retirement allowance shall be paid as provided in ORS 238.390 (2).
(6) Notwithstanding any other provision of this section, a judge
member shall be considered to have died with no surviving spouse if:
(a) The judge member has entered into a prenuptial or antenuptial
agreement with the spouse of the judge that provides that the spouse
shall have no right or claim to a surviving spouse’s pension; and
(b) The judge member has filed a copy of the prenuptial or
antenuptial agreement with the board before the death of the judge member.
(7) The board shall not be liable for any payment made to a
beneficiary by reason of a prenuptial or antenuptial agreement filed with
the board under subsection (6) of this section unless the board has
actual knowledge that the agreement has been revoked. [Formerly 237.227;
1997 c.801 §21; 1999 c.317 §22; 2001 c.945 §61; 2003 c.625 §5] (1) Every
monthly retirement allowance or pension payable to a judge member or
surviving spouse of a judge member under ORS 238.500 to 238.585 shall be
adjusted annually to reflect the percentage increase or decrease in the
cost of living as provided in ORS 238.360.
(2) ORS 238.387 applies to judge members, and for that purpose the
monthly retirement allowance referred to in ORS 238.387 shall be the
monthly retirement allowance payable to a judge member or the monthly
pension payable to the surviving spouse of a judge member under ORS
238.565 (3)(a). [Formerly 237.230; 2001 c.945 §71](1) ORS 238.005 (3) and
(21), 238.025, 238.078, 238.082, 238.092, 238.115 (1), 238.250, 238.255,
238.260, 238.350, 238.380, 238.410, 238.415, 238.420, 238.445, 238.458,
238.460, 238.465, 238.475, 238.600, 238.605, 238.610, 238.618, 238.630,
238.635, 238.645, 238.650, 238.655, 238.660, 238.665, 238.670 and 238.705
and the increases provided by ORS 238.385 for members of the system who
are serving as other than police officers or firefighters apply in
respect to service as a judge member.
(2) This chapter applies in respect to persons described in ORS
238.505 (1) and in respect to service as a judge member only as
specifically provided in ORS 238.500 to 238.585. [Formerly 237.233; 1999
c.317 §23; 2001 c.945 §62; 2005 c.152 §9](1) A judge member who has creditable service as other than
a judge member is entitled to the use of all creditable service as a
judge member for the purpose of establishing eligibility under ORS
238.115, 238.125, 238.135 or any other provision of this chapter that
requires a specified number of years of creditable service.
(2) A judge member who has creditable service as other than a judge
member is entitled to use of all creditable service as other than a judge
member for the purpose of establishing eligibility under the provisions
of ORS 238.385, 238.415, 238.420 or any other provision of this chapter
that is applicable to a judge member and that requires a specified number
of years of creditable service.
(3) A member of the system other than a judge member who separates
from all service entitling the person to membership in the system and who
withdraws the amount credited to the member account of the member in the
fund may restore all rights forfeited by the withdrawal in the manner
specified by ORS 238.105 if the person becomes a judge member within five
years after the date that the person is separated from all service
entitling the person to membership in the system. [1995 c.658 §136; 2001
c.945 §63]ADMINISTRATION(Public Employees Retirement System) (1) A system of
retirement and of benefits at retirement or death for employees of public
employers hereby is established and shall be known as the Public
Employees Retirement System. The Public Employees Retirement System
consists of this chapter and ORS chapter 238A. It is the intent of the
Legislative Assembly that the system be qualified and maintained under
sections 401(a), 414(d) and 414(k) of the Internal Revenue Code as a
tax-qualified defined benefit governmental plan.
(2) If the Public Employees Retirement System is terminated, or if
contributions may no longer be made to the system, each member of the
system has a nonforfeitable right to the benefits that the member has
accrued as of the date of the termination, or as of the date that
contributions may no longer be made to the system, to the extent that
those benefits are funded. [Formerly 237.005; 1997 c.121 §2; 1999 c.317
§9; 2003 c.733 §55a; 2005 c.808 §1]
The Legislative Assembly finds that the maintenance of a solid,
affordable public employees retirement plan is essential to providing
effective, efficient services to the citizens of Oregon by allowing the
state and political subdivisions of the state to hire and retain
employees who are committed to providing those services. It is the intent
of the Legislative Assembly that the Public Employees Retirement Board,
in performing its duties as trustee of the Public Employees Retirement
Fund, recognize that the continued stability and viability of the Public
Employees Retirement System depends on the ability of public employers
and taxpayers to pay the costs of the system. Consistent with this
intent, the board shall administer the system to create and maintain
long-term stability and viability in the system, and shall act to achieve
full funding for the benefits provided by the system, giving equal
consideration to the interests of the public employer and the employee to
the extent that treatment does not violate the fiduciary duties of the
board. Nothing in this section shall be construed to impose a fiduciary
duty on the board to consider the interests of public employers, and the
board shall consider the interests of public employers only with respect
to matters unrelated to the board’s fiduciary duties as trustee of the
fund. [2001 c.945 §2] At least once every two years
the board shall cause a competent actuary familiar with public systems of
retirement and death benefits to prepare a report evaluating the current
and prospective assets and liabilities of the system and indicating its
current and prospective financial condition. In preparing the report the
actuary shall investigate the mortality, disability, service and other
experience of the members of, and employers participating in the system,
shall state fully the condition of the system, and shall make such
recommendations as the actuary deems advisable to facilitate
administering it properly. The board shall publish and distribute a
summary of the report to all the public employers participating in the
system. The board may authorize the transfer of any portion of the funds
collected under the provisions of ORS 238.225 to carry out the
recommendations of the actuary. [Formerly 237.285] (1) Once every two
calendar years, the Public Employees Retirement Board shall adopt
actuarial equivalency factor tables for the purpose of computing the
payments to be made to members and their beneficiaries, alternate payees
and judge members and their spouses and beneficiaries. The tables may be
adopted in conjunction with the system evaluation required by ORS
238.605. Tables adopted under this section must use the best actuarial
information on mortality available at the time the board adopts the
tables, as provided by the actuary engaged by the board. Actuarial
equivalency factor tables adopted under this section become effective on
January 1 of the calendar year following adoption of the tables by the
board. All computations of payments must use the actuarial equivalency
factor tables that are in effect on:
(a) The effective date of retirement for any member, judge member
or alternate payee;
(b) The date that the first payment is due for any death
beneficiary; or
(c) The date that the first payment is due for any recalculation of
payments that is not attributable to error, including but not limited to
recalculations under ORS 238.465 (2).
(2) The board may not defer or delay implementation of the
actuarial equivalency factor tables adopted under this section. [2003
c.68 §2]Note: Sections 3 and 4, chapter 68, Oregon Laws 2003, provide:
Sec. 3. The Public Employees Retirement Board shall first adopt
actuarial equivalency factor tables under section 2 of this 2003 Act
[238.607] to become effective January 1, 2005. [2003 c.68 §3]
Sec. 4. (1) Subject to subsections (2) and (3) of this section, for
the purpose of computing the retirement allowance of members and
alternate payees with effective dates of retirement on or after July 1,
2003, and before January 1, 2005, the Public Employees Retirement Board
shall use actuarial equivalency factor tables that are based on the
mortality assumptions of the actuary’s 2001 experience study as adopted
by the board on September 10, 2002.
