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 666
House Bill 2285
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.
Prohibits retired member of Public Employees Retirement System
who elected to receive double lump sum retirement benefit and who
has been retired for six consecutive calendar months or less from
being reemployed by public employer participating in system.
Provides that such member who has been retired for more than six
consecutive calendar months may be reemployed by participating
public employer but may acquire benefits only under Oregon Public
Service Retirement Plan.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
and amending ORS 238.078.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 238.078 is amended to read:
238.078. (1)(a) { + Except as provided in subsection (3) of
this section, + } a retired member who has been retired for more
than six consecutive calendar months may be reemployed by a
participating public employer in the manner provided by this
subsection.
(b) Any person reemployed as provided in this subsection shall
resume making contributions to the retirement fund, and the
employer shall make contributions on behalf of the person as
provided in ORS 238.225. Payments of retirement allowance
received by such person during separation from the service shall
not be repaid into the retirement fund after the person reenters
public employment except as provided in paragraph (c) of this
subsection; but the amount of such payment shall be deducted from
such employee's reserve in the retirement fund and the remainder
shall be credited pro rata to the funds from which it was
derived.
(c) Upon reentering public employment as provided in this
subsection, the former retirement of { - such - } { + the + }
person and any election of option for payment of retirement
benefits
{ - theretofore - } { + previously + } made by the person
shall be canceled { - ; and thereafter - } { + and the person
shall become an active member of the system. + } Upon retiring
{ - such - } { + , the + } person may elect { + for all
creditable service under this chapter + } any option for payment
of retirement benefits authorized by this chapter, except that a
person who elected to receive lump sum payment of benefits
pursuant to ORS 238.305 (2) { - or (3) - } at the time of
former retirement may not elect any other option at the time of
subsequent retirement unless an amount equal to the lump sum and
the interest that would have accumulated on the sum has been
repaid by the employee to the fund. Upon such subsequent
retirement { + , + } any prior service pension due the employee
shall be derived from the unused portion of the prior service
credit reserve and shall be calculated on the basis of then
attained age.
(2) { + (a) Except as provided in subsection (3) of this
section, + } a retired member who has been retired for { - less
than - } six consecutive calendar months { + or less + }may be
reemployed by a participating public employer only upon immediate
repayment in a lump sum by the member of the amount of retirement
benefits drawn. The member account of the member shall be
reestablished just as it was at the time of earlier retirement
after the lump sum repayment is made.
{ + (b) Upon reentering public employment as provided in this
subsection, the former retirement of the person and any election
of option for payment of retirement benefits previously made by
the person shall be canceled and the person shall become an
active member of the system. Upon retiring, the person may elect
for all creditable service under this chapter any option for
payment of retirement benefits authorized by this chapter.
(3) A retired member who elects to receive a refund service
retirement benefit under ORS 238.305 (3) and who has been retired
for six consecutive calendar months or less may not be reemployed
by a participating public employer. A retired member who elects
to receive a refund service retirement benefit under ORS 238.305
(3) and who has been retired for more than six consecutive
calendar months:
(a) May be reemployed by a participating public employer;
(b) May not reestablish active membership under subsection (1)
of this section; and
(c) Subject to the requirements of ORS chapter 238A, may
establish membership in the Oregon Public Service Retirement
Plan. + }
{ - (3) - } { + (4) + } If a member of the system who
retired before August 21, 1981, is reemployed, as provided in
subsection (1) or (2) of this section, beginning on or after
August 21, 1981, the service retirement allowance received upon
subsequent retirement by the member shall be:
(a) For service before August 21, 1981, an allowance including
a current service pension computed on the basis of ORS 237.147
(2) (1979 Replacement Part).
(b) For service on or after August 21, 1981, an allowance
including a current service pension computed on the basis of ORS
238.300 (2).
{ - (4) - } { + (5) + } A person may be reemployed by a
public employer that is not participating in the system, or may
be employed by a participating public employer in a position that
is in a class of employees that was not designated by the public
employer under ORS 238.035 as a class of employees that become
members of the system, without affecting the person's status as a
retired member or the person's continued receipt of retirement
benefits.
{ - (5) - } { + (6) + } Subsection { - (4) - }
{ + (5) + } of this section does not apply to any member who
retires under the provisions of ORS 238.280 (1) or (2).
SECTION 2. { + The amendments to ORS 238.078 by section 1 of
this 2007 Act do not apply to a retired member of the Public
Employees Retirement System who was reemployed before the
effective date of this 2007 Act by a public employer
participating in the system. + }
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