ORS 238.364
Calculation of increased benefit payable under ORS 238.362


(1)

Intentionally left blank —Ed.

(a)

Upon retirement of an employee who is a member of the Public Employees Retirement System and computation of that member’s service retirement allowance under ORS 238.300 (Service retirement allowance), 238.305 (Optional service retirement allowance calculations) or 238.425 (Benefits payable to vested inactive member), or computation of any disability retirement allowance under ORS 238.320 (Disability retirement allowance), 238.325 (Optional disability retirement allowance calculations), 238.330 (Minimum disability retirement allowance), 238.345 (Optional service-connected disability retirement allowance for police officers and firefighters) or 238.425 (Benefits payable to vested inactive member), the Public Employees Retirement Board shall add to the amount of the allowance, including amounts attributable to prior service credit and the amount of any refund of accumulated employee contributions, the greater of the percentage increase calculated under ORS 238.366 (Retirement allowance increase based on years of service) or a percentage increase calculated under subsection (4) of this section. No benefit shall be paid to a member or beneficiary under ORS 238.366 (Retirement allowance increase based on years of service) if the benefit payable to the member or beneficiary under this section is larger than the benefit payable under ORS 238.366 (Retirement allowance increase based on years of service).

(b)

The percentage increase provided for in this section shall be adjusted by the board to reflect increases or decreases in a member’s retirement allowance that are attributable to the member’s participation in the Variable Annuity Account established by ORS 238.260 (Variable Annuity Account), that are attributable to a change in the member’s beneficiary or payment option under ORS 238.305 (Optional service retirement allowance calculations) or 238.325 (Optional disability retirement allowance calculations), or that are attributable to corrections to the member’s retirement allowance calculation.

(c)

The percentage increase provided for in this section shall be applied to any lump sum payment made to a member or a beneficiary of a member on or after January 1, 1991, that is attributable to a retroactive correction or adjustment of the amount payable to the member or beneficiary as a retirement allowance or that is attributable to a retroactive correction or adjustment to any other benefit that entitles a member or beneficiary to an increased benefit under this section. The percentage increase payable under this paragraph applies only to the principal amounts included in the lump sum payment as a retroactive correction or adjustment and does not apply to any interest on the retroactive correction or adjustment paid as part of the lump sum payment.

(2)

The amount of any death benefit under ORS 238.390 (Death benefit), 238.395 (Additional death benefit), 238.400 (Payment upon death of retired member who dies before making election of retirement benefits) or 238.405 (Death benefit payable to survivors of certain police officers or firefighters), including the amount of any monthly payments, shall be increased by the greater of the percentage provided for in ORS 238.366 (Retirement allowance increase based on years of service) or the percentage calculated under subsection (4) of this section.

(3)

Intentionally left blank —Ed.

(a)

A member of the system who elects to receive a lump sum in lieu of a retirement allowance or other benefit under ORS 238.315 (Lump sum payment in lieu of small allowance) shall receive an increase based on the greater of the percentage provided for in ORS 238.366 (Retirement allowance increase based on years of service) or the percentage calculated under subsection (4) of this section.

(b)

A member of the system who withdraws the amount credited to the member account, if any, of the member in the fund under the provisions of ORS 238.265 (Withdrawal of member account), or whose member account is returned to the employee after the membership of the employee is terminated under the provisions of ORS 238.095 (Termination of membership), shall receive an additional amount calculated by multiplying the amount of the member account of the member by the greater of the percentage provided for in ORS 238.366 (Retirement allowance increase based on years of service) or the percentage calculated under subsection (4) of this section. If a member thereafter elects to obtain restoration of creditable service by repaying the amount of the withdrawn member account pursuant to the provisions of ORS 238.105 (Restoration of credit forfeited by reason of termination of membership), the member must also repay all amounts paid under this section, together with interest from the date of withdrawal at the same rate as applied to the withdrawn member account under ORS 238.105 (Restoration of credit forfeited by reason of termination of membership). If a member repays only part of the withdrawn member account pursuant to the provisions of ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership), the member must repay that part of the amount paid under this section that is proportionate to the portion of the withdrawn member account that is repaid under ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership), together with interest from the date of withdrawal at the same rate as applied to the withdrawn member account under ORS 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership). All amounts paid to the member that are subsequently repaid under ORS 238.105 (Restoration of credit forfeited by reason of termination of membership) or 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) shall be deposited by the board to the employer reserve for pension accounts in the fund.

(4)

Intentionally left blank —Ed.

(a)

The Public Employees Retirement Board shall calculate a multiplier for the purposes of this section equal to the percentage produced by the following formula:
1
________
.91

(b)

Upon the retirement or death of a member of the system, the board shall determine the fraction of the member’s retirement allowance or death benefit, including any refund or lump sum payment, that is attributable to service rendered by the member before October 1, 1991. The board shall then calculate a percentage that is equal to that fraction multiplied by the multiplier determined by the board under paragraph (a) of this subsection. The percentage so calculated shall be used to determine the amount of the increase in benefits provided to a member, if any, under this section.

