Chapter 238 — Public
Employees Retirement System
2011 EDITION
PUBLIC EMPLOYEES RETIREMENT SYSTEM
PUBLIC OFFICERS AND EMPLOYEES
GENERAL PROVISIONS
238.005 Definitions
238.008 Computation
of salary
MEMBERSHIP
(Membership Generally)
238.015 Membership
generally
238.025 Effect
of service interruptions on membership
238.035 Membership
of part but not all employees of a public employer
238.045 Membership
of certain circuit court judges
238.055 Membership
of judges previously receiving retirement pay from Judges’ Retirement Fund
238.062 Membership
of deputy district attorneys
238.068 Membership
of legislators
238.072 Membership
of certain legislative employees
238.074 Membership
of community college employees
(Membership of Retired Employees)
238.078 Reemployment
of retired members
238.082 Limits
on hours worked by retired members
238.088 Appointment
or election of retired member to public office
238.092 Option
of legislators to receive certain benefits; employment of persons as
legislative employees or state police officer beyond 65 years of age
(Termination of Membership)
238.095 Termination
of membership
RETIREMENT CREDIT
(Restoration of Forfeited Credit)
238.105 Restoration
of credit forfeited by reason of termination of membership
238.115 Alternate
method of restoring credit forfeited by reason of termination of membership
(Credit for Probationary Periods)
238.125 Credit
for probationary period of employment
238.135 Credit
for probationary periods in seasonal positions
(Credit for Periods of Service With
Other Employers)
238.145 Credit
for service as police officer or firefighter with nonparticipating employer
238.148 Credit
for service as public safety officer in another state
238.156 Contributions,
benefits and retirement credit for periods of service in uniformed services or
Armed Forces; rules
238.157 Alternative
provision for retirement credit for periods of service with Armed Forces
238.160 Retirement
credit for service while on loan to federal government
238.162 Retirement
credit for service as teacher in public schools of another state
(Miscellaneous)
238.165 Credit
for certain periods of employment by Legislative Assembly
238.175 Retirement
credit for periods of disability
CONTRIBUTIONS
(Employee Contributions)
238.200 Employee
contributions generally
238.205 Payment
of employee contribution by employer
238.210 Payment
of certain circuit court judge employee contributions by employer
238.215 Contributions
by certain higher education employees
(Employee Rollover Contributions)
238.220 Employee
rollover contributions; rules
238.222 Trustee-to-trustee
transfers to fund restoration of forfeited service or purchase of retirement
credit; rules
(Employer Contributions)
238.225 Employer
contributions
238.227 Pooling
of employers for purpose of computing employer contributions
238.229 Effect
of lump sum payment on contributions of pooled employer; application of excess
amounts to offset contributions to individual account program; rules
238.231 Unfunded
liability or surplus after employee transfer or employer merger, consolidation
or split
MEMBER ACCOUNTS
(Generally)
238.250 Regular
accounts
238.255 Credits
to regular accounts when earnings less than assumed interest rate
238.260 Variable
Annuity Account; rules
(Withdrawal or Transfer of Member
Account)
238.265 Withdrawal
of member account
238.270 Transfer
of member account to other public employee retirement system
RETIREMENT
238.280 Eligibility
for retirement
238.285 Verification
of retirement data
BENEFITS
(Service Retirement Allowance)
238.300 Service
retirement allowance
238.305 Optional
service retirement allowance calculations
238.310 Minimum
service retirement allowance
238.315 Lump
sum payment in lieu of small allowance
(Disability Retirement Allowance)
238.320 Disability
retirement allowance
238.325 Optional
disability retirement allowance calculations
238.330 Minimum
disability retirement allowance
238.335 Medical
examination for disability retirement allowance; rules
238.340 Return
to work
238.345 Optional
service-connected disability retirement allowance for police officers and
firefighters
(Use of Leave to Increase Retirement
Allowance)
238.350 Use
of unused leave to increase retirement allowance; rules
238.355 Computation
of unused sick leave for community college employees
(Cost-of-Living Adjustments)
238.360 Cost-of-living
adjustments
(Benefit Increases in Compensation of
Claims Based on Taxation of Benefits)
238.362 Increased
benefits payable in compensation for certain damages attributable to taxation
of benefits
238.364 Calculation
of increased benefit payable under ORS 238.362
238.366 Retirement
allowance increase based on years of service
238.368 Retirement
allowance increases for members who retired before January 1, 1991
238.372 Increased
benefits under chapter 569, Oregon Laws 1995, not payable to nonresidents
238.374 Applicant’s
statement; resumption of residency
238.376 Nonresidency after benefits commenced; required statement;
subsequent residency
238.378 Information
from Department of Revenue
238.382 Statements
constitute declaration under penalty of perjury
238.384 Rules
(Death Benefits)
238.390 Death
benefit
238.395 Additional
death benefit
238.400 Payment
upon death of retired member who dies before making election of retirement
benefits
238.405 Death
benefit payable to survivors of certain police officers or firefighters
238.407 Distribution
of death benefit as rollover distribution
(Insurance Premium Payments)
238.410 Board
may contract for insurance for retirees; rules
238.415 Payment
toward cost of pre-Medicare insurance; rules
238.420 Payment
toward cost of Medicare supplemental insurance
(Benefits Payable to Vested Inactive
Member)
238.425 Benefits
payable to vested inactive member
(Benefits Payable to Persons
Establishing Membership on or After January 1, 1996)
238.430 Limitation
on benefits payable to persons establishing membership on or after January 1,
1996
238.435 Provisions
applicable to persons establishing membership on or after January 1, 1996
(Optional Purchase of Benefit Units by
Police and Firefighters)
238.440 Optional
purchase of benefit units by police and firefighters
(Prior Service Credit)
238.442 Prior
service credit
(Miscellaneous)
238.445 Benefits
exempt from execution, bankruptcy and certain taxes; exceptions
238.450 Computation
of retirement allowance or benefit; notice of dispute
238.455 Estimated
benefit payments
238.458 Unclaimed
benefits
238.460 Waiver
of retirement allowance
238.462 Spousal
consent required for certain optional forms of retirement allowance
238.465 Benefits
payable to others under certain judgments; rules
238.470 Interest
on payments from fund
238.475 Effect
of transfer of employee to another participating employer
238.480 Effect
of change to calendar year on contributions and credit of members
PUBLIC EMPLOYEE BENEFIT EQUALIZATION
FUND
238.485 Fund
established
238.488 Payment
of benefits; employer contributions
238.490 Administrative
expenses
238.492 Rules
for administration of fund
JUDGE MEMBERS
238.500 Definitions
for ORS 238.500 to 238.585
238.505 Judges
as PERS members
238.515 Contributions
238.525 Compulsory
retirement age
238.535 Service
retirement allowance
238.538 Health
benefit plans for certain retired judge members
238.545 Withdrawal
of member account; retirement allowance of inactive judge member
238.555 Disability
retirement allowance
238.565 Beneficiary
of judge; spouse’s pension
238.575 Cost-of-living
adjustments; ad hoc increase
238.580 Application
of PERS laws to judges
238.585 Use
of creditable service by person who serves as both member and judge member;
restoration of forfeited rights upon becoming judge member
ADMINISTRATION
(Public Employees Retirement System)
238.600 System
established; legislative intent
238.601 Legislative
findings and intent; administration of system
238.605 Actuarial
report on system
238.607 Actuarial
equivalency factor tables
238.608 Separate
actuarial equivalency factor tables for certain police officers and firefighters
238.610 Administrative
expenses of system
238.615 Revolving
fund for payment of administrative expenses
238.618 Exclusion
of employer or employee from system to maintain tax qualification
(Public Employees Retirement Board)
238.630 Board
generally; rules
238.635 Board
consideration of system goals and objectives
238.640 Qualifications
of board members
238.645 Director
and staff
238.646 Authority
of Director of Public Employees Retirement System to require fingerprints
238.650 Rules
of board; written plan document
238.655 Procedure
for board hearings
238.657 Board
counsel
(Public Employees Retirement Fund)
238.660 Fund
generally; board review of legislative proposals
238.661 Moneys
in fund appropriated to board
238.665 Contributions
and interest not included in board’s budget
238.670 Reserve
accounts in fund
238.672 Crediting
of earnings to employer upon death or retirement of member
238.675 Transfer
of unclaimed death benefit or account balance to other account or reserve
(Integration of Other Retirement
Systems)
238.680 Integration
of other retirement systems
238.685 Method
of payment of unfunded obligation under integration contract
238.690 Integration
of retirement plan of mass transit district
(Bonding of Pension Liabilities)
238.692 Definitions
for ORS 238.692 to 238.698
238.694 Certain
public bodies authorized to issue bonds to finance pension liabilities; revenue
bonds
238.695 Intergovernmental
agreements for collective issuance, administration or payment of bonds
238.696 Debt
service trust fund
238.698 Funds
diversion agreement
(Enforcement)
238.700 Enforcement
of requirements of ORS chapters 238 and 238A
238.705 State
departments to remit contributions and furnish reports
238.710 Mandamus
against defaulting employer; appeal
238.715 Recovery
of overpayments; rules
238.720 Rollover
contributions; application against payments improperly made to retirees; rules
(Short Title)
238.750 Short
title
GENERAL PROVISIONS
238.005 Definitions.
For purposes of this chapter:
(1)
“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.
(2)
“Annuity” means payments for life derived from contributions made by a member
as provided in this chapter.
(3)
“Board” means the Public Employees Retirement Board.
(4)
“Calendar year” means 12 calendar months commencing on January 1 and ending on
December 31 following.
(5)
“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.
(6)
“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.
(7)
“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.
(8)
“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 a 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.
(9)
“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.
(10)
“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.
(11)
“Fiscal year” means 12 calendar months commencing on July 1 and ending on June
30 following.
(12)
“Fund” means the Public Employees Retirement Fund.
(13)
“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.
(14)
“Institution of higher education” means a public university listed in ORS
352.002, the Oregon Health and Science University and a community college, as
defined in ORS 341.005.
(15)
“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.
(16)
“Member account” means the regular account and the variable account.
(17)
“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.
(18)
“Pension” means annual payments for life derived from contributions by one or
more public employers.
(19)
“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)
Police officers who are commissioned by a university under ORS 352.383 and who
are classified as police officers by the university.
(g)
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.
(h)
Police officers appointed under ORS 276.021 or 276.023.
(i) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of Portland.
(j)
Employees of the State Department of Agriculture who are classified as
livestock police officers by the Director of Agriculture.
(k)
Employees of the Department of Public Safety Standards and Training who are
classified by the department as other than secretarial or clerical personnel.
(L)
Investigators of the Criminal Justice Division of the Department of Justice.
(m)
Corrections officers as defined in ORS 181.610.
(n)
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.
(o)
The Director of the Department of Corrections.
(p)
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.
(q)
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.
(r)
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.
(s)
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.
(t)
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.
(u)
Employees of the Oregon Youth Authority who are classified as juvenile parole
and probation officers.
(20)
“Prior service credit” means credit provided under ORS 238.442 or under ORS
238.225 (2) to (6) (1999 Edition).
(21)
“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.
(22)
“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.
(23)
“Regular account” means the account established for each active and inactive
member under ORS 238.250.
(24)
“Retired member” means a member who is retired for service or disability.
(25)
“Retirement credit” means a period of time that is treated as creditable service
for the purposes of this chapter.
(26)(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 described in ORS 238.008; 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 public universities of the
Oregon University System 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.
(27)
“School year” means the period beginning July 1 and ending June 30 next
following.
(28)
“System” means the Public Employees Retirement System.
(29)
“Variable account” means the account established for a member who participates
in the Variable Annuity Account under ORS 238.260.
(30)
“Vested” means being an active member of the system in each of five calendar
years.
(31)
“Volunteer firefighter” means a firefighter whose position normally requires
less than 600 hours of service per year. [Formerly 237.003; 1997 c.249 §64;
1997 c.853 §36; 1999 c.317 §24; 1999 c.407 §3; 1999 c.971 §1; 2001 c.295 §9;
2001 c.874 §1; 2001 c.945 §29a; 2001 c.968 §1; 2003 c.14 §112; 2003 c.67 §16;
2003 c.625 §20; 2005 c.152 §5; 2005 c.332 §1; 2009 c.762 §47; 2010 c.1 §8; 2011
c.9 §22; 2011 c.506 §32; 2011 c.637 §72]
Note:
Section 2, chapter 971, Oregon Laws 1999, provides:
Sec. 2. (1)
The amendments to ORS 238.005 by section 1, chapter 971, Oregon Laws 1999,
apply only to persons specified in ORS 238.005 (10)(b) who are employed by the
State Forestry Department on October 23, 1999, or who become employed by the State
Forestry Department after October 23, 1999.
