Bill Text: OR HB2113 | 2011 | Regular Session | Enrolled
Bill Title: Relating to public employee retirement; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-08-05 - Chapter 722, (2011 Laws): Effective date August 5, 2011. [HB2113 Detail]
Download: Oregon-2011-HB2113-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2113
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of Governor John A. Kitzhaber for Public
Employees Retirement System)
CHAPTER ................
AN ACT
Relating to public employee retirement; creating new provisions;
amending ORS 169.810, 237.650, 237.655, 238.092, 238.222,
238.255, 238A.115, 238A.245, 238A.300, 238A.320 and 243.460 and
section 2, chapter 971, Oregon Laws 1999; repealing ORS 237.660
and 238.258 and section 46b, chapter 733, Oregon Laws 2003;
limiting expenditures; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
{ +
LEGISLATOR RETIREMENT + }
SECTION 1. ORS 237.650 is amended to read:
237.650. { - (1) A person appointed or elected as a member of
the Legislative Assembly must elect within 30 days after taking
office if the person will: - }
{ - (a) Become a member of the Oregon Public Service
Retirement Plan established under ORS chapter 238A; - }
{ - (b) Become a legislator member of the state deferred
compensation plan under ORS 237.655; or - }
{ - (c) Decline to become a member of the Oregon Public
Service Retirement Plan, or to become a legislator member of the
state deferred compensation plan, for service as a member of the
Legislative Assembly. - }
{ - (2) Written notice of a person's election under this
section must be given to the Public Employees Retirement Board.
If the board does not receive written notice within 30 days after
the person takes office, the person shall be conclusively deemed
to have elected to become a legislator member of the state
deferred compensation plan under ORS 237.655. - }
{ - (3) Any member of the Legislative Assembly who elects to
become a member of the Oregon Public Service Retirement Plan may
request that the Public Employees Retirement Board roll over the
amount in the regular account maintained for the member under ORS
238.250 into the individual account maintained for the member
under the individual account program. - }
{ - (4) An election under this section does not affect the
ability of a person appointed or elected as a member of the
Legislative Assembly to participate in the state deferred
compensation plan in the manner provided by ORS 243.401 to
243.507. - }
Enrolled House Bill 2113 (HB 2113-B) Page 1
{ + (1) Except as provided in this section, a person
appointed or elected as a member of the Legislative Assembly may
make a retirement plan election in the manner provided by this
section. If a person appointed or elected as a member of the
Legislative Assembly does not make a retirement plan election
under subsection (2), (3) or (4) of this section, the person is
deemed to have elected a retirement plan as provided in
subsection (7) of this section.
(2) An active or inactive member of the Public Employees
Retirement System who is appointed or elected as a member of the
Legislative Assembly, and who established membership in the
system before August 29, 2003, as described in ORS 238A.025, may:
(a) Elect to remain a member of the system under ORS chapter
238 for the purpose of service in the Legislative Assembly;
(b) Decline to remain a member of the system under ORS chapter
238 and elect to become a legislator member of the state deferred
compensation plan under ORS 237.655 for the purpose of service in
the Legislative Assembly; or
(c) Decline to remain a member of the system under ORS chapter
238 or to become a legislator member of the state deferred
compensation plan under ORS 237.655 for the purpose of service in
the Legislative Assembly.
(3) A retired member of the Public Employees Retirement System
who is appointed or elected as a member of the Legislative
Assembly, and who established membership in the system before
August 29, 2003, as described in ORS 238A.025, may:
(a) Elect to become an active member of the system under ORS
chapter 238 for the purpose of service in the Legislative
Assembly;
(b) Decline to become an active member of the system under ORS
chapter 238 and elect to become a legislator member of the state
deferred compensation plan under ORS 237.655 for the purpose of
service in the Legislative Assembly; or
(c) Decline to become an active member of the system under ORS
chapter 238 or to become a legislator member of the state
deferred compensation plan under ORS 237.655 for the purpose of
service in the Legislative Assembly.
