71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 4045
House Bill 3406
Sponsored by Representative DEVLIN; Representatives GARDNER,
HILL, STARR
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Allows certain members of Public Employees Retirement System to
withdraw member's employee account in system and matching amount
contributed by employer. Terminates all rights of member upon
payment of withdrawn amounts except as specified.
Allows Public Employees Retirement Board by rule to treat two
or more local government public employers as single employer for
purposes of determining employer contributions to Public
Employees Retirement System. Requires election by public
employers.
Directs Oregon Investment Council to invest certain assets of
Public Employees Retirement Fund that are attributable to
employer contributions in same investments used for Variable
Annuity Account.
Requires crediting of earnings on Public Employees Retirement
Fund to public employer at same time that earnings are credited
to employee's account.
Allows local governments to issue bonds for purpose of paying
public employer's pension liability.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
amending ORS 238.078, 238.115, 238.225 and 238.305 and section
3, chapter 180, Oregon Laws 1997; and repealing ORS 238.230.
Be It Enacted by the People of the State of Oregon:
{ +
LUMP SUM WITHDRAWAL OF EMPLOYEE ACCOUNT + }
{ +
AND MATCHING EMPLOYER AMOUNT + }
SECTION 1. ORS 238.305 is amended to read:
238.305. (1) At any time after establishing membership, but
within 60 days after the date of the first benefit payment,
{ - a person who is - } a member of the system 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 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, 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 prior service contributions of the employer or,
in case the member is an employee of a school district, by a
uniform rate of contribution by all school districts; 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
{ - (5) - } { + (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
{ - (5) - } { + (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 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 account of a member at the time of
death and as if the beneficiary had been a member.
(2) At any time after establishing membership, but within 60
days after the date of the first benefit payment, { - a person
who is - } a member of the system 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 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) At any time after establishing membership, but within
60 days after the date of the first benefit payment, a member of
the system may elect in lieu of the allowance described in 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 refund;
(b) An amount that matches the amount of accumulated
contributions by the member and interest thereon, provided by the
contributions of the member's 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. + }
{ - (3) - } { + (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
employee account of the member in the Public Employees Retirement
Fund as of the effective date of retirement. + }
{ - (a) - } { + (B) + } The installment payments shall be
paid once each year for the number of consecutive years equal to
the number of installment payments elected.
{ - (b) - } { + (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 { - individual - }
{ + employee + } account of the member in the { - Public
Employees Retirement - } fund.
{ - (c) - } { + (D) + } The { - individual - }
{ + employee + } 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 account.
{ - (d) - } { + (E) + } A yearly installment payment shall
be paid on the anniversary of the date of the first installment
payment.
{ - (e) - } { + (F) + } The member is considered to have
elected to transfer any balance in the account of the member in
the Variable Annuity Account to the { - individual - }
{ + employee + } account of the member in the fund.
{ - (f) - } { + (G) + } If the member dies before payment
of all installment payments, the unrefunded balance in the
{ - individual - } { + employee + } account of the member in
the fund plus interest to date of disbursement is payable as
provided in ORS 238.390 (5).
{ + (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 the installment payments under the
provisions of this subsection, all rights of the member in the
system shall terminate, except as provided in paragraph (c) of
this subsection, upon the payment of the amounts provided for in
subsection (3) of this section. If a member elects to receive the
refund service retirement benefit described in subsection (3) of
this section and also elects to receive the installment payments
under the provisions of this subsection, all rights of the member
in the system shall terminate, except as provided in paragraph
(c) of this subsection, upon the making of the first payment.
(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. + }
{ - (4) - } { + (5) + } The designation of a beneficiary,
the election of an option or any other election or designation
under subsection (1), (2) { + , + } { - or - } (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.
{ - (5) - } { + (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 shall be in a form approved by the
board. Payment under Option 1 shall be effective for months
beginning on or after the date the board receives the election.
{ - (6) - } { + (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.
{ - (7) - } { + (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.
{ - (8) - } { + (9) + } The service retirement allowance
provided in subsection { - (6) or - } (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.
{ - (9) - } { + (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.
