70th OREGON LEGISLATIVE ASSEMBLY--1999 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 608
Senate Bill 323
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Public Employees Retirement
Board)
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.
Makes miscellaneous changes in laws relating to Public
Employees Retirement System.
Suspends accrual of interest on certain amounts payable in
compensation for taxation of benefits. Requires Public Employees
Retirement Board to employ all reasonable means to find persons
entitled to amounts.
Clarifies definition of final average salary.
Modifies provisions on required spousal consent to member's
election of form for retirement allowance.
Allows board to use electronic fund transfer for any warrant,
check or order required or authorized to be paid out of Public
Employees Retirement Fund.
Allows board to use health insurance providers licensed or
certified in other states.
Allows Public Employees Retirement Board by rule to modify time
for certain purchases of retirement credit when member retires by
reason of disability.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
and amending ORS 238.005, 238.115, 238.125, 238.135, 238.145,
238.157, 238.162, 238.175, 238.410, 238.435, 238.462, 238.580
and 238.660.
Be It Enacted by the People of the State of Oregon:
{ +
INTEREST ON LUMP SUM PAYMENTS FOR COMPENSATION OF + }
{ +
TAXATION OF PERS BENEFITS + }
SECTION 1. { + Section 2 of this 1999 Act is added to and made
a part of ORS chapter 238. + }
SECTION 2. { + (1) The Public Employees Retirement Board shall
employ all reasonable means during the 60-day period following
the effective date of this 1999 Act to locate all persons who are
entitled to receive additional benefit amounts under the
provisions of section 10 (2), (3) and (4), chapter 569, Oregon
Laws 1995. Interest under the provisions of section 10 (5),
chapter 569, Oregon Laws 1995, shall cease to accrue on those
amounts on the 91st day after the effective date of this 1999
Act.
(2) Subsection (1) of this section does not affect the claim of
any person to interest that accrues under section 10, chapter
569, Oregon Laws 1995, before the 91st day after the effective
date of this 1999 Act. + }
{ +
DEFINITION OF FINAL AVERAGE SALARY + }
SECTION 3. ORS 238.005 is amended to read:
238.005. For purposes of this chapter:
(1) The term 'annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
(2) The term 'calendar year' means 12 calendar months
commencing on January 1 and ending on December 31 following.
(3) The term '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.
(4) The term 'creditable service' means any period of time
during which an active member is being paid a salary by a
participating public employer and contributions are being made to
the system either by or on behalf of the member. 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.
(5) The term '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.
(6) The term 'fiscal year' means 12 calendar months commencing
on July 1 and ending on June 30 following.
(7)(a) The term '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 position that meets the
requirements of ORS 238.015 (4), and who has completed the
six-month period of service required by ORS 238.015.
(c) 'Inactive member' means a member who is absent from the
service of all employers participating in the system, whose
membership has not been terminated in the manner described by ORS
238.095, and who is not retired for service or disability. '
Inactive member' includes a member who would be an active member
except that the person's only employment with a participating
public employer is in a position that does not meet the
requirements of ORS 238.015 (4).
(d) 'Retired member' means a member who is retired for service
or disability.
(8) The term 'pension' means annual payments for life derived
from contributions by one or more public employers.
(9) The term 'public employer' means the state, one of its
agencies, any city, county, municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by two or more such political
subdivisions to provide themselves governmental services. For
purposes of this chapter, such agency created by two or more
political subdivisions is a governmental instrumentality and a
legal entity with power to enter into contracts, hold property
and sue and be sued.
(10) The term 'retirement credit' means a period of time that
is treated as creditable service for the purposes of this
chapter.
(11)(a) The term '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; and
(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.
(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; or
(H) Payments for instructional services rendered to
institutions of the Department of Higher Education or the Oregon
Health Sciences 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.
(12) The term 'volunteer firefighter' means a firefighter whose
position normally requires less than 600 hours of service per
year.
(13) The term 'school year' means the period beginning July 1
and ending June 30 next following.
(14) The term 'police officer' includes:
(a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions, whose duties, as assigned
by the director, include the custody of persons committed to the
custody of or transferred to the Department of Corrections and
any other employee of the Department of Corrections who was
classified as a police officer 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 and parole and probation officers who are transferred
to county employment under ORS 423.549.
