Bill Text: OR SB754 | 2013 | Regular Session | Introduced
Bill Title: Relating to public employee retirement; declaring an emergency.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB754 Detail]
Download: Oregon-2013-SB754-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 3026 Senate Bill 754 Sponsored by Senator KNOPP, Representative SPRENGER (at the request of Oregon School Boards Association) 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 employee retirement. Directs Public Employees Retirement Board to recalculate employer contribution rates to reflect savings attributable to Act. Provides for expedited review by Supreme Court upon petition by adversely affected party. Declares emergency, effective on passage. A BILL FOR AN ACT Relating to public employee retirement; creating new provisions; amending ORS 237.635, 237.637, 238.005, 238.285, 238.300, 238.360, 238.372, 238.374, 238.376, 238.378, 238.580, 238A.210, 238A.320, 292.180 and 314.840 and section 4, chapter 1, Oregon Laws 2010; repealing ORS 238.350 and 238.355; and declaring an emergency. Whereas every Oregonian deserves to have a high-quality public education and to live in a safe community and reasonably expects efficient and effective delivery of other needed public services; and Whereas the cost of Oregon's Public Employees Retirement System (PERS) is increasing at an unsustainable rate and diverting billions of dollars away from schools and other critical services; and Whereas Oregon's schools have been forced to reduce instructional days, close schools and cut approximately 7,000 teachers over the last three years despite increased state spending on education; and Whereas PERS is the largest single source of cost escalation driving these cuts; and Whereas the annual cost of PERS is expected to increase significantly over the next decade or more, placing at risk schools, public safety, the poor and seniors who depend on state assistance; and Whereas it is the responsibility of the Legislative Assembly to ensure that PERS is adequately funded, rationally designed as one element of a reasonably competitive compensation arrangement for public employees and sustainable for the sake of public employees, who may rely on PERS for a material part of their retirement, and for Oregonians generally, who rightly expect the state to use taxpayer dollars responsibly; and Whereas in 2011 the Governor proposed and the Legislative Assembly passed comprehensive education reform based on the aspirational goal of enabling 40 percent of adult Oregonians to have at least a bachelor's degree, 40 percent of adult Oregonians to have at least an associate's degree and the remaining 20 percent of adult Oregonians to have at least a high school diploma; and Whereas later that year an increase in PERS costs resulted in massive layoffs of teachers, fewer instructional days for students and the closings of schools; and Whereas the PERS cost increase this year will drain hundreds of millions of dollars more out of schools and cripple Oregon's efforts to achieve its educational goals; and Whereas it is necessary for the Legislative Assembly to reform PERS, so that the state may provide critical services efficiently and effectively and provide a long-term, financially sound retirement system for public employees; and Whereas the savings from the reforms set forth in this 2013 Act could facilitate the hiring or retention of thousands of public employees, including teachers, police officers and firefighters; and Whereas it is the intent of the Legislative Assembly that the savings realized by schools and agencies as a result of this 2013 Act be used, to the maximum extent possible, to provide services that Oregonians need; and Whereas the Legislative Assembly accordingly urges that school districts use funds saved as a result of this 2013 Act to reduce class sizes, restore instructional days and hire 5,000 or more teachers throughout this state; and Whereas the Oregon Business Plan enjoys broad bipartisan support as a strategy for creating jobs and growing wages; and Whereas reform of the Public Employees Retirement System is a top priority in the Oregon Business Plan because it is critical to funding vital public services and especially education; now, therefore, 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. + } { + CALCULATION OF FINAL AVERAGE SALARY + } SECTION 6. { + ORS 238.350 and 238.355 are repealed. + } SECTION 7. 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 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 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 { - . - } { + ; (J) Any lump sum payment for accumulated unused vacation leave or other unused paid leave; or (K) Payments for overtime. + } (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 hours of service per year. SECTION 8. ORS 238.285 is amended to read: 238.285. (1) Not earlier than two years before a member's earliest service retirement age, a member may request a verification of retirement data from the Public Employees Retirement Board. Upon receiving a request under this section, the board shall notify all of the member's participating public employers of the request. In a manner specified by rules of the board, the board shall allow those employers a reasonable time to confirm the records relating to the member that were provided to the board before the request was made. The board shall thereafter provide a verification to the member that includes the following data, as reflected in the records of the Public Employees Retirement System: (a) The service information reported by the member's employers and the number of years and months of creditable service or retirement credit derived from that information, determined as of a date specified in the verification. (b) The salary data reported by the member's employers for each calendar year, and the final average salary for the member derived from that data. (c) If applicable, the member's regular account balance, and any variable account balance, as of the end of a calendar year specified in the verification. { - (d) If applicable, the total