SECTION 2. Section 3, chapter 180, Oregon Laws 1997, is amended
to read:
{ + Sec. 3. + } (1) If on { - the effective date of this
1997 Act - } { + October 4, 1997, + } a retired member
{ - is - } { + was + } eligible for the service retirement
allowance provided by ORS 238.305 { - (6) or - } (7) { + or
(8) + } { - , as amended by section 1 of this 1997 Act, - }
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 the effective date of this 1997 Act - } ; and
(b) The service retirement allowance of the retired member
under ORS 238.305 { - (6) or - } (7) { + or (8) + } { - ,
as amended by section 1 of this 1997 Act, - } 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 the effective date of this
1997 Act, - } 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 { - of this 1997 Act - }
, { + 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 { - (6) - } { + (7) + },
{ - as amended by section 1 of this 1997 Act, - } or the
increased life pension or pensions under ORS 238.305
{ - (7) - } { + (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.
SECTION 3. ORS 238.078 is amended to read:
238.078. (1)(a) Any member of the system who is retired at any
time after having reached earliest service retirement age, and
who has been retired for more than six consecutive calendar
months, may be reemployed by any public employer even though such
retired member has been receiving retirement benefits.
(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) Any member of the system who is retired at any time after
having reached earliest service retirement age, and who has been
retired for less than six consecutive calendar months, may be
reemployed by any public employer even though such retired member
has been receiving retirement benefits, only upon immediate
repayment in a lump sum by the member of the amount of retirement
benefits drawn, after which repayment the account of the member
shall be reestablished just as it was at the time of earlier
retirement.
(3) If a member of the system who retired before August 21,
1981, is reemployed, as provided in 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).
SECTION 4. ORS 238.115 is amended to read:
238.115. (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 account of
the employee in the fund, 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 employee:
(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 account
of the employee in the fund 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 employee. The interest shall
be computed at the annual rate of 7.5 percent.
(b) If an employee 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) An employee 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) An employee who is a member of the system, 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 employee, before the effective date of
retirement of the employee:
(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 account
of the employee in the fund 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 account of the
employee in the fund 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 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 account
of the member in the Public Employees Retirement Fund 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 member 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.
SECTION 5. { + The amendments to ORS 238.305 by section 1 of
this 2001 Act apply only to members of the Public Employees
Retirement System whose effective date of retirement is on or
after the effective date of this 2001 Act. + }
{ +
POOLING OF LOCAL GOVERNMENT EMPLOYERS + }
SECTION 6. ORS 238.225 is amended to read:
238.225. (1) A public employer that is participating in the
{ + Public Employees Retirement + } System shall, at intervals
designated by the { + Public Employees Retirement + }Board,
transmit to { - it - } { + the board + } such amounts as are
actuarially computed to be necessary, as determined by the board,
to adequately provide the benefits to be provided by the
contributions of the employer under this chapter, including such
amounts as are actuarially determined to be necessary to amortize
within not less than 30 years after December 31, 1968, all
liabilities estimated by the actuary to accrue to the system on
account of the pensions to be provided by the contributions of
the employer, except as otherwise provided in this section.
{ - For the purpose of such actuarial computation only, the
school districts of the state shall be regarded as constituting
one employer. - }
(2) In addition each such employer shall transmit to the board,
at intervals which it designates, such amounts as are actuarially
determined, on the basis of an amount per month equal to $6 for
each year of prior service or major fraction thereof for a period
not exceeding 20 years for employees who last retired prior to
April 8, 1953, and prior to becoming eligible for participation
in the Old Age, Survivors and Disability Insurance program and on
the basis of an amount per month equal to $4 for each year of
prior service or major fraction thereof for a period not
exceeding 20 years for all other employees, except as provided in
subsection (4) of this section, to be necessary to amortize
within not less than 30 years after the employer commences
participating in the system or after December 31, 1968, whichever
occurs last, all liabilities estimated by the actuary to accrue
to the system on account of service by the employer's employees
prior to the time it commences participating in the system, and
all prior service pension included in retirement allowances shall
be computed on the basis hereby established; provided, however,
that a political subdivision other than a school district may
elect not to alter the basis of $2.50 or $4 per month established
by its agreement made when it began to participate in the system
established by chapter 401, Oregon Laws 1945, as amended. The
1961 amendment to this subsection does not apply with respect to
employees receiving prior service pension on the basis of $6 per
month for each year of prior service credit allowed under the
amendment to this subsection by section 3, chapter 623, Oregon
Laws 1959.
