2007 Oregon Code - Chapter 238 :: Chapter 238 - Public Employees Retirement System
Chapter 238
Public Employees Retirement System
2007 EDITION
PUBLIC EMPLOYEES RETIREMENT SYSTEM
PUBLIC OFFICERS AND EMPLOYEES
GENERAL PROVISIONS
238.005 Definitions
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 Active
membership of reemployed 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
(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; 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
238.258 Minimum
regular account balance
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
ELIGIBILITY FOR RETIREMENT
238.280 Eligibility
for retirement
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 Sick Leave to Increase Retirement
Allowance)
238.350 Use
of unused sick 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)
238.375 Increased
benefits payable in compensation for certain damages attributable to taxation
of benefits
238.380 Calculation
of increased benefit payable under ORS 238.375
238.385 Retirement
allowance increase based on years of service
238.387 Retirement
allowance increases for members who retired before January 1, 1991
(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; spouses 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 boards 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) Annuity means payments for life
derived from contributions made by a member as provided in this chapter.
(2) Board means the Public Employees
Retirement Board.
(3) Calendar year means 12 calendar
months commencing on January 1 and ending on December 31 following.
(4) Continuous service means service not
interrupted for more than five years, except that such continuous service shall
be computed without regard to interruptions in the case of:
(a) An employee who had returned to the
service of the employer as of January 1, 1945, and who remained in that
employment until having established membership in the Public Employees
Retirement System.
(b) An employee who was in the armed
services on January 1, 1945, and returned to the service of the employer within
one year of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership in the Public
Employees Retirement System.
(5) Creditable service means any period
of time during which an active member is being paid a salary by a participating
public employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of computing
years of creditable service, full months and major fractions of a month shall
be considered to be one-twelfth of a year and shall be added to all full years.
Creditable service includes all retirement credit received by a member.
(6) Earliest service retirement age
means the age attained by a member when the member could first make application
for retirement under the provisions of ORS 238.280.
(7) Employee includes, in addition to
employees, public officers, but does not include:
(a) Persons engaged as independent
contractors.
(b) Seasonal, emergency or casual workers
whose periods of employment with any public employer or public employers do not
total 600 hours in any calendar year.
(c) Persons, other than workers in the
Oregon Industries for the Blind under ORS 346.190, provided sheltered
employment or made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
(d) Persons employed and paid from federal
funds received under the Emergency Job and Unemployment Assistance Act of 1974
(Public Law 93-567) or any other federal program intended primarily to
alleviate unemployment. However, any such person shall be considered an employee
if not otherwise excluded by paragraphs (a) to (c) of this subsection and the
public employer elects to have the person so considered by an irrevocable
written notice to the board.
(e) Persons who are employees of a
railroad, as defined in ORS 824.020, and who, as such employees, are included
in a retirement plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the system.
(8) Final average salary means whichever
of the following is greater:
(a) The average salary per calendar year
paid by one or more participating public employers to an employee who is an
active member of the system in three of the calendar years of membership before
the effective date of retirement of the employee, in which three years the
employee was paid the highest salary. The three calendar years in which the
employee was paid the largest total salary may include calendar years in which
the employee was employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of retirement of
the employee is three or fewer, the final average salary for the employee is the
average salary per calendar year paid by one or more participating public
employers to the employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
(b) One-third of the total salary paid by
a participating public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before the effective
date of retirement of the employee.
(9) Firefighter does not include a
volunteer firefighter, but does include:
(a) The State Fire Marshal, the chief
deputy fire marshal and deputy state fire marshals; and
(b) An employee of the State Forestry
Department who is certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of uncontrolled
fires as described in ORS 477.064.
(10) Fiscal year means 12 calendar
months commencing on July 1 and ending on June 30 following.
(11) Fund means the Public Employees
Retirement Fund.
(12)(a) Member means a person who has
established membership in the system and whose membership has not been
terminated as described in ORS 238.095. Member includes active, inactive and
retired members.
(b) Active member means a member who is
presently employed by a participating public employer in a qualifying position
and who has completed the six-month period of service required by ORS 238.015.
(c) Inactive member means a member who
is not employed in a qualifying position, whose membership has not been
terminated in the manner described by ORS 238.095, and who is not retired for
service or disability.
(d) Retired member means a member who is
retired for service or disability.
(13)(a) Member account means the regular
account and the variable account.
(b) Regular account means the account
established for each active and inactive member under ORS 238.250.
(c) Variable account means the account
established for a member who participates in the Variable Annuity Account under
ORS 238.260.
(14) Normal retirement age means:
(a) For a person who establishes
membership in the system before January 1, 1996, as described in ORS 238.430,
55 years of age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that age as other
than a police officer or firefighter.
