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 2945
Senate Bill 897
Sponsored by COMMITTEE ON COMMERCE AND WORKFORCE DEVELOPMENT
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.
Increases membership of Public Employees Retirement Board from
five to seven members. Provides that one new member must be
public employee who is in appropriate bargaining unit or retired
member of Public Employees Retirement System who retired from
position in appropriate bargaining unit. Provides that one new
member must have experience in business management, pension
management or investing and may not be member of system,
beneficiary of member of system, or have any interest in benefits
provided by system.
Allows member of system to request verification of retirement
data before retirement. Provides that, at member's retirement,
board may not use creditable service or final average salary less
than that specified in verification, as adjusted by reason of
member's service and salary after date specified in verification.
Provides that retired members of Oregon Public Service
Retirement Plan are eligible for coverage under health insurance
plans contracted for by Public Employees Retirement Board.
Requires that member receive retirement credit for certain
retroactive payments of salary.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
amending ORS 238.005, 238.630, 238.640, 238A.005, 238A.050,
293.706 and 293.711; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
{ +
MEMBERSHIP OF PUBLIC EMPLOYEES RETIREMENT BOARD + }
SECTION 1. ORS 238.630 is amended to read:
238.630. (1) The governing authority of the { + Public
Employees Retirement + } System shall be a board known as the
Public Employees Retirement Board and consisting of
{ - five - } { + seven + } members appointed by the Governor
subject to confirmation by the Senate in the manner provided in
ORS 171.562 and 171.565. Except as otherwise provided in ORS
238.640, the term of each member shall be three years. The
Governor shall designate one member to serve as chairperson, who
shall serve as chairperson at the pleasure of the Governor.
(2) The board shall have:
(a) The powers and privileges of a corporation, including the
right to sue and be sued in its own name as such board; and
(b) The power and duty, subject to the limitations of this
chapter and ORS chapter 238A, of managing the system.
(3) The board:
(a) Shall arrange for actuarial service for the system;
(b) Shall employ a director;
(c) Shall create such other positions as it deems necessary to
sound and economical administration of the system, which
positions the director shall fill by appointment;
(d) Shall, with the approval of the Director of the Oregon
Department of Administrative Services, and as otherwise provided
by law, fix the salaries of all persons employed for purposes of
administering the system;
(e) Shall publish and distribute to all employer and employee
members of the system an annual report including a summary of
investments of moneys in the fund, investment earnings,
significant legislative or administrative changes in the system
and other pertinent information on the operation of the system
for the preceding year;
(f) Shall determine the actuarial equivalency of optional forms
of retirement allowances and pensions and adopt for that purpose
the necessary actuarial equivalency factor tables in the manner
provided by ORS 238.607, which shall constitute a part of the
system; and
(g) Shall adopt rules and take all actions necessary to
maintain qualification of the Public Employees Retirement System
and the Public Employees Retirement Fund as a qualified
governmental retirement plan and trust under the Internal Revenue
Code and under regulations adopted pursuant to the Internal
Revenue Code. Rules under this paragraph may impose limits on
contributions to the system, limits on benefits payable from the
system and other limitations or procedures required or imposed
under federal law or regulation for the purpose of qualification
of the Public Employees Retirement System and Public Employees
Retirement Fund under the Internal Revenue Code as a governmental
retirement plan and trust.
(4) The board established by this section shall succeed to all
the duties and prerogatives of the Public Employees Retirement
Board created by chapter 401, Oregon Laws 1945, in relation to
the Public Employees Retirement Fund, and in addition shall
perform all duties required of it by ORS 237.950 to 237.980, in
regard to moneys payable to or from such fund.
(5) The board shall identify by rule those records that must be
maintained by participating public employers for the purposes of
subsection (3)(g) of this section. A participating public
employer shall maintain records for all employees who are members
of the system as required by board rules, and shall provide that
information to the board upon request.
SECTION 2. ORS 238.640 is amended to read:
238.640. (1) All members of the Public Employees Retirement
Board must be at least 21 years of age, be citizens of the United
States and have been residents of the state for at least two
years immediately preceding appointment to the board.
(2) One member of the board must be:
(a) An employee of the state in a management position at the
time of appointment and throughout the term of appointment; or
(b) A person who holds an elective office, by election or
appointment, in the governing body of a participating public
employer, other than the state.