(3) A political subdivision which had withdrawn prior to
January 1, 1956, from the Public Employees Retirement System may
elect to increase the benefits payable for prior service to it
from $2.50 to $4 per month for each year of prior service
allowed; provided, that the administrative head of the withdrawn
employer enters into an agreement with the Public Employees
Retirement Board, binding such political subdivision to (a)
transmit to the board, as hereinabove provided, payments
including the cost of increased benefits, (b) pay for such
increase of benefits for all its current employees with prior
service credit who have maintained membership in the Public
Employees Retirement System and for all its past employees who
have maintained such membership and who have prior service credit
for service to such withdrawn public employer, and (c) pay for
such increase of benefits for all annuitants who on the effective
date of the agreement are receiving payment for prior service to
such employer, the increase to be effective from and after the
date of executing the agreement. An agreement so executed shall
be irrevocable by the political subdivision, which shall be
liable thereon and subject to legal action therefor by the board
until all obligations of such agreement are fully discharged.
(4) Subject to the rules of the board and except as this
chapter otherwise provides, credit shall be granted:
(a) An employee of the state who is a member of the system for
continuous service, for a period not exceeding 20 years, to the
state prior to July 1, 1946.
(b) A school district employee who is a member of the system
for continuous service to all school districts of the state as
provided in subsection (6) of this section.
(c) An employee of a public employer other than the state or a
school district who is a member of the system for continuous
service, on the basis of the formula agreed upon as provided in
this subsection, to that public employer prior to the time it
commences to participate in the system.
Within 60 days after an employer becomes a participant in the
system the board shall issue the member entitled to such credit a
certificate of the aggregate of such credit to which the member
is entitled. The certificate shall be final unless the board, for
cause upon the motion of the member or board, modifies the
certificate. The board may arrange with a political subdivision
other than a school district, or with an agency created by two or
more such political subdivisions to provide themselves
governmental services, for determining, on the basis of a formula
agreed upon by the board and the governing body of the
subdivision or agency, the years of credit which an employee of
the subdivision or agency is to receive for service to it prior
to the time that it commences to participate in the system,
without limitation as to the number of years of such prior
service, and any such employee may be given credit for
accumulated seasonal employment for such subdivision or agency if
the employee has become a regular employee thereof. The
amendments to this subsection and to subsection (5) of this
section by section 5, chapter 640, Oregon Laws 1969, shall be
deemed to have been in effect since the inception of the system.
(5) When the formula referred to in subsection (4) of this
section has been agreed upon and the years of prior service
credit have been determined, a political subdivision or agency
created by two or more political subdivisions to provide
themselves governmental services which desires to increase such
credit to its employees may apply to the retirement board for a
revision of the formula within the limitations of this chapter.
If the board agrees to such revision, the cost incurred in
reviewing the records of such employer's employees and making any
actuarial computation required to effect an increase of prior
service credit shall be borne by the political subdivision or
agency.
(6) Each school district employee who is a member of the system
shall be granted full credit, for a period not exceeding 20
years, for continuous service to all school districts of the
state prior to July 1, 1946. Each school district shall transmit
to the board, at intervals which it designates, such amounts as
are actuarially determined, on the basis stated in subsection (2)
of this section, to be necessary to amortize, within not less
than 30 years after December 31, 1968, all liabilities estimated
by the actuary to accrue to the system on account of service by
school district employees prior to July 1, 1946.
{ + (7) For the purpose of the actuarial computation required
under subsection (1) of this section:
(a) The school districts of the state shall be treated as a
single employer; and
(b) The community college districts together with the state
shall be treated as a single employer.
(8) For the purpose of the actuarial computation required under
subsection (1) of this section, the board by rule may treat two
or more participating public employers as a single employer if
the public employers elect to be so treated. The provisions of
this subsection apply only to participating public employers
other than the state, school districts and community college
districts. The board may establish one or more groups of
participating public employers under the provisions of this
subsection. Upon grouping two or more participating public
employers pursuant to this subsection:
(a) The board may add a participating public employer to the
group at any time if the public employer elects to be added to
the group;
(b) The board may rescind the group, or remove any public
employer from the group; and
(c) Any public employer that has elected to be part of the
group may not thereafter withdraw from the group.