(b) For a person who establishes
membership in the system on or after January 1, 1996, as described in ORS
238.430, 55 years of age if the employee retires at that age as a police
officer or firefighter or 60 years of age if the employee retires at that age
as other than a police officer or firefighter.
(15) Pension means annual payments for
life derived from contributions by one or more public employers.
(16) Police officer includes:
(a) Employees of institutions defined in
ORS 421.005 as Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the custody of
persons committed to the custody of or transferred to the Department of Corrections
and employees of the Department of Corrections who were classified as police
officers on or before July 27, 1989, whether or not such classification was
authorized by law.
(b) Employees of the Department of State
Police who are classified as police officers by the Superintendent of State
Police.
(c) Employees of the Oregon Liquor Control
Commission who are classified as enforcement officers by the administrator of
the commission.
(d) Sheriffs and those deputy sheriffs or
other employees of a sheriff whose duties, as classified by the sheriff, are
the regular duties of police officers or corrections officers.
(e) Police chiefs and police personnel of
a city who are classified as police officers by the council or other governing
body of the city.
(f) Parole and probation officers employed
by the Department of Corrections, parole and probation officers who are
transferred to county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified as police
officers for the purposes of this chapter by the county governing body. If a
county classifies adult parole and probation officers as police officers for
the purposes of this chapter, and the employees so classified are represented
by a labor organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation officers as
police officers for the purposes of this chapter is a mandatory subject of
bargaining.
(g) Police officers appointed under ORS
276.021 or 276.023.
(h) Employees of the
(i) Employees of the State Department of
Agriculture who are classified as livestock police officers by the Director of
Agriculture.
(j) Employees of the Department of Public
Safety Standards and Training who are classified by the department as other
than secretarial or clerical personnel.
(k) Investigators of the Criminal Justice
Division of the Department of Justice.
(L) Corrections officers as defined in ORS
181.610.
(m) Employees of the Oregon State Lottery
Commission who are classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
(n) The Director of the Department of
Corrections.
(o) An employee who for seven consecutive
years has been classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections to fill a
position designated by the Director of the Department of Corrections as being
eligible for police officer status.
(p) An employee of the Department of
Corrections classified as a police officer on or prior to July 27, 1989,
whether or not that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The initial
classification of an employee under a system implemented pursuant to ORS
240.190 does not affect police officer status.
(q) Employees of a school district who are
appointed and duly sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police officers
commissioned by the district.
(r) Employees at youth correction
facilities and juvenile detention facilities under ORS 419A.050, 419A.052 and
420.005 to 420.915 who are required to hold valid Oregon teaching licenses and
who have supervisory, control or teaching responsibilities over juveniles
committed to the custody of the Department of Corrections or the Oregon Youth
Authority.
(s) Employees at youth correction
facilities as defined in ORS 420.005 whose primary job description involves the
custody, control, treatment, investigation or supervision of juveniles placed
in such facilities.
(t) Employees of the Oregon Youth
Authority who are classified as juvenile parole and probation officers.
(17) Public employer means the state,
one of its agencies, any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality thereof, or an agency
created by one or more such governmental organizations to provide governmental
services. For purposes of this chapter, such agency created by one or more
governmental organizations is a governmental instrumentality and a legal entity
with power to enter into contracts, hold property and sue and be sued.
(18) Prior service credit means credit
provided under ORS 238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
(19) Qualifying position means one or
more jobs with one or more participating public employers in which an employee
performs 600 or more hours of service in a calendar year, excluding any service
in a job for which a participating public employer does not provide benefits
under this chapter pursuant to an application made under ORS 238.035.
(20) Retirement credit means a period of
time that is treated as creditable service for the purposes of this chapter.
(21)(a) Salary means the remuneration
paid an employee in cash out of the funds of a public employer in return for
services to the employer, plus the monetary value, as determined by the Public
Employees Retirement Board, of whatever living quarters, board, lodging, fuel,
laundry and other advantages the employer furnishes the employee in return for
services.
(b) Salary includes but is not limited
to:
(A) Payments of employee and employer
money into a deferred compensation plan, which are deemed salary paid in each
month of deferral;
(B) The amount of participation in a
tax-sheltered or deferred annuity, which is deemed salary paid in each month of
participation;
(C) Retroactive payments made to an
employee to correct a clerical error or pursuant to an award by a court or by
order of or a conciliation agreement with an administration agency charged with
enforcing federal or state law protecting the employees rights to employment
or wages, which shall be allocated to and deemed paid in the periods in which
the work was done or in which it would have been done; 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 employers 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
employees death;
(D) Any lump sum payment for accumulated
unused sick leave;
(E) Any accelerated payment of an employment
contract for a future period or an advance against future wages;
(F) Any retirement incentive, retirement
severance pay, retirement bonus or retirement gratuitous payment;
(G) Payments for periods of leave of
absence after the date the employer and employee have agreed that no future
services qualifying pursuant to ORS 238.015 (3) will be performed, except for
sick leave and vacation;
(H) Payments for instructional services
rendered to institutions of the Department of Higher Education or the Oregon
Health and Science University when such services are in excess of full-time
employment subject to this chapter. A person employed under a contract for less
than 12 months is subject to this subparagraph only for the months to which the
contract pertains; or
(I) Payments made by an employer for
insurance coverage provided to a domestic partner of an employee.