(3) { - One - } { + A second + } member must be a public
employee, as defined in ORS 243.650, who is in an appropriate
bargaining unit, as defined in ORS 243.650, and who has an
exclusive representative at the time of the member's appointment
and throughout the term of the member. Membership on the board
does not affect the status of the person as a public employee, as
defined in ORS 243.650.
{ + (4) A third member must either meet the qualifications
specified in subsection (3) of this section or be a retired
member of the Public Employees Retirement System who retired from
a position in an appropriate bargaining unit as defined in ORS
243.650. + }
{ - (4) - } { + (5) + } { - Three - } { + Four + }
members of the board must have experience in business management,
pension management or investing. A member appointed under this
subsection may not be a member of the Public Employees Retirement
System or a beneficiary of a member of the system, and may not
have any interest in benefits provided by the system.
{ - (5) - } { + (6) + } Notwithstanding the qualifications
established for members of the board under this section, all
members of the board have the same fiduciary duties and must
exercise the same degree of independent judgment.
{ - (6) - } { + (7) + } Any vacancy on the board shall be
filled by appointment for the unexpired term of the member
replaced. Members of the board may be reappointed.
{ - (7) - } { + (8) + } Except as provided in subsection
{ - (8) - } { + (9) + } of this section, a member of the board
is entitled to compensation and expenses as provided in ORS
292.495 from the Public Employees Retirement Fund.
{ - (8) - } { + (9) + } Any member of the board who is an
active member of the system shall be released by the
participating public employer who employs the member for the
purpose of conducting the official business of the board. The
wages or salary of the member shall not be reduced during periods
that the member is released from duty for the purpose of
conducting the official business of the board. The board shall
reimburse a public employer for the cost of continuing the wages
or salary of the member while the member is released from duty
under this subsection. A member who continues to receive wages or
salary under the provisions of this subsection shall not receive
compensation under ORS 292.495, but shall receive travel and
other expenses provided for under ORS 292.495. The provisions of
this subsection do not apply to any person who is a member of the
board and who holds another office that is subject to the
provisions of section 10, Article II of the Oregon Constitution,
prohibiting the holding of more than one lucrative office.
SECTION 3. ORS 293.706 is amended to read:
293.706. (1) There is created the Oregon Investment Council,
consisting of five voting members and one nonvoting member.
(2) The Governor shall appoint four voting members, subject to
Senate confirmation in the manner provided in ORS 171.562 and
171.565. The members appointed by the Governor must be qualified
by training and experience in the field of investment or finance.
(3) The Governor may appoint a member of the council under
subsection (2) of this section who is also a member of the Public
Employees Retirement Board appointed under ORS 238.640
{ - (4) - } { + (5) + }. Except as provided in this
subsection, members appointed by the Governor may not hold any
other public office or public employment.
(4) The State Treasurer shall be a voting member.
(5) The Director of the Public Employees Retirement System
shall be an ex officio member of the council with no voting
power.
(6) The term of office of each appointed member of the council
is four years, but each appointed member serves at the pleasure
of the Governor. A vacancy in the appointed membership occurring
other than by expiration of term shall be filled in the same
manner as the original appointment, but for the unexpired term
only.
(7) An appointed member may not be appointed to more than two
full terms in any 12-year period.
SECTION 4. ORS 293.711 is amended to read:
293.711. (1) Except as provided in subsection (2) of this
section, a member of the Oregon Investment Council is entitled to
compensation and expenses as provided in ORS 292.495.
(2) A member of the council who is also a member of the Public
Employees Retirement Board is entitled to compensation and
expenses as provided in ORS 238.640 { - (7) and (8) - } { +
(8) and (9) + }.
(3) The council shall select one of its members as chairperson,
for a term and with powers and duties necessary for the
performance of the functions of the office as the council
determines.
(4) A person may not serve as chairperson of the council for
more than four years in any 12-year period.
SECTION 5. { + (1) The amendments to ORS 238.630, 238.640,
293.706 and 293.711 by sections 1 to 4 of this 2009 Act become
operative on January 1, 2010.
(2) The terms of the two new members of the Public Employees
Retirement Board provided for in the amendments to ORS 238.630
and 238.640 by sections 1 and 2 of this 2009 Act commence on
January 1, 2010.
