Bill Text: OR SB857 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to public employee retirement; declaring an emergency.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB857 Detail]

Download: Oregon-2013-SB857-Amended.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

SA to SB 857

LC 4050/SB 857-15

                      SENATE AMENDMENTS TO
                         SENATE BILL 857

               By COMMITTEE ON FINANCE AND REVENUE

                             June 29

  On page 1 of the printed bill, line 2, after the semicolon
insert 'creating new provisions; amending ORS 238.360 and
238A.210;'.
  Delete lines 4 through 30 and delete page 2 and insert:

                                '
 { +  COST OF LIVING ADJUSTMENTS + }

  '  { +  SECTION 1. + } ORS 238.360, as amended by sections 1
and 3, chapter 53, Oregon Laws 2013 (Enrolled Senate Bill 822),
is amended to read:
  ' 238.360. (1) On July 1 of each year, the Public Employees
Retirement Board shall increase the yearly allowance that a
member or member's beneficiary receives or is entitled to
receive, as provided in   { - subsections (2) and (3) - }  { +
subsection (2) + } of this section. The increase is first payable
with the allowance that the member or the member's beneficiary
receives or is entitled to receive on August 1.
  ' (2)(a) If the member's or member's beneficiary's yearly
allowance   { - for the previous year totaled $20,000 - }
 { + is $60,000 + } or less, the allowance shall be increased by
 { - two - }   { + 1.25 + } percent.
  '  { - (b) If the member's or member's beneficiary's yearly
allowance for the previous year totaled more than $20,000 but not
more than $40,000, the allowance shall be increased by $400 plus
1.5 percent of the amount of the yearly allowance exceeding
$20,000. - }
  '  { - (c) If the member's or member's beneficiary's yearly
allowance for the previous year totaled more than $40,000 but not
more than $60,000, the allowance shall be increased by $700 plus
one percent of the amount of the yearly allowance exceeding
$40,000. - }
  '  { - (d) - }   { + (b) + } If the member's or member's
beneficiary's yearly allowance   { - for the previous year
totaled - }   { + is  + }more than $60,000, the allowance shall
be increased by   { - $900 plus .25 - }   { + $750 plus 0.15 + }
percent of the amount of the yearly allowance exceeding $60,000.
  '  { - (3) If a member or member's beneficiary has been
receiving an allowance for less than 12 months on July 1 of any
year, the board shall calculate the increase under subsection (2)
of this section on the basis of the yearly allowance the member
or member's beneficiary would have received if the member or
member's beneficiary had received the monthly allowance for 12
months. - }
  '  { - (4) - }   { + (3) + } Any increase in the allowance
shall be paid from contributions of the public employer under ORS
238.225.
  '  { +  (4) As used in this section, 'yearly allowance' means
the monthly allowance that a member or member's beneficiary is
entitled to on July 1 of the year in which the board is
calculating the increase under subsection (1) of this section,
multiplied by 12. + }
  '  { +  SECTION 2. + }  { + The amendments to ORS 238.360 by
section 1 of this 2013 Act apply to all increases to allowances
made under ORS 238.360 on and after July 1, 2014. + }
  '  { +  SECTION 3. + } ORS 238A.210, as amended by sections 5
and 7, chapter 53, Oregon Laws 2013 (Enrolled Senate Bill 822),
is amended to read:
  ' 238A.210. (1) On July 1 of each year, the board shall
increase 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 as provided in
  { - subsections (2) and (3) - }  { +  subsection (2) + } of
this section. The increase shall be made for the payments payable
on August 1 and thereafter.
  ' (2)(a) If a person's yearly pension or benefit   { - for the
previous year totaled $20,000 - }   { + is $60,000 + } or less,
the pension or benefit shall be increased by   { - two - }
 { + 1.25 + } percent.
  '  { - (b) If a person's yearly pension or benefit for the
previous year totaled more than $20,000 but not more than
$40,000, the pension or benefit shall be increased by $400 plus
1.5 percent of the amount of the yearly pension or benefit
exceeding $20,000. - }
  '  { - (c) If a person's yearly pension or benefit for the
previous year totaled more than $40,000 but not more than
$60,000, the pension or benefit shall be increased by $700 plus
one percent of the amount of the yearly pension or benefit
exceeding $40,000. - }
  '  { - (d) - }   { + (b) + } If a person's yearly pension or
benefit   { - for the previous year totaled - }   { + is  + }more
than $60,000, the pension or benefit shall be increased by
 { - $900 plus .25 - }   { + $750 plus 0.15 + } percent of the
amount of the yearly pension or benefit exceeding $60,000.
  '  { - (3) If a person has been receiving a pension or benefit
for less than 12 months on July 1 of any year, the board shall
calculate the increase under subsection (2) of this section on
the basis of the yearly allowance the person would have received
if the person had received the pension or benefit for 12
months. - }
  '  { +  (3) As used in this section, 'yearly pension or benefit
' means the monthly pension or benefit that a person is entitled
to on July 1 of the year in which the board is calculating the
increase under subsection (1) of this section, multiplied by
12. + }
  '  { +  SECTION 4. + }  { + The amendments to ORS 238A.210 by
section 3 of this 2013 Act apply to all increases to pensions or
benefits made under ORS 238A.210 on and after July 1, 2014. + }
  '  { +  SECTION 5. + }  { + (1) The amendments to ORS 238.360
and 238A.210 by sections 1 and 3 of this 2013 Act become
operative on July 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, functions and powers conferred on the board by the
amendments to ORS 238.360 and 238A.210 by sections 1 and 3 of
this 2013 Act. + }
  '  { +  SECTION 6. + }  { + Section 7 of this 2013 Act is added
to and made a part of ORS chapter 238. + }
  '  { +  SECTION 7. + }  { + At least once every five years, the
Public Employees Retirement Board shall analyze the impact of
increases or decreases in the cost of living on the purchasing
power of pensions payable under the Public Employees Retirement
System and report to an appropriate committee or interim
committee of the Legislative Assembly on:
  ' (1) The results of the analysis; and
  ' (2) Recommendations relating to the cost-of-living adjustment
under the system. + }
  '  { +  SECTION 8. + }  { + The Public Employees Retirement
Board shall issue the first report under section 7 of this 2013
Act on or before September 1, 2020. + }

