71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to B-Eng. SB 134 (A to RC)
LC 1520/SB 134-B51
HOUSE AMENDMENTS TO
B-ENGROSSED SENATE BILL 134
(INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
By JOINT COMMITTEE ON WAYS AND MEANS
July 4
On page 1 of the printed B-engrossed bill, line 7, after '
238.585,' insert '238.630,'.
In line 10, after '238.370' insert 'and section 3, chapter ___,
Oregon Laws 2001 (Enrolled House Bill 2459)'.
On page 2, line 8, after the period insert '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.'.
In line 19, after the period insert '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.'.
On page 3, line 32, delete 'posi-' and insert 'zero'.
In line 33, delete 'tive'.
In line 40, restore the bracketed material and delete 'at
least'.
In line 41, delete the boldfaced material.
On page 4, line 3, delete 'unforeseen' and delete 'to ' and
insert 'for the following purposes'.
In line 4, after '(a)' insert 'To'.
In line 5, delete the semicolon and insert '. Reserves under
this paragraph may be funded only from the earnings on employer
contributions made under ORS 238.225.'.
In line 6, after '(b)' insert 'To'.
In line 7, delete '; and' and insert a period.
In line 8, after '(c)' insert 'To'.
Delete lines 34 through 45 and insert:
' { + SECTION 6. + } ORS 238.630 is amended to read:
' 238.630. (1) The governing authority of the system shall be a
board known as the Public Employees Retirement Board and
consisting of { - 11 - } { + 12 + } 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.
' (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, of managing the system.
' (3) The board:
' (a) Shall, at its first meeting each year, designate one of
its members to serve as chair of the board for the remainder of
the year and until a successor is designated and takes that
office;
' (b) Shall arrange for actuarial service for the system;
' (c) Shall employ a director;
' (d) 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;
' (e) 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;
' (f) 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;
' (g) Shall determine the actuarial equivalency of optional
forms of retirement allowances and establish from time to time
for that purpose the necessary actuarial factors, which shall
constitute a part of the system; and
' (h) 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)(h) 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.
' { + SECTION 6a. + } ORS 238.640 is amended to read:
' 238.640. (1) Members of the Public Employees Retirement Board
shall have the following qualifications:
' (a) Each member shall be a citizen of the United States and a
resident of this state for at least two years immediately
preceding appointment to the board.
' (b) { - Three - } { + Six members shall be + }public
members { - shall not have been employed by a public employer
during the two years immediately preceding appointment to the
board or be so employed throughout the term of appointment and
may not be retired members of the system - } { + who are not
members of the Public Employees Retirement System. At least three
of the public members must have experience in investing or
pension management + }.
' (c) { - Two members shall be employees of a participating
public employer - } { + One member shall be an employee of the
state + } in a management position at the time of appointment and
throughout the term of appointment. { - At the time of
appointment and throughout the term of appointment, one of the
two members appointed under this paragraph shall be employed by a
school district and one shall be employed by the state. - }
' (d) At the time of appointment and throughout the term of the
appointment, { - two members - } { + one member + } shall
hold an elective office, by election or appointment, in the
governing body of { - two different - } { + a + }
participating public { - employers - } { + employer + },
other than
{ - school districts or - } the state.
' (e) Four members shall be public employees, as defined in ORS
243.650, of a participating public employer and be in an
appropriate bargaining unit, as defined in ORS 243.650, having an
exclusive representative at the time of appointment and
throughout the term of appointment; but membership on the board
shall not itself affect the status of such a member as a public
employee as defined in ORS 243.650. At the time of appointment
and throughout the term of appointment, one of those four members
shall be engaged in teaching or other school activity, one shall
be a police officer or firefighter, one shall be an employee of
the state in a category other than teaching or other school
activity or police officer or firefighter, and one shall be an
employee of a political subdivision of the state in a category
other than teaching or other school activity or police officer or
firefighter.
' (f) In lieu of one member appointed with the qualifications
specified in paragraph (c), (d) or (e) of this subsection, one
member shall be a retired member of the system at the time of
appointment and throughout the term of the appointment.
' (g) The successor of a board member in any category shall
have the qualifications prescribed for that category.
' (2) Any vacancy on the board shall be filled by appointment
for the unexpired term of the member replaced.
' (3) Except as provided in subsection (4) 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.
' (4) 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.
' { + SECTION 7. + } { + (1) As soon as possible after the
effective date of this 2001 Act, the Governor shall appoint a
12th member of the Public Employees Retirement Board as required
by the amendments to ORS 238.640 by section 6a of this 2001 Act.
The public member so appointed by the Governor must have
experience in investing or pension management as required by ORS
238.640 (1)(b), as amended by section 6a of this 2001 Act.