(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 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, so 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 will 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 the MacLaren School, Hillcrest School of
Oregon and other 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.
(15) The term 'final average salary' means whichever of the
following is greater:
(a) The average salary per calendar year paid by { - a public
employer - } { + 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 { - ; or - } { + . 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 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.
(16) The term 'firefighter' does not include a volunteer
firefighter as defined in subsection (12) of this section, but
does include the State Fire Marshal, the chief deputy fire
marshal and deputy state fire marshals.
(17) '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.
(18) The term '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.
SECTION 4. 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, 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 was
paid the highest salary { - ; or - } { + . 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.
{ + (3) In determining the total salary earned by a public
employee under subsection (2) of this section, the board shall
not consider those amounts paid during a calendar year or month
that were earned during a different calendar year or month. + }
{ - (3) - } { + (4) + } 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.
{ - (4) - } { + (5) + } 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.
{ - (5) - } { + (6) + } 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.
{ - (6) - } { + (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.
{ +
SPOUSAL CONSENT TO FORM OF RETIREMENT ALLOWANCE + }
SECTION 5. ORS 238.462 is amended to read:
238.462. (1) A member of the Public Employees Retirement System
who is married on the effective date of member's retirement shall
receive a service retirement allowance in the form provided for
in Option 3 under ORS 238.305 (1) or a disability retirement
allowance in the form provided for in Option 3 under ORS 238.325
(1) unless the member provides proof of spousal consent to
receiving an allowance in the form provided by ORS 238.300 or
238.320, or in one of the optional forms provided for in ORS
238.305 and 238.325 other than Option 3.
(2) { + Except as provided in subsection (3) of this
section, + } a member of the { - Public Employees
Retirement - } system who is married on the effective date of
the member's retirement may not change the form in which a
retirement allowance is paid after an election has been made as
to the form of the retirement allowance unless the member
provides proof of spousal consent.
{ + (3) A member of the system who is married on the
effective date of the member's retirement is not required to
provide spousal consent to a change in the form in which a
retirement allowance is paid if the spouse of the member dies
after the effective date of the member's retirement or disability
and the change in the form of the allowance is made within the
time periods provided by ORS 238.305 and 238.325. A member
seeking to change the form of a retirement allowance without
spousal consent under the provisions of this subsection must
provide a notarized statement to the Public Employees Retirement
Board that certifies to the board that the spouse of the member
is deceased. + }
{ - (3) - } { + (4) + } Any member of the system who is not
married on the effective date of the member's retirement must
provide a notarized statement to the Public Employees Retirement
Board that certifies to the board that the member is not married.
No retirement allowance may be paid to a member of the system who
is not married until the statement required by this subsection is
provided to the board.
{ - (4) - } { + (5) + } A member of the system who is
married on the effective date of the member's retirement must
provide proof of spousal consent for the purposes of this section
by submitting a statement to the board that:
(a) Contains the notarized signature of the member's spouse;
(b) Indicates the form in which the retirement allowance is to
be paid; and
(c) Contains a statement that the member's spouse consents to
the payment of the retirement allowance in the specified form.
{ - (5) - } { + (6) + } If a member of the system who is
married on the effective date of the member's retirement fails to
provide proof of spousal consent as required by this section, the
board shall calculate and pay to the member a retirement
allowance in the form provided for in Option 3 under ORS 238.305
(1) if the retirement is for service, or a retirement allowance
in the form provided for in Option 3 under ORS 238.325 (1) if the
retirement is for disability. The allowance will be calculated
based on the ages of the member and the spouse, and the spouse
will be designated as the beneficiary for any survivor benefits
that may thereafter become payable.
{ - (6) - } { + (7) + } Proof of spousal consent under this
section is not required for, and cannot alter, the designation of
any form of a retirement allowance that is required under the
terms of any court decree of annulment or dissolution of marriage
or of separation, or the terms of any court order or
court-approved property settlement agreement incident to any
court decree of annulment or dissolution of marriage or of
separation, that has been received by the board in compliance
with the requirements prescribed by ORS 238.465.