(2)
Except as provided in subsection (3) of this section, the amendments to ORS
238.005 by section 1, chapter 971, Oregon Laws 1999, apply only to service
rendered to a participating public employer on or after October 23, 1999.
(3)
Any employee who is employed by the State Forestry Department in a position
described in ORS 238.005 (10)(b) on October 23, 1999, may acquire creditable
service in the Public Employees Retirement System as a firefighter for service
performed by the employee in a position described in ORS 238.005 (10)(b) before
October 23, 1999, by paying to the Public Employees Retirement Board an amount
determined by the board to represent the full cost to the system of providing
credit as a firefighter to the member. The member may acquire credit as a
firefighter for all or part of the service in a position described in ORS
238.005 (10)(b) performed before October 23, 1999. All amounts required for
acquisition of credit as a firefighter under this subsection must be paid at
least 90 days before a member’s effective date of retirement. The board may by
rule allow members to pay amounts required under this subsection in
installments in lieu of requiring a single lump sum payment. Amounts required under
this subsection may be paid using moneys transferred by way of a
trustee-to-trustee transfer as described in ORS 238.222. [1999 c.971 §2; 2011
c.9 §23; 2011 c.722 §8]
238.008 Computation of salary.
(1) For the purpose of computing salary under this chapter and ORS chapter
238A, salary includes retroactive payments of wages made to an employee to
correct a clerical error. Retroactive payments described in 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.
(2)
For the purpose of computing salary under this chapter and ORS chapter 238A,
salary includes retroactive payments of wages 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 the employee’s
rights under employment or wage law or under a collective bargaining agreement.
Retroactive payments described in this subsection shall be allocated to and
deemed paid in the periods of the employee’s active or inactive membership in
which the work was done or in which the work would have been done.
(3)
If retroactive payments are included in the salary of an employee under this
section, the employee shall receive retirement credit for the periods to which
the payment is allocated. [2010 c.1 §7]
238.010
[Repealed by 1981 c.126 §6]
MEMBERSHIP
(Membership Generally)
238.015 Membership generally.
(1) No person may become a member of the system unless that person is in the
service of a public employer and has completed six months’ service
uninterrupted by more than 30 consecutive working days during the six months’
period. Every employee of a participating employer shall become a member of the
system at the beginning of the first full pay period of the employee following
the six months’ period. Contributions for new members shall first be made for
those wages that are attributable to services performed by the employee during
the first full pay period following the six months’ period, without regard to
when those wages are considered earned for other purposes under this chapter.
All public employers participating in the Public Employees Retirement System
established by chapter 401, Oregon Laws 1945, as amended, at the time of repeal
of that chapter, and all school districts of the state, shall participate in,
and their employees shall be members of, the system, except as otherwise
specifically provided by law.
(2)
Any active member of the Public Employees Retirement System who, through the
annexation of a political subdivision employing the member or by change of
employment, becomes the employee of another political subdivision which is
participating in the Public Employees Retirement System and has also a separate
retirement system for its employees, shall remain an active member of the
Public Employees Retirement System unless, within 60 days after the effective
date of the annexation or change of employment or April 8, 1953, the member
shall by written notice to the Public Employees Retirement Board and to the
administrative body of the new public employer elect to relinquish membership
in the Public Employees Retirement System and become a member of the separate
retirement system of the employer, if eligible for membership in that
retirement system, and the member shall be so carried by the new employer.
Immediately upon such annexation of any political subdivision or such change of
employment, the new public employer shall inform such employee in writing of
the right of the employee to exercise an election as in this section provided.
(3)
A political subdivision (other than a school district) not participating in the
retirement system established by chapter 401, Oregon Laws 1945, as amended,
which employs one or more employees, each of whose position requires 600 hours
of service per year, or an agency created by two or more political subdivisions
to provide themselves governmental services, which employs one or more
employees, each of whose position requires 600 hours of service per year, may,
through its governing body, notify the board in writing, that it elects to
include its employees in the system hereby established. Such public employer
may request the board to make a study and estimate of the cost of including it
and its eligible employees, other than volunteer firefighters, in the system,
which the board thereupon shall cause to be made and the cost of which the
employer shall bear. Upon completion of the study and estimate the employer may
apply for admission to the system, whereupon it shall begin to participate
therein and its eligible employees other than volunteer firefighters shall
become members of the system. If the employer is an agency created by two or
more political subdivisions to provide themselves governmental services and
ceases thereafter to transmit to the board contributions for any of its
eligible employees, the benefits based upon employer contributions to which
such employees would otherwise be entitled shall be reduced accordingly.
(4)
No inmate of a state institution or an alien on a training or educational visa
working for any participating employer, even though the inmate or alien
received compensation from a participating employer, shall be eligible to
become a member of the system. No person employed by a participating employer
and defined by such employer as a student employee is eligible to become a
member of the system for such student employment.
(5)
A person holding an elective office or an appointive office with a fixed term
or an office as head of a department to which the person is appointed by the
Governor may become a member of the system by giving the board written notice
of desire to do so within 30 days after taking the office or, in the event that
the officer is not eligible to become a member of the system at the time of
taking the office, within 30 days after becoming so eligible. Membership so
established shall not be discontinued during the appointive or elective term of
the officer except upon separation of the officer from service.
(6)
A public employer employing volunteer firefighters may apply to the board at
any time for them to become members of the system. Upon receiving the
application the board shall fix a wage at which, for purposes of this chapter only,
they shall be considered to be employed and which shall be the basis for
computing the amounts of the contributions, if any, which they pay into, and of
the benefits which they and their beneficiaries receive from, the fund; and if
the wage so fixed is satisfactory to the employer, shall include the
firefighters in the system.
(7)(a)
In the event that an employee enters the service of a public employer which is
participating in or later begins to participate in the system and in the event
that at the time of entering that service or at the time that the employer
begins to participate in the system the employee has commenced to purchase and
is continuing to purchase a retirement annuity, if the employer deems the
annuity adequate for the purposes of this chapter, it may enter into an
agreement with the employee and the board pursuant to which the employee may be
exempted from contributing to the Public Employees Retirement Fund, and, if no
public funds are being used to purchase the annuity or a corresponding pension,
the employer, in lieu of the contributions which it otherwise would make to the
fund on account of the employee, may make contributions toward the cost of
purchasing the annuity. Such employee otherwise shall be subject to the
provisions of this chapter, except that neither the employee nor any person
claiming under the employee shall receive any payments from the retirement fund
as service or disability allowance.
(b)
An employee who enters into an agreement under paragraph (a) of this subsection
may elect at any time thereafter to start to participate in the system by
giving written notice of desire to participate to the board and to the
employer. The employee shall receive no retirement credit for the period during
which the employee was exempted from contributing to the fund under the
agreement, but the employee shall be considered to have completed the six
months’ service required for membership in the system. When the employee starts
to participate in the system the employer shall start to contribute to the fund
on account of the employee in the same manner as the employer contributes on
account of other employees who are active members of the system and the
employer shall stop making contributions toward the cost of purchasing the retirement
annuity.
(8)(a)
All new appointees in the Federal Cooperative Extension Service or in any other
service in which participation in the Federal Civil Service retirement program
is mandatory, who receive a federal appointment on or after July 1, 1955, may
participate in the Public Employees Retirement System only by giving written
notice of their election to so participate to the Public Employees Retirement
Board within six months after the effective date of their appointment.
(b)
All persons employed by the Federal Cooperative Extension Service or by any
other service in which participation in the Federal Civil Service retirement
program is mandatory, who are under federal appointment as of July 1, 1955, and
who are members of the state retirement system, shall continue such membership
unless, prior to February 1, 1956, they give written notice to the Public
Employees Retirement Board of their desire to cancel their membership.
(c)
Any person who is an active member of the Public Employees Retirement System,
who, on or after July 1, 1955, is employed by the Federal Cooperative Extension
Service or by any other service in which participation in the Federal Civil
Service retirement program is mandatory, and who is given a federal
appointment, shall continue such membership in the Public Employees Retirement
System unless, within six months after the effective date of the appointment,
the person gives written notice to the Public Employees Retirement Board of the
desire to cancel membership.
(d)
A cancellation of membership under paragraph (b) or (c) of this subsection
terminates membership in the Public Employees Retirement System and cancels the
right to any benefits from, or claims against, that system. Such cancellation
prevents the withdrawing member from claiming thereafter any retirement credit
for any period of employment before the cancellation. Upon receipt of a notice
of cancellation, the Public Employees Retirement Board shall refund the member
account of the withdrawing member, regardless of the age of the withdrawing
member.
(9)
Employees, including managers, of foreign trade offices of the Oregon Business
Development Department who live and perform services in foreign countries under
the provisions of ORS 285A.075 (1)(g) shall not be members of the system.
However, any person who is an active member of the system immediately before
becoming an employee of a foreign trade office shall continue to be a member of
the system during the period of time the person serves as an employee of the
foreign trade office.
(10)
An employee who is participating in an alternative retirement program
established pursuant to ORS 353.250 or an optional retirement plan established
pursuant to ORS 341.551 may not be an active member of the Public Employees
Retirement System. [Formerly 237.011; 1997 c.249 §65; 1999 c.130 §4; 1999 c.509
§23; 2001 c.192 §1; 2001 c.883 §41; 2001 c.945 §30; 2003 c.67 §17; 2005 c.152 §6;
2005 c.728 §3; 2007 c.804 §76]
238.020
[Amended by 1965 c.607 §1; repealed by 1981 c.126 §6]
238.025 Effect of service interruptions on
membership. Within the limits hereinafter specified
regarding absence from service, no leave of absence, sabbatical leave, illness,
accident or emergency preventing or interrupting service by an employee to an
employer participating in the system shall be deemed to break the continuity of
the employee’s membership in the system. [Formerly 237.091]
238.030
[Amended by 1953 c.426 §4; 1955 c.49 §1; repealed by 1981 c.126 §6]
238.035 Membership of part but not all
employees of a public employer. (1) A public
employer that is not participating in the system may, by application to the
board, designate any class of employees of the public employer to become
members of the system at the time of entering the system.
(2)
The board shall consider an application received under this section to be an
application to become a participating employer under this chapter, but only to
the extent of providing membership for the class of employees designated in the
application.
(3)
The board, upon such terms as are set forth in a contract between the board and
the employer, shall allow every employee in the designated class to become
members of the Public Employees Retirement System in accordance with this
chapter. A contract entered into under this section shall require the public
employer to agree to eventually contract to provide membership to all of the
employees who do not become members of the system at the time that the employer
becomes a participating employer.
(4)
All employees who have completed the period of service with the public employer
that is required under ORS 238.015 shall become members of the system on a date
specified by the board. All other employees in the designated class shall
become members upon completion of the required period of service.
(5)
The contract provided for in subsection (3) of this section may be in addition
to or in lieu of a contract of integration under ORS 238.680.
(6)
An employer entering into a contract under subsection (3) of this section may
at any time thereafter enter into a contract with the board to provide
membership to all or part of the employees who do not become members of the
system at the time that the employer becomes a participating employer. Except
as may be provided for prior service credit, or under a contract of integration
under ORS 238.680, employees shall receive no retirement credit for the period
during which the employee was exempted from contributing to the fund under the
agreement, but the employee shall be considered to have completed the six
months’ service required for membership in the system if the employee has
served with the employer for at least six months. When the employee starts to
participate in the system the employer shall start to contribute to the fund on
account of the employee in the same manner as the employer contributes on
account of other employees who are members of the system. [Formerly 237.031;
2001 c.945 §31]
238.040
[Amended by 1963 c.227 §1; 1965 c.607 §2; repealed by 1981 c.126 §6]
238.043 [1965
c.605 §2; repealed by 1981 c.126 §6]
238.045 Membership of certain circuit
court judges. Each circuit court judge who was a
district court judge before January 15, 1998, and who is a member of the Public
Employees Retirement System shall be governed by the provisions of this chapter
applicable to other persons holding elective offices who may become members of
the system. [Formerly 237.013]
238.047 [1965
c.605 §5; repealed by 1981 c.126 §6]
238.050
[Amended by 1965 c.607 §3; repealed by 1981 c.126
§6]
238.055 Membership of judges previously
receiving retirement pay from Judges’ Retirement Fund.
(1) On August 1, 1991, all judges receiving retirement pay from the Judges’
Retirement Fund and all surviving spouses of judges receiving a pension from the
Judges’ Retirement Fund shall be retired members of the Public Employees
Retirement System, except that:
(a)
The amount of retirement pay or pension payable to the judge or surviving
spouse of a judge and the terms and conditions of eligibility to receive
retirement pay or a pension shall be as established by ORS 1.314 to 1.380 (1989
Edition); and
(b)
The right of any person to receive any benefit as a result of the death of a
judge by reason of the provisions of ORS 1.314 to 1.380 (1989 Edition) shall
solely be as provided by ORS 1.314 to 1.380 (1989 Edition).
