Bill Text: OR SB748 | 2013 | Regular Session | Introduced
Bill Title: Relating to public employees; declaring an emergency.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB748 Detail]
Download: Oregon-2013-SB748-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 3673
Senate Bill 748
Sponsored by Senator KNOPP; Senator WHITSETT, Representatives
CONGER, FREEMAN
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 provisions relating to Public Employees Retirement
System and collective bargaining by public employees.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to public employees; creating new provisions; amending
ORS 237.635, 237.637, 238.005, 238.015, 238.200, 238.360,
238.372, 238.374, 238.376, 238.378, 238A.005, 238A.115,
238A.145, 238A.210, 238A.320, 243.746 and 314.840; repealing
ORS 238.074, 238A.142 and 238A.305; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
{ +
LIMITATION ON COST OF LIVING ADJUSTMENT + }
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 board shall
adjust + } 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
multiplying the allowance or the maximum monthly amount
determined under subsection (6) of this section, whichever is
less, + } by the percentage figure determined { - , and the
allowance for the next 12 months beginning July 1 adjusted to the
resultant amount - } { + by the board and adding the resultant
amount to the allowance + }.
{ + (2) The allowance shall be adjusted under subsection (1)
of this section for the next 12 months beginning July 1. + }
{ - (2) - } { + (3) + } { - Such - } { + An + }
increase or decrease { - shall - } { + under subsection (1)
of this section may + } not exceed two percent of any monthly
retirement allowance in any year and { - no - } { + an + }
allowance
{ - shall - } { + may not + } 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) - } { + (4) + } 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) - } { + (5) + } 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.
{ + (6) Except as provided in section 5 of this 2013 Act, to
determine the maximum monthly amount to which the cost-of-living
adjustment provided for in subsection (1) of this section may be
applied, the board shall multiply the maximum monthly amount for
the previous year by the percentage increase or decrease
determined by the board under subsection (1) of this section. + }
SECTION 2. { + The amendments to ORS 238.360 by section 1 of
this 2013 Act apply to all members of the Public Employees
Retirement System, regardless of the date the member retires. + }
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 { + or the maximum monthly amount determined
under subsection (5) of this section, whichever is less, + } by
the percentage figure determined by the board { + and adding the
resultant amount to the monthly payment + }.
{ + (2) The adjustment under subsection (1) of this section
shall be made for the payments payable on August 1 and
thereafter.
(3) + } 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 { + under subsection
(1) of this section + } 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) - } { + (4) + } 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.
{ + (5) Except as provided in section 5 of this 2013 Act, to
determine the maximum monthly amount to which the cost-of-living
adjustment provided for in subsection (1) of this section may be
applied, the board shall multiply the maximum monthly amount for
the previous year by the percentage increase or decrease
determined by the board under subsection (1) of this section. + }
SECTION 4. { + The amendments to ORS 238A.210 by section 3 of
this 2013 Act apply to all members of the Public Employees
Retirement System, regardless of the date the member retires,
becomes disabled or dies. + }
SECTION 5. { + (1) The maximum monthly amount to which the
cost-of-living adjustment under ORS 238.360 may be applied for
the 12 months beginning July 1, 2014, is $2,000.
(2) The maximum monthly amount to which the cost-of-living
adjustment under ORS 238A.210 may be applied for payments payable
between August 1, 2014, and July 31, 2015, is $2,000. + }
{ +
TAXATION OF OUT-OF-STATE RETIREES + }
SECTION 6. 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 - } { + benefits + } provided by { + chapter
796, Oregon Laws 1991, or + } 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 796,
Oregon Laws 1991, or + } 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 796, Oregon Laws 1991, or + }
chapter 569, Oregon Laws 1995, except as provided in ORS 238.372
to 238.384.
SECTION 7. { + Section 8 of this 2013 Act is added to and made
a part of ORS 238.372 to 238.384. + }
SECTION 8. { + (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.
(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, the board shall reduce
any benefits payable to the person by the amount by which the
benefits were increased under chapter 796, Oregon Laws 1991, and
chapter 569, Oregon Laws 1995. The reduction in benefits becomes
effective on January 1, 2014. + }
SECTION 9. { + Section 8 of this 2013 Act is repealed on
December 31, 2014. + }
SECTION 10. ORS 238.374 is amended to read:
238.374. (1) A person applying for payments under this chapter
shall give a written statement to the Public Employees Retirement
Board that indicates whether the payments will be subject to
Oregon personal income tax under ORS 316.127 (9). If the person
fails to provide the statement required by this subsection, or
the statement indicates that the payments will not be subject to
Oregon personal income tax under ORS 316.127 (9), the board may
not pay the person the increased { - benefit - } { +
benefits + } provided by { + chapter 796, Oregon Laws 1991,
or + } chapter 569, Oregon Laws 1995.
(2) If a person is receiving payments under this chapter that
have not been increased under { + chapter 796, Oregon Laws 1991,
or + } chapter 569, Oregon Laws 1995, by reason of the provisions
of subsection (1) of this section, and thereafter the payments
become subject to Oregon personal income tax, the person shall
promptly notify the Public Employees Retirement Board by written
statement that the payments are subject to Oregon personal income
tax.