(4) A person who is appointed or elected as a member of the
Legislative Assembly and who is not a member of the Public
Employees Retirement System at the time the person takes office
may:
(a) Elect to become a member of the Oregon Public Service
Retirement Plan established under ORS chapter 238A for the
purpose of service in the Legislative Assembly;
(b) Decline to become a member of the Oregon Public Service
Retirement Plan and elect to become a legislator member of the
state deferred compensation plan under ORS 237.655 for the
purpose of service in the Legislative Assembly; or
(c) Decline to become a member of the Oregon Public Service
Retirement Plan or to become a legislator member of the state
deferred compensation plan under ORS 237.655 for the purpose of
service in the Legislative Assembly.
(5) An active or inactive member of the Public Employees
Retirement System who is appointed or elected as a member of the
Legislative Assembly, and who established membership in the
system on or after August 29, 2003, as described in ORS 238A.025,
may not make an election under this section and is an active
member of the system under ORS chapter 238A for the purpose of
service in the Legislative Assembly.
Enrolled House Bill 2113 (HB 2113-B) Page 2
(6) A retired member of the Public Employees Retirement System
who is appointed or elected as a member of the Legislative
Assembly, and who established membership in the system on or
after August 29, 2003, as described in ORS 238A.025, may not make
an election under this section and remains a retired member of
the system under ORS chapter 238A during the person's service in
the Legislative Assembly.
(7) Written notice of an election under subsection (2), (3) or
(4) of this section must be given to the Public Employees
Retirement Board not more than 30 days after the person takes
office. If the board does not receive written notice of the
election within 30 days after the person takes office:
(a) A person described in subsection (2) of this section is
deemed to have elected to remain a member of the Public Employees
Retirement System under ORS chapter 238 for the purpose of
service in the Legislative Assembly.
(b) A person described in subsection (3) of this section is
deemed to have declined to become an active member of the system
under ORS chapter 238, or to become a legislator member of the
state deferred compensation plan under ORS 237.655, and remains a
retired member of the system under ORS chapter 238 for the
purpose of service in the Legislative Assembly.
(c) A person described in subsection (4) of this section is
deemed to have elected to become a member of the system under ORS
chapter 238A for the purpose of service in the Legislative
Assembly.
(8) An election under subsection (3)(b) or (c) of this section
does not affect the status of a person as a retired member of the
system and a recipient of retirement benefits under ORS chapter
238.
(9) An election under this section does not affect the ability
of a person appointed or elected as a member of the Legislative
Assembly to participate in the state deferred compensation plan
in the manner provided by ORS 243.401 to 243.507 as other than a
legislator member under ORS 237.655. + }
SECTION 2. ORS 237.655 is amended to read:
237.655. (1) If a person appointed or elected as a member of
the Legislative Assembly elects under ORS 237.650 to
{ - participate in - } { + become a legislator member of + }
the state deferred compensation plan { - as a legislator
member - } { + for the purpose of service in the Legislative
Assembly + }, the Legislative Assembly shall make employer
contributions to the plan in an amount that is equal to six
percent of the member's salary. { - A legislator member may
make contributions to the plan in any amount that does not exceed
the maximum allowed by federal law governing the plan's tax
qualification. - }
{ - (2) Any member of the Legislative Assembly who elects to
become a legislator member of the state deferred compensation
plan may request that the Public Employees Retirement Board roll
over the amount in the regular account maintained for the member
under ORS 238.250 into the state deferred compensation plan. - }
{ + (2) If a person appointed or elected as a member of the
Legislative Assembly elects under ORS 237.650 to become a
legislator member of the state deferred compensation plan for the
purpose of service in the Legislative Assembly, and the person
also participates in the state deferred compensation plan in the
manner provided by ORS 243.401 to 243.507 as other than a
legislator member, the total contributions made to the plan by
the person and by the employer under subsection (1) of this
Enrolled House Bill 2113 (HB 2113-B) Page 3
section may not exceed the maximum allowed by federal law
governing the plan's tax qualification. + }
(3) Except for the contributions required by subsection (1) of
this section, the Legislative Assembly may not 'pick-up, ' assume
or pay any contributions on behalf of a legislator member of the
state deferred compensation plan.
