Chapter 238 — Public
Employees Retirement System
ORS sections in this chapter were
amended or repealed by the Legislative Assembly during its 2012 regular
session. See the table of ORS sections amended or repealed during the 2012
regular session: 2012 A&R Tables
New sections of law were adopted by the
Legislative Assembly during its 2012 regular session and are likely to be
compiled in this ORS chapter. See
sections in the following 2012 Oregon Laws chapters: 2012
Session Laws 0054
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
(Service Retirement Allowance)
238.300 Service retirement allowance.
Upon retiring from service at normal retirement age or thereafter, a member of
the system shall receive a service retirement allowance which shall consist of
the following annuity and pensions:
(1)
A refund annuity which shall be the actuarial equivalent of accumulated
contributions, if any, by the member and interest thereon credited at the time
of retirement, which annuity shall provide an allowance payable during the life
of the member and at death a lump sum equal in amount to the difference between
accumulated contributions at the time of retirement and the sum of the annuity
payments actually made to the member during life shall be paid to such person,
if any, as the member nominates by written designation duly acknowledged and
filed with the board or shall otherwise be paid according to the provisions of
this chapter for disposal of an amount credited to the member account of a
member at the time of death in the event the member designates no beneficiary
to receive the amount or no such beneficiary is able to receive the amount. If
death of the member occurs before the first payment is due, the member account
of the member shall be treated as though death had occurred before retirement.
(2)(a)
A life pension (nonrefund) for current service provided by the contributions of
employers, which pension, subject to paragraph (b) of this subsection, shall be
an amount which, when added to the sum of the annuity, if any, under subsection
(1) of this section and the annuity, if any, provided on the same basis and
payable from the Variable Annuity Account, both annuities considered on a
refund basis, results in a total of:
(A)
For service as a police officer or firefighter, two percent of final average
salary multiplied by the number of years of membership in the system as a
police officer or firefighter before the effective date of retirement.
(B)
For service as other than a police officer or firefighter, including service as
a member of the Legislative Assembly, 1.67 percent of final average salary
multiplied by the number of years of membership in the system as other than a
police officer or firefighter before the effective date of retirement.
(b)
A pension under this subsection shall be at least:
(A)
For a member who first establishes membership in the system before July 1,
2003, the actuarial equivalent of the annuity provided by the accumulated
contributions of the member. A person establishes membership in the system
before July 1, 2003, for the purposes of this subparagraph if:
(i)
The person is a member of the system, or a judge member of the system, on the
day immediately before July 1, 2003; or
(ii)
The person performed any period of service for a participating public employer
before July 1, 2003, that is credited to the six-month period of employment
required of an employee under ORS 238.015 before an employee may become a
member of the system.
(B)
For a member who made contributions before August 21, 1981, the equivalent of a
pension computed pursuant to this subsection as it existed immediately before
that date.
(c)
As used in this subsection, “number of years of membership” means the number of
full years of creditable service plus any remaining fraction of a year of
creditable service. Except as otherwise provided in this paragraph, in
determining a remaining fraction a full month shall be considered as
one-twelfth of a year and a major fraction of a month shall be considered as a
full month. Membership of a school district employee, an employee of an
institution of higher education engaged in teaching or other school activity or
an employee of the Department of Human Services, the Oregon Youth Authority,
the Department of Corrections or the State Board of Education engaged in
teaching or other school activity at an institution supervised by the
authority, board or department, for all portions of a school year in a calendar
year in which the district school, institution of higher education or school
activity at an institution so supervised in which the member is employed is
normally in session shall be considered as a full one-half year of membership.
The number of years of membership of a member who received a refund of
contributions as provided in ORS 237.976 (2) is limited to the number of years
after the day before the date on which the refund was received. The number of
years of membership of a member who is separated, for any reason other than
death or disability, from all service entitling the member to membership in the
system, who withdraws the amount credited to the member account of the member
in the fund during absence from such service and who thereafter reenters the
service of an employer participating in the system but does not repay the
amount so withdrawn as provided in this chapter, is limited to the number of
years after the day before the date of so reentering.
(3)
An additional life pension (nonrefund) for prior service credit, including
military service, credited to the member at the time of first becoming a member
of the system, as elsewhere provided in this chapter, which pension shall be
provided by the contributions of the employer. [Formerly 237.147; 1997 c.249 §67;
2001 c.900 §49; 2001 c.945 §50; 2003 c.67 §4; 2003 c.625 §22; 2003 c.733 §46e;
2011 c.637 §73]
Note:
Section 46f, chapter 733, Oregon Laws 2003, provides:
Sec. 46f.
The amendments to ORS 238.300 by section 46e of this 2003 Act apply to periods
of service as a member of the Legislative Assembly served by reason of
appointment or election to the Legislative Assembly on or after the effective
date of this 2003 Act [August 29, 2003], including periods of service as a
member of the Legislative Assembly served by reason of reelection to the
Legislative Assembly after the effective date of this 2003 Act. [2003 c.733 §46f]
238.305 Optional service retirement
allowance calculations. (1) Not later than 60 days after
the first benefit payment is made to a retired member of the Public Employees
Retirement System, the member may elect to convert the allowance described by
ORS 238.300 as payable after retirement into a service retirement annuity of
equivalent actuarial value of one of the optional forms named below. The
election of Option 2, 2A, 3 or 3A shall be effective immediately upon the
member’s retirement.
Option
1. (a) A life annuity (nonrefund) payable during the member’s life only, which
shall be the actuarial equivalent of accumulated contributions by the member
and interest thereon credited at the time of retirement (if death occurs before
the first payment is due, the member account shall be treated as though death
had occurred before retirement); (b) a life pension (nonrefund) provided by the
contributions of employers as provided in ORS 238.300 (2); (c) an additional
nonrefund pension for prior service credit, including military service,
credited to the member at the time of first becoming a member of the system, as
elsewhere provided in this chapter, which pension shall be provided by the
contributions of the employer; or
Option
2. A reduced service retirement allowance payable during the member’s life,
with the provision that it continue after death for the life of the beneficiary
the member nominates by written designation duly acknowledged and filed with
the Public Employees Retirement Board at the time of election, should the
beneficiary survive the member; or
Option
2A. A reduced service retirement allowance payable during the member’s life
which, unless modified under subsection (6) of this section, continues after
death for the life of the beneficiary the member nominates by written
designation duly acknowledged and filed with the board at the time of election,
should the beneficiary survive the member; or
Option
3. A reduced service retirement allowance payable during the member’s life,
with the provision that it continue after death at one-half the rate paid to
the member and be paid for the life of the beneficiary the member nominates by
written designation duly acknowledged and filed with the board at the time of
election, should the beneficiary survive the member; or
Option
3A. A reduced service retirement allowance payable during the member’s life
which, unless modified under subsection (6) of this section, continues after
death at one-half the rate paid to the member and is paid for the life of the
beneficiary the member nominates by written designation duly acknowledged and
filed with the board at the time of election, should the beneficiary survive
the member; or
Option
4. A reduced service retirement allowance payable during the member’s life,
with the provisions that if the member dies before a total of 180 monthly
payments is made, the remainder of the 180 monthly payments shall be paid
monthly to the beneficiary the member nominates by written designation duly
acknowledged and filed with the board at any time before the member’s death;
and that if the member designates no beneficiary to receive the monthly
payments or no such beneficiary is able to receive the monthly payments, an
amount equal to the actuarial value, on the date of the member’s death, of the
total of the monthly payments not made to the member shall be paid according to
ORS 238.390 for disposal of an amount credited to the member account of a
member at the time of death; and that if the beneficiary receiving monthly
payments dies before the total number of monthly payments to which the
beneficiary is entitled is made, an amount equal to the actuarial value, on the
date of the beneficiary’s death, of the total of the monthly payments not made
to the member and beneficiary shall be paid according to ORS 238.390 for
disposal of an amount credited to the member account of a member at the time of
death and as if the beneficiary had been a member.
(2)
Not later than 60 days after the first benefit payment is made to a retired
member of the system, the member may elect, in lieu of the allowance described
by ORS 238.300 as payable after retirement, a service retirement benefit
consisting of:
(a)
A refund of accumulated contributions by the member and interest thereon
credited at the time of refund; and
(b)
A life pension (nonrefund) provided by the contributions of employers as
provided in ORS 237.147 (2) (1979 Replacement Part), and an additional life
pension (nonrefund) for prior service credit as provided in ORS 238.300 (3). At
the same time as making the election under this subsection, the member may
elect to convert the pensions described by this paragraph into a service
retirement annuity of equivalent actuarial value of one of the optional forms
named as Option 2, 2A, 3 or 3A under subsection (1) of this section.
(3)
Not later than 60 days after the first benefit payment is made to a retired
member of the system, the member may elect in lieu of the allowance described
by ORS 238.300 a refund service retirement benefit consisting of:
(a)
A refund of accumulated contributions by the member and interest thereon
credited at the time of retirement;
(b)
An amount that matches the amount of accumulated contributions by the member
and interest thereon, provided by the contributions of employers; and
(c)
Interest on the amounts described in paragraphs (a) and (b) of this subsection
from the effective date of retirement until the amounts are paid.
(4)(a)
If the member elects to receive the service retirement benefit described in
subsection (2) or (3) of this section, the member shall elect at the same time
to receive the refund described in subsection (2)(a) or (3) of this section in
one lump sum payment or in more than one but not more than five installment
payments. If the member elects installment payments:
(A)
The amount to be paid by employer contributions under subsection (3)(b) of this
section shall be transferred to the individual account of the member in the
Public Employees Retirement Fund as of the effective date of retirement.
(B)
The installment payments shall be paid once each year for the number of
consecutive years equal to the number of installment payments elected.
(C)
The amount of each installment payment shall be designated by the member at the
time of making the election, but the last installment payment shall be the
unrefunded balance remaining in the member account of the member in the fund.
(D)
The member account of the member in the fund shall be maintained until the last
installment payment is paid. The board shall establish procedures for computing
and crediting interest annually on the unrefunded balance of the member
account.
(E)
A yearly installment payment shall be paid on the anniversary of the date of
the first installment payment.
(F)
The member is considered to have elected to transfer any balance in the
variable account of the member to the regular account of the member.
(G)
If the member dies before payment of all installment payments, the unrefunded
balance in the member account of the member plus interest to date of
disbursement is payable as provided in ORS 238.390 (4).
(b)
If a member elects to receive the refund service retirement benefit described
in subsection (3) of this section, and does not elect to receive those amounts
in installments under the provisions of this subsection, all rights of the
member in the system shall terminate upon the payment of the amounts provided
for in subsection (3) of this section, except as provided in paragraph (c) of
this subsection. If a member elects to receive the refund service retirement
benefit described in subsection (3) of this section, and also elects to receive
those amounts in installments under the provisions of this subsection, all
rights of the member in the system shall terminate upon the making of the first
payment, except as provided in paragraph (c) of this subsection.
(c)
A member who elects to receive the refund service retirement benefit described
in subsection (3) of this section, and any eligible spouse or dependent of the
member, shall continue to be eligible for insurance under ORS 238.410, and for
any premium payments the member may be entitled to under ORS 238.415 and
238.420.
(5)
The designation of a beneficiary, the election of an option or any other
election or designation under subsection (1), (2), (3) or (4) of this section
may be changed by the member within 60 days after the date of the first benefit
payment, except that the designation of a beneficiary under Option 4 may be
changed by the member at any time before the member’s death.
(6)
If a retired member has elected to receive a service retirement allowance under
Option 2A or Option 3A as provided in subsection (1) of this section, and if
the beneficiary under that option dies after the expiration of the time within
which the member could change the election of an option or if the beneficiary
is the spouse of the member and the marriage relationship is terminated as
provided by law after the expiration of the time within which the member could
change the election of an option, the member may elect to receive, in lieu of
the optional form of allowance previously elected, the allowance that the
member would have received on the effective date of retirement under Option 1
as provided in subsection (1) of this section and adjusted by the actual amount
of any cost-of-living or other post-retirement adjustments made to the original
allowance since the effective date of retirement. Notice of election under this
subsection must be in a form approved by the board. If an election is made
under this subsection, the Option 1 payment amount is applicable to the first
full month after the death of the beneficiary, or the first full month after
entry of the judgment of divorce, and payable the first day of the month
thereafter. If the increased amount is not paid in any month in which the
increased amount is due, the board shall make a lump sum payment to the retired
member that is equal to the difference between the amount paid to the member
for that month and the amount that should have been paid under the provisions
of this subsection.
(7)
Notwithstanding any other provision of this section, any member of the system who
retired before October 3, 1989, and elected to receive a service retirement
allowance under either Option 2 or 3 as provided in subsection (1) of this
section shall be entitled to receive a service retirement allowance equal to
that which the member would have received on the effective date of retirement
under Option 1 as provided in subsection (1) of this section and adjusted by
the actual amount of any cost-of-living or other post-retirement adjustments
made to the original allowance since the effective date of retirement if:
(a)
The member has attained 80 years of age;
(b)
The person designated by the member as the member’s beneficiary has predeceased
the member; and
(c)
The member gives written notice to the board of the death of the member’s beneficiary.
(8)
Notwithstanding any other provision of this section, any member of the system
who retired before October 3, 1989, who elected to receive a refund of
accumulated employee contributions and a life pension or pensions under
subsection (2) of this section, and who elected to convert the life pension or
pensions provided for in subsection (2) of this section into a service
retirement annuity under Option 2 or 3 under subsection (1) of this section,
shall be entitled to receive a life pension or pensions equal to that which the
member would have received on the effective date of retirement under subsection
(2) of this section and adjusted by the actual amount of any cost-of-living or
other post-retirement adjustments made to the original life pension or pensions
since the effective date of retirement if:
(a)
The member has attained 80 years of age;
(b)
The person designated by the member as the member’s beneficiary has predeceased
the member; and
(c)
The member gives written notice to the board of the death of the member’s
beneficiary.
(9)
The service retirement allowance provided in subsection (7) or (8) of this
section shall be applicable to the first full month after the death of the
member’s beneficiary, or the first full month after the member attains 80 years
of age, whichever is later.
(10)
The board may deny an election to convert a service retirement allowance under
this section, a change of beneficiary under this section or a change in benefit
options under this section if that denial 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. [Formerly 237.155; 1997 c.180 §1;
1999 c.317 §10; 2001 c.945 §§8,68; 2003 c.625 §3; 2005 c.138 §1]
Note:
Section 3, chapter 180, Oregon Laws 1997, provides:
Sec. 3. (1) If
on October 4, 1997, a retired member is eligible for the service retirement
allowance provided by ORS 238.305 (7) or (8) but was not eligible under ORS
238.305 (1995 Edition):
(a)
The member may give written notice of the member’s eligibility to the Public
Employees Retirement Board at any time after October 4, 1997; and
(b)
The service retirement allowance of the retired member under ORS 238.305 (7) or
(8) is first applicable to the first full month after the death of the member’s
beneficiary, or the first full month after the member attained 80 years of age,
whichever is later.
(2)
As soon as possible after October 4, 1997, the board shall calculate and mail a
check for the amount of any retroactive payment required under subsection (1)
of this section. The retroactive payment shall represent the difference between
the total of all monthly amounts paid to the member before the first
recalculated monthly payment is made under subsection (1) of this section, and
the total of all monthly amounts that would have been paid to the member if ORS
238.305, as amended by section 1, chapter 180, Oregon Laws 1997, had been in
effect on and after October 3, 1989. In no event shall the increased service
allowance under ORS 238.305 (7), or the increased life pension or pensions
under ORS 238.305 (8), be applicable to any monthly payment that was made
before the first full month following October 3, 1989, and no retroactive
payment shall be made under this section for any monthly payment that was made
before the first full month following October 3, 1989. [1997 c.180 §3; 2001
c.945 §9]
238.310 Minimum service retirement
allowance. (1) Notwithstanding any other provision
of this chapter, the service retirement allowance of a member who has 15 or
more years of creditable service shall be not less than $100 a month, computed
under the nonrefund plan:
(a)
For a member who retires and begins receiving a service retirement allowance
before or on reaching the age of 65 years, on the basis of retirement at the
age of 65 years.
(b)
For a member who retires and begins receiving a service retirement allowance
after reaching the age of 65 years, on the basis of age reached at retirement.
(2)
Any member who receives a service retirement allowance calculated under the
provisions of this section shall receive the retirement benefit in the form of
a lump sum amount as provided in ORS 238.315. [Formerly 237.200; 2001 c.945 §85]
238.315 Lump sum payment in lieu of small
allowance. A member of the system who has
separated from the service of all participating employers, who retires for
service and whose total service retirement allowance on the effective date of
retirement, as computed by the board in accordance with the nonrefund plan, is
less than $200 per month, shall receive, in lieu of any and all retirement
allowance or other benefits under the system, a retirement benefit in the form
of a lump sum amount equal to the actuarial value, on the effective date of
retirement, of the retirement allowance computed by the board in accordance
with the nonrefund plan. A member who receives a retirement benefit as provided
in this section is eligible to participate in insurance coverage under ORS
238.410, and the board shall determine the manner in which the cost of that
coverage payable by the member shall be paid. [Formerly 237.151; 2001 c.945 §84]
(Disability Retirement Allowance)
238.320 Disability retirement allowance.
(1) Whenever an employee who is a member of the system is found, after being
examined by one or more physicians selected by the board, to be mentally or
physically incapacitated for an extended duration, as determined by medical
examination, and thereby unable to perform any work for which qualified, by
injury or disease sustained while in actual performance of duty and not
intentionally self-inflicted, the member shall receive a disability retirement
allowance consisting of:
(a)
A disability retirement refund annuity based on the contributions, if any,
credited to the member account of the member.
(b)
A current service pension provided by the contributions of employers equal to:
(A)
For a police officer or firefighter, the pension to which the member would have
been entitled if the member had worked continuously until attaining the age of
55, or if the member has attained the age of 55, the pension which the member
would receive were the member to retire for service, as provided in this
chapter.
(B)
For a member other than a police officer or firefighter, the pension to which
the member would have been entitled if the member had worked continuously until
attaining the age of 58, or if the member has attained the age of 58, the
pension which the member would receive were the member to retire for service,
as provided in this chapter.
(c)
The same prior service pension the member would have received had the member
worked until normal retirement age.
(2)
As used in subsection (1) of this section, “injury” means bodily injury causing
the disability directly and independently of all other causes and effected
solely through accidental means.
(3)
Whenever an employee who is a member of the system and who has been an employee
for 10 years or more of an employer participating in the system is found, after
being examined by one or more physicians selected by the board, to be mentally
or physically incapacitated for an extended duration, as determined by medical
examination, and thereby unable to perform any work for which qualified, from
cause other than injury or disease sustained while in actual performance of
duty or intentionally self-inflicted, the member shall receive a disability
retirement allowance as provided in subsection (1) of this section.
(4)
Payments under a disability retirement allowance provided for in subsection (1)
or (3) of this section for the first 90-day period of incapacity shall be
withheld until such 90-day period has elapsed.
(5)
An inactive member is not eligible for disability benefits referred to in
subsection (1) or (3) of this section unless the member applies for such
disability benefits within five calendar years after the date of separation
from service with a participating public employer if the disability is
continuous from such separation date or within six months after the date of
such separation from service if disability occurs after such separation date.
(6)
In computing years of employment for the purpose of subsection (3) of this section,
the following schedule shall be used: For employment before the employee
established membership in the Public Employees Retirement System, a member
shall be considered to have been employed for one year for each year of prior
service credit allowed, and for any minor fraction of a year of continuous
service as certified by the employer for which no prior service credit was
granted. After having established membership in the Public Employees Retirement
System a member shall be considered to have been employed one year for each
12-month period or major fraction thereof during which time the member received
compensation for employment which entitled the member to membership in the
system, as evidenced by payroll records. For the purpose of determining a member’s
eligibility for disability benefits, no leave of absence after a member ceases
to work for any participating employer shall be considered other than
accumulated sick leave not in excess of 90 days. The effective date of the
disability shall not in any event be determined by the board as prior to the
last day for which the disabled member performed services for a participating
employer. No benefits may be paid for any month in which the member received
salary or sick leave benefits from the participating employer.
(7)
For the purposes of subsections (1) and (3) of this section, a member of the
system shall be considered to be mentally or physically incapacitated for an
extended duration if the mental or physical incapacity can be expected to
result in death or has lasted or can be expected to last for a continuous
period of not less than 90 days. [Formerly 237.171; 2001 c.945 §51; 2003 c.67 §24]
238.325 Optional disability retirement
allowance calculations. (1) At any time after
establishing membership, but before the expiration of 90 days after the Public
Employees Retirement Board makes its finding that the employee is disabled, an
employee who is a member of the Public Employees Retirement System may elect to
convert the disability retirement allowance otherwise payable on the member
account of the member into a disability retirement annuity of equivalent
actuarial value, by selecting one of the optional forms named below. The
election of Option 2, 2A, 3 or 3A shall be effective immediately upon the
effective date of the member’s disability, and in the event of death within the
first 90-day period of incapacity, payment to the beneficiary of the member
shall be made in accordance with the option selected.
Option
1. (a) A life annuity (nonrefund) payable during the member’s life only, which
shall be the actuarial equivalent of the accumulated contributions and interest
thereon credited to the member at the time the member retires (if death occurs
before the first payment is due, the member account of the member shall be
treated as though death had occurred before retirement); (b) a life pension
(nonrefund) provided by the contributions of employers as provided in ORS
238.320 (1)(b); (c) an additional nonrefund pension for prior service credit,
including military service, credited to the member at the time the member first
becomes a member of the system, as elsewhere provided in this chapter, which
pension shall be provided by the contributions of the employer; or
Option
2. A reduced disability retirement allowance payable during the period of
incapacity, with the provision that after death, if death shall occur after the
effective date of the disability and during the period of incapacity, it shall
continue for the life of the beneficiary whom the member has designated in
writing duly acknowledged and filed with the board at the time of election,
should the beneficiary survive the member; or
Option
2A. A reduced disability retirement allowance payable during the period of
incapacity which, unless modified under subsection (3) of this section,
continues after death, if death shall occur after the effective date of the
disability and during the period of incapacity, for the life of the beneficiary
whom the member nominates by written designation duly acknowledged and filed
with the board at the time of election, should the beneficiary survive the
member; or
Option
3. A reduced disability retirement allowance payable during the period of
incapacity, with the provision that after death, if death shall occur after the
effective date of the disability and during the period of incapacity, such
allowance shall continue at one-half the rate paid to the member and be paid
for the life of the beneficiary whom the member has designated in writing duly
acknowledged and filed with the board at the time of election, should the
beneficiary survive the member; or
Option
3A. A reduced disability retirement allowance payable during the period of
incapacity which, unless modified under subsection (3) of this section, continues
after death, if death shall occur after the effective date of the disability
and during the period of incapacity, at one-half the rate paid to the member
and is paid for the life of the beneficiary whom the member nominates by
written designation duly acknowledged and filed with the board at the time of
election, should the beneficiary survive the member; or
Option
4. A reduced disability retirement allowance payable during the period of
incapacity, with the provisions that if the member dies during the period of
incapacity and before a total of 180 monthly payments is made, the remainder of
the 180 monthly payments shall be paid monthly to the beneficiary the member
nominates by written designation duly acknowledged and filed with the board at
any time before the member’s death; and that if the member designates no
beneficiary to receive the monthly payments or no such beneficiary is able to
receive the monthly payments, an amount equal to the actuarial value, on the
date of the member’s death, of the total of the monthly payments not made to
the member shall be paid according to ORS 238.390 for disposal of an amount
credited to the member account of a member at the time of death; and that if
the beneficiary receiving monthly payments dies before the total number of
monthly payments to which the beneficiary is entitled is made, an amount equal
to the actuarial value, on the date of the beneficiary’s death, of the total of
the monthly payments not made to the member and beneficiary shall be paid
according to ORS 238.390 for disposal of an amount credited to the member
account of a member at the time of death and as if the beneficiary had been a
member.