(3) If a person is receiving payments under this chapter that
have not been increased under { + chapter 796, Oregon Laws 1991,
or + } chapter 569, Oregon Laws 1995, by reason of the provisions
of subsection (1) of this section, and the board receives notice
under subsection (2) of this section that payments to the person
under this chapter are subject to Oregon personal income tax, or
determines under ORS 238.378 that payments to the person under
this chapter are subject to Oregon personal income tax, the board
shall initiate payment of the increased { - benefit - } { +
benefits + } provided by { + chapter 796, Oregon Laws 1991,
and + } chapter 569, Oregon Laws 1995. The increase in benefits
becomes effective on the first day of the calendar year following
receipt of notice by the board.
SECTION 11. ORS 238.376 is amended to read:
238.376. (1) If a person is receiving payments under this
chapter, and after the payments commence the payments cease to be
subject to Oregon personal income tax under ORS 316.127 (9), the
person shall promptly notify the Public Employees Retirement
Board by written statement that the payments are no longer
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 796, Oregon Laws 1991,
and + } chapter 569, Oregon Laws 1995. The reduction in benefits
becomes effective on the first day of the calendar year following
receipt of notice by the board.
(2) If a person is receiving payments under this chapter that
have been reduced { - under the provisions of subsection (1) of
this section - } { + because the payments are not subject to
Oregon personal income tax + }, and thereafter the payments
become subject to Oregon personal income tax, the person shall
promptly notify the board by written statement that the payments
are once again subject to Oregon personal income tax.
(3) If a person is receiving payments under this chapter that
have been reduced { - under the provisions of subsection (1) of
this section - } { + because the payments are not subject to
Oregon personal income tax + }, and the board receives notice
under subsection (2) of this section that payments to the person
under this chapter are once again subject to Oregon personal
income tax, or determines under ORS 238.378 that payments to the
person under this chapter are once again subject to Oregon
personal income tax, the board shall resume payment of the
increased { - benefit - } { + benefits + } provided by
{ + chapter 796, Oregon Laws 1991, and + } chapter 569, Oregon
Laws 1995. The increase in benefits becomes effective on the
first day of the calendar year following receipt of notice by the
board.
SECTION 12. ORS 238.378 is amended to read:
238.378. (1) Not less than once each calendar year, the Public
Employees Retirement Board shall provide to the Department of
Revenue information identifying persons to whom payments have
been made under this chapter. The Department of Revenue shall
provide to the board such information on Oregon personal income
tax returns as the board deems necessary to determine whether the
payments made to the person under this chapter are subject to
Oregon personal income tax under ORS 316.127 (9).
(2) If the board determines that the payments made to a person
under this chapter are not subject to Oregon personal income tax
under ORS 316.127 (9) based on information provided by the
Department of Revenue under this section, and the person is
receiving the increased benefit provided by { + chapter 796,
Oregon Laws 1991, or + } chapter 569, Oregon Laws 1995, the board
shall reduce the benefits payable to the person as provided in
ORS 238.376 (1).
(3) If the board determines that the payments made to a person
under this chapter are subject to Oregon personal income tax
based on information provided by the Department of Revenue under
this section, and the person is not receiving the increased
benefit provided by { + chapter 796, Oregon Laws 1991, or + }
chapter 569, Oregon Laws 1995, the board shall increase the
benefits payable to the person as provided in ORS 238.374 (3) or
238.376 (3).
SECTION 13. 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 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 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 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 the
information regarding Oregon personal income tax returns 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). + }
SECTION 14. 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 15. ORS 314.840, as amended by section 11, chapter 107,
Oregon Laws 2012, is amended to read:
314.840. (1) The Department of Revenue may:
(a) Furnish any taxpayer, representative authorized to
represent the taxpayer under ORS 305.230 or person designated by
the taxpayer under ORS 305.193, upon request of the taxpayer,
representative or designee, with a copy of the taxpayer's income
tax return filed with the department for any year, or with a copy
of any report filed by the taxpayer in connection with the
return, or with any other information the department considers
necessary.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of income or any particulars contained in any
report or return.
(d) Disclose a taxpayer's name, address, telephone number,
refund amount, amount due, Social Security number, employer
identification number or other taxpayer identification number to
the extent necessary in connection with collection activities or
the processing and mailing of correspondence or of forms for any
report, return or claim required in the administration of ORS
310.630 to 310.706, any local tax under ORS 305.620, or any law
imposing a tax upon or measured by net income.
(2) The department also may disclose and give access to
information described in ORS 314.835 to:
(a) The Governor of the State of Oregon or the authorized
representative of the Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by ORS
chapter 316 for those of not more than the three immediately
preceding years for which the individual was required to file an
Oregon individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Oregon personal
income tax laws and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Oregon personal income tax laws. Information
disclosed pursuant to this paragraph shall be used only for the
purpose of making the appointment, reappointment or decision to
employ or not to employ the individual in the office of the
Governor.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board or the Joint Interim
Committee on Ways and Means, or if the Legislative Assembly is in
session, to the Joint Committee on Ways and Means, and to the
Legislative Revenue Officer or Legislative Fiscal Officer under
ORS 291.342, 291.348 and 291.445. The Department of Revenue shall
disclose and give access to the information described in ORS
314.835 for the purposes of this subparagraph only if:
(i) The request for information is made in writing, specifies
the purposes for which the request is made and is signed by an
authorized representative of the Oregon Department of
Administrative Services. The form for request for information
shall be prescribed by the Oregon Department of Administrative
Services and approved by the Director of the Department of
Revenue.
