ORS 238.232¹
Choice of amortization period for certain lump sum payments to side accounts

(1) If a participating public employer makes a lump sum payment from moneys not borrowed by the employer to an account established under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer) in an amount equal to or greater than $10 million, the Public Employees Retirement Board shall allow the participating public employer to choose an amortization period of six years, 10 years, 16 years or 20 years for the use of the lump sum payment to offset contributions to the system that the public employer would otherwise be required to make for the liabilities against which the lump sum payment is applied.

(2)(a) The board shall allow a participating public employer making a lump sum payment under this section to choose the year in which to begin to use the lump sum payment to offset contributions to the system that the public employer would otherwise be required to make for the liabilities against which the lump sum payment is applied. The board shall begin using the lump sum payment on July 1 of the year chosen under this subsection, with the beginning contribution offset rate based on the actuarial report under ORS 238.605 (Actuarial report on system) most recently published as of the date chosen by the public employer.

(b) Notwithstanding paragraph (a) of this subsection, the board may, after consultation with the participating public employer, begin using a lump sum payment to offset contributions in an earlier year than the year chosen by the public employer under this section to ensure that the period for using the lump sum payment, including earnings accrued, will end no later than 20 years after the date of the actuarial report under ORS 238.605 (Actuarial report on system) for the year the lump sum payment is made.

(c) A lump sum payment for which a participating public employer chooses when to begin to use the lump sum payment to offset contributions under this subsection is not a qualifying lump sum payment for purposes of section 2, chapter 105, Oregon Laws 2018.

(d) In lieu of the expenses authorized under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer) (3), the board may charge a participating public employer expenses for administration of an account as provided by this subsection in an amount established by the board by rule. [2018 c.105 §3b; 2019 c.355 §20]

Note: The amendments to 238.232 (Choice of amortization period for certain lump sum payments to side accounts) by section 21, chapter 355, Oregon Laws 2019, become operative January 1, 2024. See section 61, chapter 355, Oregon Laws 2019. The text that is operative on and after January 1, 2024, is set forth for the user’s convenience.

238.232 (Choice of amortization period for certain lump sum payments to side accounts). If a participating public employer makes a lump sum payment from moneys not borrowed by the employer to an account established under ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer) in an amount equal to or greater than $10 million, the Public Employees Retirement Board shall allow the participating public employer to choose an amortization period of six years, 10 years, 16 years or 20 years for the use of the lump sum payment to offset contributions to the system that the public employer would otherwise be required to make for the liabilities against which the lump sum payment is applied.

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