{ +
USE OF ELECTRONIC FUND TRANSFERS + }
SECTION 6. ORS 238.660 is amended to read:
238.660. (1) The Public Employees Retirement Fund is declared
to be a trust fund, separate and distinct from the General Fund,
for the uses and purposes set forth in this chapter and ORS
237.950 to 237.980, and for no other use or purpose, except that
this provision shall not be deemed to amend or impair the force
or effect of any law of this state specifically authorizing the
investment of moneys from the fund. Interest earned by the fund
shall be credited to the fund. Except as otherwise specifically
provided by law, the Public Employees Retirement Board
established by ORS 238.630 is declared to be the trustee of the
fund.
(2) The State of Oregon and other public employers that make
contributions to the fund have no proprietary interest in the
fund or in the contributions made to the fund by them. The state
and other public employers disclaim any right to reclaim those
contributions and waive any right of reclamation they may have in
the fund. This subsection does not prohibit alteration or refund
of employer contributions if the alteration or refund is
authorized under this chapter and is due to erroneous payment or
decreased liability for employer contributions under the system.
(3) The board may accept gifts of money or other property from
any source, given for the uses and purposes of the system. Money
so received shall be paid into the fund. Money or other property
so received shall be used for the purposes for which received.
Unless otherwise prescribed by the source from which the money or
other property is received, the money shall be considered as
income of the fund and the other property shall be retained,
managed and disposed of as are investments of the fund.
(4) All moneys paid into the fund shall be deposited with the
State Treasurer, who shall be custodian of the fund and pay all
warrants drawn on it in compliance with law. No such warrant
shall be paid until the claim for which it is drawn is first
approved by the director or designee and otherwise audited and
verified as required by law. Monthly, each beneficiary's gross
benefit shall be calculated; applicable deductions made for
taxes, insurance and other withholdings; and the net amount paid
to the beneficiary, by check or by electronic funds transfer
(EFT) to the beneficiary's bank. A deduction summary shall be
made, by type, and a check issued for the aggregate of each type
for transmittal to the appropriate taxing jurisdiction, vendor or
institution. A voucher shall be prepared and transmitted to the
Oregon Department of Administrative Services for reimbursement of
the checking account, and the department shall draw a warrant on
the State Treasurer, payable to the Public Employees Retirement
System, for the amount thereof.
(5) Any warrant, check or order for the payment of benefits or
refunds under the system out of the fund issued by the board
which is canceled, declared void or otherwise made unpayable
pursuant to law because it is outstanding and unpaid for a period
of more than two years, may be reissued by the board without bond
if the payee is located after such warrant, check or order is
canceled, declared void or otherwise made unpayable pursuant to
law.
{ + (6) The board may use an electronic fund transfer in lieu
of any warrant, check or order for the payment of benefits or
refunds required or authorized by law to be paid out of the
fund. + }
{ - (6) - } { + (7) + } The board shall provide for an
annual audit of the retirement fund and for an annual report to
the Legislative Assembly and to all members of, retirees of, and
all employers participating in, the system. The annual report
must contain financial statements prepared in accordance with
generally accepted accounting principles. The financial
statements must include the report of any independent auditor.
{ +
USE OF INSURANCE PROVIDERS LICENSED IN OTHER STATES + }
SECTION 7. ORS 238.410 is amended to read:
238.410. (1) As used in this section:
(a) 'Carrier' means an insurance company or health care service
contractor holding a valid certificate of authority from the
Director of the Department of Consumer and Business Services,
{ + an insurance company or health care service contractor
licensed or certified in another state that is operating under
the laws of that state, + }or two or more of those companies or
contractors acting together pursuant to a joint venture,
partnership or other joint means of operation.
(b) 'Eligible person' means:
(A) A member of the Public Employees Retirement System who is
retired for service or disability and is receiving a retirement
allowance or benefit under the system, and a spouse or dependent
of that member;
(B) A person who is a surviving spouse or dependent of a
deceased retired member of the system or the surviving spouse or
dependent of a member of the system who had not retired but who
had reached earliest retirement age at the time of death;
(C) A person who is receiving retirement pay or a pension
calculated under ORS 1.314 to 1.380 (1989 Edition), and a spouse
or dependent of that person; or
(D) A surviving spouse or dependent of a deceased retired
member of the system or of a person who was receiving retirement
pay or a pension calculated under ORS 1.314 to 1.380 (1989
Edition) if the surviving spouse or dependent was covered at the
time of the decedent's death by a health care insurance plan
contracted for under this section.