SECTION 3. ORS 238.092 is amended to read:
238.092. (1) Notwithstanding any other provision of this
chapter:
(a) A retired member of the { + Public Employees
Retirement + } System who has retired as other than a member of
the Legislative Assembly and who { - thereafter becomes - }
{ + is thereafter appointed or elected as + }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 - } { + may + } elect, by giving the { + Public Employees
Retirement + } 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 - } { + purpose of service in + } 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. - } { + A person may make an
election under this paragraph only if the person becomes an
active member of the system under ORS chapter 238 for the purpose
of service in the Legislative Assembly as provided in ORS 237.650
(3). Notice of an election under this paragraph must be given by
the person not more than 30 days after the person takes
office. + }
(b) A member of the Legislative Assembly who is a member of the
system as a member of the Legislative Assembly and who becomes
eligible to retire by reason of service as other than a member of
the Legislative Assembly, without regard to when that service was
performed, may elect, by giving the board written notice { - 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 - }
{ + purpose of service in + } the Legislative Assembly, as an
active member of the system as a member of the Legislative
Assembly.
(c) Upon receipt of the notice provided for in paragraphs (a)
and (b) of this subsection, the board shall determine that
portion of the accumulated contributions, if any, of the member
and interest thereon attributable to service as other than a
member of the Legislative Assembly, which shall be used in
determining the amount of the annuity the member shall receive
for that service. The portion of the accumulated contributions,
if any, of the member and interest thereon attributable to
service as a member of the Legislative Assembly shall remain in
the member account of the member and, together with any
subsequent contributions and interest thereon, be used in
determining the amount of the additional annuity the member shall
receive for that service upon
{ - ceasing to hold office as a member of the Legislative
Assembly - } { + subsequent retirement + }. If the member does
not have a member account, the board shall determine the member's
retirement allowance for nonlegislative service based on the
Enrolled House Bill 2113 (HB 2113-B) Page 4
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 - } { + subsequently retires + } based on the number
of years of service in the Legislative Assembly.
(2) If a retired member of the system is employed by the
Legislative Assembly, or by the Oregon State Police, for the
purpose of service during a regular or special session of the
Legislative Assembly, the hours worked during the session shall
not be counted for the purpose of the limitations on employment
imposed by ORS 238.082 (2) and (3).
SECTION 4. ORS 238A.245 is amended to read:
238A.245. (1) Except as provided in subsection (3) of this
section, the Public Employees Retirement Board shall cease making
pension payments to a retired member of the pension program who
is reemployed by a participating public employer in a qualifying
position. A retired member of the pension program who is employed
in a qualifying position becomes an active member of the pension
program without serving the probationary period provided for in
ORS 238A.100.
(2) If a retired member of the pension program is reemployed
under the provisions of this section, any option chosen by the
member under ORS 238A.190 is canceled, and upon retiring
thereafter the member may elect any option provided for in ORS
238A.180 and 238A.190. The board shall recalculate the pension of
the member upon subsequent retirement.
(3) A retired member of the pension program who becomes a
member of the Legislative Assembly shall continue to receive the
pension elected by the member. A retired member of the pension
program who becomes a member of the Legislative Assembly may not
{ - elect - } { + make an election + } under ORS 237.650
{ - to become an active member of the Oregon Public Service
Retirement Plan or a legislator member of the state deferred
compensation plan - } .
SECTION 5. { + (1) ORS 237.660 is repealed.
(2) Section 46b, chapter 733, Oregon Laws 2003, as amended by
section 4, chapter 769, Oregon Laws 2007, is repealed. + }
SECTION 6. { + (1) The amendments to ORS 237.650, 237.655,
238.092 and 238A.245 by sections 1 to 4 of this 2011 Act and the
repeal of ORS 237.660 and section 46b, chapter 733, Oregon Laws
2003, by section 5 of this 2011 Act apply to persons appointed or
elected as members of the Legislative Assembly who take office on
or after August 29, 2003.
(2) An election made under ORS 237.650 on or after August 29,
2003, and before the effective date of this 2011 Act that is
inconsistent with the provisions of ORS 237.650 as amended by
section 1 of this 2011 Act is void.
