72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
SA to A-Eng. HB 2020
LC 1704/HB 2020-A20
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2020
By COMMITTEE ON GENERAL GOVERNMENT
July 2
On page 1 of the printed A-engrossed bill, delete lines 3
through 5 and insert '169.810, 192.502, 196.165, 238.445,
238.455, 238.460, 238.465, 238.600, 238.610, 238.630, 238.645,
238.650, 238.660, 238.661, 238.665, 238.675, 238.700, 238.705,
238.715, 238.750, 243.105, 243.800, 243.830, 243.930, 268.240,
293.701, 338.135, 341.290, 353.117, 353.250, 377.836, 396.330,
576.306, 656.725 and 777.775; repealing sections 13, 13a and 13b,
chapter 67, Oregon Laws 2003 (Enrolled House Bill 2003);
appropriating money; and declaring an emergency.'.
Delete lines 7 through 26 and delete pages 2 through 32 and
insert:
'
{ + DEFINITIONS + }
' { + SECTION 1. + } { + Definitions. For the purposes of
sections 1 to 45 of this 2003 Act:
' (1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Retirement Plan who
is actively employed in a qualifying position.
' (2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
' (3) 'Board' means the Public Employees Retirement Board.
' (4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
' (a) Persons engaged as independent contractors;
' (b) Aliens working under a training or educational visa;
' (c) Persons, other than workers in the Industries for the
Blind Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
' (d) Persons categorized by a participating public employer as
student employees;
' (e) Any person who is an inmate of a state institution;
' (f) Employees 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);
' (g) An employee of the Oregon Health and Science University
actively participating in an alternative retirement program
established by the university under ORS 353.250;
' (h) Employees of the Oregon University System who are
actively participating in an optional retirement plan offered
under ORS 243.800;
' (i) Any employee who belongs to a class of employees that was
not eligible on the day immediately preceding the effective date
of this 2003 Act for membership in the system under the
provisions of ORS chapter 238 or other law;
' (j) Any person who is retired under ORS chapter 238 or
sections 5 to 27 of this 2003 Act and who continues to receive
retirement benefits while employed; and
' (k) Judges.
' (5) 'Firefighter' means:
' (a) A person employed by a local government, as defined in
ORS 174.116, whose primary job duties include the fighting of
fires;
' (b) The State Fire Marshal, the chief deputy state fire
marshal and deputy state fire marshals; and
' (c) 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) 'Fund' means the Public Employees Retirement Fund.
' (7)(a) 'Hour of service' means:
' (A) An hour for which an employee is directly or indirectly
paid or entitled to payment by a participating public employer
for performance of duties; and
' (B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer, as long as the hour is within the number of hours
regularly scheduled for the performance of duties during the
period of vacation, holiday, illness, incapacity, jury duty,
military duty or authorized leave.
' (b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
' (8) 'Inactive member' means a member of the pension program
or the individual account program of the Oregon Retirement Plan
whose membership has not been terminated, who is not a retired
member and who is separated from all service with participating
public employers and 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.
' (9) 'Individual account program' means the defined
contribution individual account program of the Oregon Retirement
Plan established under section 2 of this 2003 Act.
' (10) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Retirement Plan and whose membership has
not been terminated under section 6 or 30 of this 2003 Act.
' (11) 'Participating public employer' means a public employer
as defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
' (12) 'Pension program' means the defined benefit pension
program of the Oregon Retirement Plan established under section 2
of this 2003 Act.
' (13) 'Police officer' means a police officer as described in
ORS 238.005.
' (14) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 hours of service or more in a calendar year.
' (15) 'Retired member' means a pension program member who is
receiving a pension as provided in sections 18 to 21 of this 2003
Act.
' (16)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
' (b) 'Salary' includes the following amounts:
' (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
' (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
' (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on the effective date of this 2003 Act.
' (D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on the effective date
of this 2003 Act.
' (E) Retroactive payments made to an employee to correct a
clerical error, pursuant to an award by a court or by order of or
pursuant to 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 the work would have been done.
' (F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under section 34
(1) and (2)(a) of this 2003 Act.
' (G) The amount of an employee contribution to the individual
account program that is not paid by the employer under section 34
of this 2003 Act.
' (c) 'Salary' does not include the following amounts:
' (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
' (B) Payments made on account of an employee's death.
' (C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
' (D) Any severance payment, accelerated payment of an
employment contract for a future period or advance against future
wages.
' (E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
' (F) Payment for a leave of absence after the date the
employer and employee have agreed that no future services in a
qualifying position will be performed.
' (G) Payments for instructional services rendered to
institutions of the Department of Higher Education or the Oregon
Health and Science University when those services are in excess
of full-time employment subject to sections 1 to 45 of this 2003
Act. A person employed under a contract for less than 12 months
is subject to this subparagraph only for the months covered by
the contract.
' (H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under section
34 (1) and (2)(b) of this 2003 Act.
' (I) Any amount in excess of $200,000 for a calendar year. If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
' (17) 'System' means the Public Employees Retirement
System. + }
' { + SECTION 1a. + } { + Computation of hours of service.
For the purpose of computing hours of service under sections 1 to
45 of this 2003 Act, an eligible employee shall be credited with
40 hours of service for each calendar week in which the employee
was employed in a qualifying position unless otherwise shown by
records maintained by the participating public employer. + }
'
{ + OREGON RETIREMENT PLAN + }
' { + SECTION 2. + } { + Oregon Retirement Plan
established. (1) The Oregon Retirement Plan is established. The
purpose of the Oregon Retirement Plan is to provide career public
employees with a secure and fair retirement income at an
affordable, stable and predictable cost to the taxpayers. The
Oregon Retirement Plan shall be composed of a pension program,
established and maintained with the Public Employees Retirement
System as a tax-qualified governmental defined benefit plan, and
an individual account program, established and maintained as a
tax-qualified governmental defined contribution plan. The pension
program and the individual account program are separate plans for
purposes of federal income tax qualification, and the assets of
each program must be held in a separate trust for the exclusive
benefit of the participants and beneficiaries in each program.
The Public Employees Retirement Board may create separate
accounts within the Public Employees Retirement Fund for the
assets of the pension program and of the individual account
program.
' (2) Notwithstanding any provision of ORS chapter 238, any
person who is employed by a participating public employer on or
after the effective date of this 2003 Act, and who has not
established membership in the Public Employees Retirement System
before the effective date of this 2003 Act, is entitled to
receive only the benefits provided under the Oregon Retirement
Plan for periods of service with participating public employers
on and after the effective date of this 2003 Act and has no right
or claim to any benefit under ORS chapter 238 except as
specifically provided by sections 1 to 45 of this 2003 Act.
' (3)(a) Any person who is an active member of the Public
Employees Retirement System on the day immediately preceding the
effective date of this 2003 Act is entitled to receive the
benefits provided by ORS chapter 238 for all service performed
before, on and after the effective date of this 2003 Act, unless
the person has a break in service on or after the effective date
of this 2003 Act. If the person has a break in service on or
after the effective date of this 2003 Act, the person is entitled
to receive the benefits provided by ORS chapter 238 for all
creditable service performed before the break in service, and the
benefits provided under the Oregon Retirement Plan for periods of
service with participating public employers after the break in
service.
' (b) Except as provided in paragraphs (c) and (d) of this
subsection, a person has a break in service for the purposes of
this subsection if the person performs no service with a
participating public employer in a qualifying position for a
period of six consecutive months.
' (c) If a person leaves employment with a participating public
employer for purposes that would qualify the person for family
leave under ORS 659A.150 to 659A.186, the person has a break in
service for the purposes of this subsection only if the person
performs no service with a participating public employer in a
qualifying position for a period of 12 consecutive months after
leaving employment with the participating public employer.
' (d) If a person leaves employment with a participating public
employer for career development purposes pursuant to written
authorization of the participating public employer under a
written policy of the employer that applies generally to the
class of employees to which the member belongs, the person has a
break in service for the purposes of this subsection only if the
person performs no service with a participating public employer
in a qualifying position for a period of 12 consecutive months
after leaving employment with the participating public employer.
' (4) A person establishes membership in the system before the
effective date of this 2003 Act for the purposes of this section
if:
' (a) The person is a member of the system, or a judge member
of the system, on the day immediately preceding the effective
date of this 2003 Act; or
' (b) The person performed any period of service for a
participating public employer before the effective date of this
2003 Act 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.
' (5) Except as provided in sections 1 to 45 of this 2003 Act,
ORS chapter 238 does not apply to the Oregon Retirement Plan.
' (6) The provisions of this section do not apply to a person
elected or appointed as a judge as defined in ORS 238.500. + }
' { + SECTION 2a. + } { + Temporary provision for members
who are inactive. + } { + (1) Any person who is an inactive
member of the Public Employees Retirement System on the day
immediately preceding the effective date of this 2003 Act is
entitled to receive the benefits provided by ORS chapter 238 for
all service performed before the effective date of this 2003 Act.
The person shall receive the benefits provided under the Oregon
Retirement Plan for periods of service with participating public
employers on and after the effective date of this 2003 Act,
unless the person returns to a qualifying position without a
break in service as described in section 2 (3) of this 2003 Act.
If the person returns to a qualifying position without a break in
service as described in section 2 (3) of this 2003 Act, the
person shall be treated in the same manner as provided by section
2 (3) of this 2003 Act for persons who are active members of the
system on the day immediately preceding the effective date of
this 2003 Act. If the person has a break in service as described
in section 2 (3) of this 2003 Act, but returns to a qualifying
position before January 1, 2004, the person is entitled to
receive the benefits provided by ORS chapter 238 for all
creditable service performed before January 1, 2004, and the
benefits provided under the Oregon Retirement Plan for periods of
service with participating public employers on and after January
1, 2004. + } { +
' (2) The provisions of this section do not apply to a person
elected or appointed as a judge as defined in ORS 238.500. + }
'
{ + ADMINISTRATION + }
' { + SECTION 3. + } { + Oregon Retirement Plan part of
Public Employees Retirement System. (1) The Oregon Retirement
Plan is part of the Public Employees Retirement System and is
administered by the Public Employees Retirement Board.
' (2) ORS 238.445, 238.450, 238.455, 238.458, 238.460, 238.465,
238.470, 238.600, 238.601, 238.605, 238.610, 238.615, 238.618,
238.630, 238.635, 238.640, 238.645, 238.655, 238.660, 238.661,
238.665, 238.675, 238.692, 238.694, 238.695, 238.696, 238.698,
238.700, 238.705, 238.710 and 238.715 apply to the Oregon
Retirement Plan.
' (3) The Oregon Investment Council shall invest the assets of
the Oregon Retirement Plan as a part of the Public Employees
Retirement Fund. Except as provided by subsection (4) of this
section, the investment of Oregon Retirement Plan assets is
subject to the provisions of ORS 293.701 to 293.820. The Oregon
Investment Council may invest assets of the individual account
program differently than the other assets of the Public Employees
Retirement System or the pension program.
' (4) Investment of the assets of the Oregon Retirement Plan is
not subject to the limitations imposed by ORS 293.726 (6).
' (5) The board may contract with a private provider for the
administration of the individual account program. The board is
not subject to the provisions of ORS 279.005 to 279.111 in
awarding a contract under the provisions of this subsection. The
board shall establish procedures for inviting proposals and
awarding contracts under this subsection. + }
'
{ + PARTICIPATION BY PUBLIC EMPLOYERS + }
' { + SECTION 4. + } { + Participation generally. (1) All
public employers participating in the Public Employees Retirement
System on the effective date of this 2003 Act:
' (a) Shall continue to be participating public employers for
the purpose of the Oregon Retirement Plan;
' (b) Shall provide benefits under the pension program
established under sections 5 to 27 of this 2003 Act for eligible
employees who are members of the pension program; and
' (c) Shall participate in the individual account program.
' (2) Any participating public employer that provided
retirement benefits under ORS chapter 238 for some but not all of
the employees of the participating public employer on the day
immediately preceding the effective date of this 2003 Act need
not provide benefits under the Oregon Retirement Plan for any
class of employees who were not members of the system on the day
immediately preceding the effective date of this 2003 Act.
' (3) Any public employer that is not a participating public
employer on the day immediately preceding the effective date of
this 2003 Act may become a participating public employer under
the pension program or the individual account program, or both. A
public employer may become a participating public employer under
this subsection only for the purposes of service performed by
eligible employees of the public employer on or after the date
the public employer elects to participate in the program. + }
'
{ + PENSION PROGRAM + }
'
{ + (Membership) + }
' { + SECTION 5. + } { + Establishing membership under
pension program. An eligible employee who is employed in a
qualifying position on or after the effective date of this 2003
Act by a public employer that is participating in the pension
program and who will not receive benefits under ORS chapter 238
for service with the participating public employer pursuant to
the provisions of section 2 of this 2003 Act becomes a member of
the pension program on the first day of the month after the
employee completes six full calendar months of employment. The
six-month requirement may not be interrupted by more than 30
consecutive working days. + }
' { + SECTION 6. + } { + Termination of membership.
Membership under the pension program terminates when:
' (1) A member dies;
' (2) A member withdraws under section 8 of this 2003 Act; or
' (3) A member forfeits retirement credit under section 12 of
this 2003 Act. + }
'
{ + (Vesting) + }
' { + SECTION 7. + } { + Vesting. (1) A member of the
pension program becomes vested in the pension program on the
earliest of the following dates:
' (a) The date on which the member completes at least 600 hours
of service in each of five calendar years. The five calendar
years need not be consecutive, but are subject to the provisions
of subsection (2) of this section.
' (b) The date on which an active member reaches the normal
retirement age for the member under section 15 of this 2003 Act.
' (c) If the pension program is terminated, the date on which
termination becomes effective, but only to the extent the pension
program is then funded.
' (2) If a member of the pension program who is not vested in
the pension program performs fewer than 600 hours of service in
each of five consecutive calendar years, hours of service
performed before the first calendar year of the period of five
consecutive calendar years shall be disregarded for purposes of
determining whether the member is vested under subsection (1)(a)
of this section.
