ORS 238.420
Payment toward cost of Medicare supplemental insurance


(1)

As used in this section, “eligible retired member” means:

(a)

A retired member of the Public Employees Retirement System who is retired for service or disability, is receiving a retirement allowance or benefit under the system, had eight years or more of qualifying service in the system at the time of retirement or is receiving a disability retirement allowance including a pension computed as if the member had eight years or more of creditable service in the system at the time of retirement, and is eligible for federal Medicare coverage; or

(b)

A person who is a surviving spouse or dependent of a deceased eligible retired member as provided in paragraph (a) of this subsection at the time of death, who is eligible for federal Medicare coverage and who:

(A)

Is receiving a retirement allowance or benefit under the system; or

(B)

Was covered at the time of the retired member’s death by the retired member’s health insurance contracted for under ORS 238.410 (Board may contract for insurance for retirees), and the member retired before May 1, 1991.

(2)

For purposes of subsection (1)(a) of this section, “qualifying service” means creditable service in the system and any periods of employment with an employer participating in the system required of the employee before becoming a member of the system.

(3)

Of the monthly cost of coverage for an eligible retired member under a health care insurance contract that provides coverage supplemental to federal Medicare coverage entered into under ORS 238.410 (Board may contract for insurance for retirees), an amount equal to $60 or the total monthly cost of that coverage, whichever is less, shall be paid from the Retirement Health Insurance Account established by subsection (4) of this section, and any monthly cost in excess of $60 shall be paid by the eligible retired member in the manner provided in ORS 238.410 (Board may contract for insurance for retirees) (4). Any amount paid under this subsection shall be exempt from all state, county and municipal taxes imposed on the eligible retired member.

(4)

Pursuant to section 401(h) of the Internal Revenue Code, the Retirement Health Insurance Account is established within the Public Employees Retirement Fund, separate and distinct from the General Fund. Interest earned by the account shall be credited to the account. All moneys in the account are continuously appropriated to the Public Employees Retirement Board and may be used only to pay costs of health care insurance contract coverage under subsection (3) of this section, paying the administrative costs incurred by the board under this section and investment of moneys in the account under any law of this state specifically authorizing that investment.

(5)

The Retirement Health Insurance Account shall be funded by employer contributions. Each public employer that is a member of the system shall transmit to the board such amounts as the board determines to be actuarially necessary to fund the liabilities of the account. The level of employer contributions shall be established by the board using the same actuarial assumptions it uses to determine employer contribution rates to the Public Employees Retirement Fund. The amounts shall be transmitted at the same time and in the same manner as contributions for pension benefits are transmitted under ORS 238.225 (Employer contributions).

(6)

As provided in section 401(h)(5) of the Internal Revenue Code of 1986, upon satisfaction of all liabilities for providing benefits described in subsection (1) of this section, any amount remaining in the Retirement Health Insurance Account shall be returned to the employers participating in the retirement system on an equitable basis as determined by the board.

(7)

No member of the system shall have an interest in the Retirement Health Insurance Account. [Formerly 237.248; 1999 c.317 §18; 2001 c.945 §88; 2005 c.808 §7]

Source: Section 238.420 — Payment toward cost of Medicare supplemental insurance, https://www.­oregonlegislature.­gov/bills_laws/ors/ors238.­html.

(formerly 237.325, then 237.248)

Attorney General Opinions

Effect of diversions and transfers of employer and employee moneys on federal tax-exempt status of PERS and legislative remedy for breach of PERS contract and trust, (1989) Vol 46, p 180