(ii) The officer, employee or person receiving the information
does not remove from the premises of the Department of Revenue
any materials that would reveal the identity of a personal or
corporate taxpayer.
(b) The Commissioner of Internal Revenue or authorized
representative, for tax administration and compliance purposes
only.
(c) For tax administration and compliance purposes, the proper
officer or authorized representative of any of the following
entities that has or is governed by a provision of law that meets
the requirements of any applicable provision of the Internal
Revenue Code as to confidentiality:
(A) A state;
(B) A city, county or other political subdivision of a state;
(C) The District of Columbia; or
(D) An association established exclusively to provide services
to federal, state or local taxing authorities.
(d) The Multistate Tax Commission or its authorized
representatives, for tax administration and compliance purposes
only. The Multistate Tax Commission may make the information
available to the Commissioner of Internal Revenue or the proper
officer or authorized representative of any governmental entity
described in and meeting the qualifications of paragraph (c) of
this subsection.
(e) The Attorney General, assistants and employees in the
Department of Justice, or other legal representative of the State
of Oregon, to the extent the department deems disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 180.010 to 180.240
and the tax laws of this state.
(f) Employees of the State of Oregon, other than of the
Department of Revenue or Department of Justice, to the extent the
department deems disclosure or access necessary for such
employees to perform their duties under contracts or agreements
between the department and any other department, agency or
subdivision of the State of Oregon, in the department's
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the department deems
disclosure or access necessary for the performance of such
others' duties under contracts or agreements between the
department and such legal entities, in the department's
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person.
(i) The Department of Consumer and Business Services, to the
extent the department requires such information to determine
whether it is appropriate to adjust those workers' compensation
benefits the amount of which is based pursuant to ORS chapter 656
on the amount of wages or earned income received by an
individual.
(j) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
as Auditor of Public Accounts under section 2, Article VI of the
Oregon Constitution; the Department of Human Services pursuant to
ORS 314.860 and 412.094; the Division of Child Support of the
Department of Justice and district attorney regarding cases for
which they are providing support enforcement services under ORS
25.080; the State Board of Tax Practitioners, pursuant to ORS
673.710; and the Oregon Board of Accountancy, pursuant to ORS
673.415.
(k) The Director of the Department of Consumer and Business
Services to determine that a person complies with ORS chapter 656
and the Director of the Employment Department to determine that a
person complies with ORS chapter 657, the following employer
information:
(A) Identification numbers.
(B) Names and addresses.
(C) Inception date as employer.
(D) Nature of business.
(E) Entity changes.
(F) Date of last payroll.
(L) The Director of Human Services to determine that a person
has the ability to pay for care that includes services provided
by the Eastern Oregon Training Center or the Department of Human
Services to collect any unpaid cost of care as provided by ORS
chapter 179.
(m) The Director of the Oregon Health Authority to determine
that a person has the ability to pay for care that includes
services provided by the Blue Mountain Recovery Center or the
Oregon State Hospital or the Oregon Health Authority to collect
any unpaid cost of care as provided by ORS chapter 179.
(n) Employees of the Employment Department to the extent the
Department of Revenue deems disclosure or access to information
on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by
ORS chapter 657.
(o) The State Fire Marshal to assist the State Fire Marshal in
carrying out duties, functions and powers under ORS 453.307 to
453.414, the employer or agent name, address, telephone number
and standard industrial classification, if available.
(p) Employees of the Department of State Lands for the purposes
of identifying, locating and publishing lists of taxpayers
entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited
to the taxpayer's name, address and the refund amount.
(q) In addition to the disclosure allowed under ORS 305.225,
state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal
activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(r) The United States Postal Inspection Service or a federal
law enforcement agency, including but not limited to the United
States Department of Justice, to assist in the investigation of
the following criminal activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(s) The United States Financial Management Service, for
purposes of facilitating the offsets described in ORS 305.612.
(t) A municipal corporation of this state for purposes of
assisting the municipal corporation in the administration of a
tax of the municipal corporation that is imposed on or measured
by income, wages or net earnings from self-employment. Any
disclosure under this paragraph may be made only pursuant to a
written agreement between the Department of Revenue and the
municipal corporation that ensures the confidentiality of the
information disclosed.
(u) A consumer reporting agency, to the extent necessary to
carry out the purposes of ORS 314.843.
(v) The Public Employees Retirement Board, to the extent
necessary to carry out the purposes of ORS 238.372 to 238.384,
and to any public employer, to the extent necessary to carry out
the purposes of ORS { + 237.635 (3) and + } 237.637 (2).
(3)(a) Each officer or employee of the department and each
person described or referred to in subsection (2)(a), (e) to (k)
or (n) to (q) of this section to whom disclosure or access to the
tax information is given under subsection (2) of this section or
any other provision of state law, prior to beginning employment
or the performance of duties involving such disclosure or access,
shall be advised in writing of the provisions of ORS 314.835 and
314.991, relating to penalties for the violation of ORS 314.835,
and shall as a condition of employment or performance of duties
execute a certificate for the department, in a form prescribed by
the department, stating in substance that the person has read
these provisions of law, that the person has had them explained
and that the person is aware of the penalties for the violation
of ORS 314.835.
