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 1617
B-Engrossed
House Bill 2407
Ordered by the House April 14
Including House Amendments dated April 1 and April 14
Sponsored by COMMITTEE ON PUBLIC EMPLOYEES RETIREMENT SYSTEM
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Directs Legislative Administration Committee to establish
successor retirement plan as replacement for Public Employees
Retirement System for persons who commence term of office in
Legislative Assembly on or after July 1, 2004, or who are
appointed to Legislative Assembly on or after July 1, 2004.
Specifies successor retirement plan to be defined contribution
plan and sets specific components of plan. { + Prohibits
Legislative Assembly from paying legislator's contribution. + }
Prohibits creditable service in Public Employees Retirement
System by member of Legislative Assembly for any term of office
commenced on or after July 1, 2004, or by reason of appointment
to Legislative Assembly if person takes office on or after July
1, 2004.
Confers jurisdiction on Supreme Court to review petition of any
person aggrieved by Act.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to retirement of members of the Legislative Assembly;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Legislative Administration Committee
shall establish a successor retirement plan as a replacement for
the Public Employees Retirement System for:
(a) Persons appointed or elected to the Legislative Assembly
who take office on or after July 1, 2004.
(b) Persons who commence a term of office in the Legislative
Assembly on or after July 1, 2004, including persons reelected to
the Legislative Assembly and commencing a term of office on or
after July 1, 2004.
(2) The successor retirement plan established by the
Legislative Administration Committee under this section shall be
a defined contribution plan and shall provide for:
(a) Contributions by members of the Legislative Assembly in any
amount that does not exceed the maximum allowed by the federal
law governing the plan's tax qualification;
(b) Contributions by the Legislative Assembly in an amount that
is equal to the contributions made by the member, or six percent
of salary, whichever is less;
(c) Tax-free rollovers of member accounts from the Public
Employees Retirement System; and
(d) Payment of the administrative costs of the plan from the
contributions of members of the Legislative Assembly and earnings
on those contributions.
(3) The Legislative Administration Committee shall contract
with one or more private providers for the administration of the
successor retirement plan established by the committee under the
provisions of this section. The Legislative Administration
Committee shall act as trustee for the plan.
(4) Upon a successor retirement plan being established under
this section, any member of the Legislative Assembly who is
making contributions to the plan may request that the Public
Employees Retirement Board roll over the amounts in the member
account maintained for the member under ORS 238.250 into the
successor retirement plan.
(5) The Legislative Assembly may not 'pick-up,' assume or pay
the member contributions required under the successor retirement
plan established by the Legislative Administration Committee
under this section. + }
SECTION 2. { + Section 3 of this 2003 Act is added to and made
a part of ORS chapter 238. + }
SECTION 3. { + (1) Notwithstanding any other provision of this
chapter, a person is not entitled to creditable service in the
Public Employees Retirement System:
(a) By reason of appointment to the Legislative Assembly, if
the person takes office on or after July 1, 2004; or
(b) By reason of election to the Legislative Assembly, if the
term of office in the Legislative Assembly commences on or after
July 1, 2004.
(2) The provisions of this section apply to any person who is
serving as a member of the Legislative Assembly on the effective
date of this 2003 Act for the purposes of any term of office
subsequently served by that person that commences on or after
July 1, 2004. + }
SECTION 4. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
the provisions of this 2003 Act violate any constitutional
provision, including but not limited to violation of contract
rights of members of the Public Employees Retirement System under
section 21, Article I of the Oregon Constitution, or clause 1,
section 10, Article I of the United States Constitution.
(2) Under the jurisdiction conferred in subsection (1) of this
section, any person aggrieved by this 2003 Act may petition the
Supreme Court for review. The petition shall state the facts
showing how the petitioner is aggrieved and the constitutional
grounds upon which the petition is based. The Supreme Court shall
give priority on its docket to a petition for review filed under
this section and shall expedite a decision on the petition. Any
and all petitions filed under this section alleging a similar
basis or bases of challenge may be consolidated by the Supreme
Court upon its own motion.
(3) A person petitioning for review under this section is not
required to exhaust administrative remedies or file in any other
court prior to filing a petition for review under this section.
(4) A petition for review under this section must be filed
before March 1, 2005.
(5) A petition for review under this section must present a
justiciable controversy. The petitioner must serve a copy of the
petition on the Attorney General.
(6) The petition for review under this section is in addition
to any other remedy or procedure that may be available to
determine whether the provisions of this 2003 Act violate any
constitutional provision. + }
SECTION 5. { + 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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