(3) As soon as possible after the effective date of this 2011
Act, the Public Employees Retirement Board shall provide notice
of the provisions of subsection (4) of this section to any person
who made an election under ORS 237.650 that is void under
subsection (2) of this section.
(4) Any person who made an election under ORS 237.650 that is
void under subsection (2) of this section may make any election
allowed under ORS 237.650 as amended by section 1 of this 2011
Act. An election under this subsection must be received by the
board not more than 90 days after the date notice is provided
under subsection (3) of this section. If the person is eligible
to make an election under this subsection, but fails to make the
election within the time allowed, the person is deemed to have
Enrolled House Bill 2113 (HB 2113-B) Page 5
elected a retirement plan as provided in ORS 237.650 (7), as
amended by section 1 of this 2011 Act, for the purpose of the
service by the person in the Legislative Assembly for which the
first election was made. + }
{ +
RETIREMENT CREDIT PURCHASES + }
SECTION 7. ORS 238.222 is amended to read:
238.222. (1) Notwithstanding ORS 238.220, a member of the
Public Employees Retirement System who is eligible to obtain
restoration of forfeited creditable service under ORS 238.115, or
to purchase retirement credit under ORS 238.125, 238.135,
238.145, { + 238.148, + } 238.156, 238.157, { + 238.160, + }
238.162, 238.165, 238.175 or 526.052, and who participates in an
eligible retirement plan described in subsection (3) of this
section, may use moneys transferred by way of a
trustee-to-trustee transfer from the eligible retirement plan to
the Public Employees Retirement Board for the purpose of
obtaining restoration of the forfeited creditable service or to
purchase the retirement credit. The board may not make any amount
transferred under this section available to the member, and may
use the amount only for the purposes described in this section.
The amount transferred under this section may not exceed the
amount needed to obtain restoration of the forfeited creditable
service or to purchase the retirement credit.
(2) If amounts transferred under this section are not
sufficient to pay the full amount necessary to obtain restoration
of the forfeited creditable service or to purchase the retirement
credit, the member must pay the remaining amount that is needed
to obtain restoration of the forfeited creditable service or to
purchase the retirement credit.
(3) The following are eligible retirement plans for the
purposes of this section:
(a) A governmental deferred compensation plan described in
section 457 of the Internal Revenue Code; and
(b) A tax sheltered annuity described in section 403(b) of the
Internal Revenue Code.
(4) The board shall adopt rules and establish procedures for
determining whether a member is allowed to obtain restoration of
the forfeited creditable service or to purchase the retirement
credit by means of a trustee-to-trustee transfer under this
section. The rules and procedures must ensure that transfers
under this section do not adversely affect the status of the
system and the Public Employees Retirement Fund as a qualified
governmental plan and trust under federal income tax law.
SECTION 8. Section 2, chapter 971, Oregon Laws 1999, is amended
to read:
{ + Sec. 2. + } (1) The amendments to ORS 238.005 by section
1 { + , chapter 971, Oregon Laws 1999, + } { - of this 1999
Act - } apply only to persons specified in ORS 238.005
{ - (16)(b) - } { + (9)(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 - } { + October 23, 1999 + }.
(2) Except as provided in subsection (3) of this section, the
amendments to ORS 238.005 by section 1 { + , chapter 971, Oregon
Laws 1999, + } { - of this 1999 Act - } apply only to service
Enrolled House Bill 2113 (HB 2113-B) Page 6
rendered to a participating public employer on or after { - the
effective date of this 1999 Act - } { + October 23, 1999 + }.