(22) School year means the period
beginning July 1 and ending June 30 next following.
(23) System means the Public Employees
Retirement System.
(24) Vested means being an active member
of the system in each of five calendar years.
(25) Volunteer firefighter means a
firefighter whose position normally requires less than 600 hours of service per
year. [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]
Note: Section 3, chapter 332, Oregon Laws 2005,
provides:
Sec.
3. The amendments to ORS
238.005 and 238A.005 by sections 1 and 2 of this 2005 Act apply only to members
of the Public Employees Retirement System who die on or after the effective
date of this 2005 Act [June 29, 2005]. [2005 c.332 §3]
Note: Section 2, chapter 968, Oregon Laws 2001,
provides:
Sec.
2. The amendments to ORS
238.005 by section 1 of this 2001 Act apply to all service by an adult parole
and probation officer that is performed on and after the date that the adult
parole and probation officer is classified as a police officer for the purposes
of ORS chapter 238 by the county governing body, whether that classification
occurs before, on or after the effective date of this 2001 Act [January 1,
2002]. [2001 c.968 §2]
Note: Section 2, chapter 971, Oregon Laws 1999,
provides:
Sec.
2. (1) The amendments to ORS
238.005 by section 1 of this 1999 Act apply only to persons specified in ORS
238.005 (16)(b) who are employed by the State Forestry Department on the
effective date of this 1999 Act [October 23, 1999] or who become employed by
the State Forestry Department after the effective date of this 1999 Act.
(2) Except as provided in subsection (3)
of this section, the amendments to ORS 238.005 by section 1 of this 1999 Act
apply only to service rendered to a participating public employer on or after
the effective date of this 1999 Act.
(3) Any employee who is employed by the
State Forestry Department in a position described in ORS 238.005 (16)(b) on the
effective date of this 1999 Act 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 (16)(b) before the effective
date of this 1999 Act 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 (16)(b) performed before the effective date of this 1999 Act. All
amounts required for acquisition of credit as a firefighter under this
subsection must be paid at least 90 days before a members 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.
[1999 c.971 §2]
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 Economic and Community 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 employees 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 Judges 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 persons 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 persons 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 persons
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 retired member who has been retired 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 contributions to the retirement fund, and
the employer shall make contributions on behalf of the person as provided in
ORS 238.225. Payments of retirement allowance received by such person during
separation from the service shall not be repaid into the retirement fund after
the person reenters public employment except as provided in paragraph (c) of
this subsection; but the amount of such payment shall be deducted from such
employees reserve in the retirement fund and the remainder shall be credited
pro rata to the funds from which it was derived.
(c) Upon reentering public employment as
provided in this subsection, the former retirement of such person and any
election of option for payment of retirement benefits theretofore made by the
person shall be canceled; and thereafter upon retiring such person may elect
any option for payment of retirement benefits authorized by this chapter,
except that a person who elected to receive lump sum payment of benefits
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 retired member who has been retired
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 earlier 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 persons
status as a retired member or the persons 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]
238.080 [Repealed by 1981 c.126 §6]
238.082
Active membership of reemployed retired members. (1) Subject to the limitations in subsection
(2) of this section, any public employer may employ any person receiving a
service retirement allowance if the administrative head of such employer is
satisfied that such employment is in the public interest.
(2) The period or periods of employment by
one or more public employers of any person receiving a service retirement
allowance may not total 1,040 hours or more in any calendar year; but if the
person is receiving old-age, survivors or disability insurance benefits under
the federal Social Security Act, the person may be employed 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.
(3) The limitations on employment imposed
by subsection (2) 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 members 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.
(4) The limitations on employment imposed
by subsection (2) 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
(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; or
(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
subsection (2) of this section.
(5) The limitations on employment imposed
by subsection (2) 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.
(6) The limitations on employment imposed
by subsection (2) 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.
(7) The limitations on employment imposed
by subsection (2) 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.
(8)(a) Except as provided in paragraph (b)
of this subsection, subsections (3) to (7) of this section do not apply to any
member who retires under the provisions of ORS 238.280 (1), (2) or (3).
(b) Subsection (3) of this section applies
to a person who retires under the provisions of ORS 238.280 (1) or (3) as long
as the persons date of retirement is more than six months before the date the
person is employed under subsection (3) of this section.