(2)
The beneficiary designated by a member to receive any benefit under this
section shall be the same as designated under ORS 238.390 (1). The designation
of a beneficiary or the election of an option may be changed by a member within
60 days after the date of the first benefit payment, except that the
designation of a beneficiary under Option 4 may be changed by the member at any
time before the member’s death.
(3)
If a retired member has elected to receive a disability retirement allowance
under Option 2A or Option 3A as provided in subsection (1) of this section, and
if the beneficiary under that option dies after the expiration of the time
within which the member could change the election of an option or if the
beneficiary is the spouse of the member and the marriage relationship is
terminated as provided by law after the expiration of the time within which the
member could change the election of an option, the member may elect to receive,
in lieu of the optional form of allowance previously elected, the allowance
that the member would have received on the effective date of retirement under
Option 1 as provided in subsection (1) of this section and adjusted by the
actual amount of any cost-of-living or other post-retirement adjustments made
to the original allowance since the effective date of retirement. Notice of
election under this subsection must be in a form approved by the board. If an
election is made under this subsection, the Option 1 payment amount is
applicable to the first full month after the death of the beneficiary, or the
first full month after entry of the judgment of divorce, and payable the first
day of the month thereafter. If the increased amount is not paid in any month
in which the increased amount is due, the board shall make a lump sum payment
to the retired member that is equal to the difference between the amount paid
to the member for that month and the amount that should have been paid under
the provisions of this subsection.
(4)
The cost to the system of a disability retirement allowance in any optional
form may not exceed the cost to the system of a nonrefund disability retirement
allowance payable to, and on account of, the member making such election.
(5)
The obligation for payment of any benefit in force prior to April 8, 1953, may
not be altered by subsections (1) to (4) of this section. However, the
beneficiary of a retired member who prior to July 1, 1953, elected an option
but died prior to the effective date of such election, shall have a right to
repay, before December 31, 1953, the amount of the lump sum refund made in lieu
of the monthly life benefit elected and receive payment of such benefit,
computed as of the date of the member’s death and payable from such date.
(6)
If a member who would have qualified for disability benefits makes preliminary
application for such benefits but dies prior to being found by the board to be
disabled or prior to electing a plan of benefit payments, and the records of
the board indicate that the member had designated the surviving spouse as
beneficiary under ORS 238.390 (1), such surviving spouse may, not more than 90
days after the board makes its finding that the member would have qualified for
disability benefits if living:
(a)
Elect to receive the amount referred to in ORS 238.395 if such benefit would
have been available if the member had not applied for disability benefits;
(b)
If not eligible for benefits under ORS 238.395, elect to receive benefits under
ORS 238.390 (1); or
(c)
Elect Option 2 or 3 under subsection (1) of this section and designate the
surviving spouse as beneficiary thereunder with the same force and effect as if
the election and designation had been properly made by the deceased member.
(7)
The board may deny an election to convert a disability retirement allowance
under this section, a change of beneficiary under this section or a change in
benefit options under this section if that denial 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. [Formerly
237.181; 1999 c.317 §11; 2001 c.945 §52; 2005 c.138 §2]
238.330 Minimum disability retirement
allowance. (1) Whenever an active or inactive
member of the system has been found to be entitled to a disability retirement
allowance as provided in ORS 238.320, the member shall receive not less than an
aggregate of $100 a month under the nonrefund plan, subject to reduction to
equivalent actuarial value in the event of the member’s exercising any option
provided by ORS 238.325.
(2)
Notwithstanding ORS 238.320, 238.325 and subsection (1) of this section, if an
active or inactive member of the system has been found to be entitled to a
disability retirement allowance as provided in ORS 238.320 after the member has
passed earliest service retirement age, the amount of monthly disability
retirement allowance shall not be less than the amount which the member would
have received had the member retired for service and elected the same option.
(3)
Notwithstanding ORS 238.320, 238.325 and subsection (1) of this section, the
amount of a monthly disability retirement allowance shall be reduced by the
amount by which the combined total of the disability retirement allowance to
which the retired member is otherwise entitled for the month and the earned
income for the month exceeds the monthly salary received by the retired member
at the time of retirement for disability; but the amount of the reduction shall
not reduce the combined total of the disability retirement allowance and earned
income for the month to less than $400. [Formerly 237.187]
238.335 Medical examination for disability
retirement allowance; rules. The board
shall require medical examinations for all applicants for retirement for
disability under such general rules as it prescribes, and may provide for the
discontinuance of any disability retirement allowance and the forfeiture of all
rights under this chapter, in the case of any person who refuses to submit to
such an examination. [Formerly 237.191]
238.340 Return to work.
When a member retired because of disability is determined by the Public
Employees Retirement Board to be not incapacitated to the extent that the
member is disabled from the performance of any work for which the member is
qualified, the disability retirement shall be canceled forthwith, the member
shall be eligible for reemployment and the member account of the member shall
be credited with the amount that stood to the credit in the member account of
the member in the fund at the time of retirement for disability. Any such
person who for any reason is not reinstated in the service of an employer
participating in the system shall receive separation benefits or service
retirement benefits as provided in this chapter. [Formerly 237.195; 1997 c.53 §1;
2001 c.945 §53]
238.345 Optional service-connected
disability retirement allowance for police officers and firefighters.
(1) A police officer or firefighter, other than a volunteer firefighter, who
would be entitled to receive disability benefits as a member of the Public
Employees Retirement System under ORS 238.320 (1), may elect to receive the
service-connected disability retirement allowance authorized under this
section. The allowance authorized under this section is an amount equal to 50
percent of the police officer’s or firefighter’s final average salary as
determined at the date of the injury causing the disability. If elected, the
allowance authorized under this section is in lieu of any service-connected
disability retirement benefit available under this chapter.
(2)
The election to receive the benefits authorized under subsection (1) of this
section shall be made within 90 days after the board makes its decision that
the police officer or firefighter is disabled. The election once made shall not
be changed.
(3)
A police officer or firefighter electing to receive the benefits authorized
under subsection (1) of this section may elect to convert those benefits to a
service-connected disability retirement annuity of equivalent actuarial value
as provided in ORS 238.325.
(4)
Nothing in this section shall interfere with the right of a police officer or
firefighter to receive a disability retirement allowance under this chapter for
disability not incurred in the line of duty. [Formerly 237.173]
(Use of Leave to Increase Retirement
Allowance)
238.350 Use of unused leave to increase retirement
allowance; rules. (1)(a) Upon the request by a
public employer that its employees be compensated for accumulated unused sick
leave with pay in the form of increased retirement benefits upon service or
disability retirement, the board shall establish a procedure for adding to the
gross amount of salary used in determining final average salary the monetary
value of one-half of the accumulated unused sick leave with pay of each
retiring employee of the requesting public employer and shall establish
benefits of the retiring employee on the basis of a final average salary
reflecting that addition.
(b)
For employees of a common school district, a union high school district, an education
service district or an institution of higher education engaged in teaching or
other school activity, or employees of the school operated under ORS 346.010
engaged in teaching or other school activity, who are employed under contract
for a period of less than 12 consecutive months and who are entitled to sick
leave with pay of less than 96 hours for a year, each hour of accumulated
unused sick leave with pay shall be valued on the basis of the actual number of
contract hours of employment during the last year of contributing membership of
an employee before retiring and the salary of the employee during the same
period. This paragraph does not apply to any employee who is employed under
contract for 12 consecutive months in any of the three or less years used in
determining the final average salary of the employee.
(c)
For the purpose of this subsection, accumulated unused sick leave with pay
includes unused sick leave with pay accumulated by an active member of the
system while in the service of any public employer participating in the system
that has the request described in paragraph (a) of this subsection in effect at
the time of the member’s separation from the service of the employer, whether
that employer is or is not the employer of the member at the time of the member’s
retirement.
(d)
The board shall establish rules requiring all public employers participating in
the system to transmit to the board reports of unused sick leave with pay
accumulated by their employees who are members of the system and to provide
timely notification to each of those employees of unused sick leave with pay
accumulated by the employee and reported to the board.
(2)
Accumulated unused sick leave with pay may be considered for the purpose of
subsection (1) of this section only in accordance with the following
requirements:
(a)
Sick leave not credited at the rate actually provided by the public employer
may not be considered. The amount of sick leave exceeding an amount credited at
the lowest rate in effect for any employee of the public employer who is
normally entitled to sick leave, and in any event exceeding an amount credited
at a rate of eight hours for each full month worked, may not be considered.
(b)
Sick leave credited for periods when an employee was absent from employment on
sabbatical leave, educational leave or any leave without pay may not be
considered.
(c)
Any period during which an employee was absent from employment for illness or
injury that was charged against sick leave not qualified for consideration
shall be deducted from sick leave qualified for consideration.
(d)
Sick leave for any period for which the public employer provides no sick leave
with pay for its employees may not be considered.
(e)
Sick leave accumulated on and after July 1, 1973, may be considered only to the
extent it is supported by records of accumulation and use pursuant to a plan
adopted formally by the public employer.
(f)
Accumulated unused sick leave for periods before July 1, 1973, may be
considered as follows:
(A)
If any department, bureau or other organizational unit of a public employer
maintained formal records of accumulation and use even though the public
employer did not require that those records be maintained, the accumulated
unused sick leave shall be considered according to those records.
(B)
Where the public employer provided sick leave before July 1, 1973, but formal
records of accumulation and use were not required or if required, are
unavailable or incomplete, or the sick leave was subject to administrative
limitations on total accumulation or transfer between public employers,
accumulated unused sick leave for periods before July 1, 1973, may be
considered as equal to 2.675 hours for each full month worked or an amount per
month equal to the average monthly accumulation by an employee during the
period beginning July 1, 1973, and ending at the time of retirement, whichever
amount is greater, but reduced by the amount of any accumulated unused sick
leave credited to the employee on July 1, 1973.
(g)
The written certification of a member or former member of the Legislative
Assembly shall constitute a formal record of accumulation and use in
determining the amount of accumulated unused sick leave of an employee of the
Legislative Assembly, either of its houses or any of its committees or officers
for periods of employment before July 1, 1981. Sick leave accumulated on and
after July 1, 1981, by employees of the Legislative Assembly, either of its
houses or any of its committees or officers may be considered only to the
extent it is supported by records of accumulation and use maintained by the
Legislative Administration Committee, or any statutory, standing, special or
interim committee of the Legislative Assembly or either house thereof, or any
constitutional or statutory office of the Legislative Assembly or either house
thereof, pursuant to a plan adopted formally by the committee or officer.
(3)(a)
As used in this subsection, “legislative employee” means any person employed by
the Legislative Assembly, either of its houses or any of its committees or
officers, but does not include a regular employee of a statutory committee or
statutory office of the Legislative Assembly described in ORS 173.005 (1).
(b)
Upon the request of a retiring legislative employee who is a member of the
system, and the request of the public employer of the legislative employee,
that the legislative employee be compensated for accumulated unused vacation
with pay for periods of legislative employment in the form of increased retirement
benefits upon service or disability retirement, the board shall add to the
gross amount of salary used in determining final average salary of the
legislative employee the monetary value of one-half of the accumulated unused
vacation with pay of the legislative employee and shall establish the benefits
of the legislative employee on the basis of a final average salary reflecting
that addition.
(c)
Accumulated unused vacation with pay may be considered for the purposes of
paragraph (b) of this subsection only in accordance with the following
requirements:
(A)
Vacation not credited at the rate actually provided by the public employer may
not be considered.
(B)
Amounts of vacation exceeding amounts creditable to employees in the classified
service of the state service pursuant to ORS 240.515 (1), and rules adopted
pursuant thereto, in effect on June 30, 1981, shall not be considered.
(C)
Vacation accumulated before, on and after July 1, 1981, may be considered only
to the extent it is supported by records of accumulation and use pursuant to a
plan adopted formally by the public employer. However, the written
certification of a member or former member of the Legislative Assembly shall
constitute a formal record of accumulation and use in determining the amount of
accumulated unused vacation of a legislative employee for periods of
legislative employment before July 1, 1981.
(4)
Employers with plans providing payments on account of sickness in lieu of sick
leave with pay may request the board to consider the monetary value of
accumulated unused payments on account of sickness as if such payments were an
equivalent amount of accumulated unused sick leave with pay under the same
terms and conditions specified in subsections (1) and (2) of this section. [Formerly
237.153; 1997 c.249 §68; 2001 c.295 §10; 2007 c.70 §57; 2007 c.858 §60; 2009
c.562 §16; 2011 c.637 §74]
238.355 Computation of unused sick leave
for community college employees.
Notwithstanding ORS 238.350 (2)(a), unused sick leave for community college
employees shall accumulate for an unlimited number of days and shall accumulate
at the rate of 10 days per school year or one day per month employed, whichever
is greater. Except as provided in ORS 238.350 (1)(b), unused sick leave
accumulated by community college employees shall be computed in the same manner
as for employees in state classified service for computation of retirement
benefits. [Formerly 237.017 (1)]
(Cost-of-Living Adjustments)
238.360 Cost-of-living adjustments.
(1) As soon as practicable after January 1 each year, the Public Employees
Retirement Board shall determine the percentage increase or decrease in the
cost-of-living for the previous calendar year, based on the Consumer Price
Index (Portland area–all items) as published by the Bureau of Labor Statistics
of the U.S. Department of Labor for the Portland, Oregon, area. Prior to July 1
each year the allowance which the member or the member’s beneficiary is
receiving or is entitled to receive on August 1 for the month of July shall be
multiplied by the percentage figure determined, and the allowance for the next
12 months beginning July 1 adjusted to the resultant amount.
(2)
Such increase or decrease shall not exceed two percent of any monthly
retirement allowance in any year and no allowance shall be adjusted to an
amount less than the amount to which the recipient would be entitled if no
cost-of-living adjustment were authorized.
(3)
The amount of any cost-of-living increase or decrease in any year in excess of
the maximum annual retirement allowance adjustment of two percent shall be
accumulated from year to year and included in the computation of increases or
decreases in succeeding years.
(4)
Any increase in the allowance shall be paid from contributions of the public
employer under ORS 238.225. Any decrease in the allowance shall be returned to
the employer in the form of a credit against contributions of the employer
under ORS 238.225. [Formerly 237.060; 2001 c.945 §79]
(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.
(1) Notwithstanding any other provision of sections 3 to 10, chapter 569,
Oregon Laws 1995, the increased benefits payable under ORS 238.364 and 238.368
(2), including all increased benefits payable to judge members by reason of the
application of ORS 238.364 and 238.368 (2) to judge members, and under section
10, chapter 569, Oregon Laws 1995:
(a)
Shall not be paid in any tax year in which retirement benefits that are payable
under the Public Employees Retirement System and that are attributable to
service rendered by the member before September 29, 1991, are wholly exempt
from Oregon personal income taxation under Oregon law.
(b)
Shall be reduced proportionately for any tax year in which retirement benefits
that are payable under the Public Employees Retirement System and that are
attributable to service rendered by the member before September 29, 1991, are
partially exempt from Oregon personal income taxation under Oregon law.
(2)
An overpayment of benefits that results from the operation of subsection (1) of
this section is not recoverable from the recipient of the benefits, but the
Public Employees Retirement Board shall ensure that no additional overpayments
are made.
(3)
No member of the system or beneficiary of a member of the system shall acquire
a right, contractual or otherwise, to the increased benefits provided by
sections 3 to 10, chapter 569, Oregon Laws 1995.
(4)(a)
Notwithstanding any other provision of law, a class action may not be commenced
on or after July 14, 1995, based on a claim for damages arising out of the
subjecting of benefits paid under this chapter to Oregon personal income
taxation by act of the Legislative Assembly.
(b)
Notwithstanding any other provision of law, any court in which there is pending
on May 30, 1997, a class action that was commenced before July 14, 1995, based
on a claim for damages arising out of the subjecting of benefits paid under
this chapter to Oregon personal income taxation, may at any time after May 30,
1997, reopen that class action if by act of the Legislative Assembly there is a
decrease in the benefit payable under ORS 238.364 or 238.368 (2), or in the
benefits payable to judge members by reason of the application of ORS 238.364
or 238.368 (2) to judge members, or in the benefits payable to any member,
judge member or beneficiary under section 10, chapter 569, Oregon Laws 1995,
without an equivalent decrease in the personal income tax imposed under Oregon
law on benefits paid under the system that are attributable to service rendered
before September 29, 1991. Upon reopening the class action, the court may
change the membership of the classes and may grant such further relief as may
be warranted, including the entry of a judgment for damages or a judgment for
supplemental relief under ORS 28.080. [Formerly 238.375]
238.364 Calculation of increased benefit payable
under ORS 238.362. (1)(a) Upon retirement of an
employee who is a member of the Public Employees Retirement System and
computation of that member’s service retirement allowance under ORS 238.300,
238.305 or 238.425, or computation of any disability retirement allowance under
ORS 238.320, 238.325, 238.330, 238.345 or 238.425, the Public Employees
Retirement Board shall add to the amount of the allowance, including amounts
attributable to prior service credit and the amount of any refund of
accumulated employee contributions, the greater of the percentage increase calculated
under ORS 238.366 or a percentage increase calculated under subsection (4) of
this section. No benefit shall be paid to a member or beneficiary under ORS
238.366 if the benefit payable to the member or beneficiary under this section
is larger than the benefit payable under ORS 238.366.
(b)
The percentage increase provided for in this section shall be adjusted by the
board to reflect increases or decreases in a member’s retirement allowance that
are attributable to the member’s participation in the Variable Annuity Account
established by ORS 238.260, that are attributable to a change in the member’s
beneficiary or payment option under ORS 238.305 or 238.325, or that are
attributable to corrections to the member’s retirement allowance calculation.
(c)
The percentage increase provided for in this section shall be applied to any
lump sum payment made to a member or a beneficiary of a member on or after
January 1, 1991, that is attributable to a retroactive correction or adjustment
of the amount payable to the member or beneficiary as a retirement allowance or
that is attributable to a retroactive correction or adjustment to any other
benefit that entitles a member or beneficiary to an increased benefit under
this section. The percentage increase payable under this paragraph applies only
to the principal amounts included in the lump sum payment as a retroactive
correction or adjustment and does not apply to any interest on the retroactive
correction or adjustment paid as part of the lump sum payment.
(2)
The amount of any death benefit under ORS 238.390, 238.395, 238.400 or 238.405,
including the amount of any monthly payments, shall be increased by the greater
of the percentage provided for in ORS 238.366 or the percentage calculated
under subsection (4) of this section.
(3)(a)
A member of the system who elects to receive a lump sum in lieu of a retirement
allowance or other benefit under ORS 238.315 shall receive an increase based on
the greater of the percentage provided for in ORS 238.366 or the percentage
calculated under subsection (4) of this section.
(b)
A member of the system who withdraws the amount credited to the member account,
if any, of the member in the fund under the provisions of ORS 238.265, or whose
member account is returned to the employee after the membership of the employee
is terminated under the provisions of ORS 238.095, shall receive an additional
amount calculated by multiplying the amount of the member account of the member
by the greater of the percentage provided for in ORS 238.366 or the percentage
calculated under subsection (4) of this section. If a member thereafter elects
to obtain restoration of creditable service by repaying the amount of the
withdrawn member account pursuant to the provisions of ORS 238.105, the member
must also repay all amounts paid under this section, together with interest
from the date of withdrawal at the same rate as applied to the withdrawn member
account under ORS 238.105. If a member repays only part of the withdrawn member
account pursuant to the provisions of ORS 238.115, the member must repay that
part of the amount paid under this section that is proportionate to the portion
of the withdrawn member account that is repaid under ORS 238.115, together with
interest from the date of withdrawal at the same rate as applied to the
withdrawn member account under ORS 238.115. All amounts paid to the member that
are subsequently repaid under ORS 238.105 or 238.115 shall be deposited by the
board to the employer reserve for pension accounts in the fund.
(4)(a)
The Public Employees Retirement Board shall calculate a multiplier for the
purposes of this section equal to the percentage produced by the following
formula:
1/.91
(b) Upon the retirement or death of a
member of the system, the board shall determine the fraction of the member’s
retirement allowance or death benefit, including any refund or lump sum
payment, that is attributable to service rendered by the member before October
1, 1991. The board shall then calculate a percentage that is equal to that
fraction multiplied by the multiplier determined by the board under paragraph
(a) of this subsection. The percentage so calculated shall be used to determine
the amount of the increase in benefits provided to a member, if any, under this
section.
(5) For the purpose of determining that
portion of a retirement allowance or death benefit attributable to service
rendered before October 1, 1991, the board shall divide the number of years of
creditable service performed before October 1, 1991, by the total number of
years of creditable service during which the pension income was earned. For the
purposes of this subsection:
(a) The number of years of creditable
service does not include any period of employment for which a benefit is paid
for prior service credit.
(b) Except as provided in subsection (7)
of this section, the number of years of creditable service includes all
retirement credit of the member, and any retirement credit of a member that is
attributable to periods of service, employment or other activity performed
before October 1, 1991, shall be considered creditable service performed before
October 1, 1991.
(6) The increased benefits provided for in
this section shall be funded by employer contributions.
(7) The increased benefits provided by
this section apply only to members who establish membership in the Public
Employees Retirement System before July 14, 1995, and whose effective date of
retirement or date of death is on or after January 1, 1991. The increased
benefits provided by this section do not apply to any creditable service or
prior service credit acquired by a member under the terms of a contract of
integration entered into pursuant to ORS 238.035, 238.680 or 238.690 on or
after October 1, 1991.
(8) If a member is entitled to receive an
increased benefit under the provisions of this section, and any portion of the
member’s retirement allowance or other benefit payable under the system is
payable to an alternate payee under the provisions of ORS 238.465, the
increased benefits payable under this section shall be divided between the
member and the alternate payee in proportion to the share of the total benefit
received by each person. If an alternate payee elects to begin receiving
benefits under ORS 238.465 (1) before the member’s effective date of
retirement, the alternate payee may not begin receiving the increased benefit
provided for in this section until benefits are first paid from the system on
behalf of the member.
(9) A person establishes membership in the
system before July 14, 1995, for the purposes of subsection (7) of this section
if:
(a) The person is a member of the system,
or a judge member of the system, on July 14, 1995;
(b) The person was a member of the system
before July 14, 1995, ceased to be a member of the system under the provisions
of ORS 238.095, 238.265 or 238.545 before July 14, 1995, but restores part or
all of the forfeited creditable service from before July 14, 1995, under the
provisions of ORS 238.105 or 238.115 after July 14, 1995; or
(c) The person performed any period of
service for a participating public employer before July 14, 1995, that is
credited to the six-month period of employment required of an employee under
ORS 238.015 before an employee may become a member of the system. [Formerly 238.380]
238.365
[Formerly 237.209; 2001 c.945 §69; renumbered 238.387 in 2001]
238.366
Retirement allowance increase based on years of service.