' (3) Solely for purposes of determining whether a member is
vested under this section, hours of service include creditable
service, as defined in ORS 238.005, performed by the person
before the person became an eligible employee, as long as the
membership of the person under ORS chapter 238 has not been
terminated under the provisions of ORS 238.095 on the date the
person becomes an eligible employee. + }
'
{ + (Withdrawal) + }
' { + SECTION 8. + } { + Withdrawal from pension program by
vested inactive member. (1) A vested inactive member may withdraw
from the pension program if the actuarial equivalent of the
member's benefit under the pension program at the time of
withdrawal is $5,000 or less. Upon withdrawal, the Public
Employees Retirement Board shall pay the withdrawing member the
actuarial equivalent of the member's benefit in a lump sum. For
the purposes of this subsection, the actuarial equivalent of the
member's benefit does not include any value attributable to
adjustments to the benefit under section 23 of this 2003 Act.
' (2) If a vested inactive member withdraws from the pension
program under subsection (1) of this section and is thereafter
reemployed by a participating public employer:
' (a) The person may reestablish membership in the pension
program only for the purpose of service performed after the
person is reemployed; and
' (b) Any service performed before the withdrawal may not be
credited toward the period of service required by section 5 or 7
of this 2003 Act or toward the accrual of retirement credit under
section 11, 13 or 14 of this 2003 Act. + }
'
{ + (Computation of Benefit) + }
' { + SECTION 9. + } { + Amount of pension. (1) Upon
retiring at normal retirement age, a vested pension program
member shall be paid an annual pension for the life of the member
as follows:
' (a) For service as a police officer or firefighter, 1.8
percent of final average salary multiplied by the number of years
of retirement credit attributable to service as a police officer
or firefighter.
' (b) For service as other than a police officer or
firefighter, 1.5 percent of final average salary multiplied by
the number of years of retirement credit attributable to service
as other than a police officer or firefighter.
' (2) Notwithstanding any provision of sections 5 to 27 of this
2003 Act, the annual benefit payable to a member under the
pension program and under any other tax-qualified defined benefit
plan maintained by the participating public employer may not
exceed the applicable limitations set forth in 26 U.S.C. 415(b),
as in effect on the effective date of this 2003 Act. The Public
Employees Retirement Board shall adopt rules for the
administration of this limitation, including adjustments in the
annual dollar limitation to reflect cost-of-living adjustments
authorized by the Internal Revenue Service.
' (3) The board shall make no actuarial adjustment in a
member's pension calculated under this section by reason of the
member's retirement after normal retirement age. + }
' { + SECTION 10. + } { + Final average salary. (1) For
purposes of the computation of pension program benefits under
section 9 of this 2003 Act, 'final average salary' means
whichever of the following is greater:
' (a) The average salary per calendar year earned by an active
member in the three consecutive calendar years of membership that
produce the highest average salary, including calendar years in
which the member was employed for less than a full calendar year.
If the number of consecutive calendar years of active membership
before the effective date of retirement of the member is three or
less, the final average salary for the member is the average
salary per calendar year earned by the member in all of those
years, without regard to whether the member was employed for full
calendar years.
' (b) One-third of the total salary earned by an active member
in the last 36 calendar months of membership before the effective
date of retirement of the member.
' (2) For purposes of calculating the final average salary for
a member during any period in which the member worked in a
qualifying position that requires fewer than 2,000 hours of
service in a calendar year, the salary of the member for that
period is the salary that would have been paid if the member had
worked in the same position on a full-time basis.
' (3) For the purposes of calculating the final average salary
of a member under this section, the salary of the member does not
include any amounts attributable to hours of overtime that exceed
the average number of hours of overtime for the same class of
employees as established by rule of the Public Employees
Retirement Board. + }
'
{ + (Retirement Credit) + }
' { + SECTION 11. + } { + Accrual of retirement credit. (1)
A pension program member shall accrue no retirement credit for
any calendar year in which the member has fewer than 600 hours of
service. A member may not accrue more than one full year of
retirement credit in any calendar year.
' (2) When an eligible employee becomes a member under section
5 of this 2003 Act, the board shall credit the eligible employee
with retirement credit for the period of employment required of
the employee under section 5 of this 2003 Act.
' (3) Except as provided in subsection (5) of this section, a
pension program member shall accrue one full year of retirement
credit for each calendar year in which the member has 2,000 hours
of service or more.
' (4) Except as provided in subsection (5) of this section, a
pension program member shall accrue a prorated year of retirement
credit for each calendar year in which the member has 600 hours
of service or more but fewer than 2,000 hours of service. The
prorated retirement credit shall be calculated by dividing the
number of hours of service by 2,000.
' (5) If an active member of the pension program works as a
school employee for one or more participating public employers
during a calendar year, and the number of hours of service
required for a full-time school employee employed by the
participating public employer or employers is less than 2,000,
the member accrues retirement credit for the calendar year as
follows:
' (a) The member accrues one full year of retirement credit for
the calendar year if the member's hours of service as a school
employee are equal to or greater than the number of hours of
service required of a full-time school employee employed in the
same position or a comparable position by the participating
public employer or employers during the calendar year.
' (b) The member accrues a prorated year of retirement credit
for each calendar year in which the member has at least 600 hours
of service but less than the number of hours of service required
of a full-time school employee employed in the same position or a
comparable position by the participating public employer or
employers during the calendar year. The prorated retirement
credit shall be calculated by dividing the number of the member's
hours of service as a school employee by the number of hours of
service required of a full-time school employee in the same
position or a comparable position.
' (c) The Public Employees Retirement Board shall adopt rules
governing the accrual of retirement credit on a prorated basis by
an active member who works in both a school employee position and
another qualifying position during the same calendar year, or who
works as a school employee for more than one participating public
employer during the same calendar year.
' (6) For purposes of this section, 'school employee' means:
' (a) A person who is employed by a common school district, a
union high school district or an education service district;
' (b) An employee of the State Board of Higher Education
engaged in teaching or other school activity at an institution of
higher education;
' (c) An employee of the Department of Human Services, the
Oregon Youth Authority, the Department of Corrections or the
State Board of Education who is engaged in teaching or other
school activity at an institution supervised by the authority,
board or department; and
' (d) An employee of a community college district who is
engaged in teaching or other school activity. + }
' { + SECTION 11a. + } { + Temporary provision for person
employed before January 1, 2004. Notwithstanding section 11 (2)
of this 2003 Act, if an eligible employee is employed by a
participating public employer in a qualifying position on or
after the effective date of this 2003 Act and before January 1,
2004, and will not receive benefits under ORS chapter 238 for
service with the participating public employer pursuant to the
provisions of section 2 of this 2003 Act, the Public Employees
Retirement Board shall not credit the eligible employee with
retirement credit for any period of employment required of the
employee under section 5 of this 2003 Act that is performed
before January 1, 2004. + }
' { + SECTION 12. + } { + Loss of retirement credit. (1) A
pension program member who is not vested forfeits all retirement
credit if the member performs fewer than 600 hours of service in
each of five consecutive calendar years. A forfeiture under this
section takes effect at the end of the fifth calendar year.
' (2) If a pension program member forfeits retirement credit
under this section and is subsequently reemployed by a
participating public employer:
' (a) The person may acquire retirement credit under the
pension program only for the purpose of service performed after
the person is reemployed; and
' (b) Any service performed before the forfeiture may not be
credited toward the period of service required by section 5 or 7
of this 2003 Act, or toward the accrual of retirement credit
under section 11, 13 or 14 of this 2003 Act. + }
' { + SECTION 13. + } { + Retirement credit for service in
uniformed services. (1) Notwithstanding any other provision of
sections 5 to 27 of this 2003 Act, an eligible employee who
leaves a qualifying position for the purpose of performing
service in the uniformed services, and who subsequently returns
to employment with a participating public employer with
reemployment rights under federal law, is entitled to accrue
retirement credit, credit toward the probationary period required
by section 5 of this 2003 Act and credit toward the vesting
requirements of section 7 of this 2003 Act under rules adopted by
the Public Employees Retirement Board pursuant to subsection (2)
of this section.
' (2) The board shall adopt rules establishing 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 benefits and service credit for any period of service
in the uniformed services, including 26 U.S.C. 414(u), as in
effect on the effective date of this 2003 Act. Benefits and
service credit under rules adopted by the board pursuant to this
subsection may not exceed benefits and service credit required
under federal law for periods of service in the uniformed
services. + }
' { + SECTION 14. + } { + Retirement credit for periods of
disability. (1) Notwithstanding any other provision of sections
5 to 27 of this 2003 Act, an active member of the pension program
described in subsection (2) of this section who becomes disabled
shall accrue retirement credit and hours of service credit for
vesting purposes for the period during which the member is
disabled.
' (2) The provisions of this section apply only to:
' (a) A member who has accrued 10 years or more of retirement
credit before the member becomes disabled; or
' (b) A member who becomes disabled by reason of injury or
disease sustained while in the actual performance of duty.
' (3) Retirement credit accrues under this section only for as
long as the member remains disabled or until the member reaches
the normal retirement age under section 15 of this 2003 Act.
' (4) If a disabled member does not return to employment with a
participating public employer after the period of disability, the
member shall receive a pension under section 18, 19 or 20 of this
2003 Act upon retirement based on an adjusted salary. The
adjusted salary shall be the salary paid to the disabled member
on the date the member left active employment with the
participating public employer by reason of disability, adjusted
for each year after the member left employment and before the
member's effective date of retirement to reflect cost-of-living
changes, based on the Portland-Salem, OR-WA, Consumer Price Index
for All Urban Consumers for All Items, as published by the Bureau
of Labor Statistics of the United States Department of Labor.
Adjustments under this subsection may not exceed a two percent
increase or decrease for any year. An adjustment shall be made
under this subsection only for calendar years in which the member
is disabled for at least six months during the year.
' (5) A pension program member is considered to be disabled for
the purpose of this section if the member is found, after being
examined by one or more physicians selected by the Public
Employees Retirement Board, to be mentally or physically
incapacitated for an extended duration and unable to perform any
work for which qualified, by reason of injury or disease that was
not intentionally self-inflicted. + }
'
{ + (Retirement) + }
' { + SECTION 15. + } { + Normal retirement age; normal
retirement date. (1) Except as provided in subsection (2) of
this section, normal retirement age for a member of the pension
program is the earlier of:
' (a) 65 years of age; or
' (b) 58 years of age if the member has 30 years or more of
retirement credit.
' (2) Normal retirement age for a member of the pension program
who retires from service as a police officer or firefighter, and
who has held a position as a police officer or firefighter
continuously for a period of not less than five years immediately
preceding the effective date of retirement, is the earlier of:
' (a) 60 years of age; or
' (b) 53 years of age if the member has 25 years or more of
retirement credit.
' (3) The normal retirement date of a member is the first day
of the month beginning on or after the date the member reaches
normal retirement age. + }
' { + SECTION 16. + } { + Earliest retirement age; earliest
retirement date. (1) Except as provided in subsection (2) of this
section, earliest retirement age for a member of the pension
program is 55 years of age.
' (2) Earliest retirement age for a member of the pension
program who retires from service as a police officer or
firefighter is 50 years of age if the member has held a position
as a police officer or firefighter continuously for a period of
not less than five years immediately before the effective date of
retirement. Earliest retirement date for a member described in
this subsection is not later than the date the member reaches 55
years of age.
' (3) A member of the pension program who has reached earliest
retirement age may retire on an early retirement date that is the
first day of any month on or after the member has reached the
earliest retirement age. + }
' { + SECTION 17. + } { + Latest retirement date; required
minimum distributions. (1) An active member of the pension
program who is 70-1/2 years of age or older must retire not later
than April 1 of the calendar year following the calendar year in
which the member terminates employment with all participating
public employers. An inactive member of the pension program must
retire not later than April 1 of the calendar year following the
calendar year in which the member attains 70-1/2 years of age.
' (2) Notwithstanding any other provision of sections 5 to 27
of this 2003 Act, the entire interest of a member of the pension
program must be distributed over a time period commencing no
later than the required beginning date set forth in subsection
(1) of this section, and must be distributed in a manner that
satisfies all other minimum distribution requirements of 26
U.S.C. 401(a)(9) and regulations implementing that section, as in
effect on the effective date of this 2003 Act. The Public
Employees Retirement Board shall adopt rules implementing those
minimum distribution requirements. + }
'
{ + (Pension) + }
' { + SECTION 18. + } { + Normal retirement benefit. Upon
retiring on normal retirement date or thereafter, a member of the
pension program who is vested shall be paid an annual pension for
the life of the member, calculated as provided in section 9 of
this 2003 Act. The annual pension provided for under this section
shall be paid in equal monthly installments, payable as of the
first day of each calendar month, beginning on the later of the
member's normal retirement date or the member's effective date of
retirement and ending on the first day of the month in which the
member dies. + }
' { + SECTION 19. + } { + Early retirement. A member of the
pension program who is vested may retire with a reduced pension
that is the actuarial equivalent of the pension provided for in
section 18 of this 2003 Act at any time on or after the member's
earliest retirement date as described in section 16 of this 2003
Act. + }
' { + SECTION 20. + } { + Survivorship benefits. (1) Before
the effective date of retirement of a member of the pension
program, the member may elect to convert the pension calculated
under section 18 or 19 of this 2003 Act into the actuarial
equivalent pension as follows:
' (a) A pension payable monthly during the member's life and,
after the death of the member, continuing at the same monthly
amount for the life of a beneficiary named by the member in a
written designation filed with the Public Employees Retirement
Board at the time of election.
' (b) A pension payable monthly during the member's life and,
after the death of the member, continuing at one-half of the
monthly amount paid to the member for the life of a beneficiary
named by the member in a written designation filed with the board
at the time of election.
' (2) If a member of the pension program is married on the
effective date of retirement, or there exists any other person on
the effective date of retirement who is constitutionally required
to be treated in the same manner as a spouse for the purpose of
retirement benefits, the pension payable to the member shall be
as provided in subsection (1)(b) of this section with the spouse
or other person as beneficiary, unless:
' (a) The member has selected the pension provided for in
subsection (1)(a) of this section with the spouse or other person
as beneficiary; or
' (b) The member submits to the board a document signed by the
spouse or other person, acknowledged by a notary public,
consenting to a different option or a different beneficiary.
