72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
CCA to B-Eng. HB 2020 (A to RC)
LC 1704/HB 2020-B27
CONFERENCE COMMITTEE AMENDMENTS TO
B-ENGROSSED HOUSE BILL 2020
(INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
August 26
Amended Summary
Establishes Oregon { + Public Service + } Retirement Plan for
persons hired on or after effective date of Act who have not
established membership in Public Employees Retirement System
before effective date of Act. Specifies Oregon { + Public
Service + } Retirement Plan is part of Public Employees
Retirement System administered by Public Employees Retirement
Board. Provides that Oregon { + Public Service + } Retirement
Plan consist of pension program and individual account program.
{ + Limits authority of board to increase benefits under
Oregon Public Service Retirement Plan.
Directs Legislative Fiscal Officer to prepare fiscal impact
statement for legislative measures that would increase employer
contributions under Oregon Public Service Retirement Plan.
Requires new members of Legislative Assembly to elect
membership in Oregon Public Service Retirement Plan or state
deferred compensation plan. Authorizes new member not to
participate in retirement plan.
Authorizes current member of legislative Assembly to elect
membership in Oregon Public Service Retirement Plan. + }
Declares emergency, effective on passage.
Speaker Minnis:
Your Conference Committee to whom was referred B-engrossed
House Bill 2020, having had the same under consideration,
respectfully reports it back with the recommendation that the
House concur in the Senate amendments dated July 2 and that the
bill be amended as follows and repassed.
On page 1 of the printed B-engrossed bill, line 3, after '
196.165,' insert '238.156, 238.300,'.
In line 14, after 'Oregon' insert 'Public Service'.
On page 2, after line 13, insert:
' (j) Any person who belongs to a class of employees who are
not eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of section 4 (2) of this
2003 Act.'.
In line 14, delete '(j)' and insert '(k)', and delete ' 27' and
insert '26'.
In line 16, delete '(k)' and insert '(L)'.
In line 27, after the second 'an' insert 'eligible'.
In line 28, after 'duties' insert 'in a qualifying position'.
In line 31, after 'employer' insert 'for services in a
qualifying position'.
In line 39, after 'Oregon' insert 'Public Service'.
In line 45, after 'Oregon' insert 'Public Service'.
On page 3, line 2, after 'Oregon' insert 'Public Service'.
In line 6, after 'Oregon' insert 'Public Service'.
Delete lines 9 and 10 and insert:
' (14) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to section 4 (2) of this 2003 Act.'.
On page 4, line 26, after 'OREGON' insert 'PUBLIC SERVICE'.
In line 28, insert 'Public Service' after 'Oregon' in both
places.
In line 29, after 'Oregon' insert 'Public Service'.
In line 31, after 'Oregon' insert 'Public Service'.
In line 43, after 'Oregon' insert 'Public Service'.
On page 5, line 9, after 'Oregon' insert 'Public Service'.
In line 11, delete '(c) and (d)' and insert '(c), (d) and (e)'.
After line 25, insert:
' (e) A person does not have a break in service for the
purposes of this subsection by reason of any period of time
during which the person leaves employment with a participating
public employer for the purpose of serving as a member of the
Legislative Assembly during a legislative session.'.
In line 35, after 'Oregon' insert 'Public Service'.
In line 42, delete 'shall' and insert 'is eligible only to' and
after 'Oregon' insert 'Public Service'.
On page 6, line 7, after 'Oregon' insert 'Public Service'.
In line 14, after 'Oregon' insert 'Public Service'.
In line 15, after 'Oregon' insert 'Public Service'.
In line 20, after 'Oregon' insert 'Public Service'.
In line 21, after the second 'Oregon' insert 'Public Service'.
In line 23, after 'Oregon' insert 'Public Service'.
In line 25, after 'program' insert 'and pension program'.
In line 26, delete 'or the pension program'.
In line 27, after 'Oregon' insert 'Public Service'.
After line 32, insert:
' { + SECTION 3a. + } If House Bill 2341 becomes law, section
3 of this 2003 Act is amended to read:
' { + Sec. 3. + } (1) The Oregon Public Service 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 Public
Service Retirement Plan.