(1)(a) Upon retirement of an employee who is a member of the Public Employees
Retirement System and computation of that member’s service retirement allowance
under ORS 238.300, 238.305 or 238.425, or computation of any disability
retirement allowance under ORS 238.320, 238.325, 238.330, 238.345 or 238.425,
the Public Employees Retirement Board shall add to the amount of the allowance,
including amounts attributable to prior service credit and the amount of any
refund of accumulated member contributions, an additional amount equal to the
percentage increase provided in subsection (4) of this section.
(b) The percentage increase provided for
in this section shall be adjusted by the board to reflect increases or
decreases in a member’s retirement allowance that are attributable to the
member’s participation in the Variable Annuity Account established by ORS
238.260, that are attributable to a change in the member’s beneficiary or
payment option under ORS 238.305 or 238.325, or that are attributable to
corrections to the member’s retirement allowance calculation.
(c) The percentage increase provided for
in this section shall be applied to any lump sum payment made to a member or a
beneficiary of a member on or after January 1, 1991, that is attributable to a
retroactive correction or adjustment of the amount payable to the member or
beneficiary as a retirement allowance or that is attributable to a retroactive
correction or adjustment to any other benefit that entitles a member or
beneficiary to an increased benefit under this section. The percentage increase
payable under this paragraph applies only to the principal amounts included in
the lump sum payment as a retroactive correction or adjustment and does not
apply to any interest on the retroactive correction or adjustment paid as part
of the lump sum payment.
(2) The amount of any death benefit under
ORS 238.390, 238.395, 238.400 or 238.405, including the amount of any monthly
payments, shall be increased by an amount equal to the percentage increase
provided in subsection (4) of this section.
(3)(a) A member of the system who receives
a lump sum under ORS 238.315 in lieu of a retirement allowance or other benefit
shall receive an additional amount equal to the percentage increase provided in
subsection (4) of this section.
(b) A member of the system who withdraws
the amount credited to the member account, if any, of the member under the
provisions of ORS 238.265, or whose member account is returned to the employee
after the membership of the employee is terminated under the provisions of ORS
238.095, shall receive an additional amount calculated by multiplying the
amount of the member account of the member by the percentage increase provided
for under subsection (4) of this section. If a member thereafter elects to
obtain restoration of creditable service by repaying the amount of the
withdrawn member account pursuant to the provisions of ORS 238.105, the member
must also repay all amounts paid under this section, together with interest
from the date of withdrawal at the same rate as applied to the withdrawn member
account under ORS 238.105. If a member repays only part of the withdrawn member
account pursuant to the provisions of ORS 238.115, the member must repay that
part of the amount paid under this section that is proportionate to the portion
of the withdrawn member account that is repaid under ORS 238.115, together with
interest from the date of withdrawal at the same rate as applied to the
withdrawn member account under ORS 238.115. All amounts paid to the member that
are subsequently repaid under ORS 238.105 or 238.115 shall be deposited by the
board to the employer reserve for pension accounts in the fund.
(4)(a) The percentage increases provided
for in this section to the benefits payable to or on account of a member of the
system who is serving as other than a police officer or firefighter at the time
of death or retirement shall be:
(A) For a member with a combined total of
10 or more years of creditable service in the system and prior service credit
but less than a combined total of 20 years, one percent.
(B) For a member with a combined total of
20 or more years of creditable service in the system and prior service credit
but less than a combined total of 25 years, two percent.
(C) For a member with a combined total of
25 or more years of creditable service in the system and prior service credit
but less than a combined total of 30 years, three percent.
(D) For a member with a combined total of
30 or more years of creditable service in the system and prior service credit,
four percent.
(b) The percentage increases provided for
in this section to the benefits payable to or on account of a member of the
system who is serving as a police officer or firefighter at the time of death
or retirement shall be:
(A) For a member with a combined total of
10 or more years of creditable service in the system and prior service credit
but less than a combined total of 20 years, one percent.
(B) For a member with a combined total of
20 or more years of creditable service in the system and prior service credit
but less than a combined total of 25 years, two and one-half percent.
(C) For a member with a combined total of
25 or more years of creditable service in the system and prior service credit,
four percent.
(c) The benefits payable to or on account
of a member with less than a combined total of 10 years of creditable service
in the system and prior service credit at the time of death or retirement shall
not be increased under the provisions of this section.
(5) The increased benefits provided for in
this section shall be funded by employer contributions.
(6) This section applies only to a member
who establishes membership in the Public Employees Retirement System before
July 14, 1995, as described in ORS 238.364 (9), and whose effective date of
retirement or date of death is on or after January 1, 1991. The increased
benefits provided by this section do not apply to any creditable service or
prior service credit acquired by a member under the terms of a contract of
integration entered into pursuant to ORS 238.035, 238.680 or 238.690 on or
after October 1, 1991.
(7) If a member is entitled to receive an
increased benefit under the provisions of this section, and any portion of the
member’s retirement allowance or other benefit payable under the system is
payable to an alternate payee under the provisions of ORS 238.465, the
increased benefits payable under this section shall be divided between the
member and the alternate payee in proportion to the share of the total benefit
received by each person. If an alternate payee elects to begin receiving
benefits under ORS 238.465 (1) before the member’s effective date of
retirement, the alternate payee may not begin receiving the increased benefit
provided for in this section until benefits are first paid from the system on
behalf of the member. [Formerly 238.385]
238.368
Retirement allowance increases for members who retired before January 1, 1991.
(1) In addition to any increase under ORS 238.360, first effective for the
month of December 1990, payable January 1, 1991, the monthly retirement
allowance payable to or on account of any person who has retired as a member of
the Public Employees Retirement System shall be increased by the following
percentages:
(a) If the member was serving as other
than a police officer or firefighter at the time of retirement, the percentage
increase shall be:
(A) For a member with a combined total of
10 or more years of creditable service in the system and prior service credit
but less than a combined total of 20 years, one percent.
(B) For a member with a combined total of
20 or more years of creditable service in the system and prior service credit
but less than a combined total of 25 years, two percent.
(C) For a member with a combined total of
25 or more years of creditable service in the system and prior service credit
but less than a combined total of 30 years, three percent.
(D) For a member with a combined total of
30 or more years of creditable service in the system and prior service credit,
four percent.
(b) If the member was serving as a police
officer or firefighter at the time of retirement, the percentage increase shall
be:
(A) For a member with a combined total of
10 or more years of creditable service in the system and prior service credit
but less than a combined total of 20 years, one percent.
(B) For a member with a combined total of
20 or more years of creditable service in the system and prior service credit
but less than a combined total of 25 years, two and one-half percent.
(C) For a member with a combined total of
25 or more years of creditable service in the system and prior service credit,
four percent.
(c) The monthly retirement allowance
payable to or on account of a member with less than a combined total of 10
years of creditable service in the system and prior service credit at the time
of retirement shall not be increased under the provisions of this subsection.
(2) In addition to any increase under ORS
238.360, first effective for the month of December 1990, payable January 1,
1991, the monthly retirement allowance payable to or on account of any person who
has retired as a member of the Public Employees Retirement System shall be
increased by a percentage equal to the percentage calculated under ORS 238.364
(4), less any increase provided to the retired member under subsection (1) of
this section.
(3) The increased allowance provided in
subsections (1) and (2) of this section shall be funded by employer
contributions. [Formerly 238.387]
238.370
[Formerly 237.199; repealed by 2001 c.945 §73]
238.372
Increased benefits under chapter 569, Oregon Laws 1995, not payable to
nonresidents. (1) Except as provided in ORS 238.372
to 238.384, the Public Employees Retirement Board may not pay the increased
benefit provided by chapter 569, Oregon Laws 1995, if the board receives notice
under ORS 238.372 to 238.384 that the payments made to the person under this
chapter are not subject to Oregon personal income tax under ORS 316.127 (9).
(2) The provisions of ORS 238.372 to
238.384 do not apply to:
(a) A retired member of the system who is
receiving payments under this chapter and whose effective date of retirement is
before January 1, 2012;
(b) A person who is receiving payments
under this chapter by reason of the retirement of a member whose effective date
of retirement is before January 1, 2012; and
(c) Any other person who receives payments
under this chapter that began before January 1, 2012.
(3) The board shall give written
notification of the provisions of ORS 238.372 to 238.384 to all persons
applying for or receiving payments under this chapter.
(4) A person receiving payments under this
chapter that are not increased under chapter 569, Oregon Laws 1995, by reason
of ORS 238.372 to 238.384 has no right or claim to the increased benefit
provided by chapter 569, Oregon Laws 1995, except as provided in ORS 238.372 to
238.384. [2011 c.653 §2]
238.374
Applicant’s statement; resumption of residency.
(1) A person applying for payments under this chapter shall give a written
statement to the Public Employees Retirement Board that indicates whether the
payments will be subject to Oregon personal income tax under ORS 316.127 (9).
If the person fails to provide the statement required by this subsection, or
the statement indicates that the payments will not be subject to Oregon
personal income tax under ORS 316.127 (9), the board may not pay the person the
increased benefit provided by chapter 569, Oregon Laws 1995.
(2) If a person is receiving payments
under this chapter that have not been increased under chapter 569, Oregon Laws
1995, by reason of the provisions of subsection (1) of this section, and
thereafter the payments become subject to Oregon personal income tax, the
person shall promptly notify the Public Employees Retirement Board by written
statement that the payments are subject to Oregon personal income tax.
(3) If a person is receiving payments
under this chapter that have not been increased under chapter 569, Oregon Laws
1995, by reason of the provisions of subsection (1) of this section, and the
board receives notice under subsection (2) of this section that payments to the
person under this chapter are subject to Oregon personal income tax, or
determines under ORS 238.378 that payments to the person under this chapter are
subject to Oregon personal income tax, the board shall initiate payment of the
increased benefit provided by chapter 569, Oregon Laws 1995. The increase in
benefits becomes effective on the first day of the calendar year following
receipt of notice by the board. [2011 c.653 §3]
238.375
[1995 c.569 §2; 1997 c.175 §4; 2001 c.945 §70; renumbered 238.362 in 2011]
238.376
Nonresidency after benefits commenced; required statement; subsequent
residency. (1) If a person is receiving payments
under this chapter, and after the payments commence the payments cease to be
subject to Oregon personal income tax under ORS 316.127 (9), the person shall
promptly notify the Public Employees Retirement Board by written statement that
the payments are no longer subject to Oregon personal income tax. The board
shall reduce any benefits payable to the person by the amount by which the
benefits were increased under chapter 569, Oregon Laws 1995. The reduction in
benefits becomes effective on the first day of the calendar year following
receipt of notice by the board.
(2) If a person is receiving payments under
this chapter that have been reduced under the provisions of subsection (1) of
this section, and thereafter the payments become subject to Oregon personal
income tax, the person shall promptly notify the board by written statement
that the payments are once again subject to Oregon personal income tax.
(3) If a person is receiving payments
under this chapter that have been reduced under the provisions of subsection
(1) of this section, and the board receives notice under subsection (2) of this
section that payments to the person under this chapter are once again subject
to Oregon personal income tax, or determines under ORS 238.378 that payments to
the person under this chapter are once again subject to Oregon personal income
tax, the board shall resume payment of the increased benefit provided by
chapter 569, Oregon Laws 1995. The increase in benefits becomes effective on
the first day of the calendar year following receipt of notice by the board. [2011
c.653 §4]
238.378
Information from Department of Revenue. (1) Not less
than once each calendar year, the Public Employees Retirement Board shall
provide to the Department of Revenue information identifying persons to whom
payments have been made under this chapter. The Department of Revenue shall
provide to the board such information on Oregon personal income tax returns as
the board deems necessary to determine whether the payments made to the person
under this chapter are subject to Oregon personal income tax under ORS 316.127
(9).
(2) If the board determines that the
payments made to a person under this chapter are not subject to Oregon personal
income tax under ORS 316.127 (9) based on information provided by the
Department of Revenue under this section, and the person is receiving the
increased benefit provided by chapter 569, Oregon Laws 1995, the board shall
reduce the benefits payable to the person as provided in ORS 238.376 (1).
(3) If the board determines that the
payments made to a person under this chapter are subject to Oregon personal
income tax based on information provided by the Department of Revenue under
this section, and the person is not receiving the increased benefit provided by
chapter 569, Oregon Laws 1995, the board shall increase the benefits payable to
the person as provided in ORS 238.374 (3) or 238.376 (3). [2011 c.653 §5]
238.380
[1995 c.569 §3; 1997 c.175 §5; 2001 c.945 §54; 2003 c.67 §30; 2009 c.868 §1;
renumbered 238.364 in 2011]
238.382
Statements constitute declaration under penalty of perjury.
A statement required under ORS 238.372 to 238.384 constitutes a declaration
under penalty of perjury and must include the following sentence in prominent
letters immediately above the signature of the declarant: “I hereby declare
that the above statement is true to the best of my knowledge and belief, and
that I understand it is subject to penalty for perjury.” [2011 c.653 §6]
238.384
Rules. The Public Employees Retirement Board
may establish rules for the administration of ORS 238.372 to 238.384. [2011
c.653 §7]
238.385
[Formerly 237.208; 1997 c.175 §6; 2001 c.945 §55; 2003 c.67 §31; 2009 c.868 §2;
renumbered 238.366 in 2011]
238.387
[Formerly 238.365; renumbered 238.368 in 2011]
(Death
Benefits)
238.390
Death benefit. (1) If a member of the system dies
before retiring, the amount of money, if any, credited at the time of death to
the member account of the member in the fund shall be paid to the beneficiaries
designated by the member. For this purpose a member may designate as a
beneficiary any person or the executor or administrator of the estate of the
member or a trustee named by the member to execute an express trust in regard
to such amount. The termination of a person’s membership in the system pursuant
to ORS 238.095 (1) or (2) invalidates any designation of beneficiary made by
the person before the termination of membership.
(2) If a member dies before retiring and
has not designated a beneficiary under subsection (1) of this section, the
Public Employees Retirement Board shall pay the amount of money, if any, credited
at the time of death to the member account of the deceased member to a personal
representative appointed for the estate of the deceased member. If an affidavit
has been filed under ORS 114.505 to 114.560, and the amount of money credited
to the account does not exceed the maximum amount of personal property for
which an affidavit may be filed under ORS 114.505 to 114.560, the board shall
pay the amount to the person who filed the affidavit.
(3) The beneficiary designated under
subsection (1) of this section may elect to receive the amount payable in
actuarially determined monthly payments for the life of such beneficiary as
long as such monthly payments are at least $200.
(4) Accrued benefits due a retired member
at the time of death are payable to the designated beneficiary or as provided
in subsection (2) of this section. For the purpose of determining accrued
benefits due a retired member at the time of death, accrued benefits are
considered to have ceased as of the last day of the month preceding the month
in which the retired member dies; but if Option 2 or Option 3 under ORS 238.305
has been elected as provided in this chapter and the beneficiary survives the
retired member, the benefits to the beneficiary shall commence as of the first
day of the month in which the retired member dies, and payment of benefits
under Option 2 or Option 3 shall cease with the payment for the month preceding
the month in which the beneficiary dies.
(5) If a member dies before retiring and
has designated a beneficiary under subsection (1) of this section, but the
beneficiary dies before the member, or dies before distribution is made under
this section, the Public Employees Retirement Board shall pay the amount of
money, if any, that would otherwise have been paid to the beneficiary to a
personal representative appointed for the estate of the deceased beneficiary.
If an affidavit has been filed under ORS 114.505 to 114.560, and the amount of
money that would have been paid to the beneficiary does not exceed the maximum amount
of personal property for which an affidavit may be filed under ORS 114.505 to
114.560, the board shall pay the amount to the person who filed the affidavit
on behalf of the estate of the beneficiary.
(6) Interest upon the member account of
the member shall accrue until the date that the amount in the member account is
distributed. Any balance in the variable account of the deceased member is
considered to be transferred to the regular account of the member as of the
date of death. The board shall establish procedures for computing and crediting
interest on the balance in the member account for the period between the date
of death and date of distribution.
(7) Payment by the board of amounts in the
manner provided by this section completely discharges the board and system on
account of the death, and shall hold the board and system harmless from any
claim for wrongful payment. [Formerly 237.165; 2001 c.945 §56; 2003 c.67 §25;
2003 c.625 §1; 2005 c.808 §28]
238.395
Additional death benefit. (1) In addition to any other
benefits under this chapter, a death benefit, provided by contributions of the
public employer under ORS 238.225, shall be paid to the beneficiaries
designated under ORS 238.390 (1) of a person who is an active or inactive
member of the system and who dies as a result of injuries received while
employed in the service of the public employer or within 120 days after
termination from service with a participating public employer. A member who is
on a leave of absence without pay from employment with a participating public
employer has not terminated service with that participating public employer for
the purposes of this section.
(2) The death benefit referred to in
subsection (1) of this section shall be an amount equal to the amount in the member
account of the deceased member at the time of death.
(3) In the event that a beneficiary has
not been named as provided in subsection (1) of this section and ORS 238.390
(1), the death benefit referred to in subsection (1) of this section shall be paid
in the manner provided for payment of money credited to the member account of
the member in ORS 238.390 (2).
(4) The beneficiary designated under
subsection (1) of this section and ORS 238.390 (1) may elect to receive the
amount payable in actuarially determined monthly payments for the life of such
beneficiary as long as such monthly payments, plus the monthly amount if
elected under ORS 238.390 (3), are at least $200.
(5) Interest upon the death benefit
provided by this section shall accrue until the date that the benefit is
distributed. The board shall establish procedures for computing interest to be
credited on the benefit for the period between the date of death and date of
distribution.
(6) Payment by the Public Employees
Retirement Board of additional death benefits in the manner provided by this
section completely discharges the board and system on account of the death, and
shall hold the board and system harmless from any claim for wrongful payment. [Formerly
237.169; 2001 c.945 §57; 2003 c.625 §4]
238.400
Payment upon death of retired member who dies before making election of
retirement benefits. If a person who is a member of
the system, who has attained normal retirement age and who has retired from
service, dies without making an election under ORS 238.305 and prior to the
expiration of the time within which such an election could be made by the
person, and the records of the Public Employees Retirement Board indicate that
the person has designated the surviving spouse as the beneficiary under ORS
238.390 (1), such surviving spouse may, not more than 60 days after the date of
the death of such deceased member, elect to receive the amount referred to in
ORS 238.390 (1), or elect Option 2 or Option 3 under ORS 238.305 and designate
self as the beneficiary thereunder with the same force and effect as if the
election and designation had been properly made by the deceased member. [Formerly
237.167]
238.405
Death benefit payable to survivors of certain police officers or firefighters.
(1) The surviving spouse or child of a police officer or firefighter, who died
a member of the Public Employees Retirement System while retired either for
service or disability and while receiving or being entitled to receive a
benefit under ORS 238.345 or under this chapter, is entitled to a benefit under
this section. The benefit shall be equal to 25 percent of the unmodified
retirement allowance the police officer or firefighter was receiving or was
entitled to receive at the time of death under ORS 238.345 or under this
chapter. The benefit authorized by this section is in addition to any other
benefit the surviving spouse or child is entitled to and is available to the
child until the child attains 18 years of age.
(2) For the purpose of this section, the
unmodified retirement allowance is that allowance described in ORS 238.300, or
if election to receive the benefits authorized under ORS 238.345 has been made,
the unmodified retirement allowance is 50 percent of the final average salary
of the police officer or firefighter as determined on the date of the injury
causing disability.
(3) The board shall pay to a surviving
spouse or child entitled to a benefit under this section a lump sum amount
equal to the actuarial value of the allowance provided under this section if
the allowance is less than $30 per month. The lump sum amount shall be in lieu
of the allowance provided for under this section. [Formerly 237.163]
238.407
Distribution of death benefit as rollover distribution.
(1) If a benefit is payable under this chapter to a beneficiary by reason of
the death of a member of the system, the beneficiary may elect to have all or
part of the distribution of the death benefit paid in an eligible rollover
distribution to an individual retirement plan described in 26 U.S.C. 408(a), or
an individual retirement annuity, other than an endowment contract, described
in 26 U.S.C. 408(b), if the plan or annuity is established for the purpose of
receiving the eligible rollover distribution on behalf of the designated beneficiary.
(2) Subsection (1) of this section applies
to an eligible rollover distribution of death benefits to a beneficiary who is
not treated as the spouse of the decedent for federal tax purposes and who is
the decedent’s designated beneficiary for the purposes of the minimum required
distribution requirements of 26 U.S.C. 401(a)(9). To the extent provided by
rules of the Public Employees Retirement Board, a trust maintained for the
benefit of one or more beneficiaries must be treated by the board in the same
manner as a trust that is designated as a beneficiary for the purposes of the
minimum required distribution requirements of 26 U.S.C. 401(a)(9).
(3) As used in this section, “eligible
rollover distribution” has the meaning given that term in 26 U.S.C. 402(c)(4),
as in effect on January 1, 2008. [2007 c.628 §4]
(Insurance
Premium Payments)
238.410
Board may contract for insurance for retirees; rules.
(1) As used in this section:
(a) “Carrier” means an insurance company
or health care service contractor holding a valid certificate of authority from
the Director of the Department of Consumer and Business Services, an insurance
company or health care service contractor licensed or certified in another
state that is operating under the laws of that state, or two or more of those
companies or contractors acting together pursuant to a joint venture,
partnership or other joint means of operation.
(b) “Eligible person” means:
(A) A member of the Public Employees
Retirement System who is retired for service or disability and is receiving a
retirement allowance or benefit under the system, and a spouse or dependent of
that member;
(B) A person who is a surviving spouse or
dependent of a deceased retired member of the system or the surviving spouse or
dependent of a member of the system who had not retired but who had reached
earliest retirement age at the time of death;
(C) A person who is receiving retirement
pay or a pension calculated under ORS 1.314 to 1.380 (1989 Edition), and a
spouse or dependent of that person; or
(D) A surviving spouse or dependent of a
deceased retired member of the system or of a person who was receiving
retirement pay or a pension calculated under ORS 1.314 to 1.380 (1989 Edition)
if the surviving spouse or dependent was covered at the time of the decedent’s
death by a health care insurance plan contracted for under this section.
(c) “Health care” means medical, surgical,
hospital or any other remedial care recognized by state law and related
services and supplies and includes comparable benefits for persons who rely on
spiritual means of healing.
(2) The Public Employees Retirement Board
shall conduct a continuing study and investigation of all matters connected
with the providing of health care insurance protection to eligible persons. The
board shall design benefits, devise specifications, invite proposals, analyze
carrier responses to advertisements for proposals and do acts necessary to
award contracts to provide health care insurance, including insurance that
provides coverage supplemental to federal Medicare coverage, with emphasis on
features based on health care cost containment principles, for eligible
persons. The board is not subject to the provisions of ORS chapters 279A and
279B, except ORS 279B.235, in awarding contracts under the provisions of this
section. The board shall establish procedures for inviting proposals and
awarding contracts under this section.