' (3) Subsection (2) of this section does not apply to a
pension benefit that is paid in a lump sum under section 21 of
this 2003 Act. + }
' { + SECTION 21. + } { + Cash out of small benefits. If the
monthly pension benefit payable to a member of the pension
program under section 18 of this 2003 Act is less than $200, or
the monthly death benefit payable to the beneficiary of a
deceased member under section 25 of this 2003 Act is less than
$200, the Public Employees Retirement Board shall convert the
benefit into a lump sum that represents the actuarial equivalent
of the present value of the pension or death benefit and pay that
amount to the member or the deceased member's beneficiary in lieu
of a pension or death benefit under sections 5 to 27 of this 2003
Act. + }
' { + SECTION 22. + } { + Actuarial equivalency factor
tables. (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
of the pension program and their beneficiaries and alternate
payees under ORS 238.465. The tables may be adopted in
conjunction with the biennial evaluation of the Public Employees
Retirement System 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 or
alternate payee;
' (b) The date that the first payment is due for any person
receiving a death benefit under section 25 of this 2003 Act; or
' (c) The date that the first payment is due after 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. + }
'
{ + (Cost-of-living Adjustment) + }
' { + SECTION 23. + } { + Cost-of-living adjustment. (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 Portland-Salem, OR-WA, Consumer Price
Index for All Urban Consumers for All Items, as published by the
Bureau of Labor Statistics of the United States Department of
Labor. Before July 1 each year, the board shall adjust every
pension payable under sections 18, 19 and 20 of this 2003 Act,
every disability benefit under section 25a of this 2003 Act and
every death benefit payable under section 25 of this 2003 Act by
multiplying the monthly payment by the percentage figure
determined by the board. The adjustment shall be made for the
payments payable on August 1 and thereafter.
' (2) An increase or decrease in the benefit payments under
this section may not exceed two percent in any year. A pension or
death benefit may not be adjusted to an amount that is less than
the amount that would have been payable if no cost-of-living
adjustment had been made since the pension or death benefit first
became payable. + }
'
{ + (Employer Contribution) + }
' { + SECTION 24. + } { + Employer contribution. (1) A
participating public employer shall contribute to the pension
program at intervals designated by the Public Employees
Retirement Board all amounts determined by the board to be
actuarially necessary to adequately fund the pension program
benefits to be provided under sections 5 to 27 of this 2003 Act,
other than the disability benefit provided under section 25a of
this 2003 Act, and the reasonable costs of administering the
pension program and the trust in which assets of the program are
held. From time to time, the board shall determine the
liabilities attributable to the pension program, other than the
disability benefit provided by section 25a of this 2003 Act, 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. All participating public
employers shall be considered to be a single employer for the
purposes of the contributions required under this section.
' (2) For the purpose of the actuarial computation required
under subsection (1) of this section, the board shall separately
establish the liability of participating public employers for
police officers and firefighters, and shall require that public
employers that employ police officers and firefighters make
contributions for those employees based on the liability
established under this section. + }
'
{ + (Death Benefit) + }
' { + SECTION 25. + } { + Death benefit. (1) If a member of
the pension program who is vested dies before the member's
effective date of retirement, the Public Employees Retirement
Board shall pay the death benefit provided for in this section to
the spouse of the member or to any other person who is
constitutionally required to be treated in the same manner as a
spouse for the purpose of retirement benefits.
' (2)(a) The death benefit to be paid under this section shall
be for the life of the spouse or other person who is
constitutionally required to be treated in the same manner as a
spouse, and shall be the actuarial equivalent of 50 percent of
the pension that would otherwise have been paid to the deceased
member.
' (b) For the purpose of paragraph (a) of this subsection, the
amount of the pension that would otherwise have been paid to the
deceased member shall be calculated:
' (A) As of the date of death if the member dies after the
earliest retirement date for the member under section 16 of this
2003 Act; or
' (B) As if the member became an inactive member on the date of
death and thereafter retired at the earliest retirement date if
the member dies before the earliest retirement date for the
member under section 16 of this 2003 Act.
' (3) The board may commence payment of the death benefit
provided by this section:
' (a) As of the date of death if the member dies after the
earliest retirement date for the member under section 16 of this
2003 Act;
' (b) As of the date the member would have attained 55 years of
age if the member is not a police officer or firefighter at the
time of death and the member dies before the earliest retirement
date for the member under section 16 of this 2003 Act; or
' (c) As of the date the member would have attained 50 years of
age if the member is a police officer or firefighter at the time
of death and the member dies before the earliest retirement date
for the member under section 16 of this 2003 Act.
' (4)(a) Except as provided in paragraph (b) of this
subsection, a spouse or other person who is constitutionally
required to be treated in the same manner as a spouse must begin
receiving the death benefit provided for in this section before
December 31 of the calendar year after the calendar year in which
the member died.
' (b) A surviving spouse or other person may elect to delay
payment of the death benefit, but payment must commence no later
than December 31 of the calendar year in which the member would
have reached age 70-1/2 years.
' (5) Notwithstanding any other provision of sections 5 to 27
of this 2003 Act, distributions of death benefits under the
pension program must comply with the minimum distribution
requirements of 26 U.S.C. 401(a)(9) and the regulations
implementing that section, as in effect on the effective date of
this 2003 Act. The board shall adopt rules implementing those
minimum distribution requirements. + }
'
{ + (Disability Benefit) + }
' { + SECTION 25a. + } { + Disability benefit. (1) Subject
to subsection (3) of this section, an active member of the
pension program described in subsection (2) of this section who
becomes disabled shall receive a disability benefit in the amount
of 45 percent of the salary of the member determined as of the
last full month of employment before the disability commences.
' (2) The provisions of this section apply only to:
' (a) A member who has accrued 10 years or more of retirement
credit before the member becomes disabled; or
' (b) A member who becomes disabled by reason of injury or
disease sustained while in the actual performance of duty.
' (3)(a) Except as provided by paragraph (b) of this
subsection, the sum of the monthly amount of the disability
benefit under this section and of any monthly payment by reason
of temporary total disability or permanent total disability under
the provisions of ORS chapter 656 may not exceed 75 percent of
the member's monthly salary, determined as of the date the member
becomes disabled. The Public Employees Retirement Board shall
reduce any disability benefit payable under this section in the
amount determined to be necessary by the board to meet the
limitation imposed by this subsection.
' (b) This subsection does not affect cost-of-living
adjustments under section 23 of this 2003 Act, and increases in
the monthly amount of the disability benefit under this section
due to those cost-of-living adjustments may not be considered by
the Public Employees Retirement Board in determining whether the
limitation imposed by this subsection has been exceeded.
' (4) A disability retirement pension under this section shall
be paid until:
' (a) The member is no longer disabled; or
' (b) The member attains normal retirement age under section 15
of this 2003 Act.
' (5) A member is considered to be disabled for the purpose of
this section if the member is found, after being examined by one
or more physicians selected by the board, to be mentally or
physically incapacitated for an extended duration and unable to
perform any work for which qualified, by reason of injury or
disease that was not intentionally self-inflicted. + }
' { + SECTION 25b. + } { + Funding of disability benefit.
(1) A participating public employer shall contribute to the
pension program, at intervals designated by the Public Employees
Retirement Board, all amounts determined by the board to be
actuarially necessary to adequately fund the disability benefits
to be provided under section 25a of this 2003 Act and the
reasonable costs of administering the provision of those
benefits. The board shall periodically determine the liabilities
attributable to the disability benefits 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. All participating public
employers shall be considered to be a single employer for the
purposes of the contributions required under this section.
' (2) For the purpose of the actuarial computation required
under subsection (1) of this section, the board shall separately
establish the liability of participating public employers for
police officers and firefighters, and shall require that public
employers that employ police officers and firefighters make
contributions for those employees based on the liability
established under this section. + }
'
{ + (Reemployment of Retired Members) + }
' { + SECTION 26. + } { + Reemployment after commencement of
pension benefits. (1) Except as provided in section 27 of this
2003 Act, the Public Employees Retirement Board shall cease
making pension payments to a retired member of the pension
program who is reemployed by a participating public employer. A
retired member of the pension program who is employed in a
qualifying position becomes an active member of the pension
program without serving the probationary period provided for in
section 5 of this 2003 Act.
' (2) If a retired member of the pension program is reemployed
under the provisions of this section, any option chosen by the
member under section 20 of this 2003 Act is canceled, and upon
retiring thereafter the member may elect any option provided for
in sections 18 and 20 of this 2003 Act. The board shall
recalculate the pension of the member upon subsequent
retirement. + }
' { + SECTION 27. + } { + Reemployment while continuing to
receive pension. (1) A retired member of the pension program may
be reemployed by a participating public employer and continue to
receive the pension elected by the member if the total period of
employment by one or more participating public employers is fewer
than 600 hours in any calendar year.
' (2) A person employed under this section does not become an
active member of the pension program. + }
' { + NOTE: + } Section 28 was deleted by amendment.
Subsequent sections were not renumbered.
'
{ + INDIVIDUAL ACCOUNT PROGRAM + }
'
{ + (Membership) + }
' { + SECTION 29. + } { + Establishing membership under
individual account program. An eligible employee who is employed
in a qualifying position on or after the effective date of this
2003 Act by a public employer that is participating in the
individual account program and who will not receive benefits
under ORS chapter 238 for service with the participating public
employer pursuant to the provisions of section 2 of this 2003 Act
becomes a member of the individual account program on the first
day of the month after the employee completes six full calendar
months of employment. The six-month probationary period may not
be interrupted by more than 30 consecutive working days. + }
' { + SECTION 30. + } { + Termination of membership.
Membership under the individual account program terminates when:
' (1) A member dies; or
' (2) An inactive member receives a distribution of the vested
accounts of the member under section 40 of this 2003 Act. + }
'
{ + (Vesting) + }
' { + SECTION 31. + } { + Vesting. (1) A member of the
individual account program becomes vested in the employee account
established for the member under section 37 (2) of this 2003 Act
on the date the employee account is established.
' (2) A member who makes rollover contributions becomes vested
in the rollover account established for the member under section
37 (4) of this 2003 Act on the date the rollover account is
established.
' (3) If an employer makes employer contributions for a member
under section 36 of this 2003 Act, the member becomes vested in
the employer account established under section 37 (3) of this
2003 Act on the earliest of the following dates:
' (a) The date on which the member completes at least 600 hours
of service in each of five calendar years;
' (b) The date on which an active member reaches the normal
retirement age for the member under section 15 of this 2003 Act;
' (c) If the individual account program is terminated, the date
on which termination becomes effective, but only to the extent
the account is then funded;
' (d) The date on which an active member becomes disabled, as
described in section 14 (4) of this 2003 Act; or
' (e) The date on which an active member dies.
' (4) If a member of the individual account program who is not
vested in the employer account performs fewer than 600 hours of
service in each of five consecutive calendar years, hours of
service performed before the first calendar year of the period of
five consecutive calendar years shall be disregarded for purposes
of determining whether the member is vested under subsection
(3)(a) of this section.
' (5) Solely for purposes of determining whether a member is
vested under subsection (3)(a) of this section, hours of service
include creditable service, as defined in ORS 238.005, performed
by the person before the person became an eligible employee, as
long as the membership of the person under ORS chapter 238 has
not been terminated under the provisions of ORS 238.095 on the
date the person becomes an eligible employee. + }
'
{ + (Employee Contributions) + }
' { + SECTION 32. + } { + Employee contributions. (1) A
member of the individual account program must make employee
contributions to the individual account program of six percent of
the member's salary.
' (2) Employee contributions made by a member of the individual
account program under this section shall be credited by the board
to the employee account established for the member under section
37 (2) of this 2003 Act. + }
' { + SECTION 33. + } { + Transitional rule for chapter 67,
Oregon Laws 2003 (Enrolled House Bill 2003). (1) Except as
provided in subsection (2) of this section, all members of the
Public Employees Retirement System who established membership in
the Public Employees Retirement System before the effective date
of this 2003 Act as described in section 2 of this 2003 Act
become members of the individual account program on January 1,
2004.
' (2) A member of the Public Employees Retirement System may
not be a member of the individual account program during any
period of time during which the member is required to make
contributions to the system under ORS 238.200. + }
' { + SECTION 33a. + } { + Repeal of Transition Account
Program in chapter 67, Oregon Laws 2003 (Enrolled House Bill
2003). Sections 13, 13a and 13b, chapter 67, Oregon Laws 2003
(Enrolled House Bill 2003), are repealed. + }
' { + SECTION 34. + } { + Employer payment of employee
contribution. (1) A participating public employer may agree, by a
written employment policy or by a collective bargaining
agreement, to pay the employee contribution required under
section 32 of this 2003 Act. The policy or agreement need not
include all members of the individual account program employed by
the employer.
' (2) An agreement under this section to pay the required
employee contribution may provide that:
' (a) Employee compensation be reduced to generate the funds
needed to make the employee contributions; or
' (b) Additional amounts be paid by the employer for the
purpose of making the employee contributions, and employee
compensation not be reduced for the purpose of generating the
funds needed to make the employee contributions.
' (3) A participating public employer must give written notice
to the Public Employees Retirement Board at the time that a
written employment policy or collective bargaining agreement
described in subsection (1) of this section is adopted or
changed. The notice must specifically indicate whether the
agreement is as described in subsection (2)(a) or (b) 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. + }
' { + SECTION 35. + } { + Transitional rule. A participating
public employer that is paying employee contributions on behalf
of employees of the public employer under the provisions of ORS
238.205 on the day immediately preceding the effective date of
this 2003 Act, whether by reason of having agreed to 'pick-up' or
by reason of having agreed to assume or pay those contributions:
' (1) Must make the employee contributions required by section
32 of this 2003 Act until December 31, 2005; and
' (2) Must continue to make the employee contributions required
by section 32 of this 2003 Act after December 31, 2005, until
such time as the public employer gives notice of an adoption or
change as provided in section 34 (3) of this 2003 Act. + }
'
{ + (Employer Contributions) + }
' { + SECTION 36. + } { + Employer contributions. (1) A
participating public employer may agree, by a written employment
policy or agreement, to make employer contributions for members
of the individual account program employed by the employer. The
percentage of salary paid as employer contributions may not be
less than one percent of salary or more than six percent of
salary, and must be a whole number. A participating public
employer may make an agreement under this section for specific
groups of employees employed by the public employer.
