HomeMy WebLinkAboutResolution - PERS Senate Bills_ REVIE~~_ .17.~(~
L GAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution expressing support for Senate Bill *
754, modifying provisions related to public * RESOLUTION NO. 2013-029
employee retirement. *
WHEREAS, Deschutes County is a public employer within the State of Oregon, and, as such, is a
covered employer for the purposes of participating in the Public Employees Retirement System (PERS); and
WHEREAS, Deschutes County will face a significant cost increase beginning July 1, 2013, related to
PERS; and
WHEREAS, without action by the 77 th Session ofthe Oregon Legislative Assembly to enact meaningful
modifications to PERS, these cost increases will result in budgetary reductions to County programs and services;
and
WHEREAS, Senate Bill 754 has been introduced for consideration before the 77th Session of the
Oregon Legislative Assembly; and
WHEREAS, Senate Bill 754 will modify PERS to reduce costs to all PERS-covered public employers
and will provide public employees and retirees with an adequate and stable retirement benefit; and now,
therefore,
BE IT RESOLVED, that the Deschutes County Board of Commissioners or Deschutes County, Oregon
strongly encourages the members of the 77 th Session of the Oregon Legislative Assembly to enact the provisions
of Senate Bill 754.
Dated this of , 20_ BOARD OF COUNTY COMMISSIONERS ------------~
OFDESCHUTESCOUNTY,OREGON
ALAN UNGER, Chair
TAMMY BANEY, Vice Chair
ATTEST:
Recording Secretary ANTHONY DEB ONE, Commissioner
PAGE 1 OF l-RESOLUTIONNO. 2013-029
March 27, 2013
Representative Jason Conger
J900 Court Street NE, H-477
Salem, OR 97301
Dear Representative Conger:
Board of Cou Commissioners
P.O. Box 6005 • Bend, OR 97708-6005
1300 NW Wall St, Suite 206 • Bend, OR 97701-1960
[541] 388-6570· Fax (541] 385-3202
www.co.deschutes.or.us
board@co.deschutes.or.us
Tammy Baney
Anthony DeBone
Alan Unger
The Deschutes County Board of Commissioners wishes to communicate its strong support for
SB 754, which provides comprehensive reform of the Oregon Public Employees Retirement
System (PERS).
Along with other public employers within the state of Oregon, Deschutes County is continually
challenged by the rising cost of maintaining PERS in its current state. After years of rate
increases, the County will soon be faced, once again, with the necessity of allocating more
resources to PERS and fewer to the budgets which support critical programs and services that
our citizens rely on every day for their health, safety, welfare, and quality oflife. We believe
that SB 754 represents a fair and methodical approach to balancing these needs with the
obligation to provide a stable retirement benefit to our valued public employees.
While the Deschutes County Board of Commissioners welcomes any effort that will help curtail
the unsustainable expense ofPERS, the broad range of provisions within SB 754 and the
projected budgetary savings will do more to solve the problem than other more limited,
proposals. For this reason, we are joining the Oregon School Boards Association, the Ore~on
Business Association, Associated Oregon Industries, and other groups in calling on the 7i
Session of the Oregon Legislative Assembly to enact SB 754.
Sincerely,
Deschutes County Board of Commissioners
Alan Unger, Chair
Tammy Baney, Vice Chair
Anthony DeBone, Commissioner
Enhancing the Lives of Citizens by Delivering Quality Services in a Cost-Effective Manner
77th OREGON LEGISLATIVE ASSEMBLY··2013 Regular Session
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.
1 A BILL FOR AN ACT
2 Relating to public employee retirement; creating new provisions; amending ORS 237.635, 237.637,
3 238.005, 238.285, 238.300, 238.360, 238.372, 238.374, 238.376, 238.378, 238.580, 238A210, 238A320,
4 292.180 and 314.840 and section 4, chapter 1, Oregon Laws 2010; repealing ORS 238.350 and
5 238.355; and declaring an emergency.
6 Whereas every Oregonian deserves to have a high-quality public education and to live in a safe
7 community and reasonably expects efficient and effective delivery of other needed public services;
8 and
9 Whereas the cost of Oregon's Public Employees Retirement System (PERS) is increasing at an
10 unsustainable rate and diverting billions of dollars away from schools and other critical services;
11 and
12 Whereas Oregon's schools have been forced to reduce instructional days, close schools and cut
13 approximately 7,000 teachers over the last three years despite increased state spending on educa
14 tion; and
15 Whereas PERS is the largest single source of cost escalation driving these cuts; and
16 Whereas the annual cost of PERS is expected to increase significantly over the next decade or
17 more, placing at risk schools, public safety, the poor and seniors who depend on state assistance;
18 and
19 Whereas it is the responsibility of the Legislative Assembly to ensure that PERS is adequately
20 funded, rationally designed as one element of a reasonably competitive compensation arrangement
21 for public employees and sustainable for the sake of public employees, who may rely on PERS for
22 a material part of their retirement, and for Oregonians generally, who rightly expect the state to
23 use taxpayer dollars responsibly; and
24 Whereas in 2011 the Governor proposed and the Legislative Assembly passed comprehensive
25 education reform based on the aspirational goal of enabling 40 percent of adult Oregonians to have
26 at least a bachelor's degree, 40 percent of adult Oregonians to have at least an associate's degree
27 and the remaining 20 percent of adult Oregonians to have at least a high school diploma; and
28 Whereas later that year an increase in PERS costs resulted in massive layoffs of teachers, fewer
29 instructional days for students and the closings of schools; and
30 Whereas the PERS cost increase this year will drain hundreds of millions of dollars more out
NOTE: Matter in boIdI.aced type in an amended section is new; matter [italic and bracketed} is existing law to be omitted.
New sections are in boldfaced type.
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SB 754
1 of schools and cripple Oregon's efforts to achieve its educational goals; and
2 Whereas it is necessary for the Legislative Assembly to reform PERS, so that the state may
3 provide critical services efficiently and effectively and provide a long-term, financially sound re
4 tirement system for public employees; and
Whereas the savings from the reforms set forth in this 2013 Act could facilitate the hiring or
6 retention of thousands of public employees, including teachers, police officers and firefighters; and
7 Whereas it is the intent of the Legislative Assembly that the savings realized by schools and
8 agencies as a result of this 2013 Act be used, to the maximum extent possible, to provide services
9 that Oregonians need; and
Whereas the Legislative Assembly accordingly urges that school districts use funds saved as a
11 result of this 2013 Act to reduce class sizes, restore instructional days and hire 5,000 or more
12 teachers throughout this state; and
13 Whereas the Oregon Business Plan enjoys broad bipartisan support as a strategy for creating
14 jobs and growing wages; and
Whereas reform of the Public Employees Retirement System is a top priority in the Oregon
16 Business Plan because it is critical to funding vital public services and especially education; now,
17 therefore,
18 Be It Enacted by the People of the State of Oregon:
19
LIMITATION ON COST OF LIVING ADJUSTMENT
21
22 SECTION 1. ORS 238.360 is amended to read:
23 238.360. (1) As soon as practicable after January 1 each year, the Public Employees Retirement
24 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
26 Bureau of Labor Statistics of the U.S. Department of Labor for the Portland, Oregon, area. Prior to
'%l July 1 each year, the board shall acijust the allowance which the member or the member's benefi
28 ciary is receiving or is entitled to receive on August 1 for the month of July [shall be multiplied]
29 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
31 the next 12 months beginning July 1 adjusted to the resultant amount] by the board and adding the
32 resultant amount to the allowance.
33 (2) The allowance shall be adjusted under subsection (1) of this section for the next 12
34 months beginning July 1.
[(2)] (3) [Such] An increase or decrease [shall] under subsection (1) of this section may not
36 exceed two percent of any monthly retirement allowance in any year and [no] an allowance [shall]
37 may not be adjusted to an amount less than the amount to which the recipient would be entitled
38 if no cost-of-living adjustment were authorized.
39 [(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
41 to year and included in the computation of increases or decreases in succeeding years.