(5)

For the purpose of determining that portion of a retirement allowance or death benefit attributable to service rendered before October 1, 1991, the board shall divide the number of years of creditable service performed before October 1, 1991, by the total number of years of creditable service during which the pension income was earned. For the purposes of this subsection:

(a)

The number of years of creditable service does not include any period of employment for which a benefit is paid for prior service credit.

(b)

Except as provided in subsection (7) of this section, the number of years of creditable service includes all retirement credit of the member, and any retirement credit of a member that is attributable to periods of service, employment or other activity performed before October 1, 1991, shall be considered creditable service performed before October 1, 1991.

(6)

The increased benefits provided for in this section shall be funded by employer contributions.

(7)

The increased benefits provided by this section apply only to members who establish membership in the Public Employees Retirement System before July 14, 1995, and whose effective date of retirement or date of death is on or after January 1, 1991. The increased benefits provided by this section do not apply to any creditable service or prior service credit acquired by a member under the terms of a contract of integration entered into pursuant to ORS 238.035 (Membership of part but not all employees of a public employer), 238.680 (Integration of other retirement systems) or 238.690 (Integration of retirement plan of mass transit district) on or after October 1, 1991.

(8)

If a member is entitled to receive an increased benefit under the provisions of this section, and any portion of the member’s retirement allowance or other benefit payable under the system is payable to an alternate payee under the provisions of ORS 238.465 (Benefits payable to others under certain judgments), the increased benefits payable under this section shall be divided between the member and the alternate payee in proportion to the share of the total benefit received by each person. If an alternate payee elects to begin receiving benefits under ORS 238.465 (Benefits payable to others under certain judgments) (1) before the member’s effective date of retirement, the alternate payee may not begin receiving the increased benefit provided for in this section until benefits are first paid from the system on behalf of the member.

(9)

A person establishes membership in the system before July 14, 1995, for the purposes of subsection (7) of this section if:

(a)

The person is a member of the system, or a judge member of the system, on July 14, 1995;

(b)

The person was a member of the system before July 14, 1995, ceased to be a member of the system under the provisions of ORS 238.095 (Termination of membership), 238.265 (Withdrawal of member account) or 238.545 (Withdrawal of member account) before July 14, 1995, but restores part or all of the forfeited creditable service from before July 14, 1995, under the provisions of ORS 238.105 (Restoration of credit forfeited by reason of termination of membership) or 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership) after July 14, 1995; or

(c)

The person performed any period of service for a participating public employer before July 14, 1995, that is credited to the six-month period of employment required of an employee under ORS 238.015 (Membership generally) before an employee may become a member of the system. [Formerly 238.380]

Source: Section 238.364 — Calculation of increased benefit payable under ORS 238.362, https://www.­oregonlegislature.­gov/bills_laws/ors/ors238.­html.

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)

Where petitioner, former state employee, is eligible for additional PERS benefit under this section, PERS calculation of additional benefit requires multiplying eligible benefit by 9.89 percent to offset state income tax imposed on eligible benefit. Sundermier v. PERS, 269 Or App 586, 344 P3d 1142 (2015), Sup Ct review denied

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)

