Bill Text: OR HB2991 | 2011 | Regular Session | Introduced
Bill Title: Relating to public employee retirement; declaring an emergency.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2991 Detail]
Download: Oregon-2011-HB2991-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 238
House Bill 2991
Sponsored by Representative RICHARDSON (Presession filed.)
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.
Prohibits Public Employees Retirement Board from paying
increased benefit by reason of state income taxation of payments
made by board if person receiving payments does not pay Oregon
income tax on retirement benefits. Provides procedures for
enforcing prohibition.
Imposes similar prohibition for certain public employers that
provide retirement benefits for police officers and firefighters
other than by participation in Public Employees Retirement
System.
Provides for expedited review by Supreme Court upon petition by
adversely affected party.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to public employee retirement; creating new provisions;
amending ORS 237.635 and 237.637; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2011 Act is added to and made
a part of ORS chapter 238. + }
SECTION 2. { + (1) The Public Employees Retirement Board may
not pay the increased benefit provided by ORS 238.375, 238.380,
238.385 and 238.387 to a person during any period of time in
which payments made to the person under this chapter are not
subject to Oregon personal income tax under ORS 316.127 (9).
(2) The board shall require that a person applying for payments
under this chapter give a written statement that indicates
whether the person will be a resident of Oregon when the payments
are to be made. If the person indicates that the person will not
be a resident of this state when the payments are to be made, the
board may not pay the person the increased benefit provided by
ORS 238.375, 238.380, 238.385 and 238.387.
(3) If a person is receiving payments under this chapter and,
after the payments commence, the payments become exempt from
Oregon personal income tax under ORS 316.127 (9), the person
shall promptly notify the board that the payments are no longer
subject to Oregon personal income tax. Upon receiving notice
under this subsection, the board shall reduce the benefits
payable to the person by the percentage by which the benefits
were increased under ORS 238.375, 238.380, 238.385 and 238.387.
(4) Not less than once each calendar year, the Department of
Revenue shall provide to the board such information on Oregon
personal income tax returns as the board determines to be helpful
in determining whether persons receiving payments under this
chapter have complied with the requirements of this section.
Notwithstanding ORS 314.835 or other law governing the disclosure
of tax information, the department shall provide the board with
the information requested by the board.
(5) If the board at any time after the retirement or death of a
person has reason to believe that a person receiving payments
under this chapter does not pay Oregon personal income tax on
those payments under ORS 316.127 (9), the board shall require the
person to provide the board with a written statement that
indicates whether the person pays Oregon personal income tax on
payments received under this chapter. The board shall require a
statement under this subsection from a person receiving payments
under this chapter who has not already provided a statement or
notification under subsection (2) or (3) of this section if:
(a) The person directs that payments be mailed to an address
that is not located in this state; or
(b) The person's address of record with the board is not
located in this state.
(6) The statements required by subsections (2) and (5) of this
section constitute declarations under penalty of perjury and must
include the following sentence in prominent letters immediately
above the signature of the declarant: 'I hereby declare that the
above statement is true to the best of my knowledge and belief,
and that I understand it is subject to penalty for perjury. '
(7) The board shall reduce the benefits payable to a person by
the percentage by which the benefits were increased under ORS
238.375, 238.380, 238.385 and 238.387 if the board at any time
determines that:
(a) The person has failed to comply with subsection (3) of this
section;
(b) The person has failed to provide a statement required by
subsection (2) or (5) of this section; or
(c) The person has provided a false statement under subsection
(2) or (5) of this section.
(8) Notwithstanding ORS 238.375 (2), if a person fails to
comply with the requirements of this section and the board
reduces the benefits payable to the person under this section,
the board may recover as overpayments all amounts improperly paid
to the person in the manner provided by ORS 238.715.
(9) If the board reduces the benefits payable to a person under
this section and the person thereafter resumes residency in this
state and resumes payment of Oregon personal income taxes on
payments made under this chapter, the board shall resume paying
the increased benefit provided by ORS 238.375, 238.380, 238.385
and 238.387. The board by rule shall establish procedures for
resumption of payments of increased benefits under this
subsection.
(10) The board shall give written notification of the
provisions of this section to all persons applying for payments
under this chapter.