42 [(4)] (5) Any increase in the allowance shall be paid from contributions of the public employer
43 under ORS 238.225. Any decrease in the allowance shall be returned to the employer in the form
44 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
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SB 754
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.21O 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 de
termined under subsection (5) of this section, whichever is less, by the percentage figure de
termined 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 c08t-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. ORB 238.300 and 238.355 are repealed.
SECTION 7. ORS 238.005, as amended by section 30, chapter 54, Oregon Laws 2012, is amended
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to read:
238.005. For purposes of this chapter:
(1) "Active member" means a member who is presently employed by a participating public em
ployer 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 De
cember 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 I, 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 Retire
ment 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 em
pI oyer 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, pro
vided 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 em
ployees, 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
46 before the effective date of retirement of the employee, in which three years the employee was paid
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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 cal
endar 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 ef
fective date of retirement of the employee.
(0) "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 fol
lowing.
(2) "Fund" means the Public Employees Retirement Fund.
(3) "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.
(4) "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.
(5) "Member" means a person who has established membership in the system and whose mem
bership has not been terminated as described in ORS 238.095. "Member" includes active, inactive
and retired members.
(6) "Member account" means the regular account and the variable account.
(7) "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 de
scribed 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.
(8) "Pension" means annual payments for life derived from contributions by one or more public
employers.
(9) "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 enforce
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SB 754
ment 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.
(0 Police officers who are commissioned by a university under ORS 352.383 and who are clas
sified as police officers by the university.
(g) Parole and probation officers employed by the Department of Corrections, parole and pro
bation 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 offi
cers as police officers for the purposes of this chapter, and the employees so classified are repres
ented 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 Com
missioners of the Port of Portland.
(j) Employees of the State Department of Agriculture who are classified as livestock police of
ficers 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.
(0) The Director of the Department of Corrections.
(p) An employee who for seven consecutive years has been classified as a police officer as de
fined 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 sys
tem 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 de
scription involves the custody, control, treatment, investigation or supervision of juveniles placed
in such facilities.
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(u) Employees of the Oregon Youth Authority who are classified as juvenile parole and pro
bation 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 gov
ernmental 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 em
ployers 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 un
der 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];
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SB 754
(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 Re
tirement 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 ex
planation 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, r~tirement credit, final average salaryL] and
member account balances [and accumulated unused sick leave] used in calculating the member's re
tirement allowance or pension may not be less than the amounts provided in the verification, subject
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1 to adjustments for:
2 (a) Creditable service or retirement credit accrued by the member after the date specified in the
3 verification.
4 (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
6 specified in the verification to the member's effective retirement date, in accordance with rules
7 adopted by the board.
8 [(d) Sick leave used and accrued after the date specified in the verification.]
9 (4) The board may use creditable service, retirement credit, final average salaryL] or member
account balances [or accumulated unused sick leave] in calculating a member's service retirement
11 allowance that is less than the amounts provided in a verification received under this section if the
12 member knew that the amounts were not accurate at the time the verification was provided and the
13 member did not dispute the accuracy of the amounts as provided in subsection (2) of this section.
14 (5) A participating public employer may not modify information provided to the board relating
to a member's creditable service, retirement credit, final average salaryL] or employee contributions
16 [or accumulated unused sick leave] after the board provides the member with a verification under this
17 section that is based on that information except in response to the board's request for the purpose
18 of a determination under subsection (2) or (4) of this section.
19 (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
21 under ORS 238.715, but may be charged to the reserve account established under ORS 238.670 (1),
22 or charged as an administrative expense under ORS 238.610.
23 (b) The board shall recover erroneous payments or overpayments paid to or on account of a
24 member based on a verification provided under this section if the board determines that the recov
ery is required to maintain the status of the system and the Public Employees Retirement Fund as
26 a qualified governmental retirement plan and trust under the Internal Revenue Code and under
Z1 regulations adopted pursuant to the Internal Revenue Code.
28 (7) A member may dispute the accuracy of data in a verification only as provided under this
29 section. A member may not dispute the accuracy of data in a verification in the manner provided
by ORS 238.450.
31 (8) A member shall be provided with one verification under this section at no cost. The board
32 may establish procedures for recovering administrative costs from members for services in providing
33 additional verifications.
34 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
36 operative on July 1, 2011.
37 ((2) The requirement that the Public Employees Retirement Board provide verification of the
38 amount of a member's accumulated unused sick leave under section 3 (1){d) of this 2009 Act first ap
39 plies 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:
41 238.580. (1) ORS 238.005 (4) and (26), 238.025, 238.078, 238.082, 238.092, 238.115 (1), 238.250,
42 238.255, 238.260, (238.350,] 238.364, 238.410, 238.415, 238.420, 238.445, 238.458, 238.460, 238.465,
43 238.475, 238.600, 238.605, 238.610, 238.618, 238.630, 238.635, 238.645, 238.650, 238.655, 238.660, 238.665,
44 238.670 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.
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1 (2) This chapter applies in respect to persons described in ORS 238.505 (1) and in respect to
2 service as a judge member only as specifically provided in ORS 238.500 to 238.585.
3 SECTION 11. ORS 292.180 is amended to read:
4 292.180. (1) The Oregon Department of Administrative Services may render a monthly or quar
terly invoice to all state agencies utilizing or intending to utilize the joint payroll system in the
6 future. This monthly or quarterly invoice shall be equal to demonstrated savings of Workers' Com
7 pensation workday tax costs which are a direct result of the savings from payment of the workday
8 tax based on actual days worked by the employee.
9 (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,]
11 240.546, 292.026, 292.033, 292.070 to 292.110, 292.170 and this section and the moneys received are
12 continuously appropriated for the purposes of ORS [238.350,] 240.546, 292.026, 292.033, 292.070 to
13 292.110, 292.170 and this section.
14 (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
16 moneys to agency contributions to the agencies from which received. However, if the amount re
17 maining is less than $10,000, that amount may be transferred to the General Fund as a miscellaneous
18 receipt.
19 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
21 apply only to members of the Public Employees Retirement System who retire on or after
22 the effective date of this 2013 Act.
23
24 TAXATION OF OUT·OF·STATE RETIREES
26 SECTION 13. ORS 238.372 is amended to read:
Z7 238.372. (1) Except as provided in ORS 238.372 to 238.384, the Public Employees Retirement
28 Board may not pay the increased [benefitJ benefits provided by chapter 796, Oregon Laws 1991,
29 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
31 under ORS 316.127 (9).
32 [(2) The provisions of ORS 238.372 to 238.384 do not apply to:]
33 [(a) A retired member of the system who is receiving payments under this chapter and whose ef
34 fective date of retirement is before January 1, 2012;J
[(b) A person who is receiving payments under this chapter by reason of the retirement of a member
36 whose effective date of retirement is before January 1, 2012; and]
37 [(c) Any other person who receives payments under this chapter that began before January 1,
38 2012.]
39 [(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.
41 [(4)] (3) A person receiving payments under this chapter that are not increased under chapter
42 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995, by reason of ORS 238.372 to 238.384
43 has no right or claim to the increased benefit provided by chapter 796, Oregon Laws 1991, or
44 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
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1 238.384.
2 SECTION 15. (1) On or before October 31, 2013, each person receiving payments under
3 this chapter shall provide the Public Employees Retirement Board with a written statement
4 that indicates whether the payments received by the person are subject to Oregon personal
income tax.
6 (2) If a person receiving payments under this chapter does not notify the board on or
7 before October 31, 2013, that the payments are subject to Oregon personal income tax, the
8 board shall reduce any benefits payable to the person by the amount by which the benefits
9 were increased under chapter 796, Oregon Laws 1991, and chapter 569, Oregon Laws 1995.
The reduction in benefits becomes effective on January I, 2014.
11 SECTION 16. Section 15 of this 2013 Act is repealed on December 31, 2014.
12 SECTION 17. ORB 238.374 is amended to read:
13 238.374. (1) A person applying for payments under this chapter shall give a written statement
14 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 re
16 quired by this subsection, or the statement indicates that the payments will not be subject to Oregon
17 personal income tax under ORS 316.127 (9), the board may not pay the person the increased
18 [benefit] benefits provided by chapter 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995.
