2017 ORS 238.205¹
Payment of employee contribution by employer

Notwithstanding any other provision of this chapter, and subject to the provisions of this section, a public employer participating in the system may agree, by a written employment policy or agreement in effect on or after July 1, 1979, to “pick-up,” assume or pay the full amount of employee contributions required or permitted by ORS 238.200 (Employee contributions generally) for all or less than all active members of the system employed by the employer to the extent employee contributions are required or permitted by ORS 238.200 (Employee contributions generally). If a public employer so agrees:

(1) The rate of contribution of each active member of the system employed by the employer who is covered by such policy or agreement shall uniformly be six percent of salary regardless of the amount of monthly salary.

(2) The full amount of required employee contributions assumed or paid by the employer on behalf of its employees shall be considered “salary,” as defined in ORS 238.005 (Definitions), only for the purpose of computing a member’s “final average salary,” as defined in ORS 238.005 (Definitions), and shall not constitute additional “salary” or “other advantages,” as defined in ORS 238.005 (Definitions), for any other purpose.

(3) The full amount of required employee contributions “picked-up” by the employer on behalf of its employees shall be considered “salary,” as defined in ORS 238.005 (Definitions), for the purpose of calculating the amount of the contribution, for the purpose of computing a member’s “final average salary,” as defined in ORS 238.005 (Definitions), and for all other purposes.

(4) The full amount of required employee contributions “picked-up,” assumed or paid by the employer on behalf of its employees shall be added to the member accounts of the members for their annuities and shall be considered employee contributions for all other purposes of this chapter.

(5) For the purposes of this section:

(a) Employee contributions are “picked-up” if the written employment policy or agreement described in subsection (1) of this section provides that employee compensation will be reduced to generate the funds needed to make the employee contributions; and

(b) Employee contributions are “assumed or paid” by an employer if the written employment policy or agreement described in subsection (1) of this section provides that additional amounts shall be paid by the employer for the purpose of making the employee contributions, and employee compensation will not be reduced for the purpose of generating the funds needed to make the employee contributions.

(6) A participating public employer must give written notice to the Public Employees Retirement Board at the time that a written employment policy or agreement described in subsection (1) of this section is adopted or changed. The notice must indicate whether the employer will “pick-up” or “assume or pay” the employee contributions as described in subsection (5) of this section. Any change in the manner in which employee contributions are to be paid applies only to employee contributions made on and after the date the notice is received by the board. [Formerly 237.075; 1997 c.175 §8; 2001 c.945 §44; 2003 c.67 §2]

(formerly 237.075)

Notes of Decisions

Six-year statute of limita­tions provided by ORS 12.080 (Action on certain contracts or liabilities) (1) applies to alleged viola­tions of contract between members of Public Employes’ Retire­ment System and state based on this sec­tion. Alderson v. State of Oregon, 105 Or App 574, 806 P2d 142 (1991)

Atty. Gen. Opinions

Limita­tions on contracts affecting pension contribu­tion, sick pay cash out and min­i­mum account earnings, (1994) Vol 47, p 176

1 Legislative Counsel Committee, CHAPTER 238—Public Employees Retirement System, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors238.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 238, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano238.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.