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
C-Engrossed
House Bill 2407
Ordered by the Senate June 3
Including House Amendments dated April 1 and April 14 and Senate
Amendments dated June 3
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. - }
{ + Decreases rate for determining retirement allowance for
members of Legislative Assembly appointed or elected on or after
effective date of Act. Retains current rate for members of
Legislative Assembly serving on effective date of Act who
performed service as member before January 1, 1995. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to retirement of members of the Legislative Assembly;
creating new provisions; amending ORS 238.300; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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 2. { + (1) Except as provided in subsection (2) of
this section, the amendments to ORS 238.300 by section 1 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.
(2) The amendments to ORS 238.300 by section 1 of this 2003 Act
do not apply to service performed on or after the effective date
of this 2003 Act by a person who is serving a term of office as a
member of the Legislative Assembly on the effective date of this
2003 Act and who performed any service as a member of the
Legislative Assembly before January 1, 1995. The retirement
allowance for service performed on or after the effective date of
this 2003 Act by those persons shall be as provided by ORS
238.300 as in effect immediately before the effective date of
this 2003 Act. + }
SECTION 3. { + 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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