238.005
Definitions
238.008
Computation of salary
238.015
Membership generally
238.025
Effect of service interruptions on membership
238.035
Membership of part but not all employees of a public employer
238.045
Membership of certain circuit court judges
238.055
Membership of judges previously receiving retirement pay from Judges’ Retirement Fund
238.062
Membership of deputy district attorneys
238.068
Membership of legislators
238.072
Membership of certain legislative employees
238.074
Membership of community college employees
238.078
Reemployment of retired members
238.082
Limits on hours worked by retired members
238.088
Appointment or election of retired member to public office
238.092
Option of legislators to receive certain benefits
238.095
Termination of membership
238.105
Restoration of credit forfeited by reason of termination of membership
238.115
Alternate method of restoring credit forfeited by reason of termination of membership
238.125
Credit for probationary period of employment
238.135
Credit for probationary periods in seasonal positions
238.145
Credit for service as police officer or firefighter with nonparticipating employer
238.148
Credit for service as public safety officer in another state
238.156
Contributions, benefits and retirement credit for periods of service in uniformed services or Armed Forces
238.157
Alternative provision for retirement credit for periods of service in uniformed services
238.160
Retirement credit for service while on loan to federal government
238.162
Retirement credit for service as teacher in public schools of another state
238.165
Credit for certain periods of employment by Legislative Assembly
238.175
Retirement credit for periods of disability
238.200
Employee contributions generally
238.205
Payment of employee contribution by employer
238.210
Payment of certain circuit court judge employee contributions by employer
238.215
Contributions by certain higher education employees
238.220
Employee rollover contributions
238.222
Trustee-to-trustee transfers to fund restoration of forfeited service or purchase of retirement credit
238.225
Employer contributions
238.227
Pooling of employers for purpose of computing employer contributions
238.229
Effect of lump sum payment to side account on contributions of pooled employer
238.232
Choice of amortization period for certain lump sum payments to side accounts
238.235
Unfunded liability or surplus after employee transfer or employer merger, consolidation or split
238.250
Regular accounts
238.255
Credits to regular accounts when earnings less than assumed interest rate
238.260
Variable Annuity Account
238.265
Withdrawal of member account
238.270
Transfer of member account to other public employee retirement system
238.280
Eligibility for retirement
238.285
Verification of retirement data
238.300
Service retirement allowance
238.305
Optional service retirement allowance calculations
238.310
Minimum service retirement allowance
238.315
Lump sum payment in lieu of small allowance
238.320
Disability retirement allowance
238.325
Optional disability retirement allowance calculations
238.330
Minimum disability retirement allowance
238.335
Medical examination for disability retirement allowance
238.340
Return to work
238.345
Optional service-connected disability retirement allowance for police officers and firefighters
238.350
Use of unused leave to increase retirement allowance
238.355
Computation of unused sick leave for community college employees
238.360
Cost-of-living adjustments
238.361
Consumer price index for calculation of cost of living adjustments
238.362
Increased benefits payable in compensation for certain damages attributable to taxation of benefits
238.364
Calculation of increased benefit payable under ORS 238.362
238.366
Retirement allowance increase based on years of service
238.368
Retirement allowance increases for members who retired before January 1, 1991
238.372
Increased benefits not payable to nonresidents
238.374
Applicant’s statement
238.376
Nonresidency after benefits commenced
238.378
Information from Department of Revenue
238.382
Statements constitute declaration under penalty of perjury
238.384
Rules
238.390
Death benefit
238.395
Additional death benefit
238.400
Payment upon death of retired member who dies before making election of retirement benefits
238.405
Death benefit payable to survivors of certain police officers or firefighters
238.407
Distribution of death benefit as rollover distribution
238.410
Board may contract for insurance for retirees
238.415
Payment toward cost of pre-Medicare insurance
238.420
Payment toward cost of Medicare supplemental insurance
238.425
Benefits payable to vested inactive member
238.430
Limitation on benefits payable to persons establishing membership on or after January 1, 1996
238.435
Provisions applicable to persons establishing membership on or after January 1, 1996
238.440
Optional purchase of benefit units by police and firefighters
238.442
Prior service credit
238.445
Benefits exempt from execution, bankruptcy and certain taxes
238.447
Execution or assignment of benefits to collect restitution or compensatory fine for felony
238.450
Computation of retirement allowance or benefit
238.455
Estimated benefit payments
238.458
Unclaimed benefits
238.460
Waiver of retirement allowance
238.462
Spousal consent required for certain optional forms of retirement allowance
238.465
Benefits payable to others under certain judgments
238.470
Interest on payments from fund
238.475
Effect of transfer of employee to another participating employer
238.480
Effect of change to calendar year on contributions and credit of members
238.485
Fund established
238.488
Payment of benefits
238.490
Administrative expenses
238.492
Rules for administration of fund
238.500
Definitions for ORS 238.500 to 238.585
238.505
Judges as PERS members
238.515
Contributions
238.525
Compulsory retirement age
238.535
Service retirement allowance
238.538
Health benefit plans for certain retired judge members
238.545
Withdrawal of member account
238.555
Disability retirement allowance
238.565
Judge’s beneficiaries
238.575
Cost-of-living adjustments
238.580
Application of PERS laws to judges
238.585
Use of creditable service by person who serves as both member and judge member
238.600
System established
238.601
Legislative findings and intent
238.605
Actuarial report on system
238.606
Independent review of actuarial report on system
238.607
Actuarial equivalency factor tables
238.608
Separate actuarial equivalency factor tables for certain police officers and firefighters
238.610
Administrative expenses of system
238.615
Revolving fund for payment of administrative expenses
238.618
Exclusion of employer or employee from system to maintain tax qualification
238.622
Report on changes to actuarial methods and assumptions
238.630
Board generally
238.635
Board consideration of system goals and objectives
238.640
Qualifications of board members
238.645
Director and staff
238.646
Authority of Director of Public Employees Retirement System to require fingerprints
238.650
Rules of board
238.655
Procedure for board hearings
238.657
Board counsel
238.660
Fund generally
238.661
Moneys in fund appropriated to board
238.665
Contributions and interest not included in board’s budget
238.670
Reserve accounts in fund
238.671
Proposal to legislative review agency for crediting of interest or income
238.672
Crediting of earnings to employer upon death or retirement of member
238.675
Transfer of unclaimed death benefit or account balance to other account or reserve
238.680
Integration of other retirement systems
238.685
Method of payment of unfunded obligation under integration contract
238.690
Integration of retirement plan of mass transit district
238.692
Definitions for ORS 238.692 to 238.698
238.694
Certain public bodies authorized to issue bonds to finance pension liabilities
238.695
Intergovernmental agreements for collective issuance, administration or payment of bonds
238.696
Debt service trust fund
238.697
Requirements for issuance of bonds
238.698
Funds diversion agreement
238.700
Enforcement of requirements of ORS chapters 238 and 238A
238.705
State departments to remit contributions and furnish reports
238.710
Mandamus against defaulting employer
238.715
Recovery of overpayments
238.720
Rollover contributions
238.730
Unfunded Actuarial Liability Resolution Program
238.750
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