(3) Notwithstanding subsection (1) of this section, the
Governor may appoint the two new members required by ORS 238.630
and 238.640, as amended by sections 1 and 2 of this 2009 Act, and
the Senate may confirm the two new members in the manner provided
in ORS 171.562 and 171.565 before the operative date specified in
subsection (1) of this section. + }
{ +
VERIFICATION OF RETIREMENT BENEFITS + }
SECTION 6. { + Section 7 of this 2009 Act is added to and made
a part of ORS chapter 238. + }
SECTION 7. { + (1) Not earlier than two years before a
member's earliest service retirement age, a member may request a
verification of retirement data from the Public Employees
Retirement Board. Upon receiving a request under this section,
the board shall provide a verification that includes the
following data, as reflected in the records of the Public
Employees Retirement System:
(a) The years and months of creditable service accrued by the
member as of a date specified in the verification.
(b) The member's final average salary as of a date specified in
the verification.
(c) The member's regular account balance, and any variable
account balance, as of the end of a calendar year specified in
the verification.
(d) If applicable, the amount of unused sick leave accumulated
by the member as of a date specified in the verification.
(e) A monthly service retirement allowance computed under ORS
238.300 as of a date specified in the verification using the data
provided in the verification.
(2) A member of the system may dispute the accuracy of the data
provided in the verification by filing a written notice of
dispute with the board not more than 60 days after the date on
which the verification is provided to the member. Upon receiving
a notice of dispute under this subsection, the board shall
determine the accuracy of the disputed data and make a written
decision either affirming the accuracy of the data and service
retirement allowance computed based on that data, or changing the
computation using corrected data. The board shall provide to the
member a copy of the decision and a written explanation of any
applicable statutes and rules. The member may seek judicial
review of the decision as provided in ORS 183.484 and rules of
the board.
(3) When a member who received a verification under this
section retires, the creditable service and final average salary
used in calculating the member's service retirement allowance may
not be less than the creditable service and final average salary
provided in the verification, plus any additional adjustments
based on the member's service or salary after the date specified
in the verification. The regular and variable accounts of the
member shall be adjusted for earnings and losses credited to the
accounts from the end of the calendar year specified in the
verification to the member's effective retirement date, in
accordance with rules adopted by the board. The amount of unused
sick leave at retirement shall be adjusted for the leave used and
accrued after the date specified in the verification.
(4) A member shall be provided with one verification under this
section at no cost. The board may establish procedures for
recovering administrative costs from members for services in
providing additional verifications. + }
{ +
PARTICIPATION OF OPSRP MEMBERS IN + }
{ +
PERS HEALTH INSURANCE PLANS + }
SECTION 8. ORS 238A.050 is amended to read:
238A.050. (1) The Oregon Public Service Retirement Plan is part
of the Public Employees Retirement System and is administered by
the Public Employees Retirement Board.
(2) { + Section 7 of this 2009 Act and + } ORS 238.225,
238.229, 238.231, { + 238.410, + } 238.445, 238.450, 238.455,
238.458, 238.460, 238.465, 238.470, 238.600, 238.601, 238.605,
238.610, 238.615, 238.618, 238.630, 238.635, 238.640, 238.645,
238.655, 238.660, 238.661, 238.665, 238.675, 238.692, 238.694,
238.695, 238.696, 238.698, 238.700, 238.705, 238.710 and 238.715
apply to the Oregon Public Service Retirement Plan.
(3) The Oregon Investment Council shall invest the assets of
the Oregon Public Service Retirement Plan as a part of the Public
Employees Retirement Fund. Except as provided by subsection (4)
of this section, the investment of Oregon Public Service
Retirement Plan assets is subject to the provisions of ORS
293.701 to 293.820. The Oregon Investment Council may invest
assets of the individual account program and pension program
differently than the other assets of the Public Employees
Retirement System.
(4) Investment of the assets of the Oregon Public Service
Retirement Plan is not subject to the limitations imposed by ORS
293.726 (6).
(5) The board may contract with a private provider for the
administration of the individual account program. The board is
not subject to the provisions of ORS chapter 279A or 279B in
awarding a contract under the provisions of this subsection. The
board shall establish procedures for inviting proposals and
awarding contracts under this subsection.