238.005
Definitions
238.008
Computation of salary
238.015
Membership generally
238.025
Effect of service interruptions on membership
238.035
Membership of part but not all employees of a public employer
238.045
Membership of certain circuit court judges
238.055
Membership of judges previously receiving retirement pay from Judges’ Retirement Fund
238.062
Membership of deputy district attorneys
238.068
Membership of legislators
238.072
Membership of certain legislative employees
238.074
Membership of community college employees
238.078
Reemployment of retired members
238.082
Limits on hours worked by retired members
238.088
Appointment or election of retired member to public office
238.092
Option of legislators to receive certain benefits
238.095
Termination of membership
238.105
Restoration of credit forfeited by reason of termination of membership
238.115
Alternate method of restoring credit forfeited by reason of termination of membership
238.125
Credit for probationary period of employment
238.135
Credit for probationary periods in seasonal positions
238.145
Credit for service as police officer or firefighter with nonparticipating employer
238.148
Credit for service as public safety officer in another state
238.156
Contributions, benefits and retirement credit for periods of service in uniformed services or Armed Forces
238.157
Alternative provision for retirement credit for periods of service in uniformed services
238.160
Retirement credit for service while on loan to federal government
238.162
Retirement credit for service as teacher in public schools of another state
238.165
Credit for certain periods of employment by Legislative Assembly
238.175
Retirement credit for periods of disability
238.200
Employee contributions generally
238.205
Payment of employee contribution by employer
238.210
Payment of certain circuit court judge employee contributions by employer
238.215
Contributions by certain higher education employees
238.220
Employee rollover contributions
238.222
Trustee-to-trustee transfers to fund restoration of forfeited service or purchase of retirement credit
238.225
Employer contributions
238.227
Pooling of employers for purpose of computing employer contributions
238.229
Effect of lump sum payment to side account on contributions of pooled employer
238.232
Choice of amortization period for certain lump sum payments to side accounts
238.235
Unfunded liability or surplus after employee transfer or employer merger, consolidation or split
238.250
Regular accounts
238.255
Credits to regular accounts when earnings less than assumed interest rate
238.260
Variable Annuity Account
238.265
Withdrawal of member account
238.270
Transfer of member account to other public employee retirement system
238.280
Eligibility for retirement
238.285
Verification of retirement data
238.300
Service retirement allowance
238.305
Optional service retirement allowance calculations
238.310
Minimum service retirement allowance
238.315
Lump sum payment in lieu of small allowance
238.320
Disability retirement allowance
238.325
Optional disability retirement allowance calculations
238.330
Minimum disability retirement allowance
238.335
Medical examination for disability retirement allowance
238.340
Return to work
238.345
Optional service-connected disability retirement allowance for police officers and firefighters
238.350
Use of unused leave to increase retirement allowance
238.355
Computation of unused sick leave for community college employees
238.360
Cost-of-living adjustments
238.361
Consumer price index for calculation of cost of living adjustments
238.362
Increased benefits payable in compensation for certain damages attributable to taxation of benefits
238.364
Calculation of increased benefit payable under ORS 238.362
238.366
Retirement allowance increase based on years of service
238.368
Retirement allowance increases for members who retired before January 1, 1991
238.372
Increased benefits not payable to nonresidents
238.374
Applicant’s statement
238.376
Nonresidency after benefits commenced
238.378
Information from Department of Revenue
238.382
Statements constitute declaration under penalty of perjury
238.384
Rules
238.390
Death benefit
238.395
Additional death benefit
238.400
Payment upon death of retired member who dies before making election of retirement benefits
238.405
Death benefit payable to survivors of certain police officers or firefighters
238.407
Distribution of death benefit as rollover distribution
238.410
Board may contract for insurance for retirees
238.415
Payment toward cost of pre-Medicare insurance
238.420
Payment toward cost of Medicare supplemental insurance
238.425
Benefits payable to vested inactive member
238.430
Limitation on benefits payable to persons establishing membership on or after January 1, 1996
238.435
Provisions applicable to persons establishing membership on or after January 1, 1996
238.440
Optional purchase of benefit units by police and firefighters
238.442
Prior service credit
238.445
Benefits exempt from execution, bankruptcy and certain taxes
238.447
Execution or assignment of benefits to collect restitution or compensatory fine for felony
238.450
Computation of retirement allowance or benefit
238.455
Estimated benefit payments
238.458
Unclaimed benefits
238.460
Waiver of retirement allowance
238.462
Spousal consent required for certain optional forms of retirement allowance
238.465
Benefits payable to others under certain judgments
238.470
Interest on payments from fund
238.475
Effect of transfer of employee to another participating employer
238.480
Effect of change to calendar year on contributions and credit of members
238.485
Fund established
238.488
Payment of benefits
238.490
Administrative expenses
238.492
Rules for administration of fund
238.500
Definitions for ORS 238.500 to 238.585
238.505
Judges as PERS members
238.515
Contributions
238.525
Compulsory retirement age
238.535
Service retirement allowance
238.538
Health benefit plans for certain retired judge members
238.545
Withdrawal of member account
238.555
Disability retirement allowance
238.565
Judge’s beneficiaries
238.575
Cost-of-living adjustments
238.580
Application of PERS laws to judges
238.585
Use of creditable service by person who serves as both member and judge member
238.600
System established
238.601
Legislative findings and intent
238.605
Actuarial report on system
238.606
Independent review of actuarial report on system
238.607
Actuarial equivalency factor tables
238.608
Separate actuarial equivalency factor tables for certain police officers and firefighters
238.610
Administrative expenses of system
238.615
Revolving fund for payment of administrative expenses
238.618
Exclusion of employer or employee from system to maintain tax qualification
238.622
Report on changes to actuarial methods and assumptions
238.630
Board generally
238.635
Board consideration of system goals and objectives
238.640
Qualifications of board members
238.645
Director and staff
238.646
Authority of Director of Public Employees Retirement System to require fingerprints
238.650
Rules of board
238.655
Procedure for board hearings
238.657
Board counsel
238.660
Fund generally
238.661
Moneys in fund appropriated to board
238.665
Contributions and interest not included in board’s budget
238.670
Reserve accounts in fund
238.671
Proposal to legislative review agency for crediting of interest or income
238.672
Crediting of earnings to employer upon death or retirement of member
238.675
Transfer of unclaimed death benefit or account balance to other account or reserve
238.680
Integration of other retirement systems
238.685
Method of payment of unfunded obligation under integration contract
238.690
Integration of retirement plan of mass transit district
238.692
Definitions for ORS 238.692 to 238.698
238.694
Certain public bodies authorized to issue bonds to finance pension liabilities
238.695
Intergovernmental agreements for collective issuance, administration or payment of bonds
238.696
Debt service trust fund
238.697
Requirements for issuance of bonds
238.698
Funds diversion agreement
238.700
Enforcement of requirements of ORS chapters 238 and 238A
238.705
State departments to remit contributions and furnish reports
238.710
Mandamus against defaulting employer
238.715
Recovery of overpayments
238.720
Rollover contributions
238.730
Unfunded Actuarial Liability Resolution Program
238.750
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