19 (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
21 of subsection (1) of this section, and thereafter the payments become subject to Oregon personal
22 income tax, the person shall promptly notify the Public Employees Retirement Board by written
23 statement that the payments are subject to Oregon personal income tax.
24 (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
26 of subsection (1) of this section, and the board receives notice under subsection (2) of this section
'1:i that payments to the person under this chapter are subject to Oregon personal income tax, or de
28 termines under ORS 238.378 that payments to the person under this chapter are subject to Oregon
29 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
31 becomes effective on the first day of the calendar year following receipt of notice by the board.
32 SECTION 18. ORB 238.376 is amended to read:
33 238.376. (1) If a person is receiving payments under this chapter, and after the payments com
34 mence 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
36 payments are no longer subject to Oregon personal income tax. The board shall reduce any benefits
:rl payable to the person by the amount by which the benefits were increased under chapter 796,
36 Oregon Laws 1991, and chapter 569, Oregon Laws 1995. The reduction in benefits becomes effective
39 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 pro·
41 visions of subsection (1) of this section] because the payments are not subject to Oregon personal
42 income tax, and thereafter the payments become subject to Oregon personal income tax, the person
43 shall promptly notify the board by written statement that the payments are once again subject to
44 Oregon personal income tax.
(3) If a person is receiving payments under this chapter that have been reduced [under the pro
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visions 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 pro
vided by chapter 796, Oregon Laws 1991. or chapter 569, Oregon Laws 1995, the board shall re
duce 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 pro
visions 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 de
scribed in ORS 238.372 to 238.384 for the purpose of implementing this subsection. The De
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1 partment of Revenue shall provide to a public employer that is subject to the requirements
2 of this section the information regard.:ing Oregon personal income tax returns that the public
3 employer deems necessary to determine whether the retirement benefits paid to the person
4 by the public employer are subject to Oregon personal income tax under ORS 316.127 (9).
5 SECTION 21. ORS 237.637 is amended to read:
6 237.637. (1) Any public employer that provides retirement benefits to its police officers and
7 firefighters other than by participation in the Public Employees Retirement System pursuant to the
8 provisions of ORS 237.620 shall provide increases to the police officers and firefighters of the public
9 employer, both active and retired, that are equal to the increases in retirement benefits that are
10 provided for in chapter 569, Oregon Laws 1995, for active and retired police officers or firefighters
11 who are members of the Public Employees Retirement System, or the public employer shall provide
12 to those police officers and firefighters increases in retirement benefits that are the actuarial
13 equivalent of the increases in retirement benefits that are provided for in chapter 569, Oregon Laws
14 1995, for police officers or firefighters who are members of the Public Employees Retirement System.
15 Increases provided under this section shall be reduced by the amount of any benefit increase pro
16 vided by ORS 237.635 in the same manner that increases in retirement benefits that are provided for
17 in chapter 569, Oregon Laws 1995, for active and retired police officers or firefighters who are
18 members of the Public Employees Retirement System are reduced to reflect amounts paid to those
19 members under the provisions of chapter 796, Oregon Laws 1991. No other retirement benefit or
20 other benefit provided by those public employers shall be decreased by the employer by reason of
21 the increases mandated by this section.
22 (2) A public employer that is subject to the requirements of this section shall cease paying in
23 creased retirement benefits under this section if the payments made to the person are not subject
24 to Oregon personal income tax under ORS 316.127 (9). A public employer that is subject to the re
25 quirements of this section shall adopt procedures similar to those described in ORS 238.372 to
26 238.384 for the purpose of implementing this subsection. The Department of Revenue shall provide
27 to a public employer that is subject to the requirements of this section [such] the information re
28 garding Oregon personal income tax returns [as] that the public employer deems necessary to de
29 termine whether the retirement benefits paid to the person by the public employer are subject to
30 Oregon personal income tax under ORS 316.127 (9).
31 [(3) The provisions of subsection (2) of this section do not apply to:]
32 [(a) A retired police officer or firefighter who is receiving payments under the public employer's
33 plan and whose effective date of retirement is before January 1, 2012;]
34 [(b) A person who is receiving payments under the public employer's plan by reason of the retire
35 ment of a police officer or firefighter whose effective date of retirement is before January 1, 2012;
36 and]
37 [(c) Any other person who receives payments under the public employer's plan that began before
38 January 1, 2012.]
39 SECTION 22. ORS 314.840, as amended by section 11, chapter 107, Oregon Laws 2012, is
4{) amended to read:
41 314.840. (1) The Department of Revenue may:
42 (a) Furnish any taxpayer, representative authorized to represent the taxpayer under ORS 305.230
43 or person designated by the taxpayer under ORS 305.193, upon request of the taxpayer, represen
44 tative or designee, with a copy of the taxpayer's income tax return filed with the department for
45 any year, or with a copy of any report filed by the taxpayer in connection with the return, or with
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1 any other information the department considers necessary.
2 (b) Publish lists of taxpayers who are entitled to unclaimed tax refunds.
3 (c) Publish statistics so classified as to prevent the identification of income or any particulars
4 contained in any report or return.
(d) Disclose a taxpayer's name, address, telephone number, refund amount, amount due, Social
6 Security number, employer identification number or other taxpayer identification number to the ex
7 tent necessary in connection with collection activities or the processing and mailing of correspond
8 ence or of forms for any report, return or claim required in the administration of ORB 310.630 to
9 310.706, any local tax under ORB 305.620, or any law imposing a tax upon or measured by net in
come.
11 (2) The department also may disclose and give access to information described in ORS 314.835
12 to:
13 (a) The Governor of the State of Oregon or the authorized representative of the Governor:
14 (A) With respect to an individual who is designated as being under consideration for appoint
ment or reappointment to an office or for employment in the office of the Governor. The information
16 disclosed shall be confined to whether the individual:
17 (i) Has filed returns with respect to the taxes imposed by ORS chapter 316 for those of not more
18 than the three immediately preceding years for which the individual was required to file an Oregon
19 individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of mailing of a deficiency notice or
21 otherwise respond to a deficiency notice within 30 days of its mailing.
22 (iii) Has been assessed any penalty under the Oregon personal income tax laws and the nature
23 of the penalty.
24 (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
26 of making the appointment, reappointment or decision to employ or not to employ the individual in
'Z7 the office of the Governor.
28 (B) For use by an officer or employee of the Oregon Department of Administrative Services duly
29 authorized or employed to prepare revenue estimates, or a person contracting with the Oregon De
partment of Administrative Services to prepare revenue estimates, in the preparation of revenue
31 estimates required for the Governor's budget under ORS 291.201 to 291.226, or required for sub
32 mission to the Emergency Board or the Joint Interim Committee on Ways and Means, or if the
33 Legislative Assembly is in session, to the Joint Committee on Ways and Means, and to the Legisla
34 tive Revenue Officer or Legislative Fiscal Officer under ORB 291.342, 291.348 and 291.445. The De
partment of Revenue shall disclose and give access to the information described in ORS 314.835 for
36 the purposes of this subparagraph only if:
37 (i) The request for information is made in writing, specifies the purposes for which the request
38 is made and is signed by an authorized representative of the Oregon Department of Administrative
39 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.
41 (ii) The officer, employee or person receiving the information does not remove from the premises
42 of the Department of Revenue any materials that would reveal the identity of a personal or corpo
43 rate taxpayer.
44 (b) The Commissioner of Internal Revenue or authorized representative, for tax administration
and compliance purposes only.
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(C) For tax administration and compliance purposes, the proper officer or authorized represen
tative 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 de
partment, 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.
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1 (C) Inception date as employer.
2 (D) Nature of business.
3 (E) Entity changes.
4 (F) Date of last payroll.
