72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
SA to A-Eng. HB 2004
 
LC 1669/HB 2004-A25
 
                      SENATE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 2004
 
               By COMMITTEE ON GENERAL GOVERNMENT
 
                            April 14
 
  On page 1 of the printed A-engrossed bill, line 2, after the
semicolon insert 'creating new provisions; amending ORS
238.630;'.
  On page 2, line 33, delete 'service'.
  In line 34, before 'board' insert 'Public Employees
Retirement'.
  In line 36, delete 'Public Employees Retirement'.
  Delete lines 37 through 45 and insert:
  ' (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 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 an
account balance as of June 30, 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 the effective date of this 2003 Act 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, 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 account balance established by
the board under this subsection for the member as of June 30,
2003.'.
  On page 3, delete lines 1 through 10.
  Delete lines 18 through 41 and insert:
  '  { +  SECTION 5. + }  { + (1) Jurisdiction is conferred on
the Supreme Court to determine in the manner provided by this
section whether the implementation of actuarial equivalency
factor tables under section 2 or 4 of this 2003 Act breaches any
contract between members of the Public Employees Retirement
System and their employers, or violates any constitutional
provision, including but not limited to impairment of contract
rights of members of the Public Employees Retirement System under
section 21, Article I of the Oregon Constitution, or clause 1,
section 10, Article I of the United States Constitution.
 
  ' (2) Under the jurisdiction conferred in subsection (1) of
this section, any person aggrieved by the implementation of
actuarial equivalency factor tables under section 2 or 4 of this
2003 Act may petition the Supreme Court for relief. The petition
must state the facts showing how the petitioner is aggrieved and
the grounds upon which the petition is based. The Supreme Court
shall give priority on its docket to a petition for relief filed
under this section and shall expedite a decision on the petition.
Any and all petitions filed under this section alleging a similar
basis or bases of challenge may be consolidated by the Supreme
Court upon its own motion.
  ' (3) A person petitioning for relief under this section is not
required to exhaust administrative remedies or file in any other
court.
  ' (4) A petition for relief under this section must be filed
before August 15, 2003.
  ' (5) A petition for relief under this section must present a
justiciable controversy. The petitioner must serve a copy of the
petition on the Attorney General.
  ' (6) Any public employer participating in the Public Employees
Retirement System may intervene in any proceeding commenced under
this section.
  ' (7) If the Supreme Court determines that factual
determinations are necessary for resolution of a proceeding
commenced under this section, the Supreme Court may appoint a
special master to hear evidence and prepare proposed findings of
fact. If the Supreme Court appoints a special master, the court
shall allow the parties to conduct discovery under ORCP 36 to
46. + }
  '  { +  SECTION 6. + }  { + Section 7 of this 2003 Act is added
to and made a part of ORS chapter 238. + }
  '  { +  SECTION 7. + }  { + (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 section 2 of this 2003 Act 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),
(L), (n), (o) or (p). + }
  '  { +  SECTION 8. + } 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 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 - }  { + adopt + } for that purpose the necessary
 { - actuarial factors - }  { +  actuarial equivalency factor
tables in the manner provided by section 2 of this 2003 Act + },
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.'.
  In line 42, delete '6' and insert '9'.
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