' (2) If a participating public employer makes employer
contributions under this section and the member for which the
contributions are made fails to vest in the employer account
under the provisions of section 31 of this 2003 Act, the Public
Employees Retirement Board shall refund the contributions in the
employer account to the public employer or apply the
contributions in the employer account against other obligations
of the employer under the Oregon Retirement Plan. + }
'
{ + (Individual Accounts) + }
' { + SECTION 37. + } { + Individual accounts established.
(1) Upon any contributions being made to the individual account
program by or on behalf of a member of the program, the Public
Employees Retirement Board shall create the account or accounts
described in this section. Each account shall be adjusted at
least annually in accordance with rules adopted by the board to
reflect any net earnings or losses on those contributions and to
pay the reasonable administrative costs of maintaining the
program to the extent the earnings on the assets of the program
are insufficient to pay those costs. The adjustments described in
this subsection shall continue until the account is distributed
to the member or forfeited.
' (2) The board shall establish an employee account, which
shall consist of the employee contributions made by or on behalf
of the member as adjusted under subsection (1) of this section.
' (3) If the public employer agrees to make employer
contributions under section 36 of this 2003 Act, the board shall
establish an employer account, which shall consist of the
employer contributions made on behalf of the member as adjusted
under subsection (1) of this section.
' (4) If the board accepts rollover contributions on behalf of
the member, the board shall establish a rollover account, which
shall consist of the rollover contributions made by the member as
adjusted under subsection (1) of this section. Contributions and
the earnings attributable to the contributions must be accounted
for separately.
' (5) The board shall provide an annual statement to each
active and inactive member of the program that reflects the
amount credited to the accounts established under this section.
The statement shall reflect whether the member is vested in the
employer account under the provisions of section 31 of this 2003
Act. + }
'
{ + (Rollover Contributions) + }
' { + SECTION 38. + } { + Rollover contributions. (1) The
Public Employees Retirement Board may accept rollover
contributions from a member of the individual account program or
from an eligible retirement plan from which the member is
entitled to an eligible rollover distribution. The board may
accept rollover contributions under this section only if the
amounts contributed qualify as eligible rollover distributions
under the federal income tax laws governing tax-qualified
retirement plans and, if the rollover contribution is made by the
member, the contribution is paid to the individual account
program within the time limits established by the federal income
tax laws governing tax-qualified retirement plans.
' (2) The board shall adopt rules and establish procedures for
determining whether to accept a rollover contribution under this
section and shall require such documentation as may be necessary
to ensure that the receipt of a rollover contribution does not
jeopardize the status of the individual account program as a
tax-qualified governmental plan. + }
'
{ + (Limitation on Contributions) + }
' { + SECTION 39. + } { + Limitation on contributions.
Notwithstanding any other provision of sections 29 to 43 of this
2003 Act, the annual addition to the employee and employer
accounts of a member of the individual account program for a
calendar year, together with the annual additions to the accounts
of the member under any other defined contribution plan
maintained by the participating public employer for a calendar
year, may not exceed the lesser of $40,000, or 100 percent of the
member's compensation for that calendar year. For purposes of
this section, 'annual addition' has the meaning given that term
in 26 U.S.C. 415(c)(2), as in effect on the effective date of
this 2003 Act, and 'compensation' has the meaning given the term
'participant's compensation' in 26 U.S.C. 415(c)(3), as in
effect on the effective date of this 2003 Act. The Public
Employees Retirement Board shall adopt rules for the
administration of this limitation, including adjustments in the
annual dollar limitation to reflect cost-of-living adjustments
authorized by the Internal Revenue Service. + }
'
{ + (Withdrawal by Inactive Member) + }
' { + SECTION 40. + } { + Distribution of accounts to
inactive member. (1) An inactive member of the individual
account program may elect at any time to receive a distribution
of the amounts in the member's employee account, rollover account
and employer account to the extent the member is vested in those
accounts under section 31 of this 2003 Act.
' (2) If an inactive member of the individual account program
who is not vested in the employer account receives a distribution
under subsection (1) of this section, the employer account of the
member is permanently forfeited as of the date of the
distribution.
' (3) If an inactive member receives a distribution under
subsection (1) of this section and is subsequently reemployed by
a participating public employer, any service performed before the
date the member became an inactive member may not be used toward
the period of service required for vesting in the employer
account under section 31 of this 2003 Act. + }
'
{ + (Defined Contribution Benefit) + }
' { + SECTION 41. + } { + Payment of accounts at retirement.
(1) Upon retirement on or after the earliest retirement date, as
described in section 16 of this 2003 Act, a member of the
individual account program shall receive in a lump sum the
amounts in the member's employee account, rollover account and
employer account to the extent the member is vested in those
accounts under section 31 of this 2003 Act.
' (2) In lieu of a lump sum payment under subsection (1) of
this section, a member of the individual account program may
elect to receive the amounts in the member's employee account and
employer account, to the extent the member is vested in those
accounts under section 31 of this 2003 Act, in substantially
equal installments paid over a period of 5, 10, 15 or 20 years.
Installments may be made on a monthly, quarterly or annual basis.
In no event may the period selected by the member exceed the time
allowed by the minimum distribution requirements described in
subsection (4) of this section. The Public Employees Retirement
Board shall by rule establish the manner in which installments
will be adjusted to reflect investment gains and losses on the
unpaid balance during the payout period elected by the member
under this subsection.
' (3) A member of the individual account program electing to
receive installments under subsection (2) of this section must
designate a beneficiary or beneficiaries. In the event the member
dies before all amounts in the employee and vested employer
accounts are paid, all remaining installment payments shall be
made to the beneficiary or beneficiaries designated by the
member. A beneficiary may elect to receive a lump sum
distribution of the remaining amounts.
' (4) Notwithstanding any other provision of sections 29 to 43
of this 2003 Act, the entire interest of a member of the
individual account program must be distributed over a time period
commencing no later than the latest retirement date set forth in
section 17 of this 2003 Act, and must be distributed in a manner
that satisfies all other minimum distribution requirements of 26
U.S.C. 401(a)(9) and regulations implementing that section, as in
effect on the effective date of this 2003 Act. The board shall
adopt rules implementing those minimum distribution
requirements. + }
' { + SECTION 42. + } { + Death benefits. (1) If a member
of the individual account program dies before retirement, the
amounts in the member's employee account, rollover account and
employer account, to the extent the member is vested in those
accounts under section 31 of this 2003 Act, shall be paid in a
lump sum to the beneficiary or beneficiaries designated by the
member for the purposes of this section.
' (2) If a member of the individual account program is married
at the time of death, or there exists at the time of death any
other person who is constitutionally required to be treated in
the same manner as a spouse for the purpose of retirement
benefits, the spouse or other person shall be the beneficiary for
purposes of the death benefit payable under this section unless
the spouse or other person consents to the designation of a
different beneficiary or beneficiaries before the designation has
been made and the consent has not been revoked by the spouse or
other person as of the time of the member's death. Consent and
revocation of consent must be in writing, acknowledged by a
notary public, and submitted to the Public Employees Retirement
Board in accordance with rules adopted by the board. If the
member's spouse is designated as the member's beneficiary and the
marriage of the member and spouse is subsequently dissolved, the
former spouse shall be treated as predeceasing the member for
purposes of this section, unless the member expressly designates
the former spouse as beneficiary after the effective date of the
dissolution or the former spouse is required to be designated as
a beneficiary under the provisions of ORS 238.465.
' (3) For purposes of this section and section 41 (3) of this
2003 Act, if a member fails to designate a beneficiary, or if the
person or persons designated do not survive the member, the death
benefit provided for in this section shall be paid to the
following person or persons, in the following order of priority:
' (a) The member's surviving spouse or other person who is
constitutionally required to be treated in the same manner as a
spouse;
' (b) The member's surviving children, in equal shares; or
' (c) The member's estate.
' (4) The entire amount of a deceased member's vested accounts
must be distributed by December 31 of the fifth calendar year
after the year in which the member died. Notwithstanding any
other provision of sections 1 to 45 of this 2003 Act,
distributions of death benefits under the individual account
program must comply with the minimum distribution requirements of
26 U.S.C. 401(a)(9) and the regulations implementing that
section, as in effect on the effective date of this 2003 Act. The
Public Employees Retirement Board shall adopt rules implementing
those minimum distribution requirements. + }
' { + SECTION 43. + } { + Credit for service in uniformed
services. (1) Notwithstanding any other provision of sections 29
to 43 of this 2003 Act, an eligible employee who leaves a
qualifying position for the purpose of performing service in the
uniformed services, and who subsequently returns to employment
with a participating public employer with reemployment rights
under federal law, is entitled to credit toward the probationary
period required by section 29 of this 2003 Act, credit toward the
vesting requirements of section 31 of this 2003 Act and
contributions under rules adopted by the Public Employees
Retirement Board pursuant to subsection (2) of this section.
' (2) The board shall adopt rules establishing contributions
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 benefits and service credit for any period of service
in the uniformed services, including 26 U.S.C. 414(u), as in
effect on the effective date of this 2003 Act. Contributions and
service credit under rules adopted by the board pursuant to this
subsection may not exceed contributions and service credit
required under federal law for periods of service in the
uniformed services. + }
'
{ + DIRECT ROLLOVERS + }
' { + SECTION 44. + } { + Direct rollovers. (1) To the
extent required by law, and except as otherwise provided by rules
adopted by the Public Employees Retirement Board under subsection
(4) of this section, any portion of a distribution of benefits
described in subsection (2) of this section shall, at the
election of and in lieu of distribution to the distributee, be
paid directly to an eligible retirement plan specified by the
distributee.
' (2) The provisions of subsection (1) of this section apply to
a distribution of any benefit under the pension program or the
individual account program except:
' (a) A distribution that is one of a series of substantially
equal periodic payments made at least annually for the life or
life expectancy of the distributee, or for the joint lives or
life expectancies of the distributee and a designated
beneficiary;
' (b) A distribution that is one of a series of substantially
equal periodic payments made at least annually for a specified
period of 10 years or more; and
' (c) A distribution to the extent that the distribution is
required under 26 U.S.C. 401(a)(9).
' (3) The provisions of subsection (1) of this section apply to
any portion of a distribution of benefits under the pension
program or the individual account program even though the portion
consists of after-tax employee contributions that are not
includable in gross income. Any portion of a distribution that
consists of after-tax employee contributions that are not
includable in gross income may be transferred only to an
individual retirement account or annuity described in 26
U.S.C. 408(a) or (b), or to a qualified defined contribution plan
described in 26 U.S.C. 401(a) or 403(a) that agrees to account
separately for amounts transferred, including accounting
separately for the portion of the distribution that is includable
in gross income and the portion of the distribution that is not
includable in gross income. The amount transferred shall be
treated as consisting first of the portion of the distribution
that is includable in gross income, determined without regard to
26 U.S.C. 402(c)(1).
' (4) The board shall adopt rules implementing the direct
rollover requirements of 26 U.S.C. 401(a)(31) and the regulations
implementing that section, and may adopt administrative
exceptions to the direct rollover requirements to the extent
permitted by 26 U.S.C. 401(a)(31) and the regulations
implementing that section.
' (5) All references in this section to federal laws and
regulations are to the laws and regulations in effect on the
effective date of this 2003 Act.
' (6) For purposes of this section:
' (a) 'Distributee' means a member, a member's surviving spouse
or a member's alternate payee under ORS 238.465.
' (b) 'Eligible retirement plan' means:
' (A) An individual retirement account described in 26
U.S.C. 408(a);
' (B) An individual retirement annuity described in 26
U.S.C. 408(b), other than an endowment contract;
' (C) A qualified trust under 26 U.S.C. 401(a), that is a
defined contribution plan and permits the acceptance of rollover
contributions;
' (D) An annuity plan described in 26 U.S.C. 403(a);
' (E) An eligible deferred compensation plan described in 26
U.S.C. 457(b) that is maintained by an eligible governmental
employer described in 26 U.S.C. 457(e)(1)(A) and that agrees to
account separately for amounts transferred into such plan from
the distributing plan; or
' (F) An annuity contract described in 26 U.S.C. 403(b). + }
'
{ + RULES + }
' { + SECTION 44a. + } { + Rules for Oregon Retirement
Plan. + } { + (1) The Public Employees Retirement Board shall
adopt rules for the administration of sections 1 to 45 of this
2003 Act.
' (2) All rules adopted by the board under this section become
part of the written plan document for the purpose of the status
of the pension program and the individual account program as
qualified governmental retirement plans and trusts under the
Internal Revenue Code and under regulations adopted pursuant to
the Internal Revenue Code. + }
'
{ + CHANGES TO OREGON RETIREMENT PLAN + }
' { + SECTION 45. + } { + Contract rights under Oregon
Retirement Plan. The Legislative Assembly may change the
benefits payable to persons who become members of the Public
Employees Retirement System on or after the effective date of
this 2003 Act, as described in section 2 of this 2003 Act, as
long as the change applies only to benefits attributable to
service performed and salary earned on or after the date the
change is made. + }
'
{ + TAX QUALIFICATION + }
' { + SECTION 46. + } { + As soon as practicable after the
effective date of this 2003 Act, the Public Employees Retirement
Board shall submit the provisions of sections 1 to 45 of this
2003 Act to the Internal Revenue Service and seek approval of the
pension program and individual account program as tax-qualified
governmental retirement plans and trusts under the Internal
Revenue Code. + }
' { + NOTE: + } Section 47 was deleted by amendment.
Subsequent sections were not renumbered.
'
{ + CONFORMING AMENDMENTS + }
' { + SECTION 48. + } ORS 169.810 is amended to read:
' 169.810. (1) Assumption by the regional correctional facility
of those custodial duties formerly performed by a county or city
jail constitutes an assumption of duties by a public employer
subject to ORS 236.610 to 236.640.