(L) The Director of Human Services to determine that a person has the ability to pay for care
6 that includes services provided by the Eastern Oregon Training Center or the Department of Human
7 Services to collect any unpaid cost of care as provided by ORS chapter 179.
8 (m) The Director of the Oregon Health Authority to determine that a person has the ability to
9 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
11 ORS chapter 179.
12 (n) Employees of the Employment Department to the extent the Department of Revenue deems
13 disclosure or access to information on a combined tax report filed under ORS 316.168 is necessary
14 to performance of their duties in administering the tax imposed by ORS chapter 657.
(0) The State Fire Marshal to assist the State Fire Marshal in carrying out duties, functions and
16 powers under ORS 453.307 to 453.414, the employer or agent name, address, telephone number and
17 standard industrial classification, if available.
18 (p) Employees of the Department of State Lands for the purposes of identifying, locating and
19 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
21 refund amount.
22 (q) In addition to the disclosure allowed under ORS 305.225, state or local law enforcement
23 agencies to assist in the investigation or prosecution of the following criminal activities:
24 (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
26 amount of the check and the date printed on the check.
'n (B) The counterfeiting, forging or altering of a check submitted by a taxpayer to the Department
28 of Revenue or issued by the Department of Revenue to a taxpayer, in which case the information
29 that may be disclosed shall be limited to the counterfeit, forged or altered document, the name, ad
dress and taxpayer identification number of the payee, the amount of the check, the date printed
31 on the check and the altered name and address.
32 (r) The United States Postal Inspection Service or a federal law enforcement agency, including
33 but not limited to the United States Department of Justice, to assist in the investigation of the fol
34 lowing criminal activities:
(A) Mail theft of a check, in which case the information that may be disclosed shall be limited
36 to the stolen document, the name, address and taxpayer identification number of the payee, the
37 amount of the check and the date printed on the check.
38 (B) The counterfeiting, forging or altering of a check submitted by a taxpayer to the Department
39 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, ad
41 dress and taxpayer identification number of the payee, the amount of the check, the date printed
42 on the check and the altered name and address.
43 (s) The United States Financial Management Service, for purposes of facilitating the offsets de
44 scribed in ORS 305.612.
(t) A municipal corporation of this state for purposes of assisting the municipal corporation in
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1 the administration of a tax of the municipal corporation that is imposed on or measured by income,
2 wages or net earnings from self-employment. Any disclosure under this paragraph may be made only
3 pursuant to a written agreement between the Department of Revenue and the municipal corporation
4 that ensures the confidentiality of the information disclosed.
(u) A consumer reporting agency, to the extent necessary to carry out the purposes of ORS
6 314.843.
7 (v) The Public Employees Retirement Board, to the extent necessary to carry out the purposes
8 of ORS 238.372 to 238.384, and to any public employer, to the extent necessary to carry out the
9 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
11 subsection (2)(a), (e) to (k) or (n) to (q) of this section to whom disclosure or access to the tax in
12 formation is given under subsection (2) of this section or any other provision of state law, prior to
13 beginning employment or the performance of duties involving such disclosure or access, shall be
14 advised in writing of the provisions of ORS 314.835 and 314.991, relating to penalties for the vio
lation of ORS 314.835, and shall as a condition of employment or performance of duties execute a
16 certificate for the department, in a form prescribed by the department, stating in substance that the
17 person has read these provisions of law, that the person has had them explained and that the person
18 is aware of the penalties for the violation of ORS 314.835.
19 (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 de
21 scribed in subsection (2)(r) of this section to whom disclosure or access to the tax information is
22 given, providing that:
23 (A) Any information described in ORS 314.835 that is received by the person pursuant to sub
24 section (2)(r) of this section is confidential information that may not be disclosed, except to the ex
tent necessary to investigate or prosecute the criminal activities described in subsection (2)(r) of
26 this section;
Z1 (B) The information shall be protected as confidential under applicable federal and state laws;
28 and
29 (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 In
31 formation Act, 5 U.S.C. 552, or other federal law relating to the disclosure of information.
32 (4) The Department of Revenue may recover the costs of furnishing the information described
33 in subsection (2)(k) to (m) and (0) to (q) of this section from the respective agencies.
34
TRANSFER OF EMPLOYEE CONTRIBUTIONS
36
37 SECTION 23. Sections 24, 25 and 26 of this 2013 Act are added to and made a part of ORS
36 chapter 238A.
39 SECTION 24. (1) A member who established membership in the Public Employees Re·
tirement System before August 29. 2003. as described in ORS 238A.025 (4), ceases to be a
41 member of the individual account program on the effective date of this 2013 Act.
42 (2) A member who establisbed membership in the Public Employees Retirement System
43 before August 29. 2003, as described in ORS 238A.025 (4). and who is a member of the indio
44 vidual account program on the effective date of this 2013 Act. continues to be a member for
the purpose of amounts in tbe employee account established for the member under ORS
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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 Em
ployees 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 es
tablished 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 member
ship 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 sub
section 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 ac
count established for the member under ORS 238A.350 (2) on the date the employee account is es
tablished.
(2) A member who makes rollover contributions becomes vested in the rollover account estab
lished 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 contri
butions for a member under ORS 238A.340 the member becomes vested in the employer account es
tablished 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 cal
endar 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 ef
fective, but only to the extent the account is then funded.
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1 (d) The date on which an active member becomes disabled, as described in ORB 238A.155 (5).
2 (e) The date on which an active member dies.
3 (4) If on the date that a person becomes an active member the person has already reached the
4 normal retirement age for the person under ORB 238A160, and the employer makes employer con
tributions for the member under ORS 238A340, the person is vested in the employer account es
6 tablished under ORB 238A350 (3) on that date.
7 (5) If a member of the individual account program who is not vested in the employer account
8 performs fewer than 600 hours of service in each of five consecutive calendar years, hours of service
9 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
11 section.
12 (6) Solely for purposes of determining whether a member is vested under subsection (3)(a) of this
13 section, hours of service include creditable service, as defined in ORB 238.005, performed by the
14 person before the person became an eligible employee, as long as the membership of the person
under ORB chapter 238 has not been terminated under the provisions of ORB 238.095 on the date
16 the person becomes an eligible employee.
17 (7) A member becomes vested in the account established for the member under section
18 25 of this 2013 Act on the date the account is established under section 25 of this 2013 Act.
19
ASSUMED INTEREST RATE FOR
21 CALCULATION OF MONEY MATCH
22
23 SECTION 28. ORB 238.300 is amended to read:
24 238.300. 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
26 pensions:
Z7 (1) A refund annuity which shall be the actuarial equivalent of accumulated contributions, if
28 any, by the member and interest thereon credited at the time of retirement, which annuity shall
29 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
31 of the annuity payments actually made to the member during life shall be paid to such person, if any,
32 as the member nominates by written designation duly acknowledged and filed with the Public Em
33 ployees Retirement Board or shall otherwise be paid according to the provisions of this chapter
34 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
36 receive the amount. If death of the member occurs before the first payment is due, the member ac
37 count of the member shall be treated as though death had occurred before retirement.
38 (2)(a) A life pension (nonrefund) for current service provided by the contributions of employers,
39 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, pro
41 vided on the same basis and payable from the Variable Annuity Account, both annuities considered
42 on a refund basis, results in a total of:
43 (A) For service as a police officer or firefighter, two percent of final average salary multiplied
44 by the number of years of membership in the system as a police officer or firefighter before the ef
fective date of retirement.
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1 (BJ For service as other than a police officer or firefighter, including service as a member of the
2 Legislative Assembly, 1.67 percent of final average salary multiplied by the number of years of
3 membership in the system as other than a police officer or firefighter before the effective date of
4 retirement.
(b) A pension under this subsection shall be at least:
6 (Al For a member who first establishes membership in the system before July 1, 2003, the
7 actuarial equivalent of the annuity provided by the accumulated contributions of the member. For
8 purposes of calculating an annuity under this subparagraph, the board shall use an assumed
9 interest rate of four percent. A person establishes membership in the system before July 1, 2003,
for the purposes of this subparagraph if:
11 (i) The person is a member of the system, or a judge member of the system, on the day imme
12 diately before July I, 2003; or
13 (ii) The person performed any period of service for a participating public employer before July
14 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.
