2013 ORS § 238A.210¹
Cost-of-living adjustment

(1) On July 1 of each year, the board shall increase every pension payable under ORS 238A.180 (Normal retirement benefit), 238A.185 (Early retirement) and 238A.190 (Survivorship benefits), every disability benefit under ORS 238A.235 (Disability benefit) and every death benefit payable under ORS 238A.230 (Death benefit) as provided in subsection (2) of this section. The increase shall be made for the payments payable on August 1 and thereafter.

(2)(a) If a persons yearly pension or benefit is $60,000 or less, the pension or benefit shall be increased by 1.25 [bad link] percent.

(b) If a persons yearly pension or benefit is more than $60,000, the pension or benefit shall be increased by $750 plus 0.15 percent of the amount of the yearly pension or benefit exceeding $60,000.

(3) As used in this section, yearly pension or benefit means the monthly pension or benefit that a person is entitled to on July 1 of the year in which the board is calculating the increase under subsection (1) of this section, multiplied by 12. [2003 c.733 §23; 2013 c.53 §§5,7; 2013 s.s.1 c.2 §3]

Note: The amendments to 238A.210 (Cost-of-living adjustment) by section 7, chapter 53, Oregon Laws 2013, and section 3, chapter 2, Oregon Laws 2013 (first special session), become operative July 1, 2014, and apply to all increases to pensions or benefits made on and after July 1, 2014. See sections 8 and 9, chapter 53, Oregon Laws 2013, and sections 4 and 5, chapter 2, Oregon Laws 2013 (first special session). The text that is operative until July 1, 2014, including amendments by section 5, chapter 53, Oregon Laws 2013, is set forth for the users convenience.

238A.210 (Cost-of-living adjustment). (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 (Normal retirement benefit), 238A.185 (Early retirement) and 238A.190 (Survivorship benefits), every disability benefit under ORS 238A.235 (Disability benefit) and every death benefit payable under ORS 238A.230 (Death benefit) by multiplying the monthly payment by the percentage figure determined by the board. 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 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) An increase or decrease in the benefit payments under this section may not exceed 1.5 [bad link] 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.

Note: Sections 8 to 10, chapter 2, Oregon Laws 2013 (first special session), provide:

Sec. 8. (1) As used in this section:

(a) Yearly allowance has the meaning given that term in ORS 238.360 (Cost-of-living adjustments).

(b) Yearly pension or benefit has the meaning given that term in ORS 238A.210 (Cost-of-living adjustment).

(2) Each year, the Public Employees Retirement Board shall make a supplementary payment to each member or members beneficiary. The supplementary payment shall be equal to 0.25 percent of the members or members beneficiarys yearly allowance or yearly pension or benefit, but in no event may the supplementary payment exceed $150.

(3) In addition to the supplementary payment under subsection (2) of this section, the board shall make an additional supplementary payment each year to each member or members beneficiary with a yearly allowance or yearly pension or benefit of $20,000 or less. A supplementary payment made under this subsection shall be equal to 0.25 percent of the members or members beneficiarys yearly allowance or yearly pension or benefit.

(4) The board shall make the first supplementary payments under subsections (2) and (3) of this section in 2014.

(5) A supplementary payment made under this section may not be included in a members or members beneficiarys yearly allowance or yearly pension or benefit for purposes of calculating cost-of-living adjustments under ORS 238.360 (Cost-of-living adjustments), 238.575 (Cost-of-living adjustments) or 238A.210 (Cost-of-living adjustment).

(6) The board shall pay supplementary payments under this section out of the reserve account established under ORS 238.670 (Reserve accounts in fund) (1). [2013 s.s.1 c.2 §8]

Sec. 9. On or before September 30, 2018, the Public Employees Retirement Board shall report to the Governor, the President of the Senate and the Speaker of the House of Representatives on:

(1) Recommendations relating to the cost-of-living adjustment under the Public Employees Retirement System;

(2) Recommendations relating to the continuation of supplementary payments to members and members beneficiaries under section 8 of this 2013 special session Act; and

(3) Recommendations on approaches to calculating cost-of-living adjustments under the system that take into consideration a retired members years of creditable service. [2013 s.s.1 c.2 §9]

Sec. 10. Sections 8 and 9 of this 2013 special session Act are repealed on December 31, 2019. [2013 s.s.1 c.2 §10]