' (3) The Oregon Investment Council shall invest the assets of
the Oregon Public Service Retirement Plan as a part of the Public
Employees Retirement Fund. Except as provided by subsection (4)
of this section, the investment of Oregon Public Service
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 and pension program
differently than the other assets of the Public Employees
Retirement System.
' (4) Investment of the assets of the Oregon Public Service
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 - }
{ + sections 1 to 46 or 47 to 87, chapter ___, Oregon Laws 2003
(Enrolled House Bill 2341), + } in awarding a contract under the
provisions of this subsection. The board shall establish
procedures for inviting proposals and awarding contracts under
this subsection.
' { + SECTION 3b. + } { + The amendments to section 3 of
this 2003 Act by section 3a of this 2003 Act become operative on
March 1, 2005. + } ' .
In line 38, after 'Oregon' insert 'Public Service'.
In line 40, delete '27' and insert '26'.
On page 7, line 1, after 'Oregon' insert 'Public Service'.
In line 14, before 'An' insert '(1) Except as provided by
subsection (2) of this section,'.
After line 20, insert:
' (2) A person who is elected or appointed to an office with a
fixed term other than as a member of the Legislative Assembly, or
who is appointed by the Governor to an office as head of a
department, may elect not to become a member of the pension
program by giving the Public Employees Retirement Board written
notice not later than 30 days after taking office. An election
under this subsection also operates as an election not to become
a member of the individual account program. An election under
this subsection is irrevocable during the term of office for
which the election is made.'.
On page 8, line 32, delete '27' and insert '26'.
On page 10, line 40, delete '27' and insert '26'.
On page 11, line 11, delete '27' and insert '26'.
On page 12, line 28, delete '27' and insert '26'.
On page 13, line 32, delete '27' and insert '26'.
On page 14, line 17, after the period insert 'If a person has
been receiving a pension or benefit for less than 12 months on
July 1 of a calendar year, the board shall make a pro rata
reduction of the adjustment based on the number of months that
the pension or benefit was received before July 1 of the year.'.
In line 29, delete '27' and insert '26'.
On page 15, line 33, delete '27' and insert '26'.
On page 16, line 43, delete 'section 27 of this 2003 Act ' and
insert 'subsection (3) of this section'.
In line 45, after 'employer' insert 'in a qualifying position'.
On page 17, delete lines 8 through 13 and insert:
' (3) A retired member of the pension program who becomes a
member of the Legislative Assembly shall continue to receive the
pension elected by the member. A retired member of the pension
program who becomes a member of the Legislative Assembly may not
elect under section 46a of this 2003 Act to become an active
member of the Oregon Public Service Retirement Plan or a
legislator member of the state deferred compensation plan.'.
In line 14, delete 'Section 28 was' and insert 'Sections 27 and
28 were'.
In line 20, before 'An' insert 'Except as provided in section 5
(2) of this 2003 Act,'.
On page 18, after line 38, insert:
' { + SECTION 33b. + } { + Notwithstanding section 14,
chapter 625, Oregon Laws 2003 (Enrolled House Bill 3020)
(amending section 13, chapter 67, Oregon Laws 2003 (Enrolled
House Bill 2003)), section 13, chapter 67, Oregon Laws 2003
(Enrolled House Bill 2003), is repealed. + }
' { + SECTION 33c. + } { + Notwithstanding section 331a,
chapter ___, Oregon Laws 2003 (Enrolled House Bill 2341)
(amending section 13, chapter 67, Oregon Laws 2003 (Enrolled
House Bill 2003)), if House Bill 2341 becomes law, section 13,
chapter 67, Oregon Laws 2003 (Enrolled House Bill 2003), is
repealed. + } ' .
On page 19, delete line 36 and insert 'shall apply the'.
In line 38, after 'Oregon' insert 'Public Service'.
On page 24, line 15, after 'Oregon' insert 'Public Service'.
In line 22, after 'OREGON' insert 'PUBLIC SERVICE'.