16 (B) For a member who made contributions before August 21, 1981, the equivalent of a pension
17 computed pursuant to this subsection as it existed immediately before that date.
18 (c) As used in this subsection, "number of years of membership" means the number of full years
19 of creditable service plus any remaining fraction of a year of creditable service. Except as other
wise provided in this paragraph, in determining a remaining fraction a full month shall be consid
21 ered as one-twelfth of a year and a major fraction of a month shall be considered as a full month.
22 Membership of a school district employee, an employee of an institution of higher education engaged
23 in teaching or other school activity or an employee of the Department of Human Services, the
24 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 depart
26 ment, for all portions of a school year in a calendar year in which the district school, institution
Z7 of higher education or school activity at an institution so supervised in which the member is em
28 ployed is normally in session shall be considered as a full one-half year of membership. The number
29 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
31 received. The number of years of membership of a member who is separated, for any reason other
32 than death or disability, from all service entitling the member to membership in the system, who
33 withdraws the amount credited to the member account of the member in the fund during absence
34 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
36 of years after the day before the date of so reentering.
37 (3) An additional life pension (nonrefund) for prior service credit, including military service,
38 credited to the member at the time of first becoming a member of the system, as elsewhere provided
39 in this chapter, which pension shall be provided by the contributions of the employer.
41 EMPLOYER CONTRmUTION RATES
42
43 SECTION 29. (1) As soon as practicable after the effective date of this 2013 Act, the
44 Public Employees Retirement Board shall:
(a) Determine the savings in employer contributions that are attributable to the pro
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SB 754
1 visions of this 2013 Act; and
2 (b) Recalculate the contribution rates of all employers, pursuant to ORS 238.225, to reo
3 flect the provisions of this 2013 Act.
4 (2) The board shall issue corrected contribution rate orders to employers affected by reo
5 calculated rates under this section within 90 days after the effective date of this 2013 Act.
6 The corrected rates are effective July 1, 2013.
7
8 EXPEDITED REVIEW BY SUPREME COURT
9
10 SECTION 30. (1) Jurisdiction is conferred on the Supreme Court to determine in the
11 manner provided by this section whether this 2013 Act breaches any contract between
12 members of the Public Employees Retirement System and their employers or violates any
13 constitutional provision, including but not limited to impairment of contract rights of memo
14 bers of the Public Employees Retirement System under Article I, section 21, of the Oregon
15 Constitution, or Article I, section 10, clause 1, of the United States Constitution.
16 (2) A person who is adversely affected by this 2013 Act or who will be adversely affected
17 by this 2013 Act may institute a proceeding for review by filing with the Supreme Court a
18 petition that meets the following requirements:
19 (a) The petition must be filed within 60 days after the effective date of this 2013 Act.
:!) (b) The petition must include the following:
21 (A) A statement of the basis of the challenge; and
22 (B) A statement and supporting affidavit showing how the petitioner is adversely at
23 fected.
24 (3) The petitioner shall serve a copy of the petition by registered or certified mail upon
25 the Public Employees Retirement Board, the Attorney General and the Governor.
26 (4) Proceedings for review under this section shall be given priority over all other mat·
Z7 ters before the Supreme Court.
28 (5) The Supreme Court shall allow public employers participating in the Public Employees
29 Retirement System to intervene in any proceeding under this section.
30 (6)(a) The Supreme Court shall allow members of the Legislative Assembly to intervene
31 in any proceeding relating to this 2013 Act. After a member intervenes in a proceeding re
32 lating to this 2013 Act, the member has standing to participate in the proceeding even if the
33 member ceases to be a member of the Legislative Assembly.
34 (b) A member of the Senate or House of Representatives who intervenes in a proceeding
35 under this subsection may not use public funds to pay legal expenses incurred in intervening
36 or participating in the proceeding.
37 (7) In the event the Supreme Court determines that there are factual issues in the peti.
38 tion, the Supreme Court may appoint a special master to hear evidence and to prepare re
39 commended findings of fact.
40 (8) The court may not award attorney fees to a petitioner in a proceeding under this
41 section.
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43 SEVERABILITY
44
45 SECTION 31. It is the intent of the Legislative Assembly that all parts of this 2013 Act
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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 conven
ience 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.
[22]
77th OREGON LEGISLATIVE ASSEMBLY··2013 Regular Session
Senate Bill 822
Sponsored by Senator DEVLIN, Representative BUCKLEY
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 cost-of-living adjustment under Public Employees Retirement System.
Prohibits Public Employees Retirement Board from payin~ increased retirement benefits result
ing from state income taxation of payments made by board If person receiving payments does not
pay Oregon income tax on benefits. Removes limitations on prohibition relating to date of retire
ment. Imposes similar prohibition for certain public employers that provide retirement benefits for
police officers and firefighters other than by participation in Public Employees Retirement System.
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.
1 A BILL FOR AN ACT
2 Relating to public employee retirement; creating new provisions; amending ORS 237.635, 237.637,
3 238.360, 238.372, 238.374, 238.376, 238.378, 238.575, 238A210 and 314.840; and declaring an
4 emergency.
5 Be It Enacted by the People of the State of Oregon:
6
7 COST-OF-LMNG ADJUSTMENT
8
9 SECTION 1. ORS 238.360 is amended to read:
10 238.360. (1) As soon as practicable after January 1 each year, the Public Employees Retirement
11 Board shall determine the percentage increase or decrease in the cost-of-living for the previous
12 calendar year, based on the Consumer Price Index (Portland area-all items) as published by the
13 Bureau of Labor Statistics of the U.S. Department of Labor for the Portland, Oregon, area. Prior to
14 July 1 each year the allowance which the member or the member's beneficiary is receiving or is
15 entitled to receive on August 1 for the month of July shall be multiplied by the percentage figure
16 determined, and the allowance for the next 12 months beginning July 1 adjusted to the resultant
17 amount.
18 (2) Such increase or decrease shall not exceed [two] 1.0 percent of any monthly retirement aI
19 lowance in any year and no allowance shall be adjusted to an amount less than the amount to which
2D the recipient would be entitled if no cost-of-living adjustment were authorized.
21 (3) The amount of any cost-of-living increase or decrease in any year in excess of the maximum
22 annual retirement allowance adjustment of [two] 1.0 percent shall be accumulated from year to year
23 and included in the computation of increases or decreases in succeeding years.
24 (4) Any increase in the allowance shall be paid from contributions of the public employer under
25 ORS 238.225. Any decrease in the allowance shall be returned to the employer in the form of a
26 credit against contributions of the employer under ORS 238.225.
'Zl SECTION 2. The amendments to ORS 238.360 by section 1 of this 2013 Act apply to all
NOTE: Matter in boldfaced type in an amended section is new; matter [italic and bracketed) is existing law to be omitted.
New sections are in boldfaced type.
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adjustments to allowances made under ORS 238.360 on and after July I, 2013, and before July
1,2014.
SECTION 3. ORS 238.360, as amended by section 1 of this 2013 Act, is amended to read:
238.360. [(1) As soon as practicable after January 1 each year, the Public Employees Retirement
Board shall determine the percentage increase or decrease in the cost-of-living for the previous calendar
year, based on the Consumer Price Index (Portland area-all items) as published by the Bureau of Labor
Statistics of the U.S. Department of Labor for the Portland, Oregon, area. Prior to July 1 each year
the allowance which the member or the member's beneficiary is receiving or is entitled to receive on
August 1 for the month of July shall be multiplied by the percentage figure determined, and the ai
lowance for the next 12 months beginning July 1 adjusted to the resultant amount.] 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) 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) Such increase or decrease shall not exceed 1.5 percent of any monthly retirement allowance in
any year and no allowance shall be adjusted to an amount less than the amount to which the recipient
would be entitled if no cost-of-living adjustment were authorized.]
