75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
HA to HB 3401
 
LC 2724/HB 3401-3
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 3401
 
                      By COMMITTEE ON RULES
 
                             May 29
 
  On page 1 of the printed bill, line 2, after 'retirement; '
insert 'creating new provisions;'.
  In line 25, delete 'subsection (5)' and insert ' subsections
(5) and (6)'.
  On page 2, delete lines 9 through 15 and insert:
  ' (5) Except as provided in subsection (6) of this section, if
the board determines at any time after an actuarial study that
the amounts in an account established under subsection (2) of
this section exceed the amounts necessary to fund the employer's
actuarial liabilities under the system, upon request of the
employer, the board shall apply the excess amounts to offset
contributions to the individual account program that the employer
has agreed to pay under ORS 238A.335 or 238A.340. The board may
apply excess amounts to offset contributions to the individual
account program under this subsection only to the extent that the
application will not result in the balance in the account being
reduced to less than the outstanding principal balance owed on
the bonds issued to fund the account. If the request is made by a
school district, the school district must attach to the request a
copy of a resolution adopted by the district school board for the
district authorizing the request. The board shall adopt rules
governing offsets under the provisions of this subsection.
  ' (6) The board shall apply any excess amounts in an account
established under subsection (2) of this section to offset
contributions to the individual account program pursuant to
subsection (5) of this section only if the board has determined
that applying the excess amounts does not cause the system or the
Public Employees Retirement Fund to lose qualification as a
qualified governmental retirement plan and trust under the
Internal Revenue Code and under regulations adopted pursuant to
the Internal Revenue Code.'.
  In line 41, after the period delete the rest of the line and
line 42 and insert 'This subsection does not prohibit the offset
of contributions to the individual account program under ORS
238.229 (5).'.
  On page 3, after line 43, insert:
  '  { +  SECTION 3. + }  { + As soon as possible after the
effective date of this 2009 Act, the Public Employees Retirement
Board shall seek a ruling from the Internal Revenue Service on
whether the application of excess amounts in an account
established under ORS 238.229 (2) to offset contributions to the
individual account program pursuant to ORS 238.229 (5) would
cause the system or the Public Employees Retirement Fund to lose
qualification as a qualified governmental retirement plan and
trust under the Internal Revenue Code and under regulations
adopted pursuant to the Internal Revenue Code. + } ' .
  In line 44, delete '3' and insert '4'.
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