(b) The disclosure authorized in subsection (2)(r) of this
section shall be made only after a written agreement has been
entered into between the Department of Revenue and the person
described in subsection (2)(r) of this section to whom disclosure
or access to the tax information is given, providing that:
(A) Any information described in ORS 314.835 that is received
by the person pursuant to subsection (2)(r) of this section is
confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal
activities described in subsection (2)(r) of this section;
(B) The information shall be protected as confidential under
applicable federal and state laws; and
(C) The United States Postal Inspection Service or the federal
law enforcement agency shall give notice to the Department of
Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to
the disclosure of information.
(4) The Department of Revenue may recover the costs of
furnishing the information described in subsection (2)(k) to (m)
and (o) to (q) of this section from the respective agencies.
{ +
QUALIFYING POSITIONS + }
SECTION 16. ORS 238.005, as amended by section 30, chapter 54,
Oregon Laws 2012, is amended to read:
238.005. For purposes of this chapter:
(1) 'Active member' means a member who is presently employed by
a participating public employer in a qualifying position and who
has completed the six-month period of service required by ORS
238.015.
(2) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
(3) 'Board' means the Public Employees Retirement Board.
(4) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
(5) 'Continuous service' means service not interrupted for more
than five years, except that such continuous service shall be
computed without regard to interruptions in the case of:
(a) An employee who had returned to the service of the employer
as of January 1, 1945, and who remained in that employment until
having established membership in the Public Employees Retirement
System.
(b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership
in the Public Employees Retirement System.
(6) 'Creditable service' means any period of time during which
an active member is being paid a salary by a participating public
employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of
computing years of 'creditable service,' full months and major
fractions of a month shall be considered to be one-twelfth of a
year and shall be added to all full years. ' Creditable service'
includes all retirement credit received by a member.
(7) 'Earliest service retirement age' means the age attained by
a member when the member could first make application for
retirement under the provisions of ORS 238.280.
(8) 'Employee' includes, in addition to employees, public
officers, but does not include:
(a) Persons engaged as independent contractors.
(b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total { - 600 - } { + 1040 + } hours in any calendar year.
(c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
(d) Persons employed and paid from federal funds received under
a federal program intended primarily to alleviate unemployment.
However, any such person shall be considered an ' employee' if
not otherwise excluded by paragraphs (a) to (c) of this
subsection and the public employer elects to have the person so
considered by an irrevocable written notice to the board.
(e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement
plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the
system.
(9) 'Final average salary' means whichever of the following is
greater:
(a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active
member of the system in three of the calendar years of membership
before the effective date of retirement of the employee, in which
three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total
salary may include calendar years in which the employee was
employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of
retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
(b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
(10) 'Firefighter' does not include a volunteer firefighter,
but does include:
(a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
(b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
(11) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
(12) 'Fund' means the Public Employees Retirement Fund.
(13) 'Inactive member' means a member who is not employed in a
qualifying position, whose membership has not been terminated in
the manner described by ORS 238.095 and who is not retired for
service or disability.
(14) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University and a community college, as defined in ORS 341.005.
(15) 'Member' means a person who has established membership in
the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
(16) 'Member account' means the regular account and the
variable account.
(17) 'Normal retirement age' means:
(a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
(b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
(18) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
(19) 'Police officer' includes:
(a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
(b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
(c) Employees of the Oregon Liquor Control Commission who are
classified as liquor enforcement inspectors by the administrator
of the commission.
(d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
(e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
(f) Police officers who are commissioned by a university under
ORS 352.383 and who are classified as police officers by the
university.
(g) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
(h) Police officers appointed under ORS 276.021 or 276.023.
(i) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
(j) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
(k) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
(L) Investigators of the Criminal Justice Division of the
Department of Justice.
(m) Corrections officers as defined in ORS 181.610.
(n) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
(o) The Director of the Department of Corrections.
(p) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
(q) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
(r) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
(s) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
(t) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
(u) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
(20) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
(21) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
(22) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
{ - 600 - } { + 1040 + } or more hours of service in a
calendar year, excluding any service in a job for which a
participating public employer does not provide benefits under
this chapter pursuant to an application made under ORS 238.035.
(23) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
(24) 'Retired member' means a member who is retired for service
or disability.
(25) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
(26)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
(b) 'Salary' includes but is not limited to:
(A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
(B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
(C) Retroactive payments described in ORS 238.008; and
(D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
(c) 'Salary' or 'other advantages' does not include:
(A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
(B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has
no cash option;
(C) Payments made on account of an employee's death;
(D) Any lump sum payment for accumulated unused sick leave;
(E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;
(F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
(G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services
qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
(H) Payments for instructional services rendered to public
universities of the Oregon University System or the Oregon Health
and Science University when such services are in excess of
full-time employment subject to this chapter. A person employed
under a contract for less than 12 months is subject to this
subparagraph only for the months to which the contract pertains;
or
(I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee.
(27) 'School year' means the period beginning July 1 and ending
June 30 next following.
(28) 'System' means the Public Employees Retirement System.
(29) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
(30) 'Vested' means being an active member of the system in
each of five calendar years.
(31) 'Volunteer firefighter' means a firefighter whose position
normally requires less than { - 600 - } { + 1040 + } hours of
service per year.