(9) 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. [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]
Note: Sections 2 and 3, chapter 499, Oregon Laws
2007, provide:
Sec.
2. (1) The limitations on
employment imposed by ORS 238.082 (2) 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) 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) 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
[ORS chapter 238]. [2007 c.499 §2]
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) 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
persons date of retirement is more than six months before the date the person
is employed under this section.
(3) 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
[ORS chapter 238]. [2007 c.774 §3]
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 system who has
retired as other than a member of the Legislative Assembly and who thereafter
becomes a member of the Legislative Assembly and elects to become an active
member of the system as a member of the Legislative Assembly may also elect, by
giving the board written notice of desire to do so, 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 period the member holds office as a member of the
Legislative Assembly. The notice provided for in this paragraph shall be given
within 30 days after the retired member takes office as a member of the
Legislative Assembly.
(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 of desire to do so, 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 period the
member holds office as a member of 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 ceasing to hold office as a
member of the Legislative Assembly. If the member does not have a member
account, the board shall determine the members 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
ceases to hold office as a member of the Legislative Assembly 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). [Formerly
237.145; 2001 c.945 §35; 2003 c.67 §19; 2007 c.776 §4]
(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 employers 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]
Note: Section 6, chapter 776, Oregon Laws 2007,
provides:
Sec.
6. (1) Except as provided in
subsection (2) of this section, the amendments to ORS 238.095 by section 5 of
this 2007 Act apply to all persons who resume active membership in the Public
Employees Retirement System, whether that resumption occurs before, on or after
the effective date of this 2007 Act [July 16, 2007].
(2) Crediting under ORS 238.095 (5) shall
be made by the Public Employees Retirement Board only for periods of active
membership served on or after the effective date of this 2007 Act. [2007 c.776 §6]
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 employees 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]
Note: Section 10, chapter 628, Oregon Laws 2007,
provides:
Sec.
10. (1) A member of the
system described in subsection (5) of this section who participates in the
state deferred compensation plan under ORS 243.401 to 243.507 may give written
notice to the Public Employees Retirement Board requesting that payment of all
or part of the deferred amount be made to the board for the purpose of
acquiring creditable service under ORS 238.115 and 238.125. Written notice
under this section must be given no later than 60 days after the effective date
of this 2007 Act [January 1, 2008]. Upon receiving the notice, the board shall
immediately take any action necessary to effectuate the transfer of the
requested amount. The board may not make the amount available to the member,
and shall use the amount only for the purposes described in this section. The
amount transferred under this section may not exceed the amount needed to:
(a) Make the lump sum payment described in
ORS 238.115 (1)(a)(B) that is required to restore forfeited creditable service
for which the member is eligible at the time of the transfer; and
(b) Make the lump sum payment described in
ORS 238.125 necessary to acquire retirement credit under ORS 238.125.
(2) Notwithstanding ORS 238.220, moneys
transferred under this section may be used to restore forfeited creditable
service under ORS 238.115 (1) in the manner provided by this section.
Notwithstanding ORS 238.115 (1)(a), the amount transferred under this section
must be applied to the restoration of forfeited creditable service under ORS
238.115 (1) immediately after the transfer is made.
(3) If a member does not obtain
restoration of all forfeited creditable service by reason of the payment under
subsection (2) of this section, the member may obtain restoration of any
remaining forfeited creditable service by making the application required by ORS
238.115 (1)(a)(A), and the lump sum payment required by ORS 238.115 (1)(a)(B),
within 90 days before the effective date of retirement of the member.
(4) Notwithstanding ORS 238.220, moneys
transferred under this section may be used to acquire retirement credit under
ORS 238.125 in the manner provided by this section. Notwithstanding ORS
238.125, the amount transferred under this section must be applied to
acquisition of retirement credit under ORS 238.125 immediately after the
transfer is made.
(5) A member may give written notice under
subsection (1) of this section only if:
(a) The member is 60 years of age or
older; and
(b) The member will have 35 years or more
of creditable service after restoration of forfeited creditable service under
ORS 238.115 (1), and acquisition of retirement credit under ORS 238.125, by
reason of the transfer and application of amounts under this section. [2007
c.628 §10]
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]
Note: See note under 238.115.
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 members 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 members 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 members 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 members 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 states equivalent of
a position described in ORS 238.005 (16). [2007 c.776 §2]
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 employees
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 employees
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
members 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 members 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
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
members service with a public school in another state, not to exceed a maximum
of four years, if the member within 90 days of the members 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 members 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 members 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 employees 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 employees 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
members effective date of retirement under this chapter, or within 90 days
after termination of the persons membership in the system under ORS 238.095.
