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 1995
 
                           A-Engrossed
 
                         House Bill 2401
                  Ordered by the House April 6
            Including House Amendments dated April 6
 
Sponsored by Representative SCHAUFLER (at the request of AFSCME
  Council 75) (Presession filed.)
 
 
                             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.
 
  Establishes service retirement allowance for telecommunicators
who are members of Public Employees Retirement System, have 25
years or more of creditable service in system as telecommunicator
and retire before normal retirement age.
  Provides that earliest retirement age for telecommunicators who
are members of Oregon Public Service Retirement Plan is 55 or age
at which telecommunicator acquires 25 years of retirement credit
as telecommunicator, whichever is first.
    { - Establishes reduced cost-of-living adjustment for
telecommunicators who retire before age 55. - }
   { +  Provides that telecommunicators who retire before age 55
do not receive annual cost-of-living adjustment until attaining
age 55. + }
 
                        A BILL FOR AN ACT
Relating to public employee retirement; amending ORS 238.078,
  238.082, 238.088, 238.280 and 238A.165.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 238.280 is amended to read:
  238.280. (1) Except as otherwise provided in this section, a
member of the Public Employees Retirement System who attains the
age of 55 shall be retired upon written application by the member
to the Public Employees Retirement Board on a reduced service
retirement allowance,   { - which shall be - }   { + that is + }
the actuarial equivalent of the service retirement allowance
provided for in ORS 238.300 at the normal retirement age.
   { +  (2) A member of the system who has 25 years or more of
creditable service in the system as a telecommunicator, as
defined in ORS 181.610, shall be retired upon written application
by the member to the board on a reduced service retirement
allowance that is the actuarial equivalent of the service
retirement allowance provided for in ORS 238.300 at the normal
retirement age. A member who retires under this subsection before
attaining the age of 55 shall not receive a cost-of-living
adjustment under ORS 238.360 until the member attains the age of
55. + }
 