(2)
After August 1, 1991, any judge who would have become eligible to receive
retirement pay from the Judges’ Retirement Fund shall, upon retirement, be a
retired member of the Public Employees Retirement System, except that:
(a)
The amount of retirement pay or pension payable to the judge or the surviving
spouse of the judge and the terms and conditions of eligibility to receive
retirement pay or a pension shall be as established by ORS 1.314 to 1.380 (1989
Edition); and
(b)
The right of any person to receive any benefit as a result of the death of the
judge by reason of the provisions of ORS 1.314 to 1.380 (1989 Edition) shall
solely be as provided by ORS 1.314 to 1.380 (1989 Edition).
(3)
On August 1, 1991, the Judges’ Retirement Fund shall cease to exist as a
separate fund and the assets and earnings of the Judges’ Retirement Fund shall
be paid into the employer reserves for judge members of the Public Employees
Retirement Fund. The Public Employees Retirement Board shall continue to keep a
separate regular account for any person who may become eligible to receive a
retirement benefit under subsection (2) of this section and for any person
whose child or children may become entitled to a benefit under ORS 1.346 (1989
Edition).
(4)
Upon deposit of the assets and earnings of the Judge’s Retirement Fund as
provided under subsection (3) of this section, the Public Employees Retirement
Board shall cause to be deposited from the employer reserves for judge members
to the retired reserves of the Public Employees Retirement Fund, the amount
actuarially determined to be necessary to fund the retirement pay and pensions
of those judges and surviving spouses of judges who were receiving retirement
pay or a pension from the Judges’ Retirement Fund on August 1, 1991.
(5)
The amount of retirement pay or pension payable to a judge or spouse of a
retired judge who previously received retirement pay or a pension from the
Judges’ Retirement Fund, or who would have received retirement pay or a pension
from the Judges’ Retirement Fund, shall not be recalculated or affected in any
way based on the provisions of ORS chapter 238, nor shall the eligibility of a
judge or surviving spouse of a judge to receive retirement pay or a pension be
affected by ORS chapter 238.
(6)
The provisions of ORS 238.390, 238.395, 238.400 and 238.500 to 238.585 do not
apply to a judge or surviving spouse of a judge who received retirement pay or
a pension from the Judges’ Retirement Fund prior to August 1, 1991, or to a
judge who retires as a member of the Public Employees Retirement System under
subsection (2) of this section.
(7)
Any person who served as a judge before August 1, 1991, who had amounts
deducted from the person’s salary while serving as a judge for the purpose of
making contributions to the Judges’ Retirement Fund, and who is not eligible to
become a retired member of the Public Employees Retirement System under this
section, may withdraw the amounts deducted from the person’s salary, with all
earnings on those deductions, at any time after May 24, 2003. Withdrawal under
this subsection cancels all rights the person may have in the Judges’
Retirement Fund or the Public Employees Retirement System, and the rights that
any spouse or beneficiary of the person may have in the Judges’ Retirement Fund
or the Public Employees Retirement System, by reason of service by the person
as a judge for which contributions were made to the Judges’ Retirement Fund. [Formerly
237.039; 2001 c.945 §32; 2003 c.90 §1]
238.060
[Amended by 1953 c.426 §4; repealed by 1965 c.607 §5 (238.061 enacted in lieu
of 238.060)]
238.061 [1965
c.607 §6 (enacted in lieu of 238.060); repealed by 1981 c.126 §6]
238.062 Membership of deputy district
attorneys. Any deputy district attorney receiving
any compensation from the state or from a county participating in the Public
Employees Retirement System shall establish membership in the system after
service for six months without having been absent 30 working days. Any
contributions required to be paid by any such deputy district attorney shall be
based on salary paid by the state, by a county participating in the system or
by both. The application of this chapter to any such deputy district attorney
made prior to the effective date of this section by the Public Employees
Retirement Board hereby is confirmed and ratified. [Formerly 237.025; 2003 c.67
§18]
238.065 [1965
c.605 §4; repealed by 1981 c.126 §6]
238.068 Membership of legislators.
(1) Notwithstanding ORS 238.015, any person who is a member of the Legislative
Assembly at any time on or after September 13, 1975, and before January 1,
1988, regardless of whether the person has reached the age of 65 years, may
become a member of the Public Employees Retirement System by giving the Public
Employees Retirement Board, before January 1, 1990, written notice of desire to
do so. The written notice shall take effect on the first day of the month
following the date of receipt thereof by the board or upon the person’s
completion of six months’ service, whichever occurs last.
(2)
Notwithstanding any other provision of this chapter, any person who is a member
of the Legislative Assembly and a member of the system, and any person who is
not a member of the Legislative Assembly but was a member thereof before
January 11, 1987, upon payment to the board before July 1, 1991, of the total
amount of the employee contributions the person would have made to the Public
Employees Retirement Fund for all periods of service as a member of the
Legislative Assembly before the date of that payment for which the person was
not a member of the system, is entitled to retirement credit for those periods
served as a member of the Legislative Assembly, including those periods after
reaching the age of 65 years, that the person would have been entitled to had
the person been a member of the system for those periods. Employee
contributions to be paid by a person under this subsection may be paid at the
option of the person in a lump sum or in installments. If the person is a
member of the Legislative Assembly, upon request by the person in writing to
the state official authorized to disburse funds in payment of the salary of the
person as a member of the Legislative Assembly, the state official shall deduct
monthly from that salary the amount of money indicated in the request for
payment of employment contributions under this subsection and shall pay amounts
so deducted to the board.
(3)
Notwithstanding any other provision of this chapter, any person who is a member
of the Legislative Assembly and a member of the system, and any person who is
not a member of the Legislative Assembly but was a member thereof before
January 9, 1989, who previously had been employed by an employer participating
in the system, but had separated from all service with that employer entitling
the employee to membership in the system and withdrawn the amount credited to
the member account of the member, may have all of the rights in the system
which were forfeited by the withdrawal restored by repaying to the board by
July 1, 1991, the full amount so withdrawn together with the interest that
would have accumulated on the sum had the amount not been withdrawn. [Formerly
237.029; 2001 c.945 §33]
238.070
[Repealed by 1965 c.607 §9]
238.072 Membership of certain legislative
employees. An employee shall not be considered to
have ceased to be a member of the system under ORS 238.095 (2) by reason of any
year in which the employee is employed by the Legislative Assembly or either
house thereof, or by a committee of the Legislative Assembly or either house
thereof, for periods aggregating eight months or more during the year, whether
or not contributions are made to the fund by or on behalf of the employee for
those periods of employment, unless the employee withdraws the amount credited
to the member account of the member. [Formerly 237.019; 2001 c.945 §34]
238.074 Membership of community college
employees. An academic employee of a community
college who is employed 0.375 full-time equivalent (FTE) on a 12-month basis or
0.50 FTE on a nine-month basis shall be deemed to be employed for 600 hours or
more in a year for purposes of this chapter. The combination of duties that
comprises a 1.0 FTE in any given discipline or academic activity shall be
determined by the governing body of the institution in which the academic
employee is employed. Nothing in this section is intended to affect the rights
of academic employees at institutions of higher learning or academic employees
employed in public secondary or elementary schools. [Formerly 237.017 (3)]
238.075 [1965
c.607 §8; repealed by 1981 c.126 §6]
(Membership of Retired Employees)
238.078 Reemployment of retired members.
(1)(a) A member who has been retired for service for more than six consecutive
calendar months may be reemployed by a participating public employer in the
manner provided by this subsection.
(b)
Any person reemployed as provided in this subsection shall resume making
employee contributions, and the employer shall make contributions on behalf of
the person as provided in ORS 238.225. Except as provided in paragraph (c) of
this subsection, payments of retirement allowance and other benefits received
by the person, including lump sum or installment payments received by the
person under ORS 238.305 (2) or (3), shall not be repaid into the retirement
fund after the person reenters public employment. Upon reemployment under this
subsection, the board shall cease making payments of retirement allowance and
other benefits to the person, including installment payments to the person
under ORS 238.305 (4). The board shall reestablish the member account of the
person and reduce the account by all payments of retirement allowance and other
benefits, including installment payments, that were previously received by the
person and that were derived from the member account. Amounts that were
credited to the reserve established by the board for the payment of the person’s
benefits that were not derived from the member account shall be credited pro
rata to the funds from which the amounts were derived.
(c)
Upon reemployment under this subsection, the former retirement of the
reemployed person and any election of option for payment of retirement benefits
made by the person shall be canceled. When the person again retires the person
may elect any option for payment of retirement benefits authorized by this
chapter, except that a person who elected to receive a service retirement
benefit pursuant to ORS 238.305 (2) or (3) at the time of former retirement may
not elect any other option at the time of subsequent retirement unless an
amount equal to the lump sum and the interest that would have accumulated on
the sum has been repaid by the employee to the fund. Upon such subsequent
retirement any prior service pension due the employee shall be derived from the
unused portion of the prior service credit reserve and shall be calculated on
the basis of then attained age.
(2)
A member who has been retired for service for less than six consecutive
calendar months may be reemployed by a participating public employer only upon
immediate repayment in a lump sum by the member of the amount of retirement
benefits drawn. The member account of the member shall be reestablished just as
it was at the time of former retirement after the lump sum repayment is made.
(3)
If a member of the system who retired before August 21, 1981, is reemployed, as
provided in subsection (1) or (2) of this section, beginning on or after August
21, 1981, the service retirement allowance received upon subsequent retirement
by the member shall be:
(a)
For service before August 21, 1981, an allowance including a current service
pension computed on the basis of ORS 237.147 (2) (1979 Replacement Part).
(b)
For service on or after August 21, 1981, an allowance including a current
service pension computed on the basis of ORS 238.300 (2).
(4)
A person may be reemployed by a public employer that is not participating in
the system, or may be employed by a participating public employer in a position
that is in a class of employees that was not designated by the public employer
under ORS 238.035 as a class of employees that become members of the system,
without affecting the person’s status as a retired member or the person’s
continued receipt of retirement benefits.
(5)
Subsection (4) of this section does not apply to any member who retires under
the provisions of ORS 238.280 (1), (2) or (3). [Formerly 237.125; 2001 c.945 §10;
2003 c.625 §33a; 2005 c.808 §39; 2007 c.404 §3; 2009 c.390 §6]
238.080
[Repealed by 1981 c.126 §6]
238.082 Limits on hours worked by retired
members. (1) Subject to the limitations in this
section, any public employer may employ any member who is retired for service
if the administrative head of the public employer is satisfied that such
employment is in the public interest.
(2)
Except as provided in this section, the period or periods of employment by one
or more public employers of a retired member who is reemployed under this
section may not total 1,040 hours or more in any calendar year.
(3)
A retired member who is receiving old-age, survivors or disability insurance
benefits under the federal Social Security Act may be employed under this
section for the number of hours permitted by subsection (2) of this section, or
for the number of hours for which the salary equals the maximum allowed for
receipt of the full amount of those benefits to which the person is entitled,
whichever is greater.
(4)
Except as provided in subsection (9) of this section, the limitations on
employment imposed by subsections (2) and (3) of this section do not apply to a
retired member who is employed as a teacher or as an administrator, as those
terms are defined in ORS 342.120, if the retired member is employed by a school
district or community college district located within a county with a
population of not more than 35,000 inhabitants according to the latest federal
decennial census, or is employed by an education service district and the
retired member’s primary work duties are performed in a county with a
population of not more than 35,000 inhabitants according to the latest federal
decennial census. A retired member who is employed under this subsection as a
teacher, as defined in ORS 342.120, by the same public employer that employed
the member at the time of retirement remains in the same collective bargaining
unit that included the member before retirement.
(5)
Except as provided in subsection (9) of this section, the limitations on
employment imposed by subsections (2) and (3) of this section do not apply to a
retired member who is employed:
(a)
By the sheriff of a county with a population of fewer than 75,000 inhabitants,
according to the latest federal decennial census;
(b)
By the municipal police department of a city with a population of fewer than
15,000 inhabitants, according to the latest federal decennial census;
(c)
By the state or a county for work in a correctional institution located in a
county with a population of fewer than 75,000 inhabitants, according to the
latest federal decennial census;
(d)
By the Black Butte Ranch Rural Fire Protection District, the Black Butte Ranch
Service District or the Sunriver Service District;
(e)
By the Oregon State Police for work in a county with a population of fewer than
75,000 inhabitants, according to the latest federal decennial census;
(f)
As a deputy director or assistant director of the Department of Human Services,
if the Governor approves the exemption for the person from the limitations on
employment imposed in subsections (2) and (3) of this section; or
(g)
As a deputy director or assistant director of the Oregon Health Authority, if
the Governor approves the exemption for the person from the limitations on
employment imposed in subsections (2) and (3) of this section.
