| Enacted 2007 PERS Legislation |
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| Introduction |
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Information for registered domestic partners
In 2007, the Oregon State Legislature enacted 18 major bills that impact PERS:
Bill
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Topic
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Effective Date
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HB 2007
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Domestic Partnerships
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January 1, 2008
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HB 2184
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1039-Hour Exception for DHS Assistant/Deputy Directors
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June 7, 2007 |
HB 2280
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Equal-To-or-Better-Than
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January 1, 2008
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HB 2281
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Withdrawals
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January 1, 2008
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HB 2282
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Notice of Contest
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January 1, 2008
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HB 2283
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Oregon Investment Council
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June 26, 2007
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HB 2285
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Break in Service/Accrual of OPSRP Retirement Credit
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January 1, 2008
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HB 2286
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Deferred Compensation – Alternate Payee
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January 1, 2008
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HB 2358
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Deferred Compensation – Oregon State Bar
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January 1, 2008
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HB 2397
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Rollovers
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January 1, 2008
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HB 2401
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9-1-1 Operators
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January 1, 2008
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HB 2585
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Reemployed Retirees – Community Colleges
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July 16, 2007
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HB 2619
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PERS Omnibus Bill
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July 16, 2007
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HB 2679
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Individual Account Program
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January 1, 2008
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HB 5040
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PERS Budget
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July 1, 2007
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SB 4
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Reemployed Retirees – Nursing Workforce Shortage
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July 1, 2007
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SB 342
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Reemployed Retirees – Nursing Instructors
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January 1, 2008
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SB 872
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Judges
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June 20, 2007
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For information on PERS-related legislation, please contact daniel.rivas@state.or.us. If you're looking for the 2005 legislation, see Enacted 2005 PERS Legislation.
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| HB 2007 |
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Domestic Partnership
Directs PERS to extend the same rights and benefits to registered domestic partners as are extended to married individuals, unless the plan administrator reasonably concludes such extension would conflict with a condition of the plan’s tax qualification or other favorable tax treatment of the plan.
Text of HB 2007 in PDF format
Signed by Governor: May 9, 2007
Effective: January 1, 2008
Information for registered domestic partners
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| HB 2184 |
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1039-Hour Exception for Department of Human Services Assistant/Deputy Directors
Adds exception to ORS 238.082 to allow a retired member employed as Deputy Director or Assistant Director of the Department of Human Services to exceed the 1039-hour limitation if the Governor approves the exception for the specific person in the position.
Text of HB 2184 in PDF format
Signed by Governor: June 7, 2007
Effective: June 7, 2007
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| HB 2280 |
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Equal-To-or-Better-Than
Removes requirement that review of Equal To Or Better Than (ETOB) benefits be conducted every two years. Allows PERS to establish criteria by administrative rule to determine when ETOB review is required. Provides for three-tiered standard of review for ETOB plans based on commensurate PERS programs. ETOB benefits for P&F who would have been Tier One had they entered PERS instead of the ETOB plan are compared to Tier One P&F benefits. Appropriate comparisons are done for ETOB members who would have been Tier Two or OPSRP. If the ETOB benefits do not satisfy the standards of review, the employer is required to comply by providing benefits that meet the standards. A non-compliant employer is subject to legal action by employees to enforce compliance. There is no provision for employees of a non-compliant employer to come into PERS.
Text of HB 2280 in PDF format
Signed by Governor: June 26, 2007
Effective: January 1, 2008
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| HB 2281 |
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Withdrawals
Requires a member who withdraws from any PERS program (PERS Chapter 238, OPSRP Pension, IAP), to withdraw from all programs under which the member is eligible to withdraw. Such withdrawal will include the member’s Police and Fire (P&F) Unit Account, if any. An independent withdrawal of the P&F Unit Account does not require withdrawal from the other PERS programs. Establishes that restoration of membership rights and creditable service by redeposit or purchase at retirement in the PERS Chapter 238 program does not restore any rights forfeited by withdrawal from OPSRP Pension, IAP, or P&F Unit Account. Clarifies that PERS establishes an account for a member who elects to make P&F Unit contributions. Clarifies withdrawal language for P&F Unit Accounts. Establishes that a member who withdraws his/her P&F Unit account may not elect to purchase P&F Units again.
Text of HB 2281 in PDF format
Signed by Governor: April 17, 2007
Effective: January 1, 2008
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| HB 2282 |
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Notice of Contest
Changes the statutory term “Notice of Contest” to “Notice of Dispute.”
Text of HB 2282 in PDF format
Signed by Governor: April 17, 2007
Effective: January 1, 2008
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| HB 2283 |
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Oregon Investment Council
Removes requirement that the Governor appoint one member of the PERS Board to serve on the Oregon Investment Council (OIC). Provides that a PERS Board member qualified by training and experience in the field of investment or finance may be appointed to the OIC. Clarifies that ORS 238.640 governs compensation and expenses for a PERS Board member appointed to OIC.
