ORS 238.200¹
Employee contributions generally

(1)(a) An active member of the Public Employees Retirement System shall contribute to the Public Employees Retirement Fund and there shall be withheld from salary of the member six percent of that salary as an employee contribution.

(b) Notwithstanding paragraph (a) of this subsection, an employee who is an active member of the system on August 21, 1981, shall contribute to the fund and there shall be withheld from salary of the member, as long as the employee continues to be an active member of the system, four percent of that salary if the salary for a month is less than $500, or five percent of that salary if the salary for a month is $500 or more and less than $1,000. Notwithstanding subsection (2) of this section, for the purpose of computing the percentage of salary to be withheld under this paragraph from a member who is an employee of a school district or a public university listed in ORS 352.002 (Public universities) whose salary is based on an annual agreement, the agreed annual salary of the member shall be divided into 12 equal installments, and each installment shall be considered as earned and paid in separate, consecutive months, commencing with the first month that payment is actually made under the terms of the salary agreement.

(2) The contributions of each member as provided in subsection (1) of this section shall be deducted by the employer from each payroll and transmitted by the employer to the Public Employees Retirement Board, which shall cause them to be credited to the member account of the member. Salary shall be considered earned in the month in which it is paid. The date inscribed on the paycheck or warrant shall be considered as the pay date, regardless of when the salary is actually delivered to the member.

(3) An active member who is concurrently employed by more than one participating public employer, and who is a member of or entitled to membership in the system, shall make contributions to the fund on the basis of salary paid by each employer.

(4) Notwithstanding subsections (1) to (3) of this section, a member of the system, or a participating employer acting on behalf of the member pursuant to ORS 238.205 (Payment of employee contribution by employer), is not permitted or required to make employee contributions to the fund for service performed on or after January 1, 2004. This subsection does not affect any contribution for the purpose of unit purchases under ORS 238.440 (Optional purchase of benefit units by police and firefighters) or amounts paid for acquisition of creditable service under ORS 238.105 (Restoration of credit forfeited by reason of termination of membership) to 238.175 (Retirement credit for periods of disability). [Formerly 237.071 (1) to (3); 2001 c.945 §43; 2003 c.67 §1; 2003 c.625 §9; 2013 c.768 §110]

Notes of Decisions

State offer to pick up fund contribu­tion is contractual offer accepted by employee at time of commencing employ­ment and may not be terminated or reduced at later time. Oregon State Police Officers’ Assn. v. State of Oregon, 323 Or 356, 918 P2d 765 (1996)

Amend­ments providing for benefits earned in future to be placed in account separate from member account containing existing employee contribu­tions and earnings did not violate Contract Clause of United States Constitu­tion. Robertson v. Kulongoski, 359 F. Supp. 2d 1094 (D. Or. 2004)

Termina­tion of employee ability to contribute to regular account did not violate Contract Clause of United States Constitu­tion. Robertson v. Kulongoski, 466 F3d 1114 (9th Cir. 2006)

Chapter 238

Law Review Cita­tions

96 OLR 249 (2017)

1 Legislative Counsel Committee, CHAPTER 238—Public Employees Retirement System, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors238.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 238, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano238.­html (2019) (last ac­cessed May 16, 2020).
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. Currency Information