SECTION 17. ORS 238A.005, as amended by section 1, chapter 31,
Oregon Laws 2012, is amended to read:
238A.005. For the purposes of this chapter:
(1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
(2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
(3) 'Board' means the Public Employees Retirement Board.
(4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
(a) Persons engaged as independent contractors;
(b) Aliens working under a training or educational visa;
(c) Persons, other than workers in the Industries for the Blind
Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
(d) Persons categorized by a participating public employer as
student employees;
(e) Any person who is an inmate of a state institution;
(f) Employees of foreign trade offices of the Oregon Business
Development Department who live and perform services in foreign
countries under the provisions of ORS 285A.075 (1)(g);
(g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
(h) Employees of the Oregon University System who are actively
participating in an optional retirement plan offered under ORS
243.800;
(i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;
(j) Any person who belongs to a class of employees who are not
eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
(k) Any person who is retired under ORS 238A.100 to 238A.245 or
ORS chapter 238 and who continues to receive retirement benefits
while employed; and
(L) Judges.
(5) 'Firefighter' means:
(a) A person employed by a local government, as defined in ORS
174.116, whose primary job duties include the fighting of fires;
(b) The State Fire Marshal, the chief deputy state fire marshal
and deputy state fire marshals; and
(c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
(6) 'Fund' means the Public Employees Retirement Fund.
(7)(a) 'Hour of service' means:
(A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
(B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
(b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
(8) 'Inactive member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
(9) 'Individual account program' means the defined contribution
individual account program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
(10) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University or a community college, as defined in ORS 341.005.
(11) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
(12) 'Participating public employer' means a public employer as
defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
(13) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
(14) 'Police officer' means a police officer as described in
ORS 238.005.
(15) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs { - 600 - } { + 1040 + } or more hours of service in
a calendar year, excluding any service in a job for which
benefits are not provided under the Oregon Public Service
Retirement Plan pursuant to ORS 238A.070 (2).
(16) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
(17)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
(b) 'Salary' includes the following amounts:
(A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
(B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
(C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on December 31, 2011.
(D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on December 31, 2011.
(E) Retroactive payments described in ORS 238.008.
(F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
(G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
(H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
(c) 'Salary' does not include the following amounts:
(A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
(B) Payments made on account of an employee's death.
(C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
(D) Any severance payment, accelerated payment of an employment
contract for a future period or advance against future wages.
(E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
(F) Payment for a leave of absence after the date the employer
and employee have agreed that no future services in a qualifying
position will be performed.
(G) Payments for instructional services rendered to public
universities of the Oregon University System or the Oregon Health
and Science University when those services are in excess of
full-time employment subject to this chapter. A person employed
under a contract for less than 12 months is subject to this
subparagraph only for the months covered by the contract.
(H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
(I) Any amount in excess of $200,000 for a calendar year. If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
(18) 'System' means the Public Employees Retirement System.
SECTION 18. 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 - } { + 1040 + } 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 (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.
(3) If a member of the pension program who is not vested in the
pension program performs fewer than { - 600 - } { + 1040 + }
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.
(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 not been
terminated under the provisions of ORS 238.095 on the date the
person becomes an eligible employee.
SECTION 19. ORS 238A.145 is amended to read:
238A.145. (1) A pension program member who is not vested
forfeits all retirement credit if the member performs fewer than
{ - 600 - } { + 1040 + } hours of service in each of five
consecutive calendar years. A forfeiture under this section takes
effect at the end of the fifth calendar year.
(2) If a pension program member forfeits retirement credit
under this section and is subsequently reemployed by a
participating public employer:
(a) The person may acquire retirement credit under the pension
program only for the purpose of service performed after the
person is reemployed; and
(b) Any service performed before the forfeiture may not be
credited toward the period of service required by ORS 238A.100 or
238A.115, or toward the accrual of retirement credit under ORS
238A.140, 238A.150 or 238A.155.
SECTION 20. 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 - } { + 1040 + } 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 (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.
(5) If a member of the individual account program who is not
vested in the employer account performs fewer than { - 600 - }
{ + 1040 + } 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.
(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 21. ORS 238.015 is amended to read:
238.015. (1) No person may become a member of the system unless
that person is in the service of a public employer and has
completed six months' service uninterrupted by more than 30
consecutive working days during the six months' period. Every
employee of a participating employer shall become a member of the
system at the beginning of the first full pay period of the
employee following the six months' period. Contributions for new
members shall first be made for those wages that are attributable
to services performed by the employee during the first full pay
period following the six months' period, without regard to when
those wages are considered earned for other purposes under this
chapter. All public employers participating in the Public
Employees Retirement System established by chapter 401, Oregon
Laws 1945, as amended, at the time of repeal of that chapter, and
all school districts of the state, shall participate in, and
their employees shall be members of, the system, except as
otherwise specifically provided by law.
(2) Any active member of the Public Employees Retirement System
who, through the annexation of a political subdivision employing
the member or by change of employment, becomes the employee of
another political subdivision which is participating in the
Public Employees Retirement System and has also a separate
retirement system for its employees, shall remain an active
member of the Public Employees Retirement System unless, within
60 days after the effective date of the annexation or change of
employment or April 8, 1953, the member shall by written notice
to the Public Employees Retirement Board and to the
administrative body of the new public employer elect to
relinquish membership in the Public Employees Retirement System
and become a member of the separate retirement system of the
employer, if eligible for membership in that retirement system,
and the member shall be so carried by the new employer.