Text of HB 2283 in PDF format
Signed by Governor: June 26, 2007
Effective: June 26, 2007
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| HB 2285 |
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Break in Service
Eliminates “Break in Service” statutory provisions retroactively. Applies to all service by members of the system, whether performed before, on, or after the effective date of the Act. Effectively treats “Break in Service” as if it never existed. Specifically:
Provides that a person who is a member of the PERS Chapter 238 Program on August 28, 2003 remains a member of the 238 program unless membership is terminated under ORS 238.095 (withdrawal or loss of membership). If PERS Chapter 238 Program membership is terminated on or after August 29, 2003, the person is eligible only for OPSRP membership for service after 238 membership is terminated. All exceptions to “Break in Service” are eliminated, including HB 2284.
Eliminates provision allowing a member of the OPSRP Pension who has “Break in Service” but is also eligible for PERS Chapter 238 Program benefits to use PERS Chapter 238 Program early retirement eligibility to establish OPSRP Pension earliest retirement age.
Eliminates provision directing Board to use ORS 238A.005 definition of salary to determine IAP contributions for service by a member after a “Break in Service.”
Clarifies that a person who is a member of the Legislative Assembly on August 29, 2003 and is a member of the PERS Chapter 238 Program may elect to remain a member of the 238 program until the person resigns or otherwise leaves office.
Makes a citation correction in ORS 243.800 (9).
Eliminates reciprocal use of creditable service and retirement credit.
Eliminates provisions regarding a member who has a “Break in Service” and returns on or after August 29, 2003 and before January 1, 2004.
Directs PERS, as soon as possible after the effective date of the Act, to:
- Recalculate the retirement benefit of any member who retired before the effective date of the Act if the benefit was affected by “Break in Service.”
- Adjust the service credit of any active or inactive member who was affected by “Break in Service.”
- Adjust IAP contributions and accounts of any active or inactive member who was affected by “Break in Service.” Permits PERS to refund or require additional contributions to adjust account balances.
Accrual of OPSRP Retirement Credit and Part-Time Gross Up of Salary
Eliminates provisions in ORS 238A.140 regarding full-time equivalency (FTE), hours, proration, and accrual of retirement credit and instead provides for accrual of retirement credit in the same manner as in the PERS Chapter 238 Program. Eliminates requirement that salary of a part-time employee be grossed up to full-time salary for calculation of final average salary. Applies to all service by members of the system, whether performed before, on, or after the effective date of the Act. Effectively applies these provisions to the OPSRP Pension Program from its inception. Specifically:
Provides that an active member of the OPSRP Pension accrues one year of retirement credit for each complete year of service and one-twelfth of a year of retirement credit for each full month or major fraction of a month.
Provides that school employees are credited with six months of retirement credit if they perform service for the major fraction of each month of the school year that falls within the six months.
Retains crediting of retirement credit upon completion of waiting period, restriction of retirement credit accrual to maximum of 1.0 per year, and the definition of “school employee.”
Eliminates requirement that a member must have 600 hours of service in a calendar year to accrue retirement credit.
Eliminates equivalency of 1.0 FTE to 1200 hours for academic employees of community colleges.
Text of HB 2285 in PDF format
Signed by Governor: July 16, 2007
Effective: January 1, 2008
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| HB 2286 |
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Deferred Compensation - Alternate Payee
Clarifies that an order creating an alternate payee of an OSGP participant may provide for payments to the alternate payee to commence earlier than the date the participant would first be eligible to receive payments. Clarifies that, for state and federal income tax purposes, payments to an alternate payee who is a child or dependent of the participant are reported as payments to the participant. Payments to an alternate payee who is the spouse or former spouse are reported as payments to the alternate payee. In either case, amounts required to be withheld for tax purposes will be withheld from the payment to the alternate payee.
Text of HB 2286 in PDF format
Signed by Governor: April 17, 2007
Effective: January 1, 2008
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| HB 2358 |
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Deferred Compensation - Oregon State Bar
Allows Oregon State Bar employees to participate in the OSGP.
Text of HB 2358 in PDF format
Signed by Governor: April 17, 2007
Effective: January 1, 2008
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| HB 2397 |
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Rollovers
Allows the PERS Board to accept qualified rollover contributions from retired members for repayment of overpayments or erroneous payments. Requires rollovers received to be credited to amounts overpaid or erroneously paid. Directs Board to adopt rules and procedures for rollover contributions in compliance with federal tax law and plan qualification.
Allows a beneficiary, including a non-spousal beneficiary, to roll over death benefit from the PERS Chapter 238 Program, OPSRP Pension, IAP, and OSGP. Establishes requirements for administration of such rollovers.
Allows a member who is a state employee, at least 60 years of age, and a participant in the state deferred compensation plan to transfer funds from OSGP to PERS to purchase creditable service (waiting time and refunded time only), provided the member will have at least 35 or more years of creditable service upon application of the purchase. Provides that a member must give notice to the Board requesting such transfer no later than 60 days after January 1, 2008. The transfer amount may not exceed the amount needed to purchase by lump-sum payment all creditable service for which the member is eligible, must be used only for the purpose of the purchase, and must not be made available to the member. The transfer must be processed upon receipt of notice from the member. Upon receipt the transfer must be immediately applied to the purchase. If the amount transferred is insufficient to purchase all creditable service (refunded time only), the member may later purchase the additional creditable service as provided by ORS 238.115.
