Signed by Governor Kate Brown

Vote Smart's Synopsis:

Vote to pass a bill that reduces the state public pension liability cost.

Highlights:

• Establishes an employee pension stability account for each active member of the Public Employee Retirement System (PERS), adjusted at least annually with rules adopted by the board to reflect any net earnings or losses on the amounts in the account and applied by the board to pay the costs of the pension or other retirement benefits that are payable to the member or the member’s beneficiary (Sec. 3).

• Requires that if the amounts in the account established above exceed the costs of the pension or other retirement benefits that are payable to the member or the member’s beneficiary, the board shall refund the excess amounts in a lump sum to the member or the member’s beneficiary (Sec. 3).

• Requires the Public Employees Retirement Board to determine the liabilities of PERS attributable to the benefits provided to members who established membership in the system before August 29, 2003 and set the amount of contributions to be made by participating public employers, and by public employers required to make contributions on behalf of members, to ensure that liabilities will be funded 22 years after the date the determination is made (Sec. 27).

• Repeals the above requirement on January 2nd, 2020 (Sec. 28).

• Authorizes public employers to employ any retired member without limitation on hours worked if the administrative head of the public employer is satisfied that the employment “is in the public interest” (Sec. 34).

• Requires public employers that employ a retired member at any point from 2020 to 2024 to contribute to the Public Employees Retirement Board the percentage of the member’s wages that would have been contributed to the board if they were an active member of PERS, and such contributions to be applied to the liabilities of the public employer (Sec. 35).

• Prohibits retired members who are receiving old-age, survivors, or disabilities insurance benefits under the federal Social Security Act from working no more than the number of hours the salary equals the maximum allowed for receipt of the full amount of those benefits they are entitled to (Sec. 37).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces the state public pension liability cost.

Highlights:

• Establishes an employee pension stability account for each active member of the Public Employee Retirement System (PERS), adjusted at least annually with rules adopted by the board to reflect any net earnings or losses on the amounts in the account and applied by the board to pay the costs of the pension or other retirement benefits that are payable to the member or the member’s beneficiary (Sec. 3).

• Requires that if the amounts in the account established above exceed the costs of the pension or other retirement benefits that are payable to the member or the member’s beneficiary, the board shall refund the excess amounts in a lump sum to the member or the member’s beneficiary (Sec. 3).

• Requires the Public Employees Retirement Board to determine the liabilities of PERS attributable to the benefits provided to members who established membership in the system before August 29, 2003 and set the amount of contributions to be made by participating public employers, and by public employers required to make contributions on behalf of members, to ensure that liabilities will be funded 22 years after the date the determination is made (Sec. 27).

• Repeals the above requirement on January 2nd, 2020 (Sec. 28).

• Authorizes public employers to employ any retired member without limitation on hours worked if the administrative head of the public employer is satisfied that the employment “is in the public interest” (Sec. 34).

• Requires public employers that employ a retired member at any point from 2020 to 2024 to contribute to the Public Employees Retirement Board the percentage of the member’s wages that would have been contributed to the board if they were an active member of PERS, and such contributions to be applied to the liabilities of the public employer (Sec. 35).

• Prohibits retired members who are receiving old-age, survivors, or disabilities insurance benefits under the federal Social Security Act from working no more than the number of hours the salary equals the maximum allowed for receipt of the full amount of those benefits they are entitled to (Sec. 37).

Full Bill Text