2007 ORS 238.115¹
Alternate method of restoring credit forfeited by reason of termination of membership

(1)(a) A member of the system who, after separation from all service entitling the employee to membership in the system and withdrawal of the amount credited to the member account of the member, reenters the service of an employer participating in the system and serves as an active member of the system for 10 years after that reentry, and who has not otherwise obtained restoration of creditable service forfeited by the withdrawal, shall obtain restoration of one full month of creditable service forfeited by the withdrawal for each three full months of service as an active member after that reentry if the member, within 90 days before the effective date of retirement of the member:

(A) Applies in writing to the board for restoration of creditable service; and

(B) Pays to the board in a lump sum for credit to the member account of the member the amount withdrawn and interest on the amount withdrawn compounded annually for each year or portion of a year after the date of the withdrawal and before the effective date of retirement of the member. The interest shall be computed at the annual rate of 7.5 percent.

(b) If a member who obtains restoration of creditable service as provided in this subsection does not obtain restoration of all creditable service forfeited by the withdrawal pursuant to service after reentry, the payment under paragraph (a) of this subsection shall be reduced proportionately to reflect the percentage of creditable service restored.

(c) A member who obtains restoration of creditable service as provided in this subsection is not entitled to elect to receive the service retirement benefit described in ORS 238.305 (Optional service retirement allowance calculations) (2) or (3).

(2) A member who forfeited creditable service rendered to a public employer before March 27, 1953, because under ORS 237.976 (Disposition of contributions made under abolished system) (2) the employee withdrew contributions of the employee to the Public Employees Retirement System established by chapter 401, Oregon Laws 1945, and who did not obtain restoration of creditable service so forfeited as provided in chapter 857, Oregon Laws 1977, shall, upon retirement, receive restoration of creditable service so forfeited, if the member, before the effective date of retirement of the member:

(a) Applies in writing to the board for the restoration of the creditable service; and

(b) Pays to the board in a lump sum for credit to the member account of the member an amount determined by the board to be equal to the full amount of contributions so withdrawn and the interest that would have accumulated to the regular account of the member had those contributions not been withdrawn.

(3)(a) A member of the Public Employees Retirement System who was a member of an association established pursuant to ORS chapter 239 (1997 Edition), but separated from all service entitling the employee to membership in the system of the association and withdrew the amount credited to the member account of the employee in the retirement fund of the association, and who, after that separation, entered the service of an employer in the field of education participating in the Public Employees Retirement System and served as an active member of that system for 10 years after that entry, and who has not otherwise obtained restoration of all creditable service forfeited by the withdrawal, shall obtain creditable service as a member of the Public Employees Retirement System equal to all creditable service forfeited by the withdrawal if the member within 90 days before the effective date of retirement of the member:

(A) Applies in writing to the Public Employees Retirement Board for that creditable service; and

(B) Pays to the board in a lump sum for credit to the member account of the member the amount withdrawn and interest on the amount withdrawn compounded annually for each year or portion of a year after the date of the withdrawal and before the effective date of retirement or effective date of application of the member. The interest shall be computed at the rate actually credited to regular accounts for that period.

(b) This subsection provides a method of obtaining creditable service for forfeited creditable service described in this subsection that is in lieu of any application of subsection (1) of this section for that purpose.

(4) Restoration of creditable service under this section does not affect any forfeiture of rights of a person by reason of:

(a) Withdrawal of an account established under ORS 238.440 (Optional purchase of benefit units by police and firefighters);

(b) Withdrawal from the pension program under ORS 238A.120 (Withdrawal from pension program by vested inactive member); or

(c) Withdrawal of individual accounts pursuant to ORS 238A.375 (Distribution of accounts to inactive member). [Formerly 237.108; 1999 c.130 §5; 2001 c.945 §§11,38; 2007 c.52 §5]

Note: Section 10, chapter 628, Oregon Laws 2007, provides:

Sec. 10. (1) A member of the system described in subsection (5) of this section who participates in the state deferred compensation plan under ORS 243.401 (Definitions for ORS 243.401 to 243.507) to 243.507 (Payment of deferred compensation to alternate payee under judgment or order) may give written notice to the Public Employees Retirement Board requesting that payment of all or part of the deferred amount be made to the board for the purpose of acquiring creditable service under ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) and 238.125 (Credit for probationary period of employment). Written notice under this section must be given no later than 60 days after the effective date of this 2007 Act [January 1, 2008]. Upon receiving the notice, the board shall immediately take any action necessary to effectuate the transfer of the requested amount. The board may not make the amount available to the member, and shall use the amount only for the purposes described in this section. The amount transferred under this section may not exceed the amount needed to:

(a) Make the lump sum payment described in ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1)(a)(B) that is required to restore forfeited creditable service for which the member is eligible at the time of the transfer; and

(b) Make the lump sum payment described in ORS 238.125 (Credit for probationary period of employment) necessary to acquire retirement credit under ORS 238.125 (Credit for probationary period of employment).

(2) Notwithstanding ORS 238.220 (Employee rollover contributions), moneys transferred under this section may be used to restore forfeited creditable service under ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1) in the manner provided by this section. Notwithstanding ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1)(a), the amount transferred under this section must be applied to the restoration of forfeited creditable service under ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1) immediately after the transfer is made.

(3) If a member does not obtain restoration of all forfeited creditable service by reason of the payment under subsection (2) of this section, the member may obtain restoration of any remaining forfeited creditable service by making the application required by ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1)(a)(A), and the lump sum payment required by ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1)(a)(B), within 90 days before the effective date of retirement of the member.

(4) Notwithstanding ORS 238.220 (Employee rollover contributions), moneys transferred under this section may be used to acquire retirement credit under ORS 238.125 (Credit for probationary period of employment) in the manner provided by this section. Notwithstanding ORS 238.125 (Credit for probationary period of employment), the amount transferred under this section must be applied to acquisition of retirement credit under ORS 238.125 (Credit for probationary period of employment) immediately after the transfer is made.

(5) A member may give written notice under subsection (1) of this section only if:

(a) The member is 60 years of age or older; and

(b) The member will have 35 years or more of creditable service after restoration of forfeited creditable service under ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) (1), and acquisition of retirement credit under ORS 238.125 (Credit for probationary period of employment), by reason of the transfer and application of amounts under this section. [2007 c.628 §10]

1 Legislative Counsel Committee, CHAPTER 238—Public Employees Retirement System, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­238.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.