{ +
RETIREMENT CREDIT FOR RETROACTIVE PAYMENTS + }
SECTION 9. { + Section 10 of this 2009 Act is added to and
made a part of ORS chapter 238. + }
SECTION 10. { + (1) For the purpose of computing salary under
this chapter and ORS chapter 238A, the salary of a member
includes retroactive payments made to an employee to correct a
clerical error.
(2) For the purpose of computing salary under this chapter and
ORS chapter 238A, the salary of a member includes retroactive
payments made to an employee pursuant to a judgment,
administrative order, arbitration award, conciliation agreement
or settlement agreement that resolves a dispute or claim based on
an employee's rights under employment or wage law or under a
collective bargaining agreement.
(3) Retroactive payments included in a member's salary under
this subsection shall be allocated to and deemed paid in the
periods in which the work was done or in which the work would
have been done, and the member shall receive retirement credit
for the period of time to which the payment is allocated. + }
SECTION 11. ORS 238.005 is amended to read:
238.005. For purposes of this chapter:
(1) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
(2) 'Board' means the Public Employees Retirement Board.
(3) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
(4) 'Continuous service' means service not interrupted for more
than five years, except that such continuous service shall be
computed without regard to interruptions in the case of:
(a) An employee who had returned to the service of the employer
as of January 1, 1945, and who remained in that employment until
having established membership in the Public Employees Retirement
System.
(b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership
in the Public Employees Retirement System.
(5) 'Creditable service' means any period of time during which
an active member is being paid a salary by a participating public
employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of
computing years of 'creditable service,' full months and major
fractions of a month shall be considered to be one-twelfth of a
year and shall be added to all full years. ' Creditable service'
includes all retirement credit received by a member.
(6) 'Earliest service retirement age' means the age attained by
a member when the member could first make application for
retirement under the provisions of ORS 238.280.
(7) 'Employee' includes, in addition to employees, public
officers, but does not include:
(a) Persons engaged as independent contractors.
(b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total 600 hours in any calendar year.
(c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
(d) Persons employed and paid from federal funds received under
the Emergency Job and Unemployment Assistance Act of 1974 (Public
Law 93-567) or any other federal program intended primarily to
alleviate unemployment. However, any such person shall be
considered an 'employee' if not otherwise excluded by paragraphs
(a) to (c) of this subsection and the public employer elects to
have the person so considered by an irrevocable written notice to
the board.
(e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement
plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the
system.
(8) 'Final average salary' means whichever of the following is
greater:
(a) The average salary per calendar year paid by one or more
participating public employers to an 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 fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
(b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
(9) 'Firefighter' does not include a volunteer firefighter, but
does include:
(a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
(b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
(10) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
(11) 'Fund' means the Public Employees Retirement Fund.
(12)(a) 'Member' means a person who has established membership
in the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
(b) 'Active member' means a member who is presently employed by
a participating public employer in a qualifying position and who
has completed the six-month period of service required by ORS
238.015.
(c) 'Inactive member' means a member who is not employed in a
qualifying position, whose membership has not been terminated in
the manner described by ORS 238.095, and who is not retired for
service or disability.
(d) 'Retired member' means a member who is retired for service
or disability.
(13)(a) 'Member account' means the regular account and the
variable account.
(b) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
(c) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
(14) 'Normal retirement age' means:
(a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
(b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
(15) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
(16) 'Police officer' includes:
(a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
(b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
(c) Employees of the Oregon Liquor Control Commission who are
classified as enforcement officers by the administrator of the
commission.
(d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
(e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
(f) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
(g) Police officers appointed under ORS 276.021 or 276.023.
(h) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
(i) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
(j) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
(k) Investigators of the Criminal Justice Division of the
Department of Justice.
(L) Corrections officers as defined in ORS 181.610.
(m) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
(n) The Director of the Department of Corrections.
(o) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
(p) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
(q) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
(r) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
(s) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
(t) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
(17) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
(18) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
(19) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 or more hours of service in a calendar year, excluding any
service in a job for which a participating public employer does
not provide benefits under this chapter pursuant to an
application made under ORS 238.035.