(3) The board shall enter into a contract
with a carrier to provide health care insurance for eligible persons for a one
or two-year period. The board may enter into more than one contract with one or
more carriers, contracting jointly or severally, if in the opinion of the board
it is necessary to do so to obtain maximum coverage at minimum cost and
consistent with the health care insurance needs of eligible persons. The board
periodically shall review a current contract or contracts and make suitable
study and investigation for the purpose of determining whether a different
contract or contracts can and should, in the best interest of eligible persons,
be entered into. If it would be advantageous to eligible persons to do so, the
board shall enter into a different contract or contracts. Contracts shall be
signed by the chairperson on behalf of the board.
(4) Except as provided in ORS 238.415 and
238.420, the board may deduct monthly from the retirement allowance or benefit,
retirement pay or pension payable to an eligible person who elects to
participate in a health care insurance plan the monthly cost of the coverage
for the person under a health care insurance contract entered into under this
section and the administrative costs incurred by the board under this section,
and shall pay those amounts into the Standard Retiree Health Insurance Account
established under subsection (7) of this section. The board by rule may
establish other procedures for collecting the monthly cost of the coverage and
the administrative costs incurred by the board under this section if the board
does not deduct those costs from the retirement allowance or benefit,
retirement pay or pension payable to an eligible person.
(5) Subject to applicable provisions of
ORS chapter 183, the board may make rules not inconsistent with this section to
determine the terms and conditions of eligible person participation and
coverage and otherwise to implement and carry out the purposes and provisions
of this section and ORS 238.420.
(6) The board may retain consultants,
brokers or other advisory personnel, organizations specializing in health care
cost containment or other administrative services when it determines the
necessity and, subject to the State Personnel Relations Law, shall employ such
personnel as are required to assist in performing the functions of the board
under this section.
(7) Pursuant to section 401(h) of the
Internal Revenue Code, the Standard Retiree Health Insurance Account is
established within the Public Employees Retirement Fund, separate and distinct
from the General Fund. All payments made by eligible persons for health insurance
coverage provided under this section shall be held in the account. Interest
earned by the account shall be credited to the account. All moneys in the
account are continuously appropriated to the Public Employees Retirement Board
and may be used by the board only to pay the cost of health insurance coverage
under this section and to pay the administrative costs incurred by the board
under this section.
(8) The sum of all amounts paid by
eligible persons into the Standard Retiree Health Insurance Account, by
participating public employers into the Retiree Health Insurance Premium
Account under ORS 238.415, and by participating public employers into the
Retirement Health Insurance Account under ORS 238.420, may not exceed 25
percent of the aggregate contributions made by participating public employers
to the Public Employees Retirement Fund on or after July 11, 1987, not
including contributions made by participating public employers to fund prior
service credits.
(9) Until all liabilities for health benefits
under the system are satisfied, contributions and earnings in the Standard
Retiree Health Insurance Account, the Retiree Health Insurance Premium Account
under ORS 238.415 and the Retirement Health Insurance Account under ORS 238.420
may not be diverted or otherwise put to any use other than providing health
benefits and payment of reasonable costs incurred in administering this section
and ORS 238.415 and 238.420. Upon satisfaction of all liabilities for providing
health benefits under this section, any amount remaining in the Standard
Retiree Health Insurance Account shall be returned to the participating public
employers who have made contributions to the account. The distribution shall be
made in such equitable manner as the board determines appropriate. [Formerly
237.320; 1999 c.317 §16; 1999 c.407 §7; 2003 c.794 §219; 2005 c.808 §§4,5]
Note:
238.410 was added to and made a part of ORS chapter 237 (1993 Edition) by
legislative action but was not added to ORS chapter 238 or any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
238.415
Payment toward cost of pre-Medicare insurance; rules.
(1) As used in this section:
(a) “Board” means the Public Employees
Retirement Board.
(b) “Eligible retired state employee”
means:
(A) A retired member of the Public
Employees Retirement System who was a state employee at the time of retirement,
is retired for service or disability, is receiving a retirement allowance or
benefit under the system, had eight years or more of qualifying service in the
system at the time of retirement or is receiving a disability retirement
allowance including a pension computed as if the member had eight years or more
of creditable service in the system at the time of retirement, and has attained
earliest service retirement age but is not eligible for federal Medicare
coverage; or
(B) A person who is a surviving spouse or
dependent of a deceased eligible retired state employee as provided in
subparagraph (A) of this paragraph at the time of death, who:
(i) Is receiving a retirement allowance or
benefit under the system; or
(ii) Was covered at the time of the
eligible retired state employee’s death by the retired employee’s health
insurance contracted for under ORS 238.410, and the employee retired on or
after September 29, 1991.
(c) “Qualifying service” means creditable
service in the system and any periods of employment with an employer
participating in the system required of the employee before becoming a member
of the system.
(d) “System” means the Public Employees
Retirement System.
(2) Of the monthly cost of coverage for an
eligible retired state employee under a health care insurance contract entered
into under ORS 238.410, an amount as determined under subsection (3) of this
section shall be paid from the Retiree Health Insurance Premium Account
established by subsection (4) of this section, and any monthly cost in excess
of the amount so determined shall be paid by the eligible retired state
employee in the manner provided in ORS 238.410 (4). Any amount paid under this
subsection shall be exempt from all state, county and municipal taxes imposed
on the eligible retired member.
(3) On or before January 1 of each year,
the Public Employees Retirement Board shall calculate the average difference
between the health insurance premiums paid by retired state employees under
contracts entered into by the board under ORS 238.410 and the health insurance
premiums paid by state employees who are not retired under contracts entered
into by the Public Employees’ Benefit Board. For the purposes of subsection (2)
of this section, an eligible retired state employee shall be entitled to
receive toward the monthly cost of coverage under a health insurance contract
entered into under ORS 238.410:
(a) For an eligible retired state employee
with eight years or more of qualifying service in the system, but less than 10
years of qualifying service in the system, 50 percent of the amount calculated
by the board under this subsection.
(b) For an eligible retired state employee
with 10 years or more of qualifying service in the system, but less than 15
years of qualifying service in the system, 60 percent of the amount calculated
by the board under this subsection.
(c) For an eligible retired state employee
with 15 years or more of qualifying service in the system, but less than 20
years of qualifying service in the system, 70 percent of the amount calculated
by the board under this subsection.
(d) For an eligible retired state employee
with 20 years or more of qualifying service in the system, but less than 25
years of qualifying service in the system, 80 percent of the amount calculated
by the board under this subsection.
(e) For an eligible retired state employee
with 25 years or more of qualifying service in the system, but less than 30
years of qualifying service in the system, 90 percent of the amount calculated
by the board under this subsection.
(f) For an eligible retired state employee
with 30 years or more of qualifying service in the system, 100 percent of the
amount calculated by the board under this subsection.
(4) Pursuant to section 401(h) of the
Internal Revenue Code, the Retiree Health Insurance Premium Account is
established within the Public Employees Retirement Fund, separate and distinct
from the General Fund. Interest earned by the account shall be credited to the
account. All moneys in the account are continuously appropriated to the Public
Employees Retirement Board and may be used only to pay costs of health care
insurance contract coverage under subsection (2) of this section, paying the
administrative costs incurred by the board under this section and investment of
moneys in the account under any law of this state specifically authorizing that
investment.
(5) The Retiree Health Insurance Premium
Account shall be funded by employer contributions. The state shall transmit to
the board those amounts the board determines to be actuarially necessary to
fund the liabilities of the account. The level of employer contributions shall
be established by the board using the same actuarial assumptions it uses to
determine employer contribution rates to the Public Employees Retirement Fund.
The amounts shall be transmitted at the same time and in the same manner as
contributions for pension benefits are transmitted under ORS 238.225.
(6) The Public Employees Retirement Board
shall, by rule, establish a procedure for calculating the average difference
between the health insurance premiums paid by retired state employees under
contracts entered into by the board under ORS 238.410 and the health insurance
premiums paid by state employees who are not retired under contracts entered
into by the Public Employees’ Benefit Board.
(7) As provided in section 401(h)(5) of
the Internal Revenue Code of 1986, upon satisfaction of all liabilities for
providing benefits described in subsection (2) of this section, any amount
remaining in the Retiree Health Insurance Premium Account shall be returned to
the state.
(8) No member of the system shall have an
interest in the Retiree Health Insurance Premium Account or in the benefits
provided under this section. [Formerly 237.247; 1997 c.222 §45; 1999 c.317 §17;
2001 c.945 §80; 2003 c.14 §113; 2005 c.808 §6]
Note:
238.415 was added to and made a part of ORS chapter 237 (1993 Edition) by
legislative action but was not added to ORS chapter 238 or any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
238.420
Payment toward cost of Medicare supplemental insurance.
(1) As used in this section, “eligible retired member” means:
(a) A retired member of the Public
Employees Retirement System who is retired for service or disability, is
receiving a retirement allowance or benefit under the system, had eight years
or more of qualifying service in the system at the time of retirement or is
receiving a disability retirement allowance including a pension computed as if
the member had eight years or more of creditable service in the system at the
time of retirement, and is eligible for federal Medicare coverage; or
(b) A person who is a surviving spouse or
dependent of a deceased eligible retired member as provided in paragraph (a) of
this subsection at the time of death, who is eligible for federal Medicare
coverage and who:
(A) Is receiving a retirement allowance or
benefit under the system; or
(B) Was covered at the time of the retired
member’s death by the retired member’s health insurance contracted for under
ORS 238.410, and the member retired before May 1, 1991.
(2) For purposes of subsection (1)(a) of
this section, “qualifying service” means creditable service in the system and
any periods of employment with an employer participating in the system required
of the employee before becoming a member of the system.
(3) Of the monthly cost of coverage for an
eligible retired member under a health care insurance contract that provides
coverage supplemental to federal Medicare coverage entered into under ORS
238.410, an amount equal to $60 or the total monthly cost of that coverage,
whichever is less, shall be paid from the Retirement Health Insurance Account
established by subsection (4) of this section, and any monthly cost in excess
of $60 shall be paid by the eligible retired member in the manner provided in
ORS 238.410 (4). Any amount paid under this subsection shall be exempt from all
state, county and municipal taxes imposed on the eligible retired member.
(4) Pursuant to section 401(h) of the
Internal Revenue Code, the Retirement Health Insurance Account is established
within the Public Employees Retirement Fund, separate and distinct from the
General Fund. Interest earned by the account shall be credited to the account.
All moneys in the account are continuously appropriated to the Public Employees
Retirement Board and may be used only to pay costs of health care insurance
contract coverage under subsection (3) of this section, paying the
administrative costs incurred by the board under this section and investment of
moneys in the account under any law of this state specifically authorizing that
investment.
(5) The Retirement Health Insurance
Account shall be funded by employer contributions. Each public employer that is
a member of the system shall transmit to the board such amounts as the board
determines to be actuarially necessary to fund the liabilities of the account.
The level of employer contributions shall be established by the board using the
same actuarial assumptions it uses to determine employer contribution rates to
the Public Employees Retirement Fund. The amounts shall be transmitted at the
same time and in the same manner as contributions for pension benefits are
transmitted under ORS 238.225.
(6) As provided in section 401(h)(5) of
the Internal Revenue Code of 1986, upon satisfaction of all liabilities for
providing benefits described in subsection (1) of this section, any amount
remaining in the Retirement Health Insurance Account shall be returned to the
employers participating in the retirement system on an equitable basis as
determined by the board.
(7) No member of the system shall have an
interest in the Retirement Health Insurance Account. [Formerly 237.248; 1999
c.317 §18; 2001 c.945 §88; 2005 c.808 §7]
(Benefits
Payable to Vested Inactive Member)
238.425
Benefits payable to vested inactive member. In the
event that an employee who is a vested member of the system and who has not
attained earliest service retirement age is separated, for any reason other
than death or disability, from all service entitling the employee to membership
in the system, the member account, if any, of the member shall remain to the
member’s credit in the fund unless the member elects to withdraw it and there
shall be paid such death benefits as this chapter provides; or a disability
retirement allowance or, after attaining earliest service retirement age, a
service retirement allowance, either of which shall consist of the allowance
provided in ORS 238.300, but actuarially reduced based on the member’s then
attained age. [Formerly 237.111 (1); 2001 c.945 §58; 2003 c.67 §12; 2003 c.625 §15]
(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. (1) Notwithstanding any other
provisions of this chapter, a person who establishes membership in the Public
Employees Retirement System on or after January 1, 1996, is entitled to receive
only the benefits provided under ORS 238.435 for periods of service with
participating public employers after January 1, 1996, and has no right or claim
to any other benefit provided under this chapter. A person who establishes
membership in the Public Employees Retirement System before January 1, 1996, is
entitled to receive those benefits otherwise provided by this chapter, and is
not subject to the provisions of ORS 238.435.
(2) A person establishes membership in the
system before January 1, 1996, for the purposes of this section if:
(a) The person is a member of the system,
or a judge member of the system, on January 1, 1996;
(b) The person was a member of the system
before January 1, 1996, ceased to be a member of the system under the
provisions of ORS 238.095, 238.265 or 238.545 before January 1, 1996, but
restored part or all of the forfeited creditable service from before January 1,
1996, under the provisions of ORS 238.105 or 238.115 after January 1, 1996;
(c) The person performed any period of
service for a participating public employer before January 1, 1996, that is
credited to the six-month period of employment required of an employee under
ORS 238.015 before an employee may become a member of the system; or
(d) The person becomes a member of the
system under the terms of an integration contract pursuant to the terms of ORS
238.680, and under the terms of the contract the person receives retirement
credit in the system for periods of employment performed for the public
employer before January 1, 1996.
(3) The provisions of ORS 238.435 do not
apply to judge members of the system. [1995 c.654 §2; 1997 c.175 §12; 2005 c.22
§176]
238.435
Provisions applicable to persons establishing membership on or after January 1,
1996. (1) Notwithstanding the definition of “salary”
or “other advantages” provided by ORS 238.005, for the purpose of calculating
the retirement allowance of a person who establishes membership in the system
on or after January 1, 1996, as described in ORS 238.430, the Public Employees
Retirement Board shall not include any lump sum payment for accrued vacation
pay made to the member during the last 36 calendar months of membership before
the effective date of retirement of the member, or during any period of time
taken into account for purposes of determining the three years in which the
member was paid the highest salary for the purposes of determining the member’s
final average salary.
(2) Notwithstanding the definition of “final
average salary” provided by ORS 238.005, for the purpose of calculating the
retirement allowance of a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, and who is not employed by
a local government as defined in ORS 174.116, the term “final average salary”
means whichever of the following is greater:
(a) The average salary per calendar year
paid to a public employee who is an active member of the system in three of the
calendar years of membership before the effective date of retirement of the
employee, in which three years the employee was paid the highest salary. The
three calendar years in which the employee was paid the largest total salary
may include calendar years in which the employee was employed for less than a
full calendar year. If the number of calendar years of active membership before
the effective date of retirement of the employee is three or less, the final
average salary for the employee is the average salary per calendar year paid to
the public employee in all of those years, without regard to whether the
employee was employed for full calendar years.
(b) One-third of the total salary paid to
a public employee who is an active member of the system in the last 36 calendar
months of membership before the effective date of retirement of the employee.
(3) For the purposes of calculating the
final average salary of a member under subsection (2) of this section, the
Public Employees Retirement Board shall:
(a) Include any salary paid in or for the
calendar month of separation from employment;
(b) Exclude any salary for any pay period
before the first full pay period that is included in the three calendar years
of membership under subsection (2)(a) of this section if the three calendar
years were consecutive; and
(c) Exclude any salary for any pay period
before the first full pay period that is included in the last 36 calendar
months of membership under subsection (2)(b) of this section.
(4) Notwithstanding the definition of “final
average salary” provided by ORS 238.005, for the purpose of calculating the
retirement allowance of a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, and who is employed by a
local government as defined in ORS 174.116, the term “final average salary”
means whichever of the following is greater:
(a) The average salary per calendar year
earned by a public employee who is an active member of the system in three of
the calendar years of membership before the effective date of retirement of the
employee, in which three years the employee earned the highest salary. The
three calendar years in which the employee earned the largest total salary may
include calendar years in which the employee was employed for less than a full
calendar year. If the number of calendar years of active membership before the
effective date of retirement of the employee is three or less, the final
average salary for the employee is the average salary per calendar year earned
by the public employee in all of those years, without regard to whether the
employee was employed for full calendar years.
(b) One-third of the total salary earned
by a public employee who is an active member of the system in the last 36
calendar months of membership before the effective date of retirement of the
employee.
(5) The normal retirement age is 60 years
of age for a member who establishes membership in the system on or after
January 1, 1996, as described in ORS 238.430, and who retires as other than a
police officer or firefighter.
(6) ORS 238.255 does not apply to any
person who establishes membership in the Public Employees Retirement System on
or after January 1, 1996, as described in ORS 238.430.
(7) Except as provided in this section,
all provisions of this chapter are applicable to persons who establish
membership in the system on or after January 1, 1996, as described in ORS
238.430. [1995 c.654 §3; 1999 c.407 §4; 2005 c.808 §33; 2009 c.103 §1]
(Optional
Purchase of Benefit Units by Police and Firefighters)
238.440
Optional purchase of benefit units by police and firefighters.
(1) A police officer or firefighter who is a member of the system may elect to
make additional contributions to the fund to purchase increased benefits
between the date of retirement and age 65. The rate of additional contribution
shall be determined by the actuary, dependent upon the age of the police
officer or firefighter at the date of election, so as to provide monthly
payments on the basis of $10 per unit of benefits purchased. No police officer
or firefighter may elect to purchase more than eight units. For each $10 unit
purchased by the police officer or firefighter, the employer shall purchase an
equal $10 unit. A police officer or firefighter who is retained until age 65
shall receive a lump sum refund of the additional contributions made toward
units purchased, plus interest thereon, but shall receive no benefits from the
additional contributions by the employer for such units. If a police officer or
firefighter retires after age 60 but prior to age 65, the units purchased by
additional contributions shall provide increased monthly benefits based on life
expectancy, but the matching units purchased by the employer shall not,
regardless of age, exceed $10 per month per unit purchased by the police
officer or firefighter. If a police officer or firefighter is absent from the
employment of a participating employer for any reason and because of such absence
is unable to make monthly additional contributions, the benefits provided under
this section shall be actuarially reduced upon the retirement of the police
officer or firefighter. The Public Employees Retirement Board shall establish
an account for each member who elects to make additional contributions under
this section and shall credit all contributions made by that member and
interest on those contributions to the account.
(2) Notwithstanding subsection (1) of this
section, a police officer or firefighter who retires prior to age 60 may apply
for and receive an actuarially reduced unit income commencing at any date
between the date of early retirement and age 60, with monthly benefits payable
for at least 60 months or any other monthly formula in excess of 60 months but
always terminating by age 65. Such a police officer or firefighter may elect to
pay in a lump sum within the 60 days immediately preceding early retirement the
contribution that the police officer or firefighter would have made to the account
had the police officer or firefighter worked to age 60.
(3) Any police officer or firefighter who
elects to make additional contributions to purchase increased benefits may
elect at any time before termination to cancel such election. Having once canceled
such election, no police officer or firefighter shall be again permitted to
make additional contributions.
(4) A member may withdraw the amounts
credited to the account established for the member under this section if:
(a) The member is separated from all
service with participating public employers; and
(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.
(5) A member who withdraws the amounts
credited to the account established for the member pursuant to subsection (4)
of this section may not thereafter make additional contributions under this
section.
(6) A police officer or firefighter who
has elected to make additional contributions under this section and who
transfers to employment in which not entitled to make such additional
contributions may retain the account established under subsection (1) of this
section for five years immediately following such transfer by not requesting a
withdrawal. If, at the end of the five-year period, the police officer or
firefighter has not reached age 50, or has not returned to employment in which
entitled to make additional contributions under this section, the election
shall be canceled and the amount of the account established under subsection
(1) of this section shall be refunded to the police officer or firefighter.
(7) Any election to make additional
contributions under this section and any cancellation of such election shall be
submitted to the employer and to the board in writing. [Formerly 237.071 (4);
1999 c.317 §5a; 2007 c.52 §6]
(Prior
Service Credit)
238.442
Prior service credit. (1) Subject to the rules of the
Public Employees Retirement Board, upon commencing participation in the system
a public employer that is not a school district may elect to provide prior
service credit for employees of the employer who are employees of the employer
on the date on which the employer commences participation. Prior service credit
may be provided only for employees who are members of the system. Prior service
credit under this section may be provided for continuous service by the
employee to the public employer before the public employer commenced
participation in the system and for any accumulated seasonal employment by an
employee before the public employer commenced participation in the system. The
public employer and the board shall enter into an agreement that will specify
the number of years of prior service credit that employees of the employer will
receive. Prior service credit under this section shall be equal to $4 for each
year of prior service or major fraction of a year.
(2) If a public employer elects to provide
prior service credit under this section, the board shall issue a certificate to
each employee entitled to receive prior service credit. The certificate shall
show the amount of prior service credit that the employee is entitled to
receive under the agreement between the board and the public employer. The
certificate shall be final unless the board, upon the motion of the member or
upon the board’s own motion, modifies the certificate for cause.
(3) Prior service credit under this
section shall be funded by employer contributions in the manner provided by ORS
238.225.
(4) A public employer who agrees to
provide prior service credit under this section may elect to treat any year, or
part of a year, for which prior service credit is granted as a year in which
the employee is an active member for the purpose of becoming vested. An
election under this subsection must be made at the time the public employer
enters into the agreement providing for prior service credit. [2001 c.945 §75;
2001 c.945 §75a; 2003 c.67 §32]
(Miscellaneous)
238.445
Benefits exempt from execution, bankruptcy and certain taxes; exceptions.
(1) Except as provided in this section, the right of a person to a pension, an
annuity or a retirement allowance, to the return of contribution, the pension,
annuity or retirement allowance itself, any optional benefit or death benefit,
or any other right accrued or accruing to any person under the provisions of
this chapter or ORS chapter 238A, and the money in the various funds created by
ORS 238.660 and 238.670, shall be exempt from garnishment and all state, county
and municipal taxes heretofore or hereafter imposed, except as provided under
ORS chapter 118, shall not be subject to execution, garnishment, attachment or
any other process or to the operation of any bankruptcy or insolvency law
heretofore or hereafter existing or enacted, and shall be unassignable.
(2) Subsection (1) of this section does
not apply to state personal income taxation of amounts paid under this chapter
and ORS chapter 238A.
(3) Unless otherwise ordered by a court
under ORS 25.387, the exemption from execution or other process granted under
this section applies to 50 percent of amounts paid under this chapter and ORS
chapter 238A if the execution or other process is issued for a support
obligation or an order or notice entered or issued under ORS chapter 25, 107,
108, 109, 110, 416, 419B or 419C. [Formerly 237.201; 1999 c.80 §86; 1999 c.745 §3;
2003 c.733 §52; 2011 c.317 §8]
238.450
Computation of retirement allowance or benefit; notice of dispute.
(1) Upon receiving an application for a retirement allowance or benefit from a
member of the Public Employees Retirement System and obtaining information
necessary for computation of the retirement allowance or benefit to which the
member is entitled upon retirement, the system shall provide to the member a
written computation of the retirement allowance or benefit to which the member
is entitled upon retirement and summary of the information used in making that
computation.
(2) A member of the system may dispute the
accuracy of the information used by the system in making the computation only
by filing a written notice of dispute with the system not later than whichever
of the following days occurs last:
(a) The 240th day after the date on which
the computation and information summary is provided to the member pursuant to
subsection (1) of this section.
