Enacted 2023 PERS legislation

Introduction

The Oregon State Legislature enacted 11 bills impacting PERS in 2023.

Senate Bill (SB) 128

Prison chaplain housing allowance bill

Treats prison chaplains’ housing allowance as if it were included in the PERS members’ taxable income. Only affects Oregon Public Service Retirement Plan (OPSRP) members, as their salary is defined as income that “is, or would be if the member were an Oregon resident, includable in the employee’s taxable income under Oregon law.”

Full text of SB 128

SB 141

Federal tax reconnect bill

Updates “connection date" to Internal Revenue Code to December 31, 2022. The code is federal tax law, and a connection date helps identify the version of the code that the state of Oregon references in its own laws, including the Oregon statutes governing PERS.

Full text of SB 141

SB 283

Education omnibus bill

Addresses barriers for educators in Oregon. PERS was involved in discussions with legislators regarding substitute teachers and their PERS eligibility. Initially, this bill prohibited school districts from contracting with third-parties for substitute teachers. However, the bill was ultimately amended and that prohibition was removed. The bill now creates the Task Force on Substitute Teachers task force to, among other things, review policies and cost savings of providing substitute teachers through third-party service providers, and to develop recommendations for legislation related to standards for contracts for substitute teachers through third-party service providers. PERS will be involved in this task force to provide information regarding how any standards recommended will interact with potential PERS eligibility for these substitute teachers.

It is important to note that, with the enrolled, final version of this bill, PERS has not changed they way the agency evaluates whether or not someone is an employee for purposes of PERS.

Full text of SB 283

SB 951

State Board of Parole and Post-Prison Supervision bill

Provides that certified probation officers employed by the State Board of Parole and Post-Prison Supervision qualify as police officers for PERS purposes. Effective for all certified probation officers employed with the Board of Parole on January 1, 2024. Includes their service time performed for the board on, before, and after January 1, 2024.

Full text of SB 951

House Bill (HB) 2032

Registered domestic partnership bill

Expands eligibility for domestic partnership under Oregon Family Fairness Act to partners of any sex. Also removes requirement that PERS prove “reasonably conclude” that, in each case of a registered domestic partnership, extension of benefits would cause the agency to lose its federal tax certification. PERS committed on the House floor to continuing to administer all benefits due a registered domestic partner of a PERS member that federal law allows.

Full text of HB 2032

HB 2054

Deputy district attorneys bill

Provides that deputy district attorneys qualify as police officers for PERS purposes. Effective for new employees as well as continuing employees’ service time as of January 1, 2024.

Full text of HB 2054

HB 2283

PERS modernization fixes bill

This bill focuses on ensuring PERS’ statutes are clearer. The bill also aligns standards where possible between Tier One/Tier Two and OPSRP members for ease of administration and provides refinement where needed to accurately convey current agency practice and plans for the future of the agency’s modernization project.

Full text of HB 2283

HB 2284

Alternate payee account creation fee bill

Raises the fee related to the creation of an alternate payee account (most commonly used in cases of divorce) from $300 to $1,300. Ties future increases of this fee to the Consumer Price Index (CPI) and makes annual adjustments beginning January 1, 2025. Initial increase is effective January 1, 2024.

Full text of HB 2284

HB 2285

Social Security statute cleanup bill

Previously, the PERS administrator served as the State Social Security Administrator. In 1987, collection of Federal Insurance Contributions Act (FICA)* taxes was transferred to the Internal Revenue Service. This bill deletes obsolete references related to FICA tax collection in PERS statutes. (*FICA is a federal payroll tax that helps to fund Social Security and Medicare programs.)

Full text of HB 2285

HB 2296

SB 1049 (2019) work after retirement sunset extension bill

Extends the sunset of SB 1049 (2019) work after retirement provisions for an additional 10 years, until January 1, 2034. Previously, these provisions, which remove most hourly limits on working after retirement, were slated to sunset on January 1, 2024.

Full text of HB 2296

HB 2740

Modifies calculation of hours of employment of academic employees of community colleges and public universities for purposes of PERS.

Establishes a uniform level of retirement plan eligibility for part-time faculty at community colleges and public universities. Calculates hours of employment as number of hours of lecture time or classroom time multiplied by 2.67.

Full text of HB 2740

HB 3485

Oregon State Fire Marshal bill

Establishes provisions related to the administration of the Oregon State Fire Marshal, which was reorganized as a department in 2021. Related to PERS, this bill provides an exception to the work after retirement hourly limits to employees of the department for work related to fire prevention, fire preparedness, fire risk mitigation, firefighting, emergency response, or other response support functions. Note: These hourly limitations and the necessary exceptions will only become active when and if SB 1049 (2019) work after retirement provisions sunset. This bill also rewords the definition of “firefighter” in PERS statutes related to the department to more accurately reflect the department’s new composition.

Full text of HB 3485

HB 5033

PERS budget bill

Limits certain biennial expenditures from fees, moneys, or other revenues — including miscellaneous receipts but excluding lottery funds and federal funds — collected or received by PERS.

Full text of HB 5033