2017 ORS 238.362¹
Increased benefits payable in compensation for certain damages attributable to taxation of benefits

(1) Notwithstanding any other provision of sections 3 to 10, chapter 569, Oregon Laws 1995, the increased benefits payable under ORS 238.364 (Calculation of increased benefit payable under ORS 238.362) and 238.368 (Retirement allowance increases for members who retired before January 1, 1991) (2), including all increased benefits payable to judge members by reason of the application of ORS 238.364 (Calculation of increased benefit payable under ORS 238.362) and 238.368 (Retirement allowance increases for members who retired before January 1, 1991) (2) to judge members, and under section 10, chapter 569, Oregon Laws 1995:

(a) Shall not be paid in any tax year in which retirement benefits that are payable under the Public Employees Retirement System and that are attributable to service rendered by the member before September 29, 1991, are wholly exempt from Oregon personal income taxation under Oregon law.

(b) Shall be reduced proportionately for any tax year in which retirement benefits that are payable under the Public Employees Retirement System and that are attributable to service rendered by the member before September 29, 1991, are partially exempt from Oregon personal income taxation under Oregon law.

(2) An overpayment of benefits that results from the operation of subsection (1) of this section is not recoverable from the recipient of the benefits, but the Public Employees Retirement Board shall ensure that no additional overpayments are made.

(3) No member of the system or beneficiary of a member of the system shall acquire a right, contractual or otherwise, to the increased benefits provided by sections 3 to 10, chapter 569, Oregon Laws 1995.

(4)(a) Notwithstanding any other provision of law, a class action may not be commenced on or after July 14, 1995, based on a claim for damages arising out of the subjecting of benefits paid under this chapter to Oregon personal income taxation by act of the Legislative Assembly.

(b) Notwithstanding any other provision of law, any court in which there is pending on May 30, 1997, a class action that was commenced before July 14, 1995, based on a claim for damages arising out of the subjecting of benefits paid under this chapter to Oregon personal income taxation, may at any time after May 30, 1997, reopen that class action if by act of the Legislative Assembly there is a decrease in the benefit payable under ORS 238.364 (Calculation of increased benefit payable under ORS 238.362) or 238.368 (Retirement allowance increases for members who retired before January 1, 1991) (2), or in the benefits payable to judge members by reason of the application of ORS 238.364 (Calculation of increased benefit payable under ORS 238.362) or 238.368 (Retirement allowance increases for members who retired before January 1, 1991) (2) to judge members, or in the benefits payable to any member, judge member or beneficiary under section 10, chapter 569, Oregon Laws 1995, without an equivalent decrease in the personal income tax imposed under Oregon law on benefits paid under the system that are attributable to service rendered before September 29, 1991. Upon reopening the class action, the court may change the membership of the classes and may grant such further relief as may be warranted, including the entry of a judgment for damages or a judgment for supplemental relief under ORS 28.080 (Supplemental relief). [Formerly 238.375]

(formerly 238.375)

Notes of Decisions

Increase in state employee retire­ment benefits attributable to service before September 29, 1991, and linked to tax liability, was discriminatory tax rebate that re­quired rebate of taxes paid by federal retirees. Vogl v. Dept. of Revenue, 327 Or 193, 960 P2d 373 (1998)

Under this sec­tion, income tax offset is not term of Public Employees Retire­ment System contract and amend­ments that eliminated tax offset do not impair contract for purposes of rights under Article I, sec­tion 21, Oregon Constitu­tion. Moro v. State of Oregon, 357 Or 167, 351 P3d 1 (2015)

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.