(2) The retirement allowance of any member or alternate payee who
has an effective date of retirement on or after July 1, 2003, shall be
the higher of the following amounts:
(a) The amount calculated for the retirement allowance selected by
the member under ORS 238.300, 238.305, 238.320 or 238.325 determined as
of the member’s or alternate payee’s effective date of retirement, using
all calculations applicable to the member under ORS 238.300 (2) and using
actuarial equivalency factor tables in effect on the effective date of
retirement for the purpose of all calculations using actuarial
equivalency factor tables; or
(b) The amount calculated under subsection (3) of this section.
(3) For each member or alternate payee described in subsection (2)
of this section, the board shall establish years of service, an account
balance and a final average salary as of June 30, 2003. Years of service
for the member as of June 30, 2003, shall include all creditable service
of the member determined as of June 30, 2003, including any retirement
credit acquired by the member under ORS 238.105 to 238.175 before July 1,
2003. The account balance shall include all employee contributions made
by or on behalf of the member as of June 30, 2003, and earnings on those
contributions as of June 30, 2003, credited in the manner provided by
board rules in effect on May 9, 2003, governing crediting of earnings
upon retirement of a member. The board shall then calculate the
retirement allowance selected by the member under ORS 238.300, 238.305,
238.320 or 238.325, using all calculations applicable to the member under
ORS 238.300 (2), except that:
(a) The board shall use the actuarial equivalency factor tables in
effect on June 30, 2003, for the purpose of all calculations using
actuarial equivalency factor tables; and
(b) The board shall use the years of service, account balance and
final average salary established by the board under this subsection for
the member as of June 30, 2003.
(4) The board need not perform the calculations described in
subsections (2) and (3) of this section for a member if the board
actuarially determines that one of the calculations described in
subsection (2) or (3) of this section necessarily provides the highest
amount.
(5) Any monthly payments to be made to a death beneficiary under
ORS 238.390, 238.395 or 238.405 for a member who dies on or after May 9,
2003, shall be calculated using the actuarial equivalency factor tables
that are in effect on the date that the first payment is due to the death
beneficiary.
(6) This section and section 2, chapter 68, Oregon Laws 2003
[238.607], do not apply to the calculation of the retirement allowance
and surviving spouse pension of a person who is a judge member on June
30, 2003, and who makes an election under ORS 238.565 (4). The board
shall use the actuarial equivalency factor tables in effect on June 30,
2003, for the purpose of calculating the retirement allowance and
surviving spouse pension of a person who is a judge member on June 30,
2003, and who makes an election under ORS 238.565 (4), whether that
election is made before, on or after June 30, 2003. [2003 c.67 §40; 2003
c.68 §4; 2003 c.625 §16](1) The Public Employees Retirement
Board shall conduct a study of the life expectancy of members of the
Public Employees Retirement System in the categories described in
subsection (2) of this section. If the board determines that members in
the categories described in subsection (2) of this section have a life
expectancy that is substantially shorter than the life expectancy of
members of the system generally, the board shall adopt and use separate
actuarial equivalency factor tables under ORS 238.607 for the purpose of
computing the payments to be made to members in the categories described
in subsection (2) of this section and to the beneficiaries and alternate
payees of those members. Any actuarial equivalency factor tables adopted
under this section shall first become effective January 1, 2005.
(2) The provisions of this section apply to members of the system
who are defined as firefighters under ORS 238.005 (9) or as police
officers under ORS 238.005 (16)(a), (b), (d), (e), (f), (k), (L), (n),
(o) or (p). [2003 c.68 §7; 2003 c.625 §18] (1) The administrative
expenses of the Public Employees Retirement System shall be paid from
interest earned by the Public Employees Retirement Fund; provided, that
if such interest be insufficient the expense in excess thereof shall be
paid from the contributions which this chapter and ORS 238A.220 and
238A.240 require participating employers to pay into the Public Employees
Retirement Fund. The Public Employees Retirement Board by rule may
establish procedures for recovering administrative costs from members for
services provided in estimating retirement benefit amounts and processing
payments if the board determines that the services requested by an
individual member result in extraordinary costs to the system.
(2) In order to facilitate financing the establishment and
administration of the system the board may designate fiscal periods and
may provide that extraordinary expenses incurred during one such period,
such as expenses for equipment and actuarial studies, may, for purposes
of equitably distributing part of the burden of the expenses, be
apportioned to subsequent fiscal periods in such manner as to the board
seems equitable.
(3) For each fiscal period designated by the board there shall be
deducted from the interest earned by the fund, the administrative
expenses of the system for that period; provided, that if such interest
be insufficient for such purpose, the excess expense shall be paid by
deducting from the account of each employer participating in the system
that fraction of the administrative expense of the system for that period
which the employer’s total contribution to the fund for the period is of
the sum of all the employers’ contributions to the fund for the period.
(4) Amounts payable as refunds and retirement allowances shall not
for any purpose be deemed expenses of the board and shall not be included
in its biennial departmental budget. [Formerly 237.291; 2003 c.105 §5;
2003 c.733 §56] (1)
On request from the Public Employees Retirement System, the Oregon
Department of Administrative Services shall draw warrants on amounts
authorized for payment of the administrative expenses of the system for
use by the system as a revolving fund. The revolving fund shall not
exceed the aggregate sum of $5,000 including unreimbursed advances. The
revolving fund shall be deposited with the State Treasurer to be held in
a special account against which the system may draw checks.
(2) The revolving fund may be used by the system to pay travel
expenses for employees of the system and for any consultants or advisors
for whom payment of travel expenses is authorized by law, or advances
therefor, or for salary advances or payment to terminating employees, or
for receipt and disbursement of funds made available to the system
through vocational rehabilitation training programs.
(3) All claims for reimbursement of amounts paid from the revolving
fund shall be approved by the system and by the department. When such
claims have been approved, a warrant covering them shall be drawn in
favor of the system and charged against the appropriate fund or account
and shall be used to reimburse the revolving fund. [Formerly 237.293]Notwithstanding any other provision of law, the Public
Employees Retirement Board may deny or terminate participation by an
employer in the Public Employees Retirement System, and may deny or
terminate membership in the system for any employee, if the board
determines that allowing participation by the employer or membership for
the employee would cause the system or the Public Employees Retirement
Fund to lose qualification as a qualified governmental retirement plan
and trust under the Internal Revenue Code and under regulations adopted
pursuant to the Internal Revenue Code. [1999 c.317 §3](Public Employees Retirement Board) (1) The governing authority of the
system shall be a board known as the Public Employees Retirement Board
and consisting of five members appointed by the Governor subject to
confirmation by the Senate in the manner provided in ORS 171.562 and
171.565. Except as otherwise provided in ORS 238.640, the term of each
member shall be three years. The Governor shall designate one member to
serve as chairperson, who shall serve as chairperson at the pleasure of
the Governor.