(6)
Except as provided in subsection (9) of this section, the limitations on
employment imposed by subsections (2) and (3) of this section do not apply to a
retired member who is employed to temporarily replace an employee who serves in
the National Guard or in a reserve component of the Armed Forces of the United
States and who is called to federal active duty.
(7)
Except as provided in subsection (9) of this section, the limitations on
employment imposed by subsections (2) and (3) of this section do not apply to a
retired member who is employed by a road assessment district organized under
ORS 371.405 to 371.535.
(8)
Except as provided in subsection (9) of this section, the limitations on
employment imposed by subsections (2) and (3) of this section do not apply to a
retired member who is a nurse and is employed by a public employer as a nurse
or for the purpose of teaching nursing during the period in which a nursing
workforce shortage declared by the Legislative Assembly or the Governor is in effect.
(9)(a)
Except as provided in paragraph (b) of this subsection, subsections (4) to (8)
of this section do not apply to any member who retires under the provisions of
ORS 238.280 (1), (2) or (3).
(b)
Subsection (4) of this section applies to a person who retires under the
provisions of ORS 238.280 (1), (2) or (3) as long as the person’s date of
retirement is more than six months before the date the person is employed under
subsection (4) of this section.
(10)
Employment under this section does not affect the status of a person as a
retired member of the system and a recipient of retirement benefits under this
chapter.
(11)
Hours worked by a person employed under subsections (4) to (8) of this section
shall not be counted for the purpose of the limitations on employment imposed
by subsections (2) and (3) of this section. [Formerly 237.143; 1997 c.178 §1;
2001 c.874 §2; 2003 c.625 §34; 2005 c.808 §40; 2007 c.307 §1; 2007 c.404 §4;
2007 c.774 §1; 2007 c.789 §4; 2009 c.390 §1; 2009 c.868 §§3,5; 2011 c.720 §69]
Note:
Sections 2 and 3, chapter 499, Oregon Laws 2007, provide:
Sec. 2. (1)
The limitations on employment imposed by ORS 238.082 (2) and (3) do not apply
to a retired member who is a registered nurse and who is employed by a public
employer as a nursing instructor.
(2)
The limitations on employment imposed by ORS 238.082 (2) and (3) do not apply
to a retired member who is employed by the Department of Public Safety
Standards and Training for the purpose of providing training under ORS 181.610
to 181.712.
(3)
This section does not apply to any member who retires under the provisions of
ORS 238.280 (1) or (3).
(4)
Hours worked by a person employed under this section shall not be counted for
the purpose of the limitations on employment imposed by ORS 238.082 (2) and
(3).
(5)
Employment under this section does not affect the status of a person as a
retired member of the Public Employees Retirement System and a recipient of
retirement benefits under this chapter. [2007 c.499 §2; 2009 c.390 §§3,10]
Sec. 3.
Section 2 of this 2007 Act is repealed January 2, 2016. [2007 c.499 §3]
Note:
Sections 3 and 4, chapter 774, Oregon Laws 2007, provide:
Sec. 3. (1)
The limitations on employment imposed by ORS 238.082 (2) and (3) do not apply
to a retired member who is employed by a school district or education service
district to provide services as a speech-language pathologist or
speech-language pathologist assistant.
(2)
This section does not apply to any member who retires under the provisions of
ORS 238.280 (1) or (3) unless the person’s date of retirement is more than six
months before the date the person is employed under this section.
(3)
Hours worked by a person employed under this section shall not be counted for
the purpose of the limitations on employment imposed by ORS 238.082 (2) and
(3).
(4)
Employment under this section does not affect the status of a person as a
retired member of the Public Employees Retirement System and a recipient of
retirement benefits under this chapter. [2007 c.774 §3; 2009 c.390 §§4,11]
Sec. 4.
Section 3 of this 2007 Act is repealed January 2, 2016. [2007 c.774 §4]
238.085 [1965
c.605 §3; repealed by 1981 c.126 §6]
238.088 Appointment or election of retired
member to public office. (1) Except as provided in
subsection (2) of this section, a person who is elected to a full-time salaried
office of the state or one of the participating political subdivisions thereof,
or who is appointed to a full-time salaried office having a term fixed by
statute or charter, whether or not the person has been retired, does not
forfeit any rights accrued or accruing to the person under this chapter.
However, for the period that such person holds such office the person is not
entitled to any pension or annuity provided by this chapter. Upon ceasing to
hold such office, benefits shall be computed or recomputed by the Public
Employees Retirement Board on the basis of age then attained.
(2)
If a person is elected or appointed to the office of sheriff or county judge or
commissioner in a county with a population of fewer than 75,000 inhabitants,
according to the latest federal decennial census, and the person does not elect
to become an active member of the system under ORS 238.015 (5), the person
shall continue to be a retired member and to receive retirement benefits for as
long as the person holds the office.
(3)
Subsection (2) of this section does not apply to any member who retires under
the provisions of ORS 238.280 (1), (2) or (3). [Formerly 237.133; 2003 c.625 §35a;
2005 c.152 §7; 2005 c.808 §41; 2007 c.404 §5]
238.090
[Amended by 1953 c.426 §4; 1955 c.66 §1; 1963 c.227 §6; repealed by 1981 c.126 §6]
238.092 Option of legislators to receive
certain benefits; employment of persons as legislative employees or state
police officer beyond 65 years of age. (1)
Notwithstanding any other provision of this chapter:
(a)
A retired member of the Public Employees Retirement System who has retired as
other than a member of the Legislative Assembly and who is thereafter appointed
or elected as a member of the Legislative Assembly may elect, by giving the
Public Employees Retirement Board written notice, to receive the pension and
annuity provided by this chapter for service as other than a member of the
Legislative Assembly, and be an active member of the system as a member of the
Legislative Assembly for the purpose of service in the Legislative Assembly. A
person may make an election under this paragraph only if the person becomes an
active member of the system under this chapter for the purpose of service in
the Legislative Assembly as provided in ORS 237.650 (3). Notice of an election
under this paragraph must be given by the person not more than 30 days after
the person takes office.
(b)
A member of the Legislative Assembly who is a member of the system as a member
of the Legislative Assembly and who becomes eligible to retire by reason of
service as other than a member of the Legislative Assembly, without regard to
when that service was performed, may elect, by giving the board written notice,
to retire and receive the pension and annuity provided by this chapter for
service as other than a member of the Legislative Assembly, and to continue,
for the purpose of service in the Legislative Assembly, as an active member of
the system as a member of the Legislative Assembly.
(c)
Upon receipt of the notice provided for in paragraphs (a) and (b) of this
subsection, the board shall determine that portion of the accumulated
contributions, if any, of the member and interest thereon attributable to
service as other than a member of the Legislative Assembly, which shall be used
in determining the amount of the annuity the member shall receive for that
service. The portion of the accumulated contributions, if any, of the member
and interest thereon attributable to service as a member of the Legislative
Assembly shall remain in the member account of the member and, together with
any subsequent contributions and interest thereon, be used in determining the
amount of the additional annuity the member shall receive for that service upon
subsequent retirement. If the member does not have a member account, the board
shall determine the member’s retirement allowance for nonlegislative
service based on the number of years of nonlegislative
service, and shall determine any additional benefit to be received after the
member subsequently retires based on the number of years of service in the
Legislative Assembly.
(2)
If a retired member of the system is employed by the Legislative Assembly, or
by the Oregon State Police, for the purpose of service during a regular or
special session of the Legislative Assembly, the hours worked during the
session shall not be counted for the purpose of the limitations on employment
imposed by ORS 238.082 (2) and (3). [Formerly 237.145; 2001 c.945 §35; 2003
c.67 §19; 2007 c.776 §4; 2009 c.390 §8; 2011 c.722 §3]
(Termination of Membership)
238.095 Termination of membership.
(1) An employee shall cease to be a member of the Public Employees Retirement
System if the employee withdraws the member account, if any, of the member in
the manner provided by ORS 238.265.
(2)
Except as provided in subsection (3) of this section, an inactive member ceases
to be a member of the system if the member is not vested and is inactive for a
period of five consecutive years.
(3)
A school district employee does not cease to be a member of the system under
subsection (2) of this section if:
(a)
After completing a school year, the member is inactive for the next following
five school years; and
(b)
The member either is reemployed by a school district in a qualifying position
at the beginning of the sixth school year, or reaches earliest service
retirement age before the beginning of the sixth school year.
(4)
Interest shall not accrue on the amount in the member account of the former
member from the date that membership is terminated under subsection (2) of this
section. Upon request by the former member, the Public Employees Retirement
Board shall pay the amount in a member account to a former member upon the termination
of the membership of the former member under subsection (2) of this section if
the former member is separated from all service with employers who are treated
as part of a participating public employer’s controlled group under the federal
laws and rules governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and trust. The
board may deduct, from the amount paid to a former member under this
subsection, all reasonable costs incurred by the system in locating the member.
(5)
If the membership of a person in the system is terminated under subsection (2)
of this section, and the person subsequently becomes an active member of the
system, any amounts that were not paid to the person under subsection (4) of
this section shall be credited with net earnings and losses. Crediting under
this subsection commences upon the person becoming an active member of the
system and continues as long as the person remains an active member. [Formerly
237.109; 1999 c.317 §7; 2001 c.945 §36; 2003 c.67 §20; 2003 c.105 §1; 2005
c.152 §4; 2007 c.776 §5]
238.100
[Repealed by 1965 c.607 §9]
RETIREMENT CREDIT
(Restoration of Forfeited Credit)
238.105 Restoration of credit forfeited by
reason of termination of membership. (1) Whenever,
within five years after the employee is separated from all service entitling
the employee to membership in the system, an employee who has withdrawn the
amount credited to the member account of the member reenters the service of an employer
participating in the system, the employee’s rights in the system that were
forfeited by the withdrawal shall be restored upon repaying to the board within
one year after reentering the service of the employer, the full amount so
withdrawn together with the interest that would have been accumulated on the
sum had the amount not been withdrawn.
(2)
Restoration of rights under this section does not affect any forfeiture of
rights of a person by reason of:
(a)
Withdrawal of an account established under ORS 238.440;
(b)
Withdrawal from the pension program under ORS 238A.120; or
(c)
Withdrawal of individual accounts pursuant to ORS 238A.375. [Formerly 237.111
(3); 2001 c.945 §37; 2007 c.52 §4]
238.110 [1963
c.227 §2; 1965 c.607 §4; repealed by 1981 c.126 §6]
238.115 Alternate method of restoring
credit forfeited by reason of termination of membership.
(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 member account of the member, 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 member:
(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 member account of the member
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 member. The interest shall be computed
at the annual rate of 7.5 percent.
(b)
If a member 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)
A member 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) or (3).
(2)
A member 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 member, before the effective date of retirement of
the member:
(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 member account of the member
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 regular
account of the member 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 (1997 Edition), but
separated from all service entitling the employee to membership in the system
of the association and withdrew the amount credited to the member 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:
(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 member account of the member
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 regular
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.
(4)
Restoration of creditable service under this section does not affect any
forfeiture of rights of a person by reason of:
(a)
Withdrawal of an account established under ORS 238.440;
(b)
Withdrawal from the pension program under ORS 238A.120; or
(c)
Withdrawal of individual accounts pursuant to ORS 238A.375. [Formerly 237.108;
1999 c.130 §5; 2001 c.945 §§11,38; 2007 c.52 §5]
238.120 [1963
c.227 §3; repealed by 1981 c.126 §6]
(Credit for Probationary Periods)
238.125 Credit for probationary period of
employment. 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 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,
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 regular account of the member; 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. [Formerly
237.117; 2001 c.945 §39]
238.130 [1963
c.227 §4; 1967 c.335 §24; repealed by 1981 c.126 §6]
238.135 Credit for probationary periods in
seasonal positions. (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, 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 regular account of the member;
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. [Formerly
237.119; 2001 c.945 §40]
238.140 [1963
c.227 §5; repealed by 1981 c.126 §6]
(Credit for Periods of Service With
Other Employers)
238.145 Credit for service as police
officer or firefighter with nonparticipating employer.
(1) A member of the system employed as a police officer or firefighter shall be
entitled to receive retirement credit as provided in subsection (3) 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)
In addition to the requirements of subsection (1) of this section, if the
member first becomes a member of the system on or after January 1, 2000, as
described in subsection (5) of this section, the member must have been a member
of the system for at least 60 calendar months at the time the purchase is made.
(3)
Except as provided in subsection (4) of this section, a member of the system
employed as a police officer or firefighter who meets the requirements 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. The amounts representing
the contributions the member would have made and the interest on those amounts
shall be credited to the regular account of the member. 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.