After line 23, insert:
' { + SECTION 44b. + } { + Limitation on powers of board,
director and staff. (1) The Public Employees Retirement Board,
the director employed by the board and staff employed by the
board may not adopt any rule or take any administrative action
that has the effect of increasing the total liability for
benefits under sections 1 to 45 of this 2003 Act that is in
excess of one-tenth of one percent.
' (2) Subsection (1) of this section does not apply to any rule
or administrative action 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. + }
' { + SECTION 44c. + } { + Application of legislative
changes to legislators. Any law enacted after January 1, 2004,
that has the effect of increasing the total liability for
benefits under sections 1 to 45 of this 2003 Act that is in
excess of one-tenth of one percent does not apply to service by
members of the Legislative Assembly that entitles those members
to benefits under the Oregon Public Service Retirement Plan. + }
' { + SECTION 44d. + } { + Legislative intent relating to
increased benefits. It is the intent of the Legislative Assembly
that any increase in benefits under the Oregon Public Service
Retirement Plan be provided through changes in the individual
account program and not through changes in the pension
program. + }
' { + SECTION 44e. + } { + (1) Subject to the provisions of
this section, until June 30, 2005, the Public Employees
Retirement System may use assets of the Public Employees
Retirement Fund that are unrelated to the Oregon Public Service
Retirement Plan to pay the administrative costs of the pension
program and the individual account program. The authority created
by this subsection is in addition to and not in lieu of the
authority of the system to use assets of the pension program and
the individual account program to pay administrative expenses of
those programs.
' (2) Not later than January 1, 2010, the Public Employees
Retirement Board shall transfer from accounts of the Oregon
Public Service Retirement Plan the amount used under subsection
(1) of this section, with interest, to accounts in the fund
established to provide retirement benefits under ORS chapter 238.
The rate of interest must be at least equal to the rate that the
moneys would have earned had the moneys remained invested in the
fund established to provide retirement benefits under ORS chapter
238, and in no event less than two percent per annum.
' (3) Until such time as all moneys and interest are repaid
under subsection (2) of this section, beneficiaries of the fund
established to provide retirement benefits under ORS chapter 238
have a security interest in the assets of the Oregon Public
Service Retirement Plan equal to the amount used under subsection
(1) of this section and the interest required under subsection
(2) of this section. The security interest may be foreclosed in
an action at law.
' (4) If the board fails to transfer any amount required under
subsection (2) of this section before January 1, 2010, a person
entitled to benefits under ORS chapter 238 may bring a mandamus
action to compel the board to make the transfer and to perform
all acts within the authority of the board to collect employer or
employee contributions to the Oregon Public Service Retirement
Plan necessary to fund the transfer.
' (5) In determining the amount of employer contributions
necessary under the provisions of section 24 of this 2003 Act,
the board shall include any amounts required to be transferred
under subsection (2) of this section that are attributable to
paying the costs of administering the pension program.
' (6) The board shall deduct from the individual accounts
established under section 37 of this 2003 Act the amounts to be
transferred under subsection (2) of this section that are
attributable to paying the costs of administering the individual
account program. The deduction must be a uniform percentage of
the individual accounts. + } ' .
In line 24, after 'Oregon' insert 'Public Service'.
After line 28, insert:
' { + SECTION 45a. + } { + Section 45b of this 2003 Act is
added to and made a part of ORS 173.025 to 173.055. + }
' { + SECTION 45b. + } { + Fiscal impact statements. The
Legislative Fiscal Officer, with the aid of the Public Employees
Retirement Board and public employers providing benefits under
sections 1 to 45 of this 2003 Act, shall prepare a fiscal impact
statement on each measure introduced in the Legislative Assembly
that would increase employer contributions under sections 1 to 45
of this 2003 Act. If the Legislative Fiscal Officer determines
that a proposed measure would result in an increase in the total
liability for benefits under sections 1 to 45 of this 2003 Act
that is in excess of one-tenth of one percent, the Legislative
Fiscal Officer shall promptly notify the Public Employees
Retirement Board. The board shall thereafter promptly give notice
of the proposed measure, and the fiscal impact of the proposed
measure as determined by the Legislative Fiscal Officer, to all
public employers providing benefits under sections 1 to 45 of
this 2003 Act. + } ' .