(c) 'Health care' means medical, surgical, hospital or any
other remedial care recognized by state law and related services
and supplies and includes comparable benefits for persons who
rely on spiritual means of healing.
(2) The Public Employees Retirement Board shall conduct a
continuing study and investigation of all matters connected with
the providing of health care insurance protection to eligible
persons. The board shall design benefits, devise specifications,
invite proposals, analyze carrier responses to advertisements for
proposals and do acts necessary to award contracts to provide
health care insurance, including insurance that provides coverage
supplemental to federal Medicare coverage, with emphasis on
features based on health care cost containment principles, for
eligible persons. The board is not subject to the provisions of
ORS 279.005 to 279.111 in awarding contracts under the provisions
of this section. The board shall establish procedures for
inviting proposals and awarding contracts under this section.
(3) The board shall enter into a contract with a carrier to
provide health care insurance for eligible persons for a one or
two-year period. The board may enter into more than one contract
with one or more carriers, contracting jointly or severally, if
in the opinion of the board it is necessary to do so to obtain
maximum coverage at minimum cost and consistent with the health
care insurance needs of eligible persons. The board periodically
shall review a current contract or contracts and make suitable
study and investigation for the purpose of determining whether a
different contract or contracts can and should, in the best
interest of eligible persons, be entered into. If it would be
advantageous to eligible persons to do so, the board shall enter
into a different contract or contracts. Contracts shall be signed
by the chairperson on behalf of the board.
(4) Except as provided in ORS 238.415 and 238.420, the board
may deduct monthly from the retirement allowance or benefit,
retirement pay or pension payable to an eligible person who
elects to participate in a health care insurance plan the monthly
cost of the coverage for the person under a health care insurance
contract entered into under this section and the administrative
costs incurred by the board under this section, and shall pay the
amount due to the carrier providing the coverage. The board by
rule may establish other procedures for collecting the monthly
cost of the coverage and the administrative costs incurred by the
board under this section if the board does not deduct those costs
from the retirement allowance or benefit, retirement pay or
pension payable to an eligible person.
(5) Subject to applicable provisions of ORS 183.310 to 183.550,
the board may make rules not inconsistent with this section to
determine the terms and conditions of eligible person
participation and coverage and otherwise to implement and carry
out the purposes and provisions of this section and ORS 238.420.
(6) The board may retain consultants, brokers or other advisory
personnel, organizations specializing in health care cost
containment or other administrative services when it determines
the necessity and, subject to the State Personnel Relations Law,
shall employ such personnel as are required to assist in
performing the functions of the board under this section.
{ +
PURCHASE OF RETIREMENT CREDIT BY MEMBERS RETIRING + }
{ +
BY REASON OF DISABILITY + }
SECTION 8. { + Section 9 of this 1999 Act is added to and made
a part of ORS chapter 238. + }
SECTION 9. { + The Public Employees Retirement Board may by
rule prescribe the time before which a member who is retired for
disability must make the payments required by ORS 238.115,
238.125, 238.135, 238.145, 238.157, 238.162 and 238.175. In no
event may the payments be made more than 90 days after the board
makes its finding that the member is disabled. + }
SECTION 10. ORS 238.115 is amended to read:
238.115. (1)(a) A member of the system who, after separation
from all service entitling the employee to membership in the
system and withdrawal of the amount credited to the account of
the employee in the fund, reenters the service of an employer
participating in the system and serves as an active member of the
system for 10 years after that reentry, and who has not otherwise
obtained restoration of creditable service forfeited by the
withdrawal, shall obtain restoration of one full month of
creditable service forfeited by the withdrawal for each three
full months of service as an active member after that reentry if
the member, within 90 days before the effective date of
retirement of the employee { + or within the time established by
the Public Employees Retirement Board under section 9 of this
1999 Act for retirement by reason of disability + }:
(A) Applies in writing to the board for restoration of
creditable service; and
(B) Pays to the board in a lump sum for credit to the account
of the employee in the fund the amount withdrawn and interest on
the amount withdrawn compounded annually for each year or portion
of a year after the date of the withdrawal and before the
effective date of retirement of the employee. The interest shall
be computed at the annual rate of 7.5 percent.
(b) If an employee who obtains restoration of creditable
service as provided in this subsection does not obtain
restoration of all creditable service forfeited by the withdrawal
pursuant to service after reentry, the payment under paragraph
(a) of this subsection shall be reduced proportionately to
reflect the percentage of creditable service restored.
