75th OREGON LEGISLATIVE ASSEMBLY--2009 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 2353
 
                         House Bill 2704
 
Sponsored by COMMITTEE ON BUSINESS AND LABOR
 
 
                             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.
 
  Eliminates offset for workers' compensation benefits in
calculating disability retirement allowance payable to Tier 2
member of Public Employees Retirement System. Eliminates offset
for workers' compensation benefits in calculating disability
benefit payable to member of Oregon Public Service Retirement
Plan.
  Becomes operative January 1, 2010.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
  amending ORS 238.435 and 238A.235; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 238.435 is amended to read:
  238.435. (1) Notwithstanding the definition of 'salary' or '
other advantages' provided by ORS 238.005, for the purpose of
calculating the retirement allowance of a person who establishes
membership in the system on or after January 1, 1996, as
described in ORS 238.430, the Public Employees Retirement Board
shall not include any lump sum payment for accrued vacation pay
made to the member during the last 36 calendar months of
membership before the effective date of retirement of the member,
or during any period of time taken into account for purposes of
determining the three years in which the member was paid the
highest salary for the purposes of determining the member's final
average salary.
  (2) Notwithstanding the definition of 'final average salary'
provided by ORS 238.005, for the purpose of calculating the
retirement allowance of a person who establishes membership in
the system on or after January 1, 1996, as described in ORS
238.430, and who is not employed by a local government as defined
in ORS 174.116, the term 'final average salary' means whichever
of the following is greater:
  (a) The average salary per calendar year paid to a public
employee who is an active member of the system in three of the
calendar years of membership before the effective date of
retirement of the employee, in which three years the employee was
paid the highest salary. The three calendar years in which the
employee was paid the largest total salary may include calendar
years in which the employee was employed for less than a full
calendar year. If the number of calendar years of active
membership before the effective date of retirement of the
employee is three or less, the final average salary for the
employee is the average salary per calendar year paid to the
public employee in all of those years, without regard to whether
the employee was employed for full calendar years.
  (b) One-third of the total salary paid to a public employee who
is an active member of the system in the last 36 calendar months
of membership before the effective date of retirement of the
employee.
  (3) For the purposes of calculating the final average salary of
a member under subsection (2) of this section, the Public
Employees Retirement Board shall:
  (a) Include any salary paid in or for the calendar month of
separation from employment;
  (b) Exclude any salary for any pay period before the first full
pay period that is included in the three calendar years of
membership under subsection (2)(a) of this section if the three
calendar years were consecutive; and
  (c) Exclude any salary for any pay period before the first full
pay period that is included in the last 36 calendar months of
membership under subsection (2)(b) of this section.
  (4) Notwithstanding the definition of 'final average salary'
provided by ORS 238.005, for the purpose of calculating the
retirement allowance of a person who establishes membership in
the system on or after January 1, 1996, as described in ORS
238.430, and who is employed by a local government as defined in
ORS 174.116, the term 'final average salary' means whichever of
the following is greater:
  (a) The average salary per calendar year earned by a public
employee who is an active member of the system in three of the
calendar years of membership before the effective date of
retirement of the employee, in which three years the employee
earned the highest salary. The three calendar years in which the
employee earned the largest total salary may include calendar
years in which the employee was employed for less than a full
calendar year. If the number of calendar years of active
membership before the effective date of retirement of the
employee is three or less, the final average salary for the
employee is the average salary per calendar year earned by the
public employee in all of those years, without regard to whether
the employee was employed for full calendar years.
  (b) One-third of the total salary earned by a public employee
who is an active member of the system in the last 36 calendar
months of membership before the effective date of retirement of
the employee.
  (5) The normal retirement age is 60 years of age for a member
who establishes membership in the system on or after January 1,
1996, as described in ORS 238.430, and who retires as other than
a police officer or firefighter.
  (6) ORS 238.255 does not apply to any person who establishes
membership in the Public Employees Retirement System on or after
January 1, 1996, as described in ORS 238.430.
    { - (7) Notwithstanding any other provision of this chapter,
for the purpose of calculating a monthly disability retirement
allowance payable to a member who establishes membership in the
system on or after January 1, 1996, as described in ORS 238.430,
the sum of the monthly amount of the disability retirement
allowance and of any monthly payment on account of temporary
total disability or permanent total disability under the
provisions of ORS chapter 656 may not exceed the member's monthly
salary, determined as of the date the member becomes disabled.
The board shall reduce any disability retirement allowance
payable under this chapter in the amount determined to be
necessary by the board to meet the limitation imposed by this
subsection. - }
 