(2) The board shall have:
(a) The powers and privileges of a corporation, including the right
to sue and be sued in its own name as such board; and
(b) The power and duty, subject to the limitations of this chapter
and ORS chapter 238A, of managing the system.
(3) The board:
(a) Shall arrange for actuarial service for the system;
(b) Shall employ a director;
(c) Shall create such other positions as it deems necessary to
sound and economical administration of the system, which positions the
director shall fill by appointment;
(d) Shall, with the approval of the Director of the Oregon
Department of Administrative Services, and as otherwise provided by law,
fix the salaries of all persons employed for purposes of administering
the system;
(e) Shall publish and distribute to all employer and employee
members of the system an annual report including a summary of investments
of moneys in the fund, investment earnings, significant legislative or
administrative changes in the system and other pertinent information on
the operation of the system for the preceding year;
(f) Shall determine the actuarial equivalency of optional forms of
retirement allowances and pensions and adopt for that purpose the
necessary actuarial equivalency factor tables in the manner provided by
ORS 238.607, which shall constitute a part of the system; and
(g) Shall adopt rules and take all actions necessary to maintain
qualification of the Public Employees Retirement System and the Public
Employees Retirement Fund as a qualified governmental retirement plan and
trust under the Internal Revenue Code and under regulations adopted
pursuant to the Internal Revenue Code. Rules under this paragraph may
impose limits on contributions to the system, limits on benefits payable
from the system and other limitations or procedures required or imposed
under federal law or regulation for the purpose of qualification of the
Public Employees Retirement System and Public Employees Retirement Fund
under the Internal Revenue Code as a governmental retirement plan and
trust.
(4) The board established by this section shall succeed to all the
duties and prerogatives of the Public Employees Retirement Board created
by chapter 401, Oregon Laws 1945, in relation to the Public Employees
Retirement Fund, and in addition shall perform all duties required of it
by ORS 237.950 to 237.980, in regard to moneys payable to or from such
fund.
(5) The board shall identify by rule those records that must be
maintained by participating public employers for the purposes of
subsection (3)(g) of this section. A participating public employer shall
maintain records for all employees who are members of the system as
required by board rules, and shall provide that information to the board
upon request. [Formerly 237.251; 1997 c.121 §3; 2001 c.945 §6; 2003 c.68
§8; 2003 c.69 §1; 2003 c.733 §57] The
Public Employees Retirement Board shall include a study of accounting,
reporting and related subjects when considering the goals and objectives
of the Public Employees Retirement System. [Formerly 237.253] (1) All members of the
Public Employees Retirement Board must be at least 21 years of age, be
citizens of the United States and have been residents of the state for at
least two years immediately preceding appointment to the board.
(2) One member of the board must be:
(a) An employee of the state in a management position at the time
of appointment and throughout the term of appointment; or
(b) A person who holds an elective office, by election or
appointment, in the governing body of a participating public employer,
other than the state.
(3) One member must be a public employee, as defined in ORS
243.650, who is in an appropriate bargaining unit, as defined in ORS
243.650, and who has an exclusive representative at the time of the
member’s appointment and throughout the term of the member. Membership on
the board does not affect the status of the person as a public employee,
as defined in ORS 243.650.
(4) Three members of the board must have experience in business
management, pension management or investing. A member appointed under
this subsection may not be a member of the Public Employees Retirement
System or a beneficiary of a member of the system, and may not have any
interest in benefits provided by the system.
(5) Notwithstanding the qualifications established for members of
the board under this section, all members of the board have the same
fiduciary duties and must exercise the same degree of independent
judgment.
(6) Any vacancy on the board shall be filled by appointment for the
unexpired term of the member replaced. Members of the board may be
reappointed.
(7) Except as provided in subsection (8) of this section, a member
of the board is entitled to compensation and expenses as provided in ORS
292.495 from the Public Employees Retirement Fund.
(8) Any member of the board who is an active member of the system
shall be released by the participating public employer who employs the
member for the purpose of conducting the official business of the board.
The wages or salary of the member shall not be reduced during periods
that the member is released from duty for the purpose of conducting the
official business of the board. The board shall reimburse a public
employer for the cost of continuing the wages or salary of the member
while the member is released from duty under this subsection. A member
who continues to receive wages or salary under the provisions of this
subsection shall not receive compensation under ORS 292.495, but shall
receive travel and other expenses provided for under ORS 292.495. The
provisions of this subsection do not apply to any person who is a member
of the board and who holds another office that is subject to the
provisions of section 10, Article II of the Oregon Constitution,
prohibiting the holding of more than one lucrative office. [Formerly
237.255; 1997 c.324 §1; 2001 c.945 §6a; 2003 c.69 §2] The system shall be administered,
subject to the limitations of this chapter, ORS chapter 238A and the
budget prescribed by the board, by the director provided for by ORS
238.630 and by a staff which the board authorizes and which the director
appoints. The director shall hold that position during the discretion of
the board and the members of the staff shall hold their respective
positions during the discretion of the director. No member of the staff
may be removed from it, however, in a manner contrary to the laws of the
state regarding civil service. The director shall furnish such bond as is
required by the board. [Formerly 237.259; 2003 c.733 §58]For the purpose of requesting a state or
nationwide criminal records check under ORS 181.534, the Director of the
Public Employees Retirement System may require the fingerprints of a
person who:
(1)(a) Is employed or applying for employment by the system; or
(b) Provides services or seeks to provide services to the system as
a contractor, vendor or volunteer; and
(2) Is, or will be, working or providing services in a position:
(a) In which the person is providing information technology
services and has control over, or access to, information technology
systems that would allow the person to harm the information technology
systems or the information contained in the systems;
(b) In which the person has access to information, the disclosure
of which is prohibited by state or federal laws, rules or regulations or
information that is defined as confidential under state or federal laws,
rules or regulations;
(c) That has payroll functions or in which the person has
responsibility for receiving, receipting or depositing money or
negotiable instruments, for billing, collections or other financial
transactions or for purchasing or selling property;
(d) That has mailroom duties as the primary duty or job function of
the position;
(e) In which the person has access to personal information about
employees or members of the public including Social Security numbers,
dates of birth, driver license numbers, personal financial information or
criminal background information;
(f) In which the person provides security, design or construction
services for government buildings, grounds or facilities; or
(g) In which the person has responsibility for auditing within the
system. [2005 c.730 §76]Note: 238.646 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 238 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation. (1) Subject to the
limitations of this chapter and ORS chapter 238A, the Public Employees
Retirement Board shall, from time to time, establish rules for
transacting its business and administering the system in accordance with
the requirements of ORS chapter 183.
