72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
HA to HB 3020
 
LC 3247/HB 3020-1
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 3020
 
       By COMMITTEE ON PUBLIC EMPLOYEES RETIREMENT SYSTEM
 
                              May 6
 
  On page 1 of the printed bill, line 2, after 'ORS' insert '
238.225,'.
  On page 9, after line 24, insert:
  '  { +  SECTION 8. + } ORS 238.225, as amended by section 1,
chapter 9, Oregon Laws 2002, and section 1, chapter 5, Oregon
Laws 2002 (third special session), is amended to read:
  ' 238.225. (1) A participating public employer shall, at
intervals designated by the Public Employees Retirement Board,
transmit to the board those amounts the board determines to be
actuarially necessary to adequately fund the benefits to be
provided by the contributions of the employer under this chapter.
From time to time, the board shall determine the liabilities of
the system and shall set the amount of contributions to be made
by participating public employers, and by other public employers
who are required to make contributions on behalf of members, to
ensure that those liabilities will be funded no more than 40
years after the date on which the determination is made.
  ' (2) For the purpose of the actuarial computation required
under subsection (1) of this section:
  ' (a) The school districts of the state shall be grouped
together and regarded as a single employer; and
  ' (b) All community college districts and the state shall be
grouped together and regarded as a single employer.
  ' (3) For the purpose of the actuarial computation required
under subsection (1) of this section, any participating public
employer may elect to be grouped with the state and all community
college districts and treated as a single employer for actuarial
purposes only. An election under this subsection may be made only
by participating public employers other than school districts and
community college districts. Any public employer that makes an
election under this subsection may not revoke the election.
  ' (4) The computation of the contributions of a participating
public employer that makes an election under the provisions of
subsection (3) of this section shall be based only on the
liabilities of the employer that are incurred after the effective
date of the employer's election. The board shall separately
compute the contribution of the employer for the liabilities
incurred by the employer before the effective date of the
employer's election.
  ' (5) A participating public employer may make an election
under subsection (3) of this section only by the adoption of a
resolution or ordinance by the governing body of the public
employer.
  ' (6) Except as provided in subsection (2) of this section, the
board may not require that any participating public employer be
grouped with any other participating public employer for the
purpose of the actuarial computation required under subsection
(1) of this section. If two participating public employers merge
or otherwise consolidate, and one of the public employers has
made an election under subsection (3) of this section:
  ' (a) The board may not require that the public employer that
is the product of the consolidation be grouped with the state and
all community college districts unless the public employer makes
an election under subsection (3) of this section; and
  ' (b) The board may require that the public employer that is
the product of the consolidation make contributions based on the
group rate only for those members for whom contributions based on
the group rate were made before the consolidation.
  ' (7) Except as provided in this section, the board may not
group participating public employers for the purpose of the
actuarial computation required by subsection (1) of this section.
  ' (8) If a public employer is grouped with any other public
employer for the purpose of the actuarial computation required
under subsection (1) of this section, and the individual public
employer makes a lump sum payment that is in addition to the
normal contribution of the public employer and that is designated
for application only against accrued unfunded liabilities
attributable to the employees of the individual public employer,
the board shall adjust the amount of contributions to be made by
the individual public employer to ensure that the benefit of the
lump sum payment accrues only to the individual public employer
making the payment. An individual public employer that makes a
lump sum payment under the provisions of this subsection shall
remain grouped with other public employers as provided in this
section for the purpose of all liabilities of the employer that
are not paid under this subsection. The board by rule may
establish a minimum lump sum payment that must be made by an
individual public employer before adjusting contributions under
this subsection. Notwithstanding any minimum lump sum payment
established by the board, the board must allow an individual
public employer to make a lump sum payment under the provisions
of this subsection if the payment is equal to the full amount of
the individual public employer's accrued unfunded liabilities.
  ' (9) The board shall establish a separate account within the
fund for each lump sum payment made under subsection (8) of this
section or made by any other participating public employer that
is not grouped with other public employers under this section.
The board shall credit to each account all interest and other
income received from investment of the account funds during the
calendar year  { - , less any amounts withheld from earnings for
administrative expenses under ORS 238.610 or paid into the
reserve account established under ORS 238.670 (1) - } .
 { + Except as provided in subsection (10) of this section, the
board may not collect any administrative expense or other charge
from the account or from earnings on the account. + } The account
shall be used to offset contributions that the public employer
would otherwise be required to make for the liabilities against
which the lump sum payment is applied.
  '  { +  (10) The board may charge a participating public
employer expenses for administration of an account established
under subsection (9) of this section in an amount not to exceed
$2,500 during the year in which the account is established and
the immediately following two calendar years, and in an amount
not to exceed $1,000 in all subsequent years. + }
  '  { - (10) - }  { +  (11) + } If a participating public
employer has any liabilities that are attributable to creditable
service by employees of the employer before the participating
public employer was grouped with other public employers, whether
under the provisions of this section or pursuant to board rule,
any lump sum payment made under subsection (8) of this section
must be applied first against those liabilities, with the oldest
such liability being paid first. Any amounts remaining after
application under this subsection must be deposited in a separate
account established under subsection (9) of this section.'.
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