    { - (8) - }  { +  (7) + } Except as provided in this section,
all provisions of this chapter are applicable to persons who
establish membership in the system on or after January 1, 1996,
as described in ORS 238.430.
  SECTION 2.  { + The amendments to ORS 238.435 by section 1 of
this 2009 Act apply to all monthly disability retirement
allowances paid on or after the operative date specified in
section 5 of this 2009 Act. As soon as possible after the
effective date of this 2009 Act, the Public Employees Retirement
Board shall recalculate any disability retirement allowance being
paid on the effective date of this 2009 Act, and the recalculated
disability retirement allowance shall be effective for the month
of December 2009 and payable January 1, 2010. + }
  SECTION 3. ORS 238A.235 is amended to read:
  238A.235. (1)   { - Subject to subsection (3) of this
section, - }  An active member of the pension program described
in subsection (2) of this section who becomes disabled shall
receive a disability benefit in the amount of 45 percent of the
salary of the member determined as of the last full month of
employment before the disability commences.
  (2) The provisions of this section apply only to:
  (a) A member, other than a school employee as defined by ORS
238A.140, who has accrued 10 years or more of retirement credit
before the member becomes disabled;
  (b) A member who is a school employee as defined by ORS
238A.140 and who was an active member in 10 or more calendar
years before the member becomes disabled; or
  (c) A member who becomes disabled by reason of injury or
disease sustained while in the actual performance of duty.
    { - (3)(a) Except as provided by paragraph (b) of this
subsection, the sum of the monthly amount of the disability
benefit under this section and of any monthly payment by reason
of temporary total disability or permanent total disability under
the provisions of ORS chapter 656 may not exceed 75 percent of
the member's monthly salary, determined as of the date the member
becomes disabled. The Public Employees Retirement Board shall
reduce any disability benefit payable under this section in the
amount determined to be necessary by the board to meet the
limitation imposed by this subsection. - }
    { - (b) This subsection does not affect cost-of-living
adjustments under ORS 238A.210, and increases in the monthly
amount of the disability benefit under this section due to those
cost-of-living adjustments may not be considered by the Public
Employees Retirement Board in determining whether the limitation
imposed by this subsection has been exceeded. - }
    { - (4) - }  { +  (3) + } A   { - disability retirement
pension - }   { + disability benefit + } under this section shall
be paid until:
  (a) The member is no longer disabled; or
  (b) The member attains normal retirement age under ORS
238A.160.
    { - (5) - }  { +  (4) + } A member is considered to be
disabled for the purpose of this section if the member is found,
after being examined by one or more physicians selected by the
board, to be mentally or physically incapacitated for an extended
duration and unable to perform any work for which qualified, by
reason of injury or disease that was not intentionally
self-inflicted.
  SECTION 4.  { + The amendments to ORS 238A.235 by section 3 of
this 2009 Act apply to all disability benefits paid on or after
the operative date specified in section 5 of this 2009 Act. As
soon as possible after the effective date of this 2009 Act, the
Public Employees Retirement Board shall recalculate any
disability benefit being paid on the effective date of this 2009
Act, and the recalculated disability benefit shall be effective
for the month of December 2009 and payable January 1, 2010. + }
  SECTION 5.  { + The amendments to ORS 238.435 and 238A.235 by
sections 1 and 3 of this 2009 Act become operative on January 1,
2010. + }
  SECTION 6.  { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
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