[(3) The amount of any cost-of-living increase or decrease in any year in excess of the maximum
annual retirement allowance adjustment of 1.5 percent shall be accumulated from year to year and in-
eluded in the computation of increases or decreases in succeeding years.]
(2)(a) If the member's or member's beneficiary's yearly allowance for the previous year
totaled $20,000 or less, the allowance shall be increased by two 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) If the member's or member's beneficiary's yearly allowance for the previous year
totaled more than $60,000, the allowance shall be increased by $900 plus .25 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 al
lowance for 12 months.
(4) Any increase in the allowance shall be paid from contributions of the public employer under
ORS 238.225. [Any decrease in the allowance shall be returned to the employer in the form of a credit
against contributions of the employer under DRS 238.225.]
SECTION 4. The amendments to ORS 238.360 by section 3 of this 2013 Act apply to all
increases to allowances made under ORS 238.360 on and after July 1, 2014.
SECTION 5. 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
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1 for All Items, as published by the Bureau of Labor Statistics of the United States Department of
2 Labor. Before July 1 each year, the board shall adjust every pension payable under ORS 238A.180,
3 238A.185 and 238A.190, every disability benefit under ORS 238A.235 and every death benefit payable
4 under ORS 238A.230 by multiplying the monthly payment by the percentage figure determined by the
5 board. If a person has been receiving a pension or benefit for less than 12 months on July 1 of a
6 calendar year, the board shall make a pro rata reduction of the adjustment based on the number
7 of months that the pension or benefit was received before July 1 of the year. The adjustment shall
8 be made for the payments payable on August 1 and thereafter.
9 (2) An increase or decrease in the benefit payments under this section may not exceed [two] 1.5
10 percent in any year. A pension or death benefit may not be adjusted to an amount that is less than
11 the amount that would have been payable if no cost-of-living adjustment had been made since the
l2 pension or death benefit first became payable.
13 SECTION 6. The amendments to ORB 238A.210 by section 5 of this 2013 Act apply to all
14 acljustments to pensions or benefits made under ORB 238A.210 on and after July I, 2013, and
15 before July I, 2014.
16 SECTION 7. ORS 238A.210, as amended by section 4 of this 2013 Act, is amended to read:
17 238A.21O. [(1) As soon as practicable after January 1 each year, the Public Employees Retirement
18 Board shall determine the percentage increase or decrease in the cost of living for the previous calendar
19 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
21 July 1 each year, the board shall adjust every pension payable under ORS 238A.180, 238A.185 and
22 238A.190, every disability benefit under ORS 238A.235 and every death benefit payable under ORS
23 238A.230 by multiplying the monthly payment by the percentage figure determined by the board. If a
24 person has been receiving a pension or benefit for less than 12 months on July 1 of a calendar year,
25 the board shall make a pro rata reduction of the adjustment based on the number of months that the
26 pension or benefit was received before July 1 of the year. The adjustment shall be made for the pay
27 ments payable on August 1 and thereafter.]
28 [(2) An increase or decrease in the benefit payments under this section may not exceed 1.5 percent
29 in any year. A pension or death benefit may not be adjusted to an amount that is less than the amount
30 that would have been payable if no cost-of-living adjustment had been made since the pension or death
31 benefit first became payable.]
32 (1) On July 1 of each year, the board shall increase every pension payable under ORB
33 238A.1SO, 238A.185 and 238A.l90, every disability benefit under ORB 238A.235 and every death
34 benefit payable under ORB 238A.230 as provided in subsections (2) and (3) of this section. The
35 increase shall be made for the payments payable on August 1 and thereafter.
36 (2)(a) If a person's yearly pension or benefit for the previous year totaled $20,000 or less,
37 the pension or benefit shall be increased by two percent.
38 (b) If a person's yearly pension or benefit for the previous year totaled more than $20,000
39 but not more than $40,000, the pension or benefit shall be increased by $400 plus 1.5 percent
40 of the amount of the yearly pension or benefit exceeding $20,000.
41 (c) If a person's yearly pension or benefit for the previous year totaled more than $40,000
42 but not more than $60,000, the pension or benefit shall be increased by $700 plus one percent
43 of the amount of the yearly pension or benefit exceeding $40,000.
44 (d) If a person's yearly pension or benefit for the previous year totaled more than $60,000,
45 the pension or benefit shall be increased by $900 plus .25 percent of the amount of the yearly
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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.
SECTION 8. The amendments to ORS 238A.210 by section 7 of this 2013 Act apply to all
increases to pensions or benefits made under ORS 238A.210 on and after July 1,2014.
SECTION 9. (1) The amendments to ORS 238.360 and 238A.210 by sections 3 and 7 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 pow
ers conferred on the board by the amendments to ORS 238.360 and 238A.210 by sections 3 and
7 of this 2013 Act.
SECTION 10. ORS 238.575 is amended to read:
238.575. (1) Every monthly retirement allowance or pension payable to a judge member or sur
viving spouse of a judge member under ORS 238.500 to 238.585 shall be adjusted annually [to reflect
the percentage increase or decrease in the cost of livingJ as provided in ORS 238.360.
(2) ORS 238.368 applies to judge members, and for that purpose the monthly retirement allow
ance referred to in ORS 238.368 shall be the monthly retirement allowance payable to a judge
member or the monthly pension payable to the surviving spouse of a judge member under ORS
238.565 (3)(a).
TAXATION OF OUT-OF-STATE RETIREES
SECTION 11. 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 [benefitJ 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:1
[(a) A retired member of the system who is receiving payments under this chapter and whose ef·
fective date of retirement is before January 1, 2012;1
[(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)J (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 12. ORS 238.374 is amended to read:
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1 238.374. (1) A person applying for payments under this chapter shall give a written statement
2 to the Public Employees Retirement Board that indicates whether the payments will be subject to
3 Oregon personal income tax under ORS 316.127 (9). If the person fails to provide the statement re
4 quired by this subsection, or the statement indicates that the payments will not be subject to Oregon
5 personal income tax under ORS 316.127 (9), the board may not pay the person the increased
6 [benefit] benefits provided by chapter 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995.
7 (2) If a person is receiving payments under this chapter that have not been increased under
8 chapter 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995, by reason of the provisions
9 of subsection (1) of this section, and thereafter the payments become subject to Oregon personal
lO income tax under OKS 316.127 (9), the person shall promptly notify the Public Employees Retire
11 ment Board by written statement that the payments are subject to Oregon personal income tax
12 under OKS 316.127 (9).
13 (3) If a person is receiving payments under this chapter that have not been increased under
14 chapter 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995, by reason of the provisions
15 of subsection (1) of this section, and the board receives notice under subsection (2) of this section
16 that payments to the person under this chapter are subject to Oregon personal income tax under
17 OKS 316.127 (9), or determines under ORS 238.378 that payments to the person under this chapter
18 are subject to Oregon personal income tax under OKS 316.127 (9), the board shall initiate payment
19 of the increased [benefit] benefits provided by chapter 796, Oregon Laws 1991, or chapter 569,
20 Oregon Laws 1995. The increase in benefits becomes effective on the first day of the calendar year
21 following receipt of notice by the board.
22 SECTION 13. ORS 238.376 is amended to read:
23 238.376. (1) If a person is receiving payments under this chapter, and after the payments com
24 mence the payments cease to be subject to Oregon personal income tax under ORS 316.127 (9), the
25 person shall promptly notify the Public Employees Retirement Board by written statement that the
26 payments are no longer subject to Oregon personal income tax under OKS 316.127 (9). The board
'J:1 shall reduce any benefits payable to the person by the amount by which the benefits were increased
28 under chapter 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995. The reduction in bene
29 fits becomes effective on the first day of the calendar year following receipt of notice by the board.
30 (2) If a person is receiving payments under this chapter that have been reduced [under the pro
31 visions of subsection (1) of this section] because the payments are not subject to Oregon personal
32 income tax under OKS 316.127 (9), and thereafter the payments become subject to Oregon personal
33 income tax under OKS 316.127 (9), the person shall promptly notify the board by written statement
34 that the payments are once again subject to Oregon personal income tax under OKS 316.129 (9).