' (2) An employee who transfers from employment at a county or
city jail to employment at a regional correctional facility
operated by the county or city by which the employee has been
employed shall be accorded the following rights:
' (a) If a trial or probationary service period is required for
employment at the county or city jail, the period of county or
city employment of the employee shall apply to that requirement.
' (b) An employee who transfers from employment at a county or
city jail to employment at the regional correctional facility
shall retain accumulated unused sick leave with pay and the
accumulated unused vacation with pay to which the employee was
entitled under county or city employment on the day before the
transfer that are supported by written records of accumulation
and use pursuant to a plan formally adopted and applicable to the
employee under county or city employment.
' (c) Notwithstanding any other provision of law applicable to
a retirement system for county employees or city employees, an
employee who transfers from employment at a county or city jail
to employment at the regional correctional facility who was
participating in a retirement system under county or city
employment may elect, not later than the first day of the month
following the month in which the employee transfers, to continue
under the retirement system in which participating and not to
become, if eligible, a member of another retirement system. The
election shall be made in writing and shall be submitted to the
regional correctional facility administrator, the Public
Employees Retirement Board and the governing body of the counties
and cities that operate the regional correctional facility.
' (d) If an employee elects to continue under the retirement
system in which participating under county or city employment,
the employee shall continue to make required contributions to
that system and the administration of the regional correctional
facility shall make contributions on behalf of the employee
required of an employer participating in that system.
' (e) If an employee fails to elect to continue under the
retirement system in which participating under county or city
employment as provided in paragraph (c) of this subsection or was
not participating in a retirement system under county or city
employment, the employee shall become, if eligible, a member of
the Public Employees Retirement System. If the employee is
eligible to become a member of the Public Employees Retirement
System, the period of continuous service of the employee under
county or city employment immediately before the transfer of the
employee shall apply to the six months' service requirement of
ORS 238.015 { + or section 5 or 29 of this 2003 Act + }.
' (3) The county or city employment records, or a copy thereof,
applicable to an employee transferred under subsection (2) of
this section shall be provided by the person having custody of
the records to the regional correctional facility administrator.
' { + SECTION 49. + } ORS 192.502 is amended to read:
' 192.502. The following public records are exempt from
disclosure under ORS 192.410 to 192.505:
' (1) Communications within a public body or between public
bodies of an advisory nature to the extent that they cover other
than purely factual materials and are preliminary to any final
agency determination of policy or action. This exemption shall
not apply unless the public body shows that in the particular
instance the public interest in encouraging frank communication
between officials and employees of public bodies clearly
outweighs the public interest in disclosure.
' (2) Information of a personal nature such as but not limited
to that kept in a personal, medical or similar file, if the
public disclosure thereof would constitute an unreasonable
invasion of privacy, unless the public interest by clear and
convincing evidence requires disclosure in the particular
instance. The party seeking disclosure shall have the burden of
showing that public disclosure would not constitute an
unreasonable invasion of privacy.
' (3)(a) Public body employee or volunteer addresses, dates of
birth and telephone numbers contained in personnel records
maintained by the public body that is the employer or the
recipient of volunteer services. This exemption does not apply:
' (A) To such employees or volunteers if they are elected
officials, except that a judge or district attorney subject to
election may seek to exempt the judge's or district attorney's
address or telephone number, or both, under the terms of ORS
192.445;
' (B) To such employees or volunteers to the extent that the
party seeking disclosure shows by clear and convincing evidence
that the public interest requires disclosure in a particular
instance; or
' (C) To a substitute teacher as defined in ORS 342.815 when
requested by a professional education association of which the
substitute teacher may be a member.
' (b) Nothing in this subsection exempting employee records
from disclosure relieves a public employer of any duty under ORS
243.650 to 243.782.
' (4) Information submitted to a public body in confidence and
not otherwise required by law to be submitted, where such
information should reasonably be considered confidential, the
public body has obliged itself in good faith not to disclose the
information, and when the public interest would suffer by the
disclosure.
' (5) Information or records of the Department of Corrections,
including the State Board of Parole and Post-Prison Supervision,
to the extent that disclosure thereof would interfere with the
rehabilitation of a person in custody of the department or
substantially prejudice or prevent the carrying out of the
functions of the department, if the public interest in
confidentiality clearly outweighs the public interest in
disclosure.
' (6) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services in the administration of ORS chapters 723 and
725 not otherwise required by law to be made public, to the
extent that the interests of lending institutions, their
officers, employees and customers in preserving the
confidentiality of such information outweighs the public interest
in disclosure.
' (7) Reports made to or filed with the court under ORS 137.077
or 137.530.
' (8) Any public records or information the disclosure of which
is prohibited by federal law or regulations.
' (9) Public records or information the disclosure of which is
prohibited or restricted or otherwise made confidential or
privileged under Oregon law.
' (10) Public records or information described in this section,
furnished by the public body originally compiling, preparing or
receiving them to any other public officer or public body in
connection with performance of the duties of the recipient, if
the considerations originally giving rise to the confidential or
exempt nature of the public records or information remain
applicable.
' (11) Records of the Energy Facility Siting Council concerning
the review or approval of security programs pursuant to ORS
469.530.
' (12) Employee and retiree address, telephone number and other
nonfinancial membership records and employee financial records
maintained by the Public Employees Retirement System pursuant to
ORS chapter 238 and { - ORS 238.410 - } { + sections 1 to 45
of this 2003 Act + }.
' (13) Records submitted by private persons or businesses to
the State Treasurer or the Oregon Investment Council relating to
proposed acquisition, exchange or liquidation of public
investments under ORS chapter 293 may be treated as exempt from
disclosure when and only to the extent that disclosure of such
records reasonably may be expected to substantially limit the
ability of the Oregon Investment Council to effectively compete
or negotiate for, solicit or conclude such transactions. Records
which relate to concluded transactions are not subject to this
exemption.
' (14) The monthly reports prepared and submitted under ORS
293.761 and 293.766 concerning the Public Employees Retirement
Fund and the Industrial Accident Fund may be uniformly treated as
exempt from disclosure for a period of up to 90 days after the
end of the calendar quarter.
' (15) Reports of unclaimed property filed by the holders of
such property to the extent permitted by ORS 98.352.
' (16) The following records, communications and information
submitted to the Oregon Economic and Community Development
Commission, the Economic and Community Development Department,
the State Department of Agriculture, the Oregon Growth Account
Board, the Port of Portland or other ports, as defined in ORS
777.005, by applicants for investment funds, loans or services
including, but not limited to, those described in ORS 285A.224:
' (a) Personal financial statements.
' (b) Financial statements of applicants.
' (c) Customer lists.
' (d) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this paragraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
' (e) Production, sales and cost data.
' (f) Marketing strategy information that relates to
applicant's plan to address specific markets and applicant's
strategy regarding specific competitors.
' (17) Records, reports or returns submitted by private
concerns or enterprises required by law to be submitted to or
inspected by a governmental body to allow it to determine the
amount of any transient lodging tax payable and the amounts of
such tax payable or paid, to the extent that such information is
in a form which would permit identification of the individual
concern or enterprise. Nothing in this subsection shall limit the
use which can be made of such information for regulatory purposes
or its admissibility in any enforcement proceedings. The public
body shall notify the taxpayer of the delinquency immediately by
certified mail. However, in the event that the payment or
delivery of transient lodging taxes otherwise due to a public
body is delinquent by over 60 days, the public body shall
disclose, upon the request of any person, the following
information:
' (a) The identity of the individual concern or enterprise that
is delinquent over 60 days in the payment or delivery of the
taxes.
' (b) The period for which the taxes are delinquent.
' (c) The actual, or estimated, amount of the delinquency.
' (18) All information supplied by a person under ORS 151.430
to 151.491 for the purpose of requesting court-appointed counsel,
and all information supplied to the State Court Administrator
from whatever source for the purpose of verifying indigency of a
person pursuant to ORS 151.430 to 151.491.
' (19) Workers' compensation claim records of the Department of
Consumer and Business Services, except in accordance with rules
adopted by the Director of the Department of Consumer and
Business Services, in any of the following circumstances:
' (a) When necessary for insurers, self-insured employers and
third party claim administrators to process workers' compensation
claims.
' (b) When necessary for the director, other governmental
agencies of this state or the United States to carry out their
duties, functions or powers.
' (c) When the disclosure is made in such a manner that the
disclosed information cannot be used to identify any worker who
is the subject of a claim.
' (d) When a worker or the worker's representative requests
review of the worker's claim record.
' (20) Sensitive business records or financial or commercial
information of the Oregon Health and Science University that is
not customarily provided to business competitors.
' (21) Records of Oregon Health and Science University
regarding candidates for the position of president of the
university.
' (22) The records of a library, including circulation records,
showing use of specific library material by a named person or
consisting of the name of a library patron together with the
address or telephone number, or both, of the patron.
' (23) The following records, communications and information
submitted to the Housing and Community Services Department by
applicants for and recipients of loans, grants and tax credits:
' (a) Personal and corporate financial statements and
information, including tax returns.
' (b) Credit reports.
' (c) Project appraisals.
' (d) Market studies and analyses.
' (e) Articles of incorporation, partnership agreements and
operating agreements.
' (f) Commitment letters.
' (g) Project pro forma statements.
' (h) Project cost certifications and cost data.
' (i) Audits.
' (j) Project tenant correspondence requested to be
confidential.
' (k) Tenant files relating to certification.
' (L) Housing assistance payment requests.
' (24) Raster geographic information system (GIS) digital
databases, provided by private forestland owners or their
representatives, voluntarily and in confidence to the State
Forestry Department, that is not otherwise required by law to be
submitted.
' (25) Sensitive business, commercial or financial information
furnished to or developed by a public body engaged in the
business of providing electricity or electricity services, if the
information is directly related to a transaction described in ORS
261.348, or if the information is directly related to a bid,
proposal or negotiations for the sale or purchase of electricity
or electricity services, and disclosure of the information would
cause a competitive disadvantage for the public body or its
retail electricity customers. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
' (26) Sensitive business, commercial or financial information
furnished to or developed by the City of Klamath Falls, acting
solely in connection with the ownership and operation of the
Klamath Cogeneration Project, if the information is directly
related to a transaction described in ORS 225.085 and disclosure
of the information would cause a competitive disadvantage for the
Klamath Cogeneration Project. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
' (27) Personally identifiable information about customers of a
municipal electric utility or a people's utility district. The
utility or district may, however, release such information to a
third party if the customer consents in writing or
electronically, if the disclosure is necessary to render utility
or district services to the customer, or if the disclosure is
required pursuant to a court order. The utility or district may
charge as appropriate for the costs of providing such
information. The utility or district may make customer records
available to third party credit agencies on a regular basis in
connection with the establishment and management of customer
accounts or in the event such accounts are delinquent.
' (28) A record of the street and number of an employee's
address submitted to a special district to obtain assistance in
promoting an alternative to single occupant motor vehicle
transportation.
' (29) Sensitive business records, capital development plans or
financial or commercial information of Oregon Corrections
Enterprises that is not customarily provided to business
competitors.
' (30) Documents, materials or other information submitted to
the Director of the Department of Consumer and Business Services
in confidence by a state, federal, foreign or international
regulatory or law enforcement agency or by the National
Association of Insurance Commissioners, its affiliates or
subsidiaries under ORS 646.380 to 646.396, 697.005 to 697.095,
697.602 to 697.842, 705.137, 717.200 to 717.320, 717.900 or
717.905, ORS chapter 59, 722, 723, 725 or 726, the Bank Act or
the Insurance Code when:
' (a) The document, material or other information is received
upon notice or with an understanding that it is confidential or
privileged under the laws of the jurisdiction that is the source
of the document, material or other information; and
' (b) The director has obligated the Department of Consumer and
Business Services not to disclose the document, material or other
information.
' (31) A county elections security plan developed and filed
under ORS 254.074.
' { + SECTION 50. + } ORS 192.502, as amended by sections 80
and 81, chapter 962, Oregon Laws 2001, is amended to read:
' 192.502. The following public records are exempt from
disclosure under ORS 192.410 to 192.505:
' (1) Communications within a public body or between public
bodies of an advisory nature to the extent that they cover other
than purely factual materials and are preliminary to any final
agency determination of policy or action. This exemption shall
not apply unless the public body shows that in the particular
instance the public interest in encouraging frank communication
between officials and employees of public bodies clearly
outweighs the public interest in disclosure.
' (2) Information of a personal nature such as but not limited
to that kept in a personal, medical or similar file, if the
public disclosure thereof would constitute an unreasonable
invasion of privacy, unless the public interest by clear and
convincing evidence requires disclosure in the particular
instance. The party seeking disclosure shall have the burden of
showing that public disclosure would not constitute an
unreasonable invasion of privacy.
' (3)(a) Public body employee or volunteer addresses, dates of
birth and telephone numbers contained in personnel records
maintained by the public body that is the employer or the
recipient of volunteer services. This exemption does not apply:
' (A) To such employees or volunteers if they are elected
officials, except that a judge or district attorney subject to
election may seek to exempt the judge's or district attorney's
address or telephone number, or both, under the terms of ORS
192.445;
' (B) To such employees or volunteers to the extent that the
party seeking disclosure shows by clear and convincing evidence
that the public interest requires disclosure in a particular
instance; or
' (C) To a substitute teacher as defined in ORS 342.815 when
requested by a professional education association of which the
substitute teacher may be a member.
' (b) Nothing in this subsection exempting employee records
from disclosure relieves a public employer of any duty under ORS
243.650 to 243.782.
' (4) Information submitted to a public body in confidence and
not otherwise required by law to be submitted, where such
information should reasonably be considered confidential, the
public body has obliged itself in good faith not to disclose the
information, and when the public interest would suffer by the
disclosure.
' (5) Information or records of the Department of Corrections,
including the State Board of Parole and Post-Prison Supervision,
to the extent that disclosure thereof would interfere with the
rehabilitation of a person in custody of the department or
substantially prejudice or prevent the carrying out of the
functions of the department, if the public interest in
confidentiality clearly outweighs the public interest in
disclosure.
' (6) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services in the administration of ORS chapters 723 and
725 not otherwise required by law to be made public, to the
extent that the interests of lending institutions, their
officers, employees and customers in preserving the
confidentiality of such information outweighs the public interest
in disclosure.