(2) All rules adopted by the board become part of the written plan
document of the Public Employees Retirement System for the purpose of the
status of the system and the Public Employees Retirement Fund as a
qualified governmental retirement plan and trust under the Internal
Revenue Code and under regulations adopted pursuant to the Internal
Revenue Code. [Formerly 237.263; 1999 c.317 §1; 2003 c.733 §59] In order to determine any
facts necessary to the administration of the retirement system, the board
may conduct hearings, subpoena and examine witnesses and require any
person having custody thereof to bring before the board any book, record,
document, certificate, writing, article or thing necessary to a
determination of facts. The chairperson or member of the board acting in
such capacity shall have authority to administer oaths. The procedure in
such hearings shall be informal. Fees shall not be paid to witnesses who
are public officers or employees, whether or not their employer is
participating in the system. No public employer shall make deduction from
the compensation of public officers or employees because of absence from
their respective positions in order to be examined as witnesses before
the board. The fees of other witnesses and mileage of any witness shall
be as allowed by law to witnesses in ORS 44.415 (2). Fees and mileage and
all other necessary disbursements in connection with a hearing shall be
paid by the public employer whose failure or refusal to supply any facts
requested of it by the board made necessary such hearing. [Formerly
237.315] The Attorney General shall consult with the
Governor on appointment of separate counsel pursuant to ORS 180.235 to
represent the Public Employees Retirement Board in any matter or in any
class of matters in which the benefits payable under the Public Employees
Retirement System are at issue, including but not limited to defending
the provisions of chapter 67, Oregon Laws 2003. [2003 c.67 §14a; 2005
c.22 §180]Note: Legislative Counsel has substituted “chapter 67, Oregon Laws
2003,” for the words “this 2003 Act” in section 14a, chapter 67, Oregon
Laws 2003, compiled as 238.657. Specific ORS references have not been
substituted, pursuant to 173.160. The sections for which substitution
otherwise would be made may be determined by referring to the 2003
Comparative Section Table located in Volume 20 of ORS.(Public Employees Retirement Fund) (1)
The Public Employees Retirement Fund is declared to be a trust fund,
separate and distinct from the General Fund, for the uses and purposes
set forth in this chapter and ORS chapter 238A and ORS 237.950 to
237.980, and for no other use or purpose, except that this provision
shall not be deemed to amend or impair the force or effect of any law of
this state specifically authorizing the investment of moneys from the
fund. Interest earned by the fund shall be credited to the fund. Except
as otherwise specifically provided by law, the Public Employees
Retirement Board established by ORS 238.630 is declared to be the trustee
of the fund. Consistent with the legislative intent expressed in ORS
238.601, and to the extent it is consistent with the board’s fiduciary
duties, the board shall give equal consideration to the interests of
participating public employers and the interests of members. Nothing in
this subsection shall be construed to impose a fiduciary duty on the
board to consider the interests of public employers, and the board shall
consider the interests of public employers only with respect to matters
unrelated to the board’s fiduciary duties as trustee of the fund.
(2) Until all liabilities to members and their beneficiaries are
satisfied, assets of the fund may not be diverted or otherwise put to any
use that is not for the exclusive benefit of members and their
beneficiaries. This subsection does not limit return of employer
contributions for health benefits in the manner provided by ORS 238.410,
238.415 and 238.420 upon satisfaction of all liabilities for health
benefits under those sections.
(3) The State of Oregon and other public employers that make
contributions to the fund have no proprietary interest in the fund or in
the contributions made to the fund by them. The state and other public
employers disclaim any right to reclaim those contributions and waive any
right of reclamation they may have in the fund. This subsection does not
prohibit alteration or refund of employer contributions if the alteration
or refund is authorized under this chapter or ORS chapter 238A and is due
to erroneous payment or decreased liability for employer contributions
under the system.
(4) The board may accept gifts of money or other property from any
source, given for the uses and purposes of the system. Money so received
shall be paid into the fund. Money or other property so received shall be
used for the purposes for which received. Unless otherwise prescribed by
the source from which the money or other property is received, the money
shall be considered as income of the fund and the other property shall be
retained, managed and disposed of as are investments of the fund.
(5) All moneys paid into the fund shall be deposited with the State
Treasurer, who shall be custodian of the fund and pay all warrants drawn
on it in compliance with law. No such warrant shall be paid until the
claim for which it is drawn is first approved by the director or designee
and otherwise audited and verified as required by law. Monthly, each
beneficiary’s gross benefit shall be calculated; applicable deductions
made for taxes, insurance and other withholdings; and the net amount paid
to the beneficiary, by check or by electronic funds transfer (EFT) to the
beneficiary’s bank. A deduction summary shall be made, by type, and a
check issued for the aggregate of each type for transmittal to the
appropriate taxing jurisdiction, vendor or institution. A voucher shall
be prepared and transmitted to the Oregon Department of Administrative
Services for reimbursement of the checking account, and the department
shall draw a warrant on the State Treasurer, payable to the Public
Employees Retirement System, for the amount thereof.
(6) Any warrant, check or order for the payment of benefits or
refunds under the system out of the fund issued by the board which is
canceled, declared void or otherwise made unpayable pursuant to law
because it is outstanding and unpaid for a period of more than two years,
may be reissued by the board without bond if the payee is located after
such warrant, check or order is canceled, declared void or otherwise made
unpayable pursuant to law.
(7) All references in this chapter to checks or warrants are
subject to the provisions of ORS 291.001.
(8) The board shall provide for an annual audit of the retirement
fund and for an annual report to the Legislative Assembly and to all
members of, retirees of, and all employers participating in, the system.
The annual report must contain financial statements prepared in
accordance with generally accepted accounting principles. The financial
statements must include the report of any independent auditor.
(9) The board may review legislative proposals for changes in the
benefits provided under this chapter and ORS chapter 238A and may make
recommendations to committees of the Legislative Assembly on those
proposed changes. In making recommendations under this subsection, the
board acts as a policy advisor to the Legislative Assembly and not as a
fiduciary. In making recommendations under this subsection on the Oregon
Public Service Retirement Plan established by ORS chapter 238A, the board
shall seek to maintain the balance between benefits and costs, and the
relative risk borne by employers and employees with respect to investment
performance, reflected in ORS chapter 238A as in effect on January 1,
2004.
