Bill Text: OR HB3206 | 2013 | Regular Session | Introduced

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Bill Title: Relating to public employee retirement; declaring an emergency.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3206 Detail]

Download: Oregon-2013-HB3206-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1188

                         House Bill 3206

Sponsored by Representative CONGER

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Provides that Tier 1 and Tier 2 members cease to be members of
individual account program on effective date of Act. Allows
member who is already member of individual account program to
continue as member for purpose of amounts in employee account,
but prohibits further employee contributions to account.
  Directs board to establish new account for Tier 1 or Tier 2
employee. Requires that employee contributions and earnings on
contributions in account be applied against costs of member's
pension or other retirement benefits payable to member. Specifies
rules for withdrawal of new account by inactive member.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
  amending ORS 238A.320; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2, 3 and 4 of this 2013 Act are added
to and made a part of ORS chapter 238A. + }
  SECTION 2.  { + (1) A member who established membership in the
Public Employees Retirement System before August 29, 2003, as
described in ORS 238A.025 (4), ceases to be a member of the
individual account program on the effective date of this 2013
Act.
  (2) A member who established membership in the Public Employees
Retirement System before August 29, 2003, as described in ORS
238A.025 (4), and who is a member of the individual account
program on the effective date of this 2013 Act, continues to be a
member for the purpose of amounts in the employee account
established for the member under ORS 238A.350 (2), and the Public
Employees Retirement Board shall continue to make adjustments to
the account in the manner prescribed by ORS 238A.350 (1) on and
after the effective date of this 2013 Act, but no further
employee contributions may be deposited in the account on or
after the effective date of this 2013 Act by reason of service by
the member.
  (3) Employee contributions under ORS 238A.330 made on or after
the effective date of this 2013 Act by or on behalf of a member
who established membership in the Public Employees Retirement
System before August 29, 2003, as described in ORS 238A.025 (4),
may not be deposited by the Public Employees Retirement Board in
the employee account established for the member under ORS
238A.350 (2), but shall instead be deposited in the account
established for the member under section 3 of this 2013 Act. + }
  SECTION 3.  { + (1) The Public Employees Retirement Board shall
establish an account for each active member of the Public
Employees Retirement System who established membership in the
system before August 29, 2003, as described in ORS 238A.025 (4).
Each account shall be adjusted at least annually in accordance
with rules adopted by the board to reflect any net earnings or
losses on those contributions. The adjustments described in this
subsection shall continue until the account is withdrawn or
applied against the costs of the pension or other retirement
benefits payable to the member.
  (2) Unless the amounts in an account created under this section
are withdrawn under section 4 of this 2013 Act, the amounts in
the account shall be applied by the board to pay the costs of the
pension or other retirement benefits payable to or on behalf of
the member. + }
  SECTION 4.  { + (1) An inactive member may elect to receive a
distribution of the amounts in the member's account established
under section 3 of this 2013 Act if the inactive member has
separated from all service with participating public employers
and with employers who are treated as part of a participating
public employer's controlled group under the federal laws and
rules governing the status of the Public Employees Retirement
System and the Public Employees Retirement Fund as a qualified
governmental retirement plan and trust.
  (2) A member who is vested in the pension program established
under this chapter and who is eligible to withdraw from the
pension program under ORS 238A.120 may make an election under
this section only if the member also withdraws from the pension
program. + }
  SECTION 5. 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 (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.
  (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.
  (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.
   { +  (7) A member becomes vested in the account established
for the member under section 3 of this 2013 Act on the date the
account is established under section 3 of this 2013 Act. + }
  SECTION 6.  { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
this 2013 Act breaches any contract between members of the Public
Employees Retirement System and their employers or violates any
constitutional provision, including but not limited to impairment
of contract rights of members of the Public Employees Retirement
System under Article I, section 21, of the Oregon Constitution,
or Article I, section 10, clause 1, of the United States
Constitution.
  (2) A person who is adversely affected by this 2013 Act or who
will be adversely affected by this 2013 Act may institute a
proceeding for review by filing with the Supreme Court a petition
that meets the following requirements:
  (a) The petition must be filed within 60 days after the
effective date of this 2013 Act.
  (b) The petition must include the following:
  (A) A statement of the basis of the challenge; and
  (B) A statement and supporting affidavit showing how the
petitioner is adversely affected.
  (3) The petitioner shall serve a copy of the petition by
registered or certified mail upon the Public Employees Retirement
Board, the Attorney General and the Governor.
  (4) Proceedings for review under this section shall be given
priority over all other matters before the Supreme Court.
  (5) The Supreme Court shall allow public employers
participating in the Public Employees Retirement System to
intervene in any proceeding under this section.
  (6) In the event the Supreme Court determines that there are
factual issues in the petition, the Supreme Court may appoint a
special master to hear evidence and to prepare recommended
findings of fact. + }
  SECTION 7.  { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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