(4)
If a person first becomes a member of the system on or after January 1, 2000,
as described in subsection (5) of this section, the person may not acquire more
than five years of credit under this section in combination with any credit
acquired under ORS 526.052 for periods of service with another employer that
entitle the employee to retirement credit under a retirement plan offered by
the other employer. If a person subject to limitation imposed by this
subsection also is eligible for credit under ORS 526.052, the total years of
credit that may be acquired under this subsection and ORS 526.052 may not
exceed five years.
(5)
A person becomes a member of the system before January 1, 2000, for the
purposes of this section if:
(a)
The person is a member of the system on January 1, 2000; or
(b)
The person was a member of the system before January 1, 2000, ceased to be a
member of the system under the provisions of ORS 238.095, 238.265 or 238.545
before January 1, 2000, but restores part or all of the forfeited creditable
service from before January 1, 2000, under the provisions of ORS 238.105 or
238.115 after January 1, 2000. [Formerly 237.099; 1999 c.317 §12; 2001 c.945 §41]
238.148 Credit for service as public
safety officer in another state. (1) A member
of the Public Employees Retirement System who is a police officer is entitled
to receive retirement credit as provided in subsection (2) of this section if:
(a)
The member was employed as a public safety officer by another state, or
political subdivision of 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 (3) of this section, a member of the system
employed as a police officer 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 another state, or political subdivision of another state,
not to exceed a maximum of four years, if the member within 90 days of the
member’s effective date of retirement:
(a)
Applies in writing to the Public Employees Retirement Board for such retirement
credit;
(b)
Provides written verification to the board from the other state, or political
subdivision of the other state, that employed the member, verifying the period
of time that the member served as a public safety officer 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, including
all administrative costs incurred by the system in processing the application
for acquisition of the retirement credit.
(3)
A member may not receive retirement credit under the provisions of this section
for any period of service with another state, or political subdivision of
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 or by a political subdivision of the other state.
(4)
For the purposes of this section, “public safety officer” means a person who
serves in a position with another state, or political subdivision of another
state, that is the other state’s equivalent of a position described in ORS
238.005 (19). [2007 c.776 §2; 2011 c.9 §24; 2011 c.637 §72a]
Note:
238.148 was added to and made a part of ORS chapter 238 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
238.150
[Formerly 237.085; repealed by 2001 c.945 §73]
238.155
[Formerly 237.093; repealed by 1997 c.175 §1 (238.156 enacted in lieu of
238.155)]
238.156 Contributions, benefits and
retirement credit for periods of service in uniformed services or Armed Forces;
rules. (1) Notwithstanding any other provision
of this chapter, but subject to subsection (4) of this section, an employee who
leaves a qualifying position for the purpose of performing service in the
uniformed services is entitled to receive contributions, benefits and service
credit for the period under rules adopted by the Public Employees Retirement
Board pursuant to subsection (2) of this section.
(2)
The board shall adopt rules establishing contributions, benefits and service
credit for any period of service in the uniformed services by an employee
described in subsection (1) of this section. For the purpose of adopting rules
under this subsection, the board shall consider and take into account all
federal law relating to contributions, benefits and service credit for any
period of service in the uniformed services. Contributions, benefits and
service credit under rules adopted by the board pursuant to this subsection may
not exceed contributions, benefits and service credit required under federal law
for periods of service in the uniformed services.
(3)
Subject to subsection (4) of this section, an employee who leaves a qualifying
position for the purpose of entering or reentering active service in the Armed
Forces shall acquire retirement credit for the period during which the employee
served in the Armed Forces if:
(a)
The employee returns to the service of the employer who employed the employee
immediately before commencing service in the Armed Forces in a qualifying
position;
(b)
The employee returns to that employment within one year after being otherwise
than dishonorably discharged from the Armed Forces and within five years after
the date that the employee entered or reentered active service in the Armed
Forces; and
(c)
After returning to employment and before retirement, the employee pays to the
Public Employees Retirement Board in a lump sum six percent of the salary that
would have been paid to the member during the period of military service in the
Armed Forces based on the employee’s salary rate at the time the employee
entered or reentered the Armed Forces, as though the employee had remained in
the employment of the employer. Any lump sum contribution made under this
paragraph shall be added to the employee’s regular account and in all respects
shall be considered as though made by payroll deduction.
(4)
An employee may not receive benefits under both subsections (1) and (3) of this
section for the same period of service in the Armed Forces or uniformed
services. If an employee is entitled to benefits under both subsections (1) and
(3) of this section by the terms of those provisions, the employee shall
receive benefits under the subsection that provides the greater benefit.
(5)
For the purposes of this section, “Armed Forces” means the Army, Navy, Air
Force, Marine Corps and Coast Guard. [1997 c.175 §2 (enacted in lieu of
238.155); 2001 c.945 §42; 2003 c.625 §21; 2003 c.733 §51a; 2005 c.152 §8]
238.157 Alternative provision for
retirement credit for periods of service with Armed Forces.
(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 an
amount determined by the board to represent the full cost to the system of
providing the retirement credit to the member, including all administrative
costs incurred by the system in processing the application for acquisition of
the retirement credit.
(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.
(3)
Any person acquiring retirement credit under this section may elect to have the
service retirement allowance of the person determined under any calculation for
which the person is eligible under ORS 238.300, even if the calculation does
not produce the largest service retirement allowance. An election under this
subsection must be made within 90 days of the member’s effective date of
retirement. [1997 c.578 §2; 2003 c.105 §2; 2005 c.808 §26]
238.160 Retirement credit for service
while on loan to federal government. Any employee
of an employer participating in the system shall receive retirement credit,
subject to the limitations of this chapter, for the period of employment with
the participating employer prior to July 1, 1946, and for employment in any
branch or department of the United States Government, and for military service
in the Armed Forces of the United States, as though the person had been an
employee of the participating employer throughout such period of employment or
service, if within 40 days from and after separation from such civilian
employment with the United States Government, or within one year after being
otherwise than dishonorably discharged from military service in the Armed
Forces of the United States, the person returned to the employment of the
participating employer from which the person was transferred or loaned,
provided that such employee comes within either of the following descriptions:
(1)
Prior to employment with the United States Government, the person was employed
by the participating employer and was transferred or loaned to a branch or
department of the United States Government pursuant to an agreement between
such participating employer and such branch or department of the United States
Government for the transfer or loan of any departmental unit of such
participating employer to the federal government during the war emergency.
(2)
Served in any branch of the Armed Forces of the United States while on military
leave of absence from a position in federal government employment as set forth
in subsection (1) of this section. [Formerly 237.097]
238.162 Retirement credit for service as
teacher in public schools of another state. (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:
(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, including
all administrative costs incurred by the system in processing the application
for acquisition of the retirement credit.
(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. [1997 c.742 §2; 2003
c.105 §3]
(Miscellaneous)
238.165 Credit for certain periods of
employment by Legislative Assembly. (1) As used
in this section, “legislative employee” means any person employed by the
Legislative Assembly, either of its houses or any of its committees prior or
subsequent to July 22, 1973, during any period or periods of such employment
qualifying the person for membership and participation in the Public Employees
Retirement System under the provisions of this chapter then in effect. “Legislative
employee” does not include any member of the legislature.
(2)
A person shall not receive retirement credit in the Public Employees Retirement
System for any period in which the person was a legislative employee, during
which the person did not pay the employee contributions required by law, except
as provided under this section and ORS 173.210.
(3)
Nothing in this section shall be considered to change any requirements of this
chapter for membership in the Public Employees Retirement System, or to grant
any membership or other rights to persons whose employment by the Legislative
Assembly, either of its houses or any of its committees was not of a character
or duration qualifying them under then applicable provisions of this chapter
for membership in the system.
(4)
Any person who is a legislative employee on July 22, 1973, who did not pay the
employee contributions required by law during employment as a legislative
employee prior to July 22, 1973, may obtain retirement credit for the period of
such employment in the following manner:
(a)
No later than one year after July 22, 1973, the employee shall give written
notice to the board that the employee elects to pay to the fund the unpaid
employee contributions attributable to legislative employment.
(b)
The employee shall then pay to the board the entire amount of the unpaid
employee contributions without interest, in a lump sum or at the option of the
employee in installments, within five years after the date of making the
election but prior to reaching compulsory retirement age.
(c)
If a person has reached compulsory retirement age on or before July 22, 1973,
or will reach compulsory retirement age no later than one year after July 22,
1973, the time in which the employee may pay the contributions to the system is
extended to one year after July 22, 1973.
(5)
Any person who was a legislative employee prior to July 22, 1973, and who is
not so employed on July 22, 1973, but who becomes a legislative employee once
again after July 22, 1973, may elect to pay employee contributions and obtain
retirement credit for service prior to July 22, 1973, as a legislative
employee. The election shall be made by giving written notice to the board no
later than one year after the first day of the subsequent employment, in the
same manner and subject to the same conditions as set forth in subsection (4)
of this section.
(6)
Subject to subsection (8) of this section, any person who makes the election
under subsection (4) or (5) of this section and pays to the system the entire
amount of employee contributions required thereunder,
and who during other qualifying employment by a participating public employer
contributed to the fund and subsequently but prior to July 22, 1973, withdrew
contributions under ORS 238.265, may, in the same manner and subject to the
same conditions as set forth in subsection (4) of this section, repay to the
fund the full amount of the contributions withdrawn by the employee, and rights
in the system forfeited by the withdrawal shall thereupon be restored.
(7)
If a person who has reached or will reach compulsory retirement age within one
year after July 22, 1973, the time for repayment under this section of the full
amount of withdrawn contributions in order to restore rights in the system is
extended to one year after July 22, 1973.
(8)
A restoration of forfeited rights in the system shall not be available under
subsections (6) and (7) of this section if a person withdrew contributions before
the commencement of the employment in the course of which the person was or
became a legislative employee, if the covered employment in the course of which
the withdrawn contributions were made terminated more than five years before
the commencement of employment.
(9)
Any person who, on July 22, 1973, is an employee of the Legislative Counsel, or
the Legislative Counsel, and who would have been eligible for retirement credit
in the system for such employment prior to July 22, 1973, but for failure to
exercise the option to become a member of the system under provisions of ORS
173.210 prior to its amendment by chapter 735, Oregon Laws 1973, may
nevertheless obtain retirement credit in the system for such employment by
making the election and paying employee contributions as provided in and
subject to the conditions of subsection (4) of this section. The person shall
not be eligible to make any election under subsection (5) or subsections (6)
and (7) of this section. [Formerly 237.095]
238.170
[Formerly 237.021; repealed by 1999 c.130 §1]
238.175 Retirement credit for periods of
disability. (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, 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, including
all administrative costs incurred by the system in processing the application
for acquisition of the retirement credit.
(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. [1997 c.648 §2;
2003 c.105 §4]
238.180 [2005
c.332 §10; repealed by 2007 c.769 §7]
CONTRIBUTIONS
(Employee Contributions)
238.200 Employee contributions generally.
(1)(a) An active member of the Public Employees Retirement System shall
contribute to the Public Employees Retirement Fund and there shall be withheld
from salary of the member six percent of that salary as an employee
contribution.
(b)
Notwithstanding paragraph (a) of this subsection, an employee who is an active
member of the system on August 21, 1981, shall contribute to the fund and there
shall be withheld from salary of the member, as long as the employee continues
to be an active member of the system, four percent of that salary if the salary
for a month is less than $500, or five percent of that salary if the salary for
a month is $500 or more and less than $1,000. Notwithstanding subsection (2) of
this section, for the purpose of computing the percentage of salary to be
withheld under this paragraph from a member who is an employee of a school
district or of the State Board of Higher Education whose salary is based on an
annual agreement, the agreed annual salary of the member shall be divided into
12 equal installments, and each installment shall be considered as earned and
paid in separate, consecutive months, commencing with the first month that
payment is actually made under the terms of the salary agreement.
(2)
The contributions of each member as provided in subsection (1) of this section
shall be deducted by the employer from each payroll and transmitted by the
employer to the Public Employees Retirement Board, which shall cause them to be
credited to the member account of the member. Salary shall be considered earned
in the month in which it is paid. The date inscribed on the paycheck or warrant
shall be considered as the pay date, regardless of when the salary is actually
delivered to the member.
(3)
An active member who is concurrently employed by more than one participating
public employer, and who is a member of or entitled to membership in the
system, shall make contributions to the fund on the basis of salary paid by
each employer.