(5) Distribution from a members rollover
account shall be made in a single lump sum payment. Distribution from a members
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]
(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 employers
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 employers 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; 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 contribution of the public
employer, the Public Employees Retirement Board shall adjust the amount of
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 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 employers 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. The account
shall be used to offset contributions 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. [2005
c.808 §13]
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 members 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 members who
established membership in the system before January 1, 1996, as described in
ORS 238.430, and for alternate payees of those members, 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 fund established for the
purpose. In years following the year for which a charge is made to the reserve
account, all earnings on the regular accounts of members who established membership
in the system before January 1, 1996, as described in ORS 238.430, and of
alternate payees of those members, shall first be applied to reduce or
eliminate the amount of a deficit. Only earnings on the regular accounts of
members who established membership in the system before January 1, 1996, as
described in ORS 238.430, and of alternate payees of those members, may be used
to reduce or eliminate the amount of a deficit.
(2) Notwithstanding subsection (1) of this
section and except as provided in subsection (5) of this section, the board may
not credit any earnings to the regular accounts of members who established
membership in the system before January 1, 1996, as described in ORS 238.430,
or of alternate payees of those members, in any year in which there is a
deficit in the reserve account established under subsection (1) of this
section, or credit any earnings to the regular accounts of those members, or
alternate payees, that would result in a deficit in that reserve account. In
any year in which the fund experiences a loss, the board shall charge the
amount of the loss attributable to the regular accounts of members who
established membership in the system before January 1, 1996, as described in
ORS 238.430, against the reserve account.
(3) The regular account for members who
established membership in the system before January 1, 1996, as described in
ORS 238.430, and for alternate payees of those members, 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 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
(b) The reserve account established under
subsection (1) of this section has been fully funded as described in paragraph
(a) of this subsection in each of the three immediately preceding calendar
years.
(4) The board may divide the reserve
account established under subsection (1) of this section into one or more
subaccounts for the purpose of implementing the provisions of this section.
(5) Subsection (2) of this section does
not apply to a person who is a judge member of the system on June 30, 2003. [Formerly
237.277; 2001 c.945 §4; 2003 c.3 §1; 2003 c.67 §5; 2003 c.625 §10]
238.258
Minimum regular account balance. (1) Notwithstanding any other provision of this chapter, the regular
account balance of a member or alternate payee described in subsection (3) of
this section may not be less than the amount provided for under subsection (2)
of this section for the purpose of computing retirement allowances, death
benefits and amounts to be paid to a withdrawing member under ORS 238.265 and
for other computations under the provisions of this chapter that are based on a
members or alternate payees regular account balance. If the regular account
balance of a member or alternate payee described in subsection (3) of this
section is less than the amount provided for under subsection (2) of this
section at the time of retirement or withdrawal of the account, the Public
Employees Retirement Board shall credit the account with the difference and
charge the amount so credited to the reserve account established under ORS
238.255.
(2) The minimum regular account balance
for a member or alternate payee described in subsection (3) of this section is
the amount that the regular account of a member or alternate payee would have
contained if the regular account of the member had been credited with earnings
at the assumed interest rate in every year in which the regular account of the
member or alternate payee was in existence.
(3) The provisions of this section apply
only to:
(a) A member who establishes membership in
the system before January 1, 1996, as described in ORS 238.430, and who retires
or withdraws the member account of the member on or after April 1, 2004; and
(b) An alternate payee of a member
described in paragraph (a) of this subsection. [2003 c.67 §8; 2003 c.625 §12]
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 members 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 members variable account after December 31 following the
filing of the request. Contributions paid into the members variable account
before the effective date of the request for cessation shall remain in the
members 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 members 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 members 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 members
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 members 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
employers 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]
ELIGIBILITY
FOR 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]
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 the State Board of Higher Education engaged in teaching or other
school activity at an institution of higher education 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]
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 members
retirement.
