Bill Text: OR SB269 | 2013 | Regular Session | Enrolled
Bill Title: Relating to an optional retirement plan for employees of the Oregon University System; and declaring an emergency.
Spectrum: Committee Bill
Status: (Passed) 2013-05-24 - Effective date, May 16, 2013. [SB269 Detail]
Download: Oregon-2013-SB269-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 269
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Committee on
Education and Workforce Development for Oregon University
System)
CHAPTER ................
AN ACT
Relating to an optional retirement plan for employees of the
Oregon University System; creating new provisions; amending ORS
243.800; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 243.800 is amended to read:
243.800. (1) Notwithstanding any provision of ORS chapter 238
or 238A or ORS 243.910 to 243.945, the State Board of Higher
Education shall establish and administer an Optional Retirement
Plan for administrative and academic employees of the Oregon
University System { - who are eligible for membership in the
Public Employees Retirement System - } . The Optional Retirement
Plan must be a qualified plan under the Internal Revenue Code,
capable of accepting funds transferred under subsection (7) of
this section without the transfer being treated as a taxable
event under the Internal Revenue Code, and willing to accept
those funds. Retirement and death benefits shall be provided
under the plan by the purchase of annuity contracts, fixed or
variable or a combination thereof, or by contracts for
investments in mutual funds.
{ - (2) The State Board of Higher Education shall select at
least two life insurance companies providing fixed and variable
annuities and at least two investment companies providing mutual
funds, but not more than five companies in total, for the purpose
of providing benefits under the Optional Retirement Plan. The
State Board of Higher Education shall establish selection
criteria for the purpose of this subsection. - }
{ + (2) An administrative or academic employee of the Oregon
University System may elect to participate in the Optional
Retirement Plan upon completion of:
(a) Six hundred hours of employment, or the equivalent as
determined by the State Board of Higher Education; and
(b) Six months of employment that is not interrupted by more
than 30 consecutive working days. + }
(3) An administrative or academic employee may make an
irrevocable election to participate in the Optional Retirement
Plan within six months after being employed. An election under
this subsection is effective on the first day of the month
Enrolled Senate Bill 269 (SB 269-INTRO) Page 1
following { - six full months of employment - } { + the
completion of the requirements of subsection (2) of this
section + }.
(4) An administrative or academic employee who does not elect
to participate in the Optional Retirement Plan:
(a) Remains or becomes a member of the Public Employees
Retirement System in accordance with ORS chapters 238 and 238A;
or
(b) Continues to be assisted by the State Board of Higher
Education under ORS 243.920 if the employee is being so assisted.
(5) Except as provided in subsection (6) of this section,
employees who elect to participate in the Optional Retirement
Plan are ineligible for active membership in the Public Employees
Retirement System or for any assistance by the State Board of
Higher Education under ORS 243.920 as long as those employees are
employed in the Oregon University System and the plan is in
effect.
(6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is not vested shall be considered by the Public Employees
Retirement Board to be a terminated member under the provisions
of ORS 238.095 as of the effective date of the election, and the
amount credited to the member account of the member shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board in the manner provided by
subsection (7) of this section.
(b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is vested shall be considered to be an inactive member by the
Public Employees Retirement Board and shall retain all the
rights, privileges and options under ORS chapter 238 unless the
employee makes a written request to the Public Employees
Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A
request for a transfer must be made at the time the member elects
to participate in the Optional Retirement Plan. Upon receiving
the request, the Public Employees Retirement Board shall transfer
all amounts credited to the member account of the member directly
to the Optional Retirement Plan, and shall terminate all rights,
privileges and options of the employee under ORS chapter 238.
(c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a
vested member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered to be a
terminated member of the pension program by the Public Employees
Retirement Board as of the effective date of the election.