Immediately upon such annexation of any political subdivision or
such change of employment, the new public employer shall inform
such employee in writing of the right of the employee to exercise
an election as in this section provided.
(3) A political subdivision (other than a school district) not
participating in the retirement system established by chapter
401, Oregon Laws 1945, as amended, which employs one or more
employees, each of whose position requires { - 600 - }
{ + 1040 + } hours of service per year, or an agency created by
two or more political subdivisions to provide themselves
governmental services, which employs one or more employees, each
of whose position requires
{ - 600 - } { + 1040 + } hours of service per year, may,
through its governing body, notify the board in writing, that it
elects to include its employees in the system hereby established.
Such public employer may request the board to make a study and
estimate of the cost of including it and its eligible employees,
other than volunteer firefighters, in the system, which the board
thereupon shall cause to be made and the cost of which the
employer shall bear. Upon completion of the study and estimate
the employer may apply for admission to the system, whereupon it
shall begin to participate therein and its eligible employees
other than volunteer firefighters shall become members of the
system. If the employer is an agency created by two or more
political subdivisions to provide themselves governmental
services and ceases thereafter to transmit to the board
contributions for any of its eligible employees, the benefits
based upon employer contributions to which such employees would
otherwise be entitled shall be reduced accordingly.
(4) No inmate of a state institution or an alien on a training
or educational visa working for any participating employer, even
though the inmate or alien received compensation from a
participating employer, shall be eligible to become a member of
the system. No person employed by a participating employer and
defined by such employer as a student employee is eligible to
become a member of the system for such student employment.
(5) A person holding an elective office or an appointive office
with a fixed term or an office as head of a department to which
the person is appointed by the Governor may become a member of
the system by giving the board written notice of desire to do so
within 30 days after taking the office or, in the event that the
officer is not eligible to become a member of the system at the
time of taking the office, within 30 days after becoming so
eligible. Membership so established shall not be discontinued
during the appointive or elective term of the officer except upon
separation of the officer from service.
(6) A public employer employing volunteer firefighters may
apply to the board at any time for them to become members of the
system. Upon receiving the application the board shall fix a wage
at which, for purposes of this chapter only, they shall be
considered to be employed and which shall be the basis for
computing the amounts of the contributions, if any, which they
pay into, and of the benefits which they and their beneficiaries
receive from, the fund; and if the wage so fixed is satisfactory
to the employer, shall include the firefighters in the system.
(7)(a) In the event that an employee enters the service of a
public employer which is participating in or later begins to
participate in the system and in the event that at the time of
entering that service or at the time that the employer begins to
participate in the system the employee has commenced to purchase
and is continuing to purchase a retirement annuity, if the
employer deems the annuity adequate for the purposes of this
chapter, it may enter into an agreement with the employee and the
board pursuant to which the employee may be exempted from
contributing to the Public Employees Retirement Fund, and, if no
public funds are being used to purchase the annuity or a
corresponding pension, the employer, in lieu of the contributions
which it otherwise would make to the fund on account of the
employee, may make contributions toward the cost of purchasing
the annuity. Such employee otherwise shall be subject to the
provisions of this chapter, except that neither the employee nor
any person claiming under the employee shall receive any payments
from the retirement fund as service or disability allowance.
(b) An employee who enters into an agreement under paragraph
(a) of this subsection may elect at any time thereafter to start
to participate in the system by giving written notice of desire
to participate to the board and to the employer. The employee
shall receive no retirement credit for the period during which
the employee was exempted from contributing to the fund under the
agreement, but the employee shall be considered to have completed
the six months' service required for membership in the system.
When the employee starts to participate in the system the
employer shall start to contribute to the fund on account of the
employee in the same manner as the employer contributes on
account of other employees who are active members of the system
and the employer shall stop making contributions toward the cost
of purchasing the retirement annuity.
(8)(a) All new appointees in the Federal Cooperative Extension
Service or in any other service in which participation in the
Federal Civil Service retirement program is mandatory, who
receive a federal appointment on or after July 1, 1955, may
participate in the Public Employees Retirement System only by
giving written notice of their election to so participate to the
Public Employees Retirement Board within six months after the
effective date of their appointment.
(b) All persons employed by the Federal Cooperative Extension
Service or by any other service in which participation in the
Federal Civil Service retirement program is mandatory, who are
under federal appointment as of July 1, 1955, and who are members
of the state retirement system, shall continue such membership
unless, prior to February 1, 1956, they give written notice to
the Public Employees Retirement Board of their desire to cancel
their membership.
(c) Any person who is an active member of the Public Employees
Retirement System, who, on or after July 1, 1955, is employed by
the Federal Cooperative Extension Service or by any other service
in which participation in the Federal Civil Service retirement
program is mandatory, and who is given a federal appointment,
shall continue such membership in the Public Employees Retirement
System unless, within six months after the effective date of the
appointment, the person gives written notice to the Public
Employees Retirement Board of the desire to cancel membership.
(d) A cancellation of membership under paragraph (b) or (c) of
this subsection terminates membership in the Public Employees
Retirement System and cancels the right to any benefits from, or
claims against, that system. Such cancellation prevents the
withdrawing member from claiming thereafter any retirement credit
for any period of employment before the cancellation. Upon
receipt of a notice of cancellation, the Public Employees
Retirement Board shall refund the member account of the
withdrawing member, regardless of the age of the withdrawing
member.