amount of unused sick leave accumulated by the member as of a date specified in the verification. - } (2) A member of the system may dispute the accuracy of the data provided in the verification by filing a written notice of dispute with the board not more than 60 days after the date on which the verification is provided to the member. Upon receiving a notice of dispute under this subsection, the board shall determine the accuracy of the disputed data and make a written decision based on its determination. The board shall provide to the member a copy of the decision and a written explanation of any applicable statutes and rules. A member may seek judicial review of the decision as provided in ORS 183.484 and rules of the board. (3) Except as provided in this section, when a member who receives a verification under this section retires for service, the creditable service, retirement credit, final average salary { - , - } { + and + } member account balances { - and accumulated unused sick leave - } used in calculating the member's retirement allowance or pension may not be less than the amounts provided in the verification, subject to adjustments for: (a) Creditable service or retirement credit accrued by the member after the date specified in the verification. (b) Salary attributable to periods of employment after the date specified in the verification. (c) Earnings and losses credited to the member's accounts from the end of the calendar year specified in the verification to the member's effective retirement date, in accordance with rules adopted by the board. { - (d) Sick leave used and accrued after the date specified in the verification. - } (4) The board may use creditable service, retirement credit, final average salary { - , - } { + or + } member account balances { - or accumulated unused sick leave - } in calculating a member's service retirement allowance that is less than the amounts provided in a verification received under this section if the member knew that the amounts were not accurate at the time the verification was provided and the member did not dispute the accuracy of the amounts as provided in subsection (2) of this section. (5) A participating public employer may not modify information provided to the board relating to a member's creditable service, retirement credit, final average salary { - , - } { + or + } employee contributions { - or accumulated unused sick leave - } after the board provides the member with a verification under this section that is based on that information except in response to the board's request for the purpose of a determination under subsection (2) or (4) of this section. (6)(a) Subject to paragraph (b) of this subsection, erroneous payments or overpayments paid to or on account of a member based on a verification provided under this section may not be recovered under ORS 238.715, but may be charged to the reserve account established under ORS 238.670 (1), or charged as an administrative expense under ORS 238.610. (b) The board shall recover erroneous payments or overpayments paid to or on account of a member based on a verification provided under this section if the board determines that the recovery is required to maintain the status of the system and the Public Employees Retirement Fund as a qualified governmental retirement plan and trust under the Internal Revenue Code and under regulations adopted pursuant to the Internal Revenue Code. (7) A member may dispute the accuracy of data in a verification only as provided under this section. A member may not dispute the accuracy of data in a verification in the manner provided by ORS 238.450. (8) A member shall be provided with one verification under this section at no cost. The board may establish procedures for recovering administrative costs from members for services in providing additional verifications. SECTION 9. Section 4, chapter 1, Oregon Laws 2010, is amended to read: { + Sec. 4. + } { - (1) Except as provided in this section, section 3 of this 2009 Act - } { + ORS 238.285 + } becomes operative on July 1, 2011. { - (2) The requirement that the Public Employees Retirement Board provide verification of the amount of a member's accumulated unused sick leave under section 3 (1)(d) of this 2009 Act first applies to requests for verifications of retirement data received by the board on or after July 1, 2012. - } SECTION 10. ORS 238.580 is amended to read: 238.580. (1) ORS 238.005 (4) and (26), 238.025, 238.078, 238.082, 238.092, 238.115 (1), 238.250, 238.255, 238.260, { - 238.350, - } 238.364, 238.410, 238.415, 238.420, 238.445, 238.458, 238.460, 238.465, 238.475, 238.600, 238.605, 238.610, 238.618, 238.630, 238.635, 238.645, 238.650, 238.655, 238.660, 238.665, 238.670 and 238.705 and the increases provided by ORS 238.366 for members of the system who are serving as other than police officers or firefighters apply in respect to service as a judge member. (2) This chapter applies in respect to persons described in ORS 238.505 (1) and in respect to service as a judge member only as specifically provided in ORS 238.500 to 238.585. SECTION 11. ORS 292.180 is amended to read: 292.180. (1) The Oregon Department of Administrative Services may render a monthly or quarterly invoice to all state agencies utilizing or intending to utilize the joint payroll system in the future. This monthly or quarterly invoice shall be equal to demonstrated savings of Workers' Compensation workday tax costs which are a direct result of the savings from payment of the workday tax based on actual days worked by the employee. (2) It is the intention of this section to allow the department to use demonstrated savings of Workers' Compensation workday tax costs to pay for the implementation costs of ORS { - 238.350, - } 240.546, 292.026, 292.033, 292.070 to 292.110, 292.170 and this section and the moneys received are continuously appropriated for the purposes of ORS { - 238.350, - } 240.546, 292.026, 292.033, 292.070 to 292.110, 292.170 and this section. (3) Any excess moneys remaining after the implementation of ORS { - 238.350, - } 240.546, 292.026, 292.033, 292.070 to 292.110, 292.170 and this section shall be returned pro rata on the basis of total moneys to agency contributions to the agencies from which received. However, if the amount remaining is less than $10,000, that amount may be transferred to the General Fund as a miscellaneous receipt. SECTION 12. { + The amendments to ORS 238.005, 238.580 and 292.180 by sections 7, 10 and 11 of this 2013 Act and the repeal of ORS 238.350 and 238.355 by section 6 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. + } { + TAXATION OF OUT-OF-STATE RETIREES + } SECTION 13. 