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 1615
House Bill 2408
Sponsored by COMMITTEE ON PUBLIC EMPLOYEE RETIREMENT SYSTEM
(PERS)
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.
Prohibits active membership in Public Employees Retirement
System on and after January 1, 2004. Provides that person who is
active member of system on December 31, 2003, be treated in
manner provided by law for inactive members.
Directs Public Employees Retirement Board to continue to
administer system for benefit of inactive and retired members.
Provides for direct petition to Supreme Court for review of
constitutionality of Act.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to public employee retirement; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2003 Act are added to
and made a part of ORS chapter 238. + }
SECTION 2. { + (1) A person may not become a member of the
Public Employees Retirement System on or after January 1, 2004.
(2) A person may not be an active member of the system on and
after January 1, 2004. On and after January 1, 2004, any person
who is an active member of the system on December 31, 2003, shall
be treated in the manner provided by law for inactive members and
shall be entitled to the benefits provided by ORS 238.425 if the
person has made contributions to the fund during each of five
calendar years. If a person who is an active member on December
31, 2003, has not made contributions to the fund during each of
five calendar years, the Public Employees Retirement Board shall
pay to the person the amount that is in the person's member
account as of January 1, 2004. Payment to the person shall cancel
all membership rights of the person in the system.
(3) On and after January 1, 2004, no contributions may be made
by or on behalf of any employee of a public employer under the
provisions of ORS 238.200.
(4) Except as provided in subsection (5) of this section, an
employee of a public employer may not acquire creditable service
by reason of any period of employment with a public employer on
or after January 1, 2004.
(5) This section does not affect the ability of a person to
acquire creditable service under the provisions of ORS 238.105,
238.115, 238.125, 238.135, 238.145, 238.156 or 238.157. A person
seeking creditable service under the provisions of ORS 238.115
must return to the employment of a participating public employer
for 10 years as a condition of acquiring creditable service under
ORS 238.115 and shall be entitled to one full month of creditable
service forfeited by the withdrawal for each three full months of
employment with the employer.
(6) For the purpose of acquiring credit under ORS 238.105,
238.115, 238.125, 238.135, 238.145, 238.156 or 238.157 or any
other provision of this chapter that requires a specified number
of years of creditable service as a condition of receiving a
benefit, no period of employment with a public employer on and
after January 1, 2004, may be used toward the specified number of
years of creditable service required under those statutes.
(7) Notwithstanding any other provision of this chapter, this
section applies to membership in the system on and after January
1, 2004. This section applies to judge members. + }
SECTION 3. { + On and after January 1, 2004, the Public
Employees Retirement Board shall continue to administer the
Public Employees Retirement System as provided in this chapter
for the benefit of inactive and retired members. The provisions
of section 2 of this 2003 Act do not affect the responsibility of
participating public employers to make employer contributions for
liabilities attributable to service performed before January 1,
2004. + }
SECTION 4. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
any provision of section 2 or 3 of this 2003 Act violates 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 any provision of section 2 or 3
of 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
within 60 days after the effective date of this 2003 Act.
(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 remedy provided by this section is in addition to any
other remedy or procedure that may be available to determine
whether any provision of section 2 or 3 of this 2003 Act violates
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. + }
----------