72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 574
House Bill 2065
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Joint Interim Committee on
Judiciary for Judicial Department, Judicial Conference for the
State of Oregon and Oregon Circuit Judges Association)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Provides that judge member of Public Employees Retirement
System electing to retire under Plan B is entitled to receive
life pension in annual amount equal to 3.75 percent of final
average salary multiplied by up to 18 years of service instead of
16 years of service.
Provides that inactive judge member may elect to retire under
Plan B only if judge member separated from service on or after
July 1, 1992.
Repeals sunset on law allowing judge members who retire under
Plan B to continue to be eligible as nonretired employees under
health benefit plans offered to active judge members and, subject
to availability of funding, to receive monthly state
contributions as payment of all or part of health benefit plans'
costs.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to judges' retirement; creating new provisions; amending
ORS 238.535; repealing section 9, chapter 823, Oregon Laws
2001; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 238.535 is amended to read:
238.535. (1) Prior to attaining 60 years of age, all judge
members shall elect in writing to retire under either paragraph
(a) or (b) of this subsection. The election shall be irrevocable
after the judge member attains 60 years of age. Any judge member
who fails to make the election provided for in this subsection
prior to attaining 60 years of age shall be retired under the
provisions of paragraph (a) of this subsection.
(a) Upon retiring from service as a judge at the age of 65
years or thereafter a judge member who has made contributions to
the Public Employees Retirement Fund during each of five calendar
years shall receive as a service retirement allowance, payable
monthly, a life pension (nonrefund) provided by the contributions
of the judge member and the state in an annual amount equal to
2.8125 percent of final average annual salary multiplied by the
number of years of service as a judge not exceeding 16 years of
service as a judge and 1.67 percent of final average salary
multiplied by the number of years of service as a judge exceeding
16 years of service as a judge, but the annual amount shall not
exceed 65 percent of final average salary.
(b) Upon retiring from service as a judge at the age of 60
years or thereafter, a judge member who has made contributions to
the Public Employees Retirement Fund during each of five calendar
years shall receive as a service retirement allowance, payable
monthly, a life pension (nonrefund) provided by the contributions
of the judge member and the state in an annual amount equal to
3.75 percent of final average salary multiplied by the number of
years of service as a judge not exceeding { - 16 - } { +
18 + } years of service as a judge and two percent of final
average salary multiplied by the number of years of service as a
judge exceeding { - 16 - } { + 18 + } years of service as a
judge, but the annual amount shall not exceed 75 percent of final
average salary.
(c) Any judge member electing to retire under paragraph (b) of
this subsection shall serve as a pro tem judge, without
compensation, for 35 days per year for a period of five years. A
judge who serves more than 35 days per year may carry over the
additional days to fulfill the pro tem service obligation in
future years. The five-year period shall commence on the judge
member's date of retirement or the date on which the judge member
commences pro tem service under ORS 238.545 (4), whichever is
earlier. Judge members may be reimbursed for expenses incurred in
providing pro tem services under this paragraph. Upon
certification from the Chief Justice that any judge member who
retired under paragraph (b) of this subsection has failed to
perform the pro tem services required under this paragraph, and
has not been relieved of the obligations to perform those
services in the manner provided by this paragraph, the Public
Employees Retirement Board shall recalculate the service
retirement allowance of the noncomplying judge member as though
the judge member elected to retire under paragraph (a) of this
subsection, and the noncomplying judge member shall receive only
that recalculated amount thereafter. A judge may be relieved of
the pro tem service obligation imposed by this paragraph if the
judge fails for good cause to complete the obligation. A retired
judge member who is relieved of the obligation to serve as a pro
tem judge shall continue to receive the retirement allowance
provided in paragraph (b) of this subsection.
(d) For the purpose of paragraph (c) of this subsection:
(A) 'Good cause' includes, but is not limited to:
(i) Physical or mental incapacitation of a judge that prevents
the judge from discharging the duties of judicial office;
(ii) Failure of the appointing authority to assign a judge to
the requisite amount of pro tem service, whether because of
insufficient need for pro tem judges, a determination by the
appointing authority that the skills of a judge do not match the
needs of the courts, clerical mistake, or otherwise; or
(iii) Death of a judge.