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 14. { + Section 15 of this 2013 Act is added to and made a part of ORS 238.372 to 238.384. + } SECTION 15. { + (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 16. { + Section 15 of this 2013 Act is repealed on December 31, 2014. + } SECTION 17. 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 18. 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 19. 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 20. 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 21. 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 22. 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. { + TRANSFER OF EMPLOYEE CONTRIBUTIONS + } SECTION 23. { + Sections 24, 25 and 26 of this 2013 Act are added to and made a part of ORS chapter 238A. + } SECTION 24. { + (1) A member who established membership in the Public Employees Retirement System before August 29, 2003, as described in ORS 238A.025 (4), ceases to be a member of the individual account program on the effective date of this 2013 Act. (2) A member who established membership in the Public Employees Retirement System before August 29, 2003, as described in ORS 238A.025 (4), and who is a member of the individual account program on the effective date of this 2013 Act, continues to be a member for the purpose of amounts in the employee account established for the member under ORS 238A.350 (2), and the Public Employees Retirement Board shall continue to make adjustments to the account in the manner prescribed by ORS 238A.350 (1) on and after the effective date of this 2013 Act, but no further employee contributions may be deposited in the account on or after the effective date of this 2013 Act by reason of service by the member. (3) Employee contributions under ORS 238A.330 made on or after the effective date of this 2013 Act by or on behalf of a member who established membership in the Public Employees Retirement System before August 29, 2003, as described in ORS 238A.025 (4), may not be deposited by the Public Employees Retirement Board in the employee account established for the member under ORS 238A.350 (2), but shall instead be deposited in the account established for the member under section 25 of this 2013 Act. + } SECTION 25. { + (1) The Public Employees Retirement Board shall establish an account for each active member of the Public Employees Retirement System who established membership in the system before August 29, 2003, as described in ORS 238A.025 (4). Each account shall be adjusted at least annually in accordance with rules adopted by the board to reflect any net earnings or losses on those contributions. The adjustments described in this subsection shall continue until the account is withdrawn or applied against the costs of the pension or other retirement benefits payable to the member. (2) Unless the amounts in an account created under this section are withdrawn under section 26 of this 2013 Act, the amounts in the account shall be applied by the board to pay the costs of the pension or other retirement benefits payable to or on behalf of the member. + } SECTION 26. { + (1) An inactive member may elect to receive a distribution of the amounts in the member's account established under section 25 of this 2013 Act if the inactive member has separated from all service with participating public employers and with employers who are treated as part of a participating public employer's controlled group under the federal laws and rules governing the status of the Public Employees Retirement System and the Public Employees Retirement Fund as a qualified governmental retirement plan and trust. (2) A member who is vested in the pension program established under this chapter and who is eligible to withdraw from the pension program under ORS 238A.120 may make an election under this section only if the member also withdraws from the pension program. + } SECTION 27. 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 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 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. { + (7) A member becomes vested in the account established for the member under section 25 of this 2013 Act on the date the account is established under section 25 of this 2013 Act. + } { + ASSUMED INTEREST RATE FOR + } { + CALCULATION OF MONEY MATCH + } SECTION 28. ORS 238.300 is amended to read: 238.300. Upon retiring from service at normal retirement age or thereafter, a member of the system shall receive a service retirement allowance which shall consist of the following annuity and pensions: (1) A refund annuity which shall be the actuarial equivalent of accumulated contributions, if any, by the member and interest thereon credited at the time of retirement, which annuity shall provide an allowance payable during the life of the member and at death a lump sum equal in amount to the difference between accumulated contributions at the time of retirement and the sum of the annuity payments actually made to the member during life shall be paid to such person, if any, as the member nominates by written designation duly acknowledged and filed with the { + Public Employees Retirement + } Board or shall otherwise be paid according to the provisions of this chapter for disposal of an amount credited to the member account of a member at the time of death in the event the member designates no beneficiary to receive the amount or no such beneficiary is able to receive the amount. If death of the member occurs before the first payment is due, the member account of the member