(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 - } { + (9)(b) on
October 23, 1999, + } may acquire creditable service in the
Public Employees Retirement System as a firefighter for service
performed by the employee in a position described in ORS 238.005
{ - (16)(b) before the effective date of this 1999 Act - }
{ + (9)(b) before October 23, 1999, + } by paying to the Public
Employees Retirement Board an amount determined by the board to
represent the full cost to the system of providing credit as a
firefighter to the member. The member may acquire credit as a
firefighter for all or part of the service in a position
described in ORS 238.005 { - (16)(b) performed before the
effective date of this 1999 Act - } { + (9)(b) performed before
October 23, 1999 + }. All amounts required for acquisition of
credit as a firefighter under this subsection must be paid at
least 90 days before a member's effective date of retirement. The
board may by rule allow members to pay amounts required under
this subsection in installments in lieu of requiring a single
lump sum payment. { + Amounts required under this subsection
may be paid using moneys transferred by way of a
trustee-to-trustee transfer as described in ORS 238.222. + }
SECTION 9. { + The amendments to section 2, chapter 971,
Oregon Laws 1999, by section 8 of this 2011 Act become operative
September 1, 2011. + }
{ +
OPSRP VESTING + }
SECTION 10. ORS 238A.115 is amended to read:
238A.115. (1) { + Except as provided in subsection (2) of this
section, + } a member of the pension program becomes vested in
the pension program on the earliest of the following dates:
(a) The date on which the member completes at least 600 hours
of service in each of five calendar years. The five calendar
years need not be consecutive, but are subject to the provisions
of subsection { - (2) - } { + (3) + } of this section.
(b) The date on which an active member reaches the normal
retirement age for the member under ORS 238A.160.
(c) If the pension program is terminated, the date on which
termination becomes effective, but only to the extent the pension
program is then funded.
{ + (2) If on the date that a person becomes an active member
the person has already reached the normal retirement age for the
person under ORS 238A.160, the person is vested in the pension
program on that date. + }
{ - (2) - } { + (3) + } If a member of the pension program
who is not vested in the pension program performs fewer than 600
hours of service in each of five consecutive calendar years,
hours of service performed before the first calendar year of the
period of five consecutive calendar years shall be disregarded
for purposes of determining whether the member is vested under
subsection (1)(a) of this section.
{ - (3) - } { + (4) + } Solely for purposes of determining
whether a member is vested under this section, hours of service
include creditable service, as defined in ORS 238.005, performed
by the person before the person became an eligible employee, as
long as the membership of the person under ORS chapter 238 has
Enrolled House Bill 2113 (HB 2113-B) Page 7
not been terminated under the provisions of ORS 238.095 on the
date the person becomes an eligible employee.
SECTION 11. ORS 238A.320 is amended to read:
238A.320. (1) A member of the individual account program
becomes vested in the employee account established for the member
under ORS 238A.350 (2) on the date the employee account is
established.
(2) A member who makes rollover contributions becomes vested in
the rollover account established for the member under ORS
238A.350 (4) on the date the rollover account is established.
(3) { + Except as provided in subsection (4) of this
section, + } if an employer makes employer contributions for a
member under ORS 238A.340 { - , - } the member becomes vested
in the employer account established under ORS 238A.350 (3) on the
earliest of the following dates:
(a) The date on which the member completes at least 600 hours
of service in each of five calendar years { - ; - } { + . The
five calendar years need not be consecutive, but are subject to
the provisions of subsection (5) of this section. + }
(b) The date on which an active member reaches the normal
retirement age for the member under ORS 238A.160 { - ; - }
{ + . + }
(c) If the individual account program is terminated, the date
on which termination becomes effective, but only to the extent
the account is then funded { - ; - } { + . + }
(d) The date on which an active member becomes disabled, as
described in ORS 238A.155 { - (4); or - } { + (5). + }
(e) The date on which an active member dies.
{ + (4) If on the date that a person becomes an active member
the person has already reached the normal retirement age for the
person under ORS 238A.160, and the employer makes employer
contributions for the member under ORS 238A.340, the person is
vested in the employer account established under ORS 238A.350 (3)
on that date. + }
{ - (4) - } { + (5) + } If a member of the individual
account program who is not vested in the employer account
performs fewer than 600 hours of service in each of five
consecutive calendar years, hours of service performed before the
first calendar year of the period of five consecutive calendar
years shall be disregarded for purposes of determining whether
the member is vested under subsection (3)(a) of this section.
{ - (5) - } { + (6) + } Solely for purposes of determining
whether a member is vested under subsection (3)(a) of this
section, hours of service include creditable service, as defined
in ORS 238.005, performed by the person before the person became
an eligible employee, as long as the membership of the person
under ORS chapter 238 has not been terminated under the
provisions of ORS 238.095 on the date the person becomes an
eligible employee.
