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 3784

                         House Bill 3444

Sponsored by Representative CAMERON; Representatives FREEMAN,
  GILLIAM, HANNA, KRIEGER, RICHARDSON, THATCHER, WEIDNER,
  Senators FERRIOLI, GEORGE, KNOPP

                             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 if public body agrees to pay or provide benefit
to retired employees other than payments required or provided for
in statutes, public body must create separate account for funding
of those benefits and make annual contributions to account in
amounts necessary to amortize liability for benefits in 25 years
or less.
  Eliminates provision prohibiting local government and health
care insurer from creating group solely for purpose of rating or
of establishing premium for health care insurance coverage of
retired employees and dependents.

                        A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
  and amending ORS 243.303.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) As used in this section, 'public body' has
the meaning given that term in ORS 174.109.
  (2) If a public body agrees to pay or provide any benefit to a
retired employee of the public body other than the payments
required or provided for in statutes governing retirement
benefits for retired public employees, the public body must
create a separate account for the funding of those benefits and
make annual contributions to the account in amounts necessary to
amortize the liability for those benefits within a period of not
more than 25 years.
  (3) The provisions of this section apply to agreements to pay
or provide:
  (a) Health insurance after retirement of an employee;
  (b) Contributions to retirement accounts, annuities or other
accounts established for the purpose of providing benefits after
retirement;
  (c) Periodic payments to a retired employee; or
  (d) Any other benefit that is intended to provide retirement
benefits in addition to the benefits provided by law. + }
  SECTION 2. ORS 243.303 is amended to read:
  243.303. (1) As used in this section:
  (a) '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.
  (b) 'Local government' means any city, county, school district
or other special district in this state.
  (c) 'Retired employee' means a former officer or employee of a
local government who is retired for service or disability, and
who received or is receiving retirement benefits, under the
Public Employees Retirement System or any other retirement system
or plan applicable to officers and employees of the local
government.
  (2) The governing body of any local government that contracts
for or otherwise makes available health care insurance coverage
for officers and employees of the local government shall, insofar
as and to the extent possible, make that coverage available for
any retired employee of the local government who elects within 60
days after the effective date of retirement to participate in
that coverage and, at the option of the retired employee, for the
spouse of the retired employee and any unmarried children under
18 years of age. The health care insurance coverage shall be made
available for a retired employee until the retired employee
becomes eligible for federal Medicare coverage, for the spouse of
a retired employee until the spouse becomes eligible for federal
Medicare coverage and for a child until the child arrives at
majority, and may, but need not, be made available thereafter.
The governing body may prescribe reasonable terms and conditions
of eligibility and coverage, not inconsistent with this section,
for making the health care insurance coverage available. The
local government may pay none of the cost of making that coverage
available or may agree, by collective bargaining agreement or
otherwise, to pay part or all of that cost.
    { - (3) A local government and a health care insurer may not
create a group solely for the purpose of rating or of
establishing a premium for health care insurance coverage of
retired employees and their dependents that is separate from the
group for health care insurance coverage of officers and
employees of the local government and their dependents. Nothing
in this subsection prevents a local government from allocating
rates or premiums differently among retired employees and their
dependents and officers and employees of the local government and
their dependents once the rating or premium is established. - }
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