' (7) Reports made to or filed with the court under ORS 137.077
or 137.530.
' (8) Any public records or information the disclosure of which
is prohibited by federal law or regulations.
' (9) Public records or information the disclosure of which is
prohibited or restricted or otherwise made confidential or
privileged under Oregon law.
' (10) Public records or information described in this section,
furnished by the public body originally compiling, preparing or
receiving them to any other public officer or public body in
connection with performance of the duties of the recipient, if
the considerations originally giving rise to the confidential or
exempt nature of the public records or information remain
applicable.
' (11) Records of the Energy Facility Siting Council concerning
the review or approval of security programs pursuant to ORS
469.530.
' (12) Employee and retiree address, telephone number and other
nonfinancial membership records and employee financial records
maintained by the Public Employees Retirement System pursuant to
ORS chapter 238 and { - ORS 238.410 - } { + sections 1 to 45
of this 2003 Act + }.
' (13) Records submitted by private persons or businesses to
the State Treasurer or the Oregon Investment Council relating to
proposed acquisition, exchange or liquidation of public
investments under ORS chapter 293 may be treated as exempt from
disclosure when and only to the extent that disclosure of such
records reasonably may be expected to substantially limit the
ability of the Oregon Investment Council to effectively compete
or negotiate for, solicit or conclude such transactions. Records
which relate to concluded transactions are not subject to this
exemption.
' (14) The monthly reports prepared and submitted under ORS
293.761 and 293.766 concerning the Public Employees Retirement
Fund and the Industrial Accident Fund may be uniformly treated as
exempt from disclosure for a period of up to 90 days after the
end of the calendar quarter.
' (15) Reports of unclaimed property filed by the holders of
such property to the extent permitted by ORS 98.352.
' (16) The following records, communications and information
submitted to the Oregon Economic and Community Development
Commission, the Economic and Community Development Department,
the State Department of Agriculture, the Oregon Growth Account
Board, the Port of Portland or other ports, as defined in ORS
777.005, by applicants for investment funds, loans or services
including, but not limited to, those described in ORS 285A.224:
' (a) Personal financial statements.
' (b) Financial statements of applicants.
' (c) Customer lists.
' (d) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this paragraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
' (e) Production, sales and cost data.
' (f) Marketing strategy information that relates to
applicant's plan to address specific markets and applicant's
strategy regarding specific competitors.
' (17) Records, reports or returns submitted by private
concerns or enterprises required by law to be submitted to or
inspected by a governmental body to allow it to determine the
amount of any transient lodging tax payable and the amounts of
such tax payable or paid, to the extent that such information is
in a form which would permit identification of the individual
concern or enterprise. Nothing in this subsection shall limit the
use which can be made of such information for regulatory purposes
or its admissibility in any enforcement proceedings. The public
body shall notify the taxpayer of the delinquency immediately by
certified mail. However, in the event that the payment or
delivery of transient lodging taxes otherwise due to a public
body is delinquent by over 60 days, the public body shall
disclose, upon the request of any person, the following
information:
' (a) The identity of the individual concern or enterprise that
is delinquent over 60 days in the payment or delivery of the
taxes.
' (b) The period for which the taxes are delinquent.
' (c) The actual, or estimated, amount of the delinquency.
' (18) All information supplied by a person under ORS 151.485
for the purpose of requesting appointed counsel, and all
information supplied to the court from whatever source for the
purpose of verifying the financial eligibility of a person
pursuant to ORS 151.485.
' (19) Workers' compensation claim records of the Department of
Consumer and Business Services, except in accordance with rules
adopted by the Director of the Department of Consumer and
Business Services, in any of the following circumstances:
' (a) When necessary for insurers, self-insured employers and
third party claim administrators to process workers' compensation
claims.
' (b) When necessary for the director, other governmental
agencies of this state or the United States to carry out their
duties, functions or powers.
' (c) When the disclosure is made in such a manner that the
disclosed information cannot be used to identify any worker who
is the subject of a claim.
' (d) When a worker or the worker's representative requests
review of the worker's claim record.
' (20) Sensitive business records or financial or commercial
information of the Oregon Health and Science University that is
not customarily provided to business competitors.
' (21) Records of Oregon Health and Science University
regarding candidates for the position of president of the
university.
' (22) The records of a library, including circulation records,
showing use of specific library material by a named person or
consisting of the name of a library patron together with the
address or telephone number, or both, of the patron.
' (23) The following records, communications and information
submitted to the Housing and Community Services Department by
applicants for and recipients of loans, grants and tax credits:
' (a) Personal and corporate financial statements and
information, including tax returns.
' (b) Credit reports.
' (c) Project appraisals.
' (d) Market studies and analyses.
' (e) Articles of incorporation, partnership agreements and
operating agreements.
' (f) Commitment letters.
' (g) Project pro forma statements.
' (h) Project cost certifications and cost data.
' (i) Audits.
' (j) Project tenant correspondence requested to be
confidential.
' (k) Tenant files relating to certification.
' (L) Housing assistance payment requests.
' (24) Raster geographic information system (GIS) digital
databases, provided by private forestland owners or their
representatives, voluntarily and in confidence to the State
Forestry Department, that is not otherwise required by law to be
submitted.
' (25) Sensitive business, commercial or financial information
furnished to or developed by a public body engaged in the
business of providing electricity or electricity services, if the
information is directly related to a transaction described in ORS
261.348, or if the information is directly related to a bid,
proposal or negotiations for the sale or purchase of electricity
or electricity services, and disclosure of the information would
cause a competitive disadvantage for the public body or its
retail electricity customers. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
' (26) Sensitive business, commercial or financial information
furnished to or developed by the City of Klamath Falls, acting
solely in connection with the ownership and operation of the
Klamath Cogeneration Project, if the information is directly
related to a transaction described in ORS 225.085 and disclosure
of the information would cause a competitive disadvantage for the
Klamath Cogeneration Project. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
' (27) Personally identifiable information about customers of a
municipal electric utility or a people's utility district. The
utility or district may, however, release such information to a
third party if the customer consents in writing or
electronically, if the disclosure is necessary to render utility
or district services to the customer, or if the disclosure is
required pursuant to a court order. The utility or district may
charge as appropriate for the costs of providing such
information. The utility or district may make customer records
available to third party credit agencies on a regular basis in
connection with the establishment and management of customer
accounts or in the event such accounts are delinquent.
' (28) A record of the street and number of an employee's
address submitted to a special district to obtain assistance in
promoting an alternative to single occupant motor vehicle
transportation.
' (29) Sensitive business records, capital development plans or
financial or commercial information of Oregon Corrections
Enterprises that is not customarily provided to business
competitors.
' (30) Documents, materials or other information submitted to
the Director of the Department of Consumer and Business Services
in confidence by a state, federal, foreign or international
regulatory or law enforcement agency or by the National
Association of Insurance Commissioners, its affiliates or
subsidiaries under ORS 646.380 to 646.396, 697.005 to 697.095,
697.602 to 697.842, 705.137, 717.200 to 717.320, 717.900 or
717.905, ORS chapter 59, 722, 723, 725 or 726, the Bank Act or
the Insurance Code when:
' (a) The document, material or other information is received
upon notice or with an understanding that it is confidential or
privileged under the laws of the jurisdiction that is the source
of the document, material or other information; and
' (b) The director has obligated the Department of Consumer and
Business Services not to disclose the document, material or other
information.
' (31) A county elections security plan developed and filed
under ORS 254.074.
' { + SECTION 51. + } ORS 196.165 is amended to read:
' 196.165. (1) The Columbia River Gorge Commission established
under ORS 196.150 may designate its employees as employees and
the commission as an employer subject to the Oregon Public
Employees Retirement System under ORS chapter 238 { + and
sections 1 to 45 of this 2003 Act + } or as an employer and
employees subject to a retirement system provided by the State of
Washington under the laws of the State of Washington.
' (2) The commission may designate its employees as employees
eligible under benefit plans provided under ORS 243.105 to
243.285 or under benefit plans provided under the laws of the
State of Washington.
' { + SECTION 52. + } ORS 238.445 is amended to read:
' 238.445. (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 sections 1 to 45 of this 2003
Act + }, 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 sections 1 to 45 of this 2003 Act + }.
' (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 sections 1 to 45 of this 2003 Act + } 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.
' { + SECTION 53. + } ORS 238.455 is amended to read:
' 238.455. (1)(a) Whenever a member of the system is retired
for service and is entitled to receive a retirement allowance or
benefit which 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 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
which 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 the rate credited to the
Public Employees Retirement Fund for the prior year 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
sections 1 to 45 of this 2003 Act + } 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
sections 1 to 45 of this 2003 Act + }.
' { + SECTION 54. + } ORS 238.460 is amended to read:
' 238.460. (1) If receipt in full by a person of a retirement
allowance { + or other benefit + } under this chapter { + or
sections 1 to 45 of this 2003 Act + } 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
sections 1 to 45 of this 2003 Act + } 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 or 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.
' { + SECTION 55. + } ORS 238.465, as amended by section 89,
chapter 945, Oregon Laws 2001, is amended to read:
' 238.465. (1) Notwithstanding ORS 238.445 or any other
provision of law, payments under this chapter { + or sections 1
to 45 of this 2003 Act + } 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 sections 1 to 45 of this 2003
Act + } 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 court decree 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 court decree 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 decree, 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 sections 1
to 45 of this 2003 Act + }, 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 or 238.325 { + or section 20 or 41 of this
2003 Act + } 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 decree, 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 or 238.325 { + or section 20 or 41 of
this 2003 Act + } 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 decree's, order's or agreement's
distribution of the member's benefits under this chapter { + or
sections 1 to 45 of this 2003 Act + };
' (b) The establishing of criteria to determine whether
domestic relations decrees, orders and agreements comply with
this section; and
' (c) The definitions and procedures for the administration of
this section.
' (4) If a decree, 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 and 238.395 { + and sections 25
and 42 of this 2003 Act + }, 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 and 238.395 { + and sections 25 and 42 of this 2003
Act, + } shall constitute payment in full of the alternate
payee's interest under the decree, 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 decree, 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) As used in this section, 'court' means any court of
appropriate jurisdiction of this or any other state or of the
District of Columbia.
' { + SECTION 55a. + } ORS 238.600 is amended to read:
' 238.600. (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
ORS chapter 238 and sections 1 to 45 of this 2003 Act. + } Any
similar system being operated by a public employer on April 8,
1953, may be integrated into this system as hereinafter provided.
' (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.
' { + SECTION 56. + } ORS 238.610 is amended to read:
' 238.610. (1) The administrative expenses of the system shall
be paid from interest earned by the retirement fund; provided,
that if such interest be insufficient the expense in excess
thereof shall be paid from the contributions which this chapter
{ - requires - } { + and sections 24 and 25b of this 2003 Act
require + } participating employers to pay into the Public
Employees Retirement Fund.
' (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 retirement
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.
' { + SECTION 57. + } 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 { + and sections 1 to 45 of this 2003 Act + }, 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 pensions, + } 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 58. + } ORS 238.645 is amended to read:
' 238.645. The system shall be administered, subject to the
limitations of this chapter { + , sections 1 to 45 of this 2003
Act + } 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.
' { + SECTION 59. + } ORS 238.650 is amended to read:
' 238.650. (1) Subject to the limitations of this chapter { +
and sections 1 to 45 of this 2003 Act + }, 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 183.310 to 183.550.
' (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.
' { + SECTION 60. + } ORS 238.660 is amended to read:
' 238.660. (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
237.950 to 237.980 { + and sections 1 to 45 of this 2003
Act + }, 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 sections 1 to 45 of this
2003 Act + } 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 (1).
' (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 sections
1 to 45 of this 2003 Act 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 Retirement Plan established by sections 1 to 45 of this
2003 Act, 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
sections 1 to 45 of this 2003 Act as in effect on January 1,
2004. The board shall appoint a committee to advise the board on
legislative proposals for changes in the benefits provided under
this chapter and sections 1 to 45 of this 2003 Act. 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. + }
' { + SECTION 61. + } ORS 238.661 is amended to read:
' 238.661. 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 sections
1 to 45 of this 2003 Act + }.
' { + SECTION 62. + } ORS 238.665 is amended to read:
' 238.665. Contributions required by this chapter { + or
sections 1 to 45 of this 2003 Act + } 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.
' { + SECTION 63. + } ORS 238.675 is amended to read:
' 238.675. (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 section 6 or 30 of this
2003 Act + }; 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.
' { + SECTION 64. + } ORS 238.700 is amended to read:
' 238.700. All provisions of ORS 238.655, 238.705, 238.710 and
238.715 hereby are made applicable for enforcement of the
requirements of ORS chapter 238 { + and sections 1 to 45 of this
2003 Act + }.
' { + SECTION 65. + } ORS 238.705 is amended to read:
' 238.705. (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 sections 1 to 45 of this 2003 Act + }, 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.
' { + SECTION 66. + } ORS 238.715 is amended to read:
' 238.715. (1) If the Public Employees Retirement Board
determines that a member of the 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
sections 1 to 45 of this 2003 Act + }, 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 caused by a fraudulent or intentional act of the
person who received the payment, 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 board 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.
' { + SECTION 67. + } ORS 238.750 is amended to read:
' 238.750. This chapter { + and sections 1 to 45 of this 2003
Act + } shall be known as the Public Employes' Retirement Act of
1953.
' { + SECTION 68. + } ORS 243.105 is amended to read:
' 243.105. As used in ORS 243.105 to 243.285, unless the
context requires otherwise:
' (1) 'Benefit plan' includes, but is not limited to, contracts
for insurance or other benefit based on life; supplemental
medical, supplemental dental, optical, accidental death or
disability insurance; group medical, surgical, hospital or any
other remedial care recognized by state law; and related services
and supplies. 'Benefit plan' includes comparable benefits for
employees who rely on spiritual means of healing.
' (2) 'Board' means the Public Employees' Benefit Board.
' (3) '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,
or two or more companies or contractors acting together pursuant
to a joint venture, partnership or other joint means of
operation, or a board-approved guarantor of benefit plan coverage
and compensation.