(B) 'Good cause' does not include:
(i) A judge's refusal, without good cause, to accept pro tem
assignments sufficient to meet the required amount; or
(ii) A judge's affirmative voluntary act that makes the judge
unqualified to serve as a judge of this state including, but not
limited to, failure to maintain active membership in the Oregon
State Bar, acceptance of a position in another branch of state
government, or acceptance of a position in the Government of the
United States or of another state or nation.
(e) The Chief Justice may make rules for the implementation of
this subsection.
(2) As used in subsection (1) of this section, 'final average
salary' means whichever of the following is greater:
(a) The average salary per calendar year paid to a judge member
in three of the calendar years of service as a judge before the
judge member retires, in which three years the judge member was
paid the highest salary.
(b) One-third of the total salary paid to a judge member in the
last 36 calendar months of service as a judge before the judge
member retires.
(3) As used in subsection (1) of this section, 'number of years
of service' means the number of full years plus any remaining
fraction of a year. 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.
(4) For a judge who elects to become a judge member as provided
in ORS 237.215 (3) (1989 Edition), the service retirement
allowance under subsection (1) of this section on retirement at
the age of 70 years and either 12 years of service or two full
six-year terms as a judge shall be at least the equivalent of the
retirement pay the judge would have received had the judge
retired under ORS 1.314 to 1.390 (1989 Edition).
(5) A judge member who has made contributions to the Public
Employees Retirement Fund during each of five calendar years and
who attains the age of 60 years shall be retired upon written
application by the judge member to the board on a reduced service
retirement allowance which shall be the actuarial equivalent of
the service retirement allowance provided for in subsection
(1)(a) of this section.
(6) For the purposes of this section, a judge who elects to
become a judge member as provided in ORS 237.215 (3) (1989
Edition) shall be considered to have made contributions to the
Public Employees Retirement Fund during one calendar year for
each calendar year during which the judge made contributions to
the Judges' Retirement Fund.
(7)(a) Notwithstanding subsection (1)(a) of this section, the
maximum percentage used in calculating the annual amount of the
life pension (nonrefund) for a judge who is a judge member on
September 27, 1987, or who elected to become a judge member in
the manner provided by ORS 237.215 (3)(b) or (4)(b) (1989
Edition), shall be the percentage specified by paragraph (b) of
this subsection if either:
(A) On September 27, 1987, the judge had more than 28 years of
service that were creditable either under the system; or
(B) On September 27, 1987, the judge had more than 28 years of
service that were creditable under the Judges' Retirement Fund
established pursuant to ORS 1.314 to 1.390 (1989 Edition) and the
judge became a member of the system under the provisions of ORS
237.215 (3)(b) (1989 Edition).
(b) The maximum percentage used in calculating the annual
amount of the life pension (nonrefund) of a judge member who
meets the requirements of paragraph (a) of this subsection shall
not exceed 45 percent plus 1.67 percent multiplied by the number
of years of service as a judge that exceed 16 years and that were
served on or before September 27, 1987.
(c) In computing the annual amount of the life pension of a
judge who meets the requirements of paragraph (a) of this
subsection, the board shall use the percentage specified by
paragraph (b) of this subsection and the final average salary of
the judge computed on the date of retirement, not the final
average salary of the judge computed as of September 27, 1987. In
making the computation under this subsection, the board shall use
the definition of 'final average salary' provided by ORS 238.535
as amended by section 2, chapter 625, Oregon Laws 1987.
SECTION 2. { + The amendments to ORS 238.535 by section 1 of
this 2003 Act apply only to active judge members who elect to
retire under ORS 238.535 (1)(b) and who retire on or after
September 1, 2003, or to inactive judge members who elect to
retire under ORS 238.535 (1)(b) and who separate from service as
described in ORS 238.545 (1) on or after September 1, 2003. + }
SECTION 3. { + Section 4 of this 2003 Act is added to and made
a part of ORS 238.500 to 238.585. + }
SECTION 4. { + An inactive judge member may elect to retire
under ORS 238.535 (1)(b) only if the judge member separated from
service as described in ORS 238.545 (1) on or after July 1,
1992. + }
SECTION 5. { + Section 9, chapter 823, Oregon Laws 2001, is
repealed. + }
SECTION 6. { + 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. + }
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