77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

SA to SB 565

LC 1758/SB 565-1

                      SENATE AMENDMENTS TO
                         SENATE BILL 565

                    By COMMITTEE ON JUDICIARY

                            March 18

  On page 1 of the printed bill, line 4, after '236.350, ' insert
'238.005,'.
  On page 36, after line 10, insert:
  '  { +  SECTION 35a. + } ORS 238.005, as amended by section 30,
chapter 54, Oregon Laws 2012, is amended to read:
  ' 238.005. For purposes of this chapter:
  ' (1) 'Active member' means a member who is presently employed
by a participating public employer 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 December 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 1,
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 Retirement 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 employer 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, provided 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 employees, 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
before the effective date of retirement of the employee, in which
three years the employee was paid 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 calendar 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 effective date of retirement of the employee.
  ' (10) '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 following.
  ' (12) 'Fund' means the Public Employees Retirement Fund.
  ' (13) '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.
  ' (14) '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.
  ' (15) 'Member' means a person who has established membership
in the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
  ' (16) 'Member account' means the regular account and the
variable account.
  ' (17) '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 described 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.
  ' (18) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
  ' (19) '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 enforcement 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.
  ' (f) Police officers who are commissioned by a university
under ORS 352.383 { +  or section 1 of this 2013 Act + } and who
are classified as police officers by the university.
  ' (g) Parole and probation officers employed by the Department
of Corrections, parole and probation 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
officers as police officers for the purposes of this chapter, and
the employees so classified are represented 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 Commissioners of the Port of
Portland.
  ' (j) Employees of the State Department of Agriculture who are
classified as livestock police officers 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.
  ' (o) The Director of the Department of Corrections.
  ' (p) An employee who for seven consecutive years has been
classified as a police officer as defined 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 system 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 description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
  ' (u) Employees of the Oregon Youth Authority who are
classified as juvenile parole and probation 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 governmental 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 employers 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 under 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;
  ' (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.
  ' (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 35b. + }  { + The amendments to ORS 238.005 by
section 35a of this 2013 Act apply only to:
  ' (1) Persons described in ORS 238.005 (19)(f) who are employed
by Oregon Health and Science University on or after the effective
date of this 2013 Act; and
  ' (2) Service rendered to a participating public employer on or
after the effective date of this 2013 Act. + } ' .
  On page 57, line 12, after '236.350,' insert '238.005,'.
  In line 14, after '2' insert 'to 35a and 36'.
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