(4)
Notwithstanding subsections (1) to (3) of this section, a member of the system,
or a participating employer acting on behalf of the member pursuant to ORS
238.205, is not permitted or required to make employee contributions to the
fund for service performed on or after January 1, 2004. This subsection does
not affect any contribution for the purpose of unit purchases under ORS 238.440
or amounts paid for acquisition of creditable service under ORS 238.105 to
238.175. [Formerly 237.071 (1) to (3); 2001 c.945 §43; 2003 c.67 §1; 2003 c.625
§9]
238.205 Payment of employee contribution
by employer. Notwithstanding any other provision of
this chapter, and subject to the provisions of this section, a public employer
participating in the system may agree, by a written employment policy or
agreement in effect on or after July 1, 1979, to “pick-up,” assume or pay the
full amount of employee contributions required or permitted by ORS 238.200 for
all or less than all active members of the system employed by the employer to
the extent employee contributions are required or permitted by ORS 238.200. If
a public employer so agrees:
(1)
The rate of contribution of each active member of the system employed by the
employer who is covered by such policy or agreement shall uniformly be six
percent of salary regardless of the amount of monthly salary.
(2)
The full amount of required employee contributions assumed or paid by the
employer on behalf of its employees shall be considered “salary,” as defined in
ORS 238.005, only for the purpose of computing a member’s “final average
salary,” as defined in ORS 238.005, and shall not constitute additional “salary”
or “other advantages,” as defined in ORS 238.005, for any other purpose.
(3)
The full amount of required employee contributions “picked-up” by the employer
on behalf of its employees shall be considered “salary,” as defined in ORS
238.005, for the purpose of calculating the amount of the contribution, for the
purpose of computing a member’s “final average salary,” as defined in ORS
238.005, and for all other purposes.
(4)
The full amount of required employee contributions “picked-up,” assumed or paid
by the employer on behalf of its employees shall be added to the member
accounts of the members for their annuities and shall be considered employee
contributions for all other purposes of this chapter.
(5)
For the purposes of this section:
(a)
Employee contributions are “picked-up” if the written employment policy or
agreement described in subsection (1) of this section provides that employee
compensation will be reduced to generate the funds needed to make the employee
contributions; and
(b)
Employee contributions are “assumed or paid” by an employer if the written
employment policy or agreement described in subsection (1) of this section
provides that additional amounts shall be paid by the employer for the purpose
of making the employee contributions, and employee compensation will not be
reduced for the purpose of generating the funds needed to make the employee
contributions.
(6)
A participating public employer must give written notice to the Public
Employees Retirement Board at the time that a written employment policy or
agreement described in subsection (1) of this section is adopted or changed.
The notice must indicate whether the employer will “pick-up” or “assume or pay”
the employee contributions as described in subsection (5) of this section. Any
change in the manner in which employee contributions are to be paid applies
only to employee contributions made on and after the date the notice is
received by the board. [Formerly 237.075; 1997 c.175 §8; 2001 c.945 §44; 2003
c.67 §2]
238.210 Payment of certain circuit court
judge employee contributions by employer. The
state shall “pick-up,” assume or pay the full amount of contributions to the
fund required of circuit court judges who were district court judges before
January 15, 1998, and who are members of the system, but not judge members
under ORS 238.500 to 238.585. The full amount of those contributions “picked-up,”
assumed or paid by the state shall be treated as provided in ORS 238.205 (2) to
(4). [Formerly 237.079; 1997 c.175 §§9,10]
238.215 Contributions by certain higher
education employees. Notwithstanding any other
provision of this chapter:
(1)
An employee, as defined in ORS 243.910 (2), who is an active member of the
system and who has elected, and not canceled that election, to be assisted by
the State Board of Higher Education under ORS 243.920 (1), shall not contribute
to the fund on any part of the annual salary of the employee in excess of
$4,800 at any time during which the State Board of Higher Education assists the
employee under ORS 243.920 (1).
(2)
The current service pension, whether for service or disability retirement,
under this chapter provided by the contributions of the employers of such
employee shall be:
(a)
If the State Board of Higher Education is assisting such employee under ORS
243.920 (1) at the time of retirement, a pension equal to the annuity provided
by the employee’s accumulated contributions to the fund.
(b)
If the State Board of Higher Education is not assisting such employee under ORS
243.920 (1) at the time of retirement, but previously so assisted the employee:
(A)
For service before the date the State Board of Higher Education last ceased to
assist the employee, a pension equal to the annuity provided by the employee’s
accumulated contributions to the fund before that date.
(B)
For service on and after the date the State Board of Higher Education last
ceased to so assist the employee, a pension computed as provided in ORS 238.300
(2), but if the employee retires before reaching the normal retirement age,
actuarially reduced and computed on the then attained age. For the purpose of
computing the pension under this subparagraph, only the number of years of
membership of the employee after the day before that date and only the salary
of the employee on which the employee contributes to the fund for those years
shall be considered.
(3)
Subsection (2) of this section does not apply to an employee, as defined in ORS
243.910 (2), who is an active member of the system, who elected to be assisted
by the State Board of Higher Education under ORS 243.920 (1) before January 1,
1968, who canceled that election within the first 60 days of the calendar year
1968 as provided in ORS 243.940 (5) and who does not thereafter elect to be
assisted by the State Board of Higher Education under ORS 243.920 (1).
(4)
Subsection (2) of this section does not apply to an employee, as defined in ORS
243.910 (2), who is an active member of the system and has been an active
member of the system continuously since any date before January 1, 1968; who
elected to be assisted by the State Board of Higher Education under ORS 243.920
(1) before January 1, 1968; and who cancels that election in any calendar year
after 1968, but before the calendar year in which the employee retires, as
provided in ORS 243.940 (5) and does not thereafter elect to be assisted by the
State Board of Higher Education under ORS 243.920 (1). In this case the
benefit, whether for service or disability retirement, shall be computed as under
ORS 238.300; however, for service during periods in which the employee was
assisted by the State Board of Higher Education under ORS 243.920 (1), a year
of membership as used in ORS 238.300 (2) shall be a portion of a year which is
represented by a fraction the numerator of which is $4,800 and the denominator
of which is the salary earned by the employee in that year. However, in no case
shall the fraction be greater than one. [Formerly 237.073]
(Employee Rollover Contributions)
238.220 Employee rollover contributions;
rules. (1) The Public Employees Retirement
Board may, at its discretion, accept rollover contributions from an active
member. The board may accept rollover contributions under this section only if
the amounts contributed qualify for pretax rollover treatment under the federal
income tax laws governing qualified retirement plans.
(2)
If the board accepts a rollover contribution under this section, the
contribution shall be paid into the Public Employees Retirement Fund and
credited to an individual rollover account in the name of the member who made
the contribution. The rollover account must be kept separate from the member
account of the member and must be invested separately from all other moneys in
the Public Employees Retirement Fund. All earnings on the rollover account
shall be credited by the board to the rollover account. If the membership of
the employee in the Public Employees Retirement System is terminated under the
provisions of ORS 238.095, the board shall cease investment of the amounts in
the rollover account and, after the effective date of the termination, shall no
longer credit earnings and losses to the rollover account.
(3)
Except as provided in subsection (2) of this section, amounts in a rollover
account established under this section shall be invested in the same manner as
funds in regular accounts. However, ORS 238.255 does not apply to rollover
accounts.
(4)
Amounts held in a rollover account under this section shall be distributed to
the member within 90 days after the member’s effective date of retirement under
this chapter, or within 90 days after termination of the person’s membership in
the system under ORS 238.095.
(5)
Distribution from a member’s rollover account shall be made in a single lump
sum payment. Distribution from a member’s rollover account shall not affect the
calculation of any other service or disability retirement allowance, death
benefit or other benefit payable to a member under this chapter.
(6)
The board shall adopt rules and establish procedures for determining whether a
member will be allowed to make a rollover contribution under this section.
Rules and procedures adopted by the board must ensure that the rollover
contributions do not adversely affect the status of the system and the Public
Employees Retirement Fund as a qualified governmental plan and trust under
federal income tax law.
(7)
The board shall by rule establish a maintenance fee for rollover accounts
established under this section. The fee may be collected out of earnings on rollover
accounts or, if there are no earnings, from the principal amounts paid into the
rollover accounts. The fee shall be in an amount determined by the board to be
adequate to pay the full cost to the system of maintaining rollover accounts
under this section. [1999 c.988 §2; 2001 c.945 §45; 2003 c.67 §29]
238.222 Trustee-to-trustee transfers to
fund restoration of forfeited service or purchase of retirement credit; rules.
(1) Notwithstanding ORS 238.220, a member of the Public Employees Retirement System
who is eligible to obtain restoration of forfeited creditable service under ORS
238.115, or to purchase retirement credit under ORS 238.125, 238.135, 238.145,
238.148, 238.156, 238.157, 238.160, 238.162, 238.165, 238.175 or 526.052, and
who participates in an eligible retirement plan described in subsection (3) of
this section, may use moneys transferred by way of a trustee-to-trustee
transfer from the eligible retirement plan to the Public Employees Retirement
Board for the purpose of obtaining restoration of the forfeited creditable
service or to purchase the retirement credit. The board may not make any amount
transferred under this section available to the member, and may use the amount
only for the purposes described in this section. The amount transferred under
this section may not exceed the amount needed to obtain restoration of the
forfeited creditable service or to purchase the retirement credit.
(2)
If amounts transferred under this section are not sufficient to pay the full
amount necessary to obtain restoration of the forfeited creditable service or
to purchase the retirement credit, the member must pay the remaining amount
that is needed to obtain restoration of the forfeited creditable service or to
purchase the retirement credit.
(3)
The following are eligible retirement plans for the purposes of this section:
(a)
A governmental deferred compensation plan described in section 457 of the
Internal Revenue Code; and
(b)
A tax sheltered annuity described in section 403(b) of the Internal Revenue
Code.
(4)
The board shall adopt rules and establish procedures for determining whether a
member is allowed to obtain restoration of the forfeited creditable service or
to purchase the retirement credit by means of a trustee-to-trustee transfer
under this section. The rules and procedures must ensure that transfers under
this section do not adversely affect the status of the system and the Public
Employees Retirement Fund as a qualified governmental plan and trust under
federal income tax law. [2009 c.894 §2; 2011 c.722 §7]
(Employer Contributions)
238.225 Employer contributions.
A participating public employer shall, at intervals designated by the Public
Employees Retirement Board, transmit to the board those amounts the board
determines to be actuarially necessary to adequately fund the benefits to be
provided by the contributions of the employer under this chapter and the
benefits to be provided under the pension program established by ORS 238A.100
to 238A.245, except for the disability benefit for which funding is provided
under ORS 238A.240. From time to time, the board shall determine the
liabilities of the system and shall set the amount of contributions to be made
by participating public employers, and by other public employers who are required
to make contributions on behalf of members, to ensure that those liabilities
will be funded no more than 40 years after the date on which the determination
is made. [Formerly 237.081; 2001 c.945 §13; 2002 s.s.1 c.9 §1; 2002 s.s.3 c.5 §1;
2003 c.625 §8; 2003 c.746 §7; 2003 c.802 §160; 2005 c.808 §10]
238.227 Pooling of employers for purpose
of computing employer contributions. (1) For the
purpose of computing the employer contributions required under ORS 238.225 for
benefits to be provided under this chapter:
(a)
The Public Employees Retirement Board shall group together the school districts
of the state and treat the school districts of the state as a single employer
for actuarial purposes; and
(b)
The board shall group together all community college districts and the state
and treat the community college districts and the state as a single employer
for actuarial purposes.
(2)
For the purpose of computing the employer contributions required under ORS
238.225 for benefits to be provided under this chapter, any participating
public employer other than school districts may elect to be grouped with the
state and all community college districts and treated as a single employer for
actuarial purposes. An election under this subsection is irrevocable.
(3)
The computation of the contributions of a participating public employer that
makes an election under subsection (2) of this section shall be based only on
the liabilities of the employer under this chapter that are incurred after the
effective date of the employer’s election. The board shall separately compute
the contribution of the employer for the liabilities incurred by the employer
under this chapter before the effective date of the employer’s election.
(4)
A participating public employer may make an election under subsection (2) of
this section only by the adoption of a resolution or ordinance by the governing
body of the public employer.
(5)
Except as provided in this section, the board may not require that any
participating public employer be grouped with any other participating public
employer for the purpose of computing the employer contributions required under
ORS 238.225 for benefits to be provided under this chapter. If two
participating public employers merge or otherwise consolidate, and one of the
public employers has made an election under subsection (2) of this section:
(a)
The board may not require that the public employer that is the product of the
consolidation be grouped with the state and all community college districts
unless the public employer makes an election under subsection (2) of this
section; and
(b)
The board may require that the participating public employer that is the
product of the consolidation make contributions based on the group rate only
for those members for whom contributions based on the group rate were made
before the consolidation. [2005 c.808 §12]
238.229 Effect of lump sum payment on
contributions of pooled employer; application of excess amounts to offset
contributions to individual account program; rules.
