74th OREGON LEGISLATIVE ASSEMBLY--2007 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 636-1
 
                         House Bill 2284
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for 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 as
introduced.
 
  Provides that person who is absent from service with public
employer by reason of disciplinary action or other administrative
action does not have break in service under Public Employees
Retirement System if person challenges action and is subsequently
reinstated pursuant to judgment, administrative order, settlement
or other resolution of challenge.
 
                        A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
  and amending ORS 238A.025.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 238A.025 is amended to read:
  238A.025. (1) The Oregon Public Service Retirement Plan is
established. The purpose of the Oregon Public Service Retirement
Plan is to provide career public employees with a secure and fair
retirement income at an affordable, stable and predictable cost
to the taxpayers. The Oregon Public Service Retirement Plan is
composed of a pension program and an individual account program.
The pension program and the individual account program are
separate accounts for purposes of federal income tax
qualification, and the assets of each program must be held as
part of the trust established by ORS 238.660 for the exclusive
benefit of the participants and beneficiaries. It is the intent
of the Legislative Assembly that pursuant to section 414(k) of
the Internal Revenue Code the individual account program be
established and maintained as a tax-qualified defined
contribution governmental plan for the purposes of sections 72(d)
and 415 of the Internal Revenue Code. The Public Employees
Retirement Board may create separate accounts within the Public
Employees Retirement Fund for the pension program and the
individual account program.
  (2) Notwithstanding any provision of ORS chapter 238, any
person who is employed by a participating public employer on or
after August 29, 2003, and who has not established membership in
the Public Employees Retirement System before August 29, 2003, is
entitled to receive only the benefits provided under the Oregon
Public Service Retirement Plan for periods of service with
participating public employers on and after August 29, 2003, and
 
has no right or claim to any benefit under ORS chapter 238 except
as specifically provided by this chapter.
  (3)(a) Any person who is an active member of the Public
Employees Retirement System on August 28, 2003, is entitled to
receive the benefits provided by ORS chapter 238 for all service
performed before, on and after August 29, 2003, unless the person
has a break in service on or after August 29, 2003. If the person
has a break in service on or after August 29, 2003, the person is
entitled to receive the benefits provided by ORS chapter 238 for
all creditable service performed before the break in service, and
the benefits provided under the Oregon Public Service Retirement
Plan for periods of service with participating public employers
after the break in service.
  (b) Except as provided in this subsection, a person has a break
in service for the purposes of this subsection if the person
performs no service with a participating public employer in a
qualifying position for a period of six consecutive months.
  (c) If a person leaves employment with a participating public
employer for purposes that would qualify the person for family
leave under ORS 659A.150 to 659A.186, the person has a break in
service for the purposes of this subsection only if the person
performs no service with a participating public employer in a
qualifying position for a period of 12 consecutive months after
leaving employment with the participating public employer.
  (d) If a person leaves employment with a participating public
employer for career development purposes pursuant to written
authorization of the participating public employer under a
written policy of the employer that applies generally to the
class of employees to which the member belongs, the person has a
break in service for the purposes of this subsection only if the
person performs no service with a participating public employer
in a qualifying position for a period of 12 consecutive months
after leaving employment with the participating public employer.
  (e) A person does not have a break in service for the purposes
of this subsection by reason of any period of time during which
the person leaves employment with a participating public employer
for the purpose of serving as a member of the Legislative
Assembly during a legislative session.
  (f) A person does not have a break in service for the purposes
of this subsection by reason of any period of time during which
the person is absent from employment with a participating public
employer and receives a disability retirement allowance under ORS
238.320.
  (g) A person does not have a break in service for the purposes
of this subsection by reason of any period of time during which
the person leaves employment with a participating public employer
based on the seasonal nature of the person's employment as long
as the person returns to employment with the public employer
before the expiration of 12 full calendar months.
   { +  (h) A person does not have a break in service for the
purposes of this subsection by reason of any period of time
during which the person is absent from service with a
participating public employer by reason of a disciplinary action
or other administrative action if:
  (A) The person challenges the disciplinary action or other
administrative action; and
  (B) The person is subsequently reinstated with the public
employer pursuant to a judgment, an administrative order, a
settlement or other resolution of the challenge. + }
  (4) A person establishes membership in the system before August
29, 2003, for the purposes of this section if:
  (a) The person is a member of the system, or a judge member of
the system, on August 28, 2003; or
  (b) The person performed any period of service for a
participating public employer before August 29, 2003, that is
credited to the six-month period of employment required of an
employee under ORS 238.015 before an employee may become a member
of the system.
  (5) Except as provided in this chapter, ORS chapter 238 does
not apply to the Oregon Public Service Retirement Plan.
  (6) The provisions of this section do not apply to a person
elected or appointed as a judge as defined in ORS 238.500.
  SECTION 2.  { + The amendments to ORS 238A.025 by section 1 of
this 2007 Act apply to any period when a person is absent from
service with a participating public employer by reason of a
disciplinary action or other administrative action, without
regard to whether that period occurs before, on or after the
effective date of this 2007 Act. + }
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