(d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered an inactive
member of the pension program by the Public Employees Retirement
Board as of the effective date of the election. An employee who
is subject to the provisions of this paragraph retains all the
rights, privileges and options of an inactive member of the
pension program. If the actuarial equivalent of the employee's
benefit under the pension program at the time that the election
Enrolled Senate Bill 269 (SB 269-INTRO) Page 2
becomes effective is $5,000 or less, the employee may make a
written request to the Public Employees Retirement Board for a
transfer of the employee's interest under the pension program to
the Optional Retirement Plan. The request must be made at the
time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement
Board shall transfer the amount determined to be the actuarial
equivalent of the employee's benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.
(e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the individual account program of the Oregon Public
Service Retirement Plan as described in ORS 238A.320 on the date
that the election becomes effective, shall be considered an
inactive member of the individual account program by the Public
Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this
paragraph retains all the rights, privileges and options of an
inactive member of the individual account program. An
administrative or academic employee who elects to participate in
the Optional Retirement Plan, and who is a member of the
individual account program of the Oregon Public Service
Retirement Plan, may make a written request to the Public
Employees Retirement Board that all amounts in the member's
employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320,
be transferred to the Optional Retirement Plan. The request must
be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amounts directly to
the Optional Retirement Plan, and shall terminate the membership
of the employee in the individual account program upon making the
transfer.
(f) Notwithstanding paragraphs (b), (d) and (e) of this
subsection, the Public Employees Retirement Board may not treat
any employee as an inactive member under the provisions of this
subsection for the purpose of receiving any benefit under ORS
chapter 238 or 238A that requires that the employee be 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 system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and
trust.
(7) Any amounts transferred from the Public Employees
Retirement Fund under subsection (6) of this section shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board and may not be made available
to the employee.
(8) An employee participating in the Optional Retirement Plan
{ + who was hired before July 1, 2014, + } shall contribute
monthly an amount equal to the percentage of the employee's
salary that the employee would otherwise have contributed as an
employee contribution to the Public Employees Retirement System
if the employee had not elected to participate in the Optional
Retirement Plan.
(9) { + For an employee participating in the Optional
Retirement Plan who was hired before July 1, 2014, + } the State
Board of Higher Education shall contribute monthly to the
Enrolled Senate Bill 269 (SB 269-INTRO) Page 3
Optional Retirement Plan the percentage of salary of
{ - each - } { + the + } employee { - participating in the
plan - } equal to the percentage of salary that would otherwise
have been contributed as an employer contribution on behalf of
the employee to the Public Employees Retirement System, before
any offset under ORS 238.229 (2), if the employee had not elected
to participate in the Optional Retirement Plan.
{ + (10) For an employee participating in the Optional
Retirement Plan who was hired on or after July 1, 2014, the State
Board of Higher Education shall contribute monthly to the
Optional Retirement Plan:
(a) Eight percent of the employee's salary; and
(b) A percentage of the employee's salary equal to the
percentage of salary contributed by the employee to the Oregon
University System Tax-Deferred Investment 403(b) Plan under ORS
243.820, up to four percent of the employee's salary in each pay
period. + }
{ - (10) - } { + (11) + } Both employee and employer
contributions to an Optional Retirement Plan shall be remitted
directly to the companies that have issued annuity contracts to
the participating employees or directly to the mutual funds.
{ - (11) - } { + (12) + } Benefits under the Optional
Retirement Plan are payable to employees who elect to participate
in the plan and their beneficiaries by the selected annuity
provider or mutual fund in accordance with the terms of the
annuity contracts or the terms of the contract with the mutual
fund. Employees electing to participate in the { + Optional
Retirement + } Plan agree that benefits payable under the plan
are not obligations of the State of Oregon or of the Public
Employees Retirement System.
SECTION 2. { + The amendments to ORS 243.800 by section 1 of
this 2013 Act do not affect any collective bargaining agreement
entered into before the effective date of this 2013 Act. + }
SECTION 3. { + 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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Passed by Senate March 27, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House May 9, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 269 (SB 269-INTRO) Page 4
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 269 (SB 269-INTRO) Page 5