(9) Employees, including managers, of foreign trade offices of
the Oregon Business Development Department who live and perform
services in foreign countries under the provisions of ORS
285A.075 (1)(g) shall not be members of the system. However, any
person who is an active member of the system immediately before
becoming an employee of a foreign trade office shall continue to
be a member of the system during the period of time the person
serves as an employee of the foreign trade office.
(10) An employee who is participating in an alternative
retirement program established pursuant to ORS 353.250 or an
optional retirement plan established pursuant to ORS 341.551 may
not be an active member of the Public Employees Retirement
System.
SECTION 22. { + ORS 238.074 and 238A.142 are repealed. + }
SECTION 23. { + The amendments to ORS 238.005, 238.015,
238A.005, 238A.115, 238A.145 and 238A.320 by sections 16 to 21 of
this 2013 Act and the repeal of ORS 238.074 and 238A.142 by
section 22 of this 2013 Act apply only to calendar years
beginning on and after the effective date of this 2013 Act. + }
{ +
TRANSFER OF EMPLOYEE CONTRIBUTION + }
SECTION 24. { + Section 25 of this 2013 Act is added to and
made a part of ORS chapter 238A. + }
SECTION 25. { + (1) Contributions to the individual account
program under ORS 238A.330, 238A.335 and 238A.340 by or on behalf
of a member of the Public Employees Retirement System who
established membership in the system before August 29, 2003, are
not required or allowed for salary paid on or after January 1,
2014.
(2) Rollover contributions to the individual account program
pursuant to ORS 238A.360 by or on behalf of a member of the
system who established membership in the system before August 29,
2003, are not allowed on or after January 1, 2014. + }
SECTION 26. { + Section 27 of this 2013 Act is added to and
made a part of ORS chapter 238. + }
SECTION 27. { + Beginning on January 1, 2014, an active member
of the Public Employees Retirement System who established
membership in the system before August 29, 2003, shall contribute
to the regular account of the member as provided in ORS
238.200. + }
SECTION 28. ORS 238.200 is amended to read:
238.200. (1)(a) An active member of the Public Employees
Retirement System shall contribute to the Public Employees
Retirement Fund and there shall be withheld from salary of the
member six percent of that salary as an employee contribution.
(b) Notwithstanding paragraph (a) of this subsection, an
employee who is an active member of the system on August 21,
1981, shall contribute to the fund and there shall be withheld
from salary of the member, as long as the employee continues to
be an active member of the system, four percent of that salary if
the salary for a month is less than $500, or five percent of that
salary if the salary for a month is $500 or more and less than
$1,000. Notwithstanding subsection (2) of this section, for the
purpose of computing the percentage of salary to be withheld
under this paragraph from a member who is an employee of a school
district or of the State Board of Higher Education whose salary
is based on an annual agreement, the agreed annual salary of the
member shall be divided into 12 equal installments, and each
installment shall be considered as earned and paid in separate,
consecutive months, commencing with the first month that payment
is actually made under the terms of the salary agreement.
(2) The contributions of each member as provided in subsection
(1) of this section shall be deducted by the employer from each
payroll and transmitted by the employer to the Public Employees
Retirement Board, which shall cause them to be credited to the
member account of the member. Salary shall be considered earned
in the month in which it is paid. The date inscribed on the
paycheck or warrant shall be considered as the pay date,
regardless of when the salary is actually delivered to the
member.
(3) An active member who is concurrently employed by more than
one participating public employer, and who is a member of or
entitled to membership in the system, shall make contributions to
the fund on the basis of salary paid by each employer.
{ - (4) Notwithstanding subsections (1) to (3) of this
section, a member of the system, or a participating employer
acting on behalf of the member pursuant to ORS 238.205, is not
permitted or required to make employee contributions to the fund
for service performed on or after January 1, 2004. This
subsection does not affect any contribution for the purpose of
unit purchases under ORS 238.440 or amounts paid for acquisition
of creditable service under ORS 238.105 to 238.175. - }
SECTION 29. { + ORS 238A.305 is repealed. + }
SECTION 30. { + Section 25 of this 2013 Act and the repeal of
ORS 238A.305 by section 29 of this 2013 Act do not affect amounts
in an individual account under ORS 238A.350 on December 31, 2013.
The Public Employees Retirement Board shall continue to adjust
accounts created on or before December 31, 2013, as provided in
ORS 238A.350. + }
SECTION 31. { + (1) The amendments to ORS 238.200 by section
28 of this 2013 Act and the repeal of ORS 238A.305 by section 29
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, on and after the operative date
specified in subsection (1) of this section, to exercise all the
duties, powers and functions conferred on the board by the
amendments to ORS 238.200 by section 28 of this 2013 Act and the
repeal of ORS 238A.305 by section 29 of this 2013 Act. + }
{ +
COLLECTIVE BARGAINING + }
SECTION 32. ORS 243.746, as amended by section 1, chapter 878,
Oregon Laws 2009, is amended to read:
243.746. (1) In carrying out the arbitration procedures
authorized in ORS 243.712 (2)(e), 243.726 (3)(c) and 243.742, the
public employer and the exclusive representative may select their
own arbitrator.