(c) An employee who obtains restoration of creditable service
as provided in this subsection is not entitled to elect to
receive the service retirement benefit described in ORS 238.305
(2).
(2) An employee who is a member of the system, who forfeited
creditable service rendered to a public employer before March 27,
1953, because under ORS 237.976 (2) the employee withdrew
contributions of the employee to the Public Employees Retirement
System established by chapter 401, Oregon Laws 1945, and who did
not obtain restoration of creditable service so forfeited as
provided in chapter 857, Oregon Laws 1977, shall, upon
retirement, receive restoration of creditable service so
forfeited, if the employee, before the effective date of
retirement of the employee { + or within the time established
by the Public Employees Retirement Board under section 9 of this
1999 Act for retirement by reason of disability + }:
(a) Applies in writing to the board for the restoration of the
creditable service; and
(b) Pays to the board in a lump sum for credit to the account
of the employee in the fund an amount determined by the board to
be equal to the full amount of contributions so withdrawn and the
interest that would have accumulated to the account of the
employee in the fund had those contributions not been withdrawn.
(3)(a) A member of the Public Employees Retirement System who
was a member of an association established pursuant to ORS
chapter 239, but separated from all service entitling the
employee to membership in the system of the association and
withdrew the amount credited to the account of the employee in
the retirement fund of the association, and who, after that
separation, entered the service of an employer in the field of
education participating in the Public Employees Retirement System
and served as an active member of that system for 10 years after
that entry, and who has not otherwise obtained restoration of all
creditable service forfeited by the withdrawal, shall obtain
creditable service as a member of the Public Employees Retirement
System equal to all creditable service forfeited by the
withdrawal if the member within 90 days before the effective date
of retirement of the member { + or within the time established
by the Public Employees Retirement Board under section 9 of this
1999 Act for retirement by reason of disability + }:
(A) Applies in writing to the { - Public Employees
Retirement - } board for that creditable service; and
(B) Pays to the board in a lump sum for credit to the account
of the member in the Public Employees Retirement Fund the amount
withdrawn and interest on the amount withdrawn compounded
annually for each year or portion of a year after the date of the
withdrawal and before the effective date of retirement or
effective date of application of the member. The interest shall
be computed at the rate actually credited to member accounts for
that period.
(b) This subsection provides a method of obtaining creditable
service for forfeited creditable service described in this
subsection that is in lieu of any application of subsection (1)
of this section for that purpose.
SECTION 11. ORS 238.125 is amended to read:
238.125. A member of the system who has a combined total of 10
years or more of creditable service in the system and prior
service credit under ORS 238.225 at the time of retirement, and
who was required to complete one or more periods of six months or
less in the service of an employer participating in the system
before becoming a member of the system, shall receive retirement
credit for those periods of six months or less if the member,
within 90 days before the effective date of retirement of the
member { + or within the time established by the Public
Employees Retirement Board under section 9 of this 1999 Act for
retirement by reason of disability + }, applies in writing to the
board for that retirement credit and pays to the board in a lump
sum an amount determined by the board to be equal to:
(1) The total amount of employee contributions to the fund by
or on behalf of the employee that would have been required for
the six months' period if the employee had been a member of the
system during that period, which amount shall be credited to the
account of the employee in the fund; and
(2) The total amount of employer contributions to the fund the
employer of the employee would have been required to make in
respect to the employee if the employee had been a member of the
system during the six months' period, which amount shall be
credited to the reserve for pension accounts in the fund.
SECTION 12. ORS 238.135 is amended to read:
238.135. (1) A member of the system who has 10 years or more of
creditable service in the system at the time of retirement, and
who served for less than six months working full-time in a
seasonal position with a public employer participating in the
system before becoming a member of the system, shall receive
retirement credit for those periods of less than six months if
the member, within 90 days before the effective date of
retirement of the member { + or within the time established by
the Public Employees Retirement Board under section 9 of this
1999 Act for retirement by reason of disability + }, applies in
writing to the board for that retirement credit and pays to the
board in a lump sum an amount determined by the board to be equal
to:
(a) The total amount of employee contributions to the fund by
or on behalf of the employee that would have been required for
the six months' period if the employee had been a member of the
system during that period, plus interest at the rate of eight
percent per annum from the date the contributions would have been
made, which amount shall be credited to the account of the
employee in the fund; and
(b) The total amount of employer contributions to the fund the
employer of the employee would have been required to make in
respect to the employee if the employee had been a member of the
system during the six months' period, plus interest at the rate
of eight percent per annum from the date the contributions would
have been made, which amount shall be credited to the reserve for
pension accounts in the fund.