After line 36, insert:
'
{ + MEMBERS OF LEGISLATIVE ASSEMBLY + }
' { + SECTION 46a. + } { + Retirement plan election. (1) A
person appointed or elected as a member of the Legislative
Assembly must elect within 30 days after taking office if the
person will:
' (a) Become a member of the Oregon Public Service Retirement
Plan established under sections 1 to 45 of this 2003 Act;
' (b) Become a legislator member of the state deferred
compensation plan under section 46c of this 2003 Act; or
' (c) Decline to become a member of the Oregon Public Service
Retirement Plan, or to become a legislator member of the state
deferred compensation plan, for service as a member of the
Legislative Assembly.
' (2) Written notice of a person's election under this section
must be given to the Public Employees Retirement Board. If the
board does not receive written notice within 30 days after the
person takes office, the person shall be conclusively deemed to
have elected to become a legislator member of the state deferred
compensation plan under section 46c of this 2003 Act.
' (3) Any member of the Legislative Assembly who elects to
become a member of the Oregon Public Service Retirement Plan may
request that the Public Employees Retirement Board roll over the
amount in the regular account maintained for the member under ORS
238.250 into the individual account maintained for the member
under the individual account program.
' (4) An election under this section does not affect the
ability of a person appointed or elected as a member of the
Legislative Assembly to participate in the state deferred
compensation plan in the manner provided by ORS 243.401 to
243.507. + }
' { + SECTION 46b. + } { + Application; temporary provision
for current members of Legislative Assembly. (1) Except as
provided in subsection (2) of this section, section 46a of this
2003 Act applies to all members of the Legislative Assembly who
take office on or after the effective date of this 2003 Act.
' (2) In addition to the options provided by section 46a of
this 2003 Act, any person who is a member of the Legislative
Assembly on the effective date of this 2003 Act and who is a
member of the Public Employees Retirement System on the effective
date of this 2003 Act may elect to remain a member of the system
under ORS chapter 238 for so long as the member remains in
continuous service as a member of the Legislative Assembly. An
election under this subsection must be made in the manner
provided by section 46a (2) of this 2003 Act.
' (3) A member of the Legislative Assembly remains in
continuous service as a member of the Legislative Assembly for
the purposes of subsection (2) of this section for so long as the
member continues in office without a break in service as
described in sections 2 and 2a of this 2003 Act. + }
' { + SECTION 46c. + } { + Legislator members of state
deferred compensation plan. (1) If a person appointed or elected
as a member of the Legislative Assembly elects under section 46a
of this 2003 Act to participate in the state deferred
compensation plan as a legislator member, the Legislative
Assembly shall make employer contributions to the plan in an
amount that is equal to six percent of the member's salary. A
legislator member may make contributions to the plan in any
amount that does not exceed the maximum allowed by federal law
governing the plan's tax qualification.
' (2) Any member of the Legislative Assembly who elects to
become a legislator member of the state deferred compensation
plan may request that the Public Employees Retirement Board roll
over the amount in the regular account maintained for the member
under ORS 238.250 into the state deferred compensation plan.
' (3) Except for the contributions required by subsection (1)
of this section, the Legislative Assembly may not 'pick-up, '
assume or pay any contributions on behalf of a legislator member
of the state deferred compensation plan. + }
' { + SECTION 46d. + } { + Special rule for public employees
elected or appointed to Legislative Assembly. (1) A person who is
serving with a participating public employer, who will receive
benefits under ORS chapter 238 by reason of that service, who is
elected or appointed to the Legislative Assembly, and who does
not leave employment with the participating public employer by
reason of that election or appointment, must elect one of the
options provided by section 46a of this 2003 Act for the purposes
of service by the person during sessions of the Legislative
Assembly. A person described in this subsection shall receive
benefits under ORS chapter 238 for all hours of service that are
not performed during a session of the Legislative Assembly.