(1) If a participating public employer is grouped with any other public
employer for the purpose of computing employer contributions under ORS 238.225
and the individual public employer makes a lump sum payment that is in addition
to the normal employer contribution of the public employer, the Public
Employees Retirement Board shall adjust the amount of employer contributions to
be made by the individual public employer to ensure that the benefit of the
lump sum payment accrues only to the individual public employer making the
payment. An individual public employer that makes a lump sum payment under the
provisions of this subsection shall remain grouped with other public employers
as provided by ORS 238.227 and 238A.220 for the purpose of all liabilities of the
employer that are not paid under this subsection. The board by rule may
establish a minimum lump sum payment that must be made by an individual public
employer before adjusting employer contributions under this subsection.
Notwithstanding any minimum lump sum payment established by the board, the
board must allow an individual public employer to make a lump sum payment under
this subsection if the payment is equal to the full amount of the individual
public employer’s accrued unfunded liabilities under this section and ORS
chapter 238A.
(2)
The board shall establish a separate account within the Public Employees
Retirement Fund for each lump sum payment made under this section by an
individual public employer. The board shall credit to each account all interest
and other income received from investment of the account funds during the
calendar year. Except as provided in subsection (3) of this section, the board
may not collect any administrative expense or other charge from the account or
from earnings on the account. Except as provided in subsections (5) and (6) of
this section, the account shall be used to offset contributions to the system
that the public employer would otherwise be required to make for the
liabilities against which the lump sum payment is applied.
(3)
The board may charge a participating public employer expenses for
administration of an account established under subsection (2) of this section
in an amount not to exceed $2,500 for the calendar year in which the account is
established and for the immediately following two calendar years, and in an
amount not to exceed $1,000 per year for all subsequent years.
(4)
If a participating public employer has any liabilities that are attributable to
creditable service by employees of the employer before the participating public
employer was grouped with other public employers under ORS 238.227, whether
under this section or pursuant to board rule, any lump sum payment made under
this section must be applied first against those liabilities, with the oldest
liability being paid first. Any amounts remaining after application under this
subsection must be deposited in a separate account established under subsection
(2) of this section.
(5)
Except as provided in subsection (6) of this section, if the board determines
at any time after an actuarial study that the amounts in an account established
under subsection (2) of this section exceed the amounts necessary to fund the
employer’s actuarial liabilities under the system, upon request of the
employer, the board shall apply the excess amounts to offset contributions to
the individual account program that the employer has agreed to pay under ORS
238A.335 or 238A.340. The board may apply excess amounts to offset
contributions to the individual account program under this subsection only to
the extent that the application will not result in the balance in the account
being reduced to less than the outstanding principal balance owed on the bonds
issued to fund the account. If the request is made by a school district, the
school district must attach to the request a copy of a resolution adopted by
the district school board for the district authorizing the request. The board
shall adopt rules governing offsets under the provisions of this subsection.
(6)
The board shall apply any excess amounts in an account established under
subsection (2) of this section to offset contributions to the individual
account program pursuant to subsection (5) of this section only if the board
has determined that applying the excess amounts does not cause the system or
the Public Employees Retirement Fund to lose qualification as a qualified
governmental retirement plan and trust under the Internal Revenue Code and
under regulations adopted pursuant to the Internal Revenue Code. [2005 c.808 §13;
2009 c.889 §1]
238.230
[Formerly 237.017 (2); repealed by 2001 c.945 §15]
238.231 Unfunded liability or surplus
after employee transfer or employer merger, consolidation or split.
(1) If a participating public employer transfers employees who are members of
the Public Employees Retirement System to another public employer, the two
public employers must enter into a written agreement that addresses the manner
in which any unfunded liability or surplus of the transferring public employer
under the system will be paid or credited.
(2)
If two or more public employers merge or consolidate, and any of the public
employers participate in the system, the public employers that merged or
consolidated must enter into a written agreement that addresses the manner in
which any unfunded liability or surplus of the merged or consolidated public
employers under the system will be paid or credited.
(3)
If a participating public employer splits into two or more public employers,
the public employers that result from the split must enter into a written
agreement that addresses the manner in which any unfunded liability or surplus
of the original participating public employer under the system will be paid or
credited.
(4)
A written agreement entered into under this section must be delivered to the
Public Employees Retirement Board not later than 60 days after the transfer,
merger, consolidation or split becomes effective. If public employers affected
by a transfer, merger, consolidation or split, including public employers
created by a merger, consolidation or split, fail to deliver to the board a
written agreement that addresses the unfunded liabilities or surpluses, or fail
to deliver to the board a written agreement that addresses the unfunded
liabilities or surpluses in a manner satisfactory to the board, the board shall
decide the manner in which unfunded liabilities or surpluses will be allocated
among the public employers. [2005 c.808 §14]
MEMBER ACCOUNTS
(Generally)
238.250 Regular accounts.
The board shall provide for a regular account for each active and inactive
member of the system who has made contributions to the fund. The regular
account of the member shall show the amount of the member’s contributions to
the fund and the interest which they have earned. The board shall furnish a
written statement thereof upon request by any member or beneficiary of the
system. [Formerly 237.275; 2001 c.945 §46; 2003 c.67 §22]
238.255 Credits to regular accounts when
earnings less than assumed interest rate. (1)
The regular account for an active or inactive member of the Public Employees
Retirement System shall be examined each year. If the regular account is
credited with earnings for the previous year in an amount less than the
earnings that would have been credited pursuant to the assumed interest rate
for that year determined by the Public Employees Retirement Board, the amount
of the difference shall be credited to the regular account and charged to a
reserve account in the Public Employees Retirement Fund established for the
purpose. A reserve account so established may not be maintained on a deficit
basis for a period of more than five years. Earnings in excess of the assumed
interest rate for years following the year for which a charge is made to the
reserve account shall first be applied to reduce or eliminate the amount of a
deficit.
(2)
The regular account for an active or inactive member who established membership
in the system before January 1, 1996, as described in ORS 238.430, may not be
credited with earnings in excess of the assumed interest rate until:
(a)
The reserve account established under subsection (1) of this section no longer
has a deficit;
(b)
The reserve account established under subsection (1) of this section is fully
funded with amounts determined by the board, after consultation with the
actuary employed by the board, to be necessary to ensure a zero balance in the
account when all members who established membership in the system before
January 1, 1996, as described in ORS 238.430, have retired; and
(c)
The reserve account established under subsection (1) of this section has been
fully funded as described in paragraph (b) of this subsection in each of the
three immediately preceding calendar years. [Formerly 237.277; 2001 c.945 §4;
2003 c.3 §1; 2003 c.67 §5; 2003 c.625 §10; 2011 c.722 §13]
238.258 [2003
c.67 §8; 2003 c.625 §12; repealed by 2011 c.722 §15]
238.260 Variable Annuity Account; rules.
(1) The purpose of this section is to establish a well balanced, broadly
diversified investment program for certain contributions and portions of the
member accounts so as to provide retirement benefits for members of the system
that will fluctuate as the value and earnings of the investments vary in
relation to changes in the general economy. It is anticipated that investment
of those contributions and portions of the member accounts in equities will
result in the accumulation of larger deposit reserves for those members during
their working years, tend to preserve the purchasing power of those reserves
and the retirement benefits provided thereby and afford better protection in
periods of economic inflation.
(2)
There is established in the Public Employees Retirement Fund an account,
separate and distinct from the General Fund, to be known as the Variable
Annuity Account. Interest earned by the account shall be credited to the
account. The account is part of the Public Employees Retirement System and is
not a separate defined contribution plan or account for the purposes of the
Internal Revenue Code.
(3)(a)
A member who is making contributions to the fund may elect at any time to have
25, 50 or 75 percent of contributions by the member to the fund on and after
the effective date of the election paid into the Variable Annuity Account,
credited to a variable account, and reserved for the purchase of a variable
annuity. A member who has elected to have a percentage of contributions so
paid, credited and reserved may elect at any time thereafter to have an
additional 25 or 50 percent of contributions by the member, but not to exceed a
maximum of 75 percent, so paid, credited and reserved. An election shall be in
writing on a form furnished by the board and be filed with the board. An
election shall be effective on January 1 following the filing thereof.
(b)
Notwithstanding any other provision of this section, a member may not
contribute to the Variable Annuity Account after December 31, 2003.
(4)
A member who has elected to have contributions paid into the Variable Annuity
Account under subsection (3) of this section may thereafter cause the
contributions to cease being paid into the member’s variable account by filing
a request in writing on a form furnished by the board and filed with the board.
The contributions shall cease being paid into the member’s variable account
after December 31 following the filing of the request. Contributions paid into
the member’s variable account before the effective date of the request for
cessation shall remain in the member’s variable account.
(5)(a)
An employee who is a member of the system on January 1, 1968, and who
thereafter made contributions to the Variable Annuity Account, may elect at any
time to have an amount equal to 10 percent per year, for not more than five
years, of the balance of the regular account of the member in the fund on the
effective date of an election filed under subsection (3) of this section,
transferred from the regular account of the member to the Variable Annuity
Account, credited to the member’s variable account, and reserved for the
purchase of a variable annuity. An election shall be in writing on a form
furnished by the board and be filed with the board. An election is final and
irrevocable upon the filing thereof. The first transfer pursuant to an election
shall be made on July 1 following the filing of the election, but may be made,
in the discretion of the board, on an earlier date.
(b)
If the transfers elected by a member under this subsection have not been
completed at the time of retirement, a transfer equal to one annual transfer
shall be made pursuant to an election by the member made and filed as provided
in this subsection.
(c)
No transfer shall be made under this subsection after the first payment of the
service retirement allowance of the member becomes normally due.
(d)
Notwithstanding paragraphs (a) to (c) of this subsection, a member may not
elect to transfer funds under this subsection after December 31, 2003.
(6)
Moneys in the Variable Annuity Account may be invested in investments
authorized by law for investment of moneys in the Public Employees Retirement
Fund; but, notwithstanding any other general or specific law, moneys in the
account shall be invested primarily in equities, including common stock,
securities convertible into common stock, real property and other recognized
forms of equities, whether or not subject to indebtedness. Not more than five
percent of the amortized value of all the investments of the Variable Annuity
Account and of moneys in the account immediately available for investment may
be invested in the obligations of or equities in a single, primary obligor or
issuer. A pro rata share of the administrative expenses of the system shall be
paid from interest earned by the Variable Annuity Account.
(7)(a)
Except as provided in subsection (8) of this section, the policy-making
investment authority for the Public Employees Retirement Fund shall enter into
contracts with one or more persons whom the authority determines to be
qualified, whereby the persons undertake to invest and reinvest moneys in the
Variable Annuity Account available for investment and acquire, retain, manage
and dispose of investments of the account in accordance with subsections (1)
and (6) of this section and to the extent provided in the contracts.
(b)
Performance of functions under contracts so entered into shall be paid for out
of the gross interest or other income of the investments with respect to which
the functions are performed, and the net interest or other income of the
investments after that payment shall be considered income of the Variable
Annuity Account.
(c)
The policy-making investment authority may require a person contracted with to
give to the state a fidelity bond in a penal sum as may be fixed by law or, if
not so fixed, as may be fixed by the authority, with corporate surety
authorized to do business in this state.
(d)
Contracts so entered into and functions performed thereunder
are not subject to the State Personnel Relations Law or ORS 279A.050 (2) and
279A.140.
(e)
A person contracted with shall report to the policy-making investment authority
as often as the authority may require, but at least annually, the earnings of
the moneys invested during the period covered by the report, the capital gains
and losses of the Variable Annuity Account during the period, the changes in
the market value of the investments of the account during the period and such
other information as the authority may require.
(8)
The policy-making investment authority for the Public Employees Retirement
Fund, for and on behalf of the Public Employees Retirement System and Public
Employees Retirement Board, may enter into group annuity contracts with one or
more insurance companies authorized to do business in this state. In lieu of
any investment of moneys in the Variable Annuity Account as provided in
subsections (6) and (7) of this section, the authority may pay, from time to
time under contracts so entered into, any moneys in that account available for
investment purposes. Contracts so entered into:
(a)
May provide that annuities purchased thereunder be
payable in variable dollar amounts, but if that provision is made, provision
also shall be made that a member of the system who has a variable account, upon
retiring from service and before the first payment of retirement allowance
becomes normally due, may elect an option to have the annuities payable to the
member or the beneficiary of the member in fixed or variable dollar amounts or
both.
(b)
May provide that payment of annuities purchased thereunder
may be made by the insurance company directly to persons entitled thereto or to
the Variable Annuity Account for payment therefrom to
those persons.
(c)
Are not subject to ORS 279A.050 (2) and 279A.140.
(9)
Upon retiring from service but within 60 days after the date of the first
benefit payment, a member of the system who has a variable account may elect to
transfer the balance in the variable account to the regular account of the
member, and by that transfer the annuity shall be based on the amount in the
regular account of the member as otherwise provided in this chapter and the
member shall not receive a variable annuity as provided in this section.