(b) The 240th day after the date on which
the retirement allowance or benefit to which the member is entitled first
becomes payable.
(3) The filing of a notice of dispute
under subsection (2) of this section extends the time allowed for election of
an optional form of retirement allowance or benefit until the 30th day after
the conclusion of the proceeding and any judicial review thereof if the
proceeding or review results in a change in the computation of the retirement
allowance or benefit.
(4) Upon receiving a notice of dispute
under subsection (2) of this section, the system shall determine the accuracy
of the disputed information and make a written decision either affirming the
accuracy of the information and computation based thereon or changing the
computation using corrected information. The system shall provide to the member
a copy of the decision and a written explanation of any applicable statutes and
rules. The member is entitled to judicial review of the decision as provided in
ORS 183.484 and rules of the board consistent with applicable statutes.
(5) This section does not affect any authority
of the system, on its own initiative, to correct an incorrect computation of
any retirement allowance or benefit. [Formerly 237.210; 2007 c.53 §1]
238.455
Estimated benefit payments. (1)(a) Whenever a member of the
system is retired for service and is entitled to receive a retirement allowance
or benefit that is payable monthly, and the Public Employees Retirement Board
is unable to calculate the amount of the monthly payment in time to allow
mailing of the monthly payment to the member within 62 days of the date the
first monthly payment is due, the board shall calculate an estimated amount for
the monthly payment based on the information then available to the board and
shall mail that payment to the member within 62 days of the date the first monthly
payment is due.
(b) Whenever a member of the system is
retired for disability and is entitled to receive a retirement allowance or
benefit that is payable monthly, and the board is unable to calculate the
amount of the monthly payment in time to allow mailing of the monthly payment
to the member within 10 days of either the date the board approves the member’s
application or the date that the first monthly payment is due, whichever is
later, the board shall calculate an estimated amount for the monthly payment
based on the information then available to the board and shall mail that
payment to the member within 10 days of the date the board approves the member’s
disability benefit, the date the board receives the member’s election of one of
the optional forms of disability retirement allowance or the date the first
monthly payment is due, whichever is later.
(2) The board shall continue to mail
estimated payments under subsection (1) of this section until such time as the
correct amount of the monthly payment is determined.
(3) The board shall notify the member
receiving an estimated payment under subsection (1) of this section that the
payment is an estimated payment only. The board shall further notify the member
of the provisions of subsection (4) of this section.
(4) If the board determines that any
estimated payment made to the member under subsection (1) of this section
resulted in payment to the member of an amount other than the correct amount
due the member as a retirement allowance or benefit, the board shall
immediately so notify the member. Thereafter, the board may increase or
decrease the monthly payment to the member until such time as the total
difference between the amount or amounts the member received and the amount or
amounts the member should have received is accounted for. Thereafter the member
shall receive the monthly payment as finally calculated by the board.
(5) If the estimated payment made to the
member under subsection (1) of this section results in an underpayment to the
member of $10 or more a month, the board shall pay interest on the balance of
such underpayment at a rate established by rule of the board until such time as
the underpayment is paid to the member pursuant to subsection (4) of this
section.
(6) No member shall have any right to any
allowance or other benefit other than that provided for in this chapter and ORS
chapter 238A based on the board’s estimate under this section or based on any
other estimate made by the board for any other purpose under this chapter and
ORS chapter 238A. [Formerly 237.159; 2003 c.733 §53; 2005 c.302 §1]
238.458
Unclaimed benefits. (1) A benefit that is owed to a
member or beneficiary of a member under the Public Employees Retirement System
shall be forfeited at the end of the system’s plan year in which the benefit
becomes due if the Public Employees Retirement Board is unable to locate the
member or beneficiary. If the member, beneficiary or any other person
thereafter establishes a right to the forfeited benefit, the board shall reinstate
the benefit. If the benefit is a periodic payment, the board shall make a
retroactive payment to the member, beneficiary or other person in a lump sum
for all amounts that would have been paid before reinstatement of the benefit.
No interest shall be paid on the benefit for the period commencing when the
benefit became due and the date of the retroactive payment.
(2) Death benefits and other amounts
payable by reason of the death of a member do not escheat to the state when the
member dies without heirs, devisees or beneficiaries designated under ORS
238.390. If a beneficiary has not been designated under ORS 238.390, and a
personal representative or a person filing an affidavit under ORS 114.505 to
114.560 fails to make claim for the benefits within one year after the member
dies, the benefits shall be forfeited to the Public Employees Retirement Fund
in the manner provided by subsection (1) of this section and are subject to
reinstatement only upon subsequent appointment of a personal representative or
the filing of an affidavit in the manner provided by ORS 114.505 to 114.560. If
benefits are paid to a personal representative or a person filing an affidavit
under ORS 114.505 to 114.560, the personal representative or person filing the
affidavit shall return to the board the amount that would otherwise escheat to
the state after payment of administrative expenses and claims against the
estate. Any amounts returned to the board under this subsection shall be
forfeited to the fund. [1999 c.317 §20; 2003 c.625 §2]
238.460
Waiver of retirement allowance. (1) If
receipt in full by a person of a retirement allowance or other benefit under
this chapter or ORS chapter 238A would prevent such person from receiving in
full any other governmental pension to which the person is entitled, such
person may waive for a calendar year sufficient monthly payments, or portions
thereof, of retirement allowance or other benefit under this chapter or ORS
chapter 238A to permit the person to receive in full the other governmental
pension. The waiver shall be made in writing and filed with the Public
Employees Retirement Board not less than 15 days before the first day of the
month to which the waiver applies.
(2) If for any month the waiver does not
apply to the full retirement allowance due under this chapter, the waiver
applies first to all or the necessary portion of prior service pension, then to
all or to the necessary portion of current service pension, and then to the
necessary portion of annuity.
(3) The waiver may be revoked at any time,
but no retirement allowance or other benefit waived for the period of time in
which the waiver is in effect shall be paid. The revocation shall be made in
writing and filed with the board. If a person dies during the period of time in
which the waiver is in effect, the waiver is considered revoked on the date of
such death. [Formerly 237.157; 2003 c.733 §54; 2005 c.22 §177]
238.462
Spousal consent required for certain optional forms of retirement allowance.
(1) A member of the Public Employees Retirement System who is married on the
effective date of the member’s retirement shall receive a service retirement
allowance in the form provided for in Option 3 under ORS 238.305 (1) or a
disability retirement allowance in the form provided for in Option 3 under ORS
238.325 (1) unless the member provides proof of spousal consent to receiving an
allowance in the form provided by ORS 238.300 or 238.320, or in one of the
optional forms provided for in ORS 238.305 and 238.325 other than Option 3.
(2) Except as provided in subsection (3)
of this section, a member of the system who is married on the effective date of
the member’s retirement may not change the form in which a retirement allowance
is paid after an election has been made as to the form of the retirement
allowance unless the member provides proof of spousal consent.
(3) A member of the system who is married
on the effective date of the member’s retirement is not required to provide
spousal consent to a change in the form in which a retirement allowance is paid
if the spouse of the member dies after the effective date of the member’s
retirement or disability and the change in the form of the allowance is made
within the time periods provided by ORS 238.305 and 238.325. A member seeking
to change the form of a retirement allowance without spousal consent under the
provisions of this subsection must provide a notarized statement to the Public
Employees Retirement Board that certifies to the board that the spouse of the
member is deceased.
(4) Any member of the system who is not
married on the effective date of the member’s retirement must provide a
notarized statement to the Public Employees Retirement Board that certifies to
the board that the member is not married. No retirement allowance may be paid
to a member of the system who is not married until the statement required by
this subsection is provided to the board.
(5) A member of the system who is married
on the effective date of the member’s retirement must provide proof of spousal
consent for the purposes of this section by submitting a statement to the board
that:
(a) Contains the notarized signature of
the member’s spouse;
(b) Indicates the form in which the
retirement allowance is to be paid; and
(c) Contains a statement that the member’s
spouse consents to the payment of the retirement allowance in the specified
form.
(6) If a member of the system who is
married on the effective date of the member’s retirement fails to provide proof
of spousal consent as required by this section, the board shall calculate and
pay to the member a retirement allowance in the form provided for in Option 3
under ORS 238.305 (1) if the retirement is for service, or a retirement
allowance in the form provided for in Option 3 under ORS 238.325 (1) if the
retirement is for disability. The allowance will be calculated based on the
ages of the member and the spouse, and the spouse will be designated as the
beneficiary for any survivor benefits that may thereafter become payable.
(7) Proof of spousal consent under this
section is not required for, and cannot alter, the designation of any form of a
retirement allowance that is required under the terms of any judgment of
annulment or dissolution of marriage or of separation, or the terms of any
court order or court-approved property settlement agreement incident to any
judgment of annulment or dissolution of marriage or of separation, that has
been received by the board in compliance with the requirements prescribed by
ORS 238.465. [1997 c.476 §2; 1999 c.407 §5; 2003 c.576 §404; 2005 c.22 §178]
238.465
Benefits payable to others under certain judgments; rules.
(1) Notwithstanding ORS 238.445 or any other provision of law, payments under
this chapter or ORS chapter 238A of any pension, annuity, retirement allowance,
disability benefit, death benefit, refund benefit or other benefit that would
otherwise be made to a person entitled thereto under this chapter or ORS
chapter 238A shall be paid, in whole or in part, by the Public Employees
Retirement Board to an alternate payee if and to the extent expressly provided
for in the terms of any judgment of annulment or dissolution of marriage or of
separation, or the terms of any court order or court-approved property
settlement agreement incident to any judgment of annulment or dissolution of
marriage or of separation. Notwithstanding any other provisions of this
section, the total value of benefits payable to a member and to an alternate
payee under this section may not be greater than the value of the benefits the member
would otherwise be eligible to receive. Any payment under this subsection to an
alternate payee bars recovery by any other person.
(2) A judgment, order or settlement
providing for payment to an alternate payee under subsection (1) of this
section may also provide:
(a) That payments to the alternate payee
may commence, at the election of the alternate payee, at any time after the
earlier of:
(A) The earliest date the member would be
eligible to receive retirement benefits if the member separates from service;
or
(B) The date the member actually separates
from service due to death, disability, retirement or termination of employment.
(b) That the alternate payee may elect to
receive payment in any form of pension, annuity, retirement allowance, disability
benefit, death benefit, refund benefit or other benefit, except a benefit in
the form of a joint and survivor annuity, that would be available to the member
under this chapter or ORS chapter 238A, or that would be available to the
member if the member retired or separated from service at the time of election
by the alternate payee, without regard to the form of benefit elected by the
member.
(c) That the alternate payee’s life is the
measuring life for the purpose of measuring payments to the alternate payee
under the form of benefit selected by the alternate payee and for the purpose
of determining necessary employer reserves.
(d) Except as provided in ORS 238.305 (10)
and 238.325 (7), that any person designated by the member as a beneficiary under
ORS 238.300, 238.305, 238.325, 238A.190 or 238A.400 be changed, even though the
member has retired and has begun receiving a retirement allowance or pension.
If a change of beneficiary is ordered under this paragraph, the board shall
adjust the anticipated benefits that would be payable to the member and the
beneficiary to ensure that the cost to the system of providing benefits to the
member and the new beneficiary does not exceed the cost that the system would
have incurred to provide benefits to the member and the original beneficiary.
The judgment, order or settlement may not provide for any change to the option
selected by the retired member under ORS 238.300, 238.305, 238.320, 238.325,
238A.190 or 238A.400 as to the form of the retirement benefit.
(3) The board shall adopt rules that
provide for:
(a) The creation of a separate account in
the name of the alternate payee reflecting the judgment’s, order’s or agreement’s
distribution of the member’s benefits under this chapter or ORS chapter 238A;
(b) The establishing of criteria to
determine whether domestic relations judgments, orders and agreements comply
with this section; and
(c) The definitions and procedures for the
administration of this section.
(4) An alternate payee may designate a
beneficiary for the purposes of death benefits payable under ORS 238.390 and
238.395. Subject to ORS 238A.410 (2), an alternate payee may designate a
beneficiary for the purposes of death benefits payable under ORS 238A.410. If
the alternate payee fails to designate a beneficiary for the purposes of death
benefits payable under ORS 238.390 and 238.395, the benefits shall be paid as
provided by ORS 238.390 (2). If the alternate payee fails to designate a
beneficiary for the purposes of death benefits payable under ORS 238A.410, the
benefits shall be paid as provided by ORS 238A.410 (3). If a judgment, order or
agreement awards an interest to an alternate payee, and if the alternate payee
predeceases the member before the alternate payee has commenced receiving benefits,
the alternate payee shall be considered a member of the system who died before
retiring for the purposes of the death benefits provided in ORS 238.390,
238.395, 238A.230 and 238A.410, but for purposes of the death benefits provided
in ORS 238.395, the alternate payee shall be considered a member of the system
who died before retiring only if the member would have been eligible for death
benefits under ORS 238.395 had the member died at the same time as the
alternate payee. Payment of the death benefits to the beneficiaries, estate or
other persons entitled to receive the benefits under ORS 238.390, 238.395,
238A.230 and 238A.410, shall constitute payment in full of the alternate payee’s
interest under the judgment, order or agreement.
(5) Any increase in the retirement
allowance provided to the member shall increase the amounts paid to the spouse
or former spouse of the member in the same proportion, except that an alternate
payee is not entitled to receive cost-of-living adjustments under ORS 238.360 or
any other retirement allowance increase until benefits are first paid from the
system on behalf of the member.
(6) An alternate payee under this section
is not eligible to receive the benefits provided under ORS 238.410, 238.415,
238.420 and 238.440 by reason of the provisions of this section.
(7) An alternate payee who elects to begin
receiving payments under subsection (1) of this section before the member’s
effective date of retirement is not eligible to receive any additional payment
by reason of credit in the system acquired by the member after the alternate
payee begins to receive payments.
(8) Subsection (1) of this section applies
only to payments made by the board after the date of receipt by the board of
written notice of the judgment, order or agreement and such additional
information and documentation as the board may prescribe.
(9) Whenever the board is required to make
payment to an alternate payee under the provisions of this section, the board
shall charge and collect out of the benefits payable to the member and the
alternate payee actual and reasonable administrative expenses and related costs
incurred by the board in obtaining data and making calculations that are
necessary by reason of the provisions of this section. The board may not charge
more than $300 for total administrative expenses and related costs incurred in
obtaining data or making calculations that are necessary by reason of the
provisions of this section. The board shall allocate expenses and costs charged
under the provisions of this subsection between the member and the alternate
payee based on the fraction of the benefit received by the member or alternate
payee.
(10) Unless otherwise provided by the
judgment, order or agreement, a member has no interest in the benefit payable
to an alternate payee under this section. Upon the death of an alternate payee,
the board shall make such payment to the beneficiary designated by the
alternate payee as may be required under the form of benefit elected by the
alternate payee. If a death benefit is payable under ORS 238.390 or 238.395 by
reason of the death of an alternate payee, payment of the death benefit shall
be made to the beneficiary designated by the alternate payee under ORS 238.390
(1), or as otherwise provided by ORS 238.390 and 238.395.
(11) As used in this section, “court”
means any court of appropriate jurisdiction of this or any other state or of
the District of Columbia. [Formerly 237.205; 2001 c.945 §§82,89; 2003 c.576 §405;
2003 c.733 §55; 2005 c.808 §32]
238.470
Interest on payments from fund. Interest is
not payable on any payment from the Public Employees Retirement Fund unless
specifically provided for in this chapter. [Formerly 237.202]
238.475
Effect of transfer of employee to another participating employer.
No transfer after July 1, 1946, by a member of the system from the service of
one employer participating in the system to the service of another such
employer shall impair any rights or deprive the member of any credits accruing
to the member as a result of membership in the system after July 1, 1946, and
prior to the transfer. [Formerly 237.101]
238.480
Effect of change to calendar year on contributions and credit of members.
All contributions made and all service credit earned under the Public Employes’
Retirement Act of 1953 prior to January 1, 1956, on the basis of a fiscal year
shall not be affected by the change from fiscal year basis to calendar year
basis on January 1, 1956, under the 1955 amendments of the Public Employes’
Retirement Act of 1953, and such contributions and credit are recognized as if
no such change had been made. [Formerly 237.107]
PUBLIC
EMPLOYEE BENEFIT EQUALIZATION FUND
238.485
Fund established. (1) Pursuant to section 415(m)
of the Internal Revenue Code, there is established a Public Employee Benefit
Equalization Fund, separate and distinct from the General Fund and from the
Public Employees Retirement Fund. The Public Employee Benefit Equalization Fund
is declared to be a trust fund. Interest earned on the fund, if any, shall
inure to the benefit of the fund. The Public Employees Retirement Board shall
administer the fund and shall act as trustee for the fund.
(2) The assets of the Public Employee
Benefit Equalization Fund that are attributable to the contributions of a
participating public employer pursuant to ORS 238.488 remain available to the
general creditors of the employer in the event of the employer’s insolvency
until those assets are distributed to members of the Public Employees
Retirement System, distributed to the beneficiaries of those members or used to
pay the administrative expenses of the fund. Before distribution, members of
the Public Employees Retirement System and beneficiaries of those members have
no right to or interest in any asset of the fund.
(3) All moneys paid into the fund shall be
deposited with the State Treasurer, who is custodian of the fund. The board may
draw warrants and issue checks on the fund in the same manner that it draws
warrants and issues checks on the Public Employees Retirement Fund.
(4) Any warrant, check or order issued by
the board for payment from the fund that is canceled, declared void, abandoned
or otherwise made unpayable pursuant to law because it is outstanding and
unpaid for a period of more than two years, may be reissued by the board
without bond if the payee is located after such warrant, check or order is
canceled, declared void, abandoned or otherwise made unpayable pursuant to law.
[1997 c.201 §2; 2005 c.808 §8]
238.488
Payment of benefits; employer contributions. (1) A
member of the Public Employees Retirement System, or the beneficiary of that
member, who by reason of the benefit limitations imposed by Internal Revenue
Code section 415 receives a retirement allowance under the system that is less
than the allowance the member or beneficiary would otherwise have received
under ORS chapter 238, excluding any payments the member or beneficiary may
receive under this section and ORS 238.485 and 238.490, shall receive from the
Public Employee Benefit Equalization Fund a monthly amount equal to the
difference. Any overpayment or improperly made payment from the Public Employee
Benefit Equalization Fund may be recovered from the member or beneficiary, or
from payments to the member or beneficiary from the Public Employee Benefit
Equalization Fund, in the same manner as provided in ORS 238.715 for recovery
of overpayments and improperly made payments from the Public Employees
Retirement Fund. Notwithstanding ORS 238.445, an overpayment or improperly made
payment from the Public Employee Benefit Equalization Fund may be recovered on
behalf of the Public Employee Benefit Equalization Fund from payments to the
member or beneficiary from the Public Employees Retirement Fund in the same
manner as provided in ORS 238.715 for recovery of overpayments and improperly
made payments from the Public Employees Retirement Fund if:
(a) No payments are being made to the
member or beneficiary from the Public Employee Benefit Equalization Fund at the
time recovery of an overpayment or improperly made payment is sought; or
(b) The Public Employees Retirement Board
in its discretion determines that the payments being made from the Public
Employee Benefit Equalization Fund are inadequate to ensure full recovery of
the overpayment or improperly made payment.
(2) A public employer that participates or
has participated in the Public Employees Retirement System and that employs or
has employed a member of the system who receives a benefit under subsection (1)
of this section, or whose beneficiary receives a benefit under subsection (1)
of this section, must contribute to the Public Employees Retirement Board a sum
equal to all amounts paid to the member or beneficiary that is attributable to
the member’s employment by the public employer, plus any amount assessed by the
board to pay administrative costs under ORS 238.490 (3). If the member has
retirement credit attributable to employment with more than one public
employer, the board shall allocate the costs of the benefit under this section among
the public employers involved, based on the member’s length of service with
each employer.
(3) A public employer that makes a
contribution to the Public Employee Benefit Equalization Fund under subsection
(2) of this section shall receive a credit equal to the amount of the
contribution against any obligation of the public employer to make
contributions to the Public Employees Retirement Fund under ORS 238.225. The
credit shall be equal to the amount paid by the employer to the board under
subsection (2) of this section less any sums paid to the board by the public
employer for administrative costs under ORS 238.490 (3). The board shall apply
the credit to reduce the public employer’s payment obligation under ORS 238.225
for the month in which the payment is made under this section. The credit does
not reduce any obligation below zero and any credit not used may be carried
over as a credit against future obligations under ORS 238.225.
(4) All amounts collected from public
employers under this section shall be deposited in the Public Employee Benefit
Equalization Fund established by ORS 238.485.
(5) The Public Employees Retirement Board
shall pay the benefits specified in subsection (1) of this section only to the
extent that the benefits have been funded by contributions made by the member’s
employer under subsection (2) of this section before the date on which the
benefits are to be paid. The Public Employees Retirement Board may enforce the
provisions of subsection (2) of this section in the manner provided in ORS
238.705 and 238.710 for the enforcement of employer contributions to the Public
Employees Retirement Fund.
(6) The board shall notify all
participating employers of the records and information needed for the
implementation and administration of this section. Each participating employer
shall maintain records for all employees who are members of the system, and all
former employees who have been members of the system, and shall supply the
board with all information required by the board to allow the board to identify
members and beneficiaries who are entitled to payment under subsection (1) of
this section. [1997 c.201 §3]
238.490
Administrative expenses. (1) The administrative expenses
incurred by the Public Employees Retirement Board in administering the Public
Employee Benefit Equalization Fund shall be paid from interest earned by the
fund. If the interest is insufficient, the excess expense shall be paid from
the contributions by participating employers under ORS 238.488.
(2) In order to facilitate financing the
establishment and administration of the Public Employee Benefit Equalization
Fund, the board may designate fiscal periods and may provide that extraordinary
expenses incurred during a period, such as expenses for equipment and actuarial
studies, may, for purposes of equitably distributing part of the burden of
expenses, be apportioned to subsequent fiscal periods in any manner that seems
equitable to the board.
(3) For each fiscal period designated by
the board, the administrative expenses of the fund for that period shall be
deducted from the interest earned by the Public Employee Benefit Equalization
Fund. If such interest be insufficient for such purpose, each employer
contributing to the Public Employee Benefit Equalization Fund shall pay a
fraction of those administrative expenses determined by dividing the employer’s
total contribution to the fund for the period by the sum of all the employers’
contributions to the fund for the period. [1997 c.201 §4]
238.492
Rules for administration of fund. The Public
Employees Retirement Board may adopt rules for the administration of ORS
238.485, 238.488 and 238.490. In adopting rules under this section, the board
shall consider and take into account all federal law requirements relating to
deferred compensation plans, including the requirements imposed for the
deferral of income tax on deferred compensation benefits until those benefits
are paid or made available to the recipient. [1997 c.201 §5]
Note:
238.492 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 238 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
JUDGE
MEMBERS
238.500
Definitions for ORS 238.500 to 238.585. As used in
ORS 238.500 to 238.585, unless the context requires otherwise:
(1) “Court” means the Supreme Court, the
Court of Appeals, the Oregon Tax Court and a circuit court.
(2) “Judge” means a judge of any court.
(3) “Judge member” means a judge who is a
member of the Public Employees Retirement System subject to ORS 238.500 to
238.585.
