Bill Text: OR HB3148 | 2013 | Regular Session | Introduced
Bill Title: Relating to payments made under Public Employees Retirement System that are not subject to Oregon income tax; declaring an emergency.
Sponsorship: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3148 Detail]
Download: Oregon-2013-HB3148-Introduced.html
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 3379
House Bill 3148
Sponsored by COMMITTEE ON BUSINESS AND LABOR
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.
Modifies law providing increased retirement benefits to members
of Public Employees Retirement System in compensation for income
taxation of retirement benefits. Provides that increased
retirement benefits enacted in 1995 not be paid to retired member
who does not pay Oregon income tax on benefits, without regard to
person's date of retirement.
Imposes similar prohibition for certain public employers that
provide retirement benefits to 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 payments made under Public Employees Retirement
System that are not subject to Oregon income tax; creating new
provisions; amending ORS 237.637 and 238.372; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 238.372 is amended to read:
238.372. (1) Except as provided in ORS 238.372 to 238.384, the
Public Employees Retirement Board may not pay the increased
benefit provided by chapter 569, Oregon Laws 1995, if the board
receives notice under ORS 238.372 to 238.384 that the payments
made to the person under this chapter are not subject to Oregon
personal income tax under ORS 316.127 (9).
{ - (2) The provisions of ORS 238.372 to 238.384 do not apply
to: - }
{ - (a) A retired member of the system who is receiving
payments under this chapter and whose effective date of
retirement is before January 1, 2012; - }
{ - (b) A person who is receiving payments under this chapter
by reason of the retirement of a member whose effective date of
retirement is before January 1, 2012; and - }
{ - (c) Any other person who receives payments under this
chapter that began before January 1, 2012. - }
{ - (3) - } { + (2) + } The board shall give written
notification of the provisions of ORS 238.372 to 238.384 to all
persons applying for or receiving payments under this chapter.
{ - (4) - } { + (3) + } A person receiving payments under
this chapter that are not increased under chapter 569, Oregon
Laws 1995, by reason of ORS 238.372 to 238.384 has no right or
claim to the increased benefit provided by chapter 569, Oregon
Laws 1995, except as provided in ORS 238.372 to 238.384.
SECTION 2. { + Section 3 of this 2013 Act is added to and made
a part of ORS 238.372 to 238.384. + }
SECTION 3. { + (1) On or before October 31, 2013, each person
receiving payments under this chapter shall provide the Public
Employees Retirement Board with a written statement that
indicates whether the payments received by the person are subject
to Oregon personal income tax under ORS 316.127 (9).
(2) If a person receiving payments under this chapter does not
notify the board on or before October 31, 2013, that the payments
are subject to Oregon personal income tax, or notifies the board
that the payments are not subject to Oregon personal income tax,
the board shall reduce any benefits payable to the person by the
amount by which the benefits were increased under chapter 569,
Oregon Laws 1995.
(3) The reduction in benefits first applies to an allowance
payable on February 1, 2014, for the month of January 2014. + }
SECTION 4. { + Section 3 of this 2013 Act is repealed on
December 31, 2014. + }
SECTION 5. 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,
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, 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, 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. 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 { + retirement + }
benefits under this section if the payments made to the person
are not subject to Oregon personal income tax under ORS 316.127
(9). A public employer that is subject to the requirements of
this section shall adopt procedures similar to those described in
ORS 238.372 to 238.384 for the purpose of implementing this
subsection. The Department of Revenue shall provide to a public
employer that is subject to the requirements of this section
{ - such - } { + the + } information regarding Oregon
personal income tax returns { - as - } { + that + } the
public employer deems necessary to determine whether the
retirement benefits paid to the person by the public employer are
subject to Oregon personal income tax under ORS 316.127 (9).
{ - (3) The provisions of subsection (2) of this section do
not apply to: - }
{ - (a) A retired police officer or firefighter who is
receiving payments under the public employer's plan and whose
effective date of retirement is before January 1, 2012; - }
{ - (b) A person who is receiving payments under the public
employer's plan by reason of the retirement of a police officer
or firefighter whose effective date of retirement is before
January 1, 2012; and - }
{ - (c) Any other person who receives payments under the
public employer's plan that began before January 1, 2012. - }
SECTION 6. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
the provisions of section 3 of this 2013 Act and the amendments
to ORS 237.637 and 238.372 by sections 1 and 5 of this 2013 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
of Oregon, 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
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 or who will be adversely affected by
section 3 of this 2013 Act or the amendments to ORS 237.637 and
238.372 by sections 1 and 5 of 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. { + (1) Section 3 of this 2013 Act and the
amendments to ORS 237.637 and 238.372 by sections 1 and 5 of this
2013 Act do not affect any benefit paid under chapter 569, Oregon
Laws 1995, before January 2, 2014.
(2) Section 3 of this 2013 Act and the amendments to ORS
237.637 and 238.372 by sections 1 and 5 of this 2013 Act do not
affect any benefit provided by chapter 796, Oregon Laws 1991. + }
SECTION 8. { + (1) The amendments to ORS 237.637 and 238.372
by sections 1 and 5 of this 2013 Act become operative on January
1, 2014.
(2) The Public Employees Retirement Board may take any action
before the operative date specified in subsection (1) of this
section to enable the board to exercise, on and after the
operative date specified in subsection (1) of this section, all
the duties, functions and powers conferred on the board by the
amendments to ORS 237.637 and 238.372 by sections 1 and 5 of this
2013 Act. + }
SECTION 9. { + 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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