(9) The computation of the contributions of participating
public employers treated as a single employer under the
provisions of subsection (8) of this section shall be based only
on the liabilities of those employers that are incurred after the
employers become members of the group. The board shall separately
compute the contributions of those employers for the liabilities
incurred by the employers before the employers became members of
the group.
(10) The board by rule shall establish criteria for grouping
two or more participating public employers under subsection (8)
of this section, and for adding employers to the group. + }
SECTION 7. { + ORS 238.230 is repealed. + }
{ +
EMPLOYER PARTICIPATION IN + }
{ +
VARIABLE ANNUITY ACCOUNT INVESTMENTS + }
SECTION 8. { + Section 9 of this 2001 Act is added to and made
a part of ORS chapter 238. + }
SECTION 9. { + (1) The Public Employees Retirement Board, on a
regular basis, shall determine for each participating public
employer the total amount of all member accounts in the Variable
Annuity Account held by active or inactive members who are or
were employed by the employer. The board shall provide the total
amount for each employer so determined to the Oregon Investment
Council. Subject to the investment standard established in ORS
293.726, the Oregon Investment Council shall invest moneys equal
to the amounts specified by the board in the same fund or funds
in which Variable Annuity Account moneys are invested.
(2) The moneys invested by the Oregon Investment Council under
this section shall be moneys of the Public Employees Retirement
Fund that are assets attributable to employer contributions and
earnings on those contributions, but are not assets of the
reserves established under ORS 238.255 or assets of member
accounts maintained under ORS 238.250 or 238.260. The board shall
credit or charge earnings and losses produced by investments made
under this section to each public employer, based on the amount
determined for the employer under subsection (1) of this section,
for the purpose of matching earnings credited to the Variable
Annuity Account on behalf of the active and inactive members who
are or were employed by the employer.
(3) Investments authorized under this section are not subject
to the limitations on investment imposed by ORS 293.726 (6).
(4) Nothing in this section shall be construed to convey to any
participating public employer any proprietary interest in the
Public Employees Retirement Fund or in the contributions made to
the fund by that employer. + }
{ +
CREDITING OF EARNINGS TO EMPLOYERS + }
{ +
UPON DEATH OR RETIREMENT OF MEMBER + }
SECTION 10. { + Section 11 of this 2001 Act is added to and
made a part of ORS chapter 238. + }
SECTION 11. { + 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. + }
{ +
BONDING OF LOCAL GOVERNMENT + }
{ +
UNFUNDED PERS LIABILITIES + }
SECTION 12. { + Sections 13 and 14 of this 2001 Act are added
to and made a part of ORS chapter 238. + }
SECTION 13. { + (1) As used in this section and section 14 of
this 2001 Act:
(a) 'Governmental unit' has the meaning given that term in ORS
288.150.
(b) 'Pension liability' means those amounts required to be
transmitted to the Public Employees Retirement Board by a
participating public employer under the provisions of ORS
238.225.
(2) 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.
(3) Notwithstanding any 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.
(4) Limited tax bonds authorized under this section must be
issued in the manner prescribed by ORS chapters 287 and 288 for
the issuance of limited tax bonds. A county may not issue limited
tax bonds under this section for an amount that exceeds five
percent of the real market value of the taxable property within
the boundaries of the county.
(5) Revenue bonds issued under this section need not be issued
pursuant to the procedure specified in ORS 288.815.
(6) 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.
(7) A governmental unit may enter into agreements with trustees
or escrow agents for the issuance, administration or payment of
bonds authorized under this section.
(8) The state may not issue bonds under the provisions of this
section. + }
SECTION 14. { + (1) Governmental units may enter into
intergovernmental agreements for the collective issuance,
administration or payment of bonds authorized under section 13 of
this 2001 Act. 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
section 13 of this 2001 Act. 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 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. + }
{ +
UNIT CAPTIONS + }
SECTION 15. { + The unit captions used in this 2001 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2001 Act. + }
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