(2) A person who is serving with a participating public
employer, who is a member of the pension program or the
individual account program, and who is elected or appointed to
the Legislative Assembly may not make an election under section
46a of this 2003 Act and shall continue membership in the pension
program or individual account program for the purposes of all
service by the person as a member of the Legislative
Assembly. + }
' { + SECTION 46e. + } ORS 238.300 is amended to read:
' 238.300. Upon retiring from service at normal retirement age
or thereafter, a member of the system shall receive a service
retirement allowance which shall consist of the following annuity
and pensions:
' (1) A refund annuity which shall be the actuarial equivalent
of accumulated contributions by the member and interest thereon
credited at the time of retirement, which annuity shall provide
an allowance payable during the life of the member and at death a
lump sum equal in amount to the difference between accumulated
contributions at the time of retirement and the sum of the
annuity payments actually made to the member during life shall be
paid to such person, if any, as the member nominates by written
designation duly acknowledged and filed with the board or shall
otherwise be paid according to the provisions of this chapter for
disposal of an amount credited to the member account of a member
at the time of death in the event the member designates no
beneficiary to receive the amount or no such beneficiary is able
to receive the amount. If death of the member occurs before the
first payment is due, the member account of the member shall be
treated as though death had occurred before retirement.
' (2)(a) A life pension (nonrefund) for current service
provided by the contributions of employers, which pension,
subject to paragraph (b) of this subsection, shall be an amount
which, when added to the sum of the annuity under subsection (1)
of this section and the annuity, if any, provided on the same
basis and payable from the Variable Annuity Account, both
annuities considered on a refund basis, results in a total of:
' (A) For service as a police officer or firefighter, two
percent of final average salary multiplied by the number of years
of membership in the system as a police officer or firefighter
before the effective date of retirement.
' { - (B) For service as a member of the Legislative Assembly,
two percent of final average salary multiplied by the number of
years of membership in the system as a member of the Legislative
Assembly before the effective date of retirement. - }
' { - (C) - } { + (B) + } For service as other than a police
officer { - , - } { + or + } firefighter { - or - } { + ,
including service as a + } member of the Legislative Assembly,
1.67 percent of final average salary multiplied by the number of
years of membership in the system as other than a police officer
{ - , - } { + or + } firefighter { - or member of the
Legislative Assembly - } before the effective date of retirement.
' (b) A pension under this subsection shall be at least:
' (A) The actuarial equivalent of the annuity provided by the
accumulated contributions of the member.
' (B) For a member who made contributions before August 21,
1981, the equivalent of a pension computed pursuant to this
subsection as it existed immediately before that date.
' (c) As used in this subsection, 'number of years of
membership' means the number of full years plus any remaining
fraction of a year for which salary was paid and contributions to
the Public Employees Retirement System made. Except as otherwise
provided in this paragraph, in determining a remaining fraction a
full month shall be considered as one-twelfth of a year and a
major fraction of a month shall be considered as a full month.
Membership of a school district employee, an employee of the
State Board of Higher Education engaged in teaching or other
school activity at an institution of higher education or an
employee of the Department of Human Services, the Oregon Youth
Authority, the Department of Corrections or the State Board of
Education engaged in teaching or other school activity at an
institution supervised by the authority, board or department, for
all portions of a school year in a calendar year in which the
district school, institution of higher education or school
activity at an institution so supervised in which the member is
employed is normally in session shall be considered as a full
one-half year of membership. The number of years of membership of
a member who received a refund of contributions as provided in
ORS 237.976 (2) is limited to the number of years after the day
before the date on which the refund was received. The number of
years of membership of a member who is separated, for any reason
other than death or disability, from all service entitling the
member to membership in the system, who withdraws the amount
credited to the member account of the member in the fund during
absence from such service and who thereafter reenters the service
of an employer participating in the system but does not repay the
amount so withdrawn as provided in this chapter, is limited to
the number of years after the day before the date of so
reentering.