(10) The board shall appoint a committee to advise the board on
legislative proposals for changes in the benefits provided under this
chapter and ORS chapter 238A. The committee must have an equal number of
members representing labor and management. No costs of reviewing
legislative proposals and making recommendations under this subsection
may be charged to the fund. Any member of the committee who is an active
member of the system shall be released by the participating public
employer who employs the member for the purpose of conducting the
official business of the committee, and the wages or salary of the member
may not be reduced by the employer during periods that the member is
released from duty for the purpose of conducting the official business of
the committee. [Formerly 237.271; 1997 c.121 §1; 1999 c.317 §8; 1999
c.407 §6; 2001 c.945 §3; 2003 c.17 §2; 2003 c.625 §29; 2003 c.733 §60]Note: Section 44e, chapter 733, Oregon Laws 2003, provides:
Sec. 44e. Until June 30, 2005, the Public Employees Retirement
System may use moneys of the Public Employees Retirement Fund that are
unrelated to the Oregon Public Service Retirement Plan to pay the
administrative costs of the individual account program. The authority
created by this section is in addition to and not in lieu of the
authority of the system to use moneys attributable to the individual
account program to pay administrative expenses of that program. Not later
than February 1, 2010, all moneys used under this section to pay the
costs of administering the individual account program must be repaid to
the fund from individual accounts by means of adjustments to those
accounts under ORS 238A.350 (1). [2003 c.733 §44e; 2005 c.808 §20] Moneys in the Public
Employees Retirement Fund are continuously appropriated to the Public
Employees Retirement Board to carry out the purposes of this chapter and
ORS chapter 238A. [2001 c.716 §10; 2003 c.733 §61]
Contributions required by this chapter or ORS chapter 238A to be placed
in the retirement fund, and interest required to be allocated to the
member accounts of members of the retirement system and to participating
employers, shall not be included in the biennial departmental budget of
the board. [Formerly 237.279; 2001 c.945 §64; 2003 c.733 §62] (1) At the close of each calendar
year in which the earnings on the Public Employees Retirement Fund equal
or exceed the assumed interest rate established by the Public Employees
Retirement Board under ORS 238.255, the board shall set aside, out of
interest and other income received through investment of the Public
Employees Retirement Fund during that calendar year, such part of the
income as the board may deem advisable, not exceeding seven and one-half
percent of the combined total of such income, which moneys so segregated
shall remain in the fund and constitute therein a reserve account. The
board shall continue to credit the reserve account in the manner required
by this subsection until the board determines that the reserve account is
adequately funded for the purposes specified in this subsection. Such
reserve account shall be maintained and used by the board to prevent any
deficit of moneys available for the payment of retirement allowances, due
to interest fluctuations, changes in mortality rate or, except as
provided in subsection (3) or (4) of this section, other contingency. In
addition, the reserve account may be used by the board for the following
purposes:
(a) To prevent any deficit in the fund by reason of the insolvency
of a participating public employer. Reserves under this paragraph may be
funded only from the earnings on employer contributions made under ORS
238.225.
(b) To pay any legal expenses or judgments that do not arise in the
ordinary course of adjudicating an individual member’s benefits or an
individual employer’s liabilities.
(c) To provide for any other contingency that the board may
determine to be appropriate.
(2) At the close of each calendar year, the board shall set aside,
out of interest and other income received during the calendar year, after
deducting the amounts provided by law and to the extent that such income
is available, a sufficient amount to credit to the reserves for pension
accounts and annuities varying percentage amounts adopted by the board as
a result of periodic actuarial investigations. If total income available
for distribution exceeds those percentages of the total accumulated
contributions of employees and employers, the reserves for pensions and
annuities shall participate in such excess.
(3) The board may set aside, out of interest and other income
received through investment of the fund, such part of the income as the
board considers necessary, which moneys so segregated shall remain in the
fund and constitute one or more reserve accounts. Such reserve accounts
shall be maintained and used by the board to offset gains and losses of
invested capital. The board, from time to time, may cause to be
transferred from the reserve account provided for in subsection (1) of
this section to a reserve account provided for in this subsection such
amount as the board determines to be unnecessary for the purposes set
forth in subsection (1) of this section and to be necessary for the
purposes set forth in this subsection.
(4) The board may provide for amortizing gains and losses of
invested capital in such instances as the board determines that
amortization is preferable to a reserve account provided for in
subsection (3) of this section.
(5) At least 30 days before crediting any interest and other income
received through investment of the Public Employees Retirement Fund to
any reserve account in the fund, the board shall submit a preliminary
proposal for crediting to the appropriate legislative review agency, as
defined in ORS 291.371 (1), for its review and comment. [Formerly
237.281; 2001 c.945 §5]Upon the death or retirement of a member of the Public
Employees Retirement System, the Public Employees Retirement Board shall
credit earnings to the participating public employer or employers that
employed the member. The board shall credit earnings to the amounts
charged to each employer by reason of the death or retirement. The
earnings rate used by the board shall be the same rate that the board
uses for crediting member accounts at the time the charge is made. [2001
c.945 §21](1)(a) Any benefit payment that is payable as
the result of the death of a member may be transferred by the Public
Employees Retirement Board to another account or reserve in the fund if:
(A) The total benefit payable to the beneficiaries designated by
the deceased member is less than $250 in amount;
(B) Ten years have passed since the death of the member; and
(C) No claim has been made for the benefit payment.
(b) Amounts transferred under this section shall be credited to
accounts or reserves in the fund designated by the board in its
discretion.
(c) The board shall establish procedures for the filing of a
delayed claim by a beneficiary of a deceased member who would otherwise
be entitled to receive a benefit payment. Delayed claims may be filed
after the 10-year period provided for in paragraph (a) of this subsection.
(2)(a) The Public Employees Retirement Board may transfer the
amount credited to the member account of a former member to another
account or reserve in the fund if:
(A) The total amount credited to the member account of the former
member is less than $250;
(B) The membership of the person in the system has been terminated
under the provisions of ORS 238.095 (2) or the membership of the person
in the pension program or individual account program has been terminated
under ORS 238A.110 or 238A.310; and
(C) Ten years have passed since the former member ceased to be a
member of the system and no claim has been made for payment of the amount
credited to the member account of the former member.
(b) Amounts transferred under this section shall be credited to
reserves or accounts in the fund designated by the board in its
discretion.
(c) The board shall establish procedures for the filing of a
delayed claim by a former member of the system who would otherwise be
entitled to receive amounts credited to the member account of the former
member. Delayed claims may be filed after the 10-year period provided for
in paragraph (a) of this subsection. [Formerly 237.295; 2001 c.945 §65;
2003 c.733 §63](Integration of Other Retirement Systems) (1) Employees
whose membership in a previously established retirement system excludes
them from membership in the system established by this chapter may apply
to the Public Employees Retirement Board in writing for the former system
to be integrated into the latter and for them to be allowed to become
members of the latter. Whenever two-thirds of them and their employer,
through its governing body, so apply, the board:
(a) May cause a financial and actuarial investigation of the
proposed integration to be made, the cost of which shall be borne by the
previously established system; and
(b) May upon such terms as are set forth in a contract between the
board and the employer, integrate the previously established system into
the system established by this chapter.
(2) Nothing in this chapter nor any action taken pursuant thereto
shall reduce or impair the benefits which employees who are receiving
benefits from a retirement system integrated with the system provided by
this chapter would have received had the integration not been effected.
(3) A retirement plan which has been adopted by an association
organized pursuant to the provisions of ORS chapter 239 (1997 Edition),
prior to April 8, 1953, and which exists on April 8, 1953, may be
integrated into the retirement system established by this chapter in the
manner prescribed in this subsection and not otherwise:
(a) A proposed form of contract setting forth all the terms,
conditions and provisions of the integration shall be prepared by, and
adopted by a majority vote of, the board of trustees of the association
and approved by the board of directors of the school district in which
the association is organized.
(b) The proposed contract so adopted and approved shall be
submitted to a vote of the active members of the association. In
submitting a proposed contract, an association shall follow the procedure
provided in its bylaws for the promulgation and adoption of bylaws.
(c) Adoption by the membership of an association of a proposed
contract of integration shall be by an affirmative vote of not less than
two-thirds of the active members of the association at the time of the
election.