    { - (2) - }   { + (3) + } A police officer or firefighter who
is a member of the system and attains the age of 50 shall be
retired upon written application by the member to the board on a
reduced service retirement allowance, which shall be the
actuarial equivalent of the service retirement allowance provided
for in ORS 238.300 at the normal retirement age. The provisions
of this subsection apply to an inactive member of the system who
was employed as a police officer or firefighter in a qualifying
position immediately before becoming inactive.
    { - (3) - }   { + (4) + } Notwithstanding ORS 238.215
(2)(b)(B):
  (a) A police officer or firefighter who is a member of the
system, attains the age of 50 and has a combined total of 25
years or more of creditable service in the system and prior
service credit shall be retired upon written application by the
member to the board on a service retirement allowance including,
without actuarial reduction, the same current service pension and
prior service pension provided for in ORS 238.300 at the normal
retirement age. The provisions of this paragraph apply to an
inactive member of the system who was employed as a police
officer or firefighter in a qualifying position immediately
before becoming inactive.
  (b) An employee who is a member of the system, has a combined
total of 30 years or more of creditable service in the system and
prior service credit, and is not eligible to retire under
paragraph (a) of this subsection shall be retired upon written
application by the member to the board on a service retirement
allowance including, without actuarial reduction, the same
current service pension and prior service pension provided for in
ORS 238.300 at the normal retirement age.
  SECTION 2. ORS 238A.165 is amended to read:
  238A.165. (1) Except as provided in this section, earliest
retirement age for a member of the pension program is 55 years of
age.
  (2) Earliest retirement age for a member of the pension program
who retires from service as a police officer or firefighter is 50
years of age if the member has held a position as a police
officer or firefighter continuously for a period of not less than
five years immediately before the effective date of retirement.
 { - Earliest retirement date for a member described in this
subsection is not later than the date the member reaches 55 years
of age. - }
   { +  (3) If a member of the pension program has 25 years or
more of retirement credit as a telecommunicator, as defined in
ORS 181.610, earliest retirement age for the member is 55 years
of age or the age of the member when the member acquires a total
of 25 years or more of retirement credit as a telecommunicator,
whichever occurs first. A member who retires under this
subsection before attaining the age of 55 shall not receive a
cost-of-living adjustment under ORS 238A.210 until the member
attains the age of 55. + }
    { - (3) - }   { + (4) + } If a member has a break in service
under ORS 238A.025 and is entitled to receive a retirement
allowance under ORS chapter 238 in addition to a pension under
this chapter, earliest retirement age under this chapter is the
age attained by a member when the member could first make
application for retirement under the provisions of ORS 238.280.
    { - (4) - }   { + (5) + } A member of the pension program who
has reached earliest retirement age may retire on an early
retirement date that is the first day of any month on or after
the member has reached earliest retirement age.
  SECTION 3. ORS 238.078 is amended to read:
  238.078. (1)(a) 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 person and any election
of option for payment of retirement benefits theretofore made by
the person shall be canceled; and thereafter upon retiring such
person may elect 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 retired member who has been retired for less than six
consecutive calendar months 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.
  (3) 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) 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) Subsection (4) of this section does not apply to any member
who retires under the provisions of ORS 238.280 (1) { + , (2) or
(3) + }   { - or (2) - } .
  SECTION 4. ORS 238.082 is amended to read:
  238.082. (1) Subject to the limitations in subsection (2) of
this section, any public employer may employ any person receiving
a service retirement allowance if the administrative head of such
employer is satisfied that such employment is in the public
interest.
  (2) The period or periods of employment by one or more public
employers of any person receiving a service retirement allowance
may not total 1,040 hours or more in any calendar year; but if
the person is receiving old-age, survivors or disability
insurance benefits under the federal Social Security Act, the
person may be employed for the number of hours for which the
salary equals the maximum allowed for receipt of the full amount
of those benefits to which the person is entitled.
  (3) The limitations on employment imposed by subsection (2) of
this section do not apply to a retired member who is employed as
a teacher or as an administrator, as those terms are defined in
ORS 342.120, if the retired member is employed by a school
district or education service district that has its
administrative office located within a county with a population
of not more than 35,000 inhabitants according to the latest
federal decennial census. A retired member who is employed as a
teacher, as defined in ORS 342.120, by the same public employer
that employed the member at the time of retirement remains in the
same collective bargaining unit that included the member before
retirement.
  (4) The limitations on employment imposed by subsection (2) of
this section do not apply to a retired member who is employed:
  (a) By the sheriff of a county with a population of fewer than
75,000 inhabitants, according to the latest federal decennial
census;
  (b) By the municipal police department of a city with a
population of fewer than 15,000 inhabitants, according to the
latest federal decennial census;
  (c) By the state or a county for work in a correctional
institution located in a county with a population of fewer than
75,000 inhabitants, according to the latest federal decennial
census;
  (d) By the Black Butte Ranch Rural Fire Protection District,
the Black Butte Ranch Service District or the Sunriver Service
District; or
  (e) By the Oregon State Police for work in a county with a
population of fewer than 75,000 inhabitants, according to the
latest federal decennial census.
  (5) The limitations on employment imposed by subsection (2) of
this section do not apply to a retired member who is employed to
temporarily replace an employee who serves in the National Guard
or in a reserve component of the Armed Forces of the United
States and who is called to federal active duty.
  (6) The limitations on employment imposed by subsection (2) of
this section do not apply to a retired member who is employed by
a road assessment district organized under ORS 371.405 to
371.535.
  (7) Subsections (3) to (6) of this section do not apply to any
member who retires under the provisions of ORS 238.280 (1) { + ,
(2) or (3) + }   { - or (2) - } .
  (8) Employment under this section does not affect the status of
a person as a retired member of the system and a recipient of
retirement benefits under this chapter.
  SECTION 5. ORS 238.088 is amended to read:
  238.088. (1) Except as provided in subsection (2) of this
section, a person who is elected to a full-time salaried office
of the state or one of the participating political subdivisions
thereof, or who is appointed to a full-time salaried office
having a term fixed by statute or charter, whether or not the
person has been retired, does not forfeit any rights accrued or
accruing to the person under this chapter. However, for the
period that such person holds such office the person is not
entitled to any pension or annuity provided by this chapter. Upon
ceasing to hold such office, benefits shall be computed or
recomputed by the Public Employees Retirement Board on the basis
of age then attained.
  (2) If a person is elected or appointed to the office of
sheriff or county judge or commissioner in a county with a
population of fewer than 75,000 inhabitants, according to the
latest federal decennial census, and the person does not elect to
become an active member of the system under ORS 238.015 (5), the
 
person shall continue to be a retired member and to receive
retirement benefits for as long as the person holds the office.
  (3) Subsection (2) of this section does not apply to any member
who retires under the provisions of ORS 238.280 (1) { + , (2) or
(3) + }   { - or (2) - } .
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