(4) “Service as a judge” means creditable
service, as defined by ORS 238.005, by a judge as:
(a) A regularly elected or appointed judge
of a court; or
(b) A regularly elected or appointed judge
of a court temporarily in another court. [Formerly 237.211]
238.505
Judges as PERS members. (1) Except as provided in
subsection (2) of this section, a person who is not a judge on December 31,
1983, and who is elected or appointed to the office of judge on or after
January 1, 1984, shall become a judge member on the date the person takes the
office.
(2) A person who, by reason of the age at
which becoming a judge, could not make contributions to the Public Employees
Retirement Fund during each of five calendar years as a judge member at or
before attaining the age of 75 years shall not become a judge member. [Formerly
237.215]
238.510
[Renumbered 237.350 in 1995]
238.515
Contributions. (1)(a) Each judge member shall
contribute monthly to the Public Employees Retirement Fund seven percent of the
monthly salary of the judge member. The contributions of a judge member and
earnings on the contributions shall be credited to the member account of the
judge member.
(b) The state shall pick-up, assume or pay
the full amount of contributions to the fund required of judge members. The
full amount of required judge member contributions picked-up, assumed or paid
by the state on behalf of judge members shall be considered salary only for the
purpose of computing a judge member’s final average salary within the meaning
of ORS 238.535 (2) and not for any other purpose. The full amount of required
judge member contributions picked-up, assumed or paid by the state on behalf of
judge members shall be added to the member account of the judge members and
shall be considered judge member contributions for all other purposes of ORS
238.500 to 238.585.
(2) The state shall make employer
contributions to the fund in respect to judge members as provided in ORS
238.225. Notwithstanding ORS 238.227, for the purposes of actuarial computation
and contributions of the state under ORS 238.225, judge members shall be
considered a separate group of employees. [Formerly 237.217; 2001 c.945 §59;
2005 c.808 §25]
238.520
[Renumbered 237.355 in 1995]
238.525
Compulsory retirement age. A judge member shall be retired
from judicial office at the end of the calendar year in which the judge member
attains the age of 75 years. [Formerly 237.219]
238.530
[Renumbered 237.360 in 1995]
238.535
Service retirement allowance. (1) Prior to
attaining 60 years of age, all judge members shall elect in writing to retire
under either paragraph (a) or (b) of this subsection. The election shall be
irrevocable after the judge member attains 60 years of age. Any judge member
who fails to make the election provided for in this subsection prior to
attaining 60 years of age shall be retired under the provisions of paragraph
(a) of this subsection.
(a) Upon retiring from service as a judge
at the age of 65 years or thereafter, a judge member who has made contributions
to the Public Employees Retirement Fund during each of five calendar years
shall receive as a service retirement allowance, payable monthly, a life
pension (nonrefund) provided by the contributions of the judge member and the
state in an annual amount equal to 2.8125 percent of final average annual
salary multiplied by the number of years of service as a judge not exceeding 16
years of service as a judge and 1.67 percent of final average salary multiplied
by the number of years of service as a judge exceeding 16 years of service as a
judge, but the annual amount shall not exceed 65 percent of final average
salary.
(b) Upon retiring from service as a judge
at the age of 60 years or thereafter, a judge member who has made contributions
to the Public Employees Retirement Fund during each of five calendar years
shall receive as a service retirement allowance, payable monthly, a life
pension (nonrefund) provided by the contributions of the judge member and the
state in an annual amount equal to 3.75 percent of final average salary
multiplied by the number of years of service as a judge not exceeding 16 years
of service as a judge and two percent of final average salary multiplied by the
number of years of service as a judge exceeding 16 years of service as a judge,
but the annual amount shall not exceed 75 percent of final average salary.
(c) Any judge member electing to retire
under paragraph (b) of this subsection shall serve as a pro tem judge, without
compensation, for 35 days per year for a period of five years. A judge who
serves more than 35 days per year may carry over the additional days to fulfill
the pro tem service obligation in future years. The five-year period shall commence
on the judge member’s date of retirement or the date on which the judge member
commences pro tem service under ORS 238.545 (4), whichever is earlier. Judge
members may be reimbursed for expenses incurred in providing pro tem services
under this paragraph. Upon certification from the Chief Justice that any judge
member who retired under paragraph (b) of this subsection has failed to perform
the pro tem services required under this paragraph, and has not been relieved
of the obligations to perform those services in the manner provided by this
paragraph, the Public Employees Retirement Board shall recalculate the service
retirement allowance of the noncomplying judge member as though the judge
member elected to retire under paragraph (a) of this subsection, and the
noncomplying judge member shall receive only that recalculated amount
thereafter. A judge may be relieved of the pro tem service obligation imposed
by this paragraph if the judge fails for good cause to complete the obligation.
A retired judge member who is relieved of the obligation to serve as a pro tem
judge shall continue to receive the retirement allowance provided in paragraph
(b) of this subsection.
(d) For the purpose of paragraph (c) of
this subsection:
(A) “Good cause” includes, but is not
limited to:
(i) Physical or mental incapacitation of a
judge that prevents the judge from discharging the duties of judicial office;
(ii) Failure of the appointing authority
to assign a judge to the requisite amount of pro tem service, whether because
of insufficient need for pro tem judges, a determination by the appointing
authority that the skills of a judge do not match the needs of the courts,
clerical mistake, or otherwise; or
(iii) Death of a judge.
(B) “Good cause” does not include:
(i) A judge’s refusal, without good cause,
to accept pro tem assignments sufficient to meet the required amount; or
(ii) A judge’s affirmative voluntary act
that makes the judge unqualified to serve as a judge of this state including,
but not limited to, failure to maintain active membership in the Oregon State
Bar, acceptance of a position in another branch of state government, or
acceptance of a position in the Government of the United States or of another
state or nation.
(e) The Chief Justice may make rules for
the implementation of this subsection.
(2) As used in subsection (1) of this
section, “final average salary” means whichever of the following is greater:
(a) The average salary per calendar year
paid to a judge member in three of the calendar years of service as a judge
before the judge member retires, in which three years the judge member was paid
the highest salary.
(b) One-third of the total salary paid to
a judge member in the last 36 calendar months of service as a judge before the
judge member retires.
(3) As used in subsection (1) of this
section, “number of years of service” means the number of full years plus any
remaining fraction of a year. In determining a remaining fraction, a full month
shall be considered as one-twelfth of a year and a major fraction of a month
shall be considered as a full month.
(4) For a judge who elects to become a
judge member as provided in ORS 237.215 (3) (1989 Edition), the service
retirement allowance under subsection (1) of this section on retirement at the
age of 70 years and either 12 years of service or two full six-year terms as a
judge shall be at least the equivalent of the retirement pay the judge would
have received had the judge retired under ORS 1.314 to 1.390 (1989 Edition).
(5) A judge member who has made
contributions to the Public Employees Retirement Fund during each of five
calendar years and who attains the age of 60 years shall be retired upon
written application by the judge member to the board on a reduced service
retirement allowance that shall be the actuarial equivalent of the service
retirement allowance provided for in subsection (1)(a) of this section.
(6) For the purposes of this section, a
judge who elects to become a judge member as provided in ORS 237.215 (3) (1989
Edition) shall be considered to have made contributions to the Public Employees
Retirement Fund during one calendar year for each calendar year during which
the judge made contributions to the Judges’ Retirement Fund.
(7)(a) Notwithstanding subsection (1)(a)
of this section, the maximum percentage used in calculating the annual amount
of the life pension (nonrefund) for a judge who is a judge member on September
27, 1987, or who elected to become a judge member in the manner provided by ORS
237.215 (3)(b) or (4)(b) (1989 Edition), shall be the percentage specified by
paragraph (b) of this subsection if either:
(A) On September 27, 1987, the judge had
more than 28 years of service that were creditable either under the system; or
(B) On September 27, 1987, the judge had
more than 28 years of service that were creditable under the Judges’ Retirement
Fund established pursuant to ORS 1.314 to 1.390 (1989 Edition) and the judge
became a member of the system under the provisions of ORS 237.215 (3)(b) (1989
Edition).
(b) The maximum percentage used in
calculating the annual amount of the life pension (nonrefund) of a judge member
who meets the requirements of paragraph (a) of this subsection shall not exceed
45 percent plus 1.67 percent multiplied by the number of years of service as a
judge that exceed 16 years and that were served on or before September 27,
1987.
(c) In computing the annual amount of the
life pension of a judge who meets the requirements of paragraph (a) of this
subsection, the board shall use the percentage specified by paragraph (b) of
this subsection and the final average salary of the judge computed on the date
of retirement, not the final average salary of the judge computed as of
September 27, 1987. In making the computation under this subsection, the board
shall use the definition of “final average salary” provided by ORS 238.535 as
amended by section 2, chapter 625, Oregon Laws 1987. [Formerly 237.220; 1997
c.801 §19; 1999 c.317 §21; 2005 c.22 §179]
238.538
Health benefit plans for certain retired judge members.
(1) A judge member who elects to retire under ORS 238.535 (1)(b):
(a) Shall continue to be eligible as a
nonretired employee for health benefit plans contracted for under ORS 243.135
during the time that the judge member is serving as a pro tem judge under ORS
238.535 (1)(c); and
(b) Subject to availability of funding,
shall continue to receive the monthly state contribution as payment of all or
part of the cost of a health benefit plan during the time that the judge member
is serving as a pro tem judge under ORS 238.535 (1)(c).
(2) A judge member receiving the monthly
state contribution as payment of all or part of the cost of a health benefit
plan under this section is not eligible for payments against the cost of
Medicare supplemental insurance under ORS 238.420 until such time as the judge
member is no longer serving as a pro tem judge under ORS 238.535 (1)(c). [2001
c.823 §6]
238.540
[Renumbered 237.365 in 1995]
238.545
Withdrawal of member account; retirement allowance of inactive judge member.
(1) Except as otherwise provided in this section, a judge member may withdraw
from the Public Employees Retirement Fund the amount credited to the member
account of the judge member if:
(a) The judge member is separated from all
service with participating public employers;
(b) The judge 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 Public Employees Retirement System and the Public Employees
Retirement Fund as a qualified governmental retirement plan and trust;
(c) The judge member has not attained 60
years of age; and
(d) The separation from service is not by
reason of death or disability.
(2) If a judge member wishes to withdraw
the member account balance under this section, the judge 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 judge 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 judge
member separates from service.
(3) If a judge member who is eligible to
withdraw as provided in subsection (1) of this section does not elect to
withdraw, the member account of the judge member shall remain to the credit of
the judge member, and the judge member is entitled to such death benefits and
disability retirement allowance as ORS 238.500 to 238.585 provide. Before
attaining 60 years of age, a judge member who is eligible to withdraw as
provided in subsection (1) of this section but who does not withdraw must elect
in writing to retire under either ORS 238.535 (1)(a) or (b). The election is
irrevocable after the judge member attains 60 years of age. Any inactive judge
member who fails to make the election provided for in this subsection prior to
attaining 60 years of age shall be retired under the provisions of ORS 238.535
(1)(a). The service retirement allowance of an inactive judge member who
retires under ORS 238.535 (1)(a) shall be a reduced service retirement
allowance that is the actuarial equivalent of the service retirement allowance
provided for in ORS 238.535 (1)(a). An inactive judge member who elects to
retire under ORS 238.535 (1)(b) must meet all other requirements imposed by ORS
238.535 for retirement under ORS 238.535 (1)(b).
(4) If approved by the Chief Justice of
the Supreme Court, an inactive judge member who elects to retire under ORS
238.535 (1)(b) pursuant to the provisions of subsection (3) of this section may
commence to serve the pro tem service obligation imposed by ORS 238.535 before
the judge member’s date of retirement. If the Chief Justice determines, at any
time after the judge member commences performing the pro tem service
obligation, that the judge member has failed to perform the pro tem services in
the manner required by ORS 238.535 (1)(c), and the judge member has not been
relieved of the obligation to perform those services in the manner provided by
ORS 238.535 (1)(c), the Chief Justice shall notify the Public Employees Retirement
Board. If the judge member has not yet retired, the board shall calculate the
service retirement allowance of the noncomplying judge member at the time of
retirement in the manner provided by ORS 238.535 (1)(a). If the judge member
has retired, the board shall recalculate the service retirement allowance of
the noncomplying judge member in the manner provided by ORS 238.535 (1)(a), and
the noncomplying judge member shall receive only that recalculated amount
thereafter. An inactive judge member may be relieved of the pro tem service
obligation imposed by ORS 238.535 (1)(c) in the same manner as provided in ORS
238.535 for retired judge members.
(5) Withdrawal of the member account
balance under this section cancels all membership rights in the system,
including the right to claim credit for any employment before withdrawal.
(6) ORS 238.105 and 238.115 (1) apply to a
former judge member who has withdrawn the member account balance under this
section. [Formerly 237.223; 1997 c.801 §20; 1999 c.317 §6; 2001 c.566 §1; 2001
c.945 §60]
238.550
[Renumbered 237.370 in 1995]
238.555
Disability retirement allowance. (1)(a) A
judge member who has not attained the age of 65 years and who is found to be
mentally or physically incapacitated for an extended duration, as determined by
medical examination by one or more physicians selected by the board, and
thereby unable to perform any work for which qualified, by injury or disease
sustained while in actual performance of duty and not intentionally
self-inflicted, shall be retired for disability and shall receive as a
disability retirement allowance, payable monthly, a pension equal to the
service retirement allowance to which the judge member would be entitled under
ORS 238.535 (1)(a), had the judge member served as a judge continuously until
attaining the age of 65 years, but not less than an annual amount equal to 45
percent of the final average salary, as defined in ORS 238.535 (2), of the
judge member.
(b) As used in paragraph (a) of this
subsection, “injury” means bodily injury causing the disability directly and
independently of all other causes and effected solely through accidental means.
(2) A judge member who has six or more
years of service as a judge, who has not attained the age of 65 years and who
is found to be mentally or physically incapacitated for an extended duration,
as determined by medical examination by one or more physicians selected by the
board, and thereby unable to perform any work for which qualified, from cause
other than injury or disease sustained while in actual performance of duty and
not intentionally self-inflicted, shall be retired for disability and shall
receive as a disability retirement allowance, payable monthly, a pension equal
to the service retirement allowance to which the judge member would be entitled
under ORS 238.535 (1)(a) had the judge member served as a judge continuously
until attaining the age of 65 years, but not less than an annual amount equal
to 45 percent of the final average salary, as defined in ORS 238.535 (2), of
the judge member.
(3) The effective date of the disability
of a judge member shall not be determined by the board as prior to the last day
for which the judge member performed service as a judge.
(4) No disability retirement allowance may
be paid for any month in which the judge member received salary or sick leave
benefits from the state.
(5) ORS 238.320 (4) and (5), 238.330 (3),
238.335 and 238.340 apply to retirement of a judge member for disability.
(6) A judge member who is retired under
the provisions of ORS 1.310 is entitled to any applicable retirement allowance
for which eligible under ORS 238.500 to 238.585. [Formerly 237.225]
238.560
[Renumbered 237.375 in 1995]
238.565
Beneficiary of judge; spouse’s pension. (1) For the
purposes of this section, the beneficiary of the judge member shall be any
person, or the personal representative of the estate of the judge member, or a
trustee named by the judge member to execute an express trust, whom the judge
member designates as a beneficiary by written designation duly acknowledged and
filed with the board before the death of the judge member.
(2)(a) If a judge member who has six or
more years of service as a judge dies before retiring, and the judge member is
not an inactive judge member who is performing a pro tem service obligation
under the provisions of ORS 238.545 (4), the surviving spouse of the judge
member shall receive a life pension, payable monthly, equal to two-thirds of
the service retirement allowance the judge member would have received under ORS
238.535 (1)(a) had the judge member retired on the date of death.
(b) If a judge member who has six or more
years of service as a judge dies before retiring, and the judge member is an
inactive member who is performing a pro tem service obligation under the
provisions of ORS 238.545 (4), the surviving spouse of the judge member shall
receive a life pension, payable monthly, equal to two-thirds of the service
retirement allowance the judge member would have received under ORS 238.535
(1)(b) had the judge member retired on the date of death.
(c) If a surviving spouse receiving a
pension under paragraph (a) or (b) of this subsection dies and the total amount
received as pension by the surviving spouse is less than the amount credited to
the member account of the judge member in the fund on the date of death of the
judge member, the beneficiary shall receive a lump sum amount equal to the
difference between the total amount received by the surviving spouse and the
amount so credited to the member account of the judge member.
(d) If a judge member who has six or more
years of service as a judge dies before retiring and has no surviving spouse,
the beneficiary shall receive a lump sum amount equal to the amount credited to
the member account of the judge member in the fund on the date of death of the
judge member.
(e) If the surviving spouse of a judge
member who dies before retiring is not entitled to a pension under paragraph
(a) or (b) of this subsection, the surviving spouse shall receive a lump sum
amount equal to the amount credited to the member account of the judge member
in the fund on the date of death of the judge member.
(3)(a) If a judge member dies after
retiring, the surviving spouse of the judge member shall receive a life pension,
payable monthly, equal to two-thirds of the retirement allowance the judge
member is receiving or is entitled to receive on the date of death.
(b) If a surviving spouse receiving a
pension under paragraph (a) or (b) of this subsection dies and the total amount
received as retirement allowance by the retired judge member and as pension by
the surviving spouse is less than the amount credited to the member account of
the judge member on the date of retirement of the judge member, the beneficiary
shall receive a lump sum amount equal to the difference between the total
amount received as retirement allowance and pension and the amount so credited
to the member account of the judge member.
(c) If a judge member dies after retiring
and has no surviving spouse, and the total amount received as retirement
allowance by the retired judge member is less than the amount credited to the
member account of the judge member on the date of retirement of the judge
member, the beneficiary shall receive a lump sum amount equal to the difference
between the total amount received as retirement allowance and the amount so
credited to the member account of the judge member.
(4) At any time after becoming a judge
member, but not later than the date on which the first payment on account of
retirement is due, a judge member may elect to provide an addition to the
pension of the surviving spouse of the judge member under subsection (3)(a) of
this section by selecting a reduced retirement allowance for the judge member.
The additional pension to the surviving spouse shall be the actuarial
equivalent of the reduction in the retirement allowance of the judge member
and, in no event, when added to the pension under subsection (3)(a) of this
section, shall it exceed the reduced retirement allowance elected by the judge
member.
(5) Any accrued retirement allowance due a
retired judge member that is unpaid at the time of death of the judge member
shall be paid to the surviving spouse of the judge member. If there is no
surviving spouse, the accrued retirement allowance shall be paid to the
beneficiary of the judge member. If there is no surviving spouse or
beneficiary, the accrued retirement allowance shall be paid as provided in ORS
238.390 (2).
(6) Notwithstanding any other provision of
this section, a judge member shall be considered to have died with no surviving
spouse if:
(a) The judge member has entered into a
prenuptial or antenuptial agreement with the spouse of the judge that provides
that the spouse shall have no right or claim to a surviving spouse’s pension;
and
(b) The judge member has filed a copy of
the prenuptial or antenuptial agreement with the board before the death of the
judge member.
(7) The board shall not be liable for any
payment made to a beneficiary by reason of a prenuptial or antenuptial
agreement filed with the board under subsection (6) of this section unless the
board has actual knowledge that the agreement has been revoked.
(8) A judge member may elect to have all
or part of the pension that is payable to a surviving spouse under this section
be paid to a former spouse of the judge member. The election may be made before
or after the judge member retires. If a judge member makes an election under
this subsection, the board shall pay the designated portion of pension to the
former spouse for the life of the former spouse. If a judge member is married
at the time an election is made under this subsection, the spouse of the judge
member must give written consent to the election. An election under this subsection
does not affect the amount of any additional pension elected by a judge member
under subsection (4) of this section. If a judge member makes an election under
this subsection and the judge member does not have a surviving spouse when the
judge member dies, the former spouse shall receive a life pension for only that
part of the pension specified in the election. If a judge member makes an
election under this subsection and the judge member has a surviving spouse when
the judge member dies:
(a) The surviving spouse shall receive no
benefit if the judge member elected to have the entire pension payable under
this section paid to the former spouse; or
(b) The surviving spouse shall receive
that part of the pension not paid to the former spouse until the death of the
former spouse. [Formerly 237.227; 1997 c.801 §21; 1999 c.317 §22; 2001 c.945 §61;
2003 c.625 §5; 2007 c.527 §1]
238.570
[Renumbered 237.380 in 1995]
238.575
Cost-of-living adjustments; ad hoc increase. (1)
Every monthly retirement allowance or pension payable to a judge member or
surviving spouse of a judge member under ORS 238.500 to 238.585 shall be
adjusted annually to reflect the percentage increase or decrease in the cost of
living as provided in ORS 238.360.
(2) ORS 238.368 applies to judge members,
and for that purpose the monthly retirement allowance referred to in ORS
238.368 shall be the monthly retirement allowance payable to a judge member or
the monthly pension payable to the surviving spouse of a judge member under ORS
238.565 (3)(a). [Formerly 237.230; 2001 c.945 §71]
238.580
Application of PERS laws to judges. (1) ORS
238.005 (4) and (26), 238.025, 238.078, 238.082, 238.092, 238.115 (1), 238.250,
238.255, 238.260, 238.350, 238.364, 238.410, 238.415, 238.420, 238.445, 238.458,
238.460, 238.465, 238.475, 238.600, 238.605, 238.610, 238.618, 238.630,
238.635, 238.645, 238.650, 238.655, 238.660, 238.665, 238.670 and 238.705 and
the increases provided by ORS 238.366 for members of the system who are serving
as other than police officers or firefighters apply in respect to service as a
judge member.
(2) This chapter applies in respect to
persons described in ORS 238.505 (1) and in respect to service as a judge
member only as specifically provided in ORS 238.500 to 238.585. [Formerly
237.233; 1999 c.317 §23; 2001 c.945 §62; 2005 c.152 §9; 2011 c.9 §25; 2011
c.637 §74a]
238.585
Use of creditable service by person who serves as both member and judge member;
restoration of forfeited rights upon becoming judge member.
(1) A judge member who has creditable service as other than a judge member is
entitled to the use of all creditable service as a judge member for the purpose
of establishing eligibility under ORS 238.115, 238.125, 238.135 or any other
provision of this chapter that requires a specified number of years of
creditable service.
(2) A judge member who has creditable
service as other than a judge member is entitled to use of all creditable
service as other than a judge member for the purpose of establishing
eligibility under the provisions of ORS 238.366, 238.415, 238.420 or any other
provision of this chapter that is applicable to a judge member and that
requires a specified number of years of creditable service.
(3) A member of the system other than a
judge member who separates from all service entitling the person to membership
in the system and who withdraws the amount credited to the member account of
the member in the fund may restore all rights forfeited by the withdrawal in
the manner specified by ORS 238.105 if the person becomes a judge member within
five years after the date that the person is separated from all service
entitling the person to membership in the system. [1995 c.658 §136; 2001 c.945 §63]
ADMINISTRATION
(Public
Employees Retirement System)
238.600
System established; legislative intent. (1) A system
of retirement and of benefits at retirement or death for employees of public
employers hereby is established and shall be known as the Public Employees
Retirement System. The Public Employees Retirement System consists of this
chapter and ORS chapter 238A. It is the intent of the Legislative Assembly that
the system be qualified and maintained under sections 401(a), 414(d) and 414(k)
of the Internal Revenue Code as a tax-qualified defined benefit governmental
plan.