Text of HB 2397 in PDF format
Signed by Governor: June 26, 2007
Effective: January 1, 2008
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| HB 2401 |
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9-1-1 Operators
Allows a member of the PERS Chapter 238 Program who is a telecommunicator (9-1-1 operator) with 25 years or more of creditable service as a telecommunicator to retire with an actuarially reduced benefit. Allows a member of the OPSRP Pension Program who is a telecommunicator with 25 years or more of retirement credit as a telecommunicator to retire with an actuarially reduced benefit. Provides that a member who retires under this eligibility standard may not receive a COLA until age 55. Establishes that a PERS Chapter 238 Program member who retires under this standard is not eligible for certain exceptions to work after retirement restrictions in ORS 238.078, .082, and .088
Text of HB 2401 in PDF format
Signed by Governor: June 13, 2007
Effective: January 1, 2008
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| HB 2585 |
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Reemployed Retirees – Community Colleges
Creates an exception to the 1039-hour limitation for a retired member who is employed as a teacher or administrator by a community college district located in a county of 35,000 inhabitants or less. Clarifies exception for a retired member employed as a teacher or administrator by an education service district (ESD) by eliminating the requirements that the ESD be located in a county of 35,000 inhabitants or less, but by adding that the primary duties of the retired member must be performed in a county of 35,000 inhabitants or less.
Exempts a retired member employed as a speech-language pathologist or speech-language pathologist assistant by a school district or education service district from the 1,039-hour limitation. This provision sunsets January 2, 2016.
Also provides that these provisions, and the current exception for employment as a teacher or administrator by a school district located in a county of 35,000 inhabitants or less, are available to members who took early retirement if the date of employment in the position is at least six months later than the member’s retirement date.
Text of HB 2585 in PDF format
Signed by Governor: July 16, 2007
Effective: July 16, 2007
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| HB 2619 |
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PERS Omnibus Bill
Allows a member who is a police officer to make a full cost purchase of up to four years of creditable service for service as a public safety officer in another state. Establishes procedures and standards for purchase and defines “public safety officer.”
Clarifies that hours worked by a retired member employed by the Legislative Assembly or the Oregon State Police for service during the legislative session are not counted toward the 1039-hour limitation. Removes requirement related to retired members age 65 or older.
Provides for net earnings and losses to be credited to member accounts in Loss of Membership status during subsequent periods of active membership. Loss of membership and return to active membership may have occurred at any time before, on, or after the effective date of the Act, but crediting is only permitted for periods of active membership served on or after the effective date of the Act.
Text of HB 2619 in PDF format
Signed by Governor: July 16, 2007
Effective: July 16, 2007
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| HB 2679 |
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Individual Account Program
Allows payout of IAP account(s) over the life expectancy of the member. Adds this option to the current 5, 10, 15, or 20-year payout periods.
Text of HB 2679 in PDF format
Signed by Governor: June 13, 2007
Effective: January 1, 2008
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| HB 5040 |
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PERS Budget
Text of HB 5040 in PDF format
Signed by Governor: May 30, 2007
Effective: July 1, 2007
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| SB 4 |
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Reemployed Retirees – Nursing Workforce Shortage
Creates exception to the 1,039-hour limitation for retired member who is a nurse and is hired as a nurse or for the purpose of teaching nursing during a nursing workforce shortage declared by the Governor or the Legislative Assembly.
Text of SB 4 in PDF format
Signed by Governor: July 17, 2007
Effective: July 1, 2007
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| SB 342 |
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Reemployed Retirees – Nursing Instructors
Exempts retired member who is a registered nurse and is hired by a public employer as a nursing instructor from the 1039-hour limitation. Also, exempts a retired member hired by the Department of Public Safety Standards and Training to provide training under ORS 181.610 - 181.712. These exemptions are not available to Tier One members who retire before age 58 or Tier Two members who retire before age 62 unless the member qualified for retirement with 30 years of service. Sunsets January 2, 2016.
Text of SB 342 in PDF format
Signed by Governor: June 20, 2007
Effective: January 1, 2008
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| SB 872 |
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Judges
Provides that a judge member may, before or after retirement, designate a portion of the life pension payable to a surviving spouse to be paid to a former spouse. If the judge member is married at the time of the election, spousal consent is required. Such an election does not require recalculation or change the amount of any additional pension under ORS 238.565(4). The former spouse shall receive only the designated portion of the pension for his/her lifetime regardless of whether there is a surviving spouse at the time of the judge member’s death. A surviving spouse shall receive only that portion of the surviving spouse pension not designated for payment to the former spouse. Any portion of the surviving spouse pension payable to the surviving spouse is payable only until the death of the former spouse.
Text of SB 872 in PDF format
Signed by Governor: June 20, 2007
Effective: June 20, 2007
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