(2) As used in this section, 'seasonal position' means an
apprenticeship, internship or entry level role in the employ of a
participating public employer that is served by a person before
being employed in a technical or professional position with that
public employer.
(3) No retirement credit shall be allowed under this section
for any period of employment for which retirement credit is
acquired under ORS 238.125.
SECTION 13. ORS 238.157 is amended to read:
238.157. (1) Any person who entered or reentered active service
in the Armed Forces of the United States after January 1, 1950,
for other than active duty for training, or who was in active
service in the Armed Forces of the United States on January 1,
1950, for other than active duty for training, and who, after
being other than dishonorably discharged therefrom, entered the
employ of an employer participating in the Public Employees
Retirement System, may acquire retirement credit for up to four
years of active service in the Armed Forces by paying in a lump
sum to the Public Employees Retirement Board within 90 days of
the member's effective date of retirement { + , or within the
time established by the board under section 9 of this 1999 Act
for retirement by reason of disability, + }an amount determined
by the board to represent the full cost to the system of
providing the retirement credit to the member.
(2) No person shall receive retirement credit under this
section for any period of service with the Armed Forces of the
United States for which that person receives credit under the
provisions of ORS 238.156 or for which the person is receiving or
entitled to receive a pension or retirement pay under a public
retirement system established by the United States for the
performance of service in the Armed Forces.
SECTION 14. ORS 238.162 is amended to read:
238.162. (1) A member of the Public Employees Retirement System
who is a teacher as described in subsection (3) of this section
is entitled to receive retirement credit as provided in
subsection (2) of this section if:
(a) The member was employed as a teacher in a public school in
another state before being employed in a position that entitled
the member to credit in the system; and
(b) The member makes the payment required by subsection (2) of
this section within the time specified by that subsection.
(2) Except as provided in subsection (4) of this section, a
member of the system employed as a teacher as described in
subsection (3) of this section and who meets the requirements of
subsection (1) of this section is entitled to receive retirement
credit for the period of the member's service with a public
school in another state, not to exceed a maximum of four years,
if the member within 90 days of the member's effective date of
retirement { + or within the time established by the Public
Employees Retirement Board under section 9 of this 1999 Act for
retirement by reason of disability + }:
(a) Applies in writing to the { - Public Employees
Retirement - } board for such retirement credit;
(b) Provides written verification to the board from the public
employer that employed the member in the other state, verifying
the period of time that the member served as a teacher in a
public school in the other state; and
(c) Pays to the board, in a lump sum, for each year of
retirement credit applied for under this section, an amount
determined by the board to represent the full cost to the system
of providing the retirement credit to the member.
(3) The provisions of this section apply only to a licensed
teacher, as defined in ORS 342.120, who is employed by a common
school district, a union high school district or an education
service district.
(4) A member may not receive retirement credit under the
provisions of this section for any period of service with a
public school in another state if the member is entitled to a
pension or retirement allowance by reason of that service under a
public plan or system offered by the other state.
SECTION 15. ORS 238.175 is amended to read:
238.175. (1) A member of the Public Employees Retirement System
who receives a disability retirement allowance or disability
payments under ORS chapter 656 shall receive retirement credit
for the period during which the member receives the disability
retirement allowance or disability payments if the member
receives the allowance or payments by reason of injury or disease
sustained while in actual performance of duty and not
intentionally self-inflicted.
(2) A member of the Public Employees Retirement System who
receives a disability retirement allowance or disability payments
under ORS chapter 656 by reason of injury or disease that was not
sustained while in actual performance of duty and that was not
intentionally self-inflicted shall receive retirement credit for
all or part of the period during which the member receives the
disability retirement allowance or disability payments if the
member, within 90 days before the effective date of retirement of
the member { + or within the time established by the Public
Employees Retirement Board under section 9 of this 1999 Act for
retirement by reason of disability + }, applies in writing to the
{ - Public Employees Retirement - } board for that retirement
credit and pays to the board in a lump sum an amount determined
by the board to represent the full cost to the system of
providing the retirement credit to the member.