(20) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
(21)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
(b) 'Salary' includes but is not limited to:
(A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
(B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
(C) Retroactive payments { - made to an employee to correct a
clerical error or pursuant to an award by a court or by order of
or a conciliation agreement with an administration agency charged
with enforcing federal or state law protecting the employee's
rights to employment or wages, which shall be allocated to and
deemed paid in the periods in which the work was done or in which
it would have been done - } { + described in section 10 of this
2009 Act + }; and
(D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
(c) 'Salary' or 'other advantages' does not include:
(A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
(B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has
no cash option;
(C) Payments made on account of an employee's death;
(D) Any lump sum payment for accumulated unused sick leave;
(E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;
(F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
(G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services
qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
(H) Payments for instructional services rendered to
institutions of the Department of Higher Education or the Oregon
Health and Science University when such services are in excess of
full-time employment subject to this chapter. A person employed
under a contract for less than 12 months is subject to this
subparagraph only for the months to which the contract pertains;
or
(I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee.
(22) 'School year' means the period beginning July 1 and ending
June 30 next following.
(23) 'System' means the Public Employees Retirement System.
(24) 'Vested' means being an active member of the system in
each of five calendar years.
(25) 'Volunteer firefighter' means a firefighter whose position
normally requires less than 600 hours of service per year.
SECTION 12. ORS 238A.005 is amended to read:
238A.005. For the purposes of this chapter:
(1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
(2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
(3) 'Board' means the Public Employees Retirement Board.
(4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
(a) Persons engaged as independent contractors;
(b) Aliens working under a training or educational visa;
(c) Persons, other than workers in the Industries for the Blind
Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
(d) Persons categorized by a participating public employer as
student employees;
(e) Any person who is an inmate of a state institution;
(f) Employees of foreign trade offices of the Economic and
Community Development Department who live and perform services in
foreign countries under the provisions of ORS 285A.075 (1)(g);
(g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
(h) Employees of the Oregon University System who are actively
participating in an optional retirement plan offered under ORS
243.800;
(i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;
(j) Any person who belongs to a class of employees who are not
eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
(k) Any person who is retired under ORS 238A.100 to 238A.245 or
ORS chapter 238 and who continues to receive retirement benefits
while employed; and
(L) Judges.
(5) 'Firefighter' means:
(a) A person employed by a local government, as defined in ORS
174.116, whose primary job duties include the fighting of fires;
(b) The State Fire Marshal, the chief deputy state fire marshal
and deputy state fire marshals; and
(c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
(6) 'Fund' means the Public Employees Retirement Fund.
(7)(a) 'Hour of service' means:
(A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
(B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
(b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
(8) 'Inactive member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
(9) 'Individual account program' means the defined contribution
individual account program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
(10) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
(11) 'Participating public employer' means a public employer as
defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
(12) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
(13) 'Police officer' means a police officer as described in
ORS 238.005.
(14) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to ORS 238A.070 (2).
(15) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
(16)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
(b) 'Salary' includes the following amounts:
(A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
(B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
(C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on August 29, 2003.
(D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on August 29, 2003.
(E) Retroactive payments { - made to an employee to correct a
clerical error, pursuant to an award by a court or by order of or
pursuant to a conciliation agreement with an administration
agency charged with enforcing federal or state law protecting the
employee's rights to employment or wages, which shall be
allocated to and deemed paid in the periods in which the work was
done or in which the work would have been done - } { +
described in section 10 of this 2009 Act + }.
(F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
(G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
(H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
(c) 'Salary' does not include the following amounts:
(A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
(B) Payments made on account of an employee's death.
(C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
(D) Any severance payment, accelerated payment of an employment
contract for a future period or advance against future wages.
(E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
(F) Payment for a leave of absence after the date the employer
and employee have agreed that no future services in a qualifying
position will be performed.
(G) Payments for instructional services rendered to
institutions of the Department of Higher Education or the Oregon
Health and Science University when those services are in excess
of full-time employment subject to this chapter. A person
employed under a contract for less than 12 months is subject to
this subparagraph only for the months covered by the contract.
(H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
(I) Any amount in excess of $200,000 for a calendar year. If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
(17) 'System' means the Public Employees Retirement System.
SECTION 13. { + The unit captions used in this 2009 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2009 Act. + }
SECTION 14. { + 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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