                                '
 { +  ACTUARIAL EQUIVALENCY FACTOR TABLES FOR CERTAIN MEMBERS + }

  '  { +  SECTION 9. + }  { + Sections 10 and 11 of this 2013 Act
are added to and made a part of ORS chapter 238. + }
  '  { +  SECTION 10. + }  { + (1) In computing the service
retirement allowance under ORS 238.300 (1) and (2)(b)(A), the
Public Employees Retirement Board shall use the actuarial
equivalency factor tables adopted under ORS 238.607 for a member
who is an active member on the effective date of this 2013 Act.
  ' (2) In computing the service retirement allowance under ORS
238.300 (1) and (2)(b)(A), the Public Employees Retirement Board
shall use the actuarial equivalency factor tables adopted under
ORS 238.607 for a member who:
  ' (a) On the member's effective date of retirement, had at
least 20 years of membership, as defined in ORS 238.300 (2)(c);
  ' (b) Retires as a police officer or firefighter; and
  ' (c) Performed some period of service in a qualifying position
on or after January 1, 2004, and before the effective date of
this 2013 Act.
  ' (3) In computing the service retirement allowance under ORS
238.300 (1) and (2)(b)(A), the Public Employees Retirement Board
shall use the actuarial equivalency factor tables adopted under
ORS 238.607 for a member who:
  ' (a) On the member's effective date of retirement, had at
least 24 years of membership, as defined in ORS 238.300 (2)(c);
  ' (b) Retires as other than a police officer or firefighter;
and
  ' (c) Performed some period of service in a qualifying position
on or after January 1, 2004, and before the effective date of
this 2013 Act.
  ' (4) In computing the service retirement allowance under ORS
238.300 (1) and (2)(b)(A) for a member who does not meet the
requirements of subsections (1) to (3) of this section, the board
shall use the actuarial equivalency factor tables adopted under
section 11 of this 2013 Act. + }
  '  { +  SECTION 11. + }  { + (1) At the time the Public
Employees Retirement Board adopts actuarial equivalency factor
tables under ORS 238.607, the board shall adopt actuarial
equivalency factor tables for the purpose of computing the
service retirement allowance under ORS 238.300 (1) and (2)(b)(A)
for a member who does not meet the requirements of section 10 (1)
to (3) of this 2013 Act. The tables may be adopted in conjunction
with the system evaluation required by ORS 238.605. Tables
adopted under this section must use the best actuarial
information on mortality available at the time the board adopts
the tables, as provided by the actuary engaged by the board.
  ' (2) The board shall determine the annual interest rate to be
used for tables adopted under this section based on the current
immediate and deferred annuity rates as published from time to
time by the Pension Benefit Guaranty Corporation at 29 C.F.R.
part 4044, Appendix B.
  ' (3) The tables adopted under subsection (2) of this section
shall be used as provided in ORS 238.607 (1)(a) and (c).
  ' (4) The board may not defer or delay implementation of the
actuarial equivalency factor tables adopted under this
section. + }
  '  { +  SECTION 12. + }  { + Notwithstanding section 11 (1) of
this 2013 Act, the Public Employees Retirement Board shall first
adopt actuarial equivalency factor tables under section 11 of
this 2013 Act as soon as possible after the effective date of
this 2013 Act. + }
  '  { +  SECTION 13. + }  { +  The tables adopted under sections
11 and 12 of this 2013 Act apply only to members of the Public
Employees Retirement System whose effective date of retirement is
after September 1, 2013. + }

                                '
 { +  EMPLOYER CONTRIBUTION RATES + }

  '  { +  SECTION 14. + }  { + (1) As soon as possible after the
effective date of this 2013 Act, the Public Employees Retirement
Board shall 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. + }

                                '
 { +  JUDICIAL REVIEW + }

  '  { +  SECTION 15. + }  { + (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, 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, or is invalid for any other
reason.
  ' (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) 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. + }

                                '
 { +  ACT DOES NOT CREATE CONTRACT RIGHTS + }

  '  { +  SECTION 16. + }  { + This 2013 Act does not constitute
a statutory contractual promise. + }

                                '
 { +  SEVERABILITY + }

  '  { +  SECTION 17. + }  { + 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 is held
unconstitutional, all remaining parts shall remain in force. + }

                                '
 { +  CAPTIONS + }

  '  { +  SECTION 18. + }  { + 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 19. + }  { + 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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