(2) If the Public Employees Retirement
System is terminated, or if contributions may no longer be made to the system,
each member of the system has a nonforfeitable right to the benefits that the
member has accrued as of the date of the termination, or as of the date that
contributions may no longer be made to the system, to the extent that those
benefits are funded. [Formerly 237.005; 1997 c.121 §2; 1999 c.317 §9; 2003
c.733 §55a; 2005 c.808 §1]
238.601
Legislative findings and intent; administration of system.
The Legislative Assembly finds that the maintenance of a solid, affordable
public employees retirement plan is essential to providing effective, efficient
services to the citizens of Oregon by allowing the state and political
subdivisions of the state to hire and retain employees who are committed to
providing those services. It is the intent of the Legislative Assembly that the
Public Employees Retirement Board, in performing its duties as trustee of the
Public Employees Retirement Fund, recognize that the continued stability and
viability of the Public Employees Retirement System depends on the ability of
public employers and taxpayers to pay the costs of the system. Consistent with
this intent, the board shall administer the system to create and maintain
long-term stability and viability in the system, and shall act to achieve full
funding for the benefits provided by the system, giving equal consideration to
the interests of the public employer and the employee to the extent that treatment
does not violate the fiduciary duties of the board. Nothing in this section
shall be construed to impose a fiduciary duty on the board to consider the
interests of public employers, and the board shall consider the interests of
public employers only with respect to matters unrelated to the board’s
fiduciary duties as trustee of the fund. [2001 c.945 §2]
238.605
Actuarial report on system. At least once every two years
the board shall cause a competent actuary familiar with public systems of
retirement and death benefits to prepare a report evaluating the current and
prospective assets and liabilities of the system and indicating its current and
prospective financial condition. In preparing the report the actuary shall
investigate the mortality, disability, service and other experience of the
members of, and employers participating in the system, shall state fully the
condition of the system, and shall make such recommendations as the actuary
deems advisable to facilitate administering it properly. The board shall
publish and distribute a summary of the report to all the public employers
participating in the system. The board may authorize the transfer of any
portion of the funds collected under the provisions of ORS 238.225 to carry out
the recommendations of the actuary. [Formerly 237.285]
238.607
Actuarial equivalency factor tables. (1) Once
every two calendar years, the Public Employees Retirement Board shall adopt
actuarial equivalency factor tables for the purpose of computing the payments
to be made to members and their beneficiaries, alternate payees and judge
members and their spouses and beneficiaries. The tables may be adopted in
conjunction with the system evaluation required by ORS 238.605. Tables adopted
under this section must use the best actuarial information on mortality
available at the time the board adopts the tables, as provided by the actuary
engaged by the board. Actuarial equivalency factor tables adopted under this
section become effective on January 1 of the calendar year following adoption
of the tables by the board. All computations of payments must use the actuarial
equivalency factor tables that are in effect on:
(a) The effective date of retirement for
any member, judge member or alternate payee;
(b) The date that the first payment is due
for any death beneficiary; or
(c) The date that the first payment is due
for any recalculation of payments that is not attributable to error, including
but not limited to recalculations under ORS 238.465 (2).
(2) The board may not defer or delay
implementation of the actuarial equivalency factor tables adopted under this
section. [2003 c.68 §2]
Note:
Sections 3 and 4, chapter 68, Oregon Laws 2003, provide:
Sec.
3. The Public Employees Retirement Board
shall first adopt actuarial equivalency factor tables under section 2 of this
2003 Act [238.607] to become effective January 1, 2005. [2003 c.68 §3]
Sec.
4. (1) Subject to subsections (2) and (3)
of this section, for the purpose of computing the retirement allowance of
members and alternate payees with effective dates of retirement on or after
July 1, 2003, and before January 1, 2005, the Public Employees Retirement Board
shall use actuarial equivalency factor tables that are based on the mortality
assumptions of the actuary’s 2001 experience study as adopted by the board on
September 10, 2002.
(2) The retirement allowance of any member
or alternate payee who has an effective date of retirement on or after July 1,
2003, shall be the higher of the following amounts:
(a) The amount calculated for the
retirement allowance selected by the member under ORS 238.300, 238.305, 238.320
or 238.325 determined as of the member’s or alternate payee’s effective date of
retirement, using all calculations applicable to the member under ORS 238.300
(2) and using actuarial equivalency factor tables in effect on the effective
date of retirement for the purpose of all calculations using actuarial
equivalency factor tables; or
(b) The amount calculated under subsection
(3) of this section.
(3) For each member or alternate payee
described in subsection (2) of this section, the board shall establish years of
service, an account balance and a final average salary as of June 30, 2003.
Years of service for the member as of June 30, 2003, shall include all creditable
service of the member determined as of June 30, 2003, including any retirement
credit acquired by the member under ORS 238.105 to 238.175 before July 1, 2003.
The account balance shall include all employee contributions made by or on
behalf of the member as of June 30, 2003, and earnings on those contributions
as of June 30, 2003, credited in the manner provided by board rules in effect
on May 9, 2003, governing crediting of earnings upon retirement of a member.
The board shall then calculate the retirement allowance selected by the member
under ORS 238.300, 238.305, 238.320 or 238.325, using all calculations
applicable to the member under ORS 238.300 (2), except that:
(a) The board shall use the actuarial
equivalency factor tables in effect on June 30, 2003, for the purpose of all
calculations using actuarial equivalency factor tables; and
(b) The board shall use the years of
service, account balance and final average salary established by the board
under this subsection for the member as of June 30, 2003.
(4) The board need not perform the
calculations described in subsections (2) and (3) of this section for a member
if the board actuarially determines that one of the calculations described in
subsection (2) or (3) of this section necessarily provides the highest amount.
(5) Any monthly payments to be made to a
death beneficiary under ORS 238.390, 238.395 or 238.405 for a member who dies
on or after May 9, 2003, shall be calculated using the actuarial equivalency
factor tables that are in effect on the date that the first payment is due to
the death beneficiary.
(6) This section and section 2, chapter
68, Oregon Laws 2003 [238.607], do not apply to the calculation of the
retirement allowance and surviving spouse pension of a person who is a judge
member on June 30, 2003, and who makes an election under ORS 238.565 (4). The
board shall use the actuarial equivalency factor tables in effect on June 30,
2003, for the purpose of calculating the retirement allowance and surviving
spouse pension of a person who is a judge member on June 30, 2003, and who
makes an election under ORS 238.565 (4), whether that election is made before,
on or after June 30, 2003. [2003 c.67 §40; 2003 c.68 §4; 2003 c.625 §16]
238.608
Separate actuarial equivalency factor tables for certain police officers and
firefighters. (1) The Public Employees Retirement
Board shall conduct a study of the life expectancy of members of the Public
Employees Retirement System in the categories described in subsection (2) of
this section. If the board determines that members in the categories described
in subsection (2) of this section have a life expectancy that is substantially
shorter than the life expectancy of members of the system generally, the board
shall adopt and use separate actuarial equivalency factor tables under ORS
238.607 for the purpose of computing the payments to be made to members in the
categories described in subsection (2) of this section and to the beneficiaries
and alternate payees of those members. Any actuarial equivalency factor tables
adopted under this section shall first become effective January 1, 2005.
(2) The provisions of this section apply
to members of the system who are defined as firefighters under ORS 238.005 or
as police officers under ORS 238.005 (19)(a), (b), (d), (e), (f), (g), (L),
(m), (o), (p) or (q). [2003 c.68 §7; 2003 c.625 §18; 2011 c.9 §26; 2011 c.506 §34;
2011 c.637 §74b]
238.610
Administrative expenses of system. (1) The
administrative expenses of the Public Employees Retirement System shall be paid
from interest earned by the Public Employees Retirement Fund; provided, that if
such interest be insufficient the expense in excess thereof shall be paid from
the contributions which this chapter and ORS 238A.220 and 238A.240 require
participating employers to pay into the Public Employees Retirement Fund. The
Public Employees Retirement Board by rule may establish procedures for
recovering administrative costs from members for services provided in
estimating retirement benefit amounts and processing payments if the board
determines that the services requested by an individual member result in
extraordinary costs to the system.
(2) In order to facilitate financing the
establishment and administration of the system the board may designate fiscal
periods and may provide that extraordinary expenses incurred during one such
period, such as expenses for equipment and actuarial studies, may, for purposes
of equitably distributing part of the burden of the expenses, be apportioned to
subsequent fiscal periods in such manner as to the board seems equitable.
(3) For each fiscal period designated by
the board there shall be deducted from the interest earned by the fund, the
administrative expenses of the system for that period; provided, that if such
interest be insufficient for such purpose, the excess expense shall be paid by
deducting from the account of each employer participating in the system that
fraction of the administrative expense of the system for that period which the
employer’s total contribution to the fund for the period is of the sum of all
the employers’ contributions to the fund for the period.
(4) Amounts payable as refunds and
retirement allowances shall not for any purpose be deemed expenses of the board
and shall not be included in its biennial departmental budget. [Formerly
237.291; 2003 c.105 §5; 2003 c.733 §56]
238.615
Revolving fund for payment of administrative expenses.
(1) On request from the Public Employees Retirement System, the Oregon
Department of Administrative Services shall draw warrants on amounts authorized
for payment of the administrative expenses of the system for use by the system
as a revolving fund. The revolving fund shall not exceed the aggregate sum of
$5,000 including unreimbursed advances. The revolving fund shall be deposited
with the State Treasurer to be held in a special account against which the
system may draw checks.
(2) The revolving fund may be used by the
system to pay travel expenses for employees of the system and for any
consultants or advisors for whom payment of travel expenses is authorized by
law, or advances therefor, or for salary advances or payment to terminating
employees, or for receipt and disbursement of funds made available to the
system through vocational rehabilitation training programs.
(3) All claims for reimbursement of
amounts paid from the revolving fund shall be approved by the system and by the
department. When such claims have been approved, a warrant covering them shall
be drawn in favor of the system and charged against the appropriate fund or
account and shall be used to reimburse the revolving fund. [Formerly 237.293]
238.618
Exclusion of employer or employee from system to maintain tax qualification.
Notwithstanding any other provision of law, the Public Employees Retirement Board
may deny or terminate participation by an employer in the Public Employees
Retirement System, and may deny or terminate membership in the system for any
employee, if the board determines that allowing participation by the employer
or membership for the employee would cause the system or the Public Employees
Retirement Fund to lose qualification as a qualified governmental retirement
plan and trust under the Internal Revenue Code and under regulations adopted
pursuant to the Internal Revenue Code. [1999 c.317 §3]
238.620
[1995 c.296 §2; repealed by 1999 c.317 §14]
238.625
[1995 c.296 §3; 1997 c.179 §20; repealed by 1999 c.317 §14]
(Public
Employees Retirement Board)
238.630
Board generally; rules. (1) The governing authority of
the system shall be a board known as the Public Employees Retirement Board and
consisting of five members appointed by the Governor subject to confirmation by
the Senate in the manner provided in ORS 171.562 and 171.565. Except as
otherwise provided in ORS 238.640, the term of each member shall be three
years. The Governor shall designate one member to serve as chairperson, who
shall serve as chairperson at the pleasure of the Governor.
(2) The board shall have:
(a) The powers and privileges of a
corporation, including the right to sue and be sued in its own name as such
board; and
(b) The power and duty, subject to the
limitations of this chapter and ORS chapter 238A, of managing the system.
(3) The board:
(a) Shall arrange for actuarial service
for the system;
(b) Shall employ a director;
(c) Shall create such other positions as
it deems necessary to sound and economical administration of the system, which
positions the director shall fill by appointment;
(d) Shall, with the approval of the
Director of the Oregon Department of Administrative Services, and as otherwise
provided by law, fix the salaries of all persons employed for purposes of
administering the system;
(e) Shall publish and distribute to all
employer and employee members of the system an annual report including a
summary of investments of moneys in the fund, investment earnings, significant
legislative or administrative changes in the system and other pertinent
information on the operation of the system for the preceding year;
(f) Shall determine the actuarial
equivalency of optional forms of retirement allowances and pensions and adopt
for that purpose the necessary actuarial equivalency factor tables in the
manner provided by ORS 238.607, which shall constitute a part of the system;
and
(g) Shall adopt rules and take all actions
necessary to maintain qualification of the Public Employees Retirement System
and the Public Employees Retirement Fund as a qualified governmental retirement
plan and trust under the Internal Revenue Code and under regulations adopted
pursuant to the Internal Revenue Code. Rules under this paragraph may impose
limits on contributions to the system, limits on benefits payable from the
system and other limitations or procedures required or imposed under federal
law or regulation for the purpose of qualification of the Public Employees
Retirement System and Public Employees Retirement Fund under the Internal
Revenue Code as a governmental retirement plan and trust.
(4) The board established by this section
shall succeed to all the duties and prerogatives of the Public Employees
Retirement Board created by chapter 401, Oregon Laws 1945, in relation to the
Public Employees Retirement Fund, and in addition shall perform all duties
required of it by ORS 237.950 to 237.980, in regard to moneys payable to or
from such fund.
(5) The board shall identify by rule those
records that must be maintained by participating public employers for the
purposes of subsection (3)(g) of this section. A participating public employer
shall maintain records for all employees who are members of the system as
required by board rules, and shall provide that information to the board upon
request. [Formerly 237.251; 1997 c.121 §3; 2001 c.945 §6; 2003 c.68 §8; 2003
c.69 §1; 2003 c.733 §57]
238.635
Board consideration of system goals and objectives.
The Public Employees Retirement Board shall include a study of accounting,
reporting and related subjects when considering the goals and objectives of the
Public Employees Retirement System. [Formerly 237.253]
238.640
Qualifications of board members. (1) All
members of the Public Employees Retirement Board must be at least 21 years of
age, be citizens of the United States and have been residents of the state for
at least two years immediately preceding appointment to the board.
(2) One member of the board must be:
(a) An employee of the state in a
management position at the time of appointment and throughout the term of
appointment; or
(b) A person who holds an elective office,
by election or appointment, in the governing body of a participating public
employer, other than the state.
(3) One member of the board must be
either:
(a) A retired member of the Public
Employees Retirement System who retired from a position in an appropriate
bargaining unit as defined in ORS 243.650; or
(b) A public employee, as defined in ORS
243.650, who is in an appropriate bargaining unit, as defined in ORS 243.650,
and who has an exclusive representative at the time of the member’s appointment
and throughout the term of the member. Membership on the board does not affect
the status of the person as a public employee, as defined in ORS 243.650.
(4) Three members of the board must have
experience in business management, pension management or investing. A member
appointed under this subsection may not be a member of the Public Employees
Retirement System or a beneficiary of a member of the system, and may not have
any interest in benefits provided by the system.
(5) Notwithstanding the qualifications
established for members of the board under this section, all members of the
board have the same fiduciary duties and must exercise the same degree of
independent judgment.
(6) Any vacancy on the board shall be
filled by appointment for the unexpired term of the member replaced. Members of
the board may be reappointed.
(7) Except as provided in subsection (8)
of this section, a member of the board is entitled to compensation and expenses
as provided in ORS 292.495 from the Public Employees Retirement Fund.
(8) Any member of the board who is an
active member of the system shall be released by the participating public
employer who employs the member for the purpose of conducting the official
business of the board. The wages or salary of the member shall not be reduced
during periods that the member is released from duty for the purpose of
conducting the official business of the board. The board shall reimburse a
public employer for the cost of continuing the wages or salary of the member
while the member is released from duty under this subsection. A member who
continues to receive wages or salary under the provisions of this subsection
shall not receive compensation under ORS 292.495, but shall receive travel and
other expenses provided for under ORS 292.495. The provisions of this
subsection do not apply to any person who is a member of the board and who
holds another office that is subject to the provisions of section 10, Article
II of the Oregon Constitution, prohibiting the holding of more than one
lucrative office. [Formerly 237.255; 1997 c.324 §1; 2001 c.945 §6a; 2003 c.69 §2;
2010 c.1 §1]
238.645
Director and staff. The system shall be
administered, subject to the limitations of this chapter, ORS chapter 238A and
the budget prescribed by the board, by the director provided for by ORS 238.630
and by a staff which the board authorizes and which the director appoints. The
director shall hold that position during the discretion of the board and the
members of the staff shall hold their respective positions during the
discretion of the director. No member of the staff may be removed from it,
however, in a manner contrary to the laws of the state regarding civil service.
The director shall furnish such bond as is required by the board. [Formerly
237.259; 2003 c.733 §58]
238.646
Authority of Director of Public Employees Retirement System to require
fingerprints. For the purpose of requesting a state
or nationwide criminal records check under ORS 181.534, the Director of the
Public Employees Retirement System may require the fingerprints of a person
who:
(1)(a) Is employed or applying for
employment by the system; or
(b) Provides services or seeks to provide
services to the system as a contractor, vendor or volunteer; and
(2) Is, or will be, working or providing
services in a position:
(a) In which the person is providing
information technology services and has control over, or access to, information
technology systems that would allow the person to harm the information
technology systems or the information contained in the systems;
(b) In which the person has access to
information, the disclosure of which is prohibited by state or federal laws,
rules or regulations or information that is defined as confidential under state
or federal laws, rules or regulations;
(c) That has payroll functions or in which
the person has responsibility for receiving, receipting or depositing money or
negotiable instruments, for billing, collections or other financial
transactions or for purchasing or selling property;
(d) That has mailroom duties as the
primary duty or job function of the position;
(e) In which the person has access to
personal information about employees or members of the public including Social
Security numbers, dates of birth, driver license numbers, personal financial
information or criminal background information;
(f) In which the person provides security,
design or construction services for government buildings, grounds or
facilities; or
(g) In which the person has responsibility
for auditing within the system. [2005 c.730 §76]
Note:
238.646 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 238 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
238.650
Rules of board; written plan document. (1) Subject
to the limitations of this chapter and ORS chapter 238A, the Public Employees
Retirement Board shall, from time to time, establish rules for transacting its
business and administering the system in accordance with the requirements of
ORS chapter 183.
(2) All rules adopted by the board become
part of the written plan document of the Public Employees Retirement System for
the purpose of 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. [Formerly 237.263; 1999 c.317 §1; 2003 c.733 §59]
238.655
Procedure for board hearings. In order to
determine any facts necessary to the administration of the retirement system,
the board may conduct hearings, subpoena and examine witnesses and require any
person having custody thereof to bring before the board any book, record,
document, certificate, writing, article or thing necessary to a determination
of facts. The chairperson or member of the board acting in such capacity shall
have authority to administer oaths. The procedure in such hearings shall be
informal. Fees shall not be paid to witnesses who are public officers or employees,
whether or not their employer is participating in the system. No public
employer shall make deduction from the compensation of public officers or
employees because of absence from their respective positions in order to be
examined as witnesses before the board. The fees of other witnesses and mileage
of any witness shall be as allowed by law to witnesses in ORS 44.415 (2). Fees
and mileage and all other necessary disbursements in connection with a hearing
shall be paid by the public employer whose failure or refusal to supply any
facts requested of it by the board made necessary such hearing. [Formerly
237.315]
238.657
Board counsel. The Attorney General shall consult with
the Governor on appointment of separate counsel pursuant to ORS 180.235 to
represent the Public Employees Retirement Board in any matter or in any class
of matters in which the benefits payable under the Public Employees Retirement
System are at issue, including but not limited to defending the provisions of
chapter 67, Oregon Laws 2003. [2003 c.67 §14a; 2005 c.22 §180]
Note:
Legislative Counsel has substituted “chapter 67, Oregon Laws 2003,” for the
words “this 2003 Act” in section 14a, chapter 67, Oregon Laws 2003, compiled as
238.657. Specific ORS references have not been substituted, pursuant to
173.160. The sections for which substitution otherwise would be made may be
determined by referring to the 2003 Comparative Section Table located in Volume
20 of ORS.
(Public
Employees Retirement Fund)
238.660
Fund generally; board review of legislative proposals.
(1) The Public Employees Retirement Fund is declared to be a trust fund,
separate and distinct from the General Fund, for the uses and purposes set
forth in this chapter and ORS chapter 238A and ORS 237.950 to 237.980, and for
no other use or purpose, except that this provision shall not be deemed to
amend or impair the force or effect of any law of this state specifically
authorizing the investment of moneys from the fund. Interest earned by the fund
shall be credited to the fund. Except as otherwise specifically provided by
law, the Public Employees Retirement Board established by ORS 238.630 is
declared to be the trustee of the fund. Consistent with the legislative intent
expressed in ORS 238.601, and to the extent it is consistent with the board’s
fiduciary duties, the board shall give equal consideration to the interests of
participating public employers and the interests of members. Nothing in this
subsection shall be construed to impose a fiduciary duty on the board to consider
the interests of public employers, and the board shall consider the interests
of public employers only with respect to matters unrelated to the board’s
fiduciary duties as trustee of the fund.
(2) Until all liabilities to members and
their beneficiaries are satisfied, assets of the fund may not be diverted or
otherwise put to any use that is not for the exclusive benefit of members and
their beneficiaries. This subsection does not limit return of employer
contributions for health benefits in the manner provided by ORS 238.410,
238.415 and 238.420 upon satisfaction of all liabilities for health benefits
under those sections.
(3) The State of Oregon and other public
employers that make contributions to the fund have no proprietary interest in
the fund or in the contributions made to the fund by them. The state and other
public employers disclaim any right to reclaim those contributions and waive
any right of reclamation they may have in the fund. This subsection does not
prohibit alteration or refund of employer contributions if the alteration or
refund is authorized under this chapter or ORS chapter 238A and is due to
erroneous payment or decreased liability for employer contributions under the
system. This subsection does not prohibit the offset of contributions to the
individual account program under ORS 238.229 (5).
(4) The board may accept gifts of money or
other property from any source, given for the uses and purposes of the system.
Money so received shall be paid into the fund. Money or other property so
received shall be used for the purposes for which received. Unless otherwise
prescribed by the source from which the money or other property is received,
the money shall be considered as income of the fund and the other property
shall be retained, managed and disposed of as are investments of the fund.
(5) All moneys paid into the fund shall be
deposited with the State Treasurer, who shall be custodian of the fund and pay
all warrants drawn on it in compliance with law. No such warrant shall be paid
until the claim for which it is drawn is first approved by the director or
designee and otherwise audited and verified as required by law. Monthly, each
beneficiary’s gross benefit shall be calculated; applicable deductions made for
taxes, insurance and other withholdings; and the net amount paid to the
beneficiary, by check or by electronic funds transfer (EFT) to the beneficiary’s
bank. A deduction summary shall be made, by type, and a check issued for the
aggregate of each type for transmittal to the appropriate taxing jurisdiction,
vendor or institution. A voucher shall be prepared and transmitted to the
Oregon Department of Administrative Services for reimbursement of the checking
account, and the department shall draw a warrant on the State Treasurer,
payable to the Public Employees Retirement System, for the amount thereof.
(6) Any warrant, check or order for the
payment of benefits or refunds under the system out of the fund issued by the
board which is canceled, declared void or otherwise made unpayable pursuant to
law because it is outstanding and unpaid for a period of more than two years,
may be reissued by the board without bond if the payee is located after such
warrant, check or order is canceled, declared void or otherwise made unpayable
pursuant to law.
