James v. Oregon
Annotate this CaseThe Oregon legislature made various changes to the Public Employees Retirement System (PERS) by enacting amendments set out in SB 1049, Or Laws 2019, ch 355. Petitioners were PERS members challenging two of those amendments: (1) the redirection of a member's PERS contributions from the member’s individual account program to a newly created employee pension stability account, used to help fund the defined-benefit component of the member’s retirement plan; and (2) a cap on the salary used to calculate a member's benefits. Petitioners primarily argued the amendments impaired their contractual rights and therefore violated the state Contract Clause, Article I, section 21, of the Oregon Constitution. Respondents were the state, the Public Employees Retirement Board (the board), and various state and local public employers. The Oregon Supreme Court disagreed with petitioners' contentions, finding challenged amendments did not operate retrospectively to decrease the retirement benefits attributable to work that the member performed before the effective date of the amendments. And, although the amendments operated prospectively to change the offer for future retirement benefits, the preamendment statutes did not include a promise that the retirement benefits would not be changed prospectively. The Supreme Court resolved petitioners’ other claims on similar grounds and denied their requests for relief.
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