35 (3) If a person is receiving payments under this chapter that have been reduced [under the pro
36 visions of subsection (1) of this section] because the payments are not subject to Oregon personal
37 income tax under OKS 316.127 (9), and the board receives notice under subsection (2) of this sec
38 tion that payments to the person under this chapter are once again subject to Oregon personal in
39 come tax under OKS 316.127 (9), or determines under ORS 238.378 that payments to the person
40 under this chapter are once again subject to Oregon personal income tax under OKS 316.127 (9),
41 the board shall resume payment of the increased [benefit] benefits provided by chapter 796, Oregon
42 Laws 1991, or chapter 569, Oregon Laws 1995. The increase in benefits becomes effective on the
43 first day of the calendar year following receipt of notice by the board.
44 SECTION 14. ORS 238.378 is amended to read:
45 238.378. (1) Not less than once each calendar year, the Public Employees Retirement Board shall
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1 provide to the Department of Revenue information identifying persons to whom payments have been
2 made under this chapter. The Department of Revenue shall provide to the board such information
3 on Oregon personal income tax returns as the board deems necessary to determine whether the
4 payments made to the person under this chapter are subject to Oregon personal income tax under
ORS 316.127 (9).
6 (2) If the board determines that the payments made to a person under this chapter are not
7 subject to Oregon personal income tax under ORS 316.127 (9) based on information provided by the
8 Department of Revenue under this section, and the person is receiving the increased benefit pro
9 vided by chapter 796, Oregon Laws 1991, or chapter 569, Oregon Laws 1995, the board shall re
duce the benefits payable to the person as provided in ORS 238.376 (1).
11 (3) If the board determines that the payments made to a person under this chapter are subject
12 to Oregon personal income tax under ORS 316.127 (9) based on information provided by the De
13 partment of Revenue under this section, and the person is not receiving the increased benefit pro
14 vided 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).
16 SECTION 15. ORS 237.635 is amended to read:
17 237.635. (1) Any public employer that provides retirement benefits to its police officers and
18 firefighters other than by participation in the Public Employees Retirement System pursuant to the
19 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
21 provided for in this 1991 Act for active and retired police officers or firefighters who are members
22 of the Public Employees Retirement System, or shall provide to those police officers and firefighters
23 increases in retirement benefits that are the actuarial equivalent of the increases in retirement
24 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
26 by those public employers shall be decreased by the employer by reason of the increases mandated
27 by this section.
2B (2) The increased benefits provided for in this section apply only to police officers or firefighters
29 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 pro
31 visions of ORS 237.620.
32 (3) A public employer that is subject to the requirements of this section shall cease
33 paying increased retirement benefits under this section if the payments made to the person
34 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 de
36 scribed in ORS 238.372 to 238.384 for the purpose of implementing this subsection. The De
37 partment of Revenue shall provide to a public employer that is subject to the requirements
38 of this section the information regarding Oregon personal income tax returns that the public
39 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).
41 SECTION 16. ORS 237.637 is amended to read:
42 237.637. (1) Any public employer that provides retirement benefits to its police officers and
43 firefighters other than by participation in the Public Employees Retirement System pursuant to the
44 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
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1 provided for in chapter 569, Oregon Laws 1995, for active and retired police officers or firefighters
2 who are members of the Public Employees Retirement System, or the public employer shall provide
3 to those police officers and firefighters increases in retirement benefits that are the actuarial
4 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.
6 Increases provided under this section shall be reduced by the amount of any benefit increase pro
7 vided by ORS 237.635 in the same manner that increases in retirement benefits that are provided for
8 in chapter 569, Oregon Laws 1995, for active and retired police officers or firefighters who are
9 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
11 other benefit provided by those public employers shall be decreased by the employer by reason of
l2 the increases mandated by this section.
13 (2) A public employer that is subject to the requirements of this section shall cease paying in
14 creased 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 re
16 quirements of this section shall adopt procedures similar to those described in ORS 238.372 to
17 238.384 for the purpose of implementing this subsection. The Department of Revenue shall provide
18 to a public employer that is subject to the requirements of this section [suchJ the information re
19 garding Oregon personal income tax returns [as) that the public employer deems necessary to de
termine whether the retirement benefits paid to the person by the public employer are subject to
21 Oregon personal income tax under ORS 316.127 (9).
22 [(3) The provisions of subsection (2) of this section do not apply to:J
23 [(a) A retired police officer or firefighter who is receiving payments under the public employer's
24 plan and whose effective date of retirement is before January 1, 2012;J
[(b) A person who is receiving payments under the public employer's plan by reason of the retire
26 ment of a police officer or firefighter whose effective date of retirement is before January 1, 2012;
27 and]
28 {(c) Any other person who receives payments under the public employer's plan that began before
29 January 1, 2012.]
SECTION 17. ORS 314.840, as amended by section 11, chapter 107, Oregon Laws 2012, is
31 amended to read:
32 314.840. (1) The Department of Revenue may:
33 (a) Furnish any taxpayer, representative authorized to represent the taxpayer under ORS 305.230
34 or person designated by the taxpayer under ORS 305.193, upon request of the taxpayer, represen
tative or designee, with a copy of the taxpayer's income tax return filed with the department for
36 any year, or with a copy of any report filed by the taxpayer in connection with the return, or with
37 any other information the department considers necessary.
38 (b) Publish lists of taxpayers who are entitled to unclaimed tax refunds.
39 (c) Publish statistics so classified as to prevent the identification of income or any particulars
contained in any report or return.
41 (d) Disclose a taxpayer's name, address, telephone number, refund amount, amount due, Social
42 Security number, employer identification number or other taxpayer identification number to the ex
43 tent necessary in connection with collection activities or the processing and mailing of correspond
44 ence 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 in
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1 come.
2 (2) The department also may disclose and give access to information described in ORS 314.835
3 to:
4 (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 appoint
6 ment or reappointment to an office or for employment in the office of the Governor. The information
7 disclosed shall be confined to whether the individual:
8 (D Has filed returns with respect to the taxes imposed by ORS chapter 316 for those of not more
9 than the three immediately preceding years for which the individual was required to file an Oregon
individual income tax return.
11 (ii) Has failed to pay any tax within 30 days from the date of mailing of a deficiency notice or
12 otherwise respond to a deficiency notice within 30 days of its mailing.
13 (iii) Has been assessed any penalty under the Oregon personal income tax laws and the nature
14 of the penalty.
(iv) Has been or is under investigation for possible criminal offenses under the Oregon personal
16 income tax laws. Information disclosed pursuant to this paragraph shall be used only for the purpose
17 of making the appointment, reappointment or decision to employ or not to employ the individual in
18 the office of the Governor.
19 (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 De
21 parlment of Administrative Services to prepare revenue estimates, in the preparation of revenue
22 estimates required for the Governor's budget under ORS 291.201 to 291.226, or required for sub
23 mission to the Emergency Board or the Joint Interim Committee on Ways and Means, or if the
24 Legislative Assembly is in session, to the Joint Committee on Ways and Means, and to the Legisla
tive Revenue Officer or Legislative Fiscal Officer under ORS 291.342, 291.348 and 291.445. The De
26 partment of Revenue shall disclose and give access to the information described in ORS 314.835 for
'J:l the purposes of this subparagraph only if:
28 (i) The request for information is made in writing, specifies the purposes for which the request
29 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
31 Administrative Services and approved by the Director of the Department of Revenue.
32 (ii) The officer, employee or person receiving the information does not remove from the premises
33 of the Department of Revenue any materials that would reveal the identity of a personal or corpo
34 rate taxpayer.
(b) The Commissioner of Internal Revenue or authorized representative, for tax administration
36 and compliance purposes only.
37 (c) For tax administration and compliance purposes, the proper officer or authorized represen
38 tative of any of the following entities that has or is governed by a provision of law that meets the
39 requirements of any applicable provision of the Internal Revenue Code as to confidentiality:
(A) A state;
41 (B) A city, county or other political subdivision of a state;
42 (C) The District of Columbia; or
43 (D) An association established exclusively to provide services to federal, state or local taxing
44 authorities.
