Bill Text: OR SB658 | 2013 | Regular Session | Introduced

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Bill Title: Relating to cost-of-living adjustments under Public Employees Retirement System; declaring an emergency.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB658 Detail]

Download: Oregon-2013-SB658-Introduced.html

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     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 2414

                         Senate Bill 658

Sponsored by Senator WHITSETT

                             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.

  Limits cost-of-living adjustments for monthly benefit payments
under Public Employees Retirement System to members of system who
have at least 10 years of creditable service at time member
retires, becomes disabled or dies. Applies only to members who
retire, become disabled or die on or after effective date of Act.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to cost-of-living adjustments under Public Employees
  Retirement System; creating new provisions; amending ORS
  238.360 and 238A.210; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 238.360 is amended to read:
  238.360. (1) As soon as practicable after January 1 each year,
the Public Employees Retirement Board shall determine the
percentage increase or decrease in the cost-of-living for the
previous calendar year, based on the Consumer Price Index
(Portland area-all items) as published by the Bureau of Labor
Statistics of the U.S. Department of Labor for the Portland,
Oregon, area. Prior to July 1 each year the allowance which the
member or the member's beneficiary is receiving or is entitled to
receive on August 1 for the month of July shall be multiplied by
the percentage figure determined, and the allowance for the next
12 months beginning July 1 adjusted to the resultant amount.
  (2) Such increase or decrease shall not exceed two percent of
any monthly retirement allowance in any year and no allowance
shall be adjusted to an amount less than the amount to which the
recipient would be entitled if no cost-of-living adjustment were
authorized.
  (3) The amount of any cost-of-living increase or decrease in
any year in excess of the maximum annual retirement allowance
adjustment of two percent shall be accumulated from year to year
and included in the computation of increases or decreases in
succeeding years.
  (4) Any increase in the allowance shall be paid from
contributions of the public employer under ORS 238.225. Any
decrease in the allowance shall be returned to the employer in
the form of a credit against contributions of the employer under
ORS 238.225.

   { +  (5) An allowance shall be adjusted under this section
only if the member has at least 10 years of creditable service
when the member retires. + }
  SECTION 2.  { + The amendments to ORS 238.360 by section 1 of
this 2013 Act apply only to members of the Public Employees
Retirement System who retire on or after the effective date of
this 2013 Act. + }
  SECTION 3. ORS 238A.210 is amended to read:
  238A.210. (1) As soon as practicable after January 1 each year,
the Public Employees Retirement Board shall determine the
percentage increase or decrease in the cost of living for the
previous calendar year, based on the Portland-Salem, OR-WA,
Consumer Price Index for All Urban Consumers for All Items, as
published by the Bureau of Labor Statistics of the United States
Department of Labor. Before July 1 each year, the board shall
adjust every pension payable under ORS 238A.180, 238A.185 and
238A.190, every disability benefit under ORS 238A.235 and every
death benefit payable under ORS 238A.230 by multiplying the
monthly payment by the percentage figure determined by the board.
If a person has been receiving a pension or benefit for less than
12 months on July 1 of a calendar year, the board shall make a
pro rata reduction of the adjustment based on the number of
months that the pension or benefit was received before July 1 of
the year. The adjustment shall be made for the payments payable
on August 1 and thereafter.
  (2) An increase or decrease in the benefit payments under this
section may not exceed two percent in any year. A pension or
death benefit may not be adjusted to an amount that is less than
the amount that would have been payable if no cost-of-living
adjustment had been made since the pension or death benefit first
became payable.
   { +  (3) A pension or other benefit shall be adjusted under
this section only if the member has at least 10 years of
creditable service when the member retires, becomes disabled or
dies. + }
  SECTION 4.  { + The amendments to ORS 238A.210 by section 3 of
this 2013 Act apply only to members of the Public Employees
Retirement System who retire, become disabled or die on or after
the effective date of this 2013 Act. + }
  SECTION 5.  { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
this 2013 Act breaches any contract between members of the Public
Employees Retirement System and their employers or violates 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 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 or will be 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 6.  { + 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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