(3) A member may acquire retirement credit under the provisions
of this section for the purposes of calculating a service
retirement allowance only if the member returns to employment
with a participating public employer after the period of
disability.
(4) A member may not acquire retirement credit under the
provisions of this section for a period of time that is in excess
of the period of time used in calculating the disability
retirement allowance paid to the member under ORS 238.320 during
the period of disability for which the member seeks credit. For
the purposes of this subsection, the retirement credit that may
be acquired by a police officer or firefighter who elects to
receive the optional, service-connected disability retirement
allowance provided for under ORS 238.345 shall be determined as
though the police officer or firefighter had received a
disability retirement allowance calculated under ORS 238.320.
(5) Retirement credit acquired under this section may be used
for the purpose of establishing eligibility under ORS 238.115,
238.125 or 238.135 or any other provision of this chapter that
requires a specified number of years of creditable service.
(6) Retirement credit under this section may be acquired only
for periods occurring on or after January 1, 1985, during which a
member receives a disability retirement allowance or disability
payments under ORS chapter 656.
SECTION 16. ORS 238.145 is amended to read:
238.145. (1) A member of the system employed as a police
officer or firefighter shall be entitled to receive retirement
credit as provided in subsection (2) of this section if:
(a) The member was employed by a public employer as a police
officer or firefighter prior to becoming a member of the system;
(b) The public employer that had previously employed the member
was not a participant in the system at the time the member was in
the service of that public employer; and
(c) The public employer that had previously employed the member
was located in this state.
(2) A member of the system employed as a police officer or
firefighter who meets the requirements of subsection (1) of this
section shall be entitled to receive retirement credit for the
period of employment with a previous public employer as described
in subsection (1) of this section up to a maximum of 10 years'
retirement credit if the member:
(a) Applies in writing to the Public Employees Retirement Board
for such retirement credit; and
(b) Pays to the board, in a lump sum, an amount representing
the contributions the member and the member's employer would have
made for the years for which the member seeks retirement credit
calculated as though the member had received a salary for each of
those years equal to the salary received by the member in the
first full calendar year of employment as a police officer or
firefighter within the system. In addition, the member shall pay
the interest that would have accrued had the contributions been
paid in the years for which the member seeks retirement credit,
compounded annually. The interest shall be computed at the annual
rate of eight percent. Payment of the lump sum shall be made on
or before the effective date of retirement for the member { + or
within the time established by the Public Employees Retirement
Board under section 9 of this 1999 Act for retirement by reason
of disability + }. The amounts representing the contributions the
member would have made and the interest on those amounts shall be
credited to the account of the employee in the fund. The amounts
representing the contributions the employer would have made and
the interest on those amounts shall be credits to the account of
the member's current participating employer.
SECTION 17. ORS 238.580 is amended to read:
238.580. (1) { + Section 9 of this 1999 Act, + } ORS 238.005
(2) and (11), 238.025, 238.078, 238.082, 238.092, 238.115 (1),
238.250, 238.255, 238.260, 238.350, 238.380, 238.410, 238.415,
238.420, 238.445, 238.460, 238.465, 238.475, 238.600, 238.605,
238.610, 238.620, 238.630, 238.635, 238.645, 238.650, 238.655,
238.660, 238.665, 238.670 and 238.705 and the increases provided
by ORS 238.385 for members of the system who are serving as other
than police officers or firefighters apply in respect to service
as a judge member.
(2) This chapter applies in respect to persons described in ORS
238.505 (1) and in respect to service as a judge member only as
specifically provided in ORS 238.500 to 238.585.
SECTION 18. { + (1) The amendments to ORS 238.005 and 238.435
by sections 3 and 4 of this 1999 Act apply to all members of the
Public Employees Retirement System, whether they retire before,
on or after the effective date of this 1999 Act.
(2) The amendments to ORS 238.462 by section 5 of this 1999 Act
apply only to members of the Public Employees Retirement System
who retire on or after the effective date of this 1999 Act. + }
SECTION 19. { + The unit captions used in this 1999 Act are
provided only for convenience in locating provisions of this 1999
Act and do not become part of the statutory law of this state or
express any legislative intent in the enactment of this 1999
Act. + }
----------