(10)
When an annuity is payable under this chapter to a member of the system who has
a variable account, or is payable to a beneficiary of that person, the portion
of the annuity payable from the Variable Annuity Account shall be
proportionately increased or decreased for a calendar year when, as of October
31 of the preceding calendar year, the balance of the member’s variable account
exceeds or is less than the current value of the annuity, determined in
accordance with the rate of interest and approved actuarial tables then in
effect.
(11)
Notwithstanding subsection (10) of this section, the board, in the event of
extraordinary fluctuation in the market value of investments of the Variable
Annuity Account and in order to avoid substantial inequities, may increase or
decrease the portions of annuities paid from the account for periods less than
a calendar year and determined as of dates other than October 31.
(12)
Notwithstanding any other provision of this chapter, the retirement allowance
to which a member of the system who has a variable account or who made
contributions on salary in excess of $4,800 per year during the period January
1, 1956, through December 31, 1967, and whose effective date of retirement is
January 1, 1982, or later, is otherwise entitled under this chapter shall be
subject to the following adjustment:
(a)
The board shall determine the difference between the member account of the
member and what the member account of the member would have been had the member
not participated in the variable annuity program on or after January 1, 1982,
plus the contributions made on salary in excess of $4,800 per year during the
period January 1, 1956, through December 31, 1967.
(b)
If the member account of the member due to participation in the variable
annuity program or due to the contributions made on salary in excess of $4,800
per year is greater, the monthly retirement allowance of the member shall be
increased by the value of the difference, using the annuity tables applicable
to the plan selected by the member.
(c)
If the member account of the member due to participation in the variable
annuity program or due to the contributions made on salary in excess of $4,800
per year is lesser, the monthly retirement allowance of the member shall be
decreased by the value of the difference, using the annuity tables applicable
to the plan selected by the member.
(13)
Except as otherwise specifically provided in this section, the rights and
benefits under this chapter of an active or retired member of the system or of
a beneficiary of the member are not affected by this section and the provisions
of this chapter applicable to regular accounts of active and retired members of
the system in the fund are also applicable to variable accounts.
(14)(a)
In addition to the transfer provided for in subsection (9) of this section, a
member of the system who has a variable account may at any time prior to
retirement elect to transfer the balance in that account to the regular account
of the member in the fund if:
(A)
The member is other than a police officer or firefighter and has attained the
age of 50;
(B)
The member is a police officer or firefighter and has attained the age of 45;
or
(C)
The member has a combined total of 25 years or more of creditable service in
the system and prior service credit.
(b)
An election under paragraph (a) of this subsection is irrevocable, and a member
who has so elected may not thereafter elect to make contributions to the
Variable Annuity Account under subsection (3) of this section.
(c)
An election under paragraph (a) of this subsection shall be in writing and
shall be filed with the board. The board by rule shall prescribe a form for the
purposes of application. An election so made shall be effective on January 1 of
the year following the year in which the election is made. If the member
account of the member as of the effective date of the election is less than
what the member account of the member would have been had the member not
participated in the variable annuity program, not including the contributions
made on salary in excess of $4,800 per year during the period January 1, 1956,
through December 31, 1967, the monthly retirement allowance of a member
calculated under ORS 238.300 (2)(a) or (b)(B) shall be decreased by the value
of the difference.
(d)
As of the effective date of an election under this subsection, the board shall
credit all earnings to the member’s variable account based on the actual
calendar year variable earnings rate for the year in which the election is
made. This account balance shall:
(A)
Be used by the board in determining whether the member’s election is effective
under paragraph (c) of this subsection; and
(B)
Be the account balance credited by the board to the regular account of the
member in the fund if the election is determined to be effective.
(e)
Subject to paragraph (c) of this subsection, the annuity of a member who makes
an effective transfer under this subsection shall be based on the amount in the
regular account of the member in the fund as otherwise provided in this
chapter, and the member shall not receive a variable annuity as provided in
this section. [Formerly 237.197; 2001 c.945 §47; 2003 c.67 §3; 2003 c.625 §36;
2003 c.794 §218; 2005 c.808 §§2,3]
Note:
Section 19, chapter 625, Oregon Laws 2003, provides:
Sec. 19. The
amendments to ORS 238.260 by section 3, chapter 67, Oregon Laws 2003, do not
apply to any judge member who is a judge member of the system on June 30, 2003.
A person who is a judge member of the system on June 30, 2003, may continue to
make contributions to the Variable Annuity Account for services as a judge
member performed on or after January 1, 2004. [2003 c.625 §19]
(Withdrawal or Transfer of Member
Account)
238.265 Withdrawal of member account.
(1) Except as otherwise provided in this section, a member of the Public
Employees Retirement System may withdraw from the Public Employees Retirement
Fund the amount credited to the member account, if any, for the member if:
(a)
The member is separated from all service with participating public employers;
(b)
The member is separated from all service with employers who are treated as part
of a participating public employer’s controlled group under the federal laws
and rules governing the status of the system and the fund as a qualified
governmental retirement plan and trust;
(c)
The member has not attained earliest service retirement age; and
(d)
The separation from service is not by reason of death or disability.
(2)
If a member wishes to withdraw the member account, if any, of the member under
this section, the member must transmit to the Public Employees Retirement Board
a withdrawal request. The board shall deny the withdrawal, or shall take all
reasonable steps to recover withdrawn amounts, if:
(a)
The board determines that the separation is not a bona fide separation; or
(b)
The member fails to remain absent from the service of all employers described
in subsection (1) of this section for at least one calendar month following the
month in which the member separates from service.
(3)
If a member has contributed to the fund in each of five calendar years and has
separated from all service in the manner described in subsection (1) of this
section before reaching earliest service retirement age, the member may elect
to withdraw the member account of the member under this section at any time
before reaching earliest service retirement age. If the inactive member does
not make an election to withdraw under this section, the member shall be paid
the benefits or retirement allowances described in ORS 238.425.
(4)
A member who is vested in the pension program established under ORS chapter
238A and who is eligible to withdraw from the pension program under ORS
238A.120 may withdraw a member account under this section only if the member
also withdraws from the pension program. A member who has an individual account
or accounts in the individual account program established under ORS chapter
238A may withdraw a member account under this section only if the member also
withdraws all individual accounts pursuant to ORS 238A.375. A member who has an
account established under ORS 238.440 may withdraw a member account under this
section only if the member also withdraws the account established under ORS
238.440.
(5)
Withdrawal of a member account under this section cancels all membership rights
in the system, including the right to claim credit for any employment before
withdrawal. [Formerly 237.111 (2); 1999 c.317 §5; 2001 c.945 §48; 2003 c.67 §11;
2007 c.52 §1]
238.270 Transfer of member account to
other public employee retirement system. Whenever a
person who is past the earliest service retirement age separates from the
service of a public employer participating in the Public Employees Retirement
System and who thereafter, but before applying to the Public Employees
Retirement Board for retirement benefits, is employed in a position that
entitles the person to membership in another public employees retirement
system, either within or without this state, the board, upon the written
request of the person and if in conformance with the provisions of law
governing the other public employees retirement system, may transfer the member
account, if any, of the person in the fund to the other public employees
retirement system. Such transfer shall cancel the right of the person to claim
any future benefits under the Public Employees Retirement System for service
rendered to a public employer in this state prior to the date of the transfer. [Formerly
237.115; 2001 c.945 §49; 2003 c.67 §23]
RETIREMENT
238.280 Eligibility for retirement.
(1) Except as otherwise provided in this section, a member of the Public Employees
Retirement System who attains the age of 55 shall be retired upon written
application by the member to the Public Employees Retirement Board on a reduced
service retirement allowance, that is the actuarial equivalent of the service
retirement allowance provided for in ORS 238.300 at the normal retirement age.
(2)
A member of the system who has 25 years or more of creditable service in the
system as a telecommunicator, as defined in ORS
181.610, shall be retired upon written application by the member to the board
on a reduced service retirement allowance that is the actuarial equivalent of
the service retirement allowance provided for in ORS 238.300 at the normal
retirement age. A member who retires under this subsection before attaining the
age of 55 shall not receive a cost-of-living adjustment under ORS 238.360 until
the member attains the age of 55.
(3)
A police officer or firefighter who is a member of the system and attains the
age of 50 shall be retired upon written application by the member to the board
on a reduced service retirement allowance, which shall be the actuarial
equivalent of the service retirement allowance provided for in ORS 238.300 at
the normal retirement age. The provisions of this subsection apply to an
inactive member of the system who was employed as a police officer or
firefighter in a qualifying position immediately before becoming inactive.
(4)
Notwithstanding ORS 238.215 (2)(b)(B):
(a)
A police officer or firefighter who is a member of the system, attains the age
of 50 and has a combined total of 25 years or more of creditable service in the
system and prior service credit shall be retired upon written application by
the member to the board on a service retirement allowance including, without
actuarial reduction, the same current service pension and prior service pension
provided for in ORS 238.300 at the normal retirement age. The provisions of
this paragraph apply to an inactive member of the system who was employed as a
police officer or firefighter in a qualifying position immediately before
becoming inactive.
(b)
An employee who is a member of the system, has a combined total of 30 years or
more of creditable service in the system and prior service credit, and is not
eligible to retire under paragraph (a) of this subsection shall be retired upon
written application by the member to the board on a service retirement
allowance including, without actuarial reduction, the same current service
pension and prior service pension provided for in ORS 238.300 at the normal retirement
age. [Formerly 237.121; 2001 c.945 §78; 2005 c.808 §§37,38; 2007 c.404 §1]
238.285 Verification of retirement data.
(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 notify all of the member’s participating public employers of the
request. In a manner specified by rules of the board, the board shall allow those
employers a reasonable time to confirm the records relating to the member that
were provided to the board before the request was made. The board shall
thereafter provide a verification to the member that includes the following
data, as reflected in the records of the Public Employees Retirement System:
(a)
The service information reported by the member’s employers and the number of
years and months of creditable service or retirement credit derived from that
information, determined as of a date specified in the verification.
(b)
The salary data reported by the member’s employers for each calendar year, and
the final average salary for the member derived from that data.
(c)
If applicable, 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 total amount of unused sick leave accumulated by the member
as of a date specified 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 based on its
determination. The board shall provide to the member a copy of the decision and
a written explanation of any applicable statutes and rules. A member may seek
judicial review of the decision as provided in ORS 183.484 and rules of the
board.
(3)
Except as provided in this section, when a member who receives a verification
under this section retires for service, the creditable service, retirement
credit, final average salary, member account balances and accumulated unused
sick leave used in calculating the member’s retirement allowance or pension may
not be less than the amounts provided in the verification, subject to
adjustments for:
(a)
Creditable service or retirement credit accrued by the member after the date
specified in the verification.
(b)
Salary attributable to periods of employment after the date specified in the
verification.
(c)
Earnings and losses credited to the member’s 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.
(d)
Sick leave used and accrued after the date specified in the verification.
(4)
The board may use creditable service, retirement credit, final average salary,
member account balances or accumulated unused sick leave in calculating a
member’s service retirement allowance that is less than the amounts provided in
a verification received under this section if the member knew that the amounts
were not accurate at the time the verification was provided and the member did
not dispute the accuracy of the amounts as provided in subsection (2) of this
section.
(5)
A participating public employer may not modify information provided to the board
relating to a member’s creditable service, retirement credit, final average
salary, employee contributions or accumulated unused sick leave after the board
provides the member with a verification under this section that is based on
that information except in response to the board’s request for the purpose of a
determination under subsection (2) or (4) of this section.
(6)(a)
Subject to paragraph (b) of this subsection, erroneous payments or overpayments
paid to or on account of a member based on a verification provided under this
section may not be recovered under ORS 238.715, but may be charged to the
reserve account established under ORS 238.670 (1), or charged as an
administrative expense under ORS 238.610.
(b)
The board shall recover erroneous payments or overpayments paid to or on
account of a member based on a verification provided under this section if the
board determines that the recovery is required to maintain the status of the
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.
(7)
A member may dispute the accuracy of data in a verification only as provided
under this section. A member may not dispute the accuracy of data in a
verification in the manner provided by ORS 238.450.
(8)
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. [2010 c.1 §3]
Note:
Section 4, chapter 1, Oregon Laws 2010, provides:
Sec. 4. (1)
Except as provided in this section, section 3 of this 2009 Act [238.285]
becomes operative on July 1, 2011.
(2)
The requirement that the Public Employees Retirement Board provide verification
of the amount of a member’s accumulated unused sick leave under section 3
(1)(d) of this 2009 Act first applies to requests for verifications of
retirement data received by the board on or after July 1, 2012. [2010 c.1 §4]
BENEFITS