(7) All references in this chapter to
checks or warrants are subject to the provisions of ORS 291.001.
(8) The board shall provide for an annual
audit of the retirement fund and for an annual report to the Legislative
Assembly and to all members of, retirees of, and all employers participating
in, the system. The annual report must contain financial statements prepared in
accordance with generally accepted accounting principles. The financial
statements must include the report of any independent auditor.
(9) The board may review legislative
proposals for changes in the benefits provided under this chapter and ORS
chapter 238A and may make recommendations to committees of the Legislative
Assembly on those proposed changes. In making recommendations under this
subsection, the board acts as a policy advisor to the Legislative Assembly and
not as a fiduciary. In making recommendations under this subsection on the
Oregon Public Service Retirement Plan established by ORS chapter 238A, the
board shall seek to maintain the balance between benefits and costs, and the
relative risk borne by employers and employees with respect to investment
performance, reflected in ORS chapter 238A as in effect on January 1, 2004.
(10) The board shall appoint a committee
to advise the board on legislative proposals for changes in the benefits
provided under this chapter and ORS chapter 238A. The committee must have an
equal number of members representing labor and management. No costs of
reviewing legislative proposals and making recommendations under this
subsection may be charged to the fund. Any member of the committee who is an
active member of the system shall be released by the participating public
employer who employs the member for the purpose of conducting the official
business of the committee, and the wages or salary of the member may not be
reduced by the employer during periods that the member is released from duty
for the purpose of conducting the official business of the committee. [Formerly
237.271; 1997 c.121 §1; 1999 c.317 §8; 1999 c.407 §6; 2001 c.945 §3; 2003 c.17 §2;
2003 c.625 §29; 2003 c.733 §60; 2009 c.889 §2]
238.661
Moneys in fund appropriated to board. Moneys in the
Public Employees Retirement Fund are continuously appropriated to the Public Employees
Retirement Board to carry out the purposes of this chapter and ORS chapter
238A. [2001 c.716 §10; 2003 c.733 §61]
238.665
Contributions and interest not included in board’s budget.
Contributions required by this chapter or ORS chapter 238A to be placed in the
retirement fund, and interest required to be allocated to the member accounts
of members of the retirement system and to participating employers, shall not
be included in the biennial departmental budget of the board. [Formerly
237.279; 2001 c.945 §64; 2003 c.733 §62]
238.667
[2001 c.945 §17; repealed by 2003 c.67 §38]
238.670
Reserve accounts in fund. (1) At the close of each
calendar year in which the earnings on the Public Employees Retirement Fund
equal or exceed the assumed interest rate established by the Public Employees
Retirement Board under ORS 238.255, the board shall set aside, out of interest
and other income received through investment of the Public Employees Retirement
Fund during that calendar year, such part of the income as the board may deem
advisable, not exceeding seven and one-half percent of the combined total of
such income, which moneys so segregated shall remain in the fund and constitute
therein a reserve account. The board shall continue to credit the reserve account
in the manner required by this subsection until the board determines that the
reserve account is adequately funded for the purposes specified in this
subsection. Such reserve account shall be maintained and used by the board to
prevent any deficit of moneys available for the payment of retirement
allowances, due to interest fluctuations, changes in mortality rate or, except
as provided in subsection (3) or (4) of this section, other contingency. In
addition, the reserve account may be used by the board for the following
purposes:
(a) To prevent any deficit in the fund by
reason of the insolvency of a participating public employer. Reserves under
this paragraph may be funded only from the earnings on employer contributions
made under ORS 238.225.
(b) To pay any legal expenses or judgments
that do not arise in the ordinary course of adjudicating an individual member’s
benefits or an individual employer’s liabilities.
(c) To provide for any other contingency
that the board may determine to be appropriate.
(2) At the close of each calendar year,
the board shall set aside, out of interest and other income received during the
calendar year, after deducting the amounts provided by law and to the extent
that such income is available, a sufficient amount to credit to the reserves
for pension accounts and annuities varying percentage amounts adopted by the
board as a result of periodic actuarial investigations. If total income
available for distribution exceeds those percentages of the total accumulated
contributions of employees and employers, the reserves for pensions and
annuities shall participate in such excess.
(3) The board may set aside, out of
interest and other income received through investment of the fund, such part of
the income as the board considers necessary, which moneys so segregated shall
remain in the fund and constitute one or more reserve accounts. Such reserve
accounts shall be maintained and used by the board to offset gains and losses
of invested capital. The board, from time to time, may cause to be transferred
from the reserve account provided for in subsection (1) of this section to a
reserve account provided for in this subsection such amount as the board
determines to be unnecessary for the purposes set forth in subsection (1) of
this section and to be necessary for the purposes set forth in this subsection.
(4) The board may provide for amortizing
gains and losses of invested capital in such instances as the board determines
that amortization is preferable to a reserve account provided for in subsection
(3) of this section.
(5) At least 30 days before crediting any
interest and other income received through investment of the Public Employees
Retirement Fund to any reserve account in the fund, the board shall submit a
preliminary proposal for crediting to the appropriate legislative review
agency, as defined in ORS 291.371 (1), for its review and comment. [Formerly
237.281; 2001 c.945 §5]
238.672
Crediting of earnings to employer upon death or retirement of member.
Upon the death or retirement of a member of the Public Employees Retirement
System, the Public Employees Retirement Board shall credit earnings to the
participating public employer or employers that employed the member. The board
shall credit earnings to the amounts charged to each employer by reason of the
death or retirement. The earnings rate used by the board shall be the same rate
that the board uses for crediting member accounts at the time the charge is
made. [2001 c.945 §21]
238.675
Transfer of unclaimed death benefit or account balance to other account or
reserve. (1)(a) Any benefit payment that is
payable as the result of the death of a member may be transferred by the Public
Employees Retirement Board to another account or reserve in the fund if:
(A) The total benefit payable to the
beneficiaries designated by the deceased member is less than $250 in amount;
(B) Ten years have passed since the death
of the member; and
(C) No claim has been made for the benefit
payment.
(b) Amounts transferred under this section
shall be credited to accounts or reserves in the fund designated by the board
in its discretion.
(c) The board shall establish procedures
for the filing of a delayed claim by a beneficiary of a deceased member who
would otherwise be entitled to receive a benefit payment. Delayed claims may be
filed after the 10-year period provided for in paragraph (a) of this
subsection.
(2)(a) The Public Employees Retirement
Board may transfer the amount credited to the member account of a former member
to another account or reserve in the fund if:
(A) The total amount credited to the
member account of the former member is less than $250;
(B) The membership of the person in the
system has been terminated under the provisions of ORS 238.095 (2) or the
membership of the person in the pension program or individual account program
has been terminated under ORS 238A.110 or 238A.310; and
(C) Ten years have passed since the former
member ceased to be a member of the system and no claim has been made for
payment of the amount credited to the member account of the former member.
(b) Amounts transferred under this section
shall be credited to reserves or accounts in the fund designated by the board
in its discretion.
(c) The board shall establish procedures
for the filing of a delayed claim by a former member of the system who would
otherwise be entitled to receive amounts credited to the member account of the
former member. Delayed claims may be filed after the 10-year period provided
for in paragraph (a) of this subsection. [Formerly 237.295; 2001 c.945 §65;
2003 c.733 §63]
(Integration
of Other Retirement Systems)
238.680
Integration of other retirement systems. (1) Employees
whose membership in a previously established retirement system excludes them
from membership in the system established by this chapter may apply to the
Public Employees Retirement Board in writing for the former system to be
integrated into the latter and for them to be allowed to become members of the
latter. Whenever two-thirds of them and their employer, through its governing
body, so apply, the board:
(a) May cause a financial and actuarial
investigation of the proposed integration to be made, the cost of which shall
be borne by the previously established system; and
(b) May upon such terms as are set forth
in a contract between the board and the employer, integrate the previously
established system into the system established by this chapter.
(2) Nothing in this chapter nor any action
taken pursuant thereto shall reduce or impair the benefits which employees who
are receiving benefits from a retirement system integrated with the system
provided by this chapter would have received had the integration not been
effected.
(3) A retirement plan which has been
adopted by an association organized pursuant to the provisions of ORS chapter
239 (1997 Edition), prior to April 8, 1953, and which exists on April 8, 1953,
may be integrated into the retirement system established by this chapter in the
manner prescribed in this subsection and not otherwise:
(a) A proposed form of contract setting
forth all the terms, conditions and provisions of the integration shall be
prepared by, and adopted by a majority vote of, the board of trustees of the
association and approved by the board of directors of the school district in
which the association is organized.
(b) The proposed contract so adopted and
approved shall be submitted to a vote of the active members of the association.
In submitting a proposed contract, an association shall follow the procedure
provided in its bylaws for the promulgation and adoption of bylaws.
(c) Adoption by the membership of an
association of a proposed contract of integration shall be by an affirmative
vote of not less than two-thirds of the active members of the association at
the time of the election.
(d) The proposed contract so formulated,
approved and adopted shall be submitted to the retirement board created by ORS
238.630 for acceptance or rejection. In the event that the proposed contract is
accepted by the board, then the integration shall proceed in accordance with
the provisions of the contract.
(e) No contract of integration shall in
any way alter, impair or adversely affect any rights, benefits or privileges
which have vested under the provisions of law in a member of an association by
virtue of retirement, either on account of disability or on account of having
attained the retirement age, prior to the effective date of the contract of
integration.
(f) A contract of integration formulated,
approved and adopted as provided in this subsection shall contain provisions
whereby there will be provided to each active member of the association who
becomes a member of the retirement system created by this chapter pursuant to a
contract of integration, retirement benefits, in addition to the retirement
benefits accruing for subsequent service under the Public Employes’ Retirement
Act of 1953, determined in compliance with sound actuarial practice and with
the findings of an accredited actuary on the basis of the reserves of the
members at the time of the integration.
(g) A contract of integration shall
likewise provide that any active member of an association which integrates with
the retirement system may elect at the time of the integration as to whether
the member shall obtain a refund of the amount standing to the credit of the
member on the books of the association at the time of the integration. In the
event that a member so elects, then the amount standing to the credit of the
member shall be refunded and the additional benefits provided under paragraph
(f) of this subsection shall not be available to the member to whom the refund
is made.
(4) If a public employer applies for
inclusion of a class of employees under ORS 238.035, application for
integration under subsection (1) of this section shall be made by the employer
and by two-thirds of the class of employees who are to become members of the
system, or if the class designated under ORS 238.035 is covered by a collective
bargaining agreement, application for the class shall be approved under the
terms of the collective bargaining agreement.
(5) If a public employer entering into an
integration contract under the provisions of this section continues to maintain
the public employer’s previously established system for the purpose of
providing benefits to some or all of the employer’s employees who become
members of the system under the integration contract, the board may allow an
employee or alternate payee to waive the right to receive all other benefits
that would otherwise be paid under this chapter if:
(a) The employee or alternate payee elects
to receive a refund of accumulated member contributions along with interest
credited to those contributions at the time of refund; and
(b) The employer certifies to the board
that the waiver of benefits other than the refund of member contributions is
required as a condition of the employee’s or alternate payee’s receipt of
benefits under the previously established system.
(6) A waiver under subsection (5) of this
section must be made before an employee’s effective date of retirement or the
effective date of an alternative payee’s election to commence receiving
payments. The waiver is irrevocable as to the benefits waived and applies to
all future payment of those benefits that would otherwise be made to the
employee, the alternate payee or the beneficiaries of the employee or alternate
payee. The provisions of subsection (5) of this section apply only to:
(a) Employees of the public employer who
become members of the system under the provisions of the integration contract
and who are participants in the previously established system of the public
employer at the time the integration contract goes into effect; and
(b) Alternate payees of employees
described in paragraph (a) of this subsection. [Formerly 237.051; 1997 c.551 §1;
1999 c.130 §6]
238.685
Method of payment of unfunded obligation under integration contract.
(1) The school district, which is or expects to become a party to a contract of
integration described in ORS 238.680 (3), may provide for payment of all or any
part of its unfunded obligation for previous service costs with respect to the
association by any one or a combination of the following methods:
(a) By agreeing to pay such portion of the
obligation to the Public Employees Retirement System over a period of not to
exceed 40 years, together with an appropriate rate of interest as determined by
the Public Employees Retirement Board and the board of directors of the school
district.
(b) By issuing one or more series of
general obligation bonds for the estimated amount of such portion of the
obligation and paying it from the proceeds or interest thereon. Except as
provided in subsection (2) of this section, the initial authorization for the
original issue of such bonds shall require approval of the electors of the
district and shall otherwise conform to all requirements of law governing the
issuance, sale, redemption, refunding and refinancing of bonds by the school
district, the retention, segregation and use of bond proceeds and the levy of
taxes for their payment.
(c) By issuing other notes, contracts or
evidences of indebtedness for the estimated amount of such portion of the
obligation and paying it therewith or from the proceeds or interest thereon.
The interest rate on such notes, contracts or evidences of indebtedness shall
be such as the board of directors of the school district finds is reasonably
competitive with interest rates on bonds which could be issued pursuant to
paragraph (b) of this subsection.
(d) By contracting with an insurance
company authorized to write annuity contracts in this state to assume and pay
the pensions of retired, active or former members of the association.
(2) Such agreement, bonds, notes,
contracts or evidences of indebtedness, or any part of them, may be issued or
entered into without an election, but in such case:
(a) To the extent the principal and
interest on such agreement, bonds, notes, contracts or evidences of
indebtedness are paid from operating taxes within the district’s permanent tax
rate limit, the school district shall each year divide its operating taxes into
two portions, both within the district’s permanent tax rate limit, and one of
such portions shall be the amount used to pay the principal and interest on
such agreement, bonds, notes, contracts or evidences of indebtedness for such
year and the proceeds of such portion shall not be used for other purposes; and
(b) To the extent the principal and
interest on such agreement, bonds, notes, contracts or evidences of
indebtedness are paid from revenues other than operating tax proceeds, the
school district need not divide its levy as provided in paragraph (a) of this
subsection and the principal and interest may be paid out of such other
revenues.
(3) Part or all of the agreement, bonds,
notes, contracts or evidences of indebtedness authorized by this section may be
issued prior to or after the execution of the contract of integration. The
validity or enforceability thereof shall not be affected by the terms of the contract
of integration or by whether operating taxes are properly apportioned as
provided in subsection (2)(a) of this section. [Formerly 237.053; 1997 c.541 §359;
2001 c.945 §81]
238.690
Integration of retirement plan of mass transit district.
(1) A retirement plan that has been adopted by a mass transit district
organized under ORS 267.010 to 267.390 situated in a metropolitan statistical
area with a population exceeding 400,000 may be integrated with, or the
district may become a participant in, the Public Employees Retirement System in
the manner prescribed in subsection (2) of this section.
(2)(a) A proposed form of contract setting
forth all the terms, conditions and provisions of the integration or
participation shall be a mandatory subject of bargaining subject to the
provisions of ORS 243.650 to 243.782.
(b) The proposed contract shall be
submitted to a vote of the employees of the mass transit district, or the
members of the affected bargaining unit of the applicable labor organization,
and the board of directors of the mass transit district. In submitting a
proposed contract to its members, the labor organization shall follow the
procedure provided in its bylaws for the promulgation and adoption of bylaws.
(c) Adoption by the employees or members
of the affected bargaining unit of the applicable labor organization of the
proposed contract of integration or participation shall be by an affirmative
vote of not less than two-thirds of the affected employees or active members of
the affected bargaining unit of the applicable labor organization at the time
of the election.
(d) The proposed contract so formulated,
approved and adopted shall be submitted to the Public Employees Retirement
Board. The board may exercise its authority to negotiate and enter into a
contract with the mass transit district that would accomplish the integration
or participation without adversely affecting the current operational and
capital requirements of the mass transit district. The board may not enter into
any contract that prevents those adverse effects by adjusting the level of
benefits received by any of the employees of the mass transit district.
(e) A contract of prospective
participation does not in any way alter, impair or adversely affect any rights,
benefits or privileges that have vested under the provisions of law or
collective bargaining agreement in an employee of a mass transit district by
virtue of retirement, either on account of disability or on account of having
attained the retirement age, prior to the effective date of the contract of
integration or participation.
(f) When a public employer enters into a
contract with the board under this section, the public employer shall agree to
eventually extend coverage under this chapter to all eligible employees of the
employer through subsequent contracts with the board.
(3) For the purposes of this section, “metropolitan
statistical area” has that meaning given that term in ORS 267.010. [Formerly
237.037; 2009 c.11 §20]
(Bonding
of Pension Liabilities)
238.692
Definitions for ORS 238.692 to 238.698. As used in
ORS 238.692 to 238.698:
(1) “Pension liability” means:
(a) Monetary obligations of a
participating public employer for which the employer is or will be required to
transmit amounts to the Public Employees Retirement Board under the provisions
of ORS 238.225, including any obligations arising out of an integration
contract under ORS 238.680, or any other liability of a public body that is
attributable to an obligation to pay pensions or other retirement benefits to
officers or employees of the public body, whether active or retired; and
(b) Monetary obligations of a public
employer arising out of an integration contract under ORS 238.680 for which the
employer is required to transmit amounts to the Public Employees Retirement
Board.
(2) “Public body” has the meaning given
that term in ORS 287A.001.
(3) “State agency” means any officer,
board, commission, department, division or institution in the administrative
branch of state government. [2001 c.945 §23; 2007 c.783 §77]
238.694
Certain public bodies authorized to issue bonds to finance pension liabilities;
revenue bonds. (1) The Legislative Assembly finds that
authorizing issuance of revenue bonds to finance pension liabilities may reduce
the cost of public pensions to taxpayers and that the reduction of those costs
to taxpayers is a matter of statewide concern.
(2) Notwithstanding the limitation on
indebtedness in ORS 287A.105 or any other limitation on indebtedness or
borrowing under state or local law, for the purpose of obtaining funds to pay
the pension liability of a public body, the governing body of a public body may
authorize and cause the issuance of revenue bonds under ORS chapter 287A.
(3) The governing body of a public body
may pledge the full faith and credit and taxing power of the public body to the
payment of the principal and interest on bonds issued under ORS 238.692 to
238.698, and any premium on those bonds.
(4) Unless the charter of a county
provides a lower limit, a county may issue revenue bonds to finance pension
liabilities in an amount that does not exceed five percent of the real market
value of the taxable property within the boundaries of the county.
(5) Revenue bonds authorized under this
section need not comply with the procedure specified in ORS 287A.150.
(6) A public body that issues revenue
bonds under this section may also issue revenue bonds for the purpose of
refunding the bonds.
(7) A public body may enter into
indentures or other agreements with trustees or escrow agents for the issuance,
administration or payment of bonds authorized under this section. [2001 c.945 §24;
2003 c.746 §8; 2005 c.443 §2; 2007 c.783 §78]
238.695
Intergovernmental agreements for collective issuance, administration or payment
of bonds. (1) Public bodies may enter into
intergovernmental agreements for the collective issuance, administration or
payment of bonds authorized under ORS 238.694. An agreement for collective
issuance, administration or payment of bonds under this subsection may provide
for the contribution and pooling of the assets of the public bodies as security
for the bonds, and may make provisions for such other matters as the public
bodies determine convenient. Notwithstanding ORS 190.080, any intergovernmental
entity created by public bodies under this section shall have the power to
issue bonds as described in ORS 238.694. The bonds may be issued and sold as
parity bonds, issued and sold individually or issued and sold in such
combinations or forms as determined to be appropriate by the public bodies.
(2) Proceeds of bonds sold under an
intergovernmental agreement entered into under this section, and any other
funds or assets of a public body, together with interest or earnings on the
proceeds, funds and assets, may be consolidated into one or more funds or
accounts and may be pledged to the holders of the bonds.
(3) Public bodies may enter into
indentures or other agreements with trustees or escrow agents for the issuance,
administration or payment of bonds pursuant to an intergovernmental agreement
entered into under this section.
(4) The State Treasurer may cooperate
with, assist and provide recommendations to public bodies, and any
intergovernmental entity created by public bodies under this section, relating
to all matters involved in the issuance, administration and payment of bonds.
Any expenses incurred by the State Treasurer in providing assistance to public
bodies under this section may be paid as an administrative expense of the
public body from the proceeds of the bonds issued with the assistance of the
State Treasurer. [2001 c.945 §25; 2007 c.783 §79]
238.696
Debt service trust fund. (1) A public body, or a group of
public bodies that enter into an intergovernmental agreement under ORS 238.695,
may establish a debt service trust fund for the purpose of paying the principal
and interest on bonds issued under ORS 238.692 to 238.698. The trustee of the
debt service trust fund shall hold the moneys paid into the trust fund solely
for the purpose of paying the principal and interest on bonds issued under ORS
238.692 to 238.698 and for paying the administrative costs of the trust fund.
(2) Moneys held in a debt service trust
fund are subject to the limitations on investment imposed by ORS 294.033 and
294.035.
(3) A public body, or a group of public
bodies that enter into an intergovernmental agreement under ORS 238.695, that
has established a debt service trust fund under this section may not divert or
pledge any moneys paid into the trust fund for any purpose other than the
purpose specified in subsection (1) of this section until the total amount of
principal and interest on bonds issued by the public body or under the
intergovernmental agreement, and any premium on those bonds, is paid. [2001
c.945 §26; 2007 c.783 §80]
238.698
Funds diversion agreement. (1) A public body, or a group of
public bodies that enter into an intergovernmental agreement under ORS 238.695,
that receives funds from any state agency may enter into a funds diversion
agreement with the state agency for the purpose of paying the principal and
interest on bonds issued under ORS 238.692 to 238.698, and any premium on those
bonds. A diversion agreement entered into under this section must provide that:
(a) Moneys payable to the public body or
group of public bodies by the state agency from appropriations from the General
Fund or any other source of moneys will be paid directly to a debt service
trust fund established under ORS 238.696 in amounts equal to the debt service
owed by the public body or group of public bodies;
(b) The state agency must pay the amounts
required under the funds diversion agreement to the debt service trust fund
established under ORS 238.696 pursuant to the schedule specified in the
agreement before paying any other amounts to the public body or group of public
bodies;
(c) The agreement is irrevocable; and
(d) The agreement will remain in effect
until all the bonds issued by the public body or under the intergovernmental
agreement are mature or redeemed.
(2) If for any reason a state agency that
has entered into a funds diversion agreement is not able to pay moneys to a
debt service trust fund as contemplated by the agreement, the state agency
shall give notice to the public body or group of public bodies within 30 days after
the state agency is aware that the moneys will not be paid.
(3) Nothing in this section, or in any
funds diversion agreement entered into by a state agency under this section,
may in any manner obligate the state or any state agency:
(a) To pay any amount that a public body
is not otherwise entitled to receive under law; or
(b) To pay any principal or interest on
bonds issued under ORS 238.692 to 238.698. [2001 c.945 §27; 2007 c.783 §81]
(Enforcement)
238.700
Enforcement of requirements of ORS chapters 238 and 238A.
All provisions of ORS 238.655, 238.705, 238.710 and 238.715 hereby are made
applicable for enforcement of the requirements of this chapter and ORS chapter
238A. [Formerly 237.300; 1997 c.249 §71; 2003 c.733 §64]
238.705 State departments to remit contributions and furnish reports. (1) All public employers that are members of the sys