(2) Where the parties have not selected their own arbitrator
within five days after notification by the Employment Relations
Board that arbitration is to be initiated, the board shall submit
to the parties a list of seven qualified, disinterested, unbiased
persons. A list of Oregon interest arbitrations and fact-findings
for which each person has issued an award shall be included. Each
party shall alternately strike three names from the list. The
order of striking shall be determined by lot. The remaining
individual shall be designated the 'arbitrator':
(a) When the parties have not designated the arbitrator and
notified the board of their choice within five days after receipt
of the list, the board shall appoint the arbitrator from the
list. However, if one of the parties strikes the names as
prescribed in this subsection and the other party fails to do so,
the board shall appoint the arbitrator only from the names
remaining on the list.
(b) The concerns regarding the bias and qualifications of the
person designated by lot or by appointment may be challenged by a
petition filed directly with the board. A hearing shall be held
by the board within 10 days of filing of the petition and the
board shall issue a final and binding decision regarding the
person's neutrality within 10 days of the hearing.
(3) The arbitrator shall establish dates and places of
hearings. Upon the request of either party or the arbitrator, the
board shall issue subpoenas. Not less than 14 calendar days prior
to the date of the hearing, each party shall submit to the other
party a written last best offer package on all unresolved
mandatory subjects, and neither party may change the last best
offer package unless pursuant to stipulation of the parties or as
otherwise provided in this subsection. The date set for the
hearing may thereafter be changed only for compelling reasons or
by mutual consent of the parties. If either party provides notice
of a change in its position within 24 hours of the 14-day
deadline, the other party will be allowed an additional 24 hours
to modify its position. The arbitrator may administer oaths and
shall afford all parties full opportunity to examine and
cross-examine all witnesses and to present any evidence pertinent
to the dispute.
(4) Where there is no agreement between the parties, or where
there is an agreement but the parties have begun negotiations or
discussions looking to a new agreement or amendment of the
existing agreement, unresolved mandatory subjects submitted to
the arbitrator in the parties' last best offer packages shall be
decided by the arbitrator. Arbitrators shall base their findings
and opinions on these criteria giving first priority to paragraph
(a) of this subsection and secondary priority to paragraphs (b)
to (h) of this subsection as follows:
(a) The interest and welfare of the public.
(b) The reasonable financial ability of the unit of government
to meet the costs of the proposed contract giving due
consideration and weight to the other services, provided by, and
other priorities of, the unit of government as determined by the
governing body. A reasonable operating reserve against future
contingencies, which does not include funds in contemplation of
settlement of the labor dispute, shall not be considered as
available toward a settlement. { + However, if the last best
offer package submitted by the exclusive representative of the
employees of the public employer would result in the inability of
the unit of government to meet the costs of the proposed contract
without raising taxes or fees or reducing services or workforce,
an award based on the last best offer shall be given first
priority under paragraph (a) of this subsection and shall be
deemed not to be in the best interest and welfare of the
public. + }
(c) The ability of the unit of government to attract and retain
qualified personnel at the wage and benefit levels provided.
(d) The overall compensation presently received by the
employees, including direct wage compensation, vacations,
holidays and other paid excused time, pensions, insurance,
benefits, and all other direct or indirect monetary benefits
received.
(e) Comparison of the overall compensation of other employees
performing similar services with the same or other employees in
comparable communities. As used in this paragraph, 'comparable '
is limited to communities of the same or nearest population range
within Oregon. Notwithstanding the provisions of this paragraph,
the following additional definitions of 'comparable' apply in the
situations described as follows:
(A) For any city with a population of more than 325,000, '
comparable' includes comparison to out-of-state cities of the
same or similar size;
(B) For counties with a population of more than 400,000, '
comparable' includes comparison to out-of-state counties of the
same or similar size;
(C) Except as otherwise provided in subparagraph (D) of this
paragraph, for the State of Oregon, 'comparable' includes
comparison to other states; and
(D) For the Department of State Police troopers, ' comparable'
includes the base pay for city police officers employed by the
five most populous cities in this state.
(f) The CPI-All Cities Index, commonly known as the cost of
living.
(g) The stipulations of the parties.
(h) Such other factors, consistent with paragraphs (a) to (g)
of this subsection as are traditionally taken into consideration
in the determination of wages, hours, and other terms and
conditions of employment. However, the arbitrator shall not use
such other factors, if in the judgment of the arbitrator, the
factors in paragraphs (a) to (g) of this subsection provide
sufficient evidence for an award.
(5) Not more than 30 days after the conclusion of the hearings
or such further additional periods to which the parties may
agree, the arbitrator shall select only one of the last best
offer packages submitted by the parties and shall promulgate
written findings along with an opinion and order. The opinion and
order shall be served on the parties and the board. Service may
be personal or by registered or certified mail. The findings,
opinions and order shall be based on the criteria prescribed in
subsection (4) of this section.
(6) The cost of arbitration shall be borne equally by the
parties involved in the dispute.
{ +
JUDICIAL REVIEW + }
SECTION 33. { + (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. + }
{ +
CAPTIONS + }
SECTION 34. { + The unit captions used in this 2013 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 2013 Act. + }
{ +
EMERGENCY CLAUSE + }
SECTION 35. { + 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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