(d) The proposed contract so formulated, approved and adopted shall
be submitted to the retirement board created by ORS 238.630 for
acceptance or rejection. In the event that the proposed contract is
accepted by the board, then the integration shall proceed in accordance
with the provisions of the contract.
(e) No contract of integration shall in any way alter, impair or
adversely affect any rights, benefits or privileges which have vested
under the provisions of law in a member of an association by virtue of
retirement, either on account of disability or on account of having
attained the retirement age, prior to the effective date of the contract
of integration.
(f) A contract of integration formulated, approved and adopted as
provided in this subsection shall contain provisions whereby there will
be provided to each active member of the association who becomes a member
of the retirement system created by this chapter pursuant to a contract
of integration, retirement benefits, in addition to the retirement
benefits accruing for subsequent service under the Public Employes’
Retirement Act of 1953, determined in compliance with sound actuarial
practice and with the findings of an accredited actuary on the basis of
the reserves of the members at the time of the integration.
(g) A contract of integration shall likewise provide that any
active member of an association which integrates with the retirement
system may elect at the time of the integration as to whether the member
shall obtain a refund of the amount standing to the credit of the member
on the books of the association at the time of the integration. In the
event that a member so elects, then the amount standing to the credit of
the member shall be refunded and the additional benefits provided under
paragraph (f) of this subsection shall not be available to the member to
whom the refund is made.
(4) If a public employer applies for inclusion of a class of
employees under ORS 238.035, application for integration under subsection
(1) of this section shall be made by the employer and by two-thirds of
the class of employees who are to become members of the system, or if the
class designated under ORS 238.035 is covered by a collective bargaining
agreement, application for the class shall be approved under the terms of
the collective bargaining agreement.
(5) If a public employer entering into an integration contract
under the provisions of this section continues to maintain the public
employer’s previously established system for the purpose of providing
benefits to some or all of the employer’s employees who become members of
the system under the integration contract, the board may allow an
employee or alternate payee to waive the right to receive all other
benefits that would otherwise be paid under this chapter if:
(a) The employee or alternate payee elects to receive a refund of
accumulated member contributions along with interest credited to those
contributions at the time of refund; and
(b) The employer certifies to the board that the waiver of benefits
other than the refund of member contributions is required as a condition
of the employee’s or alternate payee’s receipt of benefits under the
previously established system.
(6) A waiver under subsection (5) of this section must be made
before an employee’s effective date of retirement or the effective date
of an alternative payee’s election to commence receiving payments. The
waiver is irrevocable as to the benefits waived and applies to all future
payment of those benefits that would otherwise be made to the employee,
the alternate payee or the beneficiaries of the employee or alternate
payee. The provisions of subsection (5) of this section apply only to:
(a) Employees of the public employer who become members of the
system under the provisions of the integration contract and who are
participants in the previously established system of the public employer
at the time the integration contract goes into effect; and
(b) Alternate payees of employees described in paragraph (a) of
this subsection. [Formerly 237.051; 1997 c.551 §1; 1999 c.130 §6](1) The school district, which is or expects to become a party
to a contract of integration described in ORS 238.680 (3), may provide
for payment of all or any part of its unfunded obligation for previous
service costs with respect to the association by any one or a combination
of the following methods:
(a) By agreeing to pay such portion of the obligation to the Public
Employees Retirement System over a period of not to exceed 40 years,
together with an appropriate rate of interest as determined by the Public
Employees Retirement Board and the board of directors of the school
district.
(b) By issuing one or more series of general obligation bonds for
the estimated amount of such portion of the obligation and paying it from
the proceeds or interest thereon. Except as provided in subsection (2) of
this section, the initial authorization for the original issue of such
bonds shall require approval of the electors of the district and shall
otherwise conform to all requirements of law governing the issuance,
sale, redemption, refunding and refinancing of bonds by the school
district, the retention, segregation and use of bond proceeds and the
levy of taxes for their payment.
(c) By issuing other notes, contracts or evidences of indebtedness
for the estimated amount of such portion of the obligation and paying it
therewith or from the proceeds or interest thereon. The interest rate on
such notes, contracts or evidences of indebtedness shall be such as the
board of directors of the school district finds is reasonably competitive
with interest rates on bonds which could be issued pursuant to paragraph
(b) of this subsection.
(d) By contracting with an insurance company authorized to write
annuity contracts in this state to assume and pay the pensions of
retired, active or former members of the association.
(2) Such agreement, bonds, notes, contracts or evidences of
indebtedness, or any part of them, may be issued or entered into without
an election, but in such case:
(a) To the extent the principal and interest on such agreement,
bonds, notes, contracts or evidences of indebtedness are paid from
operating taxes within the district’s permanent tax rate limit, the
school district shall each year divide its operating taxes into two
portions, both within the district’s permanent tax rate limit, and one of
such portions shall be the amount used to pay the principal and interest
on such agreement, bonds, notes, contracts or evidences of indebtedness
for such year and the proceeds of such portion shall not be used for
other purposes; and
(b) To the extent the principal and interest on such agreement,
bonds, notes, contracts or evidences of indebtedness are paid from
revenues other than operating tax proceeds, the school district need not
divide its levy as provided in paragraph (a) of this subsection and the
principal and interest may be paid out of such other revenues.
(3) Part or all of the agreement, bonds, notes, contracts or
evidences of indebtedness authorized by this section may be issued prior
to or after the execution of the contract of integration. The validity or
enforceability thereof shall not be affected by the terms of the contract
of integration or by whether operating taxes are properly apportioned as
provided in subsection (2)(a) of this section. [Formerly 237.053; 1997
c.541 §359; 2001 c.945 §81]
(1) A retirement plan which has been adopted by a mass transit district
organized under ORS 267.010 to 267.390 situated in a standard
metropolitan statistical area with a population exceeding 400,000, may be
integrated with, or the district may become a participant in, the Public
Employees Retirement System in the manner prescribed in subsection (2) of
this section.
(2)(a) A proposed form of contract setting forth all the terms,
conditions and provisions of the integration or participation shall be a
mandatory subject of bargaining subject to the provisions of ORS 243.650
to 243.782.
(b) The proposed contract shall be submitted to a vote of the
employees of the mass transit district, or the members of the affected
bargaining unit of the applicable labor organization, and the board of
directors of the mass transit district. In submitting a proposed contract
to its members, the labor organization shall follow the procedure
provided in its bylaws for the promulgation and adoption of bylaws.
(c) Adoption by the employees or members of the affected bargaining
unit of the applicable labor organization of the proposed contract of
integration or participation shall be by an affirmative vote of not less
than two-thirds of the affected employees or active members of the
affected bargaining unit of the applicable labor organization at the time
of the election.
(d) The proposed contract so formulated, approved and adopted shall
be submitted to the Public Employees Retirement Board. The board may
exercise its authority to negotiate and enter into a contract with the
mass transit district that would accomplish the integration or
participation without adversely affecting the current operational and
capital requirements of the mass transit district. The board shall not
enter into any contract that prevents those adverse effects by adjusting
the level of benefits received by any of the employees of the mass
transit district.