' (4)(a) 'Eligible employee' means an officer or employee of a
state agency who elects to participate in one of the group
benefit plans described in ORS 243.135. The term includes state
officers and employees in the exempt, unclassified and classified
service, and state officers and employees, whether or not
retired, who:
' (A) Are receiving a service { - or - } { + retirement
allowance, a + } disability retirement allowance { + or a
pension + } under the Public Employees Retirement System or are
receiving a service { - or - } { + retirement allowance, a + }
disability retirement allowance or { + a + } pension under any
other retirement or disability benefit plan or system offered by
the State of Oregon for its officers and employees;
' (B) Are eligible to receive a service retirement allowance
under the Public Employees Retirement System and have reached
earliest retirement age under ORS chapter 238;
' { + (C) Are eligible to receive a pension under sections 5
to 27 of this 2003 Act, and have reached earliest retirement age
as described in section 16 of this 2003 Act; + } or
' { - (C) - } { + (D) + } Are eligible to receive a service
retirement allowance or pension under another retirement benefit
plan or system offered by the State of Oregon and have attained
earliest retirement age under the plan or system.
' (b) 'Eligible employee' does not include individuals:
' (A) Engaged as independent contractors;
' (B) Whose periods of employment in emergency work are on an
intermittent or irregular basis;
' (C) Who are employed on less than half-time basis unless the
individuals are employed in positions classified as job-sharing
positions or unless the individuals are defined as eligible under
rules of the board;
' (D) Appointed under ORS 240.309;
' (E) Provided sheltered employment or { - made-work - }
{ + make-work + } by the state in an employment or industries
program maintained for the benefit of such individuals; or
' (F) Provided student health care services in conjunction with
their enrollment as students at the state institutions of higher
education.
' (5) 'Family member' means an eligible employee's spouse and
any unmarried child or stepchild within age limits and other
conditions imposed by the board with regard to unmarried children
or stepchildren.
' (6) 'Payroll disbursing officer' means the officer or
official authorized to disburse moneys in payment of salaries and
wages of employees of a state agency.
' (7) 'Premium' means the monthly or other periodic charge for
a benefit plan.
' (8) 'State agency' means every state officer, board,
commission, department or other activity of state government.
' { + SECTION 69. + } ORS 243.800 is amended to read:
' 243.800. (1) Notwithstanding any provision of ORS chapter 238
or ORS 243.910 to 243.945 { + or sections 1 to 45 of this 2003
Act + }, the State Board of Higher Education may establish and
administer an optional retirement plan for administrative and
academic employees of the Oregon University System who are
eligible for membership in the Public Employees Retirement
System. The optional retirement plan must be a qualified plan
under the Internal Revenue Code, capable of accepting funds
transferred under subsection (7) of this section without the
transfer being treated as a taxable event under the Internal
Revenue Code, and willing to accept those funds. Retirement and
death benefits shall be provided under the plan by the purchase
of annuity contracts, fixed or variable or a combination thereof,
or by contracts for investments in mutual funds.
' (2) The State Board of Higher Education shall select at least
two life insurance companies providing fixed and variable
annuities and at least two investment companies providing mutual
funds, but not more than five companies in total, for the purpose
of providing benefits under the optional retirement plan
authorized by this section. The State Board of Higher Education
shall establish selection criteria for the purpose of this
subsection.
' (3) An administrative or academic employee may elect to
participate in an optional retirement plan offered under the
provisions of this section in the following manner:
' (a) An administrative or academic employee who is an active
member of the Public Employees Retirement System may make an
irrevocable election to participate in the plan within 180 days
after the plan's implementation date, effective as of the date of
election.
' (b) An employee, as defined in ORS 243.910 (2), who is an
active member of the Public Employees Retirement System and who
has elected, and not canceled that election, to be assisted by
the State Board of Higher Education under ORS 243.940 may make an
irrevocable election to participate in the plan within 180 days
of the plan's implementation date, effective as of the date of
election.
' (c) An administrative or academic employee who is hired after
the plan's implementation date may make an irrevocable election
to participate in the plan within the first six months of
employment, effective on the first of the month following six
full months of employment.
' (4) Administrative or academic employees who do not elect to
participate in an optional retirement plan:
' (a) Remain members of the Public Employees Retirement System
if they are members on the date the plan is implemented;
' (b) Continue to be assisted by the State Board of Higher
Education under ORS 243.920 if they are being so assisted; or
' (c) Become members of the Public Employees Retirement System
in accordance with ORS chapter 238 { + and sections 1 to 45 of
this 2003 Act + }, if they commence employment after the optional
plan is implemented.
' (5) Except as provided in subsection (6) of this section,
employees who elect to participate in the plan are ineligible for
active membership in the Public Employees Retirement System or
for any assistance by the State Board of Higher Education under
ORS 243.920 as long as those employees are employed in the Oregon
University System and the plan is in effect.
' (6)(a) An administrative or academic employee who elects to
participate in the optional retirement plan authorized by this
section and who has not made contributions to the Public
Employees Retirement System during each of five calendar years
shall be considered by the Public Employees Retirement Board to
be a terminated member under the provisions of ORS 238.095
{ + and section 6 of this 2003 Act + } effective as of the
effective date of the election, and the amount credited to the
member account of the member shall be transferred directly to the
optional retirement plan by the Public Employees Retirement Board
in the manner provided by subsection (7) of this section.
' (b) An administrative or academic employee who elects to
participate in the optional retirement plan authorized by this
section and who has made contributions to the Public Employees
Retirement System during each of five calendar years shall be
considered to be an inactive member by the Public Employees
Retirement Board and shall retain all the rights, privileges and
options under ORS chapter 238 { + or sections 1 to 45 of this
2003 Act + } unless the employee withdraws the amounts credited
to the member account of the member pursuant to ORS 238.265.
' (7) Any withdrawals from the Public Employees Retirement Fund
under subsection (6) of this section, whether by termination
under subsection (6)(a) of this section or by elective withdrawal
under subsection (6)(b) of this section, shall be transferred
directly to the optional retirement plan by the Public Employees
Retirement Board and shall not be made available to the employee.
' (8) An employee participating in the optional retirement plan
authorized by this section shall contribute monthly an amount
equal to the percentage of the employee's salary that the
employee would otherwise have contributed as an employee
contribution to the Public Employees Retirement System if the
employee had not elected to participate in the optional
retirement plan.
' (9) The State Board of Higher Education shall contribute
monthly to the optional retirement plan authorized under this
section the percentage of salary of each employee participating
in the plan equal to the percentage of salary that would
otherwise have been contributed as an employer contribution on
behalf of the employee to the Public Employees Retirement System
if the employee had not elected to participate in the optional
retirement plan.
' (10) Both employee and employer contributions to an optional
retirement plan authorized under this section shall be remitted
directly to the companies that have issued annuity contracts to
the participating employees or directly to the mutual funds.
' (11) Benefits under the optional retirement plan authorized
under this section are payable to employees who elect to
participate in the plan and their beneficiaries by the selected
annuity provider or mutual fund in accordance with the terms of
the annuity contracts or the terms of the contract with the
mutual fund. Employees electing to participate in the plan agree
that benefits payable under the plan are not obligations of the
State of Oregon or of the Public Employees Retirement System.
' { + SECTION 70. + } ORS 243.830 is amended to read:
' 243.830. An agreement executed pursuant to ORS 243.820 by an
employee who is subject to ORS chapter 238 { + or sections 1 to
45 of this 2003 Act, + } or a similar retirement program for
public employees { + , + } in no way affects the contributions to
be made or the benefits to be provided for such employee under
ORS chapter 238 { + , sections 1 to 45 of this 2003 Act + } or
the other similar program. Reduction of salary or foregoing a
salary increase by a stated amount under ORS 243.820 shall not be
deemed a reduction in salary for the purpose of such
contributions and benefits.
' { + SECTION 71. + } ORS 243.930 is amended to read:
' 243.930. (1) If an employee assisted under ORS 243.920 (1)
has made contributions to the Public Employees Retirement Fund
during each of five calendar years { - as provided in ORS
chapter 238 - } , the board shall contribute an amount toward the
purchase of the supplemental retirement benefits equal to the
contributions toward the purchase made by the employee on annual
salary in excess of $4,800. The amounts of those contributions by
the board shall be paid promptly by the board to the life
insurance or annuity company in accordance with the terms of the
applicable contract.
' (2) If an employee assisted under ORS 243.920 (1) has not
made contributions to the Public Employees Retirement Fund during
each of five calendar years { - as provided in ORS chapter
238 - } , the board shall contribute an amount toward the
purchase of the supplemental retirement benefits equal to that
which it would contribute for current service under the Public
Employees Retirement System with respect to the annual salary in
excess of $4,800 of the employee if the employee contributed
under the system on that part of the salary.
' (3) The amounts of contributions by the board under
subsection (2) of this section, at intervals designated by the
Public Employees Retirement Board, shall be paid into the Public
Employees Retirement Fund. The Public Employees Retirement Board
shall keep a separate account for those amounts and prorated
earnings thereof, and for investment purposes the moneys in the
separate account shall be commingled with those of the Public
Employees Retirement Fund and shall be invested in the same
manner as moneys of the Public Employees Retirement Fund are
invested.
' (4) When an employee, with respect to whose annual salary in
excess of $4,800 the board has contributed under subsection (2)
of this section, has made contributions to the Public Employees
Retirement Fund during each of five calendar years { - as
provided in ORS chapter 238 - } , an amount equal to the
contributions made under ORS 243.920 (2) shall be paid promptly
to the life insurance or annuity company out of the separate
account referred to in subsection (3) of this section, which
hereby is appropriated for that purpose, for the purchase of
additional supplemental retirement benefits for the employee. If
the moneys in the separate account are not sufficient for that
purpose, the amount of the deficiency shall be paid promptly by
the board to the life insurance or annuity company for that
purchase.
' (5) If an employee is separated from the service of the board
before the employee has made contributions to the Public
Employees Retirement Fund during each of five calendar years
{ - as provided in ORS chapter 238 - } , the amounts of
contributions by the board paid into the Public Employees
Retirement Fund under subsection (3) of this section and prorated
earnings thereof shall remain in the separate account referred to
in subsection (3) of this section for the purpose described in
subsection (4) of this section, and the employee is not entitled
to any part thereof or any benefit derived therefrom.
' { + SECTION 72. + } ORS 268.240 is amended to read:
' 268.240. (1) A district that is not participating in the
Public Employees Retirement System may, by application to the
board, include any class of employees of the district in the
system established by ORS chapter 238 { + and sections 1 to 45
of this 2003 Act + } without entering into a contract of
integration with the board under ORS 238.680.
' (2) The board shall consider an application received under
this section to be an application to become a participating
employer under ORS chapter 238 { + and sections 1 to 45 of this
2003 Act + } but only to the extent of providing membership for
the class of employees described 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 specified class to become members of the Public Employees
Retirement System in accordance with ORS chapter 238 { + and
sections 1 to 45 of this 2003 Act + }.
' (4) When a district enters into a contract with the board
under subsection (3) of this section, the district shall agree to
eventually extend coverage under ORS chapter 238 { + and
sections 1 to 45 of this 2003 Act + } to all eligible district
employees through successive contracts with the board.
' (5) All employees who have completed the period of service
with the public employer that is required under ORS 238.015
{ + or section 5 or 29 of this 2003 Act + } shall become members
of the system on a date specified by the board. All other
employees in the described class shall become members upon
completion of the required period of service.
' (6) As used in this section, 'board' means the Public
Employees Retirement Board established under ORS 238.630.
' { + SECTION 73. + } ORS 338.135 is amended to read:
' 338.135. (1) Employee assignment to a public charter school
shall be voluntary.
' (2) A public charter school or the sponsor of the public
charter school may be considered the employer of any employees of
the public charter school. If a school district board is not the
sponsor of the public charter school, the school district board
shall not be the employer of the employees of the public charter
school and the school district board may not collectively bargain
with the employees of the public charter school. The public
charter school governing body shall control the selection of
employees at the public charter school.
' (3) The school district board of the school district within
which the public charter school is located shall grant a leave of
absence to any employee who chooses to work in the public charter
school. The length and terms of the leave of absence shall be set
by negotiated agreement or by board policy. However, the length
of the leave of absence may not be less than two years unless:
' (a) The charter of the public charter school is terminated or
the public charter school is dissolved or closed during the leave
of absence; or
' (b) The employee and the school district board have mutually
agreed to a different length of time.
' (4) An employee of a public charter school operating within a
school district who is granted a leave of absence from the school
district and returns to employment with the school district shall
retain seniority and benefits as an employee pursuant to the
terms of the leave of absence. Notwithstanding ORS 243.650 to
243.782, a school district that was the employer of an employee
of a public charter school not operating within the school
district may make provisions for the return of the employee to
employment with the school district.
' (5) For purposes of ORS chapter 238 { + and sections 1 to 45
of this 2003 Act + }, a public charter school shall be considered
a public employer and as such shall participate in the Public
Employees Retirement System.
' (6) For teacher licensing, employment experience in public
charter schools shall be considered equivalent to experience in
public schools.
' (7)(a) Notwithstanding ORS 342.173, a public charter school
may employ as an administrator a person who is not licensed by
the Teacher Standards and Practices Commission.
' (b) Any person employed as a teacher in a public charter
school shall be licensed or registered to teach by the Teacher
Standards and Practices Commission.
' (c) Notwithstanding paragraph (a) or (b) of this subsection,
at least one-half of the total full-time equivalent (FTE)
teaching and administrative staff at the public charter school
shall be licensed by the commission pursuant to ORS 342.135,
342.136, 342.138 or 342.140.
' (8) Notwithstanding ORS 243.650, a public charter school
shall be considered a school district for purposes of ORS 243.650
to 243.782. An employee of a public charter school may be a
member of a labor organization or organize with other employees
to bargain collectively. Bargaining units at the public charter
school may be separate from other bargaining units of the sponsor
or of the school district in which the public charter school is
located. Employees of a public charter school may be part of the
bargaining units of the sponsor or of the school district in
which the public charter school is located.
' (9) A school district or the State Board of Education may not
waive the right to sponsor a public charter school in a
collective bargaining agreement.