' (3) An additional life pension (nonrefund) for prior service
credit, including military service, credited to the member at the
time of first becoming a member of the system, as elsewhere
provided in this chapter, which pension shall be provided by the
contributions of the employer.
' { + SECTION 46f. + } { + The amendments to ORS 238.300 by
section 46e of this 2003 Act apply to periods of service as a
member of the Legislative Assembly served by reason of
appointment or election to the Legislative Assembly on or after
the effective date of this 2003 Act, including periods of service
as a member of the Legislative Assembly served by reason of
reelection to the Legislative Assembly after the effective date
of this 2003 Act. + } ' .
On page 33, after line 17, insert:
' { + SECTION 51a. + } ORS 238.156, as amended by section 21,
chapter 625, Oregon Laws 2003 (Enrolled House Bill 3020), is
amended to read:
' 238.156. (1) Notwithstanding any other provision of this
chapter, but subject to subsection (4) of this section, an
employee who leaves a position that meets the requirements of ORS
238.015 (4) for the purpose of performing service in the
uniformed services is entitled to receive contributions, benefits
and service credit for the period under rules adopted by the
Public Employees Retirement Board pursuant to subsection (2) of
this section.
' (2) The board shall adopt rules establishing contributions,
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 contributions, benefits and service
credit for any period of service in the uniformed services.
Contributions, benefits and service credit under rules adopted by
the board pursuant to this subsection may not exceed
contributions, benefits and service credit required under federal
law for periods of service in the uniformed services.
' (3) Subject to subsection (4) of this section, an employee
who leaves a position that meets the requirements of ORS 238.015
(4) for the purpose of entering or reentering active service in
the Armed Forces shall acquire retirement credit for the period
during which the employee served in the Armed Forces if:
' (a) The employee returns to the service of the employer who
employed the employee immediately before commencing service in
the Armed Forces in a position that meets the requirements of ORS
238.015 (4);
' (b) The employee returns to that employment within one year
after being otherwise than dishonorably discharged from the Armed
Forces and within five years after the date that the employee
entered or reentered active service in the Armed Forces; and
' (c) After returning to employment and before retirement, the
employee pays to the Public Employees Retirement Board in a lump
sum six percent of the salary that would have been paid to the
member during the period of military service in the Armed Forces
based on the employee's salary rate at the time the employee
entered or reentered the Armed Forces, as though the employee had
remained in the employment of the employer. Any lump sum
contribution made under this paragraph shall be added to the
employee's regular account { - , or to the employee's transition
account established under section 13, chapter 67, Oregon Laws
2003 (Enrolled House Bill 2003), if the employee does not have a
regular account, - } and in all respects shall be considered as
though made by payroll deduction.
' (4) An employee may not receive benefits under both
subsections (1) and (3) of this section for the same period of
service in the Armed Forces or uniformed services. If an employee
is entitled to benefits under both subsections (1) and (3) of
this section by the terms of those provisions, the employee shall
receive benefits under the subsection that provides the greater
benefit.
' (5) For the purposes of this section, 'Armed Forces' means
the Army, Navy, Air Force, Marine Corps and Coast Guard.'.
On page 38, delete lines 34 through 45 and delete page 39.
On page 40, delete lines 1 through 11 and insert:
' { + SECTION 60. + } ORS 238.660, as amended by section 29,
chapter 625, Oregon Laws 2003 (Enrolled House Bill 3020), 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 { - ,
section 13, chapter 67, Oregon Laws 2003 (Enrolled House Bill
2003), - } 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 Public Service 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.
' (10) 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. Any member of the committee who is an active member of
the system shall be released by the participating public employer
who employs the member for the purpose of conducting the official
business of the committee, and the wages or salary of the member
may not be reduced by the employer during periods that the member
is released from duty for the purpose of conducting the official
business of the committee. + } ' .
On page 43, line 32, delete '27' and insert '26'.
On page 52, line 39, after 'Oregon' insert 'Public Service'.
/sTim Knopp
Representative
/sAlan Brown
Representative
/sGreg Macpherson
Representative
/sTony Corcoran
Senator
/sJohn Minnis
Senator
----------