Option 1. (a) A life annuity (nonrefund)
payable during the members 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 members 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 members 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 members 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 members 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 members 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 members 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 members 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 beneficiarys 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 members 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 members beneficiary has predeceased the member; and
(c) The member gives written notice to the
board of the death of the members 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 members beneficiary has predeceased the member; and
(c) The member gives written notice to the
board of the death of the members 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 members 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 members 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 members 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 members 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
members 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 members 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 members
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 members 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 beneficiarys 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 members 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 members 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 members 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 officers or firefighters 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 Sick
Leave to Increase Retirement Allowance)
238.350
Use of unused sick 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 a
community college, or employees of the State Board of Higher Education engaged
in teaching or other school activity at an institution of higher education, or
employees of schools 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 members
separation from the service of the employer, whether that employer is or is not
the employer of the member at the time of the members 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]
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 areaall 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 members 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]
238.365 [Formerly 237.209; 2001 c.945 §69;
renumbered 238.387 in 2001]
238.370 [Formerly 237.199; repealed by 2001 c.945 §73]
(Benefit
Increases in Compensation of Claims Based on Taxation of Benefits)
238.375
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 238.380 and 238.387 (2),
including all increased benefits payable to judge members by reason of the
application of ORS 238.380 and 238.387 (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
(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 238.380 or 238.387 (2), or in the benefits payable to judge members
by reason of the application of ORS 238.380 or 238.387 (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. [1995 c.569 §2; 1997 c.175 §4; 2001 c.945 §70]
238.380
Calculation of increased benefit payable under ORS 238.375. (1)(a) Upon retirement of an employee who is
a member of the Public Employees Retirement System and computation of that
members 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 238.385 or a percentage
increase calculated under subsection (4) of this section. No benefit shall be
paid to a member or beneficiary under ORS 238.385 if the benefit payable to the
member or beneficiary under this section is larger than the benefit payable
under ORS 238.385.
(b) The percentage increase provided for
in this section shall be adjusted by the board to reflect increases or
decreases in a members retirement allowance that are attributable to the
members participation in the Variable Annuity Account established by ORS
238.260, that are attributable to a change in the members beneficiary or
payment option under ORS 238.305 or 238.325, or that are attributable to
corrections to the members 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 238.385 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 238.385 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 238.385 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
______________________
1 − the
maximum
personal income tax rate
(b) Upon the retirement or death of a
member of the system, the board shall determine the fraction of the members
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
(8)(a) 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) If the maximum
(8)(a) 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.
(b) The recalculation of benefits provided
for in subsection (7) of this section applies to all retired members, without
regard to the date of the members retirement or death.
(9) If a member is entitled to receive an
increased benefit under the provisions of this section, and any portion of the
members 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 members 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.
(10) A person establishes membership in
the system before July 14, 1995, for the purposes of subsection (8) 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. [1995 c.569 §3;
1997 c.175 §5; 2001 c.945 §54; 2003 c.67 §30]
238.385
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
members 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 members retirement allowance that are attributable to the
members participation in the Variable Annuity Account established by ORS
238.260, that are attributable to a change in the members beneficiary or
payment option under ORS 238.305 or 238.325, or that are attributable to
corrections to the members 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 238.380 (10), 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
members 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 members 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 237.208; 1997 c.175 §6; 2001 c.945 §55; 2003
c.67 §31]
238.387
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 238.380
(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 238.365]
(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 persons
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 decedents 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 decedents
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 employees death by the retired employees 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
members death by the retired members 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 members 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 members
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 members 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) Notwithstanding any other provision of
this chapter, for the purpose of calculating a monthly disability retirement
allowance payable to a member who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, the sum of the monthly
amount of the disability retirement allowance and of any monthly payment on
account of temporary total disability or permanent total disability under the
provisions of ORS chapter 656 may not exceed the members monthly salary,
determined as of the date the member becomes disabled. The board shall reduce
any disability retirement allowance payable under this chapter in the amount
determined to be necessary by the board to meet the limitation imposed by this
subsection.
(8) 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]
(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
employers 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 boards 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 75 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]
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 members
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 members
disability benefit, the date the board receives the members 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 boards 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 systems 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 members
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 members 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 members 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 members
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 members 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 members 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 members spouse;
(b) Indicates the form in which the
retirement allowance is to be paid; and
(c) Contains a statement that the members
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 members 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 payees 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 judgments, orders or agreements
distribution of the members 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 payees
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 members
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
Note: Section 83, chapter 945, Oregon Laws 2001,
provides:
Sec.
83. The amendments to ORS
238.465 by section 82 of this 2001 Act apply only to decrees, orders or
settlements entered on or after the effective date of this 2001 Act [August 9,
2001]. Any decree, order or settlement entered on or after the effective date
of this 2001 Act may provide for a change of beneficiary under ORS 238.465, as
amended by section 82 of this 2001 Act, without regard to whether the member of
the Public Employees Retirement System retired before, on or after the
effective date of this 2001 Act. [2001 c.945 §83]
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 employers 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 members 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 members 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 employers 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 members
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 employers
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 members 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 members 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 judges refusal, without good cause,
to accept pro tem assignments sufficient to meet the required amount; or
(ii) A judges 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 employers
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 members 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; spouses 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 spouses 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 238.387 applies to judge members,
and for that purpose the monthly retirement allowance referred to in ORS
238.387 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 (3) and (21), 238.025, 238.078, 238.082, 238.092,
238.115 (1), 238.250, 238.255, 238.260, 238.350, 238.380, 238.410, 238.415,
238.420, 238.445, 238.458, 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 238.385 for
members of the system who are serving as other than police officers or
firefighters apply in respect to service as a judge member.