' (2) The amendments to ORS 238.640 by section 6a of this 2001
Act do not affect the term of any member serving on the Public
Employees Retirement Board on the effective date of this 2001
Act. When a vacancy occurs after the effective date of this 2001
Act in the position of the member who is serving on the board
under ORS 238.640 (1)(c) (1999 Edition) and who is an employee of
a school district, whether the position becomes vacant by reason
of completion of the term or for any other reason, the Governor
shall appoint a public member with experience in investing or
pension management to serve on the board under ORS 238.640
(1)(b), as amended by section 6a of this 2001 Act. When the first
vacancy occurs after the effective date of this 2001 Act in a
position of a member serving on the board under ORS 238.640
(1)(d) (1999 Edition), whether the position becomes vacant by
reason of completion of the term or for any other reason, the
Governor shall appoint a public member with experience in
investing or pension management to serve on the board under ORS
238.640 (1)(b), as amended by section 6a of this 2001 Act. + } '
.
Delete page 5.
On page 6, delete line 1.
On page 15, after line 6, insert:
' { + SECTION 18. + } { + Nothing in this 2001 Act affects
any civil action that was commenced before the effective date of
this 2001 Act in which the Public Employees Retirement Board is a
defendant, or in any way operates to modify the meaning of the
provisions of ORS chapter 238 or to express legislative intent as
to the meaning of the provisions of ORS chapter 238, for the
purposes of actions taken by the Public Employees Retirement
Board before the effective date of this 2001 Act that are the
subject of the civil action. + } ' .
In line 7, delete 'Sections 18 and 19 were' and insert '
Section 19 was'.
On page 24, after line 12, insert:
' { + SECTION 29a. + } { + If House Bill 3406 becomes law,
section 29 of this 2001 Act (amending ORS 238.005) is repealed
and ORS 238.005, as amended by section 1, chapter ___, Oregon
Laws 2001 (Enrolled House Bill 3406), is amended to read: + }
' 238.005. For purposes of this chapter:
' (1) { - The term - } '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. + }
' { - (2) - } { + (3) + } { - The term - } 'Calendar
year' means 12 calendar months commencing on January 1 and ending
on December 31 following.
' { - (3) - } { + (4) + } { - The term - } '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.
' { - (4) - } { + (5) + } { - The term - } 'Creditable
service' means any period of time during which an active member
is being paid a salary by a participating public employer and
contributions are being made to the system either by or on behalf
of the member. 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. + }
' { - (5) - } { + (7) + } { - The term - } '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 as
defined in subsection (23) of this section, 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. + }
' { - (6) - } { + (10) + } { - The term - } 'Fiscal year'
means 12 calendar months commencing on July 1 and ending on June
30 following.
' { + (11) 'Fund' means the Public Employees Retirement
Fund. + }
' { - (7)(a) - } { + (12)(a) + } { - The term - }
'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 position that meets the
requirements of ORS 238.015 (4), and who has completed the
six-month period of service required by ORS 238.015.
' (c) 'Inactive member' means a member who is absent from the
service of all employers participating in the system, whose
membership has not been terminated in the manner described by ORS
238.095, and who is not retired for service or disability. '
Inactive member' includes a member who would be an active member
except that the person's only employment with a participating
public employer is in a position that does not meet the
requirements of ORS 238.015 (4).
' (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. + }
' { - (8) - } { + (15) + } { - The term - } '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 the MacLaren School, Hillcrest School of
Oregon and other 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. + }
' { - (9) - } { + (17) + } { - The term - } 'Public
employer' means the state, one of its agencies, any city, county,
municipal or public corporation, any political subdivision of the
state or any instrumentality thereof, or an agency created by two
or more such political subdivisions to provide themselves
governmental services. For purposes of this chapter, such agency
created by two or more political subdivisions 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
section 75 of this 2001 Act or under ORS 238.225 (2) to (6) (1999
Edition). + }
' { - (10) - } { + (19) + } { - The term - } 'Retirement
credit' means a period of time that is treated as creditable
service for the purposes of this chapter.
' { - (11)(a) - } { + (20)(a) + } { - The term - }
'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; and
' (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.
' (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 Sciences 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.
' { + (21) 'School year' means the period beginning July 1
and ending June 30 next following.
' (22) 'System' means the Public Employees Retirement
System. + }
' { - (12) - } { + (23) + } { - The term - } 'Volunteer
firefighter' means a firefighter whose position normally requires
less than 600 hours of service per year.
' { - (13) The term 'school year' means the period beginning
July 1 and ending June 30 next following. - }
' { - (14) The term 'police officer' includes: - }
' { - (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions, whose duties, as assigned
by the director, include the custody of persons committed to the
custody of or transferred to the Department of Corrections and
any other employee of the Department of Corrections who was
classified as a police officer 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 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, so 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 will 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 the MacLaren School, Hillcrest School
of Oregon and other 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. - }
' { - (15) The term '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 less,
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. - }
' { - (16) The term 'firefighter' does not include a volunteer
firefighter as defined in subsection (12) of this section, 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. - }
' { - (17) '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. - }
' { - (18) The term '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. - } '.
On page 68, after line 29, insert:
' { + SECTION 75a. + } { + If House Bill 2459 becomes law,
section 3, chapter ___, Oregon Laws 2001 (Enrolled House Bill
2459) (amending ORS 238.225), is repealed and section 75 of this
2001 Act is amended to read: + }
' { + Sec. 75. + } (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 has made contributions to the Public
Employees Retirement Fund for the purposes of ORS 238.265 (3) and
238.425. An election under this subsection must be made at the
time the public employer enters into the agreement providing for
prior service credit. + } ' .
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