(11) The requirements of this section apply only to persons who
receive the increased benefit provided by ORS 238.375, 238.380,
238.385 and 238.387. + }
SECTION 3. ORS 237.635 is amended to read:
237.635. (1) Any public employer that provides retirement
benefits to its police officers and firefighters other than by
participation in the Public Employees Retirement System pursuant
to the provisions of ORS 237.620 shall provide increases to the
police officers and firefighters of the public employer, both
active and retired, that are equal to the increases in retirement
benefits that are provided for in { - this 1991 Act - } { +
ORS 238.385 and 238.387 + } for active and retired police
officers or firefighters who are members of the Public Employees
Retirement System, or shall provide to those police officers and
firefighters increases in retirement benefits that are the
actuarial equivalent of the increases in retirement benefits that
are provided for in { - this 1991 Act - } { + ORS 238.385 and
238.387 + } for police officers or firefighters who are members
of the Public Employees Retirement System. No other retirement
benefit or other benefit provided by those public employers shall
be decreased by the employer by reason of the increases mandated
by this section.
(2) The increased benefits provided for in this section apply
only to police officers or firefighters who establish membership
before July 14, 1995, in a retirement plan or system offered by a
public employer in lieu of membership in the Public Employees
Retirement System pursuant to the provisions of ORS 237.620.
{ + (3) A public employer that is subject to the requirements
of this section shall cease paying increased benefits under this
section to any person who is not a resident of this state and who
does not pay Oregon personal income tax on the payments made to
the person. A public employer that is subject to the requirements
of this section shall adopt procedures similar to those described
in section 2 of this 2011 Act for the purpose of implementing
this subsection. + }
SECTION 4. ORS 237.637 is amended to read:
237.637. { + (1) + } Any public employer that provides
retirement benefits to its police officers and firefighters other
than by participation in the Public Employees Retirement System
pursuant to the provisions of ORS 237.620 shall provide increases
to the police officers and firefighters of the public employer,
both active and retired, that are equal to the increases in
retirement benefits that are provided for in { - chapter 569,
Oregon Laws 1995, - } { + ORS 238.375 and 238.380 + } for
active and retired police officers or firefighters who are
members of the Public Employees Retirement System, or the public
employer shall provide to those police officers and firefighters
increases in retirement benefits that are the actuarial
equivalent of the increases in retirement benefits that are
provided for in { - chapter 569, Oregon Laws 1995, - } { +
ORS 238.375 and 238.380 + } for police officers or firefighters
who are members of the Public Employees Retirement System.
Increases provided under this section shall be reduced by the
amount of any benefit increase provided by ORS 237.635 in the
same manner that increases in retirement benefits that are
provided for in { - chapter 569, Oregon Laws 1995, - }
{ + ORS 238.375 and 238.380 + } for active and retired police
officers or firefighters who are members of the Public Employees
Retirement System are reduced to reflect amounts paid to those
members under the provisions of { - chapter 796, Oregon Laws
1991 - } { + ORS 238.385 and 238.387 + }. No other retirement
benefit or other benefit provided by those public employers shall
be decreased by the employer by reason of the increases mandated
by this section.
{ + (2) A public employer that is subject to the requirements
of this section shall cease paying increased benefits under this
section to any person who is not a resident of this state and who
does not pay Oregon personal income tax on the payments made to
the person. A public employer that is subject to the requirements
of this section shall adopt procedures similar to those described
in section 2 of this 2011 Act for the purpose of implementing
this subsection. + }
SECTION 5. { + The amendments to ORS 237.635 and 237.637 by
sections 3 and 4 of this 2011 Act do not affect any benefit paid
under the provisions of chapter 796, Oregon Laws 1991, or chapter
569, Oregon Laws 1995, before January 1, 2012. + }
SECTION 6. { + Sections 1 and 2 of this 2011 Act and the
amendments to ORS 237.635 and 237.637 by sections 3 and 4 of this
2011 Act become operative January 1, 2012. + }
SECTION 7. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
the provisions of section 2 of this 2011 Act and the amendments
to ORS 237.635 and 237.637 by sections 3 and 4 of this 2011 Act
breach any contract between members of the Public Employees
Retirement System and their employers, violate the terms of the
settlement agreement entered into in the case of Stovall v.
State, 324 Or. 92 (1996) or violate any constitutional provision,
including but not limited to impairment of contract rights of
members of the Public Employees Retirement System under section
21, Article I of the Oregon Constitution, or clause 1, section
10, Article I of the United States Constitution.
(2) A person who is or who will be adversely affected by
section 2 of this 2011 Act or the amendments to ORS 237.635 and
237.637 by sections 3 and 4 of this 2011 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 2011 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 8. { + 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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