(2) This chapter applies in respect to
persons described in ORS 238.505 (1) and in respect to service as a judge
member only as specifically provided in ORS 238.500 to 238.585. [Formerly
237.233; 1999 c.317 §23; 2001 c.945 §62; 2005 c.152 §9]
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 238.385, 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
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 actuarys 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 members or alternate payees 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 (9)
or as police officers under ORS 238.005 (16)(a), (b), (d), (e), (f), (k), (L),
(n), (o) or (p). [2003 c.68 §7; 2003 c.625 §18]
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
employers 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
(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 must be a public employee,
as defined in ORS 243.650, who is in an appropriate bargaining unit, as defined
in ORS 243.650, and who has an exclusive representative at the time of the
members 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]
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 boards 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 boards 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
(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
beneficiarys 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 beneficiarys
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]
Note: Section 44e, chapter 733, Oregon Laws 2003,
provides:
Sec.
44e. Until June 30, 2005,
the Public Employees Retirement System may use moneys of the Public Employees
Retirement Fund that are unrelated to the Oregon Public Service Retirement Plan
to pay the administrative costs of the individual account program. The
authority created by this section is in addition to and not in lieu of the
authority of the system to use moneys attributable to the individual account
program to pay administrative expenses of that program. Not later than February
1, 2010, all moneys used under this section to pay the costs of administering
the individual account program must be repaid to the fund from individual
accounts by means of adjustments to those accounts under ORS 238A.350 (1).
[2003 c.733 §44e; 2005 c.808 §20]
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 boards 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 members
benefits or an individual employers 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 employers previously established system for the purpose of
providing benefits to some or all of the employers 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 employees or alternate payees receipt of
benefits under the previously established system.
(6) A waiver under subsection (5) of this
section must be made before an employees effective date of retirement or the
effective date of an alternative payees 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 districts permanent tax
rate limit, the school district shall each year divide its operating taxes into
two portions, both within the districts 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 which has been adopted
by a mass transit district organized under ORS 267.010 to 267.390 situated in a
standard 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 shall 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) No contract of prospective
participation shall in any way alter, impair or adversely affect any rights,
benefits or privileges which 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, standard
metropolitan statistical area has that meaning given in ORS 267.010. [Formerly
237.037]
(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 system shall promptly and regularly remit to the Public Employees
Retirement Board all contributions required of them by law and furnish all
reports required by the board.
(2) Any public employer delinquent in
remitting contributions shall be charged interest on the total amount of
contributions due from it at the rate of one percent per month or fraction
thereof during which the public employer is delinquent. Interest so paid shall
be deposited in the Public Employees Retirement Fund and shall be used by the
board in paying administrative expenses of the system.
(3) If any state officer or agency fails
to remit any contribution or other obligation required by law, the Public
Employees Retirement Board, within 30 days after the date the request therefor
has been made by it by registered mail or by certified mail with return
receipt, may certify to the Oregon Department of Administrative Services the
fact of such failure and the amount of the delinquent contribution or
obligation, together with its request that such amount be set over from funds
of the delinquent officer or agency to the credit of the Public Employees
Retirement Fund. A copy of such certification and request shall be furnished
the delinquent officer or agency. The department shall, within 10 days after
receipt of the request of the board, approve the payment of such amount by the
delinquent officer or agency from funds allocated to the officer or agency for
the current biennium and draw a warrant for payment of the amount of the
contribution or obligation due out of funds in the State Treasury allocated to
the use of the delinquent officer or agency.
(4) If any public employer other than a
state agency fails to remit any contribution or pay any other obligation due
under this chapter or ORS chapter 238A, the board may certify to the department
the fact of such failure. Upon receipt of the certification the department
shall withhold payment to the public employer of any revenues or funds in the
State Treasury in which the public employer is entitled by law to share and
which have been apportioned to the public employer until the board certifies to
the department that the failure has been remedied. The board shall send a copy
of each certification it makes under this subsection to the public employer
affected.