SECTION 12. { + (1) The amendments to ORS 238A.115 by section
10 of this 2011 Act apply to all members of the pension program
of the Oregon Public Service Retirement Plan, whether they become
members before, on or after the effective date of this 2011 Act.
(2) The amendments to ORS 238A.320 by section 11 of this 2011
Act apply to all members of the individual account program of the
Oregon Public Service Retirement Plan, whether they become
members before, on or after the effective date of this 2011
Act. + }
Enrolled House Bill 2113 (HB 2113-B) Page 8
{ +
CREDITING OF TIER I ACCOUNTS + }
SECTION 13. ORS 238.255 is amended to read:
238.255. { - (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. - }
{ + (1) The regular account for an active or inactive member
of the Public Employees Retirement System shall be examined each
Enrolled House Bill 2113 (HB 2113-B) Page 9
year. If the regular account is credited with earnings for the
previous year in an amount less than the earnings that would have
been credited pursuant to the assumed interest rate for that year
determined by the Public Employees Retirement Board, the amount
of the difference shall be credited to the regular account and
charged to a reserve account in the Public Employees Retirement
Fund established for the purpose. A reserve account so
established may not be maintained on a deficit basis for a period
of more than five years. Earnings in excess of the assumed
interest rate for years following the year for which a charge is
made to the reserve account shall first be applied to reduce or
eliminate the amount of a deficit.
(2) The regular account for an active or inactive member who
established membership in the system before January 1, 1996, as
described in ORS 238.430, may not be credited with earnings in
excess of the assumed interest rate until:
(a) The reserve account established under subsection (1) of
this section no longer has a deficit;
(b) The reserve account established under subsection (1) of
this section is fully funded with amounts determined by the
board, after consultation with the actuary employed by the board,
to be necessary to ensure a zero balance in the account when all
members who established membership in the system before January
1, 1996, as described in ORS 238.430, have retired; and
(c) The reserve account established under subsection (1) of
this section has been fully funded as described in paragraph (b)
of this subsection in each of the three immediately preceding
calendar years. + }
SECTION 14. { + The amendments to ORS 238.255 by section 13 of
this 2011 Act apply to all crediting of earnings for the calendar
year 2003 and all subsequent calendar years. + }
SECTION 15. { + ORS 238.258 is repealed. + }
{ +
ROTH CONTRIBUTIONS TO DEFERRED COMPENSATION PLAN + }
SECTION 16. { + Section 17 of this 2011 Act is added to and
made a part of ORS 243.401 to 243.507. + }
SECTION 17. { + (1) The Public Employees Retirement Board may
allow an eligible state employee who is participating in the
state deferred compensation plan to defer compensation on an
after-tax basis. The board shall establish a separate account for
each employee that defers compensation on an after-tax basis, and
maintain separate records for those accounts.
(2) The Public Employees Retirement Board may allow an eligible
state employee who is participating in the state deferred
compensation plan to convert compensation that was deferred on a
pretax basis to compensation that is deferred on an after-tax
basis to the extent allowed by federal law and subject to any
requirements of federal law for the conversion. + }
SECTION 18. ORS 243.460 is amended to read:
243.460. (1) The amount by which an eligible state employee's
salary is reduced under ORS 243.440 shall continue to be included
as regular compensation for the purpose of computing the
retirement, pension and Social Security benefits earned by the
employee { - , but that - } { + . If the amount is deferred on
a pretax basis, the + } amount shall not be considered current
taxable income for the purpose of computing federal and state
income taxes withheld on behalf of the employee.
Enrolled House Bill 2113 (HB 2113-B) Page 10
(2) The state deferred compensation plan established by ORS
243.401 to 243.507 supplements all other retirement and pension
systems established by the State of Oregon, and participation by
an eligible state employee in the state deferred compensation
plan shall not cause a reduction of any retirement or pension
benefits provided to the employee by law.