(e) No contract of prospective participation shall in any way
alter, impair or adversely affect any rights, benefits or privileges
which have vested under the provisions of law or collective bargaining
agreement in an employee of a mass transit district by virtue of
retirement, either on account of disability or on account of having
attained the retirement age, prior to the effective date of the contract
of integration or participation.
(f) When a public employer enters into a contract with the board
under this section, the public employer shall agree to eventually extend
coverage under this chapter to all eligible employees of the employer
through subsequent contracts with the board.
(3) For the purposes of this section, “standard metropolitan
statistical area” has that meaning given in ORS 267.010. [Formerly
237.037](Bonding of Local Government Pension Liabilities) As used in ORS
238.692 to 238.698:
(1) “Governmental unit” has the meaning given that term in ORS
288.150, and includes an agency created by two or more political
subdivisions pursuant to ORS 190.003 to 190.130 or 190.265.
(2) “Pension liability” means:
(a) Monetary obligations of a participating public employer for
which the employer is or will be required to transmit amounts to the
Public Employees Retirement Board under the provisions of ORS 238.225,
including any obligations arising out of an integration contract under
ORS 238.680, or any other liability of a governmental unit that is
attributable to an obligation to pay pensions or other retirement
benefits to officers or employees of the governmental unit, whether
active or retired; and
(b) Monetary obligations of a public employer arising out of an
integration contract under ORS 238.680 for which the employer is required
to transmit amounts to the Public Employees Retirement Board.
(3) “State agency” means any officer, board, commission,
department, division or institution in the administrative branch of state
government. [2001 c.945 §23](1) The
Legislative Assembly finds that authorizing issuance of limited tax bonds
or revenue bonds to finance pension liabilities may reduce the cost of
public pensions to taxpayers and that the reduction of those costs to
taxpayers is a matter of statewide concern.
(2) Notwithstanding the limitation on indebtedness in ORS 287.053
or any other limitation on indebtedness or borrowing under state or local
law, for the purpose of obtaining funds to pay the pension liability of a
governmental unit, the governing body of a governmental unit may
authorize and cause the issuance of limited tax bonds as defined in ORS
288.150, revenue bonds authorized by charter or pursuant to ORS 288.805
to 288.945, or any combination of those bonds.
(3) The governing body of a governmental unit may pledge the full
faith and credit and taxing power of the governmental unit to the payment
of the principal and interest on bonds issued under ORS 238.692 to
238.698, and any premium on those bonds.
(4) Except as otherwise provided in this section, limited tax bonds
authorized under this section must be issued in the manner prescribed by
the applicable provisions of ORS chapters 287 and 288 for the issuance of
limited tax bonds.
(5) Unless the charter of a county provides a lower limit, a county
may issue limited tax bonds to finance pension liabilities in an amount
that does not exceed five percent of the real market value of the taxable
property within the boundaries of the county.
(6) Revenue bonds authorized under this section need not comply
with the procedure specified in ORS 288.815.
(7) A governmental unit that issues limited tax bonds or revenue
bonds under this section may also issue limited tax bonds or revenue
bonds for the purpose of refunding the bonds.
(8) A governmental unit may enter into indentures or other
agreements with trustees or escrow agents for the issuance,
administration or payment of bonds authorized under this section. [2001
c.945 §24; 2003 c.746 §8; 2005 c.443 §2](1) Governmental units may enter into
intergovernmental agreements for the collective issuance, administration
or payment of bonds authorized under ORS 238.694. An agreement for
collective issuance, administration or payment of bonds under this
subsection may provide for the contribution and pooling of the assets of
the governmental units as security for the bonds, and may make provisions
for such other matters as the governmental units determine convenient.
Notwithstanding ORS 190.080, any intergovernmental entity created by
governmental units under this section shall have the power to issue bonds
as described in ORS 238.694. The bonds may be issued and sold as parity
bonds, issued and sold individually or issued and sold in such
combinations or forms as determined to be appropriate by the governmental
units.
(2) Proceeds of bonds sold under an intergovernmental agreement
entered into under this section, and any other funds or assets of a
governmental unit, together with interest or earnings on the proceeds,
funds and assets, may be consolidated into one or more funds or accounts
and may be pledged to the holders of the bonds.
(3) Governmental units may enter into indentures or other
agreements with trustees or escrow agents for the issuance,
administration or payment of bonds pursuant to an intergovernmental
agreement entered into under this section.
(4) The State Treasurer may cooperate with, assist and provide
recommendations to governmental units, and any intergovernmental entity
created by governmental units under this section, relating to all matters
involved in the issuance, administration and payment of bonds. Any
expenses incurred by the State Treasurer in providing assistance to
governmental units under this section may be paid as an administrative
expense of the governmental unit from the proceeds of the bonds issued
with the assistance of the State Treasurer. [2001 c.945 §25] (1) A governmental unit, or a
group of governmental units that enter into an intergovernmental
agreement under ORS 238.695, may establish a debt service trust fund for
the purpose of paying the principal and interest on bonds issued under
ORS 238.692 to 238.698. The trustee of the debt service trust fund shall
hold the moneys paid into the trust fund solely for the purpose of paying
the principal and interest on bonds issued under ORS 238.692 to 238.698
and for paying the administrative costs of the trust fund.
(2) Moneys held in a debt service trust fund are subject to the
limitations on investment imposed by ORS 294.033 and 294.035.
(3) A governmental unit, or a group of governmental units that
enter into an intergovernmental agreement under ORS 238.695, that has
established a debt service trust fund under this section may not divert
or pledge any moneys paid into the trust fund for any purpose other than
the purpose specified in subsection (1) of this section until the total
amount of principal and interest on bonds issued by the governmental unit
or under the intergovernmental agreement, and any premium on those bonds,
is paid. [2001 c.945 §26] (1) A governmental unit, or a
group of governmental units that enter into an intergovernmental
agreement under ORS 238.695, that receives funds from any state agency
may enter into a funds diversion agreement with the state agency for the
purpose of paying the principal and interest on bonds issued under ORS
238.692 to 238.698, and any premium on those bonds. A diversion agreement
entered into under this section must provide that:
(a) Moneys payable to the governmental unit or governmental units
by the state agency from appropriations from the General Fund or any
other source of moneys will be paid directly to a debt service trust fund
established under ORS 238.696 in amounts equal to the debt service owed
by the governmental unit or governmental units;
(b) The state agency must pay the amounts required under the funds
diversion agreement to the debt service trust fund established under ORS
238.696 pursuant to the schedule specified in the agreement before paying
any other amounts to the governmental unit or governmental units;
(c) The agreement is irrevocable; and
(d) The agreement will remain in effect until all the bonds issued
by the governmental unit or under the intergovernmental agreement are
mature or redeemed.
(2) If for any reason a state agency that has entered into a funds
diversion agreement is not able to pay moneys to a debt service trust
fund as contemplated by the agreement, the state agency shall give notice
to the governmental unit or governmental units within 30 days after the
state agency is aware that the moneys will not be paid.