(d) The Multistate Tax Commission or its authorized representatives, for tax administration and
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1 compliance purposes only. The Multistate Tax Commission may make the information available to
2 the Commissioner of Internal Revenue or the proper officer or authorized representative of any
3 governmental entity described in and meeting the qualifications of paragraph (c) of this subsection.
4 (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
6 necessary for the performance of the duties of advising or representing the department pursuant to
7 ORS 180.010 to 180.240 and the tax laws of this state.
8 (t) Employees of the State of Oregon, other than of the Department of Revenue or Department
9 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 de
II partment, agency or subdivision of the State of Oregon, in the department's administration of the
12 tax laws.
13 (g) Other persons, partnerships, corporations and other legal entities, and their employees, to
14 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
16 department's administration of the tax laws.
17 (h) The Legislative Revenue Officer or authorized representatives upon compliance with ORS
18 173.850. Such officer or representative shall not remove from the premises of the department any
19 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
21 such information to determine whether it is appropriate to adjust those workers' compensation
22 benefits the amount of which is based pursuant to ORS chapter 656 on the amount of wages or
23 earned income received by an individual.
24 (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
26 section, including but not limited to the Secretary of State as Auditor of Public Accounts under
27 section 2, Article VI of the Oregon Constitution; the Department of Human Services pursuant to
28 ORS 314.860 and 412.094; the Division of Child Support of the Department of Justice and district
29 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
31 Accountancy, pursuant to ORS 673.415.
32 (k) The Director of the Department of Consumer and Business Services to determine that a
33 person complies with ORS chapter 656 and the Director of the Employment Department to determine
34 that a person complies with ORS chapter 657, the following employer information:
(A) Identification numbers.
36 (B) Names and addresses.
37 (C) Inception date as employer.
38 (D) Nature of business.
39 (E) Entity changes.
(F) Date of last payroll.
41 (L) The Director of Human Services to determine that a person has the ability to pay for care
42 that includes services provided by the Eastern Oregon Training Center or the Department of Human
43 Services to collect any unpaid cost of care as provided by ORS chapter 179.
44 (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
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1 State Hospital or the Oregon Health Authority to collect any unpaid cost of care as provided by
2 ORS chapter 179.
3 (n) Employees of the Employment Department to the extent the Department of Revenue deems
4 disclosure or access to information on a combined tax report filed under ORS 316.168 is necessary
5 to performance of their duties in administering the tax imposed by ORS chapter 657.
6 (0) The State Fire Marshal to assist the State Fire Marshal in carrying out duties, functions and
7 powers under ORS 453.307 to 453.414, the employer or agent name, address, telephone number and
8 standard industrial classification, if available.
9 (p) Employees of the Department of State Lands for the purposes of identifying, locating and
10 publishing lists of taxpayers entitled to unclaimed refunds as required by the provisions of chapter
11 694, Oregon Laws 1993. The infonnation shall be limited to the taxpayer's name, address and the
12 refund amount.
13 (q) In addition to the disclosure allowed under ORS 305.225, state or local law enforcement
14 agencies to assist in the investigation or prosecution of the following criminal activities:
15 (A) Mail theft of a check, in which case the information that may be disclosed shall be limited
16 to the stolen document, the name, address and taxpayer identification number of the payee, the
17 amount of the check and the date printed on the check.
18 (B) The counterfeiting, forging or altering of a check submitted by a taxpayer to the Department
19 of Revenue or issued by the Department of Revenue to a taxpayer, in which case the information
00 that may be disclosed shall be limited to the counterfeit, forged or altered document, the name, ad
21 dress and taxpayer identification number of the payee, the amount of the check, the date printed
22 on the check and the altered name and address.
23 (r) The United States Postal Inspection Service or a federal law enforcement agency, including
24 but not limited to the United States Department of Justice, to assist in the investigation of the fol
25 lowing criminal activities:
26 (A) Mail theft of a check, in which case the information that may be disclosed shall be limited
27 to the stolen document, the name, address and taxpayer identification number of the payee, the
28 amount of the check and the date printed on the check.
29 (B) The counterfeiting, forging or altering of a check submitted by a taxpayer to the Department
30 of Revenue or issued by the Department of Revenue to a taxpayer, in which case the information
31 that may be disclosed shall be limited to the counterfeit, forged or altered document, the name, ad
32 dress and taxpayer identification number of the payee, the amount of the check, the date printed
33 on the check and the altered name and address.
34 (s) The United States Financial Management Service, for purposes of facilitating the offsets de
35 scribed in ORS 305.612.
36 (t) A municipal corporation of this state for purposes of assisting the municipal corporation in
37 the administration of a tax of the municipal corporation that is imposed on or measured by income,
38 wages or net earnings from self-employment. Any disclosure under this paragraph may be made only
39 pursuant to a written agreement between the Department of Revenue and the municipal corporation
40 that ensures the confidentiality of the information disclosed.
41 (u) A consumer reporting agency, to the extent necessary to carry out the purposes of ORS
42 314.843.
43 (v) The Public Employees Retirement Board, to the extent necessary to carry out the purposes
44 of ORS 238.372 to 238.384, and to any public employer, to the extent necessary to carry out the
45 purposes of ORS 237.635 (3) and 237.637 (2).
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1 (3)(a) Each officer or employee of the department and each person described or referred to in
2 subsection (2)(a), (e) to (k) or (n) to (q) of this section to whom disclosure or access to the tax in
3 formation is given under subsection (2) of this section or any other provision of state law, prior to
4 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 vio
6 lation of ORS 314.835, and shall as a condition of employment or performance of duties execute a
7 certificate for the department, in a form prescribed by the department, stating in substance that the
8 person has read these provisions of law, that the person has had them explained and that the person
9 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
11 written agreement has been entered into between the Department of Revenue and the person de
12 scribed in subsection (2)(r) of this section to whom disclosure or access to the tax information is
13 given, providing that:
14 (A) Any information described in ORS 314.835 that is received by the person pursuant to sub
section (2)(r) of this section is confidential information that may not be disclosed, except to the ex
16 tent necessary to investigate or prosecute the criminal activities described in subsection (2)(r) of
17 this section;
18 (B) The information shall be protected as confidential under applicable federal and state laws;
19 and
(C) The United States Postal Inspection Service or the federal law enforcement agency shall
21 give notice to the Department of Revenue of any request received under the federal Freedom of In
22 formation Act, 5 U.S.C. 552, or other federal law relating to the disclosure of information.
Z3 (4) The Department of Revenue may recover the costs of furnishing the information described
24 in subsection (2)(k) to (m) and (0) to (q) of this section from the respective agencies.
26 EMPLOYER CONTRIBUTION RATES
'Z1
28 SECTION 18. (1) As soon as possible after the effective date of this 2013 Act, the Public
29 Employees Retirement Board shall recalculate the contribution rates of all employers, pur
suant to ORS 238.225, to reflect the provisions of this 2013 Act.
31 (2) The board shall issue corrected contribution rate orders to employers affected by re
32 calculated rates under this section within 90 days after the effective date of this 2013 Act.
33 The corrected rates are effective July 1, 2013.
34
JUDICIAL REVIEW
36
37 SECTION 19. (1) Jurisdiction is conferred on the Supreme Court to determine in the
38 manner provided by this section whether this 2013 Act breaches any contract between
39 members of the Public Employees Retirement System and their employers, violates any
constitutional provision, including but not limited to impairment of contract rights of mem
41 bers of the Public Employees Retirement System under Article I, section 21, of the Oregon
42 Constitution, or Article I, section 10, clause I, of the United States Constitution, or is invalid
43 for any other reason.
44 (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
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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 af·
fected.
(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 mat
ters 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 peti
tion, the Supreme Court may appoint a special master to hear evidence and to prepare reo
commended findings of fact.
CAPTIONS
SECTION 20. The unit captions used in this 2013 Act are provided only for the conven
ience 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 21. 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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