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. + } ---------- 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