(3) Nothing in this section, or in any funds diversion agreement
entered into by a state agency under this section, may in any manner
obligate the state or any state agency:
(a) To pay any amount to a governmental unit that the governmental
unit is not otherwise entitled to receive under law; or
(b) To pay any principal or interest on bonds issued under ORS
238.692 to 238.698. [2001 c.945 §27](Enforcement)
All provisions of ORS 238.655, 238.705, 238.710 and 238.715 hereby are
made applicable for enforcement of the requirements of this chapter and
ORS chapter 238A. [Formerly 237.300; 1997 c.249 §71; 2003 c.733 §64](1) All public employers that are members of the system shall
promptly and regularly remit to the Public Employees Retirement Board all
contributions required of them by law and furnish all reports required by
the board.
(2) Any public employer delinquent in remitting contributions shall
be charged interest on the total amount of contributions due from it at
the rate of one percent per month or fraction thereof during which the
public employer is delinquent. Interest so paid shall be deposited in the
Public Employees Retirement Fund and shall be used by the board in paying
administrative expenses of the system.
(3) If any state officer or agency fails to remit any contribution
or other obligation required by law, the Public Employees Retirement
Board, within 30 days after the date the request therefor has been made
by it by registered mail or by certified mail with return receipt, may
certify to the Oregon Department of Administrative Services the fact of
such failure and the amount of the delinquent contribution or obligation,
together with its request that such amount be set over from funds of the
delinquent officer or agency to the credit of the Public Employees
Retirement Fund. A copy of such certification and request shall be
furnished the delinquent officer or agency. The department shall, within
10 days after receipt of the request of the board, approve the payment of
such amount by the delinquent officer or agency from funds allocated to
the officer or agency for the current biennium and draw a warrant for
payment of the amount of the contribution or obligation due out of funds
in the State Treasury allocated to the use of the delinquent officer or
agency.
(4) If any public employer other than a state agency fails to remit
any contribution or pay any other obligation due under this chapter or
ORS chapter 238A, the board may certify to the department the fact of
such failure. Upon receipt of the certification the department shall
withhold payment to the public employer of any revenues or funds in the
State Treasury in which the public employer is entitled by law to share
and which have been apportioned to the public employer until the board
certifies to the department that the failure has been remedied. The board
shall send a copy of each certification it makes under this subsection to
the public employer affected.
(5) Any public employer delinquent in making reports or supplying
information concerning its employees in the manner required by the board
shall be charged a penalty of the lesser of $2,000 or one percent of the
total annual contributions, for each month or fraction thereof during
which the employer is delinquent. In addition, the board may send an
auditor to the office of the employer to examine its records and to
obtain the necessary reports, the entire cost of such audit to be paid by
the delinquent employer. Penalties and other charges so paid shall be
used by the board in paying administrative expenses of the system.
[Formerly 237.301; 2003 c.733 §65] In addition
to the remedies otherwise provided by ORS 238.705, the board may, by
petition in usual form, apply to the circuit court for the county in
which is located the public employer concerned, or the principal office
or place of business of the public employer, for, and if warranted, to
have issued, writs of mandamus to compel the public employer to supply to
the board a true and complete list and employment records of the
employer’s employees and all information concerning the employees that
reasonably may be required and sought by the board in the petition. The
writs, among other things, shall direct the defendant to make
contributions to the retirement fund on account of the defendant’s
employees as may appear, from records and information concerning the
defendant’s employees, to be required by law. Either or both parties
thereby aggrieved may appeal to the Court of Appeals from, or from any
part of, the judgment of the circuit court in the proceeding, as in
ordinary mandamus proceedings. [Formerly 237.311; 2005 c.22 §181] (1) If the Public
Employees Retirement Board determines that a member of the Public
Employees Retirement System or any other person receiving a monthly
payment from the Public Employees Retirement Fund has received any amount
in excess of the amounts that the member or other person is entitled to
under this chapter and ORS chapter 238A, the board may recover the
overpayment or other improperly made payment by:
(a) Reducing the monthly payment to the member or other person for
as many months as may be determined by the board to be necessary to
recover the overpayment or other improperly made payment; or
(b) Reducing the monthly payment to the member or other person by
an amount actuarially determined to be adequate to recover the
overpayment or other improperly made payment during the period during
which the monthly payment will be made to the member or other person.
(2)(a) Any person who receives a payment from the Public Employees
Retirement Fund and who is not entitled to receive that payment,
including a member of the system who receives an overpayment, holds the
improperly made payment in trust subject to the board’s recovery of that
payment under this section or by a civil action or other proceeding.
(b) The board may recover an improperly made payment in the manner
provided by subsection (1) of this section from any person who receives
an improperly made payment from the fund and who subsequently becomes
entitled to receive a monthly payment from the fund.
(c) The board may recover an improperly made payment by reducing
any lump sum payment in the amount necessary to recover the improperly
made payment if a person who receives an improperly made payment from the
fund subsequently becomes entitled to receive a lump sum payment from the
fund.
(3) Unless the member or other person receiving a monthly payment
from the fund authorizes a greater reduction, the board may not reduce
the monthly payment made to a member or other person under the provisions
of subsection (1) of this section by an amount that is equal to more than
10 percent of the monthly payment.
(4) Before reducing a benefit to recover an overpayment or
erroneous payment, or pursuing any other collection action under this
section, the board shall give notice of the overpayment or erroneous
payment to the person who received the payment. The notice shall describe
the manner in which the person who received the payment may appeal the
board’s determination that an overpayment or erroneous payment was made,
the action the board may take if the person does not respond to the
notice and the authority of the board to assess interest, penalties or
costs of collection.
(5) If the board determines that an overpayment or erroneous
payment was not caused by the system or by a participating public
employer, the board may assess interest in an amount equal to one percent
per month on the balance of the improperly made payment until the payment
is fully recovered. The board may also assess to the member or other
person all costs incurred by the system in recovering the payment,
including attorney fees. Interest and costs may be collected in the
manner prescribed in subsections (1) and (2) of this section. The board
may waive the interest and costs on an overpayment or other improperly
made payment for good cause shown.
(6) Notwithstanding ORS 293.240, the board may waive the recovery
of any payment or payments made to a person who was not entitled to
receive the payment or payments if the total amount of the overpayment or
other improperly made payments is less than $50.
(7) A payment made to a person from the fund may not be recovered
by the board unless within six years after the date that the payment was
made the board has commenced proceedings to recover the payment. For the
purposes of subsection (1) of this section, the board shall be considered
to have commenced proceedings to recover the payment upon mailing of
notice to the person receiving a monthly payment that the board has
determined that an overpayment or other improperly made payment has been
made.
(8) The remedies authorized under this section are supplemental to
any other remedies that may be available to the board for recovery of
amounts incorrectly paid from the fund to members of the system or other
persons.
(9) The board shall adopt rules establishing the procedures to be
followed by the board in recovering overpayments and erroneous payments
under this section. [Formerly 237.312; 2003 c.105 §6; 2003 c.733 §66](Short Title) This chapter and ORS chapter 238A shall be
known as the Public Employes’ Retirement Act of 1953. [Formerly 237.001;
2003 c.733 §67]
_______________
|