shall be treated as though death had occurred before retirement. (2)(a) A life pension (nonrefund) for current service provided by the contributions of employers, which pension, subject to paragraph (b) of this subsection, shall be an amount which, when added to the sum of the annuity, if any, under subsection (1) of this section and the annuity, if any, provided on the same basis and payable from the Variable Annuity Account, both annuities considered on a refund basis, results in a total of: (A) For service as a police officer or firefighter, two percent of final average salary multiplied by the number of years of membership in the system as a police officer or firefighter before the effective date of retirement. (B) For service as other than a police officer or firefighter, including service as a member of the Legislative Assembly, 1.67 percent of final average salary multiplied by the number of years of membership in the system as other than a police officer or firefighter before the effective date of retirement. (b) A pension under this subsection shall be at least: (A) For a member who first establishes membership in the system before July 1, 2003, the actuarial equivalent of the annuity provided by the accumulated contributions of the member. { + For purposes of calculating an annuity under this subparagraph, the board shall use an assumed interest rate of four percent. + } A person establishes membership in the system before July 1, 2003, for the purposes of this subparagraph if: (i) The person is a member of the system, or a judge member of the system, on the day immediately before July 1, 2003; or (ii) The person performed any period of service for a participating public employer before July 1, 2003, that is credited to the six-month period of employment required of an employee under ORS 238.015 before an employee may become a member of the system. (B) For a member who made contributions before August 21, 1981, the equivalent of a pension computed pursuant to this subsection as it existed immediately before that date. (c) As used in this subsection, 'number of years of membership' means the number of full years of creditable service plus any remaining fraction of a year of creditable service. Except as otherwise provided in this paragraph, in determining a remaining fraction a full month shall be considered as one-twelfth of a year and a major fraction of a month shall be considered as a full month. Membership of a school district employee, an employee of an institution of higher education engaged in teaching or other school activity or an employee of the Department of Human Services, the Oregon Youth Authority, the Department of Corrections or the State Board of Education engaged in teaching or other school activity at an institution supervised by the authority, board or department, for all portions of a school year in a calendar year in which the district school, institution of higher education or school activity at an institution so supervised in which the member is employed is normally in session shall be considered as a full one-half year of membership. The number of years of membership of a member who received a refund of contributions as provided in ORS 237.976 (2) is limited to the number of years after the day before the date on which the refund was received. The number of years of membership of a member who is separated, for any reason other than death or disability, from all service entitling the member to membership in the system, who withdraws the amount credited to the member account of the member in the fund during absence from such service and who thereafter reenters the service of an employer participating in the system but does not repay the amount so withdrawn as provided in this chapter, is limited to the number of years after the day before the date of so reentering. (3) An additional life pension (nonrefund) for prior service credit, including military service, credited to the member at the time of first becoming a member of the system, as elsewhere provided in this chapter, which pension shall be provided by the contributions of the employer. { + EMPLOYER CONTRIBUTION RATES + } SECTION 29. { + (1) As soon as practicable after the effective date of this 2013 Act, the Public Employees Retirement Board shall: (a) Determine the savings in employer contributions that are attributable to the provisions of this 2013 Act; and (b) Recalculate the contribution rates of all employers, pursuant to ORS 238.225, to reflect the provisions of this 2013 Act. (2) The board shall issue corrected contribution rate orders to employers affected by recalculated rates under this section within 90 days after the effective date of this 2013 Act. The corrected rates are effective July 1, 2013. + } { + EXPEDITED REVIEW BY SUPREME COURT + } SECTION 30. { + (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 adversely affected by this 2013 Act 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 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)(a) The Supreme Court shall allow members of the Legislative Assembly to intervene in any proceeding relating to this 2013 Act. After a member intervenes in a proceeding relating to this 2013 Act, the member has standing to participate in the proceeding even if the member ceases to be a member of the Legislative Assembly. (b) A member of the Senate or House of Representatives who intervenes in a proceeding under this subsection may not use public funds to pay legal expenses incurred in intervening or participating in the proceeding. (7) 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. (8) The court may not award attorney fees to a petitioner in a proceeding under this section. + } { + SEVERABILITY + } SECTION 31. { + It is the intent of the Legislative Assembly that all parts of this 2013 Act are independent and that if any part of this 2013 Act be held unconstitutional, all remaining parts shall remain in force. + } { + CAPTIONS + } SECTION 32. { + 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 33. { + 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. + } ----------