(5) Any public employer delinquent in
making reports or supplying information concerning its employees in the manner
required by the board shall be charged a penalty of the lesser of $2,000 or one
percent of the total annual contributions, for each month or fraction thereof
during which the employer is delinquent. In addition, the board may send an
auditor to the office of the employer to examine its records and to obtain the
necessary reports, the entire cost of such audit to be paid by the delinquent
employer. Penalties and other charges so paid shall be used by the board in
paying administrative expenses of the system. [Formerly 237.301; 2003 c.733 §65]
238.710
Mandamus against defaulting employer; appeal. In addition to the remedies otherwise provided by ORS 238.705, the
board may, by petition in usual form, apply to the circuit court for the county
in which is located the public employer concerned, or the principal office or
place of business of the public employer, for, and if warranted, to have
issued, writs of mandamus to compel the public employer to supply to the board
a true and complete list and employment records of the employers employees and
all information concerning the employees that reasonably may be required and
sought by the board in the petition. The writs, among other things, shall
direct the defendant to make contributions to the retirement fund on account of
the defendants employees as may appear, from records and information
concerning the defendants employees, to be required by law. Either or both
parties thereby aggrieved may appeal to the Court of Appeals from, or from any
part of, the judgment of the circuit court in the proceeding, as in ordinary
mandamus proceedings. [Formerly 237.311; 2005 c.22 §181]
238.715
Recovery of overpayments; rules. (1) If the Public Employees Retirement Board determines that a member
of the Public Employees Retirement System or any other person receiving a
monthly payment from the Public Employees Retirement Fund has received any
amount in excess of the amounts that the member or other person is entitled to
under this chapter and ORS chapter 238A, the board may recover the overpayment
or other improperly made payment by:
(a) Reducing the monthly payment to the
member or other person for as many months as may be determined by the board to
be necessary to recover the overpayment or other improperly made payment; or
(b) Reducing the monthly payment to the
member or other person by an amount actuarially determined to be adequate to
recover the overpayment or other improperly made payment during the period
during which the monthly payment will be made to the member or other person.
(2)(a) Any person who receives a payment
from the Public Employees Retirement Fund and who is not entitled to receive
that payment, including a member of the system who receives an overpayment,
holds the improperly made payment in trust subject to the boards recovery of
that payment under this section or by a civil action or other proceeding.
(b) The board may recover an improperly
made payment in the manner provided by subsection (1) of this section from any
person who receives an improperly made payment from the fund and who
subsequently becomes entitled to receive a monthly payment from the fund.
(c) The board may recover an improperly
made payment by reducing any lump sum payment in the amount necessary to
recover the improperly made payment if a person who receives an improperly made
payment from the fund subsequently becomes entitled to receive a lump sum
payment from the fund.
(3) Unless the member or other person
receiving a monthly payment from the fund authorizes a greater reduction, the
board may not reduce the monthly payment made to a member or other person under
the provisions of subsection (1) of this section by an amount that is equal to
more than 10 percent of the monthly payment.
(4) Before reducing a benefit to recover
an overpayment or erroneous payment, or pursuing any other collection action
under this section, the board shall give notice of the overpayment or erroneous
payment to the person who received the payment. The notice shall describe the
manner in which the person who received the payment may appeal the boards
determination that an overpayment or erroneous payment was made, the action the
board may take if the person does not respond to the notice and the authority
of the board to assess interest, penalties or costs of collection.
(5) If the board determines that an
overpayment or erroneous payment was not caused by the system or by a
participating public employer, the board may assess interest in an amount equal
to one percent per month on the balance of the improperly made payment until the
payment is fully recovered. The board may also assess to the member or other
person all costs incurred by the system in recovering the payment, including
attorney fees. Interest and costs may be collected in the manner prescribed in
subsections (1) and (2) of this section. The board may waive the interest and
costs on an overpayment or other improperly made payment for good cause shown.
(6) Notwithstanding ORS 293.240, the board
may waive the recovery of any payment or payments made to a person who was not
entitled to receive the payment or payments if the total amount of the
overpayment or other improperly made payments is less than $50.
(7) A payment made to a person from the
fund may not be recovered by the board unless within six years after the date that
the payment was made the board has commenced proceedings to recover the
payment. For the purposes of subsection (1) of this section, the board shall be
considered to have commenced proceedings to recover the payment upon mailing of
notice to the person receiving a monthly payment that the board has determined
that an overpayment or other improperly made payment has been made.
(8) The remedies authorized under this
section are supplemental to any other remedies that may be available to the
board for recovery of amounts incorrectly paid from the fund to members of the
system or other persons.
(9) The board shall adopt rules
establishing the procedures to be followed by the board in recovering
overpayments and erroneous payments under this section. [Formerly 237.312; 2003
c.105 §6; 2003 c.733 §66]
238.720
Rollover contributions; application against payments improperly made to
retirees; rules. (1) The
Public Employees Retirement Board may accept rollover contributions from a
retired member solely for the purpose of paying amounts claimed by the board as
overpayments or other improperly made payments. 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 against the amounts claimed by the board
as overpayments or other improperly made payments.
(3) The board shall adopt rules and
establish procedures for determining whether a retired 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 Public Employees Retirement System and the
Public Employees Retirement Fund as a qualified governmental plan and trust
under federal income tax law. [2007 c.628 §2]
(Short Title)
238.750
Short title. This chapter
and ORS chapter 238A shall be known as the Public Employes Retirement Act of
1953. [Formerly 237.001; 2003 c.733 §67]
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