' { + SECTION 74. + } ORS 341.290 is amended to read:
' 341.290. The board of education of a community college
district shall be responsible for the general supervision and
control of any and all community colleges operated by the
district. Consistent with any applicable rules of the State Board
of Education, the board may:
' (1) Subject to ORS chapter 238 { + and sections 1 to 45 of
this 2003 Act + }, employ administrative officers, professional
personnel and other employees, define their duties, terms and
conditions of employment and prescribe compensation therefor,
pursuant to ORS 243.650 to 243.782.
' (2) Enact rules for the government of the community college,
including professional personnel and other employees thereof and
students therein.
' (3) Prescribe the educational program.
' (4) Control use of and access to the grounds, buildings,
books, equipment and other property of the district.
' (5) Acquire, receive, hold, control, convey, sell, manage,
operate, lease, lease-purchase, lend, invest, improve and develop
any and all property of whatever nature given to or appropriated
for the use, support or benefit of any activity under the control
of the board, according to the terms and conditions of such gift
or appropriation.
' (6) Purchase real property upon a contractual basis when the
period of time allowed for payment under the contract does not
exceed 30 years.
' (7) Fix standards of admission to the community college,
prescribe and collect tuition for admission to the community
college, including fixing different tuition rates for students
who reside in the district, students who do not reside in the
district but are residents of the state and students who do not
reside in the state.
' (8) Prescribe and collect fees and expend funds so raised for
special programs and services for the students and for programs
for the cultural and physical development of the students.
' (9) Provide and disseminate to the public information
relating to the program, operation and finances of the community
college.
' (10) Establish or contract for advisory and consultant
services.
' (11) Take, hold and dispose of mortgages on real and personal
property acquired by way of gift or arising out of transactions
entered into in accordance with the powers, duties and authority
of the board and institute, maintain and participate in suits and
actions and other judicial proceedings in the name of the
district for the foreclosure of such mortgages.
' (12) Maintain programs, services and facilities, and, in
connection therewith, cooperate and enter into agreements with
any person or public or private agency.
' (13) Provide student services including health, guidance,
counseling and placement services, and contract therefor.
' (14) Join appropriate associations and pay any required dues
therefor from resources of the district.
' (15) Apply for federal funds and accept and enter into any
contracts or agreements for the receipt of such funds from the
federal government or its agencies for educational purposes.
' (16) Exercise any other power, duty or responsibility
necessary to carry out the functions under this section or
required by law.
' (17) Prescribe rules for the use and access to public records
of the district that are consistent with ORS 192.420, and
education records of students under applicable state and federal
law and rules of the State Board of Education. Whenever a student
has attained 18 years of age or is attending an institution of
post-secondary education, the permission or consent required of
and the rights accorded to a parent of the student regarding
education records shall thereafter be required of and accorded to
only the student. However, faculty records relating to matters
such as conduct, personal and academic evaluations, disciplinary
actions, if any, and other personal matters shall not be made
available to public inspection for any purpose except with the
consent of the person who is the subject of the record or upon
order of a court of competent jurisdiction.
' (18) Enter into contracts for the receipt of cash or
property, or both, and establish annuities pursuant to ORS
731.704 to 731.724; and, commit, appropriate, authorize and
budget for the payment of or other disposition of general funds
to pay, in whole or in part, sums due under an annuity agreement,
and to provide the necessary funding for reserves or other trust
funds pursuant to ORS 731.716.
' (19) Encourage gifts to the district by faithfully devoting
the proceeds of such gifts to the district purposes for which
intended.
' (20) Build, furnish, equip, repair, lease, purchase and raze
facilities; and locate, buy and acquire lands for all district
purposes. Financing may be by any prudent method including but
not limited to loans, contract purchase or lease. Leases
authorized by this section include lease-purchase agreements
whereunder the district may acquire ownership of the leased
property at a nominal price. Such financing agreements may be for
a term of up to 30 years except for lease arrangements which may
be for a term of up to 50 years.
' (21) Participate in an educational consortium with public and
private institutions that offer upper division and graduate
instruction. Community colleges engaged in such consortiums may
expend money, provide facilities and assign staff to assist those
institutions offering upper division and graduate instruction.
' (22) Enter into contracts of insurance or medical and
hospital service contracts or may operate a self-insurance
program as provided in ORS 341.312.
' { + SECTION 75. + } ORS 353.117 is amended to read:
' 353.117. (1) Pursuant to ORS 353.050, Oregon Health and
Science University may create and maintain an entity that is
exempt from federal income tax under section 501(c)(3) of the
Internal Revenue Code, as amended, for the purpose of conducting
clinical care and practice and advancing other university
missions by the faculty.
' (2) Any entity created by the university under subsection (1)
of this section shall be considered:
' (a) A public employer for purposes of ORS 236.605 to 236.640
and ORS chapter 238 { + and sections 1 to 45 of this 2003
Act + };
' (b) A unit of local government for purposes ORS 190.003 to
190.130;
' (c) A public provider of health care for purposes of ORS
192.525;
' (d) A public body for purposes of ORS 30.260 to 30.300 and
307.112;
' (e) A public agency for purposes of ORS 200.090; and
' (f) A public corporation for purposes of ORS 307.090.
' { + SECTION 76. + } ORS 353.250 is amended to read:
' 353.250. Notwithstanding the provisions of ORS chapter 238
{ + and sections 1 to 45 of this 2003 Act + }, the Oregon
Health and Science University may offer to its employees, in
addition to the Public Employees Retirement System, alternative
retirement programs.
' { + SECTION 77. + } ORS 377.836 is amended to read:
' 377.836. (1) Except as otherwise provided by law, and except
as provided in subsection (2) of this section, the provisions of
ORS chapters 240, 276, 279, 282, 283, 291, 292 and 293 do not
apply to the Travel Information Council. The council is subject
to all other statutes governing a state agency that do not
conflict with ORS 377.700 to 377.840, including the tort
liability provisions of ORS 30.260 to 30.300 and the provisions
of ORS 183.310 to 183.550. Subject to the requirements of ORS
chapter 238 { + and sections 1 to 45 of this 2003 Act + }, the
council's employees are members of the Public Employees
Retirement System.
' (2) The following shall apply to the council:
' (a) ORS 279.800 to 279.830;
' (b) ORS 282.210 to 282.230; and
' (c) ORS 293.235, 293.240, 293.245, 293.611, 293.625 and
293.630.
' { + SECTION 78. + } ORS 396.330 is amended to read:
' 396.330. (1) State employees of the Oregon Military
Department who are not otherwise members of the Oregon National
Guard may be required as a condition of employment to obtain
membership in the Oregon State Defense Force when in the judgment
of the Adjutant General the membership maintains or enhances the
readiness and stability of the department to provide services if
the need for Oregon State Defense Force assistance should arise.
The decision of the Adjutant General shall be carried out by
written regulation and shall not be subject to collective
bargaining.
' (2) Members of the Oregon National Guard or Oregon State
Defense Force who are ordered to state active duty under the
provisions of ORS chapter 399 shall be considered as being in the
military service of the state and shall be considered temporary
employees of the military department.
' (3) State employees of the military department may be ordered
to state active duty under ORS chapter 399 without jeopardizing
their status as regular employees. Employees so ordered must be
in an authorized leave status from their regular military
department employment during the period served on active duty.
' (4) State employees of the military department shall be
subject to ORS chapter 240 or 243 when performing as regular
employees.
' (5) Members of the Oregon National Guard who are serving
under Title 10 or Title 32 of the United States Code are not
eligible, by reason of that service, for the rights or benefits
of public employees granted or authorized by ORS chapters 236,
237, 238, 240 or 243 { + or sections 1 to 45 of this 2003
Act + }. Except as required by federal law or regulation, ORS
chapters 652, 653, 654, 656, 657, 659, 659A, 661 and 663 do not
apply to members of the Oregon National Guard who are serving
under Title 10 or Title 32 of the United States Code.
' { + SECTION 79. + } ORS 576.306 is amended to read:
' 576.306. (1) The commission may contract with an independent
contractor for the performance of any services. However, the
commission may not contract with an independent contractor to
perform the discretionary functions of the commission. ORS
chapters 240 and 279 do not apply to the commission in obtaining
such services, except that no contract for such services shall
take effect until approved by the State Department of Agriculture
as provided in subsection (7) of this section.
' (2) The commission may rent space or acquire supplies and
equipment from any contractor as described in subsection (1) of
this section. ORS chapters 276, 278, 279 and 283 and ORS 291.038
do not apply to such rentals or acquisitions.
' (3) Except as provided in this section, a contractor
described in subsection (1) of this section shall be considered
an independent contractor and not an employee, eligible employee,
public employee or employee of the state for purposes of Oregon
law, including ORS chapters 236, 238, 240, 243, 291, 292, 316 and
652 { + and sections 1 to 45 of this 2003 Act + }.
' (4) Nothing in this section precludes the state or a
commission from being considered the employer of the contractor
described in subsection (1) of this section for purposes of
unemployment compensation under ORS chapter 657 and ORS 670.600.
' (5) A contractor described in subsection (1) of this section
shall be considered an independent contractor and not a worker
for purposes of ORS chapter 656 and ORS 670.600.
' (6) A contractor described in subsection (1) of this section
shall not be considered a public official, public officer, state
officer or executive official for purposes of Oregon law,
including ORS chapters 236, 244, 292, 295 and 297 and ORS 171.725
to 171.785.
' (7) The State Department of Agriculture shall review the
contract described in subsection (1) of this section for the
adequacy of the clauses pertaining to statement of work, starting
and ending dates, consideration, subcontracts, funds authorized
in the budget, amendments, termination, compliance with
applicable law, assignment and waiver, access to records,
indemnity, ownership of work product, nondiscrimination,
successors in interest, attorney fees, tax certification or
merger or any other clause the department deems necessary.
' (8) The Oregon Department of Administrative Services, in
consultation with the State Department of Agriculture, shall
adopt rules necessary for the screening and selection of
independent contractors under this section.
' (9) Except as provided in subsection (8) of this section, the
department may promulgate any rules necessary for the
administration and enforcement of this section.
' { + SECTION 80. + } ORS 656.725 is amended to read:
' 656.725. (1) Individuals holding the position of
Administrative Law Judge created by the amendments to ORS 656.724
by section 51, chapter 332, Oregon Laws 1995, have the authority
to perform only those duties, functions and powers provided in
ORS chapters 654, 655 and 656, and such other duties, functions
and powers as may be prescribed by the Workers' Compensation
Board pursuant to ORS 656.726.
' (2) Administrative Law Judges are not judges for the purposes
of any provision of the Oregon Constitution and are not judges
for the purposes of judges' retirement under ORS chapter 238 { +
and sections 1 to 45 of this 2003 Act + }.
' { + SECTION 81. + } ORS 777.775 is amended to read:
' 777.775. (1) An export trading corporation is not a public
agency or public contracting agency for the purposes of ORS
279.011 to 279.063 or 279.435.
' (2) An export trading corporation is not a public employer
for the purposes of ORS chapter 238 { + and sections 1 to 45 of
this 2003 Act + }.
' { + SECTION 82. + } ORS 293.701, as amended by section 9,
chapter 6, Oregon Laws 2002 (third special session), and section
35a, chapter 67, Oregon Laws 2003 (Enrolled House Bill 2003), is
amended to read:
' 293.701. As used in ORS 293.701 to 293.820, unless the
context requires otherwise:
' (1) 'Council' means the Oregon Investment Council.
' (2) 'Investment funds' means:
' (a) Public Employees Retirement Fund referred to in ORS
238.660;
' (b) Industrial Accident Fund referred to in ORS 656.632;
' (c) Consumer and Business Services Fund referred to in ORS
705.145;
' (d) Employment Department Special Administrative Fund
referred to in ORS 657.822;
' (e) Insurance Fund referred to in ORS 278.425;
' (f) Funds under the control and administration of the
Division of State Lands;
' (g) Oregon Student Assistance Fund referred to in ORS
348.570;
' (h) Moneys made available to the Commission for the Blind
under ORS 346.270 and 346.540 or rules adopted thereunder;
' (i) Forest rehabilitation bonds sinking fund referred to in
ORS 530.280;
' (j) Oregon War Veterans' Fund referred to in ORS 407.495;
' (k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
' (L) World War II Veterans' Compensation Fund;
' (m) World War II Veterans' Bond Sinking Fund;
' (n) Savings and loan association funds in the hands of the
Director of the Department of Consumer and Business Services;
' (o) Funds in the hands of the State Treasurer that are not
required to meet current demands;
' (p) State funds that are not subject to the control and
administration of officers or bodies specifically designated by
law;
' (q) Funds derived from the sale of state bonds;
' (r) Social Security Revolving Account referred to in ORS
237.490;
' (s) Investment funds of the State Board of Higher Education
lawfully available for investment or reinvestment;
' (t) Local Government Employer Benefit Trust Fund referred to
in ORS 657.513;
' (u) Elderly and Disabled Special Transportation Fund
established by ORS 391.800;
' (v) Education Stability Fund established by ORS 348.696;
' (w) Deferred Compensation Fund established under ORS 243.411;
and
' (x) Trust for Cultural Development Account established under
ORS 359.405.
' { - (y) Transition Account Fund established by section 13a
of this 2003 Act. - }
' (3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
{ +
' PERS INFORMATION TECHNOLOGY SYSTEM + }
' { + SECTION 83. + } { + Subject to such direction and
oversight as may be provided by the Legislative Assembly, the
Public Employees Retirement Board shall take all steps necessary
to develop and implement a dedicated information technology
system to manage the Oregon Retirement Plan established by
sections 1 to 45 of this 2003 Act. The board shall ensure that
the essential record keeping components of the information
technology system are in operation as soon as practicable. The
board shall ensure that the information technology system is
designed to support the current and future business and
technology needs of the Public Employees Retirement System
arising out of the implementation of sections 1 to 45 of this
2003 Act. + }
'
{ + CAPTIONS + }
' { + SECTION 84. + } { + The unit and section captions used
in this 2003 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 2003
Act. + }
'
{ + EMERGENCY CLAUSE + }
' { + SECTION 85. + } { + This 2003 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2003 Act
takes effect on its passage. + } ' .
----------