72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1666
 
                         House Bill 2002
 
Sponsored by COMMITTEE ON PUBLIC EMPLOYEES RETIREMENT SYSTEM
 
 
                             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.
 
  Directs Oregon Investment Council to separately invest moneys
in Public Employees Retirement Fund that are attributable to
regular accounts of Tier One members of Public Employees
Retirement System, regular accounts of Tier Two members, retiree
reserves and all other moneys in the fund. Directs Oregon
Investment Council to select investments for each category that
are most likely to minimize effect of investment volatility on
pension liabilities, thereby promoting goal of ensuring
actuarially sound system and greater predictability in benefits
and costs of providing benefits.
  Directs Public Employees Retirement Board to consider only
investments selected by the Oregon Investment Council for moneys
attributable to regular accounts of Tier One members in
establishing assumed interest rate for those moneys.
 
                        A BILL FOR AN ACT
Relating to public employee retirement.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2003 Act is added to and made
a part of ORS chapter 238. + }
  SECTION 2.  { + (1) The Oregon Investment Council shall
separately invest each of the following categories of moneys in
the Public Employees Retirement Fund:
  (a) Moneys attributable to regular accounts maintained under
ORS 238.250 for members of the system who establish membership in
the Public Employees Retirement System on or after January 1,
1996, as described in ORS 238.430;
  (b) Moneys attributable to regular accounts maintained under
ORS 238.250 for members of the system who establish membership in
the Public Employees Retirement System before January 1, 1996, as
described in ORS 238.430;
  (c) Moneys in the reserves established under ORS 238.670 (2);
and
  (d) All other moneys in the fund.
  (2) The Oregon Investment Council shall select investments for
each of the categories described in subsection (1) of this
section that are most likely to minimize the effect of investment
volatility on pension liabilities, thereby promoting the goal of
ensuring an actuarially sound system and greater predictability
in the benefits and costs of providing those benefits.
 
  (3) In establishing the assumed interest rate for the purpose
of ORS 238.255, the Public Employees Retirement Board shall
consider only the investments selected by the Oregon Investment
Council for the moneys described in subsection (1)(b) of this
section. + }
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