{ +
REEMPLOYMENT OF INACTIVE MEMBER OF PENSION PROGRAM + }
SECTION 19. ORS 238A.300 is amended to read:
238A.300. { + (1) + } Except as provided in ORS 238A.100
(2) { + and subsection (2) of this section + }, an eligible
employee who is employed in a qualifying position on or after
August 29, 2003, by a public employer that is participating in
the individual account program and who will not receive benefits
under ORS chapter 238 for service with the participating public
employer pursuant to the provisions of ORS 238A.025 becomes a
member of the individual account program on the first day of the
month after the employee completes six full calendar months of
employment. The six-month probationary period may not be
interrupted by more than 30 consecutive working days.
{ + (2) An inactive member of the pension program who
terminated membership in the individual account program pursuant
to ORS 238A.310 (2) becomes a member of the individual account
program immediately upon reemployment in a qualifying
position. + }
SECTION 20. ORS 169.810 is amended to read:
169.810. (1) Assumption by the regional correctional facility
of those custodial duties formerly performed by a county or city
jail constitutes an assumption of duties by a public employer
subject to ORS 236.610 to 236.640.
(2) An employee who transfers from employment at a county or
city jail to employment at a regional correctional facility
operated by the county or city by which the employee has been
employed shall be accorded the following rights:
(a) If a trial or probationary service period is required for
employment at the county or city jail, the period of county or
city employment of the employee shall apply to that requirement.
(b) An employee who transfers from employment at a county or
city jail to employment at the regional correctional facility
shall retain accumulated unused sick leave with pay and the
accumulated unused vacation with pay to which the employee was
entitled under county or city employment on the day before the
transfer that are supported by written records of accumulation
and use pursuant to a plan formally adopted and applicable to the
employee under county or city employment.
(c) Notwithstanding any other provision of law applicable to a
retirement system for county employees or city employees, an
employee who transfers from employment at a county or city jail
to employment at the regional correctional facility who was
participating in a retirement system under county or city
employment may elect, not later than the first day of the month
following the month in which the employee transfers, to continue
under the retirement system in which participating and not to
become, if eligible, a member of another retirement system. The
election shall be made in writing and shall be submitted to the
regional correctional facility administrator, the Public
Employees Retirement Board and the governing body of the counties
and cities that operate the regional correctional facility.
Enrolled House Bill 2113 (HB 2113-B) Page 11
(d) If an employee elects to continue under the retirement
system in which participating under county or city employment,
the employee shall continue to make required contributions to
that system and the administration of the regional correctional
facility shall make contributions on behalf of the employee
required of an employer participating in that system.
(e) If an employee fails to elect to continue under the
retirement system in which participating under county or city
employment as provided in paragraph (c) of this subsection or was
not participating in a retirement system under county or city
employment, the employee shall become, if eligible, a member of
the Public Employees Retirement System. If the employee is
eligible to become a member of the Public Employees Retirement
System, the period of continuous service of the employee under
county or city employment immediately before the transfer of the
employee shall apply to the six months' service requirement of
ORS 238.015, 238A.100 or 238A.300 { + (1) + }.
(3) The county or city employment records, or a copy thereof,
applicable to an employee transferred under subsection (2) of
this section shall be provided by the person having custody of
the records to the regional correctional facility administrator.
SECTION 21. { + The amendments to ORS 238A.300 by section 19
of this 2011 Act apply only to persons who are reemployed in
qualifying positions on or after the effective date of this 2011
Act. + }
{ +
EXPENDITURE LIMITATION + }
SECTION 22. { + Notwithstanding any other law limiting
expenditures, the limitation on expenditures established by
section 1 (1), chapter 495, Oregon Laws 2011 (Enrolled House Bill
5039), for the biennium beginning July 1, 2011, as the maximum
limits for payment of expenses from fees, moneys or other
revenues, including Miscellaneous Receipts, but excluding lottery
funds and federal funds, collected or received by the Public
Employees Retirement System, is increased by $475,600. + }
{ +
MISCELLANEOUS + }
SECTION 23. { + The unit captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }
{ +
EMERGENCY CLAUSE + }
SECTION 24. { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
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Enrolled House Bill 2113 (HB 2113-B) Page 12
Passed by House June 27, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 